AM Best affirms ratings of BNY Mellon captives

AM Best has affirmed the financial strength rating of A (Excellent) of BNY Trade Insurance and The Hamilton Insurance Corp. The outlook of these ratings is stable.

Both companies are single-parent captives of The Bank of New York Mellon Corporation – BNY Trade is domiciled in Bermuda, and Hamilton in New York. Both captives provide reinsurance coverage and products to BNY Mellon.

The ratings of BNY Trade reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings of Hamilton reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate ERM.

BNY Trade’s balance sheet strength assessment of strongest is supported by its risk-adjusted capitalisation being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).

Furthermore, AM Best said the company continues to maintain excellent liquidity measures while generating consistent net annual profits during the most recent five-year period, driven by organic growth.

Hamilton’s very strong balance sheet strength assessment is supported by risk-adjusted capitalisation at the strongest level, as measured by BCAR, and strong liquidity measures exceeding industry composite averages.

The operating performance of strong for BNY Trade and Hamilton reflects favourable combined ratios, driven by excellent loss history and low expense structure, the ratings agency added.

The companies were also said to benefit from the financial flexibility and support from BNY Mellon.

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