AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Hydor Insurance Limited (HIL) (Guernsey). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect HIL’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
HIL’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation at the strongest level at 31 December 2025, as measured by Best’s Capital Adequacy Ratio (BCAR), and supported by a conservative investment strategy and good liquidity. The company has a high dependence on reinsurance to write relatively large risks, although the associated risks are mitigated partially by the good credit quality and stability of the reinsurance panel.
For period-end December 2025, HIL’s net income was driven by strong underwriting performance, reflected by a combined ratio of 63.8%. AM Best expects the company’s prospective technical performance to remain supportive of the strong assessment, underpinned by favourable market conditions and prudent risk selection. Due to the conservative nature of its investment strategy, HIL’s investment income is expected to be modest and stable.
HIL is a specialist marine insurer with a niche competitive position in the fixed premium segment of the protection and indemnity market. It is part of Hydor group and its business is sourced entirely from Hydor AS, the group’s delegated underwriting authority enterprise. The company benefits from the wider group’s track record of writing highly profitable marine insurance business over a long period of time.
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 Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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