AM Best has affirmed AIG’s long-term issuer credit rating of bbb, and its outlook is assessed as stable.

The US insurance giant’s consolidated risk-adjusted capitalisation remains at the strongest level and is supported by “favourable” liquidity and financial flexibility.

“Despite significant return of capital initiatives under prior management, which is anticipated to be reduced… AIG maintains ample holding company cash and investments to provide additional liquidity and flexibility for the group,” the ratings agency says.

AM Best has also affirmed AIG subsidiaries’ financial strength rating at A and long-term issuer credit rating at a.