Re/insurance group Hamilton Insurance has reported its financial results for the third quarter of 2024, recording a net income of $78.3 million, or $0.74 per diluted share, and an annualized return on average equity of 13.8%.
Gross premiums written for the period rose 16.7% from the prior-year quarter, reaching $553.4 million, while net premiums earned increased 33.2% to $448.8 million. The company reported a combined ratio of 93.6% and an underwriting income of $29.1 million.
Net investment income for the quarter totaled $82.8 million, driven by returns from fixed income, short-term investments, and cash and cash equivalents totaling $93.9 million, offset by a $11.1 million loss from the Two Sigma Hamilton Fund.
Corporate expenses were $14.1 million, including $1.9 million allocated to compensation costs related to the Value Appreciation Pool.
For the year to date, Hamilton reported net income of $366.5 million, an annualized return on average equity of 22.4%, and gross premiums written of $1.9 billion, a 23.8% increase from the same period in 2023.
Net premiums earned year to date were $1.3 billion, up 31.5% year-over-year. The year-to-date combined ratio stood at 89.9%, with underwriting income of $126.9 million. Net investment income for the year totaled $326.3 million, including $207.5 million from the Two Sigma Hamilton Fund and $118.8 million from other investments.
Corporate expenses were $41.8 million, with $7.5 million in compensation costs tied to the Value Appreciation Pool. The company’s book value per share rose by 22.8% from December 31, 2023, to $22.82.
Hamilton has also estimated that its losses from Hurricane Milton, net of reinsurance, will range between $30 million and $70 million. These losses are expected to be reported in the company’s fourth-quarter 2024 financial results.
Pina Albo (pictured above), CEO of Hamilton, stated that the company’s performance since its initial public offering has highlighted its commitment to achieving sustainable underwriting profitability.
“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,” Albo said.
Both the International and Bermuda segments delivered profitable underwriting results, with a year-to-date combined ratio of 89.9% and an annualized return on equity of 22.4%, reflecting the company's underwriting approach and its diversified operations.
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