Group 1 - Hamilton Insurance closed at $21.39, marking a +2.3% move from the prior day, outperforming the S&P 500 which gained 0.38% [1] - The stock has risen by 2.45% in the past month, lagging behind the Finance sector's gain of 2.88% and the S&P 500's gain of 6.6% [1] Group 2 - The upcoming earnings release is forecasted to report an EPS of $0.92, indicating a 23.33% decrease from the same quarter last year, with quarterly revenue expected at $578.72 million, down 1.57% year-over-year [2] - For the entire fiscal year, earnings are predicted at $3.15 per share and revenue at $2.59 billion, reflecting changes of -14.17% and +10.96% respectively from the previous year [3] Group 3 - Recent modifications to analyst estimates for Hamilton Insurance indicate changing near-term business trends, with positive alterations suggesting analyst optimism regarding business and profitability [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows Hamilton Insurance currently holds a Zacks Rank of 2 (Buy) [6] Group 4 - Hamilton Insurance has a Forward P/E ratio of 6.64, which is lower than the industry average of 9.92, indicating it is trading at a discount [7] - The Insurance - Multi line industry is part of the Finance sector and currently holds a Zacks Industry Rank of 92, placing it in the top 38% of all industries [7]

[Part I. Financial Information](index=6&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The company's total assets grew to $8.34 billion, while net income declined to $80.9 million in Q1 2025 due to significant catastrophe losses Consolidated Balance Sheet Highlights (Unaudited) | ($ in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Investments** | $4,173,272 | $3,814,353 | | **Cash and cash equivalents** | $838,514 | $996,493 | | **Total Assets** | $8,342,831 | $7,796,033 | | **Reserve for losses and loss adjustment expenses** | $3,815,307 | $3,532,491 | | **Total Liabilities** | $5,904,338 | $5,467,196 | | **Total Shareholders' Equity** | $2,399,339 | $2,328,709 | Consolidated Statement of Operations Highlights (Unaudited) | ($ in thousands, except per share) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Gross premiums written** | $843,306 | $721,941 | | **Net premiums earned** | $498,928 | $385,303 | | **Total revenues** | $768,781 | $658,645 | | **Losses and loss adjustment expenses** | $395,234 | $232,352 | | **Net income (loss)** | $181,266 | $277,332 | | **Net income (loss) attributable to common shareholders** | $80,872 | $157,174 | | **Diluted income (loss) per share** | $0.77 | $1.38 | [Note 3. Investments](index=13&type=section&id=Note%203.%20Investments) Total investments increased to $4.17 billion, driven by an expanded allocation to Two Sigma Funds and a high-quality fixed income portfolio Fixed Maturity & Short-Term Investments (March 31, 2025) | ($ in thousands) | Amortized Cost | Fair Value | | :--- | :--- | :--- | | U.S. government treasuries | $624,694 | $621,480 | | Corporate | $1,200,219 | $1,204,434 | | Mortgage-backed securities | $401,462 | $389,557 | | **Total fixed maturities** | **$2,436,656** | **$2,425,986** | | **Short-term investments** | **$404,946** | **$406,207** | - Effective January 1, 2025, the company expanded its investment in Two Sigma Funds to include allocations to ATV, HTV, NTV, and KTV, in addition to the existing STV, ESTV, and FTV funds[52](index=52&type=chunk) Investment in Two Sigma Funds | ($ in thousands) | Fair Value (Mar 31, 2025) | Fair Value (Dec 31, 2024) | | :--- | :--- | :--- | | **Total** | **$1,341,079** | **$939,381** | - The company incurred management fees of **$12.4 million** and an incentive allocation of **$100.4 million** related to the TS Hamilton Fund for the three months ended March 31, 2025[54](index=54&type=chunk)[55](index=55&type=chunk) [Note 6. Reinsurance](index=24&type=section&id=Note%206.%20Reinsurance) The company manages risk with $1.33 billion in reinsurance recoverables, primarily from highly-rated partners, and a $200 million catastrophe bond - At March 31, 2025, total reinsurance recoverables on paid and unpaid losses amounted to **$1.327 billion** ($91.7M paid + $1,235.0M unpaid)[86](index=86&type=chunk) Credit Quality of Reinsurance Recoverable (March 31, 2025) | Classification | % of Total | | :--- | :--- | | Collateralized | 23.1% | | A- or better | 76.7% | | Below A- | 0.2% | - The company has a multi-year **$200 million** catastrophe bond via Easton Re for U.S. named storm and earthquake risks, with ceded premiums of **$15.2 million** in Q1 2025[92](index=92&type=chunk) [Note 7. Reserve for Losses and Loss Adjustment Expenses](index=26&type=section&id=Note%207.