Press Release - MARCH 14, 2019
AM Best Comments on Credit Ratings of Hamilton Re, Ltd Following Acquisition Announcement of Pembroke Managing Agency Limited
FOR IMMEDIATE RELEASE
OLDWICK - MARCH 14, 2019
The Credit Rating (rating) consistency reflects Hamilton’s post-transaction risk-adjusted capitalization, which is expected to continue to support AM Best’s opinion on Hamilton’s current risk-adjusted capitalization. AM Best believes that the new business will be accretive to Hamilton’s nominal operating performance and will introduce an earnings diversification benefit. Hamilton’s business profile also should benefit from the line of business and geographic diversification that will result from the substantial increase in new business. It is also expected that synergies will result from the integration of the companies. AM Best anticipates that enterprise risk management post-transaction close will continue at Hamilton’s current assessment of appropriate.
Uncertainty regarding the execution risk associated with a transaction of this relative size is inherent. Offsetting AM Best’s concern is the strength of Hamilton’s management team and corporate culture.
The transaction is expected to be completed in the fourth quarter of 2019 pending regulatory approval. Hamilton Re’s ratings can change in the near- or long-term if the terms and conditions of the deal change materially or the assumptions presented to AM Best from Hamilton change materially. Hamilton Re’s ratings will be evaluated on an ongoing basis until the transaction concludes, at which time AM Best will conduct discussions with management regarding the final terms of the transaction and its impact on capitalization, business profile, enterprise risk management and projected operating performance.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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