AM Best affirms ratings of Chubb subsidiaries

14-12-2018

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.

These include the members of the Chubb Group of Insurance Companies (Chubb US Group); the members of Chubb Bermuda Insurance (Chubb Bermuda) and Chubb Tempest Reinsurance (both domiciled in Bermuda); and Chubb Atlantic Indemnity (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. AM Best also has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” of ACE Life Insurance Company.

Lastly, AM Best has affirmed the Long-Term ICRs of “a+” and the Long-Term Issue Credit Ratings (Long-Term IR) of Chubb and Chubb INA Holdings.

The outlook of these Credit Ratings (ratings) is stable.

The ratings of the Chubb US Group reflect its balance sheet strength, which AM Best categorises as strongest, as well as its very strong operating performance, favourable business profile and appropriate enterprise risk management (ERM).

Historically, the group’s risk-adjusted capitalisation has been strongly supportive of the ratings, and it exceeds the threshold for the strongest categorisation 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 favourable business profile is supported by its position as the seventh-largest US insurer, based on 2017 direct written premiums. As of 2017, the Chubb US Group is the largest US 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.

According to AM Best the ratings of Chubb Tempest Re and its member reflect their balance sheet strength, which AM Best categorises as strongest, as well as their very strong operating performance, favourable business profile and appropriate ERM.

The ratings of Chubb Bermuda and its member reflect their balance sheet strength, which AM Best categorises 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 reflect its balance sheet strength, which AM Best categorises 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 categorises 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 organisation's Global A&H segment.

The ratings of ACE Life reflect the company’s balance sheet strength, which AM Best categorises 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.

AM Best, Chubb, ratings, affirmation

Bermuda Re