%20Reserve%20for%20Losses%20and%20Loss%20Adjustment%20Expenses) Gross loss reserves grew to $3.82 billion, with Q1 2025 showing favorable prior year development of $23.7 million - Net favorable prior year development was **$23.7 million** for Q1 2025, driven by favorable development on both attritional ($14.5M) and catastrophe ($9.2M) losses[94](index=94&type=chunk) - This compares to net unfavorable prior year development of **$12.1 million** in Q1 2024, primarily from attritional losses[95](index=95&type=chunk) Net Reserves for Major Events (as of March 31, 2025) | Event | Net Recorded Reserves ($ in millions) | | :--- | :--- | | California Wildfires | $91.2 | | Baltimore Bridge Collapse | $34.9 | | Ukraine Conflict | $59.8 | [Note 8. Segment Reporting](index=28&type=section&id=Note%208.%20Segment%20Reporting) The International segment remained profitable while the Bermuda segment incurred a significant underwriting loss due to catastrophe events Segment Performance - Q1 2025 vs Q1 2024 | ($ in thousands) | International (Q1 2025) | Bermuda (Q1 2025) | International (Q1 2024) | Bermuda (Q1 2024) | | :--- | :--- | :--- | :--- | :--- | | **Gross premiums written** | $369,959 | $473,347 | $320,841 | $401,100 | | **Net premiums earned** | $240,567 | $258,361 | $196,814 | $188,489 | | **Underwriting income (loss)** | $815 | $(59,074) | $5,315 | $27,207 | | **Combined ratio** | 99.7% | 122.8% | 97.2% | 85.5% | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Gross premiums grew 16.8%, but profitability was severely impacted by $159.7 million in catastrophe losses, resulting in an underwriting loss [Summary Results of Operations](index=41&type=section&id=Summary%20Results%20of%20Operations) The company reported a consolidated underwriting loss of $58.3 million, driven by a high loss ratio from catastrophe events Consolidated Key Ratios | Ratio | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Loss and loss adjustment expense ratio | 79.2% | 60.3% | | Acquisition cost ratio | 23.4% | 21.9% | | Other underwriting expense ratio | 9.0% | 9.3% | | **Combined ratio** | **111.6%** | **91.5%** | - Current year catastrophe losses from the California wildfires were **$159.7 million** in Q1 2025, compared to **$0** in Q1 2024[157](index=157&type=chunk)[159](index=159&type=chunk) - The current year attritional loss ratio improved to **51.9%** from 57.2%, benefiting from the absence of large non-catastrophe losses like the Baltimore Bridge collapse which impacted Q1 2024[157](index=157&type=chunk) - The TS Hamilton Fund generated income of **$204.0 million** before non-controlling interest, compared to $262.8 million in Q1 2024, producing a net return of **5.5%** after fees and incentive allocations[161](index=161&type=chunk)[163](index=163&type=chunk) [International Segment](index=46&type=section&id=International%20Segment) The segment's gross premiums grew 15.3%, but underwriting income was minimal due to $29.0 million in catastrophe losses International Segment Gross Premiums Written | ($ in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Property | $54,526 | $37,704 | | Casualty | $135,563 | $121,165 | | Specialty | $179,870 | $161,972 | | **Total** | **$369,959** | **$320,841** | - The combined ratio increased to **99.7%** from 97.2% in Q1 2024, with the loss ratio rising to **60.6%** from 59.0%, driven by a **12.1%** current year catastrophe loss ratio[172](index=172&type=chunk)[176](index=176&type=chunk) [Bermuda Segment](index=50&type=section&id=Bermuda%20Segment) Gross premiums grew 18.0%, but the segment suffered a $59.1 million underwriting loss due to $130.6 million in catastrophe losses Bermuda Segment Gross Premiums Written | ($ in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Property | $223,077 | $190,472 | | Casualty | $179,534 | $130,729 | | Specialty | $70,736 | $79,899 | | **Total** | **$473,347** | **$401,100** | - The combined ratio increased to **122.8%** from 85.5% in Q1 2024, with the loss ratio surging to **96.6%** from 61.6%, driven by a **50.6%** current year catastrophe loss ratio[185](index=185&type=chunk)[188](index=188&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=61&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) The company maintains a strong financial position with $5.1 billion in cash and investments and robust liquidity - Total cash and investments increased to **$5.09 billion** at March 31, 2025, from $4.92 billion at December 31, 2024[235](index=235&type=chunk) - The fixed income portfolio has an average credit quality of **Aa3** and an expected average duration of **3.4 years**[238](index=238&type=chunk)[239](index=239&type=chunk) - The company has a **$150 million** term loan maturing in June 2025 and total available letter of credit and revolving loan facilities of **$1.045 billion**, of which $714.8 million was in use[113](index=113&type=chunk)[272](index=272&type=chunk) - Under its **$150 million** share repurchase authorization, the company repurchased 0.5 