AM Best has affirmed the financial strength rating of A++ (Superior) and the long-term issuer credit ratings of “aa+” (Superior) of the subsidiaries of Zurich-based Chubb Ltd, including Bermudian-domiciled Chubb Bermuda Insurance Ltd and Chubb Tempest Reinsurance Ltd and their members.

The agency said it has also affirmed the long-term ICRs of “a+” (Excellent) and the long-term ICRs of Chubb Limited and Chubb INA Holdings Inc.

The outlook of these credit ratings is stable.

AM Best said each of Chubb’s component groups benefit from the financial flexibility provided by Chubb Limited, the publicly traded ultimate parent, which maintains financial leverage that is in line with its current ratings, as well as additional liquidity sources given its access to capital markets and lines of credit.

The agency expects that earnings and cash flows from Chubb Limited’s operating subsidiaries will continue to allow it to support risk-adjusted capitalisation should the need arise.

At the same time, surplus growth at each group has been limited at times over the past five years due to payments of dividends.

AM Best expects that following capital deployed in connection with the July 2022 acquisition of Cigna’s Asia-Pacific life and A&H businesses and taking into consideration recent market volatility and stiffer headwinds in several key commercial and personal property/casualty segments, Chubb’s prospective internal capital generation will continue a favourable trend evident through the first three quarters of 2023.

The agency said the ratings of Chubb Tempest Re and its member reflect their balance sheet strength, which AM Best assesses as strongest, as well as its very strong operating performance, favourable business profile and appropriate enterprise risk management.

AM Best said: “Chubb Tempest Re principally provides property catastrophe reinsurance to commercial and personal property insurers.

“Property catastrophe reinsurance is written on an occurrence or aggregate basis and protects a ceding company against an accumulation of losses covered by its issued insurance policies, arising from a common event or occurrence.

“In addition to its external client business, Chubb Tempest Re acts as the internal global reinsurance hub for Chubb’s global operations, providing it with capital and risk management efficiencies resulting from the group’s global spread of risk.”

The agency added: “The ratings of Chubb Bermuda and its member reflect their balance sheet strength, which AM Best assesses as strongest, as well as their very strong operating performance, neutral business profile and appropriate ERM.

“The ratings of Chubb Bermuda also reflect the implicit support received from Chubb Limited, the ultimate parent.

“Chubb Bermuda provides commercial insurance products on an excess basis including excess liability, directors and officers, professional liability, property and political risk, with the latter being written by Sovereign Risk Insurance Ltd, a wholly-owned managing agent.

“Chubb Bermuda focuses on Fortune 1000 companies and targets risks that are generally low in frequency and high in severity.”