Core Insights - The China Actuarial Association released the "China Life Insurance Experience Table (2025)" during the Financial Street Forum, aimed at reflecting the trends and characteristics of mortality risk in the insurance industry [1] Group 1: Industry Developments - The release of the experience life table is part of the efforts to implement the State Council's opinions on enhancing regulation and preventing risks while promoting high-quality development in the insurance sector [1] - The experience life table serves as a crucial tool for pricing insurance products, evaluating reserves, and managing risks within the industry [1] Group 2: Regulatory Context - The development of the life table was conducted under the guidance of the Financial Regulatory Administration, indicating a collaborative effort between the actuarial community and regulatory bodies [1]

Financial Data and Key Metrics Changes - Hamilton Insurance Group reported net income of $187 million for Q2 2025, representing an annualized return on average equity of 30.2%, compared to $131 million and 23.6% in Q2 2024 [5][19] - Operating income was $162 million, equal to $1.55 per diluted share, with an annualized operating return on average equity of 26.1% [19] - Book value per share increased by 8.3% to a record $25.55 [19][34] Business Line Data and Key Metrics Changes - Gross premiums written increased by 18% in Q2 2025, reaching $1.6 billion compared to $1.3 billion in Q2 2024 [19][20] - Hamilton Global Specialty saw gross premiums written grow by 7%, while Hamilton Select experienced a significant growth of 52% year-over-year [12][23] - The Bermuda segment's gross premiums written grew by 21%, driven by casualty and property reinsurance classes [25][26] Market Data and Key Metrics Changes - The international segment's gross premiums written grew by 13%, with underwriting income of $27 million and a combined ratio of 89.3% [23] - The Bermuda segment's combined ratio increased to 84.3% from 77.4% in the prior year, primarily due to higher loss ratios [26][27] - The overall combined ratio for the group was 86.8%, compared to 84.4% in Q2 2024 [21] Company Strategy and Development Direction - The company is focused on proactive cycle management, targeting attractive underwriting opportunities while reducing exposure in less favorable areas [10][17] - Recent management appointments reflect a commitment to internal talent development and strategic succession planning [6][7] - The company aims to maintain a disciplined underwriting culture to ensure risk-adjusted returns [64][65] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance trajectory, citing strong client relationships and a well-diversified platform [17] - The underwriting environment remains attractive, with continued strong underlying rate increases in casualty classes [14][56] - The company remains vigilant on loss reserves, having strengthened certain casualty reserves by $18 million this quarter [15][27] Other Important Information - Total investment income for Q2 2025 was $149 million, up from $96 million in Q2 2024, with significant contributions from the Two Sigma Hamilton Fund [29] - The company repurchased $35 million of shares in Q2 2025, with an additional $15 million repurchased post-quarter [32] Q&A Session Summary Question: Can you provide more color around the reserve increases and the discontinued lines? - Management noted that the $18 million reserve increase was manageable, representing about 0.5% of overall reserves, primarily related to discontinued lines from 2020 and prior [38][39] Question: What did you see in terms of property pricing this quarter? - Management indicated that property pricing remains attractive despite some pressure, particularly in larger accounts, while maintaining discipline in underwriting [44][46] Question: Are you seeing a lot of MGA competition in your Select business? - Management confirmed that while there is some impact from MGAs, they are still seeing a healthy flow of business and are comfortable with their underwriting approach [51][52] Question: How should we think about tax rates going forward? - The effective tax rate remains in the low single digits due to a five-year deferral on the global minimum tax, which starts in 2030 [81][82]