AM Best Upgrades Credit Ratings of Hamilton Re, Ltd. and Hamilton Insurance Designated Activity Company
30 Abril 2024 - 4:25PM
Business Wire
AM Best has upgraded the Financial Strength Rating to A
(Excellent) from A- (Excellent) and the Long-Term Issuer Credit
Ratings to “a” (Excellent) from “a-” (Excellent) of Hamilton Re,
Ltd. (Hamilton Re) (Pembroke, Bermuda) and Hamilton Insurance
Designated Activity Company (Dublin, Ireland), each a wholly owned
subsidiary of Hamilton Insurance Group, Ltd. (Pembroke, Bermuda)
(collectively referred to as Hamilton). The outlook of these Credit
Ratings (ratings) has been revised to stable from positive.
The ratings reflect Hamilton’s balance sheet strength, which AM
Best assesses as very strong, as well as its adequate operating
performance, neutral business profile and appropriate enterprise
risk management.
The upgrade of the Long-Term ICRs reflects Hamilton’s trend of
increasingly favorable underwriting results, leading to organic
capital generation, increased stability and overall balance sheet
strength. The group has shown improving underwriting results
consistently over the past five-year period while conservatively
reserving, with a five-year net favorable reserve development,
outperforming peers.
The very strong balance sheet strength assessment is supported
by Hamilton’s strongest level of risk-adjusted capitalization, as
measured by Best’s Capital Adequacy Ratio (BCAR). Recent strategic
shifts that have been executed by the company, including a
transition toward a more diversified underwriting portfolio, have
helped the group achieve underwriting profitability, which
previously weighed on Hamilton’s balance sheet strength. The very
strong balance sheet assessment considers the group’s largely
favorable history of reserve development and its history of
reserving conservatively, above actuarial mid ranges. Hamilton’s
balance sheet strength assessment of very strong also reflects its
relatively high-risk investment strategy on the portion of invested
assets managed by Two Sigma Investments, LP, an SEC-registered
investment adviser.
The operating performance assessment of adequate is supported by
Hamilton’s historical investment returns and underwriting results,
which have trended favorably over the past five years as the group
achieved underwriting profitability in 2023. Underwriting
improvements have stemmed from the group’s diversification efforts
and the favorable rate environment, as well as the reunderwriting
measures across the business and the integration of the Pembroke
Managing Agency platform at Lloyd’s acquired in 2019.
The business profile assessment of neutral is supported by
Hamilton’s continued expansion of its diversified global insurance
and reinsurance platform. Risk management capabilities are
considered appropriate and in line with the group’s risk
profile.
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent Rating
Activity web page. For additional information regarding the use and
limitations of Credit Rating opinions, please view Guide to Best's
Credit Ratings. For information on the proper use of Best’s Credit
Ratings, Best’s Performance Assessments, Best’s Preliminary Credit
Assessments and AM Best press releases, please view Guide to Proper
Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
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