S&P, A.M. Best Affirm Chubb’s Financial Strength Ratings; Outlook “Stable”
The financial strength ratings of Chubb’s core operating companies were affirmed last week by ratings agencies A.M. Best and Standard & Poor’s. On June 22, A.M. Best removed Chubb from under review with negative implications and affirmed the ‘A++’ financial strength rating with a stable outlook. Two days later, on June 24, S&P affirmed its ‘AA’ financial strength ratings on Chubb’s core operating companies and upgraded the outlook back to stable from negative. A year ago, the ACE-Chubb merger announcement had prompted rating agency assessments, which are customary and automatic for transactions of this size. At the time, A.M. Best had placed the company’s ratings under review and its current rating action follows its review of Chubb’s ongoing integration plans and financial position. Also due to the transaction, S&P had last year downgraded the outlook for Chubb’s financial strength rating to negative. In its recent announcement, S&P said the “stable outlook reflects our belief that Chubb is making strong progress integrating two complex entities and shifting its strategy to support a new risk profile.”
Financial strength ratings are important to customers and distribution partners because they assess an insurer’s ability to meet its financial obligations to policyholders to pay claims.