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

MEXICO CITY–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of Chubb Seguros Panamá S.A. (Chubb Panamá) (Panama). The outlook of these Credit Ratings (ratings) remains positive.

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

The positive rating outlooks reflect Chubb Panamá´s sound underwriting practices, which support its consistent operating performance. The company´s balance sheet strength continues to be supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), its diversified business profile, a solid reinsurance program placed with Chubb Tempest Reinsurance Ltd., as well as the company’s affiliation to its ultimate parent, Chubb Limited, one of the world’s largest insurance groups. This affiliation provides Chubb Panamá with synergies and operating efficiencies. Offsetting these positive rating factors are Chubb Panamá’s modest, but growing market share within Panama’s insurance industry relative to the lines of business it writes, and the strong competitive environment in Panama’s insurance sector; however, the company partially mitigates this through a diversified business portfolio spread across other geographies.

Chubb Panamá 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 Panamá S.A. The company writes mainly non-life and reinsurance business, covering exposures throughout Latin America. In 2018, construction was the company’s top performing business line and currently represents 26% of gross written premiums. The company’s main distribution channels are positioned with brokers and cedent companies. Chubb Panamá has shown disciplined underwriting in a highly competitive market, consistently reporting overall premium sufficiency levels that compare positively with its competitors. In 2018, Chubb Panamá achieved a combined ratio of approximately 68%.

The Panama subsidiary’s strong underwriting results have sustained sound overall profitability, as reflected in a return on equity of 18.3%, and contributed to expanding the company’s capital base in 2018. Chubb Panamá’s risk-based capitalization remains fully supportive of its current ratings, as measured by BCAR. 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 Panamá through capital injections to fund growth opportunities.

Key factors that could lead to positive rating actions for Chubb Panamá include continued favorable trends in profitability and capital growth supported by good underwriting practices. Conversely, a sharp deterioration in operating performance or a significant weakening of its risk-adjusted capitalization could lead to negative rating actions. Additionally, if AM Best determines that Chubb Panamá ´s strategic importance has diminished, the ratings also could be downgraded.

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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Salvador Smith

Financial Analyst

+52 55 1102 2720, ext. 109

[email protected]

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Alfonso Novelo

Senior Director, Analytics

+52 55 1102 2720, ext. 107

[email protected]

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

[email protected]


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