Hamilton Insurance Group (HG) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $80.9 million, with annualized ROAE of 13.7%, despite $142.8–$159.7 million in net losses from California wildfires.

• Gross premiums written rose 16.8%–17% year-over-year to $843.3 million, with both Bermuda and International segments posting double-digit growth.

• Investment returns were strong at $167–$204 million, including $103.6 million from the Two Sigma Hamilton Fund.

• Book value per share increased 2.8%–3% to $23.59.

• $10.3 million in share buybacks executed during the quarter.

Financial highlights

• Net income of $80.9 million ($0.77 per diluted share) in Q1 2025, down from $157.2 million in Q1 2024.

• Combined ratio deteriorated to 111.6% from 91.5% year-over-year, mainly due to catastrophe losses.

• Loss and loss adjustment expense ratio rose to 79.2% (up 18.9 pts); acquisition cost ratio increased to 23.4%; other underwriting expense ratio declined to 9.0%.

• Book value per share: $23.59; tangible book value per share: $22.69.

• Return on average common shareholders' equity was 3.4%, down from 7.4% in the prior year quarter.

Outlook and guidance

• Double-digit top-line growth expected to continue, supported by favorable market conditions and AM Best rating upgrade.

• Guidance for $80 million in new premium from AM Best upgrade reaffirmed.

• Management expects continued growth opportunities in both insurance and reinsurance, with disciplined expansion in U.S. E&S and global reinsurance.

• Investment strategy remains focused on balanced allocation and flexibility.

• No near-term plans to pay cash dividends on Class B common shares.