AM Best Comments on Credit Ratings of Chubb Limited and Its Subsidiaries Following Announced Cigna Acquisitions in Asia-Pacific Markets
According to Chubb, the operations to be acquired include Cigna’s accident and health (A&H) and life insurance business in
In AM Best’s view, the present transaction should significantly strengthen Chubb’s already established presence in the
AM Best notes that Chubb’s financial leverage to total and to tangible capital may increase modestly as a result of the transaction; however, these measures should remain in the low 20% and 30% ranges, respectively, thereby staying comfortably within tolerances at the current rating levels. This also takes into consideration the group’s expanded share repurchase activity, which is expected to continue through midyear 2022. Interest and fixed charge coverage measures are expected to likewise remain especially strong (e.g., comfortably above 8x) given especially strong earnings in 2021 and positive anticipated contributions in 2022 from the acquired operations. Balance sheet strength of the group’s principal rating units, reflecting its capital adequacy, as measured by Best’s Capital Adequacy Ratio (BCAR), quality of capital and other considerations, is expected to remain at the strongest level prospectively.
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Source: AM Best