A.M. Best Revises Outlooks to Positive for Chubb Seguros Panamá S.A.

August 23, 2018

MEXICO CITY--(BUSINESS WIRE)--Aug 23, 2018--A.M. Best has revised the outlooks to positive from stable and 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) (Panamá).

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 revised outlooks to positive reflect Chubb Panamá´s sound underwriting practices, which supports 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) and 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, and its diversified business profile. The affiliation provides Chubb Panamá synergies and operating efficiencies. Offsetting these positive rating factors are Chubb Panamá’s modest, but growing market share within Panamá’s insurance industry relative to the lines of business it writes, and the strong competitive environment in Panamá’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 2017, fire insurance was the company’s top performing business line and currently represents 36% of gross written premiums. The company’s main distribution channels are positioned with brokers. Chubb Panamá has shown disciplined underwriting in a highly competitive market, consistently reporting overall premium sufficiency levels that compare positively with its competitors. In 2017, Chubb Panamá achieved a combined ratio of approximately 56%.

Chubb Panamá’s risk-based capitalization remains fully supportive of its current ratings, as measured by BCAR. The Panamá subsidiary is mainly susceptible to underwriting risk given growth in premiums; however, the company’s strong underwriting results maintain sound overall profitability metrics, reflected in a return on equity of 27.8% in 2017. 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 A.M. Best determines that Chubb Panamá ´s strategic importance to its group diminishes, the ratings also could be downgraded.

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view .

For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Salvador Smith, +52 55 1102 2720, ext. 108

Financial Analyst



Alfonso Novelo, +52 55 1102 2720, ext. 107

Senior Director, Analytics



Christopher Sharkey, +1 908 439 2200, ext. 5159

Manager, Public Relations



Jim Peavy, +1 908 439 2200, ext. 5644

Director, Public Relations





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PUB: 08/23/2018 03:46 PM/DISC: 08/23/2018 03:46 PM


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