AM Best has affirmed the financial strength ratings of A (Excellent) and the long-term issuer credit ratings of “a+” (Excellent) of Bermuda-based BNY Trade Insurance and New York-based The Hamilton Insurance Corp (Hamilton). The outlook of these credit ratings is stable. BNY Trade and Hamilton are single-parent captives of their ultimate parent, BNY Mellon, a global financial services company. In their roles as single-parent captives, both companies provide reinsurance coverage and products to the global bank. AM Best says the ratings reflect BNY Trade’s balance sheet strength, which it assesses as strong. It is supported by risk-adjusted capitalisation at the strongest level, as measured by AM Best’s Capital Adequacy Ratio (BCAR). In addition, it has “excellent liquidity measures” and has had “consistent surplus growth during the last five-year period”. The operating performance assessment of “strong” reflects the company’s favourable combined ratio, driven by excellent loss history and low expense structure, according to AM Best. 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. AM Best affirms that the company benefits from the financial flexibility and support provided by BNY Mellon. It adds: “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.”
