Hamilton Insurance considering strategic options, says Reuters
Bermuda-based Hamilton Insurance Group is reported to be considering strategic options including an initial public offering and a private sale, Reuters news agency has reported.
Citing people familiar with the matter. Reuters said Hamilton has been discussing options with potential advisers.
A transaction could value Hamilton at more than $2 billion, Reuters quoted one of the sources. The group reported a book value of nearly $1.7 billion at the end of December. Listed peers trade at a premium to their book value.
Reuters said: "Deliberations are preliminary and a transaction may not materialise, the people said, with one person suggesting that a deal is more likely to happen after hurricane season ends in November given the company's underwriting exposure to natural catastrophes."
Reuters said a spokesperson for Hamilton declined to comment.
Reuters noted that the timing of the strategic discussions comes after shares in Skyward Specialty have soared since their New York debut in January. Bermuda-based Everest Re successfully raised about $1.5 billion to fund growth last month. Bermuda-based Fidelis Insurance said in April it planned to seek a US IPO.
Private sales have also returned, most notably the near-$3 billion sale by AIG of its reinsurance unit Validus Re last month to RenaissanceRe.
A property and casualty insurer and reinsurer, Hamilton was established in 2013 and was run by industry veteran Brian Duperreault until he departed in 2017 to become CEO of American International Group.
It has since been led by Pina Albo (pictured), with Hamilton deriving the bulk of its revenues from business in the US followed by Britain, where it is active in the Lloyd's of London insurance market.
Hamilton has a partnership with Two Sigma, whereby the assets which Hamilton generates are managed by the US hedge fund.
Reuters said a sale could be complicated by Hamilton's convoluted governance structure. No one shareholder in Hamilton owns more than 11% of the group, while all investors have their voting rights capped at 9.5%, according to its 2022 financial condition report.
