Hamilton Insurance Group mulls IPO, sale

Bermuda-based  Hamilton Insurance Group is exploring “strategic options”, including an initial public offering (IPO) or a private sale, according to a Reuters June 7 report.

The re/insurer has been in discussions with potential advisers amid an increasing trend of transactions in the sector. However, talks are at an early stage, and no formal sale process has been initiated or announced by Hamilton.

If a transaction does materialise, it is expected to take place after the conclusion of the hurricane season in November, Reuters cited a source familiar with the matter who spoke on condition of anonymity to describe the private discussions.

According to the source cited by Reuters, a potential transaction could place Hamilton’s value at over $2 billion. As of December, the group’s book value stood at approximately $1.7 billion. It is worth noting that listed peers typically trade at a premium compared to their book value.

Bermuda-based Fidelis Insurance filed a preliminary IPO prospectus with the US Securities and Exchange Commission (SEC) in April, as it looks to expand presence in bespoke and specialty. In May, Everest Re raised $1.3 billion in fresh equity to accelerate growth plans in a deal that quickly upsized during pricing and taking the firm to a $1.5 billion gross take. Earlier this year, Houston-based specialty insurer Skyward Specialty priced its upsized IPO to raise approximately $134 million to increase its capitalisation and financial flexibility.

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