The latest trading session saw Hamilton Insurance (HG) ending at $16.75, denoting a -0.77% adjustment from its last day's close. This change lagged the S&P 500's 0.71% loss on the day. Elsewhere, the Dow saw a downswing of 0.93%, while the tech-heavy Nasdaq depreciated by 0.81%. The the stock of provider of insurance and reinsurance services has risen by 5.24% in the past month, leading the Finance sector's loss of 2.01% and the S&P 500's gain of 1.08%. For the annual period, the Zacks Consensus Estimates a ...

Hamilton Insurance (HG) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company. Analysts' growing optimism on the earnings prospects of this provider of insurance and reinsurance services is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation betwee ...

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.92 per share and a revenue of $2.22 billion, indicating changes of +60.66% and +41.53%, respectively, from the former year. From a valuation perspective, Hamilton Insurance is currently exchanging hands at a Forward P/E ratio of 4.18. For comparison, its industry has an average Forward P/E of 9.38, which means Hamilton Insurance is trading at a discount to the group. The the stock of provider of insurance and reinsuranc ...

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Hamilton Insurance (HG) . Of the six recommendations that derive the current ABR, five are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 83.3% and 16.7% of all recommendations. Check price target & stock forecast for Hamilton Insurance here>>> Are you wondering why? The vested interest of brokerage firms in a stock they cover ...

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Hamilton Insurance (HG) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question. Hamilton Insurance is one of 854 individual stocks in the Finance sector. Collectively, these companies sit at #11 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 d ...

Hamilton Insurance (HG) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this provider of insurance and reinsurance services, should get reflected in its stock price. After all, empirical research shows a s ...

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate rev ...

Part I. Financial Information [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements and detailed notes on the company's financial position and performance [Unaudited Condensed Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Table: Unaudited Condensed Consolidated Balance Sheets | Metric | March 31, 2024 ($ in thousands) | December 31, 2023 ($ in thousands) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Total Assets | 7,349,025 | 6,671,355 | | Total Liabilities | 5,084,793 | 4,623,372 | | Total Shareholders' Equity | 2,209,505 | 2,047,850 | | Investments in Two Sigma Funds | 953,659 | 851,470 | | Cash and cash equivalents | 1,085,038 | 794,509 | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) Table: Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | Metric | Three Months Ended March 31, 2024 ($ in thousands) | Three Months Ended March 31, 2023 ($ in thousands) | | :------------------------------------------------- | :------------------------------------------------- | :------------------------------------------------- | | Total Revenues | 658,645 | 322,381 | | Net Premiums Earned | 385,303 | 283,902 | | Net Realized and Unrealized Gains (Losses) on Investments | 255,371 | 35,133 | | Net Income (Loss) | 277,332 | 53,002 | | Diluted Income (Loss) Per Share | 1.38 | 0.49 | [Unaudited Condensed Consolidated Statements of Shareholders' Equity](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Table: Unaudited Condensed Consolidated Statements of Shareholders' Equity | Metric | March 31, 2024 ($ in thousands) | March 31, 2023 ($ in thousands) | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Total Shareholders' Equity | 2,209,505 | 1,716,440 | | Net Income (Loss) | 277,332 | 53,002 | | Share Compensation Expense | 7,293 | 2,373 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Table: Unaudited Condensed Consolidated Statements of Cash Flows | Activity | Three Months Ended March 31, 2024 ($ in thousands) | Three Months Ended March 31, 2023 ($ in thousands) | | :----------------------------------------- | :------------------------------------------------- | :------------------------------------------------- | | Net cash provided by (used in) operating activities | 158,200 | 12,086 | | Net cash provided by (used in) investing activities | 194,127 | (132,129) | | Net cash provided by (used in) financing activities | (68,376) | (3,117) | | Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | 279,743 | (122,388) | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Note 1. Organization](index=12&type=section&id=Note%201.