OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Hamilton Select Insurance Inc. (Hamilton Select) (Delaware). The outlook of 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 recently formed specialty insurer focusing on small and middle market U.S. excess and surplus lines accounts. The ratings also reflect Hamilton Select’s strategic importance to its parent company, Hamilton Insurance Group, Ltd., along with the parent’s common ownership, management and its implicit support.
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 start-up phase based on balance sheet projections provided by the company’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, as well as the company’s performance during its initial two years of operations. Over this period, underwriting profitability has yet to be achieved; however, the company’s performance has been in line with projections. AM Best views Hamilton Select’s business profile as limited, given the execution risk associated with a start-up 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.
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