Hamilton rides investments to turn $126m profit after IPO

Hamilton insurance Group, which went public last year, turned a $126.9 million profit in the fourth quarter, largely driven by a jump in investment income. 

The specialty re/insurer’s fourth quarter contrasted with a loss of $59 million in the same period in 2022. For the year, Hamilton produced a profit of $258.7 million compared to a loss of $97.9 million in 2022. 

In the quarter, the company had total net investment income including realised and unrealised gains of $120.2 million compared to a loss of $59.6 million. For the year, the company earned $239 million compared to $64.9 million in 2022. 

“2023 was a year that truly exemplified the transformation of Hamilton’s business,” said Pina Albo, Hamilton chief executive officer. “Our talented team demonstrated our ability to deliver strong results and grow at the right time and in the right lines, all while strengthening our relationships with brokers and clients.”

On the underwriting side, the company saw gross written premiums rise to $433.8 million compared to  $341.2 million in the quarter. The company’s losses increased to $195 million from $161 million. 

For the quarter, the company had underwriting income of $36 million, down from $38.6 million in the same period in 2022. The company’s combined ratio rose to 90.2% from 87.6% but for the year, it improved from  102.8% to 90.1%.  

For the year, the company turned an underwriting profit of $129.8 million compared to a loss of $31.7 million in 2022. 

By segment, the  company’s international underwriting had an underwriting profit of $1.8 million compared to a profit of $15.6 million in the previous year as its combined ration rose to 99.1% compared to 90.9%. 

Gross written premiums rose by $39.2 million or 16.7% to $273.5 million, driven by growth in specialty insurance and reinsurance and casualty insurance. 

In the Bermuda segment, the company’s gross premiums written rose 49.9% to $160 million, largely on casualty reinsurance growth. 

The underwriting profit rose by 49% to $34.1 million and the combined ratio improved from 83.6% to 79.6%. 

For the year, the international segment saw gross written premiums rise 18.5% to $1.1 billion and it produced a profit of $36.9 million with a combined ration of 94.7%. The Bermuda segment had GWP of $845.5 million, up 18.5% and turned a profit of $92.9 million compared to a loss of $51.9 million in 2022.   

The company also recorded an income tax benefit of $35.1 million, reflecting the enactment of the Bermuda Corporate Income Tax Act of 2023. 

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