%20Organization) - Hamilton Insurance Group, Ltd. (Hamilton Group) was incorporated in Bermuda in 2013 and completed an initial public offering (IPO) of its Class B common shares on November 14, 2023, generating net proceeds of **$80.6 million**[30](index=30&type=chunk) - The company operates globally through key subsidiaries including Hamilton Re (Bermuda), Hamilton Managing Agency Limited (London), Hamilton Insurance Designated Activity Company (Dublin), Hamilton Managing General Agency Americas LLC (US), and Hamilton Select Insurance Inc. (US E&S carrier)[31](index=31&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - Hamilton Re has a significant investment commitment in Two Sigma Hamilton Fund, LLC (TS Hamilton Fund), an amount up to the lesser of **$1.8 billion** or **60% of Hamilton Group's net tangible assets**[38](index=38&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=13&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP and Article 10 of Regulation S-X, reflecting all necessary adjustments for fair presentation[43](index=43&type=chunk) - There have been no material changes to the company's significant accounting policies as described in its Annual Report on Form 10-K for 2023[42](index=42&type=chunk) - Recently issued accounting pronouncements, ASU 2023-07 (Segment Reporting) and ASU 2023-09 (Income Taxes), are not expected to have a material impact on the company's financial position or results[46](index=46&type=chunk)[47](index=47&type=chunk) [Note 3. Investments](index=14&type=section&id=Note%203.%20Investments) Table: Investments by Type | Investment Type | Fair Value (Mar 31, 2024, $ in thousands) | Fair Value (Dec 31, 2023, $ in thousands) | | :--------------------------------- | :---------------------------------------- | :---------------------------------------- | | Fixed Maturity Investments | 1,877,130 | 1,831,268 | | Short-Term Investments | 352,068 | 428,878 | | Investments in Two Sigma Funds | 953,659 | 851,470 | - The company's investments in Two Sigma Funds (FTV, STV, ESTV) aim for absolute dollar-denominated returns through multiple hedged and leveraged systematic investment strategies[52](index=52&type=chunk) - Pledged investments at fair value totaled **$237.0 million** for Lloyd's capital requirements, **$54.1 million** for U.S. state regulatory authorities, and **$36.7 million** for other underwriting obligations as of March 31, 2024[65](index=65&type=chunk) [Note 4. Fair Value](index=19&type=section&id=Note%204.%20Fair%20Value) - Fair value measurements prioritize inputs into a three-level hierarchy: Level 1 (unadjusted quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[69](index=69&type=chunk) - The company's fixed maturity and short-term investments are predominantly classified as **Level 2**, with fair values determined using observable market inputs such as quoted prices, reported trades, benchmark yields, and credit spreads[70](index=70&type=chunk)[73](index=73&type=chunk) [Note 5. Variable Interest Entities](index=22&type=section&id=Note%205.%20Variable%20Interest%20Entities) - Two Sigma Hamilton Fund (TS Hamilton Fund) is identified as a Variable Interest Entity (VIE), and Hamilton Group is determined to be its primary beneficiary[76](index=76&type=chunk) Table: Non-controlling Interest Activity | Non-controlling Interest Activity | Three Months Ended March 31, 2024 ($ in thousands) | Three Months Ended March 31, 2023 ($ in thousands) | | :-------------------------------- | :------------------------------------------------- | :------------------------------------------------- | | Balance - beginning of period | 133 | 119 | | Withdrawals | (65,564) | (1,509) | | Incentive allocation | 120,137 | 1,509 | - Total net assets managed by TS Hamilton Fund increased to **$1.92 billion** at March 31, 2024, from **$1.73 billion** at December 31, 2023[78](index=78&type=chunk) [Note 6. Reinsurance](index=23&type=section&id=Note%206.%20Reinsurance) Table: Reinsurance Recoverables | Metric | March 31, 2024 ($ in millions) | December 31, 2023 ($ in millions) | | :--------------------------------- | :------------------------------- | :-------------------------------- | | Premiums Receivable (net) | 856.1 | 658.4 | | Paid Losses Recoverable (net) | 169.5 | 145.2 | | Unpaid Losses & LAE Recoverable (net) | 1,200.0 | 1,200.0 | - The company utilizes catastrophe bond reinsurance, with Easton Re providing **$200 million** in multi-year risk transfer capacity for U.S. named storm and U.S./Canada earthquake risk, effective January 1, 2024[90](index=90&type=chunk) - At March 31, 2024, **74.3%** of reinsurance recoverable balances were rated A- or better, and **25.2%** were collateralized[87](index=87&type=chunk) [Note 7. Reserve for Losses and Loss Adjustment Expenses](index=25&type=section&id=Note%207.