Hamilton grows Q2 premium 17%, Middle East conflict hits margin
Bermuda-based specialty re/insurer Hamilton Insurance Group has grown second-quarter gross written premium 17% to $831 million, while conflict-related losses in the Middle East and property re/insurance rate pressure weighed on its combined ratio and net income.
Gross premium written for Q2 saw a 17% increase to $831 million from $712 million the year prior.
Hamilton’s combined ratio worsened by 8.2 points to 95% driven mostly by a 5.9 point increase in its current year catastrophe loss ratio, thanks to losses out of the conflict in the Middle East.
Catastrophe losses (current and prior year), net of reinsurance, were $49.9 million, primarily driven by the conflict ($45.7 million) and unfavourable prior year development ($4.2 million).
Net income for the quarter was down 23% to $144 million; however for the six months ended June 30, net income saw a 9% improvement to $277 million.
Favourable catastrophe losses for the second quarter resulted in a 16.2 point improvement in the Bermuda segment combined ratio 87.4%, while the international segment saw a slight deterioration in margin to a 97.3% combined ratio.
Earlier this year Hamilton set up its first reinsurance sidecar, a multi-year casualty platform with ceded premium over the duration of the structure projected to be approximately $300 million.
CEO Pina Albo’s (pictured) employment term has been extended through to the end of 2029, after which her contract will continue to renew automatically for successive one-year periods.
David A Brown, chairman of Hamilton’s board of directors, said: “Under Pina’s leadership, Hamilton has built a differentiated platform and delivered strong performance. Extending her employment term reflects the board’s confidence in her exceptional leadership and our commitment to executing the company’s long-term strategy for the benefit of our shareholders.”
Albo said of the Q2 earnings: “Hamilton delivered another quarter of strong results, with net income of $144 million, a 21% annualised return on average equity, a 95% combined ratio, and strong investment income. Gross premiums written increased 17%, reflecting our continued focus on margin quality, thoughtful risk selection, and long-term value creation.”
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