AM
Best Affirms Credit Ratings of Chubb Seguros Panama S.A.
The ratings reflect
Chubb Panama’s strategic importance as a subsidiary of Chubb Limited, 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).
Source: Business Wire
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
rating affirmations reflect Chubb Panama’s integration and support from Chubb
Limited, one of the world’s largest insurance groups, which provides synergies
and operating efficiencies to the Panama subsidiary.
The
stable outlooks reflect AM Best’s expectation that Chubb Limited will maintain
its strongest balance sheet strength assessment, supported by risk-adjusted
capitalization at the strongest level, 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
ratings reflect Chubb Panama’s sound underwriting practices, which support its
consistent operating performance, diversified business portfolio and solid
reinsurance program, with Chubb Tempest Reinsurance Ltd. This affiliation
provides Chubb Panama with synergies and operating efficiencies. Offsetting
these positive rating factors are Chubb Panama’s modest, but growing market
share within Panama’s insurance industry relative to the lines of business it
underwrites, and the strong competitive environment in Panama’s insurance
sector. However, the company partially mitigates this competitive aspect through
its diversified business portfolio that is spread across other markets in
Central America.
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. Chubb Panama underwrites mainly non-life and reinsurance businesses that
covers exposures throughout Panama and Central America. In 2023, property stood
as the company’s main business line, generating 32% of its gross written
premium. Chubb Panama’s main distribution channels are positioned with brokers
and cedent companies.
Chubb
Panama has shown disciplined underwriting in a highly competitive market,
consistently reporting overall premium sufficiency levels that compare
positively with its competitors. In 2023, Chubb Panama achieved a combined
ratio of 73%, down from 81% in 2022, benefiting from a lower loss ratio.