%20Reserve%20for%20Losses%20and%20Loss%20Adjustment%20Expenses) Table: Gross Unpaid Losses and Loss Adjustment Expenses | Metric | March 31, 2024 ($ in thousands) | December 31, 2023 ($ in thousands) | | :----------------------------------------- | :-------------------------------- | :--------------------------------- | | Gross unpaid losses and loss adjustment expenses | 3,148,782 | 3,030,037 | - Net unfavorable prior year development of **$12.1 million** for Q1 2024 was primarily driven by attritional losses in specialty and casualty contracts, partially offset by favorable development in property contracts[93](index=93&type=chunk) - The company recorded reserves of **$37.9 million** for the Baltimore Bridge collapse, **$64.4 million** for the Ukraine conflict, and **$15.8 million** for Covid-19 losses as of March 31, 2024[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) [Note 8. Segment Reporting](index=26&type=section&id=Note%208.%20Segment%20Reporting) - The company has two reportable business segments: International (London, Dublin, and Hamilton Select operations) and Bermuda (Hamilton Re and Hamilton Re US)[101](index=101&type=chunk)[103](index=103&type=chunk) Table: Combined Ratio by Segment | Segment | Combined Ratio (Q1 2024) | Combined Ratio (Q1 2023) | | :---------------- | :----------------------- | :----------------------- | | International | 97.2 % | 89.1 % | | Bermuda | 85.5 % | 86.9 % | | Total | 91.5 % | 87.9 % | Table: Gross Premiums Written by Segment | Segment | Gross Premiums Written (Q1 2024, $ in thousands) | Gross Premiums Written (Q1 2023, $ in thousands) | | :---------------- | :----------------------------------------------- | :----------------------------------------------- | | International | 320,841 | 247,114 | | Bermuda | 401,100 | 291,050 | | Total | 721,941 | 538,164 | [Note 9. Debt and Credit Facilities](index=29&type=section&id=Note%209.%20Debt%20and%20Credit%20Facilities) - The company has an unsecured **$150 million** term loan credit arrangement, maturing on June 23, 2025, and was in compliance with all covenants as of March 31, 2024[111](index=111&type=chunk) Table: Debt and Credit Facility Commitments | Metric | March 31, 2024 ($ in thousands) | | :------------------------------------------------- | :-------------------------------- | | Available letter of credit and revolving loan facilities - commitments | 995,000 | | Available letter of credit and revolving loan facilities - in use | 745,958 | | Security pledged in TS Hamilton Fund | 237,461 | | Security pledged in fixed income portfolio | 251,588 | | Cash pledged | 2,339 | - Interest expense for Q1 2024 was **$5.7 million**, a modest increase from **$5.5 million** in Q1 2023, primarily due to the increase in the Secured Overnight Financing Rate (SOFR)[121](index=121&type=chunk) [Note 10. Share Capital](index=30&type=section&id=Note%2010.%20Share%20Capital) Table: Issued & Outstanding Shares by Class | Share Class | Issued & Outstanding (Mar 31, 2024) | Issued & Outstanding (Dec 31, 2023) | | :---------------- | :---------------------------------- | :---------------------------------- | | Class A | 28,644,807 | 28,644,807 | | Class B | 56,813,977 | 56,036,067 | | Class C | 25,544,229 | 25,544,229 | | Total | 111,003,013 | 110,225,103 | - Holders of Class A and Class B common shares generally have one vote per share, subject to voting limitations (**9.5%** or **14.92%** for class votes), while Class C common shares have no voting rights[124](index=124&type=chunk) [Note 11. Earnings Per Share](index=32&type=section&id=Note%2011.%20Earnings%20Per%20Share) Table: Earnings Per Share | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) attributable to common shareholders | 157,174 | 51,492 | | Basic income (loss) per share | 1.42 | 0.50 | | Diluted income (loss) per share | 1.38 | 0.49 | [Note 12. Subsequent Events](index=32&type=section&id=Note%2012.