Hamilton will reach for new capital in IPO, then invest in growth

Bermudian specialty re/insurer  Hamilton Insurance Group will head to an IPO of new and existing shares ahead of a hoped-for debut on the New York Stock Exchange, registration documents filed to American securities regulators indicate.

Funds raised will be used to capture what Hamilton believes are strong market conditions, management said in its prospectus.

“We intend to use the net proceeds to us from this offering to make capital contributions to our insurance and reinsurance operating subsidiaries, for use by our three operating platforms which should enable us to take advantage of ongoing favourable market conditions in the markets in which we operate by writing more business pursuant to our strategy,” management said.

Hamilton sees “significant opportunities to capture profitable risk-adjusted returns from sustained favourable property and casualty insurance and reinsurance market conditions due to our scale, disciplined underwriting, and financial and operating flexibility,” management said.

Hamilton should find its sweet spots in continued growth of the E&S market, a mid-term outlook for a hard market, greater overall demand given the macro environment and a supportive supply-demand equation, management argued in its preliminary offer documentation.

No pricing or volume for the offer has yet been hinted at in the first round documentation and Hamilton gave the standard warnings about the deal remaining subject to “market and other conditions”.

Hamilton had previously given indication that such a submission to markets was on its way.

Barclays and Morgan Stanley are acting as Joint Lead Bookrunning Managers for the proposed offering.

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