Hamilton Insurance Group Achieves Robust Growth in FY 2024
Bermuda-based re/insurer Hamilton Insurance Group has reported a slightly weaker full-year combined ratio of 91.3% for FY 2024, alongside a substantial rise in underwriting income, which reached $149.4 million. The company’s gross premiums written (GPW) surged to $2.4 billion, marking a 24.2% increase, or $471.5 million, from FY 2023 levels. This growth was primarily driven by a 18.4% increase of $202.9 million in the international segment and a 31.8% rise of $268.6 million in the Bermuda segment.
Net premiums written (NPW) for 2024 experienced a significant 29.8% increase, amounting to $1.9 billion. The international segment contributed $199.2 million, or 25.9%, while the Bermuda segment added $241.5 million, or 34.0%. Meanwhile, net premiums earned (NPE) climbed by 31.6% to $1.7 billion for the fiscal year, driven by a 26.1% increase of $183.4 million in the international segment and a 37.8% boost of $232.8 million in the Bermuda segment.
The company incurred $87.6 million in catastrophe losses, net of reinsurance, due to events such as Hurricane Helene ($52.6 million), Hurricane Milton ($37.8 million), the Calgary hailstorms ($12.9 million), and Hurricane Debby ($5.6 million). These were partially offset by favorable prior-year developments of $21.3 million.
The attritional loss ratio (current year), net of reinsurance, stood at 53.1%, reflecting a rise of 0.9 points compared to FY 2023, primarily due to $37.9 million, or 2.2 points, in losses from the Francis Scott Key Baltimore Bridge collapse.
Hamilton reported a net income of $400.4 million, or $3.67 per diluted share, an impressive 55% increase over the previous fiscal year, with a return on average equity of 18.3% and net investment income of $361.9 million.
Fourth Quarter Highlights
In the fourth quarter, Hamilton achieved a combined ratio of 95.4% and underwriting income of $22.4 million. GPW rose by 25.4%, or $110.1 million, reaching $543.9 million, fueled by a 28.2% increase of $77 million in the international segment and a 20.7% rise of $33.1 million in the Bermuda segment.
NPW for Q4 2024 grew by 24.7%, or $89.7 million, totaling $453.3 million. The international segment saw a 30.2% increase of $65.4 million, while the Bermuda segment experienced a 16.5% rise of $24.2 million.
For the quarter, NPE reached $481.9 million, a 31.6% increase of $115.7 million, with the international segment contributing 25.4%, or $50.5 million, and a 39% rise of $65.2 million in the Bermuda Segment.
Quarterly catastrophe losses, net of reinsurance, were $49.1 million, driven by Hurricane Milton ($37.8 million), Hurricane Helene ($18.7 million), and the Calgary hailstorms ($0.6 million), partially offset by favorable prior-year development of $8 million.
Net investment income for the quarter was $35.7 million, comprising returns of $67 million from the Two Sigma Hamilton Fund, and a loss of $31.3 million in fixed income, short-term, cash, and cash equivalents.
The Q4 2024 attritional loss ratio, net of reinsurance, was 51.2%, a 2-point decrease from Q4 2023, attributed to the absence of large losses in the current quarter. Net favorable attritional prior-year reserve development was $6.3 million, primarily due to positive developments in property classes, partially counterbalanced by modest unfavorable developments in casualty classes.
For Q4 2024, net income was reported at $33.9 million, or $0.32 per diluted share, with an annualized return on average equity of 5.8%.
CEO’s Remarks
Pina Albo, Chief Executive Officer of Hamilton, stated, “2024 was an exceptional year for Hamilton. In our first full year as a public company, our overall financial results were outstanding, with significant contributions from both underwriting and investments. Our net income of $400 million represents a 55% increase over the prior year, and our book value per common share rose by 23.5%.”
“Hamilton’s combined ratio of 91.3%, despite significant large loss events, underscores the advantages of our business diversification and our commitment to underwriting discipline. We achieved this while increasing our gross premiums written by 24%, capitalizing on favorable market conditions. Our investment portfolio delivered $362 million in total returns, highlighted by a remarkable 16.3% return from the Two Sigma Hamilton Fund.”
“I am incredibly proud of our achievements as a Group and am enthusiastic about our future prospects. The dedication of our team and our distinctive culture have positioned Hamilton exceedingly well for the future.”