million Class B shares for **$10.3 million** in Q1 2025, with **$111.7 million** remaining available for purchase[126](index=126&type=chunk)[264](index=264&type=chunk) [Financial Strength Ratings](index=71&type=section&id=Financial%20Strength%20Ratings) Key operating subsidiaries received upgraded financial strength ratings from A.M. Best to 'A' (Excellent) - On April 30, 2024, A.M. Best upgraded the Financial Strength Rating of Hamilton Re and HIDAC to **'A' (Excellent)** from 'A-' (Excellent)[276](index=276&type=chunk) - Hamilton Select's A.M. Best rating was affirmed at **'A-' (Excellent)**[275](index=275&type=chunk) - The Lloyd's syndicate benefits from the market's strong ratings, including **'A+'** from A.M. Best and **'AA-'** from S&P, KBRA, and Fitch[278](index=278&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=72&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's principal market risks remain materially unchanged from its 2024 year-end disclosures - There were no material changes to the market risks disclosed in the company's 2024 Form 10-K[285](index=285&type=chunk) [Controls and Procedures](index=72&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal controls over financial reporting were effective - Management concluded that disclosure controls and procedures were **effective** as of May 8, 2025[286](index=286&type=chunk) - There were **no changes** in internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[287](index=287&type=chunk) [Part II. Other Information](index=73&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=73&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings is incorporated by reference from the 2024 annual report - Details on legal proceedings are incorporated by reference from the 2024 Form 10-K[288](index=288&type=chunk) [Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors) Risk factors are incorporated by reference from the 2024 annual report - Risk factors are incorporated by reference from the 2024 Form 10-K[289](index=289&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 843,664 common shares in Q1 2025, with $111.7 million remaining under its authorization Share Repurchases for Q1 2025 | Month (2025) | Shares Purchased (Public Program) | Shares Purchased (Other) | Total Shares Purchased | | :--- | :--- | :--- | :--- | | January | 0 | 150,623 | 150,623 | | February | 0 | 104,680 | 104,680 | | March | 495,487 | 92,874 | 588,361 | | **Total** | **495,487** | **348,177** | **843,664** | - As of March 31, 2025, **$111.7 million** remained available for repurchase under the company's $150 million authorization[291](index=291&type=chunk) [Other Information](index=73&type=section&id=Item%205.%20Other%20Information) A Rule 10b5-1 trading plan for a company officer was terminated in March 2025 - On March 17, 2025, company officer Megan Graves terminated a Rule 10b5-1 trading plan that was established on December 13, 2024[295](index=295&type=chunk)

Financial Data and Key Metrics Changes - Hamilton Insurance Group reported a net income of $81 million for Q1 2025, representing a 13.7% annualized return on average equity, compared to $157 million and 29.5% in Q1 2024 [19][22] - The gross premiums written increased by 17% to $843 million from $722 million year-over-year [21][28] - The combined ratio rose to 111.6% from 91.5% in the prior year, primarily due to catastrophe losses [22][27] - The attritional loss ratio decreased by 5.3 points to 51.9% compared to the first quarter last year [23][28] Business Line Data and Key Metrics Changes - The Bermuda segment's gross premiums written grew by 18% to $473 million, driven by casualty and property classes [27] - The International segment's gross premiums written increased by 15% to $370 million, primarily due to growth in property, casualty, and specialty insurance classes [25][26] - The Bermuda segment reported an underwriting loss of $59 million, while the International segment had an underwriting income of $1 million [25][27] Market Data and Key Metrics Changes - The catastrophe loss ratio for the quarter was 30.2%, with net losses from California wildfires estimated at $143 million [5][22] - The company noted that the property cat business remains attractively priced with improved terms and conditions [9][15] Company Strategy and Development Direction - Hamilton is focusing on selective growth in the casualty line, leveraging its AM Best rating upgrade to capture new business opportunities [8][10] - The company aims to maintain a disciplined approach to underwriting, particularly in casualty, by building strong relationships with key clients [10][54] - Management expressed confidence in navigating economic uncertainties and maintaining double-digit growth in the top line [16][18] Management Comments on Operating Environment and Future Outlook - Management acknowledged ongoing economic and geopolitical uncertainties, including tariffs and potential recession impacts, but remains optimistic about the insurance market's resilience [16][18] - The company anticipates manageable exposure to loss cost inflation, particularly in property lines, and is prepared to adjust its strategies accordingly [17][18] Other Important Information - Total net investment income for Q1 was $167 million, up from $148 million in the same quarter last year [28][29] - The company repurchased $10 million of shares during the quarter, with $112 million remaining under its share repurchase authorization [30][31] Q&A Session Summary Question: Insights on casualty line of business and loss trend assumptions - Management noted strong client response to the AM Best upgrade, with casualty premium growth of $40 million in Q1, indicating low to mid-teens loss trends [37][38] Question: Clarification on combined ratio and attritional loss ratio movements - Management explained that current year attritional loss picks align with expectations, influenced by the mix of business, and advised looking at full-year 2024 loss ratios for guidance [40][42] Question: Impact of business mix on expense ratio - Management indicated that the increase in acquisition expenses was due to a shift in business mix and profit commissions, while other underwriting expenses are expected to decline as the book scales [48][50] Question: Clarification on Two Sigma returns - Management confirmed that the Two Sigma return of 7.9% was year-to-date through April, with a 5.5% return reported through March [56][70] Question: Buyback strategy and growth outlook - Management stated that there are no constraints on growth or buybacks, emphasizing sufficient capital for both initiatives [60][61]

Financial Data and Key Metrics Changes - Hamilton Insurance Group reported a net income of $81 million for Q1 2025, representing a 13.7% annualized return on average equity, compared to $157 million and 29.5% in Q1 2024 [19][22] - The gross premiums written increased by 17% to $843 million from $722 million year-over-year [21][22] - The combined ratio rose to 111.6% from 91.5% in the prior year, primarily due to catastrophe losses [22] - The attritional loss ratio decreased by 5.3 points to 51.9% compared to the first quarter last year [23] Business Line Data and Key Metrics Changes - The Bermuda segment's gross premiums written grew by 18% to $473 million, driven by casualty and property classes [26] - The International segment's gross premiums written increased by 15% to $370 million, primarily due to growth in property, casualty, and specialty insurance classes [25] - The Bermuda segment reported an underwriting loss of $59 million, while the International segment had an underwriting income of $1 million [25][27] Market Data and Key Metrics Changes - The catastrophe loss ratio for the quarter was 30.2%, with net losses from California wildfires estimated at $143 million [4][22] - The company noted that the property cat business remains attractively priced with improved terms and conditions [8][14] Company Strategy and Development Direction - Hamilton is focusing on selective growth in the casualty line, leveraging its AM Best rating upgrade to capture new business opportunities [7][38] - The company is maintaining a disciplined approach to underwriting, emphasizing strong relationships with key clients [9][52] - Hamilton is monitoring pricing trends closely and is prepared to adjust its underwriting appetite as needed [14] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic and geopolitical uncertainties, including potential recession impacts [16][17] - The company anticipates continued double-digit growth in its top line, supported by stable attritional loss ratios and a strong balance sheet [17][31] Other Important Information - Total net investment income for Q1 was $167 million, up from $148 million in the prior year [28] - The company repurchased $10 million of shares during the quarter, with $112 million remaining under its share repurchase authorization [30][60] Q&A Session Summary Question: Insights on casualty line of business and loss trend assumptions - Management noted a favorable market environment with low to mid-teens loss trends for casualty lines, emphasizing selective client partnerships [38] Question: Clarification on combined ratio movements - Management indicated that current year attritional loss picks align with expectations, influenced by the mix of business written [41] Question: Impact of business mix on expense ratio - The increase in acquisition expenses was attributed to a shift in business mix and higher profit commissions [47] Question: Confidence in casualty business quality - Management highlighted a selective approach to casualty growth, focusing on clients with strong underwriting cultures [52] Question: Clarification on Two Sigma returns - The reported return of 7.9% was a year-to-date figure through April [55]

