Hamilton Insurance Group, Ltd. has reported a combined ratio of 90.2% and underwriting income of $36 million for the fourth quarter of 2023, as the firm’s net income rose considerably to $127 million for the period.
The insurer’s gross premiums written (GPW) increased by $92.5 million, or 27.1% to $433.8 million in Q4 2023, as net premiums written (NPW) increased by $80.3 million, or 28.3%, to $363.7 million, and net premiums earned increased by $53.9 million, or 17.3%, to $366.1 million.
For the quarter, catastrophe losses, net of reinsurance, were $6.5 million, or 1.8 points, driven by the Hawaii wildfires and the March Storms, partially offset by favorable attritional prior year reserve development of $6.4 million.
The Q4 2023 loss ratio rose 1.7% to 53.3% as the acquisition cost ratio came in flat at 24.2% and the expense ratio climbed 1.2% to 12.7%, resulting in a combined ratio for the quarter of 90.2%, compared with 87.6% a year earlier.
Group-wide, underwriting income fell slightly from $38.6 million in Q4 2022 to $36 million in Q4 2023.
By segment, Hamilton’s International business reported a dip in underwriting income of $13.7 million to $1.9 million, as the combined ratio deteriorated to 99.1% from 90.9%. Here, GPW rose more than $39 million to $273 million, while NPW jumped to $217 million.
In the firm’s Bermuda segment, GPW rose more than $53 million to $160 million and NPW increased to $147 million. The segment’s underwriting result improved by over $11 million to $34 million as the combined ratio strengthened by 4 percentage points to 79.6%.
For full year 2023, group GPW increased by $304 million, or 18.5%, to roughly $2 billion, as NPW increased by $258.6 million, or 21.2%, to $1.5 billion, and net premiums earned increased by $174.8 million, or 15.3%, to $1.3 billion.
The underwriting result improved considerably for the year, from a loss of $32 million in 2022 to a gain of $130 million in 2023, as the combined ratio moved from 102.8% to 90.1%.
The insurer has reported catastrophe losses, net of reinsurance, of $36.9 million, or 2.8 points for 2023, driven by the Hawaii wildfires, the March Storms, the severe convective storms in June 2023, Hurricane Idalia and the Vermont Floods, partially offset by favorable attritional prior year development of $10.4 million.
All in all, Hamilton has reported net income of $259 million for 2023, a significant improvement from the net loss of $98 million seen in 2022.
Pina Albo, Chief Executive Officer of Hamilton, commented, “2023 was a year that truly exemplified the transformation of Hamilton’s business. 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.”
