Bermuda-based Hamilton Re and Hamilton Insurance Designated Activity Company (Dublin, Ireland), both part of Hamilton Insurance Group, Ltd., have seen their outlooks revised to positive from stable by AM Best.
The ratings agency has revised the outlooks to positive and also affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of both Hamilton Re and Hamilton Insurance DAC.
AM Best says that the positive outlook is a reflection of its expectation that Hamilton will maintain its improving trend of profitability and continue to produce earnings that are accretive to the group’s balance sheet.
On the credit ratings, AM Best says these reflect the company’s balance sheet strength, which it assesses as very strong, as well as its adequate operating performance, neutral business profile, and appropriate enterprise risk management.
AM Best explains: “Recent strategic shifts that have been executed by the company, including a transition toward a more diversified underwriting portfolio, have helped moderate the performance volatility that previously weighed on Hamilton’s balance sheet strength.
“However, Hamilton’s balance sheet strength assessment of very strong also reflects its relatively high-risk investment strategy on a portion of its invested assets, which is controlled by Two Sigma Investments, LP, an SEC-registered investment adviser.”
