Moody's rates Chubb de Colombia A3, Ba1

Moody's Latin America said it assigned A3 global local-currency, Ba1 global foreign-currency and Aaa.co Colombia national scale insurance financial strength ratings to Chubb de Colombia Compania de Seguros, a subsidiary of the Chubb Corp.

The agency also assigned national scale ratings to the company's subsidiaries, including an Aaa.br rating to Chubb do Brasil Companhia de Seguros, an Aa1.mx rating to Chubb de Mexico Compania de Seguros and an Aaa.ar rating to Chubb Argentina de Seguros.

The agency said Chubb de Colombia's ratings reflect the company's sustained record of profitability, good product diversification, excellent capital position, strong balance sheet fundamentals, the financial flexibility it derives from its parent company affiliation and the explicit support it receives in the form of reinsurance protection from its affiliate Federal Insurance Co.

These positive factors are tempered somewhat by the company's relatively modest market presence in the concentrated Colombian insurance marketplace (with a gross written premium market share of about 2.7%), by asset-quality risk associated with its significant investments in Colombian bonds and bank deposits/CDs and by some underwriting risk concentrations, Moody's said.

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