AM Best has 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.

The outlook of these credit ratings is stable.

Both are single-parent captives of their ultimate parent, The Bank of New York Mellon Corporation, a global financial services company. In their roles as single-parent captives, they provide comprehensive reinsurance coverage and products to their parent.

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

The ratings of Hamilton reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate ERM.

The agency said BNY Trade’s balance sheet strength assessment of strongest is supported by its risk-adjusted capitalisation being at the strongest level, as measured by Best’s capital adequacy ratio.

AM Best said: “Further, the company continues to maintain excellent liquidity measures while generating consistent net annual profits during the past five-year period, driven by organic growth.

“Hamilton’s very strong balance sheet strength assessment is supported by risk-adjusted capitalisation at the strongest level, as measured by BCAR, strong liquidity measures exceeding industry composite averages, and benefits from the financial flexibility and support from its ultimate parent, BNY Mellon.

“The operating performance of strong for both BNY Trade and Hamilton reflects favourable combined ratios, driven by excellent loss history and low expense structure.

“Both BNY Trade and Hamilton are an integral component of BNY Mellon’s overall risk management framework, and benefit from the parent’s robust, enterprise – wide policies and procedures in the areas of risk management, resiliency, corporate governance, compliance and ethics.”