Company Performance - Hamilton Insurance reported quarterly earnings of $0.47 per share, significantly exceeding the Zacks Consensus Estimate of $0.04 per share, but down from $1.38 per share a year ago, representing an earnings surprise of 1,075% [1] - The company posted revenues of $768.78 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 31.08%, compared to $658.65 million in the same quarter last year [2] - Over the last four quarters, Hamilton Insurance has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Outlook - The immediate price movement of Hamilton Insurance's stock will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.01 on revenues of $617.28 million, and for the current fiscal year, it is $2.66 on revenues of $2.48 billion [7] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Industry Context - The Insurance - Multi line industry, to which Hamilton Insurance belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Q1 2025 Financial Results](index=1&type=section&id=Q1%202025%20Financial%20Results) [Consolidated Highlights – First Quarter](index=1&type=section&id=Consolidated%20Highlights%20%E2%80%93%20First%20Quarter) Hamilton reported $80.9 million net income and 13.7% ROAE, despite significant wildfire losses leading to a 111.6% combined ratio - Achieved net income of **$81 million** despite industry insured catastrophe losses being well above the historical average[2](index=2&type=chunk) Q1 2025 Key Financial Metrics | Metric | Value | Change vs Q1 2024 | | :--- | :--- | :--- | | Net Income | $80.9 million | - | | Operating Income | $49.4 million | - | | Gross Premiums Written | $843.3 million | +16.8% | | Net Premiums Earned | $498.9 million | +29.5% | | Combined Ratio | 111.6% | - | | Underwriting Loss | $58.3 million | - | | Annualized ROAE | 13.7% | - | | Book Value Per Share | $23.59 | +2.8% vs Dec 31, 2024 | - The company repurchased **$10.3 million** of its common shares in the first quarter of 2025[3](index=3&type=chunk) [Consolidated Financial Results Analysis](index=2&type=section&id=Consolidated%20Financial%20Results%20Analysis) Q1 2025 consolidated results show a profitability decline due to a $58.3 million underwriting loss from $150.5 million wildfire losses, despite premium growth Consolidated Results Comparison (Q1 2025 vs Q1 2024) | ($ in millions, except ratios) | March 31, 2025 | March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gross premiums written | $843.3 million | $721.9 million | $121.4 million | | Net premiums earned | $498.9 million | $385.3 million | $113.6 million | | Underwriting income (loss) | $(58.3) million | $32.5 million | $(90.8) million | | Net income | $80.9 million | $157.2 million | $(76.3) million | | Combined ratio | 111.6% | 91.5% | 20.1 pts | - Catastrophe losses, net of reinsurance, were **$150.5 million**, driven by the California wildfires (**$159.7 million**), partially offset by favorable prior year development[4](index=4&type=chunk) - The current year attritional loss ratio improved by **5.3 points** to **51.9%**, mainly due to the absence of large losses comparable to the Francis Scott Key Baltimore Bridge collapse in Q1 2024[4](index=4&type=chunk) - Gross premiums written increased by **16.8%**, with growth of **15.3%** in the International Segment and **18.0%** in the Bermuda Segment[4](index=4&type=chunk) [Segment Performance](index=4&type=section&id=Segment%20Performance) [International Segment](index=4&type=section&id=International%20Segment) International Segment gross premiums grew 15.3% to $370.0 million, but underwriting income fell to $0.8 million due to $29.0 million wildfire losses International Segment Results (Q1 2025 vs Q1 2024) | ($ in millions, except ratios) | March 31, 2025 | March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gross premiums written | $370.0 million | $320.8 million | $49.1 million | | Underwriting income (loss) | $0.8 million | $5.3 million | $(4.5) million | | Combined ratio | 99.7% | 97.2% | 2.5 pts | - The current year attritional loss ratio improved by **3.9 points** to **52.1%**, mainly due to the absence of large losses compared to Q1 2024, which was impacted by the Baltimore Bridge collapse[5](index=5&type=chunk) - The segment incurred **$29.0 million** in catastrophe losses from the California wildfires[5](index=5&type=chunk) [Bermuda Segment](index=5&type=section&id=Bermuda%20Segment) Bermuda Segment gross premiums grew 18.0% to $473.3 million, but incurred a **$59.1 million** underwriting loss due to **$121.4 million** wildfire losses Bermuda Segment Results (Q1 2025 vs Q1 2024) | ($ in millions, except