This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

A.M. Best Affirms Ratings Of The Hamilton Insurance Corp.

A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of “a+” of The Hamilton Insurance Corp. (Hamilton) (New York, NY). The outlook for both ratings is stable.

The ratings reflect Hamilton’s excellent risk-adjusted capitalization, strong liquidity and conservative operating strategy. Also inuring to Hamilton’s ratings is the incorporation of a favorable business plan, which the profitability and liquidity metrics of the ratings are based.

Partially offsetting these positive ratings factors is Hamilton’s short operating history, limited market scope/business profile, product mix and dependence on third parties for processing, servicing and administration. Furthermore, somewhat offsetting these positive rating factors is the company’s relatively large (gross) underwriting exposures as it offers high gross insurance limits and execution risk associated with the implementation of Hamilton’s business plan.

Additionally, the ratings recognize Hamilton’s excellent business position and its relationship with its parent, The Bank of New York Mellon Corporation (BNY Mellon) [NYSE: BK], a leading global financial services company. Hamilton provides comprehensive re/insurance coverage/products to BNY Mellon. Hamilton benefits from BNY Mellon’s robust enterprise risk management (ERM) framework as it follows BNY Mellon’s ERM practices, financial resources, risk mitigation and the safety programs implemented throughout the organization. Hamilton’s projected operating results indicate favorable returns, and its surplus base of over $1.2 billion is adequate to support its asset and credit risk exposure. While the excess all risk cash and securities program and the property coverages offer significant insured values (considering the high coverage limits offered), the net impact of the credit risk could be burdensome. Nonetheless, A.M. Best believes this is mitigated by the historical fact that BNY Mellon has not experienced significant claims for these coverages in the layers insured by Hamilton. Also, A.M. Best recognizes the low probability of such events.

Hamilton has met A.M. Best’s stringent requirements for newer company formations. The company’s ratings are a reflection of its ability to meet A.M. Best’s onerous capitalization requirements, which mandate a more conservative level of risk-based capital to support the company’s ratings.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs