A.M. Best States Ratings of Chubb Group of Insurance Companies Unaffected.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 30, 2002 Today, A.M. Best Co. stated the financial strength rating of A++ (Superior) of the Chubb Group of Insurance Companies, (NYSE NYSE See: New York Stock Exchange : CB) (Warren, NJ), the "aa" senior debt ratings of The Chubb Corporation, Chubb Capital Corporation and Chubb Executive Risk Inc., the "aa-" ratings of the capital securities of Executive Risk Capital Trust and the AMB-1+ rating on the commercial paper issued by Chubb Capital are unaffected by the announcement that the group took a $625 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charge to increase reserves for 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. liabilities in the third quarter 2002. This increase in reserves is based on an independent actuarial analysis Actuarial Analysis The analysis of an investment's risk done by an actuary. Notes: A highly educated actuary will use statistics and historical data in an attempt to measure the risk of a particular investment. See also: Actuary, Life Insurance, Risk, Risk Averse of Chubb's ongoing asbestos exposures. The current ratings previously considered A.M. Best's estimate of the potential asbestos and environmental (A&E) reserve shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. in the evaluation of 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. , and the third quarter charge was within that estimate. Additionally, the strength of Chubb's earnings has enabled it to absorb this charge without depleting capital. A.M. Best views the recognition of such liabilities as positive in that it strengthens existing A&E reserves and Chubb's conservative balance sheet. For a complete list of financial strength and debt ratings of The Chubb Corporation, please visit http://www.ambest.com/press/Chubb3.pdf. 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 www.ambest.com. |
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