On August 7, 2024, Hamilton Insurance Group Ltd (HG, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Hamilton Insurance Group Ltd is a specialty insurance and reinsurance company operating globally with underwriting operations in Lloyd's, Ireland, Bermuda, and the United States. The company operates through three principal underwriting platforms: Hamilton Global Specialty, Hamilton Select, and Hamilton Re, categorized into two reporting business segments: International and Bermuda.
Performance Overview
Hamilton Insurance Group Ltd (HG, Financial) reported a net income of $131.1 million, or $1.20 per diluted share, significantly surpassing the analyst estimate of $0.75 per share. The company achieved an annualized return on average equity of 23.6% and recorded an all-time low combined ratio of 84.4%. Gross premiums written increased by 19.5% to $603.3 million, while net premiums earned rose by 26.3% to $418.8 million.
Key Financial Achievements
Hamilton Insurance Group Ltd (HG, Financial) demonstrated robust financial performance with underwriting income of $65.3 million and net investment income of $95.7 million. The company’s gross premiums written and net premiums earned saw significant increases, driven by growth in both the International and Bermuda segments. The combined ratio improved to 84.4%, reflecting efficient underwriting and cost management.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Gross premiums written | $603.3 million | $505.0 million | $98.3 million |
| Net premiums earned | $418.8 million | $331.5 million | $87.3 million |
| Underwriting income | $65.3 million | $34.9 million | $30.4 million |
| Net income | $131.1 million | $36.8 million | $94.3 million |
| Combined ratio | 84.4% | 89.5% | (5.1 pts) |
Balance Sheet and Cash Flow
As of June 30, 2024, Hamilton Insurance Group Ltd (HG, Financial) reported total invested assets and cash of $4.4 billion, compared to $4.0 billion at the end of 2023. The company’s total shareholders’ equity stood at $2.2 billion, up from $2.0 billion as of December 31, 2023. The book value per share increased by 18.2% to $21.96.
Segment Performance
In the International segment, gross premiums written increased by 12.2% to $311.6 million, while net premiums earned rose by 22.1% to $215.6 million. The Bermuda segment saw a 28.4% increase in gross premiums written to $291.7 million and a 31.2% rise in net premiums earned to $203.1 million. Both segments contributed to the overall improvement in underwriting income and combined ratio.
Commentary and Analysis
"This was an outstanding quarter for Hamilton by any metric. We reported $131.1 million of net income, equating to an annualized return on average equity of 23.6%. We recorded an all-time low combined ratio of 84.4%, had strong net investment income of $95.7 million, and continued our targeted growth in this favorable market environment. I am exceptionally proud of the Hamilton team for remaining laser focused on underwriting profitability and strategic growth, as well as realizing the objectives we shared with investors in the context of our IPO in November of last year." - Pina Albo, CEO of Hamilton
Conclusion
Hamilton Insurance Group Ltd (HG, Financial) has delivered a strong performance in the second quarter of 2024, surpassing analyst estimates and demonstrating significant growth in premiums and net income. The company's strategic focus on underwriting profitability and market expansion has resulted in improved financial metrics and a robust balance sheet. Investors and stakeholders can look forward to continued growth and stability from Hamilton Insurance Group Ltd (HG).
Explore the complete 8-K earnings release (here) from Hamilton Insurance Group Ltd for further details.
