Part I. Financial Information [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents Hamilton Insurance Group's unaudited consolidated financial statements and notes for Q2 and H1 2025 [Note 1. Organization](index=12&type=section&id=Note%201.%20Organization) Hamilton Insurance Group, a Bermuda-incorporated holding company, operates globally through subsidiaries like Hamilton Re, Lloyd's Syndicate 4000, and has a strategic investment with Two Sigma - The company's Bermuda operations are led by Hamilton Re, Ltd., a Class 4 insurer writing property, casualty, and specialty insurance and reinsurance globally[28](index=28&type=chunk) - London operations are conducted through Hamilton Managing Agency Limited (HMA), which manages the wholly aligned Syndicate 4000 in the Lloyd's market[31](index=31&type=chunk) - The company has a strategic investment commitment in the Two Sigma Hamilton Fund (TS Hamilton Fund) for up to the lesser of **$1.8 billion** or **60% of the Group's net tangible assets**[35](index=35&type=chunk) [Note 3. Investments](index=13&type=section&id=Note%203.%20Investments) This note details the company's investment portfolio, including fixed maturities, short-term investments, and Two Sigma Funds, along with associated fee structures Investment Portfolio Composition (June 30, 2025) | Investment Type | Fair Value ($ thousands) | | :--- | :--- | | Total Fixed Maturities | 2,698,470 | | Short-term Investments | 307,129 | | Investments in Two Sigma Funds | 1,453,781 | | **Total Investments** | **4,459,380** | - Effective January 1, 2025, the Company expanded its investment in Two Sigma Funds to include allocations to ATV, HTV, NTV, and KTV, in addition to the existing STV, ESTV, and FTV funds[50](index=50&type=chunk) Fees Paid to Two Sigma | Fee Type | Q2 2025 ($ millions) | H1 2025 ($ millions) | | :--- | :--- | :--- | | Management Fee | 13.1 | 25.5 | | Incentive Allocation | 80.4 | 180.7 | [Note 6. Reinsurance](index=22&type=section&id=Note%206.%20Reinsurance) This note details the company's reinsurance strategy, including recoverables, collateralization, and catastrophe bond arrangements for risk management - As of June 30, 2025, **99.9%** of the company's reinsurance recoverables were either collateralized or with reinsurers rated 'A-' or better[85](index=85&type=chunk) - The company's catastrophe bond through Easton Re provides **$200 million** in multi-year risk transfer capacity against U.S. named storm and U.S./Canada earthquake risks for the period January 1, 2024, to December 31, 2026[88](index=88&type=chunk) [Note 7. Reserve for Losses and Loss Adjustment Expenses](index=24&type=section&id=Note%207.%20Reserve%20for%20Losses%20and%20Loss%20Adjustment%20Expenses) This note details the company's loss reserves, including favorable prior year development and specific net reserves for major events - For the six months ended June 30, 2025, the company experienced net favorable prior year development of **$34.7 million**, driven by favorable development on property contracts (**$35.6 million**) and specialty contracts (**$18.3 million**), partially offset by unfavorable development on casualty contracts (**$20.4 million**)[90](index=90&type=chunk)[91](index=91&type=chunk) Net Reserves for Major Events (as of June 30, 2025) | Event | Net Reserves ($ millions) | | :--- | :--- | | California Wildfires | 73.2 | | Baltimore Bridge Collapse | 20.5 | | Ukraine Conflict | 59.3 | [Note 8. Segment Reporting](index=26&type=section&id=Note%208.%20Segment%20Reporting) This note details the performance of the International and Bermuda segments, including underwriting income and combined ratios Segment Performance - Six Months Ended June 30, 2025 | Segment | Gross Premiums Written ($ thousands) | Underwriting Income (Loss) ($ thousands) | Combined Ratio (%) | | :--- | :--- | :--- | :--- | | **International** | 714,757 | 27,931 | 94.4 | | **Bermuda** | 840,575 | (18,732) | 103.6 | | **Total** | **1,555,332** | **9,199** | **99.1** | Segment Performance - Three Months Ended June 30, 2025 | Segment | Gross Premiums Written ($ thousands) | Underwriting Income (Loss) ($ thousands) | Combined Ratio (%) | | :--- | :--- | :--- | :--- | | **International** | 344,799 | 27,118 | 89.3 | | **Bermuda** | 367,227 | 40,341 | 84.3 | | **Total** | **712,026** | **67,459** | **86.8** | [Note 9. Debt and Credit Facilities](index=31&type=section&id=Note%209.%20Debt%20and%20Credit%20Facilities) This note outlines the company's debt and credit facilities, including a new $150 million term loan and available liquidity - The company refinanced its debt with a new **$150 million** term loan facility on June 10, 2025, maturing in June 2028[114](index=114&type=chunk) - As of June 30, 2025, the company had **$1.08 billion** in available letter of credit and revolving loan facilities, with **$699.5 million** utilized[123](index=123&type=chunk) [Note 10. Share Capital](index=33&type=section&id=Note%2010.