Hamilton's Q4 profit drops 73% due to large catastrophe losses
Despite a sharp decline in fourth-quarter net profit, Hamilton's full-year results remained strong, rising 55%, with both quarterly and annual gross written premiums increasing by around 25%.
The Bermuda-based specialty re/insurer reported a 73% year-on-year drop in Q4 net profit, falling from $126.9 million in 2023 to $33.9 million in Q4 2024.
However, fourth-quarter gross written premiums grew by 25.4% year-on-year, reaching $543.9 million.
All of which meant that its Q4 combined ratio worsened to 95.4% in Q4, compared with 90.2% in 2023.
The fourth quarter catastrophe losses net of reinsurance were $49.1 million, driven by Hurricane Milton ($37.8 million), Hurricane Helene ($18.7 million) and the Calgary hailstorms ($0.6 million).
The Q4 net profit plummet did little to dent Hamilton's full-year net income, however, which rocketed by 55% to $400.4 million.
Pina Albo (pictured), CEO of Hamilton, said: “2024 was an exceptional year for Hamilton. In our first full year as a public company, our overall financial results were excellent, with strong contributions from both underwriting and investments. Our net income was $400 million, a 55% increase over prior year, and our book value per common share increased 23.5%.
“Hamilton’s combined ratio of 91.3%, in a year with significant large loss activity, demonstrated the benefits of our business diversification and our sharp focus on underwriting discipline. We achieved this result while also increasing our gross premiums written by 24%, leaning into favourable market conditions.
Full-year underwriting income was $149.4 million, up from $129.9 million in 2023.
GWP for the year rose by nearly a quarter to $2.4 billion, an increase of 24.2% compared with $2 billion in 2023. with an increase of $202.9 million (18.4%) in the International Segment and $268.6 million (31.8%) in the Bermuda Segment.
Hamilton’s combined ratio for 2024 was 91.3%, up 1.2% from 2023's 90.1% in a year with significant large loss activity.
Full-year catastrophe losses net of reinsurance were $87.6 million, driven by Hurricane Helene ($52.6 million), Hurricane Milton ($37.8 million), the Calgary hailstorms ($12.9 million) and Hurricane Debby ($5.6 million).
Albo added: ““Our investment portfolio produced $362 million in total returns, including a standout 16.3% return from the Two Sigma Hamilton Fund.
“I am very proud of what we have achieved as a Group and excited about our business prospects going forward. The hard work our team has put in over the past few years and our unique culture have positioned Hamilton exceedingly well for the future.”
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