AM Best Affirms Credit Ratings of Chubb Limited and Its Subsidiaries

AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+” of the subsidiaries of Chubb Limited (Zurich, Switzerland) [NYSE: CB], which include the members of the Chubb US Group of Insurance Companies (Chubb US Group) and the members of Chubb Bermuda Insurance Ltd. (Chubb Bermuda) and Chubb Tempest Reinsurance Ltd. (Chubb Tempest Re) (both domiciled in 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 (Latham, NY) (together known as the Combined companies). AM Best also has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” of ACE Life Insurance Company (ACE Life) (Stamford, CT).

Lastly, AM Best has affirmed the Long-Term ICRs of “a+” and the Long-Term Issue Credit Ratings (Long-Term IR) of Chubb Limited (CB) and Chubb INA Holdings Inc. The outlook of these Credit Ratings (ratings) is stable. (Please see the link below for a detailed listing of the companies and ratings.)

The ratings of the Chubb US Group reflect its balance sheet strength, which AM Best categorizes as strongest, as well as its very strong operating performance, favorable business profile and appropriate enterprise risk management (ERM). The group’s risk-adjusted capitalization has consistently remained strongly supportive of the ratings, and it exceeds the threshold for the strongest categorization 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.

Chubb US Group’s very strong operating performance is reflected by return measures that have materially outperformed those of the commercial casualty composite over the past five years. The Chubb US group has generated positive underwriting income, operating income and net income every year for the last 10 years, despite the impact of unusually high catastrophe losses in certain years. The group’s underwriting results will be pressured in 2020, due to heightened catastrophe activity in the United States and the impact of COVID-19. The continued robust pricing environment in the majority of its commercial business lines globally should be supportive of a return to the group’s typically very strong underwriting performance in 2021, assuming a return to normalized catastrophe activity.