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A.M. Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of Hamilton Re, Ltd.


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Victoria Ohorodnyk
Financial Analyst
+1 908 439 2200, ext. 5326
victoria.ohorodnyk@ambest.com

Steven Chirico, CPA
Director
+1 908 439 2200, ext. 5087
steven.chirico@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - OCTOBER 20, 2017 03:26 PM (EDT)
A.M. Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Hamilton Re, Ltd. (Hamilton Re) (Bermuda). The outlook assigned to these Credit Ratings (ratings) is stable.

These rating actions follow the completed acquisition of all outstanding shares of Hamilton U.S. Holdings Inc. (HUSA), a wholly owned subsidiary of Hamilton Insurance Group, by American International Group, Inc. (AIG) and the transfer of HUSA’s one-third ownership of Attune to Hamilton Insurance Group, Ltd., as well as other provisions.

Additionally, the rating actions reflect Hamilton Insurance Group’s recent appointment of Pina Albo as the new group CEO. A.M. Best acknowledges Ms. Albo’s extensive industry experience and expertise in both the insurance and reinsurance sectors.

A.M. Best will continue to have an open and ongoing dialogue with Hamilton Re, as the day-to-day management of the company begins the transition from David Brown, the interim CEO, to Ms. Albo.

Furthermore, the ratings of Hamilton Re take into account its excellent risk-adjusted capitalization, favorable operating results including underwriting profitability and solid enterprise risk management framework. Partially offsetting these positive rating factors are the start-up nature of the company, the greater investment risk associated with an alternative investment strategy and the increased competition in the reinsurance marketplace.

A.M. Best’s rating approach involves assessing Hamilton Re’s risk correlations across the enterprise by subjecting its capitalization to concurrent adverse stress test events. The company’s risk-adjusted capitalization can withstand substantial amounts of pressure when subjected to various catastrophe and investment stress scenarios. A.M. Best believes that Hamilton Re’s losses from Hurricanes Harvey, Irma and Maria will be within its risk tolerances, as well as within A.M. Best expectations, as A.M. Best looks across the losses relative to the company’s broader peer group. A.M. Best will continue to monitor the developments associated with these events and the impact on Hamilton Re. Should ultimate losses materially deviate from current estimates, A.M. Best will update the market with regard to its rating opinion on Hamilton Re.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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