AM Best assigns credit ratings to Hamilton Select Insurance
AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Hamilton Select Insurance . The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Hamilton Select’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
Hamilton Select is a newly formed specialty insurer focusing on small and middle market US excess and surplus lines accounts. The ratings reflect Hamilton Select’s strategic importance to its parent company, along with its common ownership and management, and the implicit and explicit support provided to Hamilton Select by Hamilton .
The very strong balance sheet assessment is based on Hamilton Select’s supportive risk-adjusted capital that meets AM Best’s guidelines for newly formed organizations. AM Best expects that Hamilton Select will maintain supportive risk-adjusted capital levels throughout its startup phase based on balance sheet projections provided by Hamilton Select’s management. AM Best assesses Hamilton Select’s operating performance as adequate based on its clearly defined business plan and income statement projections that contemplate a level of implementation and execution risk for a newly formed entity. AM Best views Hamilton Select’s business profile as limited, given the execution risk associated with a startup entity and the degree of competition in its selected market. This risk is mitigated somewhat by the management team’s experience in the targeted business class, along with the parent company’s brand and track record of success. Hamilton Select is expected to benefit from Hamilton Insurance Group, Ltd.’s established and tested ERM framework.
Negative rating action could occur if the company’s actual operating performance or balance sheet strength materially differ to the downside from the initial business plan. Negative rating action could also occur if support from the company’s ultimate parent was eliminated or reduced.
