Hamilton Insurance Group’s sponsorship of a new catastrophe bond is through the issuance of Series 2024-1 notes by Easton Re Ltd, the company said.

Easton Re will provide the company’s operating platforms with risk transfer capacity of $200 million to protect against United States and territories named storm and North American earthquake risk.

“We are extremely pleased to announce the success of our second sponsorship of Easton Re bonds,” said Hanni Ali, senior vice-president, Hamilton Insurance Group.

“Easton Re continues to be an important part of Hamilton’s strategy as a newly public company, providing meaningful protection to our operating platforms at an attractive risk-adjusted cost.

“That we have secured more retrocession than initially targeted and at a better price than original guidance, underscores investor confidence in Hamilton. We are encouraged by the continued support and aim to further build on our relationships with ILS investors.”

The Easton Re catastrophe bond has been issued from Bermuda and the risk period will run from January 1, 2024 through December 31, 2026.

• Meanwhile, Hamilton’s recently formed Delaware specialty insurer, Hamilton Select Insurance Inc is maintaining stable credit ratings.

AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Hamilton Select. 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.

Hamilton Select is focusing on small and middle market US excess and surplus lines accounts.

The ratings also reflect Hamilton Select’s strategic importance to its parent company, Hamilton Insurance Group, 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 organisations.

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.