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FOR IMMEDIATE RELEASE
MEXICO CITY - MARCH 04, 2025 10:37 AM (EST)
AM Best has assigned a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of “aa-” (Superior) to Chubb Seguros de Vida Chile S.A. (Chubb Vida Chile) (Chile). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Chubb Vida Chile’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The ratings also reflect Chubb Vida Chile’s affiliation with its parent company, Chubb Limited [NYSE: CB], in terms of capital support, reinsurance protection and ERM framework.
Chubb Vida Chile is the Chilean life and accident & health subsidiary of the Chubb group, and started operations in 2005. Chubb Vida Chile’s sister company, Chubb Seguros Chile S.A., focuses on property/casualty business. Chubb Vida Chile’s business portfolio is well-diversified but principally composed of credit life business. The company’s business operations have grown in terms of premium volume, business lines and market share after its acquisition of Banchile Seguros de Vida S.A. (Banchile Vida) in 2021.
Chubb Vida Chile’s balance sheet strength is at the strongest level, given its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), a capital base that is supported by positive net income, a conservative investment strategy and a highly rated reinsurance panel.
The company’s operating performance is assessed at the adequate level. Chubb Vida Chile has achieved profitable operating results through positive technical metrics, which are characterized by low claims and improving operational expenses, and further strengthened by consistent investment income. The company’s business volume was positively impacted due to a strategic alliance with Banco de Chile for its products distribution and the acquisition of Banchile Vida’s business portfolio.
Chubb Vida Chile’s ERM is appropriate given its adherence to the framework of the Chubb group, by sharing policies and procedures, as well as risk appetites and tolerances. An affiliate, Chubb Tempest Reinsurance Ltd., provides reinsurance support to the company.
The stable outlooks reflect AM Best's expectation that the company’s risk-adjusted capitalization will remain at the strongest level, supported by positive operating performance results, through prudent underwriting and investment income.
Negative rating actions could take place if AM Best determines that the strategic importance of Chubb Vida Chile to its group has diminished or if the company's balance sheet strength deteriorates due to either significant losses or excessive dividend payments that erode the capital base, to a point no longer supportive of the current rating. Conversely, positive rating actions could occur if the company's profit generation, supported by positive technical results, show a consistent upward trend that compares favorably to the strong assessment.
The methodology used in determining these ratings is Best’s Credit Rating Methodology (Version Aug. 29, 2024), 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:
· Available Capital and Insurance Holding Company Analysis (Version Aug. 15, 2024)
· Scoring and Assessing Innovation (Version Feb. 20, 2025)
· Understanding Global BCAR (Version Aug. 1, 2024)
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: Not rated.
· Initial Rating Date: Not rated.
· Date Range of Financial Data Used: December 31, 2018-September 30, 2024
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