Hamilton Insurance Group’s Earnings Call Highlights Strong Q3 Performance

Hamilton Insurance Group, Ltd. Class B ((HG)) has held its Q3 earnings call. Read on for the main highlights of the call.

Hamilton Insurance Group’s recent earnings call conveyed a generally positive sentiment, underscoring strong financial results and notable premium growth across multiple segments. The company also highlighted successful investment income and strategic leadership appointments. However, challenges such as increased competition in the property market, a higher expense ratio, and a significant large loss were acknowledged.

Strong Financial Performance

Hamilton Insurance Group reported an impressive $136 million in net income for the third quarter, achieving an annualized return on average equity of 21%. The combined ratio improved significantly to 87.8% from 93.6% in the same quarter of the previous year, reflecting enhanced operational efficiency and profitability.

Significant Growth in Gross Premiums Written

The company experienced a substantial 26% increase in gross premiums written during the quarter. This growth was driven by all segments, with the Bermuda segment experiencing a remarkable 40% increase and the International segment growing by 17%, showcasing the company’s robust expansion strategy.

Successful Investment Income

Hamilton’s investment income for the quarter reached $98 million, supported by contributions from the Two Sigma Hamilton Fund and fixed income portfolios. Notably, the Two Sigma Hamilton Fund reported a net return of 13% for the first nine months of 2025, highlighting the success of the company’s investment strategies.

Strategic Talent Acquisitions

The company strengthened its leadership team with the appointment of Mike Mulray as Chief Underwriting Officer at Hamilton Select and the promotion of Susan Steinhoff to Chief Underwriting Officer of Hamilton Re. These strategic talent acquisitions are expected to enhance the company’s underwriting capabilities.

Share Repurchase Program

Hamilton repurchased $40 million worth of shares during the quarter and has authorized an additional $150 million for future repurchases. This move reflects the company’s confidence in its financial stability and commitment to returning value to shareholders.

Increased Competition in Property Market

The earnings call noted increased competition in the larger property accounts, which has led to reduced writing in certain areas. This competitive pressure poses a challenge to maintaining growth in this segment.

Higher Expense Ratio

The company’s expense ratio increased by 1.9 points to 34.5%, primarily due to higher acquisition and underwriting expenses. This rise in expenses highlights the need for continued focus on cost management.

Large Loss Impact

A significant large loss related to the Martinez refinery fire impacted the Bermuda attritional loss ratio, increasing it by 2.8 points in the third quarter. This incident underscores the inherent risks in the insurance industry and the importance of effective risk management.

Forward-Looking Guidance

Looking ahead, Hamilton Insurance Group remains optimistic about its growth prospects, despite anticipating more competition in the U.S. Excess and Surplus (E&S) market. The company plans to leverage its strong market relationships and underwriting culture to capitalize on growth opportunities. Strategic focus on disciplined underwriting and a diversified portfolio will continue to be key to adapting to market conditions.

In conclusion, Hamilton Insurance Group’s earnings call reflected a strong financial performance with significant growth in premiums and investment income. Strategic leadership appointments and share repurchase initiatives further strengthen the company’s position. