Hamilton Insurance Group (HG) Q2 2024 earnings summary

Executive summary

• Net income reached $131.1 million for Q2 2024, with annualized ROAE of 23.6% and a record low combined ratio of 84.4%.

• Gross premiums written rose 19.9% year-over-year to $603.3 million for Q2 2024, with net premiums earned up 26.4% to $418.8 million.

• Both international (specialty insurance) and Bermuda (reinsurance) segments contributed to underwriting profitability, with combined ratios of 91% and 77.4%, respectively.

• Seven consecutive quarters of underwriting profit, reflecting focus on strategic growth and profitability.

• Book value per share increased 18.2% since year-end 2023, reaching $21.96.

Financial highlights

• Q2 diluted EPS was $1.20, up from $0.35 in Q2 2023; YTD diluted EPS was $2.57, up from $0.84.

• YTD net income totaled $288.3 million, with a 26.9% annualized ROE.

• YTD gross premiums written increased 27.0% to $1,325.2 million; net premiums earned rose 30.7% to $804.1 million.

• Net investment income was $96 million in Q2, with the Two Sigma Hamilton Fund contributing $76 million; YTD net investment income was $243.5 million, with $218.5 million from the fund.

• Book value per share at June 30, 2024, was $21.96, up from $16.90 a year ago.

Outlook and guidance

• Management expects continued strong rate environment and attractive terms in property CAT and casualty reinsurance into 2025.

• International segment projected to grow 15%-20% for the full year.

• Corporate expense guidance remains at $50 million annualized.

• Investment strategy will remain balanced between fixed income and the TS Hamilton Fund, with flexibility to adjust allocations.

• Management remains focused on underwriting profitability and strategic growth, citing a favorable market environment.