AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of ‘a+’ (Excellent) of Chubb Perú SA Compañía de Seguros y Reaseguros (Chubb Peru), based in Lima, Peru. The outlook for these ratings remains stable.

These ratings reflect Chubb Peru’s assessment of its balance sheet strength, which AM Best rates as the strongest. The company also demonstrated adequate operating performance, a neutral business profile, and appropriate enterprise risk management.

The stable outlook indicates AM Best expects Chubb Peru to continue to profitably adjust its product offerings, supported by its parent company, Chubb Limited.

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Chubb Peru began operations in 1998 under the name Altas Cumbres. It was acquired by the ACE Group in 2007 and renamed ACE Seguros SA. Following the acquisition of Chubb Corporation by ACE Limited in 2016, the company adopted its current name.

AM Best noted that Chop Peru has a diversified portfolio, with the business distributed through a range of traditional and broad channels, such as regional retailers and banks.

As of December 2023, 65% of the company’s gross written premiums came from property and casualty products, while accident and health accounted for 28%, and life insurance accounted for the remaining 7%. As of July 2024, Chubb Peru ranked as the 12th largest insurance operation in the country.

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AM Best recently revised Chubb Peru’s balance sheet strength rating from Very Strong to Strong. Chubb Peru has maintained a strong capital base through prudent investment, reinsurance and underwriting practices. The company also benefits from a comprehensive reinsurance program provided by its subsidiary, Chubb Tempest Reinsurance Ltd.

By the end of Q2 2024, Chubb Peru had increased its total capital base to $42 million. The company’s market capitalization remained stable, supported by growth in retained earnings, despite dividend payments.

Chubb Peru’s 2023 year-end results showed a slight increase in claims compared to 2022. However, this was offset by lower operating expenses, resulting in a 66.6% improvement in the combined ratio and a 25% increase in net income over the previous year.

The company continues to focus on generating value across its business portfolio and limiting exposure to more competitive market segments.

Chubb Peru benefits from its integration into the Chubb Group, which provides operational advantages through shared enterprise risk management systems, procedures and practices. The Group has demonstrated its support by providing a comprehensive reinsurance programme and active oversight of the company’s strategy.

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