S&P revises Chubb to stable, ups ACE INA

S&P said it affirmed its A long-term counterparty credit rating on Chubb Ltd. and its AA financial strength ratings on Chubb's operating subsidiaries.

The outlook was revised to stable from negative.

The agency also upgraded ACE INA Insurance Co. to AA from AA-. The outlook is stable.

In addition, S&P affirmed its AA financial strength rating on Federal Insurance Co. Taiwan, revised the outlook to stable from negative and withdrew the rating because the company was shut down and fully liquidated into Federal Insurance Co. in 2015.

It also affirmed the AA financial strength rating on Federal Insurance Co. Japan and maintained the negative outlook.

"The stable outlook reflects our belief that Chubb is making strong progress integrating two complex entities and shifting its strategy to support a new risk profile," S&P credit analyst Tracy Dolin said in a news release.

"Specifically, Chubb has adapted its risk tolerances and centralized its reinsurance strategy to mitigate potential volatility. We have seen strong retention of key personnel. Although business overlap exists in some segments, like professional liability, we expect the company to utilize reinsurance to manage gross limits.”

“Furthermore, the combination creates a stronger franchise and new status among the global multiline insurers. We view capital adequacy as extremely strong through robust earnings and lack of share buyback activity since July 2015. Chubb is also differentiating itself further among its multinational clients in the face of operational challenges that some of its competitors are experiencing."

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