%20Share%20Capital) This note details the company's share capital structure, including share repurchase activity and Class C to Class B share conversions - During the six months ended June 30, 2025, the company repurchased **2.1 million Class B common shares** at an aggregate cost of **$45.3 million**[127](index=127&type=chunk) - As of June 30, 2025, **$76.6 million** remained available for share repurchases under the board's **$150 million** authorization[127](index=127&type=chunk) Consolidated Balance Sheet Highlights (as of June 30, 2025) | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | | **Total Investments** | 4,459,380 | 3,814,353 | | **Total Assets** | 8,913,050 | 7,796,033 | | **Total Liabilities** | 6,285,167 | 5,467,196 | | **Total Shareholders' Equity** | 2,558,591 | 2,328,709 | Consolidated Statement of Operations Highlights | Metric | Three Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | | :--- | :--- | :--- | | **Gross Premiums Written** | 712,026 | 1,555,332 | | **Net Premiums Earned** | 511,163 | 1,010,091 | | **Total Revenues** | 740,765 | 1,509,550 | | **Net Income** | 267,786 | 449,053 | | **Net Income Attributable to Common Shareholders** | 187,415 | 268,288 | Earnings Per Share (EPS) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | **Basic EPS** | $1.85 | $2.64 | | **Diluted EPS** | $1.79 | $2.56 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, strategic priorities, and market conditions, highlighting premium growth, investment returns, and capital position - The company operates through two reporting segments: International (including Hamilton Global Specialty and Hamilton Select) and Bermuda (Hamilton Re)[142](index=142&type=chunk)[145](index=145&type=chunk) - A key strategic priority is sustainable underwriting profitability, complemented by a unique investment management relationship with Two Sigma[141](index=141&type=chunk)[143](index=143&type=chunk) - The company expects to be exempt from the new **15% Bermuda corporate income tax** until January 1, 2030, and has recorded a deferred tax asset of **$35.4 million** related to the economic transition adjustment (ETA)[152](index=152&type=chunk) [Summary Results of Operations](index=42&type=section&id=Summary%20Results%20of%20Operations) This section analyzes consolidated and segment-level results, highlighting premium growth, net income, combined ratios, and investment returns for Q2 and H1 2025 Q2 2025 vs Q2 2024 Consolidated Results | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Gross Premiums Written | $712.0M | $603.3M | | Net Income Attributable to Common Shareholders | $187.4M | $131.1M | | Diluted EPS | $1.79 | $1.20 | | Combined Ratio | 86.8% | 84.4% | H1 2025 vs H1 2024 Consolidated Results | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Gross Premiums Written | $1,555.3M | $1,325.2M | | Net Income Attributable to Common Shareholders | $268.3M | $288.3M | | Diluted EPS | $2.56 | $2.57 | | Combined Ratio | 99.1% | 87.9% | - Catastrophe losses for H1 2025 were **$152.0 million**, primarily driven by California wildfires (**$159.7 million gross**), which significantly increased the combined ratio[221](index=221&type=chunk) [Key Operating and Financial Metrics](index=73&type=section&id=Key%20Operating%20and%20Financial%20Metrics) This section highlights key operating metrics, including book value per common share and return on average common shareholders' equity (ROACE) Book Value Per Share Growth | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Book Value per Common Share | $25.55 | $22.95 | +11.3% | | Tangible Book Value per Common Share | $24.65 | $22.03 | +11.9% | Return on Average Common Shareholders' Equity (ROACE) | Period | ROACE | | :--- | :--- | | Three Months Ended June 30, 2025 | 7.6% | | Six Months Ended June 30, 2025 | 11.0% | [Financial Condition, Liquidity and Capital Resources](index=77&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) This section assesses the company's financial condition, liquidity, and capital resources, highlighting cash, investments, and shareholders' equity - Total cash and investments increased to **$5.5 billion** as of June 30, 2025, up from **$4.9 billion** at December 31, 2024, driven by positive investment returns and deployment of cash[286](index=286&type=chunk) - Consolidated shareholders' equity increased by **9.9%** to **$2.6 billion** in the first six months of 2025, primarily due to net income of **$268.3 million**, partially offset by share repurchases[311](index=311&type=chunk) - The company has access to monthly and daily liquidity options from its TS Hamilton Fund investment, subject to its minimum investment commitment[308](index=308&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=88&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its principal market risks, including interest rate, credit spread, equity price, and foreign currency risks - There were no material changes to the company's market risk exposures during the quarter[336](index=336&type=chunk) [Controls and Procedures](index=88&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of the end of the reporting period[337](index=337&type=chunk) - No material changes to internal control over financial reporting were identified during the quarter[338](index=338&type=chunk) Part II. Other Information [Legal Proceedings](index=89&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from the company's 2024 Form 10-K - Information regarding legal proceedings is referenced from the company's 2024 Annual Report on Form 10-K[339](index=339&type=chunk) [Risk Factors](index=89&type=section&id=Item%201A.