S&P’s Places Chubb Ratings on CreditWatch Negative

Standard & Poor’s has placed on CreditWatch with negative implications its ‘A+/A-1’ counterparty credit and senior debt ratings on New Jersey-based The Chubb Corp. following an announcement by Chubb of several unexpected incremental fourth-quarter 2002 charges for the strengthening of reserves for asbestos exposure and directors and officers liability coverage in its European operations.

Standard & Poor’s also said that it placed its ‘AA+’ counterparty credit
and financial strength ratings on Chubb’s operating insurance companies on CreditWatch negative.

“Standard & Poor’s will be conducting a full review with management about these charges, the underlying performance of its business lines, and reinsurance related to asbestos,” Standard & Poor’s credit analyst Michael Gross said. “Following the review, Standard & Poor’s expects the ratings on the operating companies to remain in the ‘AA’ category and the ratings on parent to remain in the ‘A’ category.”

The very strong ‘AA+’ ratings on Chubb’s operating companies are based on the group’s leadership position in a range of insurance lines in both commercial and personal segments of the property/casualty industry.

In addition, the group enjoys very strong brand-name recognition and secure capital strength.