Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
02 Nov 2005
MOODY'S AFFIRMS RATINGS OF THE CHUBB CORPORATION & SUBSIDIARIES (SENIOR DEBT AT A2), OUTLOOK CHANGED TO STABLE
New York, November 02, 2005 -- Moody's Investors Service has affirmed the A2 senior debt rating of The
Chubb Corporation, and the Aa2 insurance financial strength rating
of its principal insurance subsidiaries, namely Federal Insurance
Company and its affiliated pool members. The outlook for the ratings
has been changed to stable from negative.
According to Moody's, the rating affirmation and stable outlook
reflect the company's strong underwriting performance and cash flows,
as well as its improved risk-adjusted capitalization and moderating
holding company financial leverage profile. Moody's initiated
the negative outlook in March 2004 on the basis of concerns regarding
both observed past and potential future volatility arising out of the
company's professional liability insurance segment (including financial
institutions), as well as the potential for continued drag from
asbestos-related claim losses.
Moody's noted that, since then, Chubb has experienced
a reduced level of adverse development from executive liability protection
insurance such as directors and officers and errors & omissions coverages
written in recent years. This favorable trend, together with
improved pricing fundamentals across most of its business lines,
has contributed to robust core earnings and internal capital generation,
which in turn have improved earnings coverage metrics and operational
and financial leverage measures.
Chubb remains the acknowledged leader in high-end personal lines
and executive protection insurance, and the Aa2 insurance financial
strength ratings further reflect its commitment to underwriting and reserving
discipline, strong customer service capabilities, and a favorable
outlook for internal capital generation through business currently being
written. Moody's added that these strengths are tempered
by the intrinsic volatility of the group's core business segments
-- including property/catastrophe exposures in its homeowners segment
and exposure to liability-related claim severity in its executive
liability business. Exposure to adverse claim development in runoff
asbestos and environmental liabilities also remains a risk.
During the third quarter of 2005, Chubb reported net income of $246
million, net of an estimated $568 million pre-tax
impact from third quarter catastrophes, primarily Hurricanes Katrina
and Rita. Additionally, Chubb recently announced that it
intends to exit its reinsurance assumed business segment by entering into
an agreement for the formation of a new global reinsurer. From
a strategic perspective, Moody's has always considered Chubb's
involvement in assumed reinsurance to be opportunistic, rather than
a core strategic business. Hence, the rating agency does
not view the company's decision to exit this business as reducing
its core franchise strength.
At the current rating level, Moody's expects that Chubb will
maintain cash at the holding company of approximately $1 billion,
in order to provide it with flexibility to support potential growth or
risk-adjusted capital needs at its insurance subsidiaries,
and that capital management activity -- including prospective dividend
and/or share repurchase activity -- will be managed commensurate
with the insurance operations' exposure and capital adequacy levels,
such that overall operational and financial leverage trends remain stable
or decline over the medium term.
Factors that could lead to a rating upgrade in the future include the
- sustained reduction in the group's financial leverage profile
(e.g. below 15%);
- demonstration of reduced intrinsic volatility in the group's
catastrophe-exposed homeowners and tort-liability sensitive
executive liability segments, with annual catastrophe losses remaining
less than 10% of shareholders' equity;
- sustained interest and dividend coverage in excess of 5x;
- sustained annual adverse reserve development less than 2.5%
of total reserves.
Factors that could lead to a rating downgrade in the future include the
- sustained adjusted financial leverage in excess of 20%;
- annual catastrophe losses exceeding 15% of shareholders'
- interest and fixed charge coverage below 5x;
- annual adverse reserve development in excess of 5% of
The following ratings have been affirmed with a stable outlook:
The Chubb Corporation - senior long-term debt at A2,
senior unsecured shelf registration at (P)A2, subordinated shelf
registration at (P)A3; preferred stock shelf registration at (P)Baa1;
Chubb Capital Corporation - senior unsecured shelf registration
at (P)A2, subordinated long-term debt shelf registration
Chubb Executive Risk, Inc. - guaranteed senior unsecured
long-term debt at A2;
Executive Risk Capital Trust - guaranteed capital securities at
Chubb Capital Trusts I, II, III -- guaranteed
trust preferred securities shelf registrations at (P)A3.
Federal Insurance Company - insurance financial strength rating
Great Northern Insurance Company - insurance financial strength
rating at Aa2;
Pacific Indemnity Company - insurance financial strength rating
Vigilant Insurance Company - insurance financial strength rating
Northwestern Pacific Indemnity Company - insurance financial strength
rating at Aa2;
Chubb Insurance Company of New Jersey - insurance financial strength
rating at Aa2;
Chubb Lloyds Insurance Company of Texas - insurance financial strength
rating at Aa2;
Chubb Custom Insurance Company - insurance financial strength rating
Chubb Indemnity Insurance Company - insurance financial strength
rating at Aa2;
Chubb National Insurance Company - insurance financial strength
rating at Aa2;
Texas Pacific Indemnity Company - insurance financial strength
rating at Aa2;
Executive Risk Indemnity, Inc. - insurance financial
strength rating at Aa2;
Executive Risk Specialty Insurance Company - insurance financial
strength rating at Aa2;
Quadrant Indemnity Company - insurance financial strength rating
Chubb Atlantic Indemnity, Ltd. - insurance financial
strength rating at Aa2.
The outlooks for Chubb Capital Corporation's Prime-1 rating
for commercial paper, and for the insurance financial strength ratings
of Chubb Argentina de Seguros and Chubb de Mexico Compania
de Seguros, CV de SA remain stable.
The Chubb Corporation (NYSE: CB), based in Warren, New
Jersey, is engaged through its subsidiaries in property and casualty
insurance in the USA and internationally. Chubb is a market leader
in personal lines insurance among high net worth individuals, and
in executive protection lines of business such as directors' and officers'
liability and errors and omissions coverages. For the nine months
ended September 30, 2005, The Chubb Corporation reported net
premiums written of $9.2 billion and consolidated net income
of $1.2 billion. As of September 30, 2005,
shareholders' equity was $11.3 billion.
Moody's insurance financial strength ratings are opinions of the ability
of insurance companies to repay punctually senior policyholder claims
and obligations. For more information, visit our website
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service
Financial Institutions Group
Moody's Investors Service
No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY'S CREDIT RATINGS,
ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.
MOODY'S CREDIT RATINGS,
ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.
To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.
To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.
Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.
Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.