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]

Financial Performance - Gross premiums written increased from $571 million in 2018 to $2.4 billion in 2024, reflecting significant growth in the company's underwriting operations[22]. - For the year ended December 31, 2024, the company recorded $2.4 billion of gross premiums written, with a shift in the business mix from 32% insurance in 2018 to 53% insurance in 2024[34]. - The company generated $2.4 billion in gross premiums written for the year ended December 31, 2024, an increase from $1.95 billion in 2023[64]. - The International segment accounted for 54% of total gross premiums written in 2024, with $1.31 billion, while the Bermuda segment contributed 46% with $1.11 billion[68]. - The Bermuda segment accounted for 88% of gross premiums written for the year ended December 31, 2024, with total gross premiums written reaching $1,114,122,000, up from $845,516,000 in 2023[103]. - Property business represented 38% of gross premiums written in 2024, with property premiums increasing to $423,747,000 from $318,297,000 in 2023[106]. - Casualty business accounted for 47% of gross premiums written in 2024, with casualty premiums rising to $524,711,000 from $402,731,000 in 2023[108]. - Specialty business made up 15% of gross premiums written in 2024, with specialty premiums increasing to $165,664,000 from $124,488,000 in 2023[117]. Underwriting and Operational Efficiency - The combined ratio for the year ended December 31, 2024, was 91.3%, a reduction of 33.9 percentage points since 2018[39]. - The combined ratio has improved by 33.9 percentage points since 2018, reflecting the effectiveness of the disciplined underwriting approach[56]. - The company has consistently released reserves for loss occurrence every year since inception, reflecting a prudent reserving approach[26]. - The company expects to leverage its strong underwriting processes and analytics to capture attractive opportunities across all platforms in the U.S. E&S market[57]. - The Hamilton Select platform aims to grow in the hard-to-place niche of the U.S. E&S market, focusing on small to medium-sized risks[63]. Financial Strength and Ratings - The company has received strong financial strength ratings, including "A+" from A.M. Best and "AA-" from S&P Global, indicating robust financial health[26]. - Hamilton Re has been upgraded to an "A" rating by A.M. Best, positioning it to increase writings across various lines of business[53]. - The company maintains a low debt-to-capital ratio of 6.1%, providing financial flexibility for strategic execution[26]. - The company has a consolidated GAAP shareholders' equity of $2.3 billion and a financial leverage ratio of 6.1% as of December 31, 2024[46]. Investment Strategy - The investment-grade fixed income portfolio is complemented by the TS Hamilton Fund, allowing for optimized investment returns[44]. - The investment portfolio allocation as of December 31, 2024, is 50% in fixed income and short-term investments, 39% in the TS Hamilton Fund, and 11% in cash and cash equivalents[135]. - The fixed income portfolio is structured to focus on capital preservation and liquidity, managed by DWS Investment Management Americas, Inc. and Conning Asset Management Limited[136]. - The company plans to optimize its investment portfolio, benefiting from strong interest rates, to enhance shareholder value[62]. Technology and Innovation - The proprietary technology platforms, including Hamilton Analytics and Risk Platform, support business growth and competitive advantage[25]. - The company’s proprietary technology, including HARP, enhances risk management and decision-making capabilities[41]. - The proprietary technology platform HARP is used for catastrophe modeling and portfolio accumulation management, enhancing operational efficiency[144]. - The Timeflow system improves quote response time to brokers by digitizing the submission process, significantly reducing manual steps[151]. Client Relationships and Market Access - The company maintains long-standing relationships with clients and brokers, which are expected to provide increased access to attractive business opportunities[56]. - The company emphasizes its strong relationships with top insurance and reinsurance brokers, facilitating strategic expansion into additional lines of business[122]. - The company writes insurance business on a non-admitted basis through wholesale brokers, enhancing its market access[123]. - In 2024, the largest broker, Marsh McLennan, accounted for approximately 10% of the company's gross premiums written, while the second largest broker, Arthur J Gallagher, accounted for approximately 7%[125]. - The International segment's 10 largest brokers accounted for approximately 55% of gross premiums written in 2024[125]. - In the Bermuda segment, Marsh McLennan accounted for approximately 41% of gross premiums written, and Aon accounted for approximately 30%[126]. Regulatory Compliance and Governance - Hamilton Re is classified as a Class 4 insurer, required to maintain total statutory capital and surplus of not less than $100 million[159]. - The minimum solvency margin (MSM) for Class 4 insurers is the greater of $100 million, 50% of net premiums written, 15% of net aggregate loss provisions, or 25% of the enhanced capital requirement (ECR)[179]. - Hamilton Re must maintain a minimum liquidity ratio of at least 75% of its relevant liabilities[178]. - The enhanced capital requirement (ECR) is determined using the Bermuda Solvency Capital Requirement (BSCR) model, which assesses capital needs across 10 risk categories[181]. - Hamilton Re is required to submit annual audited financial statements within four months of the financial year-end[170]. - The company must file an annual statutory financial return, including calculations for the minimum solvency margin and liquidity ratio[171]. - The BMA requires all registered insurers to notify any changes in controllers or officers within 45 days of becoming aware of such changes[201]. - Non-compliance with the Insurance Act can result in fines of up to $25,000 for failing to notify the BMA of becoming a shareholder controller[200].

