Financial Performance - Net income for Q3 2024 was $78.3 million, or $0.74 per diluted share, representing a significant increase from $43.6 million in Q3 2023[3][7] - Year-to-date net income reached $366.5 million, with an annualized return on average equity of 22.4%[4] - Net income attributable to common shareholders was $366.5 million, compared to $131.9 million in the previous year, representing a significant increase of $234.6 million[13] - Net income attributable to common shareholders for the three months ended September 30, 2024, was $78,250 thousand, compared to $43,583 thousand in 2023, representing an increase of 79.7%[30] Premiums and Underwriting - Gross premiums written increased by 16.7% to $553.4 million compared to Q3 2023, with net premiums earned rising by 33.2% to $448.8 million[3][8] - The International Segment saw gross premiums written increase by 6.0% to $325.5 million, while the Bermuda Segment experienced a 36.5% increase to $227.9 million[10][11] - Gross premiums written increased by $361.4 million, or 23.8%, to $1.9 billion, with a 15.1% increase in the International Segment and a 34.4% increase in the Bermuda Segment[14] - Net premiums written rose by $351.1 million, or 31.4%, to $1.5 billion, with increases of 24.2% in the International Segment and 38.6% in the Bermuda Segment[14] - Net premiums earned increased by $300.5 million, or 31.5%, to $1.3 billion, with a 26.3% increase in the International Segment and a 37.4% increase in the Bermuda Segment[14] - The combined ratio for Q3 2024 was 93.6%, slightly up from 92.6% in Q3 2023, indicating continued underwriting discipline despite catastrophe losses[2][8] - The combined ratio improved to 89.9%, a decrease of 0.3 percentage points from 90.2% in the previous year[14] - Underwriting income for the three months ended September 30, 2024, was $29,094 thousand, up from $24,866 thousand in 2023, indicating a growth of 16.4%[33] Investment Income - Net investment income for Q3 2024 was $82.8 million, with a notable loss of $11.1 million from the Two Sigma Hamilton Fund[3] - Net investment income for the three months ended September 30, 2024, was $17,330 thousand, compared to $8,069 thousand in 2023, reflecting a significant increase of 114.0%[27] Expenses - Corporate expenses for the year-to-date totaled $41.8 million, including $7.5 million related to the Value Appreciation Pool[4] - Other underwriting expenses for Q3 2024 were $48,332 thousand, an increase of 4.4% from $44,357 thousand in Q3 2023[38] - Corporate expenses decreased to $14,060 thousand in Q3 2024 from $18,678 thousand in Q3 2023, reflecting a reduction of 25.5%[38] - General and administrative expenses for the nine months ended September 30, 2024, totaled $182,164 thousand, up 15.2% from $158,075 thousand in the same period of 2023[38] Assets and Equity - Book value per share increased by 22.8% to $22.82 compared to December 31, 2023[4] - Total invested assets and cash increased to $4.6 billion from $4.0 billion at the end of 2023[19] - Total shareholders' equity rose to $2.3 billion from $2.0 billion at the end of 2023[19] - Total assets increased to $7,826,547 thousand as of September 30, 2024, up from $6,671,355 thousand at December 31, 2023, representing a growth of approximately 17.3%[25] - Cash and cash equivalents rose to $957,372 thousand as of September 30, 2024, compared to $794,509 thousand at December 31, 2023, an increase of 20.6%[25] Catastrophe Losses - The company estimates losses from Hurricane Milton to be between $30 million and $70 million, which will impact Q4 2024 results[5] - Catastrophe losses totaled $38.5 million, primarily driven by Hurricane Helene, the Calgary hailstorms, and Hurricane Debby[15] Risks and Challenges - The company anticipates continued growth in its market position and profitability, although actual results may vary due to various risks and uncertainties[39] - The insurance and reinsurance business is historically cyclical, and pricing for products may decline, impacting profitability and premium growth[40] - Significant foreign operations expose the company to additional risks, including foreign currency and political risks[40] - The company faces potential challenges in accurately assessing underwriting risk and maintaining broker relationships, which could adversely affect operations[40] - The company is dependent on key executives and may face difficulties in attracting qualified personnel in competitive hiring conditions[41] - Future capital needs may arise, and there is a risk that capital may not be available on favorable terms[42] - The company may encounter operational failures or issues with information systems that could impact financial results[42]
Hamilton Insurance (HG) - 2024 Q3 - Quarterly Results