A.M. Best has affirmed the ratings of property and casualty
The Chubb Corporation
). As a part of its rating action, the agency reiterated the
"A++"insurer financial strength (IFS) ratings and "aa+" issuer
credit ratings (ICR) of the subsidiaries.
Concurrently, A.M. Best reiterated the ICR of "aa-", all
long-term debt and indicative ratings and the AMB-1+ on the
commercial paper of Chubb Corp.
All the rating carry a stable outlook, which indicates no
expected near term changes affecting the company's business.
However, the commercial papers do not carry any rating
A.M. Best 's recent rating action comes on the back of Chubb's
consistent operating profitability, maintenance of superior
risk-adjusted capital, a strong brand name, disciplined
underwriting practices, low debt level and a niche presence in
specialty and personal lines business segment.
A.M. Best notes that despite incurring recent catastrophe
loss, Chubb reported operating profitability, which reflects its
well cushioned business. Led by profitable operations, the
company also churns out strong operating cash flows.
Nevertheless, headwinds from competitive insurance markets and
a threat of catastrophe losses persist. Exposure to catastrophe
losses has always induced volatility to the company's earnings. A
significant portion of the company's business lies in catastrophe
prone areas. Cat losses had adversely affected the company's
combined ratio thus impacting the company's profitability.
As a remedial measure to protect itself from cat loss
incidence the company actively uses catastrophe reinsurance
The rating agency is also concerned with adverse reserve
development in the company's asbestos and environmental
liabilities lines. Nevertheless overall the company has been
reporting favorable reserve releases.
A.M. Best also avowed the FSR of A++ and ICR of "aa+" of Chubb
Atlantic Indemnity Ltd. (Chubb Atlantic) (Pembroke, Bermuda). The
rating action for the company's unit came on the back of solid
risk-adjusted capitalization and the direct and indirect capital
support provided by the parent company.
Chubb currently retains a Zacks Rank # 2 (Buy)
The Travelers Companies Inc.
W.R. Berkley Corp.
) also carry an investment grade rating from A.M. Best.
ASSURANT INC (AIZ): Free Stock Analysis
CHUBB CORP (CB): Free Stock Analysis Report
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BERKLEY (WR) CP (WRB): Free Stock Analysis
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