Bermuda-domiciled re/insurer Hamilton Insurance Group has reported a slightly increased combined ratio of 93.6%, with an underwriting income of $29.1 million for the third quarter of 2024.
The reinsurer reported catastrophe losses (current and prior year), net of reinsurance of $38.3 million for Q3 2024, driven by Hurricane Helene at $33.9 million, the Calgary hailstorms at $12.3 million, and Hurricane Debby at $5.5 million, partially offset by favourable prior year development of $13.4 million.
Hamilton’s gross premiums written (GPW) increased by $79.3 million, or 16.7% than the prior-year quarter to $553.4 million, with an increase of $18.4 million, or 6%, in the International Segment, and $60.9 million, or 36.5%, in the Bermuda Segment for the quarter.
The firm’s Q3 2024, net premiums written increased by $94.3 million or 24.6% to $477.9 million with an increase of $33.5 million, or 14.3%, in the International Segment, and $60.8 million, or 40.9%, in the Bermuda Segment.
Meanwhile, net premiums earned increased by $111.8 million, or 33.2%, to $448.8 million. There was an increase of $46.6 million, or 26.1%, in the International Segment, and $65.1 million, or 41.1%, in the Bermuda Segment.
The attritional loss ratio (current year), net of reinsurance, was 53.2%. The decrease of 1.6 points year over year was driven by the absence of large losses in the current quarter.
The net favourable attritional prior year reserve development, net of reinsurance, was $3.2 million due to favourable development in property and specialty classes, unfavourable development in certain casualty classes, including one specific large loss, explained Hamilton.
Finally, the net income for Q3 2024 was $78.3 million, a $34.6 million increase from last year’s $43.5 million. The net investment income for this quarter was $82.8 million, comprised of fixed income, short-term, cash and cash equivalent returns of $93.9 million and a Two Sigma Hamilton Fund loss of $11.1 million.
Hamilton noted that Hurricane Milton’s losses, net of reinsurance, are estimated to be in the range of $30 million to $70 million, which are to be reflected in the firm’s Q4 2024 financial results.
In the International segment, catastrophe losses (current and prior year), net of reinsurance, were $8.9 million, driven by Hurricanes Helene and Debby for Q3 2024.
Meanwhile, the Bermuda segment saw catastrophe losses (current and prior year), net of reinsurance of $29.4 million, due to Hurricanes Helene and Debby and the Calgary hailstorms.
For 9M 2024, the firm reported an underwriting income of $126.9 million, while GPW increased by $361.4 million, or 23.8%, to $1.9 billion compared to 9M 2023’s $1.5 billion, with an increase of $125.9 million, or 15.1%, in the International Segment, and $235.5 million, or 34.4%, in the Bermuda Segment.
Net premiums written increased by $351.1 million year on year, or 31.4%, to $1.5 billion than last year’s $1.1 billion, with an increase of $133.8 million, or 24.2%, in the International Segment, and $217.3 million, or 38.6%, in the Bermuda Segment.
Net premiums earned also rose by $300.5 million, or 31.5%, to $1.3 billion, with an increase of $132.9 million, or 26.3%, in the International Segment, and $167.5 million, or 37.4%, in the Bermuda Segment.
The attritional loss ratio (current year), net of reinsurance, was 53.9%, the increase of 2.1 points year on year was driven by losses of $37.9 million, or 3.0 points from the Francis Scott Key Baltimore Bridge collapse.
The net unfavourable attritional prior year reserve development and net of reinsurance was $7.1 million, and the net income reported for 9M 2024 was $366.5 million with a combined ratio of 89.9%.
Lastly, net investment income for 9M 2024 was $326.3 million comprising of Two Sigma Hamilton Fund returns of $207.5 million, and fixed income, short-term and cash and cash equivalents returns of $118.8 million.
Pina Albo, CEO of Hamilton, said, “Just over a year ago we launched the initial public offering for Hamilton, marking our transition from private company to the New York Stock Exchange listed firm we are today. At the time of our IPO, we re-affirmed the achievement of sustainable underwriting profitability as one of our key objectives.
“Our strong results this quarter and on a year-to-date basis demonstrate our ability to execute this important goal. This quarter, Hamilton reported a combined ratio of 93.6%, despite catastrophe losses from Hurricane Helene and other large loss events. Both of our segments, International and Bermuda, produced profitable underwriting results. On a year-to-date basis, Hamilton recorded a combined ratio of 89.9% and an annualized return on average equity of 22.4%, demonstrating our underwriting discipline and the value of our diversified and growing franchise.”
