[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]

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, down from $127 million or $1.15 per diluted share in Q4 2023 [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%, 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] - Bermuda'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 the California wildfires ranging from $120 million to $150 million [8][10] - The company noted a favorable environment for casualty reinsurance, with improved pricing and opportunities arising from competitors exiting the market [82] Company Strategy and Development Direction - Hamilton focused on strategic growth, underwriting profitability, achieving ratings upgrades, and responsible capital stewardship [13][21] - The company plans to expand its marine offering and property insurance lines, leveraging its strong relationships and market position [30][32] - Hamilton aims to maintain a disciplined underwriting culture while exploring growth opportunities in specialty insurance [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging operating environment, citing strong client relationships and a well-diversified portfolio [29][36] - The company anticipates stable renewals in the reinsurance market, with potential rate increases for loss-affected accounts due to recent catastrophes [28][90] - Management remains optimistic about the growth prospects in both the International and Bermuda segments, supported by recent ratings upgrades [19][56] 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: Insights on the underlying loss ratio in the quarter - Management noted no large losses in the quarter and emphasized looking at the full year for a better indication of performance [74][75] Question: Details on casualty reserves and movements - Management indicated modest movements in reserves, with a small adverse development of $1 million in the Bermuda segment [77][78] Question: Interest in casualty business and pricing adequacy - Management highlighted a strategic shift towards casualty reinsurance since 2021, taking advantage of favorable market conditions [82][84] Question: Competitive environment in property insurance - Management acknowledged recent competition but maintained that rates remain attractive despite some decreases from all-time highs [88][90] Question: Updates on reserves related to the Ukraine conflict - Management confirmed confidence in the strength of reserves related to the Ukraine loss, with no significant changes [94][96] Question: Insights on Hamilton Select and pricing power - Management reported increased submissions and a favorable market environment in the small to midsize hard-to-place space [98][99] Question: Demand from primary insurers post-California wildfires - Management indicated that while no new demand has been seen yet, underwriting will be approached more cautiously moving forward [101] Question: Split of estimated losses from California wildfires - Management indicated that the losses are predominantly a reinsurance event for the company [106] Question: Clarification on investment portfolio performance - Management explained that the non-controlling interest reflects incentive fees related to strong performance in the Two Sigma fund [108] Question: Growth in net-to-gross ratio - Management noted that the growth in the net-to-gross position was a result of using IPO proceeds to retain more business, expecting it to remain flat in the near term [112][113] Question: Growth outlook for third-party fee income - Management clarified that fee income is driven by performance fees, which can vary based on catastrophe activity throughout the year [115]

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]