Good news for AIG structured settlement annuitants.
Fitch Ratings has upgraded the Insurer Financial Strength (IFS) ratings of American
International Group, Inc.'s domestic life insurance subsidiaries known as SunAmerica Financial Group to 'A' from 'A-'. The Outlook for all ratings is Stable.
Fitch states "The rating action of April 25, 2011 follows a review of SunAmerica Financial Group's recent financial results. The upgrade reflects the company's improved financial profile as evidenced by higher operating earnings, reduced investment losses, lower surrender experience, and higher capital adequacy metrics. Overall, this operation has stabilized from the significant adverse effects of the financial crisis and AIG's unique place in it." Highly significant! "The IFS rating is a stand-alone rating and does not reflect any uplift for U.S. Treasury ownership". (emphasis added)
Members of AIG's Sun America Financial Group include the following current structured settlement annuity issuers: American General Life Insurance Company and United States Life Insurance Company In The City of New York; as well as former structured annuity issuers: Variable Annuity Life Insurance Company and Western National Life Insurance Company. AGC Life Insurance Company, an upstream holding company to American General Life which guarantees the performance of the qualified assigmnment company that purchases American General Life annuities as an IRC 130(d) "qualified funding asset" was also upgraded/
Other AIG-related ratings such, as Chartis Insurance, were not affected by this action.
Perhaps the predatory "vultures" from Woodbridge Investments, LLC, who issued a press release soliciting AIG annuitants on September 18, 2008, can sleep a little easier tonight knowing that their "hoard" is deemed safer.
Read the full Fitch press release on the AIG upgrade Download FitchRatingUpgrade20110425