Hamilton Insurance (US:HG)2025-11-04 21:19Financial Performance - Net income for Q3 2025 was $136.2 million, or $1.32 per diluted share, representing a 74.0% increase from $78.3 million, or $0.74 per diluted share in Q3 2024[6] - Annualized return on average equity was 20.9%, up from 13.8% in the same quarter last year[8] - Operating income attributable to common shareholders for the three months ended September 30, 2025, was $123,080 thousand, compared to $16,551 thousand in 2024, indicating significant improvement[31] - The net income for the nine months ended September 30, 2025, was $625,476,000, compared to $538,749,000 in 2024, representing a growth of 16.1%[33] Premiums and Underwriting - Gross premiums written increased by $145.4 million, or 26.3%, to $698.8 million compared to Q3 2024[8] - Net premiums earned rose by $74.2 million, or 16.5%, to $523.0 million compared to Q3 2024[8] - Underwriting income for Q3 2025 was $64.1 million, compared to $29.1 million in Q3 2024, reflecting a significant increase of 120.0%[8] - Gross premiums written increased by $375.5 million, or 20.0%, to $2.3 billion, with a 25.9% increase in the Bermuda Segment and a 14.3% increase in the International Segment[12] - Net premiums written rose by $271.3 million, or 18.5%, to $1.7 billion, driven by a 21.4% increase in the Bermuda Segment and a 15.1% increase in the International Segment[12] - Net premiums earned increased by $280.2 million, or 22.4%, to $1.5 billion, with a 27.9% increase in the Bermuda Segment and a 17.0% increase in the International Segment[12] Investment Income - Net investment income was $97.6 million, with returns from the Two Sigma Hamilton Fund contributing $54.2 million[6] - Net investment income for the nine months ended September 30, 2025, was $62,721 thousand, compared to $43,667 thousand in 2024, reflecting a growth of 43.7%[26] - Total net realized and unrealized gains on investments for the nine months ended September 30, 2025, were $634,685,000, up from $498,518,000 in the same period of 2024, reflecting a growth of 27.3%[33] Ratios and Losses - The combined ratio improved to 87.8%, a decrease of 5.8 percentage points from 93.6% in Q3 2024[8] - The combined ratio worsened to 95.2% from 89.9%, reflecting a 5.3 percentage point increase[12] - Catastrophe losses for the current year were nil, indicating effective risk management strategies[11] - Catastrophe losses totaled $152.0 million, primarily due to California wildfires and severe convective storms[13] - The attritional loss ratio for the current year was 53.4%, impacted by large losses in Bermuda specialty and property reinsurance classes[12] Shareholder Equity and Book Value - Book value per share increased by 17.9% to $27.06 compared to December 31, 2024[6] - Total shareholders' equity rose to $2.7 billion from $2.3 billion at December 31, 2024[18] - Book value per share increased by 17.9% to $27.06 compared to $22.95 at December 31, 2024[18] Company Operations and Expenses - The company repurchased common shares worth $40.5 million in Q3 2025[6] - Other underwriting expenses for Q3 2025 totaled $58,955,000, an increase from $48,332,000 in Q3 2024, marking a rise of 21.5%[38] - General and administrative expenses for the nine months ended September 30, 2025, were $205,832,000, compared to $182,164,000 in the same period of 2024, showing an increase of 13%[38] Assets and Liabilities - Total invested assets and cash increased to $5.7 billion from $4.8 billion at December 31, 2024[18] - Total assets increased to $9,213,370 thousand as of September 30, 2025, up from $7,796,033 thousand in 2024, representing a growth of 18.2%[25] - Total liabilities increased to $6,470,198 thousand as of September 30, 2025, from $5,467,196 thousand in 2024, marking a rise of 18.4%[25] Market Outlook and Risks - The company anticipates continued growth and market expansion, although specific future projections were not detailed in the provided content[43] - Risks include competition, macroeconomic conditions, and regulatory challenges, which could impact future performance[44]