A.M.Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to "a+"from "a" and affirmed the Financial Strength Rating (FSR) of A(Excellent) of Chubb SegurosPanama S.A. (Chubb Panama) (Panama). The outlook of these CreditRatings (ratings) remains stable.
Theupgrade of the Long-Term ICR reflects Chubb Panama's continued strongrisk-adjusted capitalization, its diversified business profile, a solidreinsurance program placed with Chubb Tempest Reinsurance Ltd. and the company'saffiliation to its ultimate parent, Chubb Limited, one of the world's biggestinsurance groups. This affiliation provides Chubb Panama synergies andoperating efficiencies. Offsetting these positive factors are Chubb Panama'smodest, but growing market share within Panama's insurance industry relative tothe lines it writes, and the strong competitive environment in Panama'sinsurance sector; however, the company partially mitigates this through adiversified business portfolio spread across other geographies.
ChubbPanama initiated operations in 2008 as ACE Seguros S.A., and continued withthat brand name until 2016 when its name was changed to Chubb Seguros PanamaS.A.The company writes mainly non-life and reinsurance business coveringexposures throughout Latin America. In 2016, miscellaneous insurance was thecompany's top performing business line and currently represents 21% of grosswritten premiums. The company's main distribution channels are positioned withbrokers. Chubb Panama has shown disciplined underwriting in a highlycompetitive market, consistently reporting overall premium sufficiency levelsthat compare positively with its competitors. In 2016, under soft marketconditions that stalled growth and non-recurring events such as new officeexpenses, Chubb Panama´s underwriting profile achieved a combined ratio ofapproximately 60%.