Bermuda-based re/insurer Hamilton Insurance Group has revealed its financial performance for the fourth quarter concluding December 31, 2023, highlighting achievements and growth throughout the year.
The period was marked by net income reaching $126.9 million and an annualized return on average equity of 26.4%. An income tax benefit of $35.1 million, equivalent to a 7.1% annualized return on average equity, was recognized following the enactment of the Bermuda Corporate Income Tax Act of 2023
The company’s gross premiums written amounted to $433.8 million, with net premiums earned at $366.1 million. The combined ratio stood at 90.2%, inclusive of 1.8 points attributable to catastrophe losses.
Underwriting income for the quarter was reported at $36.0 million. The company also saw a net investment income of $113.8 million, comprising a $77.1 million return from fixed income, short-term investments, cash and cash equivalents, alongside a $36.7 million return from the Two Sigma Hamilton Fund.
Corporate expenses totaled $44.9 million, including $18.9 million in compensation costs related to the Value Appreciation Pool and $12.9 million in other compensation expenses.
For the entire year, Hamilton Insurance Group reported net income of $258.7 million and a return on average equity of 13.9%. The income tax benefit remained at $35.1 million, reflecting a 1.8% return on average equity due to the new tax act.
Gross premiums written over the year reached $1,951.0 million, with net premiums earned at $1,318.5 million. The company maintained a steady combined ratio of 90.1%, factoring in 2.8 points from catastrophe losses.
The full-year underwriting income was $129.9 million, with net investment income totaling $218.3 million. This comprised a $122.1 million return from the Two Sigma Hamilton Fund and a $96.2 million return from other investment categories.
Corporate expenses for the year were $76.7 million, which included $30.3 million related to the Value Appreciation Pool.
“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,” CEO Pina Albo said.
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