Investor Presentation Hamilton Insurance Group, Ltd. December 31, 2024 Special Note Regarding Forward-Looking Statements This information includes "forward looking statements" pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of terms such as "believes," "expects," "may," "will," "target," "should," "could," "would," "seeks," "intends," "plans," "contemplates," "estimates," or "anticipates," or similar ...

Core Viewpoint - Hamilton Insurance reported quarterly earnings of $0.32 per share, significantly missing the Zacks Consensus Estimate of $0.76 per share, and down from $1.15 per share a year ago, indicating a -57.89% earnings surprise [1][2] Financial Performance - The company posted revenues of $570.49 million for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.13%, but up from $495.16 million year-over-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 Performance - Hamilton Insurance shares have declined approximately 4.1% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The current Zacks Rank for Hamilton Insurance is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.07 on revenues of $575.38 million, and for the current fiscal year, it is $3.66 on revenues of $2.42 billion [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable, which may impact future stock performance [6] Industry Context - The Insurance - Multi line industry is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting that the outlook for the industry could materially affect stock performance [8]

Financial Performance - Net income for 2024 was $400 million, representing a 55% increase compared to 2023[2] - Net income attributable to common shareholders increased by $141.7 million, or 54.8%, to $400.4 million, resulting in a diluted income per share of $3.67, up from $2.44[16] - Basic income per share attributable to common shareholders was $3.81, compared to $2.47 in 2023, an increase of 54.3%[31] - Total revenues for the year were $2,329,924, a 48.3% increase from $1,571,045 in 2023[31] - Underwriting income for the year was $149,364, an increase of 15.0% from $129,851 in 2023[34] - Net investment income for the year was $63,267, compared to $30,456 in 2023, reflecting a growth of 107.5%[31] Premiums and Underwriting - Gross premiums written reached $2.4 billion, a 24.2% increase from the previous year[6] - Net premiums earned increased by 31.6% to $1.7 billion compared to 2023[6] - Gross premiums written for the year reached $2,422,582, a 24.1% increase compared to $1,951,038 in 2023[31] - Net premiums written rose by $440.7 million, or 29.8%, to $1.9 billion, driven by increases in both the International Segment ($199.2 million, or 25.9%) and the Bermuda Segment ($241.5 million, or 34.0%) [16] - The combined ratio for the year was 91.3%, indicating strong underwriting discipline despite significant large loss activity[3] - The combined ratio for the year was 91.3%, an increase of 1.2 percentage points from 90.1% in 2023[16] - The attritional loss ratio for the current year was 53.1%, reflecting an increase of 0.9 percentage points compared to the previous year, primarily due to losses from the Baltimore Bridge collapse[16] Assets and Equity - Total invested assets and cash increased to $4.8 billion from $4.0 billion at the end of 2023[22] - Total shareholders' equity rose to $2.3 billion, up from $2.0 billion at December 31, 2023[22] - Total assets increased to $7,796,033, up from $6,671,355, representing a growth of 16.8% year-over-year[29] - Cash and cash equivalents rose to $996,493, up from $794,509, representing a growth of 25.5%[29] Losses and Expenses - Losses and loss adjustment expenses for the year totaled $1,010,173, up from $714,603, indicating a rise of 41.3%[31] - Catastrophe losses for the year amounted to $49.1 million, primarily due to Hurricane Milton and Hurricane Helene[9] - Catastrophe losses totaled $87.6 million, primarily from Hurricane Helene ($52.6 million) and Hurricane Milton ($37.8 million)[17] - Corporate expenses totaled $61.1 million, including $9.2 million related to the Value Appreciation Pool[6] Risks and Strategic Considerations - The company faces various risks that could materially affect actual results, including competition, catastrophic events, and macroeconomic conditions[45] - The company emphasizes the importance of adequate reserves to cover actual losses and accurately evaluate underwriting risks[45] - There are significant uncertainties related to the company's ability to execute growth strategies and complete planned transactions[49] - The company does not plan to pay cash dividends on Class B common shares in the near term[49] - The cyclical nature of the insurance and reinsurance business may lead to fluctuations in pricing and terms for products[45] - The company is exposed to credit risks from intermediaries and must manage liquidity requirements effectively[45] - The company’s strategy includes managing alternative reinsurance platforms on behalf of investors[49] - The company is subject to regulatory risks that could impact its ability to operate effectively in the insurance industry[49] - The company acknowledges the potential impact of geopolitical events and global economic conditions on its operations[45]

Company Overview - Hamilton Insurance closed at $18.15, reflecting a -0.71% change from the previous session, underperforming compared to the S&P 500's loss of 0.43% [1] - The stock has decreased by 4.24% over the past month, contrasting with the Finance sector's gain of 3.13% and the S&P 500's gain of 2.6% [1] Upcoming Financial Results - Hamilton Insurance is set to announce its earnings on February 26, 2025, with an expected EPS of $0.76, representing a 33.91% decline from the same quarter last year [2] - The consensus estimate for revenue is $571.22 million, which is a 15.36% increase from the prior-year quarter [2] Analyst Forecasts - Recent revisions to analyst forecasts for Hamilton Insurance are important as they reflect near-term business trends, with positive revisions indicating optimism about the company's outlook [3] - The Zacks Rank system, which assesses these estimate changes, has shown a correlation with stock price performance [4] Zacks Rank and Valuation - Hamilton Insurance currently holds a Zacks Rank of 4 (Sell), with the consensus EPS projection decreasing by 0.81% in the past 30 days [5] - The company's Forward P/E ratio is 4.99, indicating a discount compared to the industry's average Forward P/E of 10.16 [6] Industry Context - The Insurance - Multi line industry is part of the Finance sector and holds a Zacks Industry Rank of 128, placing it in the top 50% of over 250 industries [6] - Research indicates that top-rated industries outperform lower-rated ones by a factor of 2 to 1 [7]

Company Performance - Hamilton Insurance's stock closed at $18.86, showing no change from the previous day, underperforming compared to the S&P 500's gain of 0.16% [1] - Over the past month, Hamilton Insurance shares experienced a loss of 1.77%, which is better than the Finance sector's loss of 4.27% and the S&P 500's loss of 2.7% [1] Upcoming Financial Results - The company is expected to report an EPS of $0.76, reflecting a decline of 33.91% from the same quarter last year [2] - Revenue is projected to be $571.22 million, indicating a 15.36% increase compared to the equivalent quarter last year [2] Analyst Estimates and Market Sentiment - Recent adjustments to analyst estimates for Hamilton Insurance are being monitored, as positive revisions indicate optimism regarding the company's business and profitability [3] - The Zacks Rank system, which evaluates these estimate changes, currently ranks Hamilton Insurance at 3 (Hold) [5] Valuation Metrics - Hamilton Insurance is trading at a Forward P/E ratio of 5.11, which is a discount compared to its industry's Forward P/E of 9.46 [6] - The Insurance - Multi line industry, part of the Finance sector, holds a Zacks Industry Rank of 44, placing it in the top 18% of over 250 industries [6]

