AM Best


AM Best Affirms Credit Ratings of Chubb Limited and Its Subsidiaries


CONTACTS:

Gregory Dickerson
Senior Financial Analyst—P/C
+1 908 439 2200, ext. 5161
gregory.dickerson@ambest.com

Keith Behrmann
Senior Financial Analyst—L/H
+1 908 439 2200, ext. 5733
keith.behrmann@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - DECEMBER 11, 2019 12:51 PM (EST)
AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+” of the subsidiaries of Chubb Limited (Zurich, Switzerland) [NYSE: CB], which include the members of the Chubb US Group of Insurance Companies (Chubb US Group); the members of Chubb Bermuda Insurance Ltd. (Chubb Bermuda) and Chubb Tempest Reinsurance Ltd. (Chubb Tempest Re) (both domiciled in Bermuda).

In addition, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of “aa-” of Combined Insurance Company of America (headquartered in Chicago, IL) and Combined Life Insurance Company of New York (Latham, NY) (together known as the Combined companies). AM Best also has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” of ACE Life Insurance Company (ACE Life) (Stamford, CT).

Lastly, AM Best has affirmed the Long-Term ICRs of “a+” and the Long-Term Issue Credit Ratings (Long-Term IR) of Chubb Limited (CB) and Chubb INA Holdings Inc.

The outlook of these Credit Ratings (ratings) is stable. (Please see the link below for a detailed listing of the companies and ratings.)

AM Best also has withdrawn its ratings of Chubb Atlantic Indemnity Ltd. (Bermuda), due to the transfer of its loss reserve balances and unearned premium reserves to its affiliate, Chubb Bermuda.

The ratings of the Chubb US Group reflect its balance sheet strength, which AM Best categorizes as strongest, as well as its very strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

Historically, the group’s risk-adjusted capitalization has been strongly supportive of the ratings, and it exceeds the threshold for the strongest categorization by a wide margin, as measured by Best’s Capital Adequacy Ratio (BCAR). The group’s balance sheet strength also reflects a consistently prudent loss reserve position and the use of a comprehensive reinsurance program with high quality reinsurance partners, as well as the benefits from the additional financial flexibility available through CB, its ultimate parent. Chubb Group’s very strong operating performance is reflected by return measures that have materially outperformed those of the commercial property/casualty composite over the past five years. The group has generated positive underwriting income, operating income and net income every year for the last 10 years. Despite unusually high catastrophe losses in 2017 and 2018, the group generated strong underwriting profits in both periods. The group’s favorable business profile is supported by its position as the eighth-largest U.S. insurer, based on 2018 direct written premiums (DWP). As of 2018, the Chubb US Group is the second-largest U.S. commercial lines insurer with $16.9 billion of DWP, and the 16th-largest personal lines insurer with $3.7 billion of DWP.

The ratings of Chubb Tempest Re and its member reflect their balance sheet strength, which AM Best categorizes as strongest, as well as their very strong operating performance, favorable business profile and appropriate ERM.

The ratings of Chubb Bermuda and its member reflect their balance sheet strength, which AM Best categorizes as strongest, as well as their very strong operating performance, neutral business profile and appropriate ERM. The ratings also reflect the implicit support that they receives from CB, its ultimate parent.

The ratings of the Combined companies reflect their balance sheet strength, which AM Best categorizes as very strong, as well as their strong operating performance, neutral business profile and appropriate ERM. The ratings also reflect the companies’ strategic role in supporting the organization’s Global accident and health segment.

The ratings of ACE Life reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, very limited business profile and appropriate ERM. The ratings also reflect the continued financial support received from its parent.

Each of the groups discussed above also benefits from the financial flexibility provided by ultimate parent, CB, which maintains financial leverage that is in line with its current ratings, as well as additional liquidity sources given its access to capital markets and line of credit. AM Best expects that earnings and cash flows from CB’s operating subsidiaries will allow it to support risk-adjusted capitalization, should the need arise. At the same time, surplus growth at each group occasionally has been limited over the past five years by the payment of dividends. These dividends vary based on capital needs at the various subsidiaries.

A complete listing of Chubb Limited’s FSRs, Long-Term ICRs and Long- and Short-Term IRs also is available.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. 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 provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.


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