ratios) | March 31, 2025 | March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gross premiums written | $473.3 million | $401.1 million | $72.2 million | | Underwriting income (loss) | $(59.1) million | $27.2 million | $(86.3) million | | Combined ratio | 122.8% | 85.5% | 37.3 pts | - Gross premiums written growth was driven by new and existing business in casualty and property reinsurance classes, including non-recurring reinstatement premiums from the wildfires[8](index=8&type=chunk) - Catastrophe losses were **$121.4 million**, primarily driven by the California wildfires[8](index=8&type=chunk) [Financial Position and Statements](index=5&type=section&id=Financial%20Position%20and%20Statements) [Investments and Shareholders' Equity](index=5&type=section&id=Investments%20and%20Shareholders'%20Equity) As of March 31, 2025, total invested assets and cash increased to **$5.0 billion**, with shareholders' equity reaching **$2.4 billion** Key Balance Sheet Items (as of March 31, 2025) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total invested assets and cash | $5.0 billion | $4.8 billion | | Total shareholders' equity | $2.4 billion | $2.3 billion | | Book value per share | $23.59 | $22.95 | [Consolidated Balance Sheet](index=7&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2025, total assets grew to **$8.34 billion**, driven by investments, while total liabilities and shareholders' equity also increased Balance Sheet Summary | ($ in billions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total investments | $4.17 billion | $3.81 billion | | Total assets | $8.34 billion | $7.80 billion | | Total liabilities | $5.90 billion | $5.47 billion | | Total shareholders' equity | $2.40 billion | $2.33 billion | [Consolidated Statement of Operations](index=9&type=section&id=Consolidated%20Statement%20of%20Operations) Q1 2025 net premiums earned grew 29.5% to **$498.9 million**, but increased losses led to net income decreasing to **$80.9 million** Statement of Operations Summary | ($ in millions, except per share) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net premiums earned | $498.9 million | $385.3 million | | Total revenues | $768.8 million | $658.6 million | | Losses and loss adjustment expenses | $395.2 million | $232.4 million | | Net income attributable to common shareholders | $80.9 million | $157.2 million | | Diluted income per share | $0.77 | $1.38 | [Non-GAAP Financial Measures](index=11&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of Operating Income](index=11&type=section&id=Reconciliation%20of%20Operating%20Income) Operating income, a non-GAAP measure, decreased to **$49.4 million** in Q1 2025, reflecting adjustments for investment gains/losses and foreign exchange - Operating income is a non-GAAP measure that excludes net realized and unrealized gains/losses on fixed maturity and short-term investments, and net foreign exchange gains/losses from GAAP net income[19](index=19&type=chunk) Reconciliation of Net Income to Operating Income | ($ in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income attributable to common shareholders | $80.9 million | $157.2 million | | Adjustments (Investments & FX) | $(31.5) million | $18.1 million | | **Operating income attributable to common shareholders** | **$49.4 million** | **$175.2 million** | [Reconciliation of Underwriting Income (Loss)](index=14&type=section&id=Reconciliation%20of%20Underwriting%20Income%20(Loss)) Underwriting income (loss), a non-GAAP measure, shifted to a **$58.3 million** loss in Q1 2025, reflecting core insurance segment performance - Underwriting income (loss) is calculated on a pre-tax basis as net premiums earned less losses, acquisition costs, and other underwriting expenses to focus on the core performance of the reportable segments[24](index=24&type=chunk) Underwriting Income (Loss) Reconciliation to Net Income | ($ in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Underwriting income (loss)** | **$(58.3) million** | **$32.5 million** | | Total net investment results | $267.7 million | $268.0 million | | Corporate, interest & other expenses | $(25.1) million | $(23.1) million | | Income tax (expense) benefit | $(3.2) million | $(0.6) million | | Net income (loss), prior to non-controlling interest | $181.3 million | $277.3 million | [Other Non-GAAP Definitions](index=14&type=section&id=Other%20Non-GAAP%20Definitions) This section defines non-GAAP metrics like 'Other Underwriting Expenses,' 'Third Party Fee Income,' and the 'Combined Ratio' for performance clarity - Third Party Fee Income is primarily comprised of management services fees from the International Segment and performance-based fees from the Bermuda Segment[26](index=26&type=chunk) - Other Underwriting Expenses are general and administrative expenses directly