%20Risk%20Factors) Readers are directed to the comprehensive risk factors discussed in the company's 2024 Form 10-K - Investors are advised to consider the risk factors detailed in the company's 2024 Annual Report on Form 10-K[340](index=340&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=89&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activity during Q2 2025 under its $150 million authorization Share Repurchases (Q2 2025) | Month | Shares Repurchased | Average Price per Share | | :--- | :--- | :--- | | April 2025 | 0 | N/A | | May 2025 | 550,654 | $21.07 | | June 2025 | 1,102,291 | $21.26 | | **Total Q2** | **1,652,945** | **N/A** | - As of June 30, 2025, the maximum amount still available for repurchase under the program was **$76.6 million**[342](index=342&type=chunk) [Exhibits](index=90&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including credit agreements, employment agreements, and certifications

Financial Data and Key Metrics Changes - Hamilton Insurance Group reported net income of $187 million for Q2 2025, representing an annualized return on average equity of 30.2%, compared to $131 million and 23.6% in Q2 2024 [5][19] - Operating income was $162 million, equal to $1.55 per diluted share, with an annualized operating return on average equity of 26.1% [19] - Book value per share increased by 8.3% to a record $25.55 [19][34] Business Line Data and Key Metrics Changes - Gross premiums written increased by 18% in Q2 2025, reaching $1.6 billion compared to $1.3 billion in Q2 2024 [19][20] - Hamilton Global Specialty saw gross premiums written grow by 7%, while Hamilton Select experienced a significant growth of 52% year-over-year [12][23] - The Bermuda segment's gross premiums written grew by 21%, driven by casualty and property reinsurance classes [25][26] Market Data and Key Metrics Changes - The international segment's gross premiums written grew by 13%, with underwriting income of $27 million and a combined ratio of 89.3% [23] - The Bermuda segment's combined ratio increased to 84.3% from 77.4% in the prior year, primarily due to higher loss ratios [26][27] - The overall combined ratio for the group was 86.8%, compared to 84.4% in Q2 2024 [21] Company Strategy and Development Direction - The company is focused on proactive cycle management, targeting attractive underwriting opportunities while reducing exposure in less favorable areas [10][17] - Recent management appointments reflect a commitment to internal talent development and strategic succession planning [6][7] - The company aims to maintain a disciplined underwriting culture to ensure risk-adjusted returns [64][65] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance trajectory, citing strong client relationships and a well-diversified platform [17] - The underwriting environment remains attractive, with continued strong underlying rate increases in casualty classes [14][56] - The company remains vigilant on loss reserves, having strengthened certain casualty reserves by $18 million this quarter [15][27] Other Important Information - Total investment income for Q2 2025 was $149 million, up from $96 million in Q2 2024, with significant contributions from the Two Sigma Hamilton Fund [29] - The company repurchased $35 million of shares in Q2 2025, with an additional $15 million repurchased post-quarter [32] Q&A Session Summary Question: Can you provide more color around the reserve increases and the discontinued lines? - Management noted that the $18 million reserve increase was manageable, representing about 0.5% of overall reserves, primarily related to discontinued lines from 2020 and prior [38][39] Question: What did you see in terms of property pricing this quarter? - Management indicated that property pricing remains attractive despite some pressure, particularly in larger accounts, while maintaining discipline in underwriting [44][46] Question: Are you seeing a lot of MGA competition in your Select business? - Management confirmed that while there is some impact from MGAs, they are still seeing a healthy flow of business and are comfortable with their underwriting approach [51][52] Question: How should we think about tax rates going forward? - The effective tax rate remains in the low single digits due to a five-year deferral on the global minimum tax, which starts in 2030 [81][82]

Financial Data and Key Metrics Changes - Hamilton Insurance Group reported net income of $187 million for Q2 2025, representing an annualized return on average equity of 30.2%, compared to $131 million and 23.6% in Q2 2024 [4][17][18] - Operating income was $162 million, or $1.55 per diluted share, with an annualized operating return on average equity of 26.1% [17][18] - Book value per share increased by 8.3% to a record $25.55 [18][32] Business Line Data and Key Metrics Changes - Gross premiums written increased by 18% in Q2 2025, reaching $1.6 billion compared to $1.3 billion in Q2 2024 [4][19] - Hamilton Global Specialty saw gross premiums written grow by 7%, while Hamilton Select experienced a significant growth of 52% year-over-year [11][22] - The Bermuda segment's gross premiums written grew by 21% to $841 million, driven by casualty and property reinsurance classes [24][25] Market Data and Key Metrics Changes - The international segment's gross premiums written increased by 13% to $715 million, with