AM Best Affirms Credit Ratings of Chubb Seguros Panama S.A.

AM Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Rating of “aa+” (Superior) of Chubb Seguros Panama S.A. (Chubb Panama) (Panama City, Panama). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Chubb Panama’s strategic importance as a subsidiary of the Chubb U.S. Group of Insurance Companies (Chubb U.S. Group), which on a consolidated basis has a balance sheet strength that AM Best assesses at the strongest level, as well as its very strong operating performance, favorable business profile and appropriate enterprise risk management (ERM). The ratings also reflect the company’s integration and support from its group, which provides synergies and operating efficiencies to the Panama subsidiary.

The stable outlooks reflect AM Best’s expectation that the Chubb U.S. Group will maintain the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), while continuing to demonstrate very strong operating results driven by the group's consistently solid underwriting performance. The stable outlooks further reflect AM Best’s expectation that the ultimate parent, Chubb Limited, will continue to have a neutral impact on the ratings of the members of the group. Moreover, the company benefits from being integrated into the group, gaining operational leverage through the same systems, procedures and ERM practices. The group historically has demonstrated its support to Chubb Panama through capital injections to fund growth opportunities.

Chubb Panama initiated operations in 2008 as ACE Seguros S.A., and continued with that brand name until 2016 when its name was changed to Chubb Seguros Panama S.A. The company writes mainly non-life and reinsurance business, covering exposures throughout Panama and Central America. In 2021, property stood as the company’s main business line, generating 28.8% of its net written premium. Chubb Panama has shown disciplined underwriting and sound profitability, as reflected by a return-on-equity ratio of 5.0% and its contribution to expanding the company’s capital base at a 10.2% compound annual growth rate in 2021.

If there are positive rating actions on the main operating subsidiaries of Chubb U.S. Group, the ratings of Chubb Panama likely would move in tandem, unless AM Best’s perception of the strategic importance of the company to the group changes. Likewise, if there are negative rating actions on the main operating subsidiaries of Chubb U.S. Group, affected by a deterioration in the group's risk-adjusted capitalization to a level that no longer supports the current ratings, sustained deterioration in underwriting or operating performance or a material weakening of Chubb Ltd.’s overall credit profile, Chubb Panama’s ratings would mirror those same actions.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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