KBRA Comments on Hamilton Insurance Group’s Closing of Pembroke and IEDAC Acquisitions

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases a comment, following Hamilton Insurance Group, Ltd.’s (Hamilton Group) completed acquisition of Pembroke Managing Agency Limited (Pembroke) and its platform at Lloyd’s, as well as Dublin-based carrier Ironshore Europe DAC (IEDAC) from Liberty Mutual Group Inc. (Liberty) on August 20, 2019.

Following Hamilton Group’s signing of a definitive agreement with Liberty on March 14, 2019, KBRA affirmed the insurance financial strength rating (IFSR) of A for Hamilton Re Ltd. (Hamilton Re) and the issuer rating of BBB+ for Hamilton Group (together, Hamilton Re and Hamilton Group are referred to as Hamilton).

In KBRA’s view, Hamilton’s access to the EU and U.S. markets for both its reinsurance franchise and in specialty insurance is greatly enhanced. On a pro forma basis, Hamilton has now doubled its premium base to USD1.1 billion and significantly expanded its managed stamp capacity at Lloyd’s to approximately GBP600 million.

KBRA will continue to monitor the ratings of Hamilton to ensure successful integration of the new entities as well as continued maintenance of sound capitalization and sufficient liquidity to cover projected liability cash flows.

Hamilton also announced two senior management appointments. Jonathan Reiss, Hamilton’s current Group CFO, now assumes the position of President, Strategic Partnerships, a new business unit at Hamilton. In his new role, Mr. Reiss will be responsible for developing the strategy and business plan for Hamilton’s strategic partnerships, including oversight of the Company’s third-party capital platform, Hamilton Capital Partners.

Tony Ursano will join Hamilton as Group CFO on September 5, replacing Mr. Reiss. Mr. Ursano most recently held the position of president, TigerRisk Partners, LLC. Mr. Ursano is familiar with Hamilton, having counseled the company on a number of initiatives in his role at TigerRisk Partners.

KBRA believes that these senior management appointments will leverage the acquisition and further Hamilton’s strategic vision to grow—both organically and inorganically—as a global specialty insurer and reinsurer.

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical Contacts:
Carol Pierce, Senior Director
(646) 731-3307
cpierce@kbra.com

Fred DeLeon, Senior Director
(646) 731-2352
fdeleon@kbra.com

Andrew Edelsberg, Managing Director
(646) 731-2371
aedelsberg@kbra.com

Donna Halverstadt, Managing Director
(646) 731-3352
dhalverstadt@kbra.com

Contacts

Analytical Contacts:
Carol Pierce, Senior Director
(646) 731-3307
cpierce@kbra.com

Fred DeLeon, Senior Director
(646) 731-2352
fdeleon@kbra.com

Andrew Edelsberg, Managing Director
(646) 731-2371
aedelsberg@kbra.com

Donna Halverstadt, Managing Director
(646) 731-3352
dhalverstadt@kbra.com