AM Best affirms ratings of BNY Trade Insurance & Hamilton Insurance

AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a+” (Excellent) of BNY Trade Insurance and The Hamilton Insurance Corp. The outlook of these Credit Ratings (ratings) is stable.

The rating agency said that 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 adequate operating performance, neutral business profile and appropriate ERM.

BNY Trade and Hamilton are single-parent captives of their ultimate parent, The Bank of New York Mellon Corporation (BNY Mellon) a leading global financial services company. In their roles as single-parent captives, both companies provide comprehensive reinsurance coverage and products to their parent.

BNY Trade’s balance sheet strength is assessed as strongest and is supported by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), excellent liquidity measures and consistent surplus growth during the last five-year period, driven by organic growth. The operating performance assessment of strong reflects the company’s favourable combined ratio driven by excellent loss history and low expense structure. Hamilton’s balance sheet strength assessment of very strong is supported by risk-adjusted capitalisation at the very strong level, as measured by BCAR, and strong liquidity measures exceeding industry composite averages. In addition, the company benefits from the financial flexibility and support provided by BNY Mellon. BNY Trade and Hamilton also benefit from their parent’s robust, enterprise–wide policies and procedures in the areas of risk management, resiliency, corporate governance, compliance and ethics.