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AM Best Upgrades Rating of Hamilton Re, Hamilton Insurance DAC to “A” (Excellent)

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AM Besthas upgraded the Financial Strength Rating to “A” (Excellent) from “A-” (Excellent) and the Long-Term Issuer Credit Ratings to “a” (Excellent) from “a-” (Excellent) of Hamilton Re Ltd., in Bermuda, and Hamilton Insurance Designated Activity Co., in Dublin, Ireland.

Both companies are wholly owned subsidiaries of Bermuda-based Hamilton Insurance Group, known collectively as Hamilton.

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The outlook of these credit ratings has been revised to stable from positive.

The upgrade of the Long-Term ICRs reflects Hamilton’s trend of increasingly favorable underwriting results, leading to organic capital generation, increased stability and overall balance sheet strength, AM Best said.

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In its report, AM Best said the ratings upgrade reflects Hamilton’s “very strong” balance sheet strength, “as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.”

AM Best further noted Hamilton “has shown improving underwriting results consistently over the past five-year period while conservatively reserving, with a five-year net favorable reserve development, outperforming peers.”

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The very strong balance sheet strength assessment is supported by Hamilton’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR).

“Recent strategic shifts that have been executed by the company, including a transition toward a more diversified underwriting portfolio, have helped the group achieve underwriting profitability, which previously weighed on Hamilton’s balance sheet strength,” according to AM Best.

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The report noted that Hamilton’s underwriting improvements have stemmed from the group’s efforts to diversify, the favorable rate environment, reunderwriting across the business, and the integration of the Pembroke Managing Agency platform at Lloyd’s acquired in 2019.

“We are thrilled that AM Best has upgraded Hamilton to an ‘A’ rating,” said the Company’s CEO Pina Albo, in a statement from Hamilton.

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“This endorsement recognizes the remarkable business transformation that our team has achieved over the past five years. It also allows us to continue expanding our access to profitable business at this favorable time in the market cycle, thus facilitating the execution of our strategy of building a global specialty insurance and reinsurance company,” she added.

“Receiving an ‘A’ rating from AM Best is a meaningful acknowledgment of the dedication and hard work of our team. Taken together with our recent listing as a public company and our ten-year anniversary, our ratings upgrade completes a trilogy of success to be celebrated.”

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