Financial Data and Key Metrics Changes - The company reported its third quarter 2024 earnings, with a focus on the impact of recent natural catastrophes on financial performance [4]. Business Line Data and Key Metrics Changes - Specific details regarding changes in various business lines were not provided in the available content [4]. Market Data and Key Metrics Changes - The content does not include specific market data or key metrics changes [4]. Company Strategy and Development Direction and Industry Competition - The CEO expressed concern over the recent natural catastrophes affecting many lives, indicating a potential focus on corporate social responsibility and community support [4]. Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by natural disasters in the past quarter, which may influence future operational strategies and risk management [4]. Other Important Information - The call included a reminder about the availability of financial disclosures and forward-looking statements, emphasizing the importance of understanding risks and uncertainties [3]. Q&A Session Summary Question: Impact of natural catastrophes on financial performance - The management acknowledged the impact of recent natural catastrophes but did not provide specific financial metrics or projections related to this issue [4].

Financial Performance - Gross premiums written for Q3 2024 reached $553,401,000, a 16.7% increase from $474,123,000 in Q3 2023[16] - Net premiums earned for the nine months ended September 30, 2024, totaled $1,252,862,000, up 31.5% from $952,398,000 in the same period of 2023[16] - Total revenues for Q3 2024 were $512,844,000, representing a 29.3% increase compared to $396,266,000 in Q3 2023[16] - Net income for Q3 2024 was $61,035,000, a 15.4% increase from $52,648,000 in Q3 2023[16] - Basic income per share attributable to common shareholders for Q3 2024 was $0.77, compared to $0.42 in Q3 2023[16] - Total expenses for Q3 2024 were $448,780,000, an increase of 31.6% from $341,231,000 in Q3 2023[16] - Losses and loss adjustment expenses for Q3 2024 amounted to $273,632,000, up 42.9% from $191,577,000 in Q3 2023[16] - Net income for the nine months ended September 30, 2024, was $538,749 thousand, a significant increase from $146,938 thousand in the same period of 2023, representing a growth of 267%[20] - Net income attributable to common shareholders for the three months ended September 30, 2024, was $78.3 million, compared to $43.6 million for the same period in 2023[103][105] - Net income attributable to common shareholders for the nine months ended September 30, 2024, was $366,509, up from $131,862 in 2023, representing a significant increase of 177.5%[109] Assets and Liabilities - Total assets increased to $7,826,547 thousand as of September 30, 2024, compared to $6,671,355 thousand at December 31, 2023, reflecting a growth of approximately 17.3%[15] - Total liabilities rose to $5,452,861 thousand in 2024, compared to $4,623,372 thousand in 2023, indicating an increase of about 17.9%[15] - Shareholders' equity increased to $2,313,626 thousand in 2024 from $2,047,850 thousand in 2023, representing a growth of approximately 13.0%[15] - Cash and cash equivalents increased to $957,372 thousand in 2024, up from $794,509 thousand in 2023, representing a growth of approximately 20.6%[15] - Total fixed maturities and short-term investments amounted to $2,828,131 thousand as of September 30, 2024, with gross unrealized losses of $27,456 thousand[40] - Total cash and cash equivalents and restricted cash and cash equivalents increased to $1.1 billion as of September 30, 2024, up from $900.9 million at December 31, 2023[60] - The company's net unpaid losses and loss adjustment expenses at the end of the period were $2.24 billion as of September 30, 2024, compared to $1.79 billion at the end of September 30, 2023[89] Investments - Total investments rose to $3,760,918 thousand in 2024 from $3,111,616 thousand in 2023, marking an increase of about 20.8%[15] - The company reported a significant increase in investments in Two Sigma Funds, rising to $932,787 thousand in 2024 from $851,470 thousand in 2023, an increase of about 9.5%[15] - The company reported net realized and unrealized gains