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]

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 ...