Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Está por salir del sitio local de México y comenzará a navegar en el sitio global. ¿Desea continuar?
No mostrar este mensaje nuevamente
Si
No
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

 

By clicking “I AGREE”, 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 (the “Information”). References herein to “Moody’s” include Moody’s Corporation. and each of its subsidiaries and affiliates..

 

Terms of One-Time Website Use

 

1.             Unless you have entered into an express written contract with www.moodys.com to the contrary and/or agreed to the Terms of Use at www.moodys.com or ratings.moodys.com, 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.                   

 

2.             CREDIT RATINGS AND MOODY’S MATERIALS FOUND ON WWW.MOODYS.COM OR SITES OTHER THAN RATINGS.MOODYS.COM MAY NOT BE DISPLAYED IN REAL TIME. FOR REAL-TIME DISPLAYS OF CREDIT RATINGS AND OTHER INFORMATION REQUIRED TO BE DISCLOSED BY MIS PURSUANT TO APPLICABLE LAW OR REGULATION, PLEASE USE RATINGS.MOODYS.COM.           

 

3.             You 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.

 

4.             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 Information.     

 

5.             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.​​​

 

6.             You agree that any disputes relating to this agreement or your use of the Information, whether 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.​​​

I AGREE
Rating Action:

Moody's rates Chubb do Brasil Aaa.br National Scale, Baa2 Global Local Currency

 The document has been translated in other languages

22 Nov 2006
Moody's rates Chubb do Brasil Aaa.br National Scale, Baa2 Global Local Currency

First-time rating for Brazilian unit of the Chubb Group of insurance companies.

New York, November 22, 2006 -- Moody's Investors Service has assigned a Aaa.br national scale insurance financial strength rating, and a Baa2 global local currency insurance financial strength rating to Chubb do Brasil Companhia de Seguros ("Chubb do Brasil"). Both ratings have stable outlooks.

According to Moody's, these ratings reflect Chubb do Brasil's favorable product diversification, its adequate underwriting leverage relative to peers, its distribution efficiency and the use of multiple channels. The company writes primarily automobile insurance (38% of net premiums written, as of September 30, 2006), general liability (14%), and a diverse array of other property and liability lines in its general insurance operations as well as group life insurance (13%), mainly for higher-income individuals and small and medium-sized companies. Other core business lines include marine and cargo insurance and coverages for agricultural equipment. As a provider of personal and commercial lines insurance in Brazil, Chubb do Brasil's product distribution is conducted primarily through local and international brokers, but the company has also recently expanded in alternative distribution systems.

Commenting on the company's franchise strength, Moody's noted that with a market share of less than 2%, Chubb do Brasil is a relatively small company within the Brazilian general insurance sector, in comparison to the largest national companies that tend to have market shares of 7%-10% or more. That said, the company's operational capabilities are supported by its strong local infrastructure, as well as by the shared underwriting, claims, actuarial and financial expertise it enjoys as part of the Chubb Group of insurance companies, which write personal, commercial and specialty insurance on a global basis. Furthermore, the company's product diversification within the general insurance segment and the spread of risk within its underwritten portfolio are viewed favorably.

Alejandro Pavlov, Vice President and Senior Analyst at Moody's, and lead analyst for Chubb do Brasil, noted: "Chubb do Brasil's overall favorable business and financial profile position it well in our view. Despite its relatively small scale in the Brazilian market, Chubb do Brasil is an integral component of the group's Latin American regional operations, and is one of the platforms for targeted future business growth in the region."

Like most Brazilian insurers, Chubb do Brasil's investment profile is concentrated with approximately 90% of investments in Brazilian government bonds, mostly reflecting regulatory guidelines for investments that support insurance policy liabilities. The Ba2 rating of most of these instruments is ultimately a consideration with respect to Brazilian insurers' credit profiles, viewed on a global basis. That said, Chubb's investment strategy does provide it with ample flexibility to shift between local currency and dollar-denominated investments, should the need arise. Modest exposures to ceded reinsurance (to IRB -- the government-controlled reinsurer) and to intangible assets are credit positives. In recent years, the company has diversified its book of business away from larger risks toward a higher volume of smaller limit policies in order to improve its net operating results. Although the company's preference to retain nearly all of its gross underwriting risk does expose it to some degree of volatility, results should remain relatively predictable, as these policies carry little exposure to catastrophic losses.

In Moody's view, Chubb's capital adequacy is good, with ample cushion in its regulatory solvency margin and a gross leverage profile that is in line with industry averages. Although strong recent growth in the company's core business lines has reduced its capital margin, earnings strength combined with contributions from the parent company to support profitable growth have stabilized the company's operating leverage profile.

