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Best’s News & Research Service - December 02, 2020 04:24 PM (EST)

AM Best Affirms Credit Ratings of Chubb Perú S.A. Compañía de Seguros y Reaseguros

  • December 02, 2020 04:24 PM (EST)
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Mexico City //BestWire// - AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of Chubb Perú S.A. Compañía de Seguros y Reaseguros (Chubb Perú) (Lima, Perú). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Chubb Perú’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

Chubb Perú initiated operations in 1998 as Altas Cumbres; in 2007, it was acquired by ACE Group and branded ACE Seguros S.A., until 2016, when its name was changed to Chubb Seguros Perú S.A. following the acquisition of the Chubb Corporation by ACE Limited.

Chubb Perú has a diversified book of business, distributed through a mix of traditional and massive channels, such as large regional retailers and banks. Currently, its business portfolio is composed of 59% property/casualty, 22% accident and health and 18% life. As of October 2020, Chubb Perú is the 10th largest insurance operation in Peru, with a market share of 1.6%.

AM Best considers Chubb Perú’s balance sheet strength as very strong, as the company has a defined risk appetite that limits exposures and protects its solid capital base through adequate investment, reinsurance and underwriting principles. Additionally, the company has a comprehensive reinsurance program with its affiliate, Chubb Tempest Reinsurance Ltd. In 2019, the company faced larger premium risk from its growth but continued to benefit from 2018’s reclassification of excess unearned premium reserve to accumulated results, which in tandem with no dividend payments continued to reinforce the company’s capital position.

The 2019 year-end results reflect the company’s pinpointed growth strategy that has allowed it to post a lower combined ratio (70.7%) in comparison with the previous year, on the back of diminishing acquisition costs from its life offerings. Results through September 2020 reflect the lower frequency in claims and lower acquisition costs related to less activity in massive channels as the pandemic has limited growth in this segment. The company has maintained good collecting and no major affectation related to COVID-19 pandemic.

The company benefits from its integration into the Chubb group, gaining operational advantage through the same systems, procedures and ERM practices. The group has demonstrated its support to Chubb Perú by providing a comprehensive reinsurance program with its affiliate and actively overlooking its strategy.

Positive rating actions are not expected; however, AM Best’s view on the company’s operating performance could improve in the medium term if underwriting results result in a positive trend in operating performance while its capital base grows. Negative rating actions could occur if there is a sharp deterioration in operating performance or a significant weakening of its risk-adjusted capitalization. The ratings could be downgraded if AM Best determines that Chubb Peru’s strategic importance to its group has diminished.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of AM Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:


  • Evaluating Country Risk (Version Oct. 13, 2017)

  • Understanding Universal BCAR (Version June 11, 2020)

  • Catastrophe Analysis in A.M. Best Ratings (Version Oct. 13, 2017)

  • Available Capital & Holding Company Analysis (Version Oct. 13, 2017)

  • Scoring and Assessing Innovation (Version March 05, 2020)

View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Guide to Best’s Credit Ratings.


  • Previous Rating Date: Dec. 11, 2019.

  • Date Range of Financial Data Used: Dec. 31, 2014-Oct. 31, 2020.

This press release relates to rating(s) that have been published on AM Best’s website. For additional rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page.

AM Best does not validate or certify the information provided by the client in order to issue a credit rating.

While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. AM Best does not audit the company’s financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, AM Best cannot attest as to the accuracy of the information provided.

AM Best’s credit ratings are independent and objective opinions, not statements of fact. AM Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. AM Best’s credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.

AM Best receives compensation for interactive rating services provided to organizations that it rates. AM Best may also receive compensation from rated entities for non-rating related services or products offered by AM Best. AM Best does not offer consulting or advisory services. For more information regarding AM Best’s rating process, including handling of confidential (non-public) information, independence, and avoidance of conflicts of interest, please read the AM Best Code of Conduct. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.



Peru Financial Strength Latin America Press Release A.M. Best Rating Services, Inc. Insurance Issuer Credit Rating Best's Credit Rating Action Rating Event


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