BNY Mellon captives get ratings affirmed by AM Best
AM Best has affirmed the financial strength rating of A (Excellent) of Bermuda based BNY Trade Insurance, which is a captive insurer for US national bank BNY Mellon.
AM Best also affirmed the A rating of BNY Mellon's New York-based captive, The Hamilton Insurance Corp. The outlook for both insurers is stable.
The ratings agency said its assessed BNY Trade's balance sheet strength as strongest and also credited 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)," AM Best said. "Further, the company continues to maintain excellent liquidity measures while generating consistent net annual profits during the past 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, strong liquidity measures exceeding industry composite averages, and benefits from the financial flexibility and support from its ultimate parent, BNY Mellon. The operating performance of strong for both BNY Trade and Hamilton reflects favourable combined ratios, driven by excellent loss history and low expense structure."
AM Best said that in their roles as single parent captives, both companies provided comprehensive reinsurance coverage and products to their parent.
"Both BNY Trade and Hamilton are an integral component of BNY Mellon’s overall risk management framework, and benefit from the parent’s robust, enterprise–wide policies and procedures in the areas of risk management, resiliency, corporate governance, compliance and ethics," AM Best said.
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