Financial Performance - Gross premiums written for Q3 2024 reached $553,401,000, 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, up 31.5% from $952,398,000 in the same period of 2023[16] - Total revenues for Q3 2024 were $512,844,000, representing a 29.3% increase compared to $396,266,000 in Q3 2023[16] - Net income for Q3 2024 was $61,035,000, 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, compared to $0.42 in Q3 2023[16] - Total expenses for Q3 2024 were $448,780,000, 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, up 42.9% from $191,577,000 in Q3 2023[16] - Net income for the nine months ended September 30, 2024, was $538,749 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 $78.3 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, up from $131,862 in 2023, representing a significant increase of 177.5%[109] Assets and Liabilities - Total assets increased to $7,826,547 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 $5,452,861 thousand in 2024, compared to $4,623,372 thousand in 2023, indicating an increase of about 17.9%[15] - Shareholders' equity increased to $2,313,626 thousand in 2024 from $2,047,850 thousand in 2023, representing a growth of approximately 13.0%[15] - Cash and cash equivalents increased to $957,372 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 $2,828,131 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 $1.1 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 $2.24 billion as of September 30, 2024, compared to $1.79 billion at the end of September 30, 2023[89] Investments - Total investments rose to $3,760,918 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 $932,787 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 $65,558,000 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, 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, compared to $42,403 for the same period in 2023[55] - The company reported a net realized loss on investments of $(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 $885,744 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 $553.4 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 $448.8 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 $29.1 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 $12.00 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 $150 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 $415 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]
Hamilton Insurance (HG) - 2024 Q3 - Quarterly Report