%20Subsequent%20Events) - On May 8, 2024, the company entered into an agreement to repurchase **9,124,729 Class A common shares** at **$12.00 per share**, totaling **$109.5 million**, with the transaction expected to close on May 10, 2024[128](index=128&type=chunk) - Following the repurchase, the company will have **101,878,284 shares** issued and outstanding[128](index=128&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, condition, liquidity, and capital resources, including segment results and key metrics [Overview](index=35&type=section&id=Overview) - Hamilton Insurance Group is a global specialty insurance and reinsurance company, leveraging diverse underwriting operations (International and Bermuda segments), proprietary technology, a strong balance sheet, and a unique investment management relationship with Two Sigma[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) - The company sees significant growth opportunities in both insurance and reinsurance markets, particularly benefiting from a strong rate environment and increased submissions in the E&S market[135](index=135&type=chunk)[136](index=136&type=chunk) - The investment portfolio includes the Two Sigma Hamilton Fund (TSHF), managed by Two Sigma for low-correlated absolute returns, and an investment-grade fixed income portfolio benefiting from strong interest rates[137](index=137&type=chunk)[138](index=138&type=chunk) - The Bermuda Government enacted a **15% corporate income tax** effective January 1, 2025, but Hamilton Group expects to be exempt from the worldwide minimum tax until January 1, 2030, under certain conditions[143](index=143&type=chunk) [Summary of Critical Accounting Estimates](index=37&type=section&id=Summary%20of%20Critical%20Accounting%20Estimates) - There have been no material changes to the company's critical accounting estimates, including 'Reserve for Losses and Loss Adjustment Expenses,' 'Premiums Written and Earned,' 'Ceded Reinsurance and Unpaid Losses and Loss Adjustment Expenses Recoverable,' and 'Fair Value of Investments,' as disclosed in the 2023 Form 10-K[144](index=144&type=chunk) [Summary Results of Operations](index=38&type=section&id=Summary%20Results%20of%20Operations) [Consolidated Results of Operations](index=38&type=section&id=Consolidated%20Results%20of%20Operations) Table: Consolidated Results of Operations Summary | Metric | Three Months Ended March 31, 2024 ($ in thousands) | Three Months Ended March 31, 2023 ($ in thousands) | YoY Change (%) | | :------------------------------------------------- | :------------------------------------------------- | :------------------------------------------------- | :------------- | | Gross Premiums Written | 721,941 | 538,164 | 34.1 % | | Net Premiums Earned | 385,303 | 283,902 | 35.7 % | | Net Income (Loss) Attributable to Common Shareholders | 157,174 | 51,492 | 205.2 % | | Combined Ratio | 91.5 % | 87.9 % | 3.6 pts | | Loss and Loss Adjustment Expense Ratio | 60.3 % | 52.3 % | 8.0 pts | | Return on Average Common Shareholders' Equity | 7.4 % | 3.0 % | 4.4 pts | - The attritional loss ratio - current year increased by **8.1 percentage points** to **57.2%** in Q1 2024, primarily due to **$37.9 million** in losses from the Francis Scott Key Baltimore Bridge collapse[154](index=154&type=chunk) - Total net realized and unrealized gains (losses) on investments and net investment income (loss) from TS Hamilton Fund, prior to non-controlling interest, significantly increased to **$262.8 million** in Q1 2024 from **$10.1 million** in Q1 2023, driven by macroeconomic trading and single name equities[157](index=157&type=chunk)[158](index=158&type=chunk)[161](index=161&type=chunk) [Segment Information](index=42&type=section&id=Segment%20Information) [International Segment](index=43&type=section&id=International%20Segment) Table: International Segment Performance | Metric | Three Months Ended March 31, 2024 ($ in thousands) | Three Months Ended March 31, 2023 ($ in thousands) | YoY Change (%) | | :--------------------------------- | :------------------------------------------------- | :------------------------------------------------- | :------------- | | Gross Premiums Written | 320,841 | 247,114 | 29.8 % | | Net Premiums Earned | 196,814 | 149,515 | 31.6 % | | Underwriting Income (Loss) | 5,315 | 16,370 | (67.5) % | | Combined Ratio | 97.2 % | 89.1 % | 8.1 pts | | Loss and Loss Adjustment Expense Ratio | 59.0 % | 47.1 % | 11.9 pts | - The increase in the current year attritional loss ratio was primarily driven by **$11.8 million** of losses arising from the Baltimore Bridge collapse[177](index=177&type=chunk) - Unfavorable prior year attritional loss development of **2.9%** was primarily due to two large losses in specialty insurance, partially offset by smaller reserve releases[178](index=178&type=chunk) [Bermuda Segment](index=47&type=section&id=Bermuda%20Segment) Table: Bermuda Segment Performance | Metric | Three Months Ended March 31, 2024 ($ in thousands) | Three Months Ended March 31, 2023 ($ in thousands) | YoY Change (%) | | :--------------------------------- | :------------------------------------------------- | :------------------------------------------------- | :------------- | | Gross Premiums Written | 401,100 | 291,050 | 37.8 % | | Net Premiums Earned | 188,489 | 134,387 | 40.3 % | | Underwriting Income (Loss) | 27,207 | 17,693 | 