AM Best Affirms Credit Ratings of Chubb Perú S.A. Compañía de Seguros y Reaseguros

AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of Chubb Perú S.A. Compañía de Seguros y Reaseguros (Chubb Perú) (Lima, Peru). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Chubb Perú’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The stable outlooks reflect AM Best’s expectation that the company can continue to adjust its product offerings in a profitable manner, supported by its parent company, Chubb Limited.

Chubb Perú initiated operations in 1998 as Altas Cumbres; in 2007, it was acquired by ACE Group and named ACE Seguros S.A., until 2016, when ACE Limited acquired The Chubb Corporation and re-branded the company.

Chubb Perú has a diversified book of business, distributed through a mix of traditional and massive channels, such as large regional retailers and banks. Currently, 57% of its net premium written is composed of property/casualty products, with accident and health making up 31% of the portfolio and life insurance the remaining 12%. As of September 2022, Chubb Perú is the 10th largest insurance operation in Peru, with a market share of 1.33%.

AM Best considers Chubb Perú’s balance sheet strength to be very strong, as the company has a defined risk appetite that limits exposures and protects its solid capital base through adequate investment, reinsurance and underwriting principles. Additionally, the company has a comprehensive reinsurance program with its affiliate, Chubb Tempest Reinsurance Ltd. In 2021, Chubb Perú’s risk-adjusted capitalization remained stable due to adjustments in its business offerings, which in tandem with no dividend payments continued to support the company’s capital position.

The company’s year-end 2021 results reflect an increase in claims due to its credit life business and an increase in the cost of the data processing service abroad, resulting in a 41.7% decrease in net income. Results through September 2022 remain positive, backed by alignments in strategy to limit exposure to complicated segments such as surety and credit life.

The company benefits from its integration into the Chubb group, gaining operational advantage through the same systems, procedures and ERM practices. The group has demonstrated its support to Chubb Perú by providing a comprehensive reinsurance program with its affiliate and actively overseeing this strategy.

Negative rating actions could occur if there is a sharp deterioration in operating performance or a significant weakening in its risk-adjusted capitalization. The ratings also could be downgraded if AM Best determines that Chubb Perú’s strategic importance to its group has diminished.

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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