On May 8, 2024, Hamilton Insurance Group Ltd (HG, Financial) disclosed its first-quarter financial results, revealing a substantial increase in net income and continued underwriting profitability. The detailed earnings report is accessible through the company's 8-K filing.
Hamilton Insurance Group Ltd, a global player in the specialty insurance and reinsurance market, operates under three main platforms: Hamilton Global Specialty, Hamilton Re, and Hamilton Select. These platforms allow the company to engage in diverse underwriting activities across its International and Bermuda segments.
Financial Highlights and Performance Metrics
The company reported a significant net income of $157.2 million for Q1 2024, a substantial increase from $51.5 million in the same quarter the previous year. This performance translates to an earnings per share of $1.38, comfortably surpassing the analyst estimate of $1.06. The reported net income also exceeded the estimated figure of $113.96 million, marking a strong quarter for Hamilton.
Hamilton's gross premiums written saw a remarkable year-over-year increase of 34.1%, totaling $721.9 million. This growth was driven by both the International and Bermuda segments, with net premiums earned rising by 35.7% to $385.3 million. The company's strategic operations and market positioning contributed significantly to these results, particularly noted in the robust growth of underwriting income which stood at $32.5 million.
The insurer's combined ratio, an essential indicator of profitability in the insurance industry, was 91.5%. A combined ratio under 100% indicates that the company is making an underwriting profit, highlighting efficient operations despite the challenges posed by significant claims during the quarter.
Investment and Underwriting Results
Hamilton's investment income reached $147.8 million, with the majority derived from returns on the Two Sigma Hamilton Fund. This performance underscores the strength of Hamilton's investment strategy, contributing to an annualized return on average equity of 29.5%.
Segment-wise, the International and Bermuda segments both reported increases in gross premiums written by 29.8% and 37.8%, respectively. The attritional loss ratio in both segments saw increases due primarily to significant losses from the Francis Scott Key Baltimore Bridge collapse.
Balance Sheet and Shareholder Equity
As of March 31, 2024, Hamilton reported total assets of $7.35 billion, up from $6.67 billion at the end of 2023. Shareholders’ equity also saw a healthy increase to $2.2 billion, up from $2.05 billion, with book value per share rising to $19.90 from $18.58.
Looking Ahead
CEO Pina Albo expressed confidence in the company's trajectory, citing the sixth consecutive quarter of underwriting profitability and double-digit growth. The recent upgrade by AM Best is expected to further enhance market opportunities.
Hamilton Insurance Group Ltd's robust first-quarter performance, characterized by significant growth in premiums and profitability, positions the company well for sustained success in the competitive insurance landscape. Investors and stakeholders may look forward to continued strategic execution and market expansion.
For more detailed information, including future outlooks and operational strategies, stakeholders are encouraged to view the full earnings report and participate in the upcoming conference call scheduled for May 9, 2024.
Explore the complete 8-K earnings release (here) from Hamilton Insurance Group Ltd for further details.
