AM Best Affirms Credit Ratings of Chubb Limited and Its Subsidiaries
The ratings of the Chubb Group reflect Chubb’s balance sheet strength, which AM Best assesses as strongest, as well as its very strong operating performance, favorable business profile and appropriate enterprise risk management (ERM). Chubb’s very strong operating performance is anchored in the group’s consistently highly profitable underwriting performance – as reflected in a combined ratio in the mid-to-high 80 percent range that notably outperforms industry averages for highly rated insurers – as well as consistently solid investment returns on a high-quality investment portfolio. Chubb’s business profile is notable for its product and geographic breadth and depth, as Chubb operates in more than 50 countries and jurisdictions worldwide. Through ACE American Insurance Company and its pooled and/or substantially reinsured
AM Best notes that Chubb’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), has consistently stood at the strongest level, benefiting from a very high-quality investment portfolio and excellent historical reserve adequacy position, a solid reinsurance program, and a high quality of capital, in part reflecting relatively modest reliance on debt in the group’s capital structure. Tempering capital strength is a somewhat elevated financial leverage relative to tangible capital, and a share repurchase program that has constrained capital growth in recent years.
The ratings of the Combined companies reflect their balance sheet strength, which AM Best assesses as 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 accident & health segment.
The ratings of ACE Life reflect its balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, very limited business profile and appropriate ERM. The ratings also reflect the continued financial support received from its parent.
The ratings of Chubb Life NZ reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. The ratings also factor in rating enhancement from the company’s parent and support from Chubb Limited.
A complete listing of Chubb Limited’s FSRs, Long-Term ICRs and Long-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 Guide to Best's Credit Ratings. 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.
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Alan Murray
Director
+1 908 882 2195
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Christopher Sharkey
Associate Director, Public Relations
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Michael Lagomarsino, CFA, FRM
Senior Director
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Al Slavin
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Source: AM Best