Chubb Limited is an American company incorporated in
Zürich, Switzerland. It is the parent company of Chubb, a global provider of
insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
products covering property and casualty, accident and health, reinsurance, and life insurance and the largest publicly traded property and casualty company in the world. Chubb operates in 55 countries and territories and in the
Lloyd's
Lloyd's of London, generally known simply as Lloyd's, is an insurance and reinsurance market located in London, England. Unlike most of its competitors in the industry, it is not an insurance company; rather, Lloyd's is a corporate body gov ...
insurance market in
London
London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
. 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
Health insurance or medical insurance (also known as medical aid in South Africa) is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses. As with other types of insurance, risk is shared among ma ...
,
reinsurance
Reinsurance is insurance that an insurance company purchases from another insurance company to insulate itself (at least in part) from the risk of a major claims event. With reinsurance, the company passes on ("cedes") some part of its own insu ...
and
life insurance
Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death ...
.
In 2018, the group had $174 billion in assets, $30.8 billion of gross written premiums and approximately 31,000 employees. Chubb trades on the
NYSE
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is by far the List of stock exchanges, world's largest s ...
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
S&P Global Ratings (previously Standard & Poor's and informally known as S&P) is an American credit rating agency (CRA) and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities. S&P is con ...
and "A++" (Superior) by
A. M. Best
AM Best is an American credit rating agency headquartered in Oldwick, New Jersey, that focuses on the insurance industry. Both the U.S. Securities and Exchange Commission and the National Association of Insurance Commissioners have designate ...
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.
Moody's
Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides international ...
rates the U.S. companies "A1" and the unsecured loan notes "A3".
On 1 July 2015, ACE announced that it would acquire the original
Chubb Corporation
Chubb Limited is an American 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 the la ...
for $28.3 billion in cash and stock.
ACE has committed that Chubb's current headquarters in
Warren, New Jersey
Warren Township is a township in Somerset County, New Jersey, United States. The township is a bedroom suburb of New York City in the much larger New York metropolitan area, located within the Raritan Valley region. As of the 2020 United State ...
,
USA
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
, 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.
Business structure
ACE provides insurance and reinsurance products and services through several operating units.
North American
ACE USA provides commercial property insurance and casualty (P&C), risk management and accident and health (A&H) coverages through retail brokers. ACE Agriculture offers crop, farm and agribusiness P&C coverages through agents and brokers. ACE Westchester offers commercial P&C excess and surplus lines through wholesale brokers.
ACE Bermuda provides liability, property, political risk coverages and captive programs through large international brokers.
ACE Private Risk Services offers high-value personal lines coverages through independent agents and brokers. ACE Commercial Risk Services provides specialty small business coverage through agents and brokers.
Elsewhere
ACE International provides commercial P&C, A&H, and traditional and specialty personal lines through retail brokers, agents and other channels in 51 countries outside North America. ACE Global Markets offers commercial P&C excess and surplus lines and A&H sold by wholesale brokers and through Lloyd's. In North America, Combined Insurance, acquired by ACE in 2008, provides personal accident and supplemental health insurance through captive agents.
Reinsurance
ACE Tempest Re, based in
Stamford, Connecticut
Stamford () is a city in the U.S. state of Connecticut, outside of Manhattan. It is Connecticut's second-most populous city, behind Bridgeport. With a population of 135,470, Stamford passed Hartford and New Haven in population as of the 2020 ...
, offers P&C and life reinsurance sold worldwide by reinsurance brokers.
Life
ACE Life provides protection and savings products through agents,
bancassurance
Bancassurance is a relationship between a bank and an insurance company that is aimed at offering insurance products or insurance benefits to the bank's customers. In this partnership, bank staff and tellers become the point of sale and point of ...
and other channels in
Asia
Asia (, ) is one of the world's most notable geographical regions, which is either considered a continent in its own right or a subcontinent of Eurasia, which shares the continental landmass of Afro-Eurasia with Africa. Asia covers an area ...
,
Latin America
Latin America or
* french: Amérique Latine, link=no
* ht, Amerik Latin, link=no
* pt, América Latina, link=no, name=a, sometimes referred to as LatAm is a large cultural region in the Americas where Romance languages — languages derived f ...
, and the
Middle East
The Middle East ( ar, الشرق الأوسط, ISO 233: ) is a geopolitical region commonly encompassing Arabian Peninsula, Arabia (including the Arabian Peninsula and Bahrain), Anatolia, Asia Minor (Asian part of Turkey except Hatay Pro ...
. Combined Insurance offers personal accident and supplemental health coverage sold by captive agents in North America.
History
Chubb
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.
The Chubb Corporation was incorporated in 1967 and was listed on the
New York Stock Exchange
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...
in 1984.
Beginning in 1970, the corporation owned
The Chubb Institute Anthem Education Group (formerly The Chubb Institute) was a Florida-based organization that operated a chain of for-profit, technical schools in the United States, called Florida Career College. In 2018, their website listed 11 campuses, ten in Flo ...
, 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''. In 2010 Chubb was number five on Chicago Business "Best Places to Work" list.
