Chubb Peru receives updated ratings from AM Best

Chubb Peru receives updated ratings from AM Best | Insurance Business Canada

Reinsurance

Chubb Peru receives updated ratings from AM Best

The South American re/insurer is one of the largest in the country

Reinsurance

By
Kenneth Araullo

AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a+” (Excellent) for Chubb Perú S.A. Compañía de Seguros y Reaseguros (Chubb Peru), based in Lima, Peru. The outlook for these ratings remains stable.

These ratings reflect the assessment of Chubb Peru’s balance sheet strength, which AM Best rates as the strongest. The company also demonstrates adequate operating performance, a neutral business profile, and appropriate enterprise risk management (ERM).

The stable outlook indicates AM Best’s expectation that Chubb Peru will continue to adjust its product offerings profitably, supported by its parent company, Chubb Limited.

Chubb Peru began operations in 1998 under the name Altas Cumbres. It was acquired by ACE Group in 2007 and rebranded as ACE Seguros S.A. Following ACE Limited’s acquisition of The Chubb Corporation in 2016, the company adopted its current name.

AM Best noted that Chubb Peru has a diversified portfolio, with business distributed through a combination of traditional and large-scale channels, such as regional retailers and banks.

As of December 2023, 65% of the company’s gross written premium came from property and casualty products, while accident and health accounted for 28%, and life insurance made up the remaining 7%. As of July 2024, Chubb Peru ranks as the 12th largest insurance operation in the country.

AM Best recently revised Chubb Peru’s balance sheet strength rating from very strong to strongest. Chubb Peru has maintained a solid capital base through prudent investment, reinsurance, and underwriting practices. The company also benefits from a comprehensive reinsurance program provided by its affiliate, Chubb Tempest Reinsurance Ltd.

By the end of the second quarter of 2024, Chubb Peru had increased its total capital base to $42 million. The company’s capitalization has remained stable, supported by growth in retained earnings, despite dividend payments.

Chubb Peru’s 2023 year-end results showed a slight increase in claims compared to 2022. However, this was offset by lower operating expenses, leading to an improved combined ratio of 66.6% and a 25% increase in net income from the previous year.

The company continues to focus on generating value in its business portfolio and limiting exposure to more competitive market segments.

Chubb Peru benefits from its integration into the Chubb group, which provides operational advantages through shared systems, procedures, and ERM practices. The group has demonstrated its support by offering a comprehensive reinsurance program and actively overseeing the company’s strategy.

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