Federal Insurance Company has a long and storied history that is indeed intertwined with Chubb, one of the world’s leading property and casualty insurance companies. While they operate as separate entities today, their origins reveal an undeniable connection.
Federal Insurance Company was founded in 1901 in Jersey City, New Jersey by Percy Chubb. Percy, along with his father Thomas Chubb, had established the venerable Chubb & Son marine insurance firm in New York City in 1882. After nearly 20 years focusing on maritime insurance, Percy decided to diversify by starting Federal Insurance to provide fire insurance coverage.
In 1903, Federal expanded into casualty and liability insurance. This move laid the foundation for Federal’s future growth into a leading multiline insurer providing all major lines of insurance coverage including:
Percy Chubb served as Federal’s first president, leading the fledgling company through its early years. His strong leadership and experience from Chubb & Son were invaluable in getting Federal off the ground.
Meanwhile, Chubb & Son continued to thrive under the leadership of Percy’s brother, Hendon Chubb. When Hendon took over the company after their father’s death in 1907, he focused on expanding internationally and diversifying their insurance offerings.
Chubb opened its first international branch in Montreal in 1928 and moved into aviation insurance in 1929. By 1956, they had grown into a leading personal lines insurer.
In 1967, Chubb & Son merged with Pacific Indemnity Company to form the Chubb Corporation. This new entity incorporated Federal Insurance Company along with several other Chubb subsidiaries:
Now structured under a holding company, the Chubb Corporation was positioned for continued expansion over the next several decades into an insurance powerhouse.
In 1982, the Chubb Corporation was acquired by the Connecticut General Corporation. The two companies merged to form Cigna Corporation. During this period from 1982 to 1998, both Federal Insurance and the Chubb Corporation’s insurance subsidiaries operated under the ownership of Cigna.
However, Cigna was primarily a health services company and wanted to focus on its core medical and employee benefits businesses. So in 1998, it made the decision to spin off its property and casualty insurance segments.
In 1998, the Chubb Corporation regained its independence as part of a spin-off transaction from Cigna. As part of this reorganization, Federal Insurance Company and Westchester Fire Insurance Company remained part of Cigna. Chubb Corporation focused on rebuilding itself in the property and casualty market, relying on the strength of its namesake Chubb brand.
Over the next decade, the Chubb Corporation aggressively expanded through organic growth and acquisitions. By 2004, they had grown into a global leader in commercial and personal property and casualty insurance under the leadership of CEO Evan Greenberg.
In January 2016, ACE Limited completed its acquisition of Chubb Corporation for $29.5 billion. This created one of the world’s largest multiline property and casualty insurers with operations worldwide.
The new company adopted the venerable Chubb name and brand given its strong reputation and history in the insurance industry. However, Federal Insurance Company did not join its former affiliates under the reformed Chubb umbrella.
Federal Insurance Company continues to operate as a wholly owned subsidiary of Cigna Corporation. They provide commercial property and casualty insurance products in the U.S. and globally. With over 120 years of history dating back to Percy Chubb, Federal maintains a strong presence in the insurance market.
While no longer affiliated through ownership, Federal Insurance Company’s legacy is forever linked with Chubb. It retains the spirit of innovation and commitment to quality insurance products instilled by its founder Percy Chubb over a century ago.
So while Federal Insurance Company is not a present-day Chubb company in strict legal terms, its lineage and shared origins bind it closely to the Chubb tradition. In many ways, the Chubb dna remains at the core of Federal’s identity and approach to the insurance business.
Chubb has grown into one of the world’s largest publicly traded property and casualty insurers following its 2016 merger with ACE Limited. Some key facts about the current Chubb enterprise:
Chubb operates through a variety of insurance subsidiaries organized into three business units:
This expansive international footprint and diverse portfolio of insurance offerings have established Chubb as a leading global insurer serving clients of all sizes. The company leverages its substantial size, strong capital position, and 150+ years of experience to protect clients across the world.
While no longer united through corporate ownership, Federal Insurance Company and Chubb share interwoven histories dating back over a century. Their roots trace back Percy Chubb who founded Federal in 1901 after establishing Chubb & Son in 1882.
So while Federal Insurance operates independently today, its lineage still remains closely aligned with Chubb’s history and tradition of excellence in the insurance industry. This special connection through their origins binds the two companies in a unique way that persists to the present day.
Who owns Chubb insurance company?
Chubb’s History In January 2016, ACE Limited acquired the Chubb Corporation, creating the world’s largest publicly traded property and casualty insurance company operating under the renowned Chubb name.
What is the federal insurance company in the US?
Federal Insurance Company provides insurance services . The Company offers fire, marine, casualty, accident and health, and property insurance services. Federal Insurance serves customers in the United States.
Is Chubb insurance public or private?