ACE Limited
1985–1999
ACE Limited was established in 1985 in response to the U.S.
liability insurance
Liability insurance (also called third-party insurance) is a part of the general insurance system of risk financing to protect the purchaser (the "insured") from the risks of liabilities imposed by lawsuits and similar claims and protects the i ...
crisis of the mid-1980s. It was formed with the assistance of insurance broker
Marsh & McLennan
Marsh & McLennan Companies, Inc., doing business as Marsh McLennan, is a global professional services firm, headquartered in New York City with businesses in insurance brokerage, risk management, reinsurance services, talent management, investme ...
and funded by a group of 34 U.S. companies seeking difficult-to-obtain Excess Liability and Directors and Officers (D&O) insurance coverage.
That year, ACE and its Bermuda
subsidiary
A subsidiary, subsidiary company or daughter company is a company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that either belong to the same parent company or having a s ...
, incorporated in the
Cayman Islands
The Cayman Islands () is a self-governing British Overseas Territory—the largest by population in the western Caribbean Sea. The territory comprises the three islands of Grand Cayman, Cayman Brac and Little Cayman, which are located to the ...
and headquartered in
Hamilton, Bermuda
The City of Hamilton, in Pembroke Parish, is the territorial capital of the British Overseas Territory of Bermuda. It is the territory's financial centre and a major port and tourist destination. Its population of 854 (2016) is one of the sm ...
, wrote its first insurance policy with John Cox as its president and CEO. In 1987 the company assumed management of Corporate Officers & Directors Assurance Limited (CODA), expanding ACE Bermuda's product line.
Walter Scott became Chairman, President, and CEO of ACE in 1990 and saw the company listed on the
New York Stock Exchange
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...
in 1993. Brian Duperreault succeeded Scott in 1994 as Chairman, President & CEO and worked for the next ten years as ACE went through a series of acquisitions and a diversification process that brought the ACE Group of Companies global status.
One of the multiple acquisitions made during this time was the global property and casualty business of
Cigna
Cigna is an American multinational managed healthcare and insurance company based in Bloomfield, Connecticut. Its insurance subsidiaries are major providers of medical, dental, disability, life and accident insurance and related products and se ...
Corporation (most significantly the
Insurance Company of North America, known as INA), which was purchased for $3.45 billion in 1999.
2000–2021
In 2004,
Evan G. Greenberg
Evan G. Greenberg (born 1955) is an American business executive. He is the President and Chief Executive Officer (CEO) of the Zürich-based insurance company Chubb Limited (formerly ACE Limited).
Early life and education
Greenberg is the son of ...
became president and CEO of ACE Ltd.
In 2004 ACE was also investigated by NY Attorney General
Eliot Spitzer
Eliot Laurence Spitzer (born June 10, 1959) is an American politician and attorney. A member of the Democratic Party (United States), Democratic Party, he was the 54th governor of New York from 2007 until his resignation in 2008.
Spitzer was b ...
for participating in a
bid rigging
Bid rigging is a fraudulent scheme in procurement auctions resulting in non-competitive bids and can be performed by corrupt officials, by firms in an orchestrated act of collusion, or between officials and firms. This form of collusion is illegal ...
and
price fixing
Price fixing is an anticompetitive agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given ...
scheme with insurance broker
Marsh & McLennan
Marsh & McLennan Companies, Inc., doing business as Marsh McLennan, is a global professional services firm, headquartered in New York City with businesses in insurance brokerage, risk management, reinsurance services, talent management, investme ...
.
In 2008, ACE purchased the accident and health insurance provider
Combined Insurance
Combined Insurance is a global provider of supplemental insurance, including accident insurance, life insurance and critical care coverage. Combined Insurance operates in North America, Latin America, Europe and the Pacific. The company is headqu ...
Company of America (founded by
W. Clement Stone
William Clement Stone (May 4, 1902 – September 3, 2002) was an American businessman, philanthropist and New Thought self-help book author.
Biography
Stone was born in Chicago, Illinois on May 4, 1902. His father died in 1905 leaving his family ...
in 1919) from
Aon Corporation
Aon PLC () is a British-American multinational financial services firm that sells a range of risk-mitigation products, including Commercial Risk, Investment, Wealth and Reinsurance solutions, as well as boutique strategy consulting through Aon ...
for $2.56 billion and the high-net-worth personal lines business of the Atlantic Companies.
Also in 2008, ACE relocated from the Cayman Islands to
Zurich, Switzerland. Evan Greenberg described the move as a "natural progression" that would provide ACE with a "better strategic flexibility…and a solid legal and regulatory environment…"
The re-domestication was completed in July that year.
In 2010, the ACE company ESIS Inc. was hired by
BP to process claims made by the victims of the
Deepwater Horizon oil spill
The ''Deepwater Horizon'' oil spill (also referred to as the "BP oil spill") was an industrial disaster that began on 20 April 2010 off of the coast of the United States in the Gulf of Mexico on the BP-operated Macondo Prospect, considered ...
.
