Hamilton Insurance Group (HG) Q1 2025 earnings summary

Executive summary

• Net income was $80.9 million for Q1 2025, 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.

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

• Investment returns were strong at $167.3 million, including $103.6 million from Two Sigma Hamilton Fund.

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

Financial highlights

• Net income of $80.9 million ($0.77 per diluted share) vs. $157 million ($1.38 per share) in Q1 2024.

• Combined ratio rose to 111.6% from 91.5% last year, mainly due to catastrophe losses.

• Loss ratio increased to 79.2% (up from 60.3%); expense ratio to 32.4% (up from 31.2%).

• Net premiums earned increased 29.5% year-over-year to $498.9 million.

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

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 plans disciplined growth in U.S. E&S and global reinsurance, leveraging diversified platforms and technology.

• Investment strategy remains focused on balanced allocation and flexibility.

• Loss-affected accounts at mid-year renewals to see rate increases; stable pricing expected elsewhere.