53.8 % | | Combined Ratio | 85.5 % | 86.9 % | (1.4) pts | | Loss and Loss Adjustment Expense Ratio | 61.6 % | 58.2 % | 3.4 pts | - The current year attritional loss ratio increased by **10.3 percentage points** to **58.4%**, primarily driven by **$26.1 million** of losses from the Baltimore Bridge collapse[189](index=189&type=chunk) - Third-party fee income significantly increased to **$3.9 million** in Q1 2024 from **$0.1 million** in Q1 2023, driven by performance-based management fees recognized by Ada Capital Management Limited[187](index=187&type=chunk) [Corporate and Other](index=50&type=section&id=Corporate%20and%20Other) Table: Corporate and Other Financials | Metric | Three Months Ended March 31, 2024 ($ in thousands) | Three Months Ended March 31, 2023 ($ in thousands) | | :------------------------------------------------- | :------------------------------------------------- | :------------------------------------------------- | | Total Net Realized and Unrealized Gains (Losses) on Investments and Net Investment Income (Loss) - TSHF | 262,821 | 10,064 | | Corporate Expenses | 11,502 | 6,664 | | Net Foreign Exchange Gains (Losses) | (2,125) | (2,046) | - TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of **8.3%** in Q1 2024, significantly up from **0.5%** in Q1 2023[197](index=197&type=chunk) - Corporate expenses increased by **$4.8 million**, primarily due to **$3.7 million** of Value Appreciation Pool (VAP) expense, increased headcount, variable performance-based compensation, and professional fees associated with operating as a public company[205](index=205&type=chunk) [Key Operating and Financial Metrics](index=54&type=section&id=Key%20Operating%20and%20Financial%20Metrics) Table: Book Value per Common Share | Metric | March 31, 2024 | December 31, 2023 | Change (%) | | :--------------------------------- | :------------- | :---------------- | :--------- | | Book Value per Common Share | $19.90 | $18.58 | 7.1 % | | Tangible Book Value per Common Share | $19.07 | $17.75 | 7.4 % | Table: Return on Average Common Shareholders' Equity | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------------- | :-------------------------------- | :-------------------------------- | | Return on Average Common Shareholders' Equity | 7.4 % | 3.0 % | [Non-GAAP Measures](index=56&type=section&id=Non-GAAP%20Measures) - The company presents non-GAAP financial measures, including underwriting income (loss), third-party fee income, and other underwriting expenses, to provide a clearer understanding of core operational performance[219](index=219&type=chunk) Table: Non-GAAP Financial Metrics | Non-GAAP Metric | Three Months Ended March 31, 2024 ($ in thousands) | Three Months Ended March 31, 2023 ($ in thousands) | | :--------------------------------- | :------------------------------------------------- | :------------------------------------------------- | | Underwriting Income (Loss) | 32,522 | 34,063 | | Third Party Fee Income | 7,478 | 3,004 | | Other Underwriting Expenses | 43,353 | 39,142 | [Financial Condition, Liquidity and Capital Resources](index=58&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) [Financial Condition](index=58&type=section&id=Financial%20Condition) - The company maintains two segregated investment portfolios: a fixed maturities and short-term investments trading portfolio focused on capital preservation and liquidity, and an investment in Two Sigma Hamilton Fund (TS Hamilton Fund) for non-market correlated absolute returns[231](index=231&type=chunk)[232](index=232&type=chunk)[233](index=233&type=chunk) Table: Total Cash & Investments | Metric | March 31, 2024 ($ in thousands) | December 31, 2023 ($ in thousands) | | :--------------------------------- | :-------------------------------- | :--------------------------------- | | Total Cash & Investments | 4,363,460 | 4,012,476 | | Fixed Maturity Investments | 1,877,130 | 1,831,268 | | Short-Term Investments | 352,068 | 428,878 | | Investments in Two Sigma Funds | 953,659 | 851,470 | [Liquidity and Capital Resources](index=62&type=section&id=Liquidity%20and%20Capital%20Resources) [Liquidity](index=62&type=section&id=Liquidity) - Management believes that significant cash flows from operations and a high-quality liquid investment portfolio provide sufficient liquidity for the foreseeable future[247](index=247&type=chunk) Table: Cash and Cash Equivalents | Metric | March 31, 2024 ($ in millions) | December 31, 2023 ($ in millions) | | :--------------------------------- | :------------------------------- | :-------------------------------- | | Unrestricted Cash and Cash Equivalents | 1,100.0 | 794.5 | | Restricted Cash and Cash Equivalents | 95.6 | 106.4 | [Holding