In 2010, ACE Limited purchased Rain and Hail, LLC for $1.1 billion. Rain and Hail Insurance Service, headquartered in
Johnston, Iowa
Johnston is a city in Polk County, Iowa, United States. The population was 24,064 in the 2020 census, an increase of 178% from the 8,649 population in 2000. It is part of the Des Moines– West Des Moines Metropolitan Statistical Area.
Johnst ...
, is an industry leader in crop insurance in the United States. ACE Limited also acquired the Hong Kong and Korea life insurance operations of New York Life.
In 2011, ACE Limited purchased agribusiness insurer Penn Millers.
In 2012, they purchased Indonesian insurer Asuransi Jaya Proteksi.
In 2013, they purchased Mexican Surety Lines Company Fianzas Monterrey and Mexican Personal Lines Insurer ABA Seguros.
In April 2014, ACE Limited acquired a majority stake in Siam Commercial Samaggi Insurance PCL from Siam Commercial Bank. Following a subsequent tender offer in June 2014, ACE and its local partner owned 93.03% of the Samaggi.
In October 2014, ACE Limited acquired the large commercial property and casualty business of Itaú Unibanco Holding SA. The transaction made ACE the largest property and casualty insurer in Brazil.
In April 2015, ACE Limited acquired the Fireman's Fund high net worth personal lines insurance business in the U.S. from Allianz for $365 million. ACE Private Risk Services is one of the largest high net worth insurers in the U.S.
On 1 September 2020, Chubb has announced the introduction of the latest update of Enterprise Guard Plus product for the emerging needs of Hong Kong plan business insurance.
In February 2021, Chubb Limited and the World Health Organisation announced the roll out of a no-fault compensation scheme for COVID-19 vaccinations for low and middle-income countries.
ACE acquires Chubb
On 1 July 2015, ACE announced that it would acquire Chubb Corporation for $28.3 billion in cash and ACE stock.
Upon completion, ACE shareholders held 70% while Chubb shareholders got 30% of the new combined company. The new company was to be based in Zurich, where ACE Limited's headquarters were. Evan Greenberg of ACE became the Chairman and CEO of the new company, while Chubb Chairman and CEO
John Finnegan became Executive Vice Chairman for North America External Affairs. The company's board was expanded to 18, with 4 of them coming from Chubb. The new combined company then decided to adopt the Chubb name. The deal received ACE and Chubb shareholder approval and all required regulatory approval, and closed on 14 January 2016.
Accordingly, in Vietnam, ACE Life will change its name to Chubb Life Vietnam Company Limited
Chubb Life Vietnam. This name change will not cause any changes in the company's business strategy as well as the operation process of the company in the Vietnamese market.
All insurance benefits of customers under the insurance contracts signed with ACE Life are still guaranteed by Chubb Life to comply with the rules and terms in the contract.
Controversies
2004 Eliot Spitzer investigation
In 2004 New York Attorney General Eliot Spitzer conducted an investigation in the insurance industry. ACE,
American International Group
American International Group, Inc. (AIG) is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. , AIG companies employed 49,600 people.https://www.aig.com/content/dam/aig/amer ...
(AIG),
Marsh & McLennan
Marsh & McLennan Companies, Inc., doing business as Marsh McLennan, is a global professional services firm, headquartered in New York City with businesses in insurance brokerage, risk management, reinsurance services, talent management, investme ...
, 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.
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.
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.
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."
The Spitzer investigations also triggered civil litigation by policyholders who claim they were victimized by the bid rigging and commission schemes.
Iran Held Liable for 9/11
On 9 March 2016, U.S. District Judge
George B. Daniels issued a default judgement against Iran, ordering it to pay $7.5 billion in damages to families of victims who died in the attacks in the US, as well as $3 billion to Chubb Limited & other unnamed insurers that paid out claims resulting from the event. The plaintiffs in the case argued that Iran "provided material support" and training to
al-Qaeda
Al-Qaeda (; , ) is an Islamic extremism, Islamic extremist organization composed of Salafist jihadists. Its members are mostly composed of Arab, Arabs, but also include other peoples. Al-Qaeda has mounted attacks on civilian and military ta ...
members, including 9/11 hijackers, through Hezbollah prior to the attacks and was therefore liable.
Chubb Group Classic
The Chubb Classic is a
Champions Tour
PGA Tour Champions (formerly the Senior PGA Tour and the Champions Tour) is a men's professional senior golf tour, administered as a branch of the PGA Tour.
History and format
The Senior PGA Championship, founded in 1937, was for many years ...
golf tournament located at The Classics Country Club at Lely Resort in
Naples, Florida
Naples is a city in Collier County, Florida, United States. As of the 2020 census, the population of the historical city (i.e. in the immediate vicinity of downtown Naples) was 19,115. Naples is a principal city of the Naples-Marco Island, Flori ...
. The Chubb Classic has raised more than $3 million for charity.
References
#27 dead lin
replacement
External links
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{{Authority control
Companies listed on the New York Stock Exchange
Companies based in Zürich
Insurance companies of Switzerland
Financial services companies established in 1985