Morningstar DBRS Discontinues and Withdraws Financial Strength Ratings on Chubb Limited's Major Subsidiaries

DBRS Limited (Morningstar DBRS) discontinued and withdrew its Financial Strength Ratings on four subsidiaries of Chubb Limited (Chubb or the Company): ACE American Insurance Company, Illinois Union Insurance Company, ACE Property and Casualty Insurance Company, and Federal Insurance Company for business reasons. The last rating action was on March 21, 2024 when Morningstar DBRS confirmed Financial Strength Ratings of AA with a Stable trend on all four of Chubb's subsidiaries.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS

Environmental (E) Factors

The following Environmental factor(s) had a relevant effect on the credit analysis: Environmental concern regarding Climate and Weather Risks is relevant to the rating of Chubb Subsidiaries but it did not affect the assigned credit rating or trend. The Chubb Subsidiaries are exposed to weather-related losses from natural catastrophic events such as storms, wildfire, flooding and other extreme-weather events through their property and casualty insurance business. The Chubb Subsidiaries consider climate risk within their enterprise risk management framework and more specifically within their underwriting and investment risk appetite limits. The Chubb Subsidiaries use reinsurance to transfer catastrophe risk, and in certain high-risk regions they limit or do not offer insurance coverage. Morningstar DBRS considered this ESG factor as part of product risk when assessing the Chubb Subsidiaries' risk profile

There were no Social/Governance factor(s) that had a significant or relevant effect on the credit analysis

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024) https://dbrs.morningstar.com/research/437781

Notes:
All figures are in US dollars unless otherwise noted.

The principal methodology is the Global Methodology for Rating Insurance Companies and Insurance Organizations (September 10, 2024) https://dbrs.morningstar.com/research/439195. In addition Morningstar DBRS uses the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024) https://dbrs.morningstar.com/research/437781 in its consideration of ESG factors.

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found on the issuer page at dbrs.morningstar.com.

The credit rating was not initiated at the request of the rated entity. The credit rating was initiated at the request of a third party.

The rated entity or its related entities did not participate in the credit rating process for this credit rating action.

Morningstar DBRS did not have access to the accounts, management and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. Morningstar DBRS's trends and credit ratings are under regular surveillance.

For more information on this credit or on this industry, visit dbrs.morningstar.com.

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577