AM Best said the ratings for The Chubb Corporation remained unaffected by the fourth quarter charges announced by the company.
It said the A++ (superior) financial strength rating for The Chubb Corporation `s property/casualty subsidiaries, the existing aa- senior debt rating of Chubb and Chubb Executive Risk, the a+ ratings of the capital securities of Executive Risk Capital Trust and the AMB-1+ rating on the commercial paper issued by Chubb capital Corporation would all remain the same, with a stable outlook.
The ratings agency said the charges announced by Chubb in the fourth quarter had been taking into account in the 8 December 2003 affirmation of the company's ratings.
The fourth quarter charges included a US$250m asbestos reserve charge, a $96m charge for the non-insurance business of Chubb Financial Solutions in the fourth quarter, and $150m of adverse loss development for the full year on accident years 2002 and prior for, primarily, professional indemnity.
AM Best said Chubb and its subsidiaries continued to be favourable positioned and sufficiently well capitalised to absorb the charges.