underwriting income rising to $27 million [22] - The combined ratio for the group was 86.8%, up from 84.4% in Q2 2024, with a loss ratio increase to 52.8% [20][21] - The investment income for Q2 2025 was $149 million, significantly higher than $96 million in Q2 2024 [27] Company Strategy and Development Direction - The company is focused on proactive cycle management, targeting attractive underwriting opportunities while reducing exposure in less favorable areas [8][19] - Recent management appointments reflect a commitment to internal talent development and strategic alignment with company goals [5][6] - The company aims to maintain a disciplined underwriting approach, particularly in the casualty and property markets, while leveraging its AM Best rating upgrade to access new business opportunities [9][56] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance trajectory, citing a well-diversified platform and strong client relationships [15][16] - The company remains vigilant regarding loss reserves and expects continued favorable reserve development [14][15] - Despite some market pressures, management believes the underwriting environment remains attractive for disciplined organizations [16] Other Important Information - The company repurchased $35 million of shares in Q2 2025, with an additional $15 million repurchased in July [30] - Total assets increased by 14% to $8.9 billion, with total investments and cash rising by 11% to $5.3 billion [31] Q&A Session Summary Question: Can you provide more color around the reserve increases and the discontinued lines? - The reserve increase was modest, primarily related to discontinued lines from strategic transformation, specifically from 2020 and prior [34][36][39] Question: Can you talk about property pricing in the quarter? - Property pricing saw pressure in certain areas, but overall remains attractive, with a focus on mid-sized to smaller accounts [42][44][46] Question: Are you seeing MGA competition in your Select business? - The Hamilton Select business is performing well, with a healthy flow of business and no support for MGAs, maintaining in-house underwriting [49][50] Question: How should we think about tax rates going forward? - The current effective tax rate is in the low single digits, with a five-year deferral on the global minimum tax [80][81] Question: What drove the drop in interest expense? - The decrease in interest expense was due to lower SOFR rates and improved credit conditions leading to reduced margins on letters of credit [70][71]

Core Viewpoint - Hamilton Insurance reported quarterly earnings of $1.55 per share, significantly exceeding the Zacks Consensus Estimate of $1.01 per share, marking an earnings surprise of +53.47% [1] - The company also posted revenues of $740.77 million for the quarter, surpassing the Zacks Consensus Estimate by 25.20% [2] Financial Performance - The earnings of $1.55 per share represent an increase from $1.20 per share a year ago [1] - Over the last four quarters, Hamilton Insurance has surpassed consensus EPS estimates three times and topped revenue estimates two times [2] - The company has seen a year-to-date stock price increase of approximately 11.3%, outperforming the S&P 500's gain of 7.1% [3] Future Outlook - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates of $0.65 for the upcoming quarter and $3.23 for the current fiscal year [7] - The Zacks Rank for Hamilton Insurance is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] - The Insurance - Multi line industry is currently ranked in the top 39% of Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

[Q2 2025 Financial Highlights](index=1&type=section&id=Hamilton%20Reports%202025%20Second%20Quarter%20Results) [Consolidated Highlights – Second Quarter 2025](index=1&type=section&id=Consolidated%20Highlights%20%E2%80%93%20Second%20Quarter) Hamilton reported a strong second quarter with net income of $187.4 million, driven by robust underwriting performance, reflected in a combined ratio of 86.8%, and significant net investment income of $148.7 million. Gross premiums written grew by 18.0% year-over-year, and the company returned value to shareholders through $35.0 million in share repurchases Q2 2025 Key Financial Metrics | Metric | Value | Change vs Q2 2024 | | :--- | :--- | :--- | | Net Income | $187.4 million | +$56.3 million | | Diluted EPS | $1.79 | +$0.59 | | Gross Premiums Written | $712.0 million | +18.0% | | Net Premiums Earned | $511.2 million | +22.1% | | Combined Ratio | 86.8% | +2.4 pts | | Underwriting Income | $67.5 million | +$2.2 million | | Annualized ROAE | 30.2% | +6.6 pts | - Net investment income for the quarter was **$148.7 million**, with significant contributions from both the Two Sigma Hamilton Fund (**$87.1 million**) and the fixed income portfolio (**$61.6 million**)[5](index=5&type=chunk) - The company repurchased **$35.0 million** of its common shares during the second quarter of 2025[5](index=5&type=chunk) [Consolidated Highlights – Year-to-Date 2025](index=1&type=section&id=Consolidated%20Highlights%20%E2%80%93%20Year%20to%20Date) For the first six months of 2025, Hamilton's net income was $268.3 million. Performance was significantly impacted by $142.8 million in net California wildfire losses, which drove the combined ratio to 