A.M. Best Affirms Financial Strength and Debt Ratings of Chubb.OLDWICK, N.J. -- A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength rating of A++ (Superior) of the property/casualty subsidiaries of The Chubb Corporation (Chubb) (NYSE NYSE See: New York Stock Exchange :CB). Concurrently, A.M. Best has affirmed the existing senior debt ratings of "aa-" of Chubb and Chubb Executive Risk Inc., the "a+" of the capital securities of Executive Risk Capital Trust and the AMB-1+ on the commercial paper issued by Chubb Capital Corporation (all of Warren, NJ). Additionally, A.M. Best has affirmed the indicative ratings on securities, which are part of the shelf registration filed by Chubb. All ratings have a stable outlook. The financial strength rating of each of Chubb's member companies reflects their respective roles within the group and their contributions, which in collaboration, are viewed to be integral to Chubb's overall worldwide business strategy. The rating is reflective of the group's solid capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. , substantially improved operating performance in 2003 and 2004, and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. prospects for 2005. The rating also considers Chubb's well-recognized global franchise, strong market position and sustainable competitive advantages in its specialty insurance and upscale personal lines businesses. The rating also acknowledges the group's proven financial flexibility, disciplined capital management and prudent loss reserving and pricing practices. Partially offsetting these positive factors is Chubb's exposure to potential future professional liability claims, susceptibility susceptibility the state of being susceptible. Refers usually to infectious disease but may be to physical factors such as wetting or to psychological factors such as harassment. to catastrophes (including acts of terrorism), as well as the challenges associated with asbestos asbestos, mineral asbestos, common name for any of a variety of silicate minerals within the amphibole and serpentine groups that are fibrous in structure and more or less resistant to acid and fire. and environmental (A&E) liabilities. Chubb's earnings prospects, albeit strong, are also likely to be tempered by the continuing relatively low interest rate environment and the eminent softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. in the insurance market. In addition, Chubb as well as other insurers and brokers have received subpoenas and other information requests in recent months from attorneys general in several states and regulators relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc certain business practices. Chubb intends to cooperate fully with the ongoing investigations. On a consolidated basis, Chubb's financial leverage currently approximates 22%, which, while down from 25% at year-end 2003, is relatively high for its current debt ratings. Notwithstanding, capital raising in recent years has increased the group's liquidity--which along with improved earnings--has enhanced its coverage ratios. For a complete list of The Chubb Corporation's financial strength, issuer credit and debt ratings, please visit http://www.ambest.com/press/031701chubb.pdf. For Best's Debt Ratings, all other Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies, groups and industry composites, please visit http://www.ambest.com/pc. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com. |
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