Hamilton Insurance (US:HG)2024-08-08 20:21Financial Performance - Total revenues for Q2 2024 were $587.94 million, compared to $357.24 million in Q2 2023, reflecting a 64.5% year-over-year growth[16]. - Net income for Q2 2024 was $200.38 million, significantly higher than $41.29 million in Q2 2023, marking a 385.5% increase[16]. - Basic income per share attributable to common shareholders for Q2 2024 was $1.24, compared to $0.35 in Q2 2023, representing a 254.3% increase[16]. - Net income for 2024 reached $477,714, a significant increase from $94,290 in 2023, representing a growth of approximately 406%[21]. - Net income attributable to common shareholders for Q2 2024 was $131.085 million, significantly higher than $36.787 million in Q2 2023, marking a 256.5% increase[89]. - For the six months ended June 30, 2024, net income attributable to common shareholders was $288.3 million, compared to $88.3 million in the same period of 2023, an increase of 226%[113]. Assets and Investments - Total assets increased to $7,623,103 thousand as of June 30, 2024, compared to $6,671,355 thousand at December 31, 2023, reflecting a growth of approximately 14.2%[14]. - Total investments rose to $3,456,154 thousand in Q2 2024, up from $3,111,616 thousand in Q4 2023, marking an increase of about 11.1%[14]. - Cash and cash equivalents increased to $1,016,573 thousand from $794,509 thousand, representing a growth of approximately 27.9%[14]. - The company’s investments in Two Sigma Funds had a fair value of $923,682 as of June 30, 2024, with unrealized gains of $212,446[40]. - Total fixed maturities amounted to $2,119,739 with gross unrealized losses of $55,791, resulting in a fair value of $2,068,930[36]. Premiums and Underwriting - Gross premiums written for Q2 2024 reached $603.3 million, a 19.5% increase from $504.96 million in Q2 2023[16]. - Net premiums written for the first half of 2024 totaled $989.95 million, up 35.1% from $733.21 million in the same period of 2023[16]. - The attritional loss ratio for the current year in Q2 2024 was 51.6%, slightly improved from 51.0% in Q2 2023[89]. - The combined ratio for Q2 2024 improved to 84.4% from 89.5% in Q2 2023, indicating better overall underwriting performance[89]. - Net premiums earned increased to $418.764 million in Q2 2024 from $331.460 million in Q2 2023, a growth of 26.3%[89]. Expenses and Losses - Total expenses for the first half of 2024 were $765.78 million, up from $580.81 million in the same period of 2023, indicating a 31.8% increase[16]. - Losses and loss adjustment expenses totaled $214.494 million in Q2 2024, compared to $179.416 million in Q2 2023, reflecting a 19.5% increase[89]. - The Company recorded net losses and loss adjustment expenses incurred of $446.8 million for the six months ended June 30, 2024, compared to $328.0 million for the same period in 2023, an increase of 36.1%[77]. Shareholder Equity and Stock Performance - Shareholders' equity increased to $2,238,547 thousand as of June 30, 2024, up from $2,047,850 thousand, representing an increase of about 9.3%[14]. - The total share capital decreased from $1,101 million as of December 31, 2023, to $1,019 million as of June 30, 2024[105]. - The company repurchased 9,124,729 Class A common shares at $12.00 per share, totaling $109.5 million[109]. - Basic earnings per share for the six months ended June 30, 2024, was $2.66, up from $0.85 in the same period of 2023, a growth of 213%[113]. Risks and Challenges - The company faces risks related to macroeconomic conditions, including inflation and geopolitical events, which could impact future performance[8]. - The company is dependent on key executives and may face challenges in attracting qualified personnel due to competitive hiring conditions[8]. - 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 since the last disclosure[294]. Cash Flow and Financing - Net cash provided by operating activities increased to $314,638 in 2024 from $75,911 in 2023, marking a rise of about 314%[21]. - The company reported a net cash used in financing activities of $(225,301) in 2024, compared to $(8,252) in 2023, indicating a significant increase in cash outflow[21]. - As of June 30, 2024, the company had $995 million in available letter of credit and revolving loan facilities, with $731.472 million in use[103]. Investment Performance - The company reported net realized and unrealized gains on investments of $406.62 million for the first half of 2024, compared to $54.54 million in the same period of 2023[16]. - The total net investment income for the six months ended June 30, 2024, was $26,338, compared to $9,650 for the same period in 2023, reflecting improved performance[47]. - The company reported net foreign exchange losses of $1.782 million in Q2 2024, compared to losses of $3.341 million in Q2 2023, indicating an improvement in currency exposure[89].