on investments of $65,558,000 for Q3 2024, compared to $55,412,000 in Q3 2023[16] - The total net realized and unrealized gains on investments and net investment income for the nine months ended September 30, 2024, was $498,518, compared to $119,600 for the same period in 2023[55] - The company reported net realized gains on investments for the three months ended September 30, 2024, were $93,711, compared to $42,403 for the same period in 2023[55] - The company reported a net realized loss on investments of $(382,646) thousand for the nine months ended September 30, 2024, compared to a loss of $(32,363) thousand in 2023[20] Premiums and Underwriting - Premiums receivable grew to $885,744 thousand in 2024, compared to $658,363 thousand in 2023, indicating an increase of around 34.5%[15] - For the three months ended September 30, 2024, gross premiums written totaled $553.4 million, an increase from $474.1 million for the same period in 2023[103][105] - Net premiums earned for the three months ended September 30, 2024, were $448.8 million, compared to $337.0 million for the same period in 2023[103][105] - Underwriting income for the three months ended September 30, 2024, was $29.1 million, up from $24.9 million for the same period in 2023[103][105] - The attritional loss ratio for the current year was 53.2% as of September 30, 2024, compared to 54.8% for the same period in 2023[103][105] - The combined ratio for the three months ended September 30, 2024, was 93.6%, an improvement from 92.6% for the same period in 2023[103][105] Risks and Challenges - The company faces risks related to macroeconomic conditions, including rising energy prices and inflation, which could impact future performance[9] - The company is dependent on key executives and may face challenges in attracting qualified personnel due to competitive hiring conditions[9] - The company remains exposed to market risks including interest rate risk, credit spread risk, equity price risk, and foreign currency risk, with no material changes reported[371] Shareholder Actions - The company completed its initial public offering (IPO) of Class B common shares on November 14, 2023, listed on the NYSE[22] - The company repurchased 9.1 million Class A common shares at $12.00 per share for a total of $109.5 million, which were subsequently canceled[128] - On August 7, 2024, the Board authorized a share repurchase program of up to $150 million, with $140 million remaining available for purchase as of September 30, 2024[129] - The company amended its unsecured credit agreement to provide up to $415 million in letter of credit capacity, with no loan amounts outstanding as of September 30, 2024[116] Compliance and Financial Covenants - The company maintained compliance with all financial covenants related to its $150 million term loan facility as of September 30, 2024[111] - As of September 30, 2024, all applicable entities were in compliance with financial and reporting covenants under the credit facilities[120]

Core Viewpoint - Hamilton Insurance reported quarterly earnings of $0.74 per share, exceeding the Zacks Consensus Estimate of $0.69 per share, and showing a significant increase from $0.41 per share a year ago, indicating strong performance in the insurance and reinsurance sector [1][2] Financial Performance - The company achieved revenues of $512.84 million for the quarter ended September 2024, which was slightly below the Zacks Consensus Estimate by 0.60%, but up from $396.27 million in the same quarter last year [2] - Over the last four quarters, Hamilton Insurance has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Hamilton Insurance shares have increased approximately 19.8% since the beginning of the year, while the S&P 500 has gained 21.2%, indicating a slight underperformance relative to the broader market [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.82 on revenues of $558.95 million, and for the current fiscal year, it is $4.12 on revenues of $2.32 billion [7] - The estimate revisions trend for Hamilton Insurance is currently unfavorable, resulting in a Zacks Rank 4 (Sell), suggesting expected underperformance 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, indicating a favorable industry outlook [8]