Saturday, June 15, 2024

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AM Best affirms ratings of BNY Mellon’s captives

AM Best has affirmed the financial strength rating of A (excellent) and the long-term issuer credit ratings of “a+” (excellent) of Bermuda-domiciled BNY Trade Insurance, and New York-domiciled The Hamilton Insurance Corp. The outlook for the ratings is stable.

BNY Trade and Hamilton are both single parent captives owned by ultimate parent, BNY Mellon, a global financial services company.

Both captives provide comprehensive reinsurance coverage and products to their parent and are both important components of BNY Mellon’s overall risk management framework.



AM Best said both BNY Trade and Hamilton benefit from the parent’s robust policies and procedures in the areas of risk management, corporate governance and compliance.

BNY Trade’s rating 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 strong operating performance, neutral business profile and appropriate ERM.

BNY Trade’s balance sheet strength assessment of strongest is supported by its risk-adjusted capitalisation being at the strongest level, as measured by Best’s capital adequacy ratio (BCAR).

Hamilton’s very strong balance sheet strength assessment is supported by risk-adjusted capitalisation at the strongest level, as measured by BCAR, strong liquidity measures exceeding industry composite averages, and benefits from the financial flexibility and support from its parent.

The operating performance of strong for both BNY Trade and Hamilton reflects favourable combined ratios, driven by excellent loss history and low expense structure.