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Hamilton Insurance (HG) - 2024 Q3 - Quarterly Report

Financial Performance - Gross premiums written for Q3 2024 reached 553,401,000,a16.7553,401,000, a 16.7% increase from 474,123,000 in Q3 2023[16] - Net premiums earned for the nine months ended September 30, 2024, totaled 1,252,862,000,up31.51,252,862,000, up 31.5% from 952,398,000 in the same period of 2023[16] - Total revenues for Q3 2024 were 512,844,000,representinga29.3512,844,000, representing a 29.3% increase compared to 396,266,000 in Q3 2023[16] - Net income for Q3 2024 was 61,035,000,a15.461,035,000, a 15.4% increase from 52,648,000 in Q3 2023[16] - Basic income per share attributable to common shareholders for Q3 2024 was 0.77,comparedto0.77, compared to 0.42 in Q3 2023[16] - Total expenses for Q3 2024 were 448,780,000,anincreaseof31.6448,780,000, an increase of 31.6% from 341,231,000 in Q3 2023[16] - Losses and loss adjustment expenses for Q3 2024 amounted to 273,632,000,up42.9273,632,000, up 42.9% from 191,577,000 in Q3 2023[16] - Net income for the nine months ended September 30, 2024, was 538,749thousand,asignificantincreasefrom538,749 thousand, a significant increase from 146,938 thousand in the same period of 2023, representing a growth of 267%[20] - Net income attributable to common shareholders for the three months ended September 30, 2024, was 78.3million,comparedto78.3 million, compared to 43.6 million for the same period in 2023[103][105] - Net income attributable to common shareholders for the nine months ended September 30, 2024, was 366,509,upfrom366,509, up from 131,862 in 2023, representing a significant increase of 177.5%[109] Assets and Liabilities - Total assets increased to 7,826,547thousandasofSeptember30,2024,comparedto7,826,547 thousand as of September 30, 2024, compared to 6,671,355 thousand at December 31, 2023, reflecting a growth of approximately 17.3%[15] - Total liabilities rose to 5,452,861thousandin2024,comparedto5,452,861 thousand in 2024, compared to 4,623,372 thousand in 2023, indicating an increase of about 17.9%[15] - Shareholders' equity increased to 2,313,626thousandin2024from2,313,626 thousand in 2024 from 2,047,850 thousand in 2023, representing a growth of approximately 13.0%[15] - Cash and cash equivalents increased to 957,372thousandin2024,upfrom957,372 thousand in 2024, up from 794,509 thousand in 2023, representing a growth of approximately 20.6%[15] - Total fixed maturities and short-term investments amounted to 2,828,131thousandasofSeptember30,2024,withgrossunrealizedlossesof2,828,131 thousand as of September 30, 2024, with gross unrealized losses of 27,456 thousand[40] - Total cash and cash equivalents and restricted cash and cash equivalents increased to 1.1billionasofSeptember30,2024,upfrom1.1 billion as of September 30, 2024, up from 900.9 million at December 31, 2023[60] - The company's net unpaid losses and loss adjustment expenses at the end of the period were 2.24billionasofSeptember30,2024,comparedto2.24 billion as of September 30, 2024, compared to 1.79 billion at the end of September 30, 2023[89] Investments - Total investments rose to 3,760,918thousandin2024from3,760,918 thousand in 2024 from 3,111,616 thousand in 2023, marking an increase of about 20.8%[15] - The company reported a significant increase in investments in Two Sigma Funds, rising to 932,787thousandin2024from932,787 thousand in 2024 from 851,470 thousand in 2023, an increase of about 9.5%[15] - The company reported net realized and unrealized gains on investments of 65,558,000forQ32024,comparedto65,558,000 for Q3 2024, compared to 55,412,000 in Q3 2023[16] - The total net realized and unrealized gains on investments and net investment income for the nine months ended September 30, 2024, was 498,518,comparedto498,518, compared to 119,600 for the same period in 2023[55] - The company reported net realized gains on investments for the three months ended September 30, 2024, were 93,711,comparedto93,711, compared to 42,403 for the same period in 2023[55] - The company reported a net realized loss on investments of (382,646)thousandfortheninemonthsendedSeptember30,2024,comparedtoalossof(382,646) thousand for the nine months ended September 30, 2024, compared to a loss of (32,363) thousand in 2023[20] Premiums and Underwriting - Premiums receivable grew to 885,744thousandin2024,comparedto885,744 thousand in 2024, compared to 658,363 thousand in 2023, indicating an increase of around 34.5%[15] - For the three months ended September 30, 2024, gross premiums written totaled 553.4million,anincreasefrom553.4 million, an increase from 474.1 million for the same period in 2023[103][105] - Net premiums earned for the three months ended September 30, 2024, were 448.8million,comparedto448.8 million, compared to 337.0 million for the same period in 2023[103][105] - Underwriting income for the three months ended September 30, 2024, was 29.1million,upfrom29.1 million, up from 24.9 million for the same period in 2023[103][105] - The attritional loss ratio for the current year was 53.2% as of September 30, 2024, compared to 54.8% for the same period in 2023[103][105] - The combined ratio for the three months ended September 30, 2024, was 93.6%, an improvement from 92.6% for the same period in 2023[103][105] Risks and Challenges - The company faces risks related to macroeconomic conditions, including rising energy prices and inflation, which could impact future performance[9] - The company is dependent on key executives and may face challenges in attracting qualified personnel due to competitive hiring conditions[9] - The company remains exposed to market risks including interest rate risk, credit spread risk, equity price risk, and foreign currency risk, with no material changes reported[371] Shareholder Actions - The company completed its initial public offering (IPO) of Class B common shares on November 14, 2023, listed on the NYSE[22] - The company repurchased 9.1 million Class A common shares at 12.00pershareforatotalof12.00 per share for a total of 109.5 million, which were subsequently canceled[128] - On August 7, 2024, the Board authorized a share repurchase program of up to 150million,with150 million, with 140 million remaining available for purchase as of September 30, 2024[129] - The company amended its unsecured credit agreement to provide up to 415millioninletterofcreditcapacity,withnoloanamountsoutstandingasofSeptember30,2024[116]ComplianceandFinancialCovenantsThecompanymaintainedcompliancewithallfinancialcovenantsrelatedtoits415 million in letter of credit capacity, with no loan amounts outstanding as of September 30, 2024[116] Compliance and Financial Covenants - The company maintained compliance with all financial covenants related to its 150 million term loan facility as of September 30, 2024[111] - As of September 30, 2024, all applicable entities were in compliance with financial and reporting covenants under the credit facilities[120]