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Mellon Bank captives deemed creditworthy

A woman walks past a logo at the office of the Bank of New York Mellon in Brussels (File photograph by Sebastien Pirlet/Reuters)

A New York bank’s Bermuda insurer is one of two captive insurance companies with excellent credit ratings that have again been attested to by global rating agency AM Best.

The agency affirmed the financial strength rating of A (Excellent) and the long-term issuer credit ratings of “a+” (Excellent) of Bermudian-based BNY Trade Insurance Ltd and the Hamilton Insurance Corp of Melville, New York.

BNY Trade and Hamilton are single-parent captives of their ultimate parent, the Bank of New York Mellon Corporation, a leading global financial services company.

The outlook of these credit ratings is stable.

The ratings of BNY Trade and Hamilton reflect their balance-sheet strength, which AM Best assesses as strongest, as well as their strong operating performance, neutral business profile and appropriate enterprise risk management.

In their roles as single-parent captives, both companies provide comprehensive reinsurance coverage and products to their parent.

BNY Trade’s balance-sheet strength is assessed as strongest, and is supported by risk-adjusted capitalisation at the strongest level, as measured by Best’s capital adequacy ratio, excellent liquidity measures and consistent surplus growth during the last five-year period, driven by organic growth.

The operating performance assessment of strong reflects the company’s favourable combined ratio driven by excellent loss history and low expense structure.

Hamilton’s balance-sheet strength assessment of very strong is supported by risk-adjusted capitalisation at the very strong level, as measured by BCAR, and strong liquidity measures exceeding industry composite averages.

In addition, the company benefits from the financial flexibility and support provided by BNY Mellon.

BNY Trade and Hamilton also benefit from their parent’s robust, enterprise-wide policies and procedures in the areas of risk management, resiliency, corporate governance, compliance and ethics.

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Published June 08, 2023 at 3:44 pm (Updated June 08, 2023 at 8:53 pm)

Mellon Bank captives deemed creditworthy

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