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Best’s News & Research Service - December 13, 2018 04:07 PM (EST)

AM Best Affirms Credit Ratings of Chubb Limited and Its Subsidiaries

  • December 13, 2018 04:07 PM (EST)
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Oldwick //BestWire// - AM Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+” of the North American property/casualty subsidiaries of Chubb Limited (Zurich, Switzerland) [NYSE: CB], which include the members of the Chubb 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); and Chubb Atlantic Indemnity Ltd. (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.)

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, the group still generated a strong underwriting profit. The group’s favorable business profile is supported by its position as the seventh-largest U.S. insurer, based on 2017 direct written premiums. As of 2017, the Chubb US Group is the largest U.S. commercial lines insurer with $16.9 billion of direct written premiums, and the 15th-largest personal lines insurer with $3.6 billion of direct written premiums.

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 Chubb Atlantic Indemnity Ltd. reflect its balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, limited business profile and appropriate ERM. The company’s ratings also significantly benefit from the implicit support that it 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 A&H segment.

The ratings of ACE Life reflect the company’s balance sheet strength, which AM Best categorizes as strong, as well as its marginal operating performance, 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 rating agency and information provider with a unique focus on the insurance industry.



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