Saturday, June 15, 2024

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AM Best affirms ratings of BNY Mellon captives

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 The Hamilton Insurance Corp. (Hamilton) (Melville, NY).

BNY Trade and Hamilton are single-parent captives of their ultimate parent, The Bank of New York Mellon Corporation (BNY Mellon), a global financial services company.

In their roles as single-parent captives, both companies provide comprehensive reinsurance coverage and products to their parent. The outlook of the credit ratings (ratings) is stable.

BNY Trade’s balance sheet strength is assessed as strongest by AM Best, 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.

AM Best said 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,” AM Best said.