Company](index=62&type=section&id=Holding%20Company) - Hamilton Insurance Group, Ltd. relies on dividends and distributions from its subsidiaries, receiving **$20.0 million** in Q1 2024 (vs. $Nil in Q1 2023)[249](index=249&type=chunk) - The estimated dividend distribution capacity of its subsidiaries was **$471.6 million** at December 31, 2023, providing sufficient liquidity for the holding company[249](index=249&type=chunk) [Operating Subsidiaries](index=63&type=section&id=Operating%20Subsidiaries) - Operating subsidiaries derive cash from net premiums and investment income, which typically fund operating expenses and dividend payments[250](index=250&type=chunk) - Each of the company's insurance subsidiaries and branches exceeded the minimum solvency, capital, and surplus requirements in their applicable jurisdictions at December 31, 2023[252](index=252&type=chunk) [Consolidated Cash Flows](index=63&type=section&id=Consolidated%20Cash%20Flows) Table: Consolidated Cash Flow Activities | Activity | Three Months Ended March 31, 2024 ($ in thousands) | Three Months Ended March 31, 2023 ($ in thousands) | | :----------------------------------------- | :------------------------------------------------- | :------------------------------------------------- | | Operating activities | 158,200 | 12,086 | | Investing activities | 194,127 | (132,129) | | Financing activities | (68,376) | (3,117) | - Net cash provided by operating activities significantly increased due to timing differences in premium collection, reinsurance recoverables, and loss payments[254](index=254&type=chunk) - Net cash provided by investing activities shifted from a net outflow to a net inflow, primarily driven by the timing of investing activities and turnover in fixed maturities and short-term investments[255](index=255&type=chunk) [Capital Resources](index=64&type=section&id=Capital%20Resources) - The company's total capital increased by **7.9%** to **$2.2 billion** at March 31, 2024, from **$2.0 billion** at December 31, 2023, primarily driven by net income attributable to common shareholders[260](index=260&type=chunk) - Management monitors capital adequacy to meet rating agency and regulatory requirements and maintains flexibility to raise or return capital through share repurchases or dividends[259](index=259&type=chunk) [Debt](index=65&type=section&id=Debt) - The company has an unsecured **$150 million** term loan credit arrangement, which matures on June 23, 2025, and was in compliance with all financial covenants at March 31, 2024[261](index=261&type=chunk) Table: Outstanding Loan Balance | Metric | March 31, 2024 ($ in thousands) | December 31, 2023 ($ in thousands) | | :------------------------ | :-------------------------------- | :--------------------------------- | | Outstanding Loan Balance | 150,000 | 150,000 | [Common Shares](index=65&type=section&id=Common%20Shares) - The company's authorized and issued share capital includes Class A, Class B, and Class C common shares[263](index=263&type=chunk) - Class A and Class B common shares generally have voting rights, subject to certain limitations (**9.5%** or **14.92%** for class votes), while Class C common shares have no voting rights[263](index=263&type=chunk) [Credit Facilities](index=66&type=section&id=Credit%20Facilities) - The company utilizes several letter of credit facilities and a revolving loan facility, with total commitments of **$995 million**, to provide collateral for reinsureds and support capital requirements at Lloyd's[272](index=272&type=chunk) - These facilities are secured by pledged interests in the TS Hamilton Fund (**$237.5 million**), the fixed income portfolio (**$251.6 million**), and cash (**$2.3 million**) as of March 31, 2024[272](index=272&type=chunk) [Financial Strength Ratings](index=67&type=section&id=Financial%20Strength%20Ratings) - A.M. Best upgraded the Financial Strength Rating of Hamilton Re and HIDAC to '**A**' (Excellent) from '**A-**' (Excellent) on April 30, 2024, with a stable outlook[275](index=275&type=chunk) - Kroll Bond Rating Agency affirmed its '**A**' insurance financial strength rating for Hamilton Re and '**BBB+**' issuer rating for Hamilton Insurance Group, Ltd. on July 25, 2023, with a positive outlook[276](index=276&type=chunk) [Reserve for Losses and Loss Adjustment Expenses](index=67&type=section&id=Reserve%20for%20Losses%20and%20Loss%20Adjustment%20Expenses) - The company establishes loss reserves using actuarial models, historical industry experience, and loss development patterns, believing its recorded reserves are management's best estimate of ultimate liabilities[277](index=277&type=chunk) - The company utilizes reinsurance to reduce potential losses from claim events, recording amounts