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A.M. Best has affirmed the ratings of property and casualty subsidiaries of The Chubb Corporation (CB - Analyst Report). As a part of its rating action, the agency reiterated the “A++“insurer financial strength (IFS) ratings and “aa+” issuer credit ratings (ICR) of the subsidiaries. 
Concurrently, A.M. Best reiterated the ICR of “aa-”, all long-term debt and indicative ratings and the AMB-1+ on the commercial paper of Chubb Corp.
All the rating carry a stable outlook, which indicates no expected near term changes affecting the company’s business. However, the commercial papers do not carry any rating outlook.
A.M. Best ‘s recent rating action comes on the back of Chubb’s consistent operating profitability, maintenance of superior risk-adjusted capital, a strong brand name, disciplined underwriting practices, low debt level and a niche presence in specialty and personal lines business segment. 
A.M. Best notes that despite incurring recent catastrophe loss, Chubb reported operating profitability, which reflects its well cushioned business. Led by profitable operations, the company also churns out strong operating cash flows. 
Nevertheless, headwinds from competitive insurance markets and a threat of catastrophe losses persist. Exposure to catastrophe losses has always induced volatility to the company’s earnings. A significant portion of the company’s business lies in catastrophe prone areas. Cat losses had adversely affected the company’s combined ratio thus impacting the company’s profitability.
As a remedial measure to protect itself from cat loss incidence the company actively uses catastrophe reinsurance program.  
The rating agency is also concerned with adverse reserve development in the company’s asbestos and environmental liabilities lines. Nevertheless overall the company has been reporting favorable reserve releases. 
A.M. Best also avowed the FSR of A++ and ICR of “aa+” of Chubb Atlantic Indemnity Ltd. (Chubb Atlantic) (Pembroke, Bermuda). The rating action for the company’s unit came on the back of solid risk-adjusted capitalization and the direct and indirect capital support provided by the parent company. 
Chubb currently retains a Zacks Rank # 2 (Buy) 
Other insurers The Travelers Companies Inc. (TRV - Analyst Report) and W.R. Berkley Corp. (WRB - Analyst Report), Assurant Inc. (AIZ - Analyst Report) also carry an investment grade rating from A.M. Best. 

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