99.1%. Despite this, gross premiums written increased by 17.4% to $1.6 billion, and book value per share grew 11.3% from year-end 2024 YTD 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Net Income | $268.3 million | | Diluted EPS | $2.56 | | Gross Premiums Written | $1.6 billion | | Combined Ratio | 99.1% | | Underwriting Income | $9.2 million | | Annualized ROAE | 22.0% | - Underwriting results for the year-to-date period were heavily impacted by California wildfire losses of **$142.8 million**, net of reinsurance and reinstatement premiums[5](index=5&type=chunk) - Book value per share increased to **$25.55**, an **11.3%** increase compared to December 31, 2024[5](index=5&type=chunk) - Total share repurchases for the year reached **$45.3 million**[5](index=5&type=chunk) [Underwriting Results](index=3&type=section&id=Underwriting%20Results) [Consolidated Underwriting Results](index=3&type=section&id=Consolidated%20Underwriting%20Results) The company's consolidated underwriting results show strong premium growth in both Q2 and YTD. However, the YTD underwriting income of $9.2 million was significantly lower than the prior year, primarily due to $152.0 million in catastrophe losses from California wildfires and severe storms, which increased the combined ratio to 99.1% [Second Quarter 2025](index=3&type=section&id=Consolidated%20Results%20%E2%80%93%20Second%20Quarter) In Q2 2025, consolidated gross premiums written increased by 18.0% to $712.0 million, with growth in both the International and Bermuda segments. Underwriting income remained stable at $67.5 million, while the combined ratio increased slightly by 2.4 points to 86.8%, driven by a higher acquisition cost ratio and a change in business mix Q2 2025 Consolidated Underwriting Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Premiums Written | $712.0M | $603.3M | +18.0% | | Net Premiums Earned | $511.2M | $418.8M | +22.1% | | Underwriting Income | $67.5M | $65.3M | +3.3% | | Combined Ratio | 86.8% | 84.4% | +2.4 pts | - The attritional loss ratio increased by **1.4 points** to **53.0%**, primarily due to a change in business mix, including more casualty reinsurance business[6](index=6&type=chunk) - Net catastrophe losses for the quarter were minimal at **$1.5 million**, driven by severe convective storms but largely offset by favorable prior year development[6](index=6&type=chunk) [Year-to-Date 2025](index=7&type=section&id=Consolidated%20Underwriting%20Results%20%E2%80%93%20Year%20to%20Date) For the first half of 2025, consolidated gross premiums written grew 17.4% to $1.6 billion. However, underwriting income fell sharply to $9.2 million from $97.8 million in the prior year period. This was due to significant catastrophe losses of $152.0 million, primarily from California wildfires, which pushed the combined ratio up by 11.2 points to 99.1% YTD 2025 Consolidated Underwriting Performance | Metric | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Premiums Written | $1.56B | $1.33B | +17.4% | | Net Premiums Earned | $1.01B | $804.1M | +25.6% | | Underwriting Income | $9.2M | $97.8M | -90.6% | | Combined Ratio | 99.1% | 87.9% | +11.2 pts | - The year-to-date catastrophe loss ratio was **16.8%**, driven by California wildfires (**$159.7 million**) and severe convective storms (**$9.9 million**), partially offset by favorable prior year development[10](index=10&type=chunk) - The current year attritional loss ratio improved by **1.8 points** to **52.5%**, benefiting from a reduced impact of large losses compared to the 2024 period, which included the Baltimore Bridge collapse[10](index=10&type=chunk) [Segment Underwriting Results](index=5&type=section&id=Segment%20Underwriting%20Results) Both the International and Bermuda segments achieved double-digit growth in gross premiums written for Q2 and YTD. The International segment improved its combined ratio in Q2 to 89.3%. The Bermuda segment's YTD results were heavily impacted by California wildfire losses, resulting in an underwriting loss and a combined ratio of 103.6% [International Segment - Q2 2025](index=5&type=section&id=International%20Segment%20Underwriting%20Results%20%E2%80%93%20Second%20Quarter) The International Segment's gross premiums written grew 10.6% to $344.8 million in Q2 2025, driven by property, casualty, and specialty lines. Underwriting income increased to $27.1 million, and the combined ratio improved by 1.7 points to 89.3%, aided by a lower loss ratio International Segment Q2 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Premiums Written | $344.8M | $311.6M | +10.6% | | Underwriting Income | $27.1M | $19.4M | +39.6% | | Combined Ratio | 89.3% | 91.0% | -1.7 pts | - The loss and loss adjustment expense ratio decreased by **3.0 points**, driven by favorable prior year reserve development of **$7.7 million** in property, specialty, and casualty classes[8](index=8&type=chunk) [International Segment - YTD 2025](index=9&type=section&id=International%20Segment%20Underwriting%20Results%20%E2%80%93%20Year%20to%20Date) For the first half of 2025, the International Segment's gross premiums written increased by 13.0% to $714.8 million. Underwriting income was stable at $27.9 million, but the combined ratio slightly increased to 94.4% due to a 6.2 point impact from catastrophe losses, primarily from