Standard & Poor’s assigned on Tuesday its ‘R’ rating to Hamilton Insurance Co. This action follows news that the Commonwealth Court has granted the Pennsylvania Insurance Department’s petition to liquidate the company. The department is also preparing a petition to file with the court seeking a finding of insolvency.
The company’s liabilities total $36 million, while assets, including the firm’s investments, total only $26 million, according to the department and papers filed in court. Losses will be paid by a state insurance guaranty fund through a surcharge levied on other auto insurers.
This stock casualty company, based in Fort Washington, Pa., is licensed to write property and allied lines, inland marine, and nonstandard auto insurance. It had begun operations in 1959 and obtained its license in Pennsylvania at year-end 1997. An insurer rated ‘R’ is under regulatory supervision owing to its financial condition. During the pendency of the regulatory supervision, the regulators may have the power to favor one class of obligations over others or pay some obligations and not others. The rating does not apply to insurers subject only to nonfinancial actions such as market conduct violations, Standard & Poor’s said.