BNY Trade’s Ratings Upgraded
Ratings agency A. M. Best has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and issuer credit rating to A from A- of Bermuda-based BNY Trade Insurance Ltd. The outlook for both ratings has been revised to stable from positive.
The ratings reflect BNY Trade’s strong capitalisation, consistently positive operating results, conservative operating strategy and robust enterprise risk management framework as the Hamilton-headquartered operation follows its parent, The Bank of New York Mellon Corporation’s, practices.
Partially offsetting these positive rating factors are BNY Trade’s limited market scope, product mix and dependence on third parties for processing, servicing and administration, said Best. An additional offsetting rating factor is BNY Trade’s large underwriting exposures as it offers high gross insurance limits and insures excess bankers’ professional liabilities with substantial insured values.
The ratings recognize BNY Trade’s excellent business position, as it has close ties to and is a wholly owned subsidiary of BNY Mellon, a leading global financial services company.
BNY Trade provides comprehensive reinsurance/insurance coverages/products. The company’s reinsurance is placed with the world’s significant providers, and it benefits from BNY Mellon’s significant financial resources, extensive risk mitigation and the safety programs implemented throughout the organisation.
A.M Best remains the leading rating agency of captive insurers, rating a wide variety of more than 200 captives in Bermuda, the US and throughout the world.