Moody's noted that Chubb do Brasil's earnings have been strong in 2005 and 2006 with returns on equity in the 20% vicinity, following relative weakness in 2003 and 2004. Given the company's preference to retain most of its underwritten business and to rely only sparingly on ceded reinsurance to IRB, Moody's expects that the company over time will generate better-than-average profitability going forward, albeit with perhaps a somewhat above-average degree of volatility as well, relative to industry averages. The rating agency added that the company's 40% expense ratio (relative to net premiums written) compares favorably with its largest and most prominent competitors, enabling Chubb do Brasil to compete effectively in its chosen business segments.

Finally, Moody's noted that Chubb do Brasil's affiliation with The Chubb Corporation (NYSE: CB), a leader in international property and casualty insurance, is a positive credit consideration, as the company has ready access to management expertise in every major operating area, including underwriting, finance, actuarial and claims-handling. Additionally, The Chubb Corporation (whose lead insurance company subsidiary, Federal Insurance Company, is rated Aa2 for insurance financial strength (global scale), and whose senior debt is rated A2) benefits from very substantial financial flexibility, reflecting its relatively modest financial leverage (less than 20%), its strong interest and fixed charge coverage metrics (greater than 7x on a cash basis, and greater than 12x on an earnings basis), and a market capitalization in excess of US$20 billion. In Moody's view, Chubb do Brasil benefits from its ownership by Chubb and from the parent company's financial flexibility.

Alan Murray, Vice President and Senior Credit Officer at Moody's, lead analyst for The Chubb Corporation and author of Moody's recently-published Outlook for the Brazilian Insurance Industry noted: "Chubb do Brasil's financial and operational management, as well as its governance and commitment to financial transparency and integrity, are also hallmarks of the group's ultimate parent company, The Chubb Corporation. The company's underwriting and claims settlement culture is also reflective of Chubb's core discipline in its worldwide operations."

Supporting this view of parental support, Moody's noted that The Chubb Corporation has made several capital contributions to Chubb do Brasil over the years in order to support the company's profitable growth. The ratings contemplate Moody's expectation that The Chubb Corporation will continue to be supportive of Chubb do Brasil, especially given its improved profitability and growth, as well as sovereign macroeconomic stability, and considering that Chubb do Brasil is the largest of Chubb's five operations in Latin America, which also include subsidiaries in Mexico, Argentina and Chile (all rated by Moody's) and in Colombia.

Moody's noted that a sustained trend in improved underwriting profits (e.g. with combined ratios below 95%) in the next couple of years, a more balanced and diversified business profile (e.g. with four or more business lines representing more than 10% of net premiums written), and/or explicit support from Federal Insurance Company or The Chubb Corporation could result in an upgrade for the global local currency rating. Conversely, a significant increase in the gross underwriting leverage ratio (e.g. above 6x the company's shareholders' equity), sustained earnings weakness (e.g. returns on equity of less than 5%) or a decline in business diversification are factors that could result in a rating downgrade.

Chubb do Brasil Companhia de Seguros is headquartered in São Paulo and has branches in Belo Horizonte, Brasilia, Curitiba, Rio de Janeiro and Porto Alegre. For the first nine months of 2006, Chubb do Brasil reported net premiums written of BRL 383.6 million and net income of BRL 20.7 million. As of September 30, 2006, the company reported shareholder's equity of BRL 161 million, as compared with BRL 141 million as of December 31, 2005. For the first nine months of 2006, The Chubb Corporation, based in Warren, New Jersey, USA reported consolidated net written premiums of $US 9.0 billion and consolidated net income of $US 1.9 billion, and the company reported consolidated shareholders' equity of $US 13.6 billion as of September 30, 2006.

NOTE: Moody´s national scale ratings rank an enterprise's credit risk on a relative basis in comparison with other firms within the same country. Such ratings are designed for use at the local (national) level, and they are not globally comparable. For Brazilian companies, national scale ratings carry the identifier of ".br". Moody's global local currency ratings indicate the relative credit risk on a globally comparable basis. Taken together, the national scale and global local currency ratings provide a more comprehensive opinion about the credit risk of the company. Moody's insurance financial strength ratings are opinions about the ability of insurance companies to punctually repay senior policyholder claims and obligations.

For more information, please visit our website at www.moodys.com

New York
Alan Murray
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Buenos Aires
Alejandro Pavlov
Vice President - Senior Analyst
Financial Institutions Group

No Related Data.
© 2022 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 CREDIT RATINGS AFFILIATES ARE THEIR 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 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 APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S 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 $5,000,000. 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 JPY100,000 to approximately JPY550,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.