Financial Data and Key Metrics Changes - In 2025, Hamilton delivered record net income of $577 million, a 44% increase from $400 million in 2024, with a return on average equity of 22%, up from 18% in the prior year [15][6] - The company grew tangible book value per share by 24% to a record $28.50 [15] - For Q4 2025, net income was $172 million, equal to $1.69 per diluted share, producing an annualized return on average equity of 25% [15][16] - The combined ratio for 2025 was 92.9%, with a loss ratio improvement to 54.6% in Q4, down from 60.1% in the prior period [20][21] Business Line Data and Key Metrics Changes - Gross premiums written increased 21% to a record $2.9 billion in 2025, with Q4 premiums growing 23% [6][7] - The Bermuda segment grew 27% in Q4, driven by casualty reinsurance, while the international segment grew 20% [8][9] - Hamilton Select, focused on casualty classes, grew 19% in Q4, driven by excess casualty products [10] Market Data and Key Metrics Changes - The company noted a transitioning market with ample opportunities for underwriters, despite increased competition in certain areas [7][13] - The January 1 renewal season was characterized by strong competition, particularly in property cat, but Hamilton maintained discipline in capital deployment [11][12] Company Strategy and Development Direction - Hamilton's strategy focuses on strong operational and underwriting culture, client relationships, and maintaining a robust capital position [4][5] - The company aims to continue disciplined underwriting, avoiding chasing top-line growth at the expense of profitability [14] - Hamilton is investing in technology and AI to enhance underwriting efficiency and decision-making processes [80][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to find attractive opportunities in a competitive market, although growth may be more measured going forward [13][14] - The company anticipates that pricing across targeted lines will remain risk adequate, despite competitive pressures [13][68] Other Important Information - Hamilton declared a special dividend of $2 per common share, totaling approximately $206 million, reflecting the company's strong capital position [32] - The Bermuda Substance-Based Tax Credit is expected to provide significant tax benefits, enhancing the company's competitive advantage [17][18] Q&A Session Summary Question: Underlying loss ratio guide for 2026 - Management indicated that the increase to 55% is primarily due to a change in the catastrophe threshold from $5 million to $10 million, with expected catastrophe losses around 6% to 7% for the year [35][36] Question: Decision to deploy a special dividend - The special dividend was seen as an effective way to return excess capital to shareholders, while still allowing for share buybacks [37][38] Question: Competition on the casualty side - Management noted robust pricing in excess casualty products, with increased competition primarily observed in professional lines [40][41] Question: Optimal premium leverage - The company has maintained a premium leverage of about 80%, with no significant changes expected despite a shift towards casualty growth [45][46] Question: Elevated large losses in both segments - The increase in large losses was attributed to more significant events, including a satellite loss, impacting both segments [72][73]

Financial Data and Key Metrics Changes - The company reported a net income of $3,900,000 or $0.27 per diluted share, marking a 172% increase in net income compared to the prior year [3][16] - Direct written premium growth was 18% overall, with a 23% increase in the core business, while non-core business saw a 64% reduction as planned [3][8] - The combined ratio was 93.7%, close to the 93.3% from the same quarter last year, while operating income nearly tripled to $2,400,000 [12][16] Business Line Data and Key Metrics Changes - The select homeowners program's cumulative frequency decreased for thirteen consecutive quarters, with a frequency of 1.6% compared to 2.3% for the legacy product [7] - Core policies in force increased by 10% year-over-year, led by a 19% increase in homeowners policies [9] - New business policy count increased by 68%, contributing to the growth in core business premiums [8] Market Data and Key Metrics Changes - The company expects to generate $25,000,000 to $35,000,000 in premiums from the Amgard transaction over a twelve-month period [8][16] - The hard market conditions in Downstate New York remain stable, with companies beginning to increase their underwriting appetite [8] Company Strategy and Development Direction - The company plans to focus on its core state of New York and capitalize on hard market conditions to maximize profitable growth [7][16] - There is a cautious approach to potential expansion into other states, with a strategy for 2026 and beyond, ensuring that products match rate to risk [46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the business, reaffirming guidance for the calendar year 2025 [16] - The company is confident in its ability to generate long-term value for shareholders through disciplined execution and strategic planning [16] Other Important Information - The company finalized the sale of its headquarters, resulting in a one-time after-tax gain of $1,500,000, and fully paid off remaining holding company debt, saving over $800,000 in annual interest [12] - Net investment income increased by 36% to $2,000,000, driven by strong cash generation from operations [13] Q&A Session Summary Question: Fire losses details - Fire losses were 3.3 points higher than anticipated, offset by lower catastrophe losses [20] - Management is not concerned about these fire losses as they are considered random events [21] Question: Combined ratio guidance - The combined ratio guidance was not updated due to the offsetting nature of fire and catastrophe losses [22][23] Question: Capital management priorities - The Board is discussing restoring dividends, but share buybacks are not envisioned in the near future [24][25] Question: Amgard transaction pricing - Amgard's pricing is expected to be higher, and the company is uncertain about the impact of the transaction [26][27] Question: CFO search update - A retained search firm has been hired, and interviews are ongoing for the CFO position [28] Question: Net investment income growth - The increase in investment income is due to cash generation from profitability and strategic investment portfolio management [38] Question: Intrinsic value of Kingstone - Management did not provide specific insights on intrinsic value but acknowledged the importance of increasing company value [40] Question: Expansion into other jurisdictions - The focus remains on Downstate New York for 2025, with potential expansion considered for 2026 and beyond [46]