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, with strong premium growth and a combined ratio of 93.6% despite catastrophe losses.

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

• Achieved double-digit top-line growth, with gross premiums written rising 16.7% year-over-year to $553.4 million in Q3 and a CAGR of 28% from 2019 to 2024.

• Maintains a scaled, diversified global specialty insurance and reinsurance operation, leveraging disciplined, data-driven underwriting and proprietary technology.

• Strong balance sheet and significant financial flexibility support continued growth.

Financial highlights

• Net income for the first nine months of 2024 was $366.5 million, with diluted EPS of $3.33.

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

• Combined ratio improved to 90% for the first nine months of 2024, down from 126% in 2019.

• Net investment income for Q3 2024 was $83 million, up from $46 million in Q3 2023.

• Shareholders’ equity stood at $2.3 billion as of September 30, 2024.

Outlook and guidance

• Management expects continued double-digit growth in specialty insurance and reinsurance, especially in the U.S. E&S and global reinsurance markets, 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.

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

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