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BEST'S CREDIT RATING ACTION

Best’s News & Research Service - November 16, 2021 12:09 PM (EST)

AM Best Assigns Issue Credit Rating to Chubb INA Holdings, Inc.’s Senior Unsecured Notes Offering

  • November 16, 2021 12:09 PM (EST)

Oldwick //BestWire// - AM Best has assigned a Long-Term Issue Credit Rating of “a+” (Excellent) to Chubb INA Holdings Inc.’s (Chubb) (Delaware) recently announced $1.6 billion senior unsecured notes offering in two tranches: $600 million, 2.85% 30-year senior unsecured notes, due 2051, and $1 billion, 3.05% 40-year senior unsecured notes, due 2061. The notes will be guaranteed by Chubb Limited [NYSE: CB]. The outlook assigned to the Credit Rating (rating) is stable.

Chubb announced a definitive agreement on Oct. 7, 2021, to acquire the Cigna Corporation’s (Cigna) life and non-life insurance companies that operate personal accident, supplemental health and life insurance business in seven Asia-Pacific markets for $5.75 billion dollars in cash. The operations to be acquired include Cigna’s accident & health and life businesses in Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia, along with its interest in a joint venture in Turkey. The transaction is expected to be completed in 2022 and is subject to required regulatory approvals and customary closing conditions.

Net proceeds from this offering will be used to fund a portion of the acquisition purchase price and related expenses; the remainder of the net proceeds from this offering is for general corporate purposes, which includes repayment of future maturities of outstanding indebtedness.

Immediately following the senior unsecured notes issuance, Chubb’s pro forma financial leverage and coverage measures will deteriorate slightly but remain well supportive of the assigned rating.

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 Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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.



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