California wildfires International Segment YTD Performance | Metric | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Premiums Written | $714.8M | $632.5M | +13.0% | | Underwriting Income | $27.9M | $24.7M | +12.9% | | Combined Ratio | 94.4% | 94.0% | +0.4 pts | - Catastrophe losses, net of reinsurance, were **$30.2 million** for the period, driven by California wildfires and severe convective storms[12](index=12&type=chunk) [Bermuda Segment - Q2 2025](index=6&type=section&id=Bermuda%20Segment%20Underwriting%20Results%20%E2%80%93%20Second%20Quarter) The Bermuda Segment reported strong premium growth of 25.9% to $367.2 million in Q2 2025, led by casualty and property reinsurance. However, underwriting income decreased to $40.3 million from $45.9 million, and the combined ratio rose 6.9 points to 84.3%, primarily due to a higher attritional loss ratio from a business mix shift and a large specialty loss Bermuda Segment Q2 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Premiums Written | $367.2M | $291.7M | +25.9% | | Underwriting Income | $40.3M | $45.9M | -12.1% | | Combined Ratio | 84.3% | 77.4% | +6.9 pts | - The current year attritional loss ratio increased by **3.7 points** to **54.2%**, driven by a change in business mix towards casualty reinsurance and a large specialty reinsurance loss[9](index=9&type=chunk) [Bermuda Segment - YTD 2025](index=10&type=section&id=Bermuda%20Segment%20Underwriting%20Results%20%E2%80%93%20Year%20to%20Date) Year-to-date, the Bermuda Segment's gross premiums written grew 21.3% to $840.6 million. The segment recorded an underwriting loss of $18.7 million, a significant reversal from a $73.1 million gain in the prior year. This was caused by $121.9 million in catastrophe losses, mainly from the California wildfires, which drove the combined ratio up 22.3 points to 103.6% Bermuda Segment YTD Performance | Metric | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Premiums Written | $840.6M | $692.8M | +21.3% | | Underwriting Income (Loss) | $(18.7)M | $73.1M | N/A | | Combined Ratio | 103.6% | 81.3% | +22.3 pts | - Catastrophe losses for the period were **$121.9 million**, primarily driven by the California wildfires and severe convective storms[15](index=15&type=chunk) [Investments and Shareholders' Equity](index=10&type=section&id=Investments%20and%20Shareholders%27%20Equity%20as%20of%20June%2030%2C%202025) [Financial Position as of June 30, 2025](index=10&type=section&id=Investments%20and%20Shareholders%27%20Equity%20as%20of%20June%2030%2C%202025) As of June 30, 2025, Hamilton's financial position strengthened, with total invested assets and cash increasing to $5.3 billion. Total shareholders' equity grew to $2.6 billion, and book value per share rose by 11.3% to $25.55 since year-end 2024 Key Balance Sheet Items | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Invested Assets and Cash | $5.3 billion | $4.8 billion | | Total Shareholders' Equity | $2.6 billion | $2.3 billion | | Book Value Per Share | $25.55 | $22.95 | [Financial Statements](index=12&type=section&id=Financial%20Statements) [Consolidated Balance Sheet](index=12&type=section&id=Consolidated%20Balance%20Sheet) The consolidated balance sheet as of June 30, 2025, shows total assets of $8.91 billion, up from $7.80 billion at year-end 2024. This growth was driven by increases in total investments and premiums receivable. Total liabilities also increased to $6.29 billion, primarily due to higher reserves for losses and unearned premiums, while total shareholders' equity grew to $2.56 billion Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Investments | $4,459,380 | $3,814,353 | | Cash and cash equivalents | $985,649 | $996,493 | | **Total Assets** | **$8,913,050** | **$7,796,033** | | Reserve for losses | $3,984,281 | $3,532,491 | | Unearned premiums | $1,414,344 | $1,122,277 | | **Total Liabilities** | **$6,285,167** | **$5,467,196** | | **Total Shareholders' Equity** | **$2,558,591** | **$2,328,709** | [Consolidated Statement of Operations](index=14&type=section&id=Consolidated%20Statement%20of%20Operations) For the six months ended June 30, 2025, total revenues increased to $1.51 billion from $1.25 billion in the prior year, driven by higher net premiums earned and investment gains. However, a significant increase in losses and loss adjustment expenses to $665.2 million, largely due to catastrophes, led to a decrease in net income attributable to common shareholders to $268.3 million from $288.3 million year-over-year Statement of Operations Summary - Six Months Ended June 30 (in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Net Premiums Earned | $1,010,091 | $804,067 | | Total Revenues | $1,509,550 | $1,246,586 | | Losses and loss adjustment expenses | $665,163 | $446,846 | | Total Expenses | $1,054,615 | $765,783 | | Net Income (attributable to common shareholders) | $268,288 | $288,259 | [Non-GAAP Financial Measures Reconciliation](index=16&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) [Operating Income Reconciliation](index=16&type=section&id=Operating%20Income%20Reconciliation) The company provides a reconciliation of GAAP Net Income to non-GAAP Operating Income, which excludes net realized and unrealized gains/losses on certain investments and foreign exchange effects. For Q2 2025, Operating Income