AM Best Affirms Credit Ratings Of Hamilton Re
AM Best has affirmed the Financial Strength Rating [FSR] of A [Excellent] and the Long-Term Issuer Credit Rating [Long-Term ICR] of “a” [Excellent] of Hamilton Re, Ltd. [Pembroke, Bermuda] and Hamilton Insurance Designated Activity Company [Dublin, Ireland], each a wholly owned subsidiary of Hamilton Insurance Group, Ltd. [Pembroke, Bermuda] [collectively referred to as Hamilton]. In addition, AM Best has affirmed the FSR of A- [Excellent] and the Long-Term ICR of “a-” [Excellent] of Hamilton Select Insurance Inc. [Hamilton Select] [Wilmington, DE]. The outlook of these Credit Ratings [ratings] is stable.
The ratings agency said, “Hamilton’s ratings reflect the company’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management [ERM].
“Hamilton’s rating affirmations follow rating upgrades in April 2024 resulting from a trend of increasingly favorable underwriting results, leading to organic capital generation, increased stability and overall balance sheet strength.
“The very strong balance sheet strength assessment is supported by Hamilton’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio [BCAR]. Recent strategic shifts that have been executed by the company, including a transition toward a more-diversified underwriting portfolio, have helped the group achieve underwriting profitability. Hamilton’s balance sheet strength assessment also reflects its relatively high-risk investment strategy on the portion of invested assets managed by Two Sigma Investments, LP, a U.S. Securities and Exchange Commission-registered investment adviser.
“The operating performance assessment of adequate is supported by Hamilton’s historical investment returns and underwriting results, which have trended favorably over the past five years as the group achieved underwriting profitability in 2023, continuing into 2024. Underwriting improvements have stemmed from the group’s diversification efforts and the favorable rate environment, as well as the re-underwriting measures across the business.
“The business profile assessment of neutral is supported by Hamilton’s continued expansion of its diversified global insurance and reinsurance platform. Risk management capabilities are considered appropriate and in line with the group’s risk profile.
“The ratings of Hamilton Select reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM. The ratings further reflect Hamilton Select’s strategic importance to its parent company, Hamilton Insurance Group, Ltd., along with the parent’s common ownership and management, as well as implicit and explicit support.
“Hamilton Select is a recently formed specialty insurer focusing on small and middle market U.S. excess and surplus lines accounts. The company completed its second full year of operations and has yet to report an underwriting profit, due to a combination of a high expense ratio as the company gains scale and higher-than-expected loss ratios. Maintenance of the company’s current operating performance of adequate will require underwriting results trending toward metrics supportive of an adequate assessment over the next 12-24 months. Hamilton Select’s risk-adjusted capitalization, as measured by BCAR, was assessed at strong at year-end 2024; however, it returned to the strongest level in the second quarter of 2025 following a capital injection from its parent company, providing further support for the rating lift provided by Hamilton.”
