Hamilton Insurance Group (HG) Q4 2024 earnings summary

Executive summary

• Net income reached $400.4 million for 2024, up 55% year-over-year, with an 18.3% return on average equity and book value per share rising 23.5% to $22.95.

• Gross premiums written grew 24.2% to $2.4 billion, with strong performance in both international and Bermuda segments.

• Maintained a disciplined underwriting approach, resulting in a combined ratio of 91.3% for the year despite significant catastrophe losses.

• Investment portfolio delivered $361.9 million in net investment income, including a 16.3% return from the Two Sigma Hamilton Fund.

• Repurchased $137.6 million in common shares during 2024, including a large block at a 40% discount to book value.

Financial highlights

• Full-year net income of $400.4 million ($3.67 per diluted share), up from $258.7 million in 2023.

• Gross premiums written increased by $471.5 million (24.2%) year-over-year; net premiums earned rose 31.6%.

• Underwriting income reached $149.4 million for 2024, up from $130 million in 2023.

• Book value per share increased to $22.95, a 23.5% rise from year-end 2023; total shareholders' equity reached $2.3 billion.

• Fourth quarter net income was $34 million, with an annualized ROE of 5.8%, impacted by higher catastrophe losses.

Outlook and guidance

• Anticipates higher demand and rate increases for loss-affected property cat accounts at mid-year renewals.

• Expects continued growth opportunities in specialty insurance and U.S. E&S markets.

• Corporate expenses projected to decrease to $50–$55 million per year.

• Management expressed confidence in future prospects, citing business diversification, underwriting discipline, and favorable market conditions.