According to a RoyalGazette.com article, AM Best has also affirmed the long-term ICRs of “a+” (Excellent) and the long-term ICRs of Chubb Limited and Chubb INA Holdings Inc.
The outlook of these credit ratings is stable, according to the report.
The agency has attributed the stability of the Chubb’s subsidiaries to the financial flexibility provided by their parent company Chubb Limited. It expects the earnings and cash flows from Chubb Limited to support its operating subsidiaries’ risk-adjusted capitalisation should the need arise. Moreover, surplus growth of each subsidiary has been limited at times over the past five years due to payments of dividends.
AM Best also noted Chubb’s internal capital generation is expected to continue to exhibit a favorable trend as in the first three quarters of 2023 following the acquisition of Cigna’s Asia-Pacific life and A&H businesses in July 2022 considering recent market volatility and headwinds in key commercial and personal property/casualty segments.
The agency has attributed the ratings of Chubb Tempest Re and its members to their balance sheet strength, describing it as strongest, as well as in its strong operating performance, favorable business profile and appropriate enterprise risk management.
“Chubb Tempest Re principally provides property catastrophe reinsurance to commercial and personal property insurers,” said AM Best.
“Property catastrophe reinsurance is written on an occurrence or aggregate basis and protects a ceding company against an accumulation of losses covered by its issued insurance policies, arising from a common event or occurrence.
“In addition to its external client business, Chubb Tempest Re acts as the internal global reinsurance hub for Chubb’s global operations, providing it with capital and risk management efficiencies resulting from the group’s global spread of risk.”
The agency also stated: “The ratings of Chubb Bermuda and its members reflect their balance sheet strength, which AM Best assesses as strongest, as well as their very strong operating performance, neutral business profile and appropriate ERM.
“The ratings of Chubb Bermuda also reflect the implicit support received from Chubb Limited, the ultimate parent.
“Chubb Bermuda provides commercial insurance products on an excess basis including excess liability, directors and officers, professional liability, property and political risk, with the latter being written by Sovereign Risk Insurance Ltd, a wholly-owned managing agent.
“Chubb Bermuda focuses on Fortune 1000 companies and targets risks that are generally low in frequency and high in severity.”
Have thoughts about this story? Let us know in the comments below.