attributable to underwriting operations, excluding holding company costs[28](index=28&type=chunk)[29](index=29&type=chunk) - The Combined Ratio is the sum of the loss ratio, acquisition cost ratio, and other underwriting expense ratio, serving as a key measure of underwriting profitability[34](index=34&type=chunk) [Additional Information and Disclosures](index=6&type=section&id=Additional%20Information%20and%20Disclosures) [Conference Call Information](index=6&type=section&id=Conference%20Call%20Information) A conference call and webcast are scheduled for May 8, 2025, at 9:00 a.m. ET to discuss Q1 financial results - A conference call to discuss financial results is scheduled for Thursday, May 8, 2025, at 9:00 a.m. Eastern Time[9](index=9&type=chunk) - A live audio webcast and supplementary financial information will be accessible through the Investors portal on the company's website[10](index=10&type=chunk)[11](index=11&type=chunk) [Forward-Looking Statements & Risk Factors](index=16&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) Forward-looking statements are subject to risks including catastrophic events, climate change, competition, and investment portfolio performance - Forward-looking statements are subject to risks and uncertainties and are not guarantees of future performance[35](index=35&type=chunk) - Key risk factors include unpredictable catastrophic events, global climate change, and emerging claim/coverage issues[36](index=36&type=chunk) - The company faces risks related to its investment strategy, including its inability to control allocations to or performance of the Two Sigma Hamilton Fund[40](index=40&type=chunk) - Other cited risks include the cyclical nature of the insurance business, competition, cybersecurity threats, and regulatory changes[36](index=36&type=chunk)

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Hamilton Insurance due to lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Hamilton Insurance is expected to report earnings of $0.04 per share, reflecting a significant year-over-year decrease of 97.1% [3]. - Revenue projections stand at $586.52 million, indicating an 11% decline from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.98% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with positive readings being more predictive [6][7]. - Hamilton Insurance's current Zacks Rank is 3, making it challenging to predict an earnings beat [11]. Historical Performance - In the last reported quarter, Hamilton Insurance had an expected EPS of $0.76 but delivered only $0.32, resulting in a surprise of -57.89% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Industry Comparison - Another player in the insurance sector, Lemonade, is expected to report a loss of $0.94 per share, a year-over-year change of -40.3%, with revenues projected at $143.93 million, up 20.9% [17]. - Lemonade has an Earnings ESP of 3.40% and a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [18].

Group 1 - Hamilton Insurance's stock closed at $17.46, reflecting a -1.24% change from the previous day, underperforming the S&P 500's gain of 1.81% [1] - Over the past month, Hamilton Insurance shares have decreased by 12.56%, compared to a 4.82% loss in the Finance sector and a 6.14% loss in the S&P 500 [1] Group 2 - The upcoming earnings release on May 7, 2025, is projected to show an EPS of $0.04, a significant drop of 97.1% year-over-year, with revenue expected at $583.66 million, down 11.39% from the same quarter last year [2] - For the entire year, the Zacks Consensus Estimates forecast earnings of $2.66 per share and revenue of $2.45 billion, indicating a -27.52% change in earnings and a +5.37% change in revenue compared to the previous year [3] Group 3 - Recent changes in analyst estimates for Hamilton Insurance suggest a shifting business landscape, with upward revisions indicating positive sentiment towards the company's operations [4] - The Zacks Rank system, which evaluates estimate changes, currently ranks Hamilton Insurance at 3 (Hold), with a 27.32% decrease in the consensus EPS estimate over the past month [5][6] Group 4 - Hamilton Insurance has a Forward P/E ratio of 6.65, which is lower than the industry average of 9.41, indicating a valuation discount [7] - The Insurance - Multi line industry, part of the Finance sector, holds a Zacks Industry Rank of 48, placing it in the top 20% of over 250 industries [7][8]

