AM Best affirms the Financial Strength Rating of ‘A’ (Excellent) and the Long-Term Issuer Credit Ratings of ‘a+’ (Excellent) of BNY Trade Insurance, Ltd. (BNY Trade), of Hamilton, Bermuda, and The Hamilton Insurance Corp. (Hamilton), of Melville, New York. The outlook of the ratings is ‘stable’. BNY Trade and Hamilton are single-parent captives of their ultimate parent, The Bank of New York Mellon Corporation, a global financial services company. Both provide comprehensive reinsurance coverage and products to their parent and form an integral part of its overall risk management framework, benefiting from the group's enterprise-wide policies on risk management, resiliency, corporate governance, compliance and ethics. 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, assessed as very strong, alongside strong operating performance, a neutral business profile and appropriate ERM. BNY Trade's balance sheet strength assessment is supported by risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). The company continues to maintain excellent liquidity while generating consistent net annual profits over the most recent five-year period, driven by organic growth. Hamilton's assessment is supported by risk-adjusted capitalisation at the strongest level under BCAR and strong liquidity measures exceeding industry composite averages. Both captives benefit from the financial flexibility and support of their ultimate parent. Their strong operating performance reflects favourable combined ratios, driven by excellent loss history and a low expense structure. AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and worldwide.
