Chubb P/C Ratings Affirmed

The Chubb Corporation’s property/casualty subsidiaries’ financial strength ratings of “A++” have been affirmed by A.M. Best Co. Additionally, A.M. Best affirmed the “aa” senior debt ratings of The Chubb Corporation, Chubb Capital Corporation and Chubb Executive Risk Inc.; the “aa-” ratings of the capital securities of Executive Risk Capital Trust and the AMB-1+ rating on the commercial paper issued by Chubb Capital. The indicative ratings assigned to securities to be issued under the $1 billion shelf registration filed by The Chubb Corporation and Chubb Capital were also affirmed. The outlook for the ratings is stable.

Chubb’s superior operating performance, strong capitalization, conservative operating strategies, well-established franchise and sustainable competitive advantages within specialty insurance and upscale personal lines businesses influence the ratings. Moreover, they acknowledge Chubb’s generally favorable loss ratios, sophisticated loss control expertise, disciplined underwriting and adherence to sound operating fundamentals, which includes its commitment to adequate loss reserving and pricing practices.

Chubb maintains a stable balance sheet with modest financial leverage of 19 percent. The quality of capital is excellent based on reserve adequacy, consistency of earnings and superior liquidity, including substantial cash at the holding company. Chubb’s level of profitability provides fixed charge coverage that supports the ratings.

Partially offsetting these positive rating factors are the underwriting deterioration and greater volatility that have occurred within Chubb’s specialty insurance and personal lines operations over the past several years, particularly within segments of its executive protection, health care and homeowners’ operations.

Topics Property Casualty Chubb