Hamilton Insurance Group (HG) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $78.3 million ($0.74 per diluted share), up from $43.6 million in Q3 2023, despite $38 million in catastrophe losses from Hurricane Helene and other events.

• Gross premiums written rose 16.7% year-over-year to $553.4 million for Q3 2024, with Bermuda segment particularly strong due to an AM Best rating upgrade.

• Underwriting income reached $29.1 million with a group combined ratio of 93.6% for the quarter.

• Book value per share increased 22.8% since year-end 2023, reaching $22.82 at September 30, 2024.

• Annualized ROE was 22.4% year-to-date, and 13.8% for Q3 2024.

Financial highlights

• Net income of $78.3 million ($0.74 per diluted share) in Q3 2024, up from $43.6 million ($0.41 per share) in Q3 2023.

• Gross premiums written for the first nine months rose 24% to $1.9 billion from $1.5 billion year-over-year.

• Net premiums earned for Q3 2024 were $448.8 million, up 33.2% year-over-year.

• Net investment income was $83 million in Q3, up from $46 million in Q3 2023.

• Book value per share at $22.82, up 22.8% from year-end 2023.

Outlook and guidance

• Management expects continued double-digit growth in specialty insurance and reinsurance, including international segment, supported by favorable rate environments.

• AM Best rating upgrade expected to drive 10%-15% premium uplift into 2025.

• Estimated net losses from Hurricane Milton for Q4 2024 are expected to range from $30 million to $70 million.

• Hamilton expects to remain exempt from Bermuda’s new 15% corporate income tax until at least 2030.

• Guidance for international segment growth remains unchanged, with focus on underwriting discipline.