S&P revises AIG view to negative

S&P said it revised the outlook on American International Group, Inc. (AIG) to negative from stable.

At the same time, the agency affirmed the A+ insurer financial strength rating and BBB+ long- and short-term counterparty credit ratings on AIG and the A+ rating on AIG's core subsidiaries.

"The outlook revision reflects AIG's protracted period of delivering P&C Commercial Insurance underwriting initiatives, which we believe may be a predictor of its executional effectiveness on a prospective basis," S&P credit analyst Tracy Dolin said in a news release.

While AIG's operating performance has continued to benefit from diversification, the agency said it questions management's ability to effectively execute its plan to achieve adjusted accident year loss ratio performance of 62% for its troubled Commercial Insurance segment by year-end 2017, raised from its original 60% target, given high its modest track record to date.

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