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Best’s News & Research Service - November 10, 2023 12:00 PM (EST)

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

  • November 10, 2023 12:00 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+” (Excellent) of Chubb Perú S.A. Compañía de Seguros y Reaseguros (Chubb Peru) (Lima, Peru). The outlook of these Credit Ratings (ratings) is stable.

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

The stable outlooks reflect AM Best’s expectation that the company can continue to adjust its product offerings in a profitable manner, supported by its parent company, Chubb Limited.

Chubb Peru initiated operations in 1998 as Altas Cumbres; in 2007, it was acquired by ACE Group and named ACE Seguros S.A., until 2016, when ACE Limited acquired The Chubb Corporation and re-branded the company.

Chubb Peru has a diversified book of business, distributed through a mix of traditional and massive channels, such as large regional retailers and banks. As of December 2022, 71% of the company’s gross written premium was composed of property/casualty products, with accident and health comprising 22% of the portfolio and life insurance the remaining 7%. As of September 2023, Chubb Peru is the 11th largest insurance operation in Peru, with a market share of 1.36%.

AM Best considers Chubb Peru’s balance sheet strength to be 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 2022, Chubb Peru’s risk-adjusted capitalization remained stable due to adjustments in its business offerings, which, despite a dividend payment, continued to support the company’s capital position.

The company’s year-end 2022 results reflect a decrease in claims in contrast to 2021, maintaining expenses at levels similar to the previous year, resulting in a lower combined ratio and an almost 2.5x net income. Chubb Peru’s results through September 2023 remain positive, backed by alignments in strategy to limit exposure to complicated segments, such as surety and credit life.

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 Peru by providing a comprehensive reinsurance program with its affiliate and actively overseeing this strategy.

Positive rating actions could occur if the company maintains its good operating performance results in the medium term. Conversely, the ratings could be downgraded if AM Best determines that the strategic importance of Chubb Peru to its group has diminished.

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

Key insurance criteria reports utilized:

  • Evaluating Country Risk (May 4, 2023)

  • Understanding Global BCAR (July 6, 2023)

  • Catastrophe Analysis in A.M. Best Ratings (March 10, 2023)

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

  • Scoring and Assessing Innovation (Feb. 27, 2023)

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, relevant sources of information and the frequency for updating ratings, please refer to Guide to Best’s Credit Ratings.

  • Previous Rating Date: Nov. 18, 2022

  • Initial Rating Date: Nov. 9, 2018

  • Date Range of Financial Data Used: Dec. 31, 2017-July 31, 2023

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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.

If the ratings referred in this press release do not indicate a specific country suffix, it is understood that they are granted globally and not on a national scale.

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. AM Best keeps certain activities of its business units separate from each other to preserve the independence and objectivity of their respective activities. As a result, certain business units of AM Best may have information that is not available to other AM Best business units. AM Best has established policies and procedures to maintain the confidentiality of certain confidential (non-public) information received in connection with each analytical process. 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 use of Best’s Credit Ratings, Best’s Performance Assessments, 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.

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

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