DECEMBER 01, 2022 05:03 PM (EST)
AM Best Affirms Credit Ratings of Chubb Seguros Panama S.A.
|Ricardo Rodríguez Pérez|
+52 55 1102 2720, ext. 139
Associate Director, Analytics
+52 55 1102 2720, ext. 108
Manager, Public Relations
+1 908 439 2200, ext. 5159
+1 908 439 2200, ext. 5098
FOR IMMEDIATE RELEASE
MEXICO CITY - DECEMBER 01, 2022 05:03 PM (EST)
AM Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Rating of “aa+” (Superior) of Chubb Seguros Panama S.A. (Chubb Panama) (Panama City, Panama). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Chubb Panama’s strategic importance as a subsidiary of the Chubb U.S. Group of Insurance Companies (Chubb U.S Group), which on a consolidated basis has a balance sheet strength that AM Best assesses at the strongest level, as well as its very strong operating performance, favorable business profile and appropriate enterprise risk management (ERM). The ratings also reflect the company’s integration and support from its group, which provides synergies and operating efficiencies to the Panama subsidiary.
The stable outlooks reflect AM Best’s expectation that the Chubb U.S. Group will maintain the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), while continuing to demonstrate very strong operating results driven by the group’s consistently solid underwriting performance. The stable outlooks further reflect AM Best’s expectation that the ultimate parent, Chubb Limited, will continue to have a neutral impact on the ratings of the members of the group. Moreover, the company benefits from being integrated into the group, gaining operational leverage through the same systems, procedures and ERM practices. The group historically has demonstrated its support to Chubb Panama through capital injections to fund growth opportunities.
Chubb Panama initiated operations in 2008 as ACE Seguros S.A., and continued with that brand name until 2016 when its name was changed to Chubb Seguros Panama S.A. The company writes mainly non-life and reinsurance business, covering exposures throughout Panama and Central America. In 2021, property stood as the company’s main business line, generating 28.8% of its net written premium. Chubb Panama has shown disciplined underwriting and sound profitability, as reflected by a return-on-equity ratio of 5.0% and its contribution to expanding the company’s capital base at a 10.2% compound annual growth rate in 2021.
If there are positive rating actions on the main operating subsidiaries of Chubb U.S Group, the ratings of Chubb Panama likely would move in tandem, unless AM Best’s perception of the strategic importance of the company to the group changes. Likewise, if there are negative rating actions on the main operating subsidiaries of Chubb U.S Group, affected by a deterioration in the group’s risk-adjusted capitalization to a level that no longer supports the current ratings, sustained deterioration in underwriting or operating performance or a material weakening of Chubb Ltd.’s overall credit profile, Chubb Panama’s ratings would mirror those same actions.
The methodology used in determining these ratings is Best’s Credit Rating Methodology (Version Nov. 13, 2020), 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:
The following applied criteria supplemented the analysis of the ultimate rating unit:
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.
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.
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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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.