was $161.8 million compared to GAAP Net Income of $187.4 million. For YTD 2025, Operating Income was $211.2 million versus GAAP Net Income of $268.3 million Reconciliation of Net Income to Operating Income (in thousands) | Description | Q2 2025 | YTD 2025 | | :--- | :--- | :--- | | Net income attributable to common shareholders (GAAP) | $187,415 | $268,288 | | Adjustments for investment gains/losses & FX | $(25,612) | $(57,097) | | **Operating income attributable to common shareholders (Non-GAAP)** | **$161,803** | **$211,191** | - The company believes operating income is a meaningful measure for evaluating performance as it removes the volatility of investment market fluctuations and foreign exchange movements[26](index=26&type=chunk)[27](index=27&type=chunk) [Underwriting Income Reconciliation](index=19&type=section&id=Underwriting%20Income%20Reconciliation) Underwriting income, a non-GAAP measure, is reconciled to GAAP net income. It is calculated as net premiums earned less losses, acquisition costs, and other underwriting expenses. For Q2 2025, underwriting income was $67.5 million, and for YTD 2025, it was $9.2 million. This measure focuses on the core underwriting performance separate from investment and corporate activities - Underwriting income is defined as net premiums earned less losses and loss adjustment expenses, acquisition costs, and other underwriting expenses. It excludes investment results, corporate expenses, and taxes to focus on core underwriting profitability[30](index=30&type=chunk) Reconciliation of Underwriting Income to Net Income (in thousands) | Description | Q2 2025 | YTD 2025 | | :--- | :--- | :--- | | **Underwriting income (loss) (Non-GAAP)** | **$67,459** | **$9,199** | | Total net investment gains/income | $229,101 | $496,822 | | Corporate, interest, tax & other expenses | $(28,774) | $(56,968) | | **Net income (loss), prior to non-controlling interest (GAAP)** | **$267,786** | **$449,053** | [Other Non-GAAP Definitions](index=19&type=section&id=Other%20Non-GAAP%20Definitions) The report defines several key non-GAAP ratios used to measure performance. These include various loss ratios (attritional, catastrophe), the other underwriting expense ratio, and the combined ratio, which is a primary indicator of underwriting profitability - The **Combined Ratio** is the sum of the loss ratio, acquisition cost ratio, and other underwriting expense ratio. A ratio below **100%** indicates an underwriting profit[40](index=40&type=chunk) - **Loss Ratios** are broken down into four components: Attritional (current and prior year) and Catastrophe (current and prior year) to provide more detail on loss sources[38](index=38&type=chunk)[39](index=39&type=chunk) - **Other Underwriting Expenses** are general and administrative expenses directly attributable to underwriting operations, excluding corporate holding company costs[34](index=34&type=chunk)[35](index=35&type=chunk) [Forward-Looking Statements and Risk Factors](index=21&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) [Forward-Looking Statements and Risk Factors](index=21&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section contains standard safe harbor language, cautioning that forward-looking statements are not guarantees of future performance and are subject to numerous risks and uncertainties. It refers investors to the company's Form 10-K for a detailed discussion of risk factors, including unpredictable catastrophic events, competition, reserve adequacy, and macroeconomic conditions - The company cautions that statements about strategy, plans, and projections are forward-looking and subject to change, with no assurance that management's expectations will be achieved[41](index=41&type=chunk) - Key risks highlighted include: **unpredictable catastrophic events and climate change**, **competition**, **adequacy of loss reserves**, **cybersecurity threats**, and the **cyclical nature of the insurance business**[42](index=42&type=chunk) - Additional risks involve the **performance of the Two Sigma Hamilton Fund**, **regulatory changes**, **dependence on key executives**, and **potential tax implications**[46](index=46&type=chunk) [Corporate Information](index=11&type=section&id=Corporate%20Information) [Conference Call and Additional Information](index=11&type=section&id=Conference%20Call%20Details%20and%20Additional%20Information) Hamilton will host a conference call on August 7, 2025, at 9:00 a.m. Eastern Time to discuss the financial results. A live webcast and supplementary financial information will be available on the company's investor relations website - A conference call to discuss Q2 2025 financial results is scheduled for August 7, 2025, at 9:00 a.m. ET[16](index=16&type=chunk) - A live audio webcast and supplementary materials will be accessible through the investor portal on the company's website[17](index=17&type=chunk)[18](index=18&type=chunk)

