Hamilton Reports 2024 Third Quarter Results
Net Income of $78 million; Annualized YTD Return on Average Equity of 22.4%
PEMBROKE, Bermuda--(BUSINESS WIRE)--November 06, 2024--
Hamilton Insurance Group, Ltd. (NYSE: HG; "Hamilton" or "the Company") today announced financial results for the third quarter ended September 30, 2024.
Commenting on the results, Pina Albo, CEO of Hamilton, said:
"Just over a year ago we launched the initial public offering for Hamilton, marking our transition from private company to the New York Stock Exchange listed firm we are today. At the time of our IPO, we re-affirmed the achievement of sustainable underwriting profitability as one of our key objectives.
Our strong results this quarter and on a year to date basis demonstrate our ability to execute this important goal. This quarter, Hamilton reported a combined ratio of 93.6%, despite catastrophe losses from Hurricane Helene and other large loss events. Both of our segments, International and Bermuda, produced profitable underwriting results. On a year to date basis, Hamilton recorded a combined ratio of 89.9% and an annualized return on average equity of 22.4%, demonstrating our underwriting discipline and the value of our diversified and growing franchise."
Consolidated Highlights -- Third Quarter
-- Net income of $78.3 million, or $0.74 per diluted share;
-- Annualized return on average equity of 13.8%;
-- Gross premiums written of $553.4 million, an increase of 16.7% compared
to the third quarter of 2023;
-- Net premiums earned of $448.8 million, an increase of 33.2% compared to
the third quarter of 2023;
-- Combined ratio of 93.6%;
-- Underwriting income of $29.1 million;
-- Net investment income of $82.8 million, comprised of fixed income, short
term, cash and cash equivalent returns of $93.9 million and a Two Sigma
Hamilton Fund loss of $11.1 million; and
-- Corporate expenses of $14.1 million, which includes $1.9 million of
compensation costs related to the Value Appreciation Pool.
Consolidated Highlights -- Year to Date
-- Net income of $366.5 million;
-- Annualized return on average equity of 22.4%;
-- Gross premiums written of $1.9 billion, an increase of 23.8% compared to
the same period in 2023;
-- Net premiums earned of $1.3 billion, an increase of 31.5% compared to the
same period in 2023;
-- Combined ratio of 89.9%;
-- Underwriting income of $126.9 million;
-- Net investment income of $326.3 million, comprised of Two Sigma Hamilton
Fund returns of $207.5 million, and fixed income, short term and cash and
cash equivalents returns of $118.8 million;
-- Corporate expenses of $41.8 million, which includes $7.5 million of
compensation costs related to the Value Appreciation Pool; and
-- Book value per share of $22.82, an increase of 22.8% compared to December
31, 2023.
Hurricane Milton
-- The Company estimates that losses from Hurricane Milton, net of
reinsurance, will be in the range of $30 million to $70 million. The
estimated losses for this event will be reported in the Company's fourth
quarter 2024 financial results.
Consolidated Underwriting Results -- Third Quarter
For the Three Months Ended
----------------------------------------------------
($ in thousands,
except for per
share amounts and
percentages) September 30, 2024 September 30, 2023 Change
-------------------- -------------------- --------
Gross premiums
written $ 553,401 $ 474,123 $ 79,278
Net premiums
written 477,896 383,566 94,330
Net premiums
earned 448,795 337,036 111,759
Underwriting
income (loss) $ 29,094 $ 24,866 $ 4,228
Combined ratio 93.6% 92.6% 1.0 pts
Net income (loss)
attributable to
common
shareholders $ 78,250 $ 43,583 $ 34,667
Income (loss) per
share
attributable to
common
shareholders -
diluted $ 0.74 $ 0.41
Book value per
common share $ 22.82 $ 17.35
Return on average
common equity -
annualized 13.8% 9.8%
For the Three Months Ended
-----------------------------------------------------
Key Ratios September 30, 2024 September 30, 2023 Change
-------------------- -------------------- ---------
Attritional loss
ratio - current
year 53.2% 54.8% (1.6 pts)
Attritional loss
ratio - prior
year (0.7%) (0.1%) (0.6 pts)
Catastrophe loss
ratio - current
year 11.5% 3.9% 7.6 pts
Catastrophe loss
ratio - prior
year (3.0%) (1.8%) (1.2 pts)
------------ ---- ------------ ---- ---------
Loss and loss
adjustment expense
ratio 61.0% 56.8% 4.2 pts
Acquisition cost
ratio 22.8% 23.3% (0.5 pts)
Other underwriting
expense ratio 9.8% 12.5% (2.7 pts)
------------ ----- ------------ ----- ---------
Combined ratio 93.6% 92.6% 1.0 pts
============ ===== ============ ===== =========
-- Gross premiums written increased by $79.3 million, or 16.7%, to $553.4
million with an increase of $18.4 million, or 6.0%, in the International
Segment, and $60.9 million, or 36.5%, in the Bermuda Segment.
-- Net premiums written increased by $94.3 million, or 24.6%, to $477.9
million with an increase of $33.5 million, or 14.3%, in the International
Segment, and $60.8 million, or 40.9%, in the Bermuda Segment.
-- Net premiums earned increased by $111.8 million, or 33.2%, to $448.8
million with an increase of $46.6 million, or 26.1%, in the International
Segment, and $65.1 million, or 41.1%, in the Bermuda Segment.
-- The attritional loss ratio (current year), net of reinsurance, was 53.2%.
The decrease of 1.6 points compared to the same period in 2023 was
primarily driven by the absence of large losses in the current quarter.
-- Net favorable attritional prior year reserve development, net of
reinsurance, was $3.2 million, primarily driven by favorable development
in property and specialty classes, partially offset by unfavorable
development in certain casualty classes, including one specific large
loss.
-- Catastrophe losses (current and prior year), net of reinsurance, were
$38.3 million, driven by Hurricane Helene ($33.9 million), the Calgary
hailstorms ($12.3 million), and Hurricane Debby ($5.5 million), partially
offset by favorable prior year development ($13.4 million).
-- The acquisition cost ratio decreased by 0.5 points compared to the same
period in 2023.
-- The other underwriting expense ratio decreased 2.7 points compared to the
same period in 2023, primarily driven by an increase in net premiums
earned.
International Segment Underwriting Results -- Third Quarter
International
Segment For the Three Months Ended
-------------------------------------------------------
($ in thousands,
except for
percentages) September 30, 2024 September 30, 2023 Change
-------------------- -------------------- -----------
Gross premiums
written $ 325,525 $ 307,140 $ 18,385
Net premiums
written 268,106 234,621 33,485
Net premiums
earned 225,244 178,632 46,612
Underwriting
income (loss) $ 5,423 $ 4,057 $ 1,366
Key Ratios
Attritional loss
ratio - current
year 55.3% 54.6% 0.7 pts
Attritional loss
ratio - prior
year (1.5%) (5.3%) 3.8 pts
Catastrophe loss
ratio - current
year 6.4% 5.1% 1.3 pts
Catastrophe loss
ratio - prior
year (2.4%) 0.4% (2.8 pts)
----------- ----------- -----------
Loss and loss
adjustment
expense ratio 57.8% 54.8% 3.0 pts
Acquisition cost
ratio 26.5% 26.4% 0.1 pts
Other
underwriting
expense ratio 13.3% 16.5% (3.2 pts)
----------- ----------- -----------
Combined ratio 97.6% 97.7% (0.1 pts)
=========== =========== ===========
-- Gross premiums written increased by $18.4 million, or 6.0%, to $325.5
million, primarily driven by growth and improved pricing in property
insurance and specialty insurance and reinsurance classes.
-- Net favorable attritional prior year reserve development, net of
reinsurance, was $3.3 million.
-- Catastrophe losses (current and prior year), net of reinsurance, were
$8.9 million, driven by Hurricane Helene and Hurricane Debby, partially
offset by favorable prior year development.
-- The acquisition cost ratio increased by 0.1 points compared to the same
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November 06, 2024 16:20 ET (21:20 GMT)
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