recoverable under reinsurance contracts as assets[280](index=280&type=chunk) [Recent Accounting Pronouncements](index=68&type=section&id=Recent%20Accounting%20Pronouncements) - No recently issued accounting pronouncements are expected to have a material impact on the company's results of operations, financial condition, or liquidity[281](index=281&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risks, including interest rate, credit, equity, and foreign currency, remain unchanged from the 2023 Form 10-K - The company's principal market risks include interest rate risk, credit spread risk, equity price risk, and foreign currency risk[282](index=282&type=chunk) - There were no material changes to these market risks as disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023[282](index=282&type=chunk) [Item 4. Controls and Procedures](index=68&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were effective, and no material changes in internal control over financial reporting occurred [Evaluation of Disclosure Controls and Procedures](index=68&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, providing reasonable assurance for timely and accurate reporting[283](index=283&type=chunk) [Changes in Internal Control Over Financial Reporting](index=68&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) - No changes in internal control over financial reporting were identified during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[284](index=284&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=69&type=section&id=Item%201.%20Legal%20Proceedings) No material changes to legal proceedings have occurred since the 2023 Form 10-K filing - No material changes to legal proceedings from the Form 10-K for the year ended December 31, 2023[285](index=285&type=chunk) [Item 1A. Risk Factors](index=69&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the 2023 Form 10-K filing - No material changes to risk factors from the Form 10-K for the year ended December 31, 2023[286](index=286&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 613,734 common shares in Q1 2024, mainly for employee tax obligations and warrant exercises Table: Common Shares Purchased | Period | Total Shares Purchased | | :------------------ | :--------------------- | | January 1 - 31, 2024 | 368,907 | | March 1 - 31, 2024 | 244,827 | | Total | 613,734 | - Shares were purchased from employees for withholding tax obligations on restricted stock awards and in respect of the purchase price for warrants exercised[288](index=288&type=chunk) - No shares were purchased under a publicly announced repurchase program during the first quarter of 2024[288](index=288&type=chunk) [Item 3. Defaults Upon Senior Securities](index=69&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - None[290](index=290&type=chunk) [Item 4. Mine Safety Disclosures](index=69&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[291](index=291&type=chunk) [Item 5. Other Information](index=69&type=section&id=Item%205.%20Other%20Information) No other information is reported under this item - None[292](index=292&type=chunk) [Item 6. Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including agreements and certifications - Exhibits include a Share Purchase Agreement (10.1), CEO and CFO Certifications (31.1, 31.2, 32.1, 32.2), and Interactive Data Files (101, 104)[294](index=294&type=chunk) [Signatures](index=71&type=section&id=Signatures) The report is officially signed by the Group Chief Financial Officer and Group Chief Accounting Officer - The report was signed by Craig Howie, Group Chief Financial Officer, and Brian Deegan, Group Chief Accounting Officer, on May 9, 2024[297](index=297&type=chunk)

Hamilton Reports 2024 First Quarter Results Net Income of $157 Million; Six Consecutive Quarters of Underwriting Income PEMBROKE, Bermuda, May 8, 2024 – Hamilton Insurance Group, Ltd. (NYSE: HG; "Hamilton" or "the Company") today announced financial results for the first quarter ended March 31, 2024. Commenting on the financial results, Pina Albo, CEO of Hamilton, said: "I am very proud of Hamilton's financial results for the first quarter. Not only did we generate strong underwriting and investment returns ...

The majority of U.S. stocks ended in the red on the last day of April, as recent data reflected a higher-than-expected rise in labor costs. This data, in addition to the dismal market consensus, with most investors expecting the U.S. central bank to leave interest rates unchanged, must have added to Wall Street’s woes.  In such a situation, an investor might not feel confident about investing in the stock market. However, a prudent investor knows that this is the right time to buy stocks that are safe bets. ...