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%, driven by 19.5% year-over-year premium growth and strong investment returns.

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

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

• TS Hamilton Fund delivered a 4.3% return in Q2 and 12.9% year-to-date, significantly boosting investment income.

• Operates as a scaled, diversified global specialty insurance and reinsurance group with a disciplined, data-driven underwriting approach.

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.

• Underwriting income was $65.3 million in Q2, up from $34.9 million in Q2 2023.

• Total assets reached $7.6 billion, with shareholders’ equity at $2.24 billion as of June 30, 2024.

Outlook and guidance

• Management expects continued strong rate environment and attractive terms in property CAT and casualty reinsurance into 2025, with disciplined growth in U.S. E&S and global reinsurance markets.

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

• Corporate expense guidance remains at $50 million annualized.

• Focused on sustainable underwriting profitability, strategic growth, technology enablement, and talent attraction.

• Investment strategy will remain balanced between fixed income and the TS Hamilton Fund.