Hamilton Insurance Group member companies have maintained excellent credit ratings in a recent assessment.

AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of Hamilton Re in Bermuda and Hamilton Insurance Designated Activity Company in Dublin, Ireland.

In addition, AM Best has affirmed the FSR of A- (Excellent) and the long-term ICR of “a-” (Excellent) of Hamilton Select Insurance in Wilmington, Delaware. The outlook of these credit ratings is stable.

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.

The firm’s rating affirmations follow rating upgrades in April 2024 resulting from a trend of increasingly favourable 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 capitalisation as measured by Best’s capital adequacy ratio.

AM Best said recent strategic shifts by the firm, including a transition towards a more diversified underwriting portfolio, had helped the group achieve underwriting profitability.

The credit ratings agency said Hamilton’s balance sheet strength assessment also reflected its relatively high-risk investment strategy on the portion of invested assets managed by two sigma investments, a United States 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 favourably 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 favourable 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.

AM Best said the ratings of Hamilton Select reflected its balance sheet strength, which it assessed 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, along with the parent’s common ownership and management, as well as implicit and explicit support.

Hamilton Select is a recently formed speciality insurer focusing on small and middle market US 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 it gains scale and higher than expected loss ratios.

Maintenance of the Hamilton Select’s current operating performance of adequate will require underwriting results trending towards metrics supportive of an adequate assessment over the next 12 to 24 months.

Hamilton Select’s risk-adjusted capitalisation, 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.