Company Performance - Hamilton Insurance's stock decreased by 1.02% to $21.33, underperforming the S&P 500's slight gain of 0.02% on the same day [1] - Over the past month, Hamilton Insurance shares have increased by 0.51%, while the Finance sector and S&P 500 gained 4.24% and 4.93%, respectively [1] Earnings Forecast - The company is expected to announce earnings on August 6, 2025, with a forecasted EPS of $1.01, reflecting a 15.83% decline from the same quarter last year [2] - Quarterly revenue is projected to be $591.68 million, which is a 0.64% increase compared to the previous year [2] Full Year Projections - For the full year, earnings are estimated at $3.23 per share and revenue at $2.6 billion, indicating a decrease of 11.99% in earnings and an increase of 11.45% in revenue from the prior year [3] - Recent analyst estimate revisions suggest a favorable outlook on the company's business health and profitability [3] Valuation Metrics - Hamilton Insurance has a Forward P/E ratio of 6.67, which is lower than the industry average of 10.14, indicating that the company is trading at a discount compared to its peers [6] - The Insurance - Multi line industry is currently ranked 164 out of over 250 industries, placing it in the bottom 34% [6] Zacks Rank and Performance - The Zacks Rank system, which evaluates stocks based on estimate changes, currently ranks Hamilton Insurance at 3 (Hold) [5] - Over the past month, the Zacks Consensus EPS estimate has risen by 2.81% [5]

Core Viewpoint - Hamilton Insurance's stock performance has shown a positive change recently, but it has underperformed compared to the broader market and the finance sector over the past month [1][2]. Company Performance - The stock closed at $21.61, reflecting a +2.76% change from the previous day, outperforming the S&P 500's gain of 0.06% [1]. - Over the last month, Hamilton Insurance shares experienced a loss of 0.76%, while the Finance sector gained 4.07% and the S&P 500 gained 5.88% [2]. Earnings Forecast - The company is expected to release its earnings on August 6, 2025, with a forecasted EPS of $1.01, indicating a 15.83% decrease from the same quarter last year [3]. - Revenue is projected to be $591.68 million, which is a 0.64% increase from the prior-year quarter [3]. - For the full year, analysts expect earnings of $3.23 per share and revenue of $2.6 billion, reflecting changes of -11.99% and +11.45% respectively from last year [4]. Analyst Sentiment - Recent revisions to analyst forecasts for Hamilton Insurance are crucial as they reflect short-term business trends [5]. - Upward revisions in estimates indicate analysts' positive outlook on the company's operations and profit generation capabilities [5]. Stock Valuation - Hamilton Insurance is currently trading at a Forward P/E ratio of 6.51, which is lower than the industry average of 10.03, suggesting it is trading at a discount [8]. - The Insurance - Multi line industry is part of the Finance sector and has a Zacks Industry Rank of 161, placing it in the bottom 35% of over 250 industries [8].

Core Viewpoint - Hamilton Insurance is experiencing a mixed performance with a recent stock increase, but upcoming earnings are expected to show a decline in EPS and revenue compared to the previous year [1][2]. Group 1: Stock Performance - Hamilton Insurance's stock rose by 2.07% to $21.17, outperforming the S&P 500's gain of 0.32% [1]. - Over the past month, Hamilton Insurance shares have decreased by 0.53%, while the Finance sector and S&P 500 gained 3.04% and 4.51%, respectively [1]. Group 2: Earnings Expectations - The upcoming earnings report on August 6, 2025, is anticipated to show an EPS of $1.01, reflecting a 15.83% decline from the same quarter last year [2]. - Revenue is projected to be $578.72 million, down 1.57% from the prior-year quarter [2]. Group 3: Full Year Projections - For the full year, earnings are estimated at $3.23 per share, representing an 11.99% decrease, while revenue is projected at $2.6 billion, indicating an 11.45% increase from the previous year [3]. Group 4: Analyst Estimates - Recent changes in analyst estimates for Hamilton Insurance are crucial as they reflect the shifting dynamics of the business [4]. - Upbeat revisions in estimates suggest a favorable outlook on the company's health and profitability [4]. Group 5: Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Hamilton Insurance as 3 (Hold) [6]. - The Forward P/E ratio for Hamilton Insurance is 6.42, compared to the industry average of 9.86, indicating that the company is trading at a discount [7]. Group 6: Industry Context - The Insurance - Multi line industry is part of the Finance sector and holds a Zacks Industry Rank of 92, placing it in the top 38% of over 250 industries [7]. - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with higher-ranked industries outperforming lower-ranked ones [8].

Group 1 - Futu Holdings Limited (FUTU) has seen a 7.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Pan American Silver Corp. (PAAS) has experienced a 9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - RAPT Therapeutics, Inc. (RAPT) has seen a significant increase of 72.1% in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Hamilton Insurance Group, Ltd. (HG) has experienced an 18.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Invesco Ltd. (IVZ) has seen a 7.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Group 1 - Hamilton Insurance Group's shares have increased approximately 31% over the past year, nearing a 52-week high [1] - The company operates as a niche player in the Bermuda insurance market [1] - Hamilton has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories [1]