Hamilton sees major turnaround with Q3 profit following recent IPO
Bermuda-based specialty re/insurer Hamilton Insurance Group rebounded with a $44 million profit in the third quarter.
This comes after its initial public offering last month, which raised $80 million, and marks a significant turnaround from the $136 million loss in the same period in 2022.
The company's gross written premiums rose 18% from $401 million to $474 million in the period.
It recorded a $25 million underwriting profit compared to a $136 million loss a year earlier while the combined ratio dropped to 92.6% from 122.5%.
Pina Albo, CEO of Hamilton, said: “It has been a momentous few weeks for Hamilton having closed our initial public offering on November 14, and we are pleased to be reporting our first quarterly results as a public company.
“For the quarter ended September 30, 2023, Hamilton recorded net income of $44 million and a combined ratio of 92.6%. For the nine months year to date, net income was $132 million and the combined ratio was 90.2%.”
She added: “These results reflect the remarkable transformation of our business over the past few years, notably our commitment to underwriting profitability. I am incredibly proud of the Hamilton team and what we have achieved together.
“Hamilton will continue to lean into the current market with the benefit of newly raised capital. Our underwriting platforms in Bermuda, at Lloyd’s and in the US are focused on specialty insurance and reinsurance, and we see tremendous opportunity to expand our business and relationships with key customers and intermediaries.”
Hamilton raised $80 million in its IPO, which valued the company at $1.7 billion.
The company said it had net investment income of $46.3 million with its Two Sigma Hamilton Fund returning of $51.3 million while its fixed income portfolio lost $7.8 million and it had other investment income of $2.8 million.
Gross premiums written increased by $37.9 million, or 14.1% in the international segment, and $35.4 million, or 26.9% in the Bermuda segment.
Catastrophe losses (current and prior year), net of reinsurance, were $7.2 million, or 2.1 points, driven by the Hawaii wildfires, Hurricane Idalia, Vermont Floods and certain smaller wind events, partially offset by favourable development on convective storms from earlier this year and favourable prior year development.
Net favourable attritional prior year reserve development was $0.4 million.
In the international segment, growth was driven in the specialty insurance and reinsurance classes and hardening rates on property insurance classes and was partially offset by a modest decrease in casualty insurance.
Net favourable attritional prior year reserve development was $9.5 million or 5.3 points driven by reserve releases on our specialty and property classes of business.
In the Bermuda segment, gross premiums rose due to expanded participation and improved pricing on the renewed casualty reinsurance and property insurance lines and new business.
Catastrophe losses (current and prior year), net of reinsurance, were $2.5 million favourable, driven by favourable development on convective storms from earlier this year and favourable prior year development, partially offset by the Hawaii wildfires and Hurricane Idalia.
Net unfavourable attritional prior year reserve development was $9.1 million or 5.7 points due to unfavourable development primarily on its discontinued property reinsurance business.
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