Chubb Limited
Chubb Limited is an American[2] company incorporated in Zürich, Switzerland. It is the parent company of Chubb, a global provider of insurance products covering property and casualty, accident and health, reinsurance, and life insurance and is the largest publicly traded property and casualty insurance company in the world.[3] Chubb operates in 55 countries and territories and in the Lloyd's insurance market in London. Clients of Chubb consist of multinational corporations and local businesses, individuals, and insurers seeking reinsurance coverage. Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance.
Company type
Insurance and reinsurance
1985 in Hamilton, Bermuda
Thomas Caldecot Chubb
Worldwide
- Evan G. Greenberg
(Chairman and CEO)
- Property and Casualty and Health
- Life insurance
- Reinsurance
US$49.74 billion (2023)
US$9.526 billion (2023)
US$9.028 billion (2023)
US$230.7 billion (2023)
US$59.51 billion (2023)
c. 40,000 (2023)
In 2018, the group had $174 billion in assets, $30.8 billion of gross written premiums and approximately 31,000 employees.[4] Chubb trades on the New York Stock Exchange and is a component of the S&P 500 index. Its core operating insurance companies are rated "AA" (Very Strong) for financial strength by Standard & Poor's[5][6] and "A++" (Superior) by A. M. Best[7][8] with stable outlooks from both agencies. Fitch rates Chubb Limited and its subsidiaries "AA" (Very Strong) for financial strength, "AA−" for issuer default and "A+" for senior debt.[9] Moody's rates the U.S. companies "A1" and the unsecured loan notes "A3".[10]
On 1 July 2015, property & casualty insurer Ace Limited (ACE) announced that it would acquire the original Chubb Corporation for $28.3 billion in cash and stock.[11] ACE stated that Chubb's current headquarters in Warren, New Jersey, will have a substantial portion of the headquarters function for the combined company's North American Division. The combined company adopted the Chubb name in January 2016 after the acquisition was completed.[12]
History[edit]
Chubb[edit]
In 1882, Thomas Caldecot Chubb and his son Percy started a marine underwriting business in New York City. They collected $1,000 from 100 prominent merchants and focused on insuring ships and cargoes.[13]
The Chubb Corporation was incorporated in 1967 and was listed on the New York Stock Exchange in 1984.[13]
Beginning in 1970, the corporation owned The Chubb Institute, a chain of commercial technical schools which grew out of the company's employee training program, but the schools were sold for $1 to a partnership of private equity firms Great Hill Partners and the High-Tech Institute in 2004.
In 2007, Chubb was named the Readers' Choice winner as "Best Admitted Property/Casualty Insurance Company" by Business Insurance.[14] In 2010 Chubb was number five on Chicago Business "Best Places to Work" list.[15]
Controversies[edit]
2004 Eliot Spitzer investigation[edit]
In 2004 New York Attorney General Eliot Spitzer conducted an investigation in the insurance industry. ACE, American International Group (AIG), Marsh & McLennan, and other large insurers and brokerages were named in Spitzer's investigation for possibly participating in questionable insurance practices including the payment of contingent commissions, bid-rigging, price-fixing, and improper accounting.[44]
[45]
Spitzer asserted that contingent commissions contributed to a widespread practice of "bid-rigging" where brokers solicited fake bids with deliberately less favorable terms for the consumer than the bid offered by the insurance company paying the highest commissions.[46][47]
As part of an $80 million settlement that abated further inquiry, ACE signed an Assurance of Discontinuance in which they acknowledged their prior conduct and agreed to alter their business practices. Evan Greenberg himself admitted no fault in Spitzer's allegations although a junior executive did plead guilty to criminal charges.[48][49]
Spitzer's insurance industry probe additionally looked in early 2005 into ACE Ltd's subsidiary ACE Tempest Re's reporting to the SEC of a series of reinsurance transactions, together with the SEC reporting of a further 16 unaffiliated re-insurers. Evan Greenberg said that his company's investigation should be completed within a month. According to Greenberg, contracts appeared "generally structured in a way to provide for appropriate risk transfer and accounted for properly."[50]
The Spitzer investigations also triggered civil litigation by policyholders who claim they were victimized by the bid rigging and commission schemes.[51]
Securing bond for Donald Trump defamation appeal[edit]
On 8 March 2024, Federal Insurance Company, part of The Chubb Corporation, posted a $91.63 million dollar bond for Donald Trump in the E. Jean Carroll v. Donald J. Trump case.[52][53] Despite an estimated net worth of over $2 billion,[54] Trump needed a cash bond posted by Chubb in order to secure his appeal. While President, Trump appointed Chubb CEO Evan G. Greenberg to the White House advisory committee for trade policy and negotiations.[55] When Chubb announced the securing of the bond, they claimed that this would be the only bond secured as Trump has another $454 million bond pending for his New York civil fraud case.[52] On 18 March 2024, Trump's lawyers notified the Appellate Division of Manhattan Supreme Court that he was unable to secure a bond for the civil fraud case, seeming to confirm Chubb's position on not underwriting additional bonds for Trump.[56]
On 13 March 2024, CEO Evan Greenberg issued a letter to investors, customers, and brokers defending the move. Despite having deep personal connections to Trump, Greenberg claimed "we frankly left our own personal feelings aside" when deciding to issue the bond.[57][58]