Hamilton Insurance Group Ltd Reports Robust Q3 2023 Results with Net Income of $43.6 Million

Strong Growth in Gross Premiums and Significant Improvement in Combined Ratio

  • Hamilton Insurance Group Ltd (HG) announces a net income of $43.6 million for Q3 2023.
  • Gross premiums written increased by 18.3% year-over-year to $474.1 million.
  • Combined ratio improved dramatically to 92.6% from 122.5% in Q3 2022.
  • Book value per share increased to $17.35, marking a 7.5% rise since the end of 2022.
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On December 5, 2023, Hamilton Insurance Group Ltd (HG, Financial) released its 8-K filing, revealing a substantial increase in net income and gross premiums written for the third quarter ended September 30, 2023. The company's CEO, Pina Albo, expressed pride in the team's achievements, particularly in underwriting profitability, following the recent initial public offering.

Financial Performance Overview

Hamilton Insurance Group Ltd (HG, Financial) reported a net income of $44 million for the quarter, with a significant year-over-year improvement from a net loss of $136.1 million in Q3 2022. The company's annualized return on average equity stood at 9.8%. The growth in gross premiums written was a robust 18.3%, totaling $474.1 million. The overall combined ratio, a key measure of underwriting profitability, was a strong 92.6%, with both the International and Bermuda segments showing solid performance.

Income Statement Highlights

The company's underwriting income was $24.9 million, a remarkable turnaround from a loss of $66.1 million in the same quarter of the previous year. Catastrophe losses amounted to $7.2 million, reflecting the impact of various natural disasters. Net investment income contributed positively with $46.3 million, driven by a return of $51.3 million from the Two Sigma Hamilton Fund.

Balance Sheet and Shareholders' Equity

Hamilton Insurance Group Ltd (HG, Financial) reported total invested assets and cash of $3.8 billion, up from $3.4 billion at the end of 2022. Shareholders' equity also saw an increase to $1.8 billion from $1.7 billion at the end of the previous year. The book value per share rose to $17.35, a 7.5% increase since December 31, 2022.

Segment Performance

The International Segment saw gross premiums written increase by 14.1%, driven by growth in specialty insurance and reinsurance classes. The Bermuda Segment's gross premiums written increased by 26.9%, primarily due to expanded participation and improved pricing on casualty reinsurance and property insurance lines.

Investments and Conference Call

Hamilton Insurance Group Ltd (HG, Financial) highlighted its total investments at $2.96 billion and announced a conference call to discuss the financial results, providing an opportunity for investors and analysts to gain further insights into the company's performance.

Analysis and Future Outlook

The third-quarter results demonstrate Hamilton Insurance Group Ltd (HG, Financial)'s strategic focus on underwriting profitability and growth in premium volumes. The company's improved combined ratio and net income reflect a successful transformation in its business operations. With the recent capital raise from its initial public offering, Hamilton is well-positioned to capitalize on market opportunities and expand its specialty insurance and reinsurance offerings.

Hamilton Insurance Group Ltd (HG, Financial) remains committed to leveraging its underwriting platforms in Bermuda, at Lloyd’s, and in the US to drive future growth. The company's solid financial position and strategic initiatives suggest a positive outlook for the upcoming quarters.

For detailed financial information, the full earnings report can be accessed through the company's 8-K filing.

Explore the complete 8-K earnings release (here) from Hamilton Insurance Group Ltd for further details.