Financial Data and Key Metrics Changes - Hamilton Insurance Group reported a net income of $81 million for Q1 2025, representing a 13.7% annualized return on average equity, compared to $157 million and 29.5% in Q1 2024 [19][22] - The gross premiums written increased by 17% to $843 million from $722 million year-over-year [21][28] - The combined ratio rose to 111.6% from 91.5% in the prior year, primarily due to catastrophe losses [22][27] - The attritional loss ratio decreased by 5.3 points to 51.9% compared to the first quarter last year [23][28] Business Line Data and Key Metrics Changes - The Bermuda segment's gross premiums written grew by 18% to $473 million, driven by casualty and property classes [27] - The International segment's gross premiums written increased by 15% to $370 million, primarily due to growth in property, casualty, and specialty insurance classes [25][26] - The Bermuda segment reported an underwriting loss of $59 million, while the International segment had an underwriting income of $1 million [25][27] Market Data and Key Metrics Changes - The catastrophe loss ratio for the quarter was 30.2%, with net losses from California wildfires estimated at $143 million [5][22] - The company noted that the property cat business remains attractively priced with improved terms and conditions [9][15] Company Strategy and Development Direction - Hamilton is focusing on selective growth in the casualty line, leveraging its AM Best rating upgrade to capture new business opportunities [8][10] - The company aims to maintain a disciplined approach to underwriting, particularly in casualty, by building strong relationships with key clients [10][54] - Management expressed confidence in navigating economic uncertainties and maintaining double-digit growth in the top line [16][18] Management Comments on Operating Environment and Future Outlook - Management acknowledged ongoing economic and geopolitical uncertainties, including tariffs and potential recession impacts, but remains optimistic about the insurance market's resilience [16][18] - The company anticipates manageable exposure to loss cost inflation, particularly in property lines, and is prepared to adjust its strategies accordingly [17][18] Other Important Information - Total net investment income for Q1 was $167 million, up from $148 million in the same quarter last year [28][29] - The company repurchased $10 million of shares during the quarter, with $112 million remaining under its share repurchase authorization [30][31] Q&A Session Summary Question: Insights on casualty line of business and loss trend assumptions - Management noted strong client response to the AM Best upgrade, with casualty premium growth of $40 million in Q1, indicating low to mid-teens loss trends [37][38] Question: Clarification on combined ratio and attritional loss ratio movements - Management explained that current year attritional loss picks align with expectations, influenced by the mix of business, and advised looking at full-year 2024 loss ratios for guidance [40][42] Question: Impact of business mix on expense ratio - Management indicated that the increase in acquisition expenses was due to a shift in business mix and profit commissions, while other underwriting expenses are expected to decline as the book scales [48][50] Question: Clarification on Two Sigma returns - Management confirmed that the Two Sigma return of 7.9% was year-to-date through April, with a 5.5% return reported through March [56][70] Question: Buyback strategy and growth outlook - Management stated that there are no constraints on growth or buybacks, emphasizing sufficient capital for both initiatives [60][61]

Financial Data and Key Metrics Changes - The first quarter net premium earned was relatively flat compared to 2024, driven by higher renewal premium offset by lower new business and audit premium [7] - Gross premiums written were $212 million, an increase of 1%, while net premiums earned were $183 million, a decrease of 1% [11][12] - Net investment income increased by 20% to $32 million, the highest in the company's history as a publicly traded entity [9][14] - The current accident year loss and LAE ratio on voluntary business increased to 66% from 64% in 2024 [9][12] - The underwriting expense ratio improved to 23.4% from 25% a year ago [10][13] - Adjusted net income increased by 24% to $21.3 million from $17.2 million a year ago [15] Business Line Data and Key Metrics Changes - The increase in gross premiums was primarily due to higher renewal business, partially offset by lower new business and final audit premiums [11][12] - Commission expense decreased to $23 million from $25 million, and the commission expense ratio improved to 12.6% from 13.6% [13] - Underwriting expenses decreased to $43 million from $46 million, contributing to the improved underwriting expense ratio [13] 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% [8] - 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 [25] Company Strategy and Development Direction - The company continues to prioritize profitability over growth and has identified refinements in underwriting and pricing to maintain discipline [17] - There is an ongoing appetite expansion effort to identify areas for profitable growth, with confidence to accelerate this effort [18] - The company is monitoring potential impacts from tariff discussions and the cost of prescription drugs and medical services [18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the ability to maintain a strong customer base despite potential recessionary headwinds [18] - The company is focused on expense management and prudent capital management, with key operating metrics showing improvement [19] - The book value per share increased by 14% to $48.25, and adjusted book value per share increased by 9% to $50.75 over the last twelve months [19] Other Important Information - The Board of Directors authorized a new stock repurchase program for up to $125 million from May 6, 2025, through December 31, 2026 [15][16] - A 7% increase in the quarterly dividend to $0.32 per share was declared, payable on May 28 [15][16] Q&A Session Summary Question: Can you talk about specifics regarding loss trends and how broad they are geographically? - Management noted that the increase in the accident year GLOF and LAE ratio reflects ongoing competitive rate environments and pressure on accident years 2023 and 2024, with a rise in cumulative trauma claims in California [23][24] Question: How about underlying medical inflation and other drivers of medical expenses? - Management indicated that lost time claim frequencies have generally trended downward, although California saw an uptick due to cumulative trauma claims, with overall severity values holding steady [27][28] Question: Is there a macroeconomic contribution to cumulative trauma claims? - Management stated that there is no identifiable macroeconomic cause for the cumulative trauma claims arising from accident year 2024, noting it is a California-specific phenomenon [30][31] Question: What do you think will show up in the NCCI state of the line report regarding industry fundamentals? - Management anticipates that while there are still significant redundancies in the industry, carriers are reducing redundancies less, and internal rates have shown a slight increase [38][39]