Financial Data and Key Metrics Changes - The net premium earned was relatively flat compared to 2024, driven by higher renewal premiums offset by lower new business and audit premiums [6][10] - Gross premiums written increased by 1% to $212 million, while net premiums earned decreased by 1% to $183 million [9][10] - The current accident year loss and LAE ratio on voluntary business increased to 66% from 64% in 2024 [7][10] - Net investment income rose by 20% to $32 million, the highest in the company's history as a publicly traded entity [7][12] - Quarterly net income was $12.8 million, impacted by $9 million of net after-tax unrealized investment losses [12] - Adjusted net income increased by 24% to $21.3 million from $17.2 million a year ago [13] Business Line Data and Key Metrics Changes - The underwriting expense ratio improved to 23.4% from 25% a year ago, attributed to reductions in bad debt and compensation-related expenses [8][11] - Commission expense decreased to $23 million from $25 million, with a commission expense ratio of 12.6% compared to 13.6% [11] Market Data and Key Metrics Changes - The company ended the period with a record number of policies in force, achieving a year-over-year growth rate of 4% [7] - The overall selection of the current accident year loss ratio of 66% is below the industry average, which has been in the range of 69% to 70% in recent years [24] Company Strategy and Development Direction - The company continues to prioritize profitability over growth, refining its underwriting and pricing approach to maintain discipline while returning to moderate new business growth levels [15] - The appetite expansion effort is ongoing, identifying areas for profitable growth [15] - The company is monitoring potential impacts from tariff discussions and the cost of prescription drugs and medical services [15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the ability to maintain a strong customer base amid potential recessionary headwinds, citing deep relationships with customers and agents [15] - The company has not experienced negative impacts from macroeconomic conditions but is closely monitoring the situation [15] Other Important Information - The Board of Directors authorized a new stock repurchase program for up to $125 million over a 20-month period [13] - A 7% increase in the quarterly dividend to $0.32 per share was declared, payable on May 28 [14] Q&A Session Summary Question: Can you discuss specifics regarding loss trends and the competitive rate environment? - Management noted the increase in the accident year GLOF and LAE ratio from 64% to 66% is due to competitive rate pressures and a rise in cumulative trauma claims in California [22][24] Question: What about underlying medical inflation and treatment costs? - Management indicated that lost time claim frequencies are generally trending downward, with some variations by state, and overall severity values have held steady [26] Question: Are there macroeconomic contributions to cumulative trauma claims? - Management stated that there is no identifiable macroeconomic cause for the increase in cumulative trauma claims, which are primarily a California phenomenon [30] Question: What are the expectations for the NCCI's state of the line report? - Management anticipates that reserve redundancies in the industry are still significant but may be reducing less, with internal rates showing flat year-over-year results [35]

Financial Data and Key Metrics Changes - Hamilton reported a record net income of $400 million for 2024, up 55% from the previous year, with a return on average equity of 18.3% compared to 13.9% in 2023 [37] - The company achieved gross premiums written of over $2.4 billion, a 24% increase from 2023, and a combined ratio of 91.3% [11][12] - For Q4 2024, net income was $34 million, or $0.32 per diluted share, down from $127 million or $1.15 per diluted share in Q4 2023 [39] Business Line Data and Key Metrics Changes - The International segment wrote $1.3 billion in gross premiums, with a combined ratio of 95.6%, while the Bermuda segment wrote $1.1 billion with a combined ratio of 87% [15][17] - Hamilton Global Specialty wrote $1.2 billion in gross premiums, and Hamilton Select wrote $117 million, reflecting strong growth in the U.S. E&S market [16] - Bermuda's underwriting income was $110 million, up from $93 million in 2023, despite increased catastrophe losses [57] Market Data and Key Metrics Changes - The insurance industry faced approximately $140 billion in insured catastrophe losses in 2024, with Hamilton's estimated losses from the California wildfires ranging from $120 million to $150 million [8][10] - The company noted a favorable environment for casualty reinsurance, with improved pricing and opportunities arising from competitors exiting the market [82] Company Strategy and Development Direction - Hamilton focused on strategic growth, underwriting profitability, achieving ratings upgrades, and responsible capital stewardship [13][21] - The company plans to expand its marine offering and property insurance lines, leveraging its strong relationships and market position [30][32] - Hamilton aims to maintain a disciplined underwriting culture while exploring growth opportunities in specialty insurance [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging operating environment, citing strong client relationships and a well-diversified portfolio [29][36] - The company anticipates stable renewals in the reinsurance market, with potential rate increases for loss-affected accounts due to recent catastrophes [28][90] - Management remains optimistic about the growth prospects in both the International and Bermuda segments, supported by recent ratings upgrades [19][56] Other Important Information - Hamilton repurchased 10.6 million shares at a total cost of $138 million during 2024, enhancing shareholder value [22][68] - The company reported total assets of $7.8 billion at year-end 2024, a 17% increase from the previous year [70] Q&A Session Summary Question: Insights on the underlying loss ratio in the quarter - Management noted no large losses in the quarter and emphasized looking at the full year for a better indication of performance [74][75] Question: Details on casualty reserves and movements - Management indicated modest movements in reserves, with a small adverse development of $1 million in the Bermuda segment [77][78] Question: Interest in casualty business and pricing adequacy - Management highlighted a strategic shift towards casualty reinsurance since 2021, taking advantage of favorable market conditions [82][84] Question: Competitive environment in property insurance - Management acknowledged recent competition but maintained that rates remain attractive despite some decreases from all-time highs [88][90] Question: Updates on reserves related to the Ukraine conflict - Management confirmed confidence in the strength of reserves related to the Ukraine loss, with no significant changes [94][96] Question: Insights on Hamilton Select and pricing power - Management reported increased submissions and a favorable market environment in the small to midsize hard-to-place space [98][99] Question: Demand from primary insurers post-California wildfires - Management indicated that while no new demand has been seen yet, underwriting will be approached more cautiously moving forward [101] Question: Split of estimated losses from California wildfires - Management indicated that the losses are predominantly a reinsurance event for the company [106] Question: Clarification on investment portfolio performance - Management explained that the non-controlling interest reflects incentive fees related to strong performance in the Two Sigma fund [108] Question: Growth in net-to-gross ratio - Management noted that the growth in the net-to-gross position was a result of using IPO proceeds to retain more business, expecting it to remain flat in the near term [112][113] Question: Growth outlook for third-party fee income - Management clarified that fee income is driven by performance fees, which can vary based on catastrophe activity throughout the year [115]