Group 1 - Hamilton Insurance's stock closed at $21.17, reflecting a +0.67% change, outperforming the S&P 500's loss of 0.22% [1] - The stock has increased by 15.04% over the past month, contrasting with the Finance sector's decline of 3.33% and the S&P 500's decline of 7.48% [1] Group 2 - Upcoming financial results are expected to show an EPS of $0.05, a significant decrease of 96.38% year-over-year, with revenue anticipated at $583.66 million, down 11.39% from the previous year [2] - For the annual period, earnings are projected at $2.64 per share, representing a decline of 28.07%, while revenue is expected to rise by 5.37% to $2.45 billion [3] Group 3 - Recent analyst estimate revisions indicate a downward shift of 27.87% in the Zacks Consensus EPS estimate, leading to a Zacks Rank of 5 (Strong Sell) for Hamilton Insurance [6] - The Zacks Rank system has a historical average annual return of +25% for 1 rated stocks since 1988, highlighting the importance of estimate changes in stock performance [6][5] Group 4 - Hamilton Insurance has a Forward P/E ratio of 7.97, which is lower than the industry average of 10.34, indicating a valuation discount [7] - The Insurance - Multi line industry is currently ranked 58 in the Zacks Industry Rank, placing it in the top 24% of over 250 industries [7][8]

Financial Data and Key Metrics Changes - Hamilton reported a record net income of $400 million for 2024, up 55% from the previous year, with a return on average equity of 18.3% compared to 13.9% in 2023 [37] - The company achieved gross premiums written of over $2.4 billion, a 24% increase from 2023, and a combined ratio of 91.3% [11][12] - For Q4 2024, net income was $34 million, or $0.32 per diluted share, with an annualized return on average equity of 5.8% [39] Business Line Data and Key Metrics Changes - The International segment wrote $1.3 billion in gross premiums, with a combined ratio of 95.6% for 2024, while the Bermuda segment wrote $1.1 billion with a combined ratio of 87% [15][17] - Hamilton Global Specialty wrote $1.2 billion in gross premiums, and Hamilton Select wrote $117 million, reflecting strong growth in the U.S. E&S market [16] - The Bermuda segment's underwriting income was $110 million, up from $93 million in 2023, despite increased catastrophe losses [57] Market Data and Key Metrics Changes - The insurance industry faced approximately $140 billion in insured catastrophe losses in 2024, with Hamilton's estimated losses from recent wildfires ranging from $120 million to $150 million [8][10] - The company noted a favorable environment for growth in both casualty and property insurance classes, particularly in the specialty reinsurance market [50][51] Company Strategy and Development Direction - Hamilton's strategy focuses on strategic growth, maintaining underwriting profitability, achieving ratings upgrades, and responsible capital stewardship [13][21] - The company aims to expand its marine offering and property insurance lines, leveraging its strong relationships and market position [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current market environment, highlighting strong client relationships and a well-diversified portfolio [24][29] - The company anticipates increased demand for reinsurance in the wake of recent natural disasters, particularly for midyear renewals [28][90] Other Important Information - Hamilton repurchased 10.6 million shares at a total cost of $138 million during 2024, enhancing shareholder value [22][68] - The company reported total assets of $7.8 billion at year-end 2024, a 17% increase from the previous year [70] Q&A Session Summary Question: What was the underlying loss ratio in the quarter? - Management noted that there were no large losses in the quarter, and the attritional loss ratio for the full year is a better indicator of future performance [74][75] Question: Can you provide details on casualty reserves? - Management indicated that there were modest movements in reserves, with a small adverse development of about $1 million in the Bermuda segment [77][78] Question: What is the outlook for casualty business? - Management sees this as an opportunistic time for Hamilton, especially as some competitors have backed out of the casualty reinsurance space [82][84] Question: How is the competitive environment for property insurance? - Management noted that while there has been some recent competition, rates remain attractive, and they expect to see increases for loss-impacted accounts during midyear renewals [88][90] Question: Any updates on reserves related to the Ukraine loss? - Management confirmed that the reserve for the Ukraine loss remains strong, with $80 million net to Hamilton, primarily related to reinsurance [94][96] Question: What is the pricing power in Hamilton Select? - Management stated that the U.S. E&S market remains attractive, with increased submissions and favorable market conditions for small to midsize hard-to-place risks [98][99] Question: How will the recent California wildfires impact demand for reinsurance? - Management indicated that while they have not yet seen increased demand, they expect insurers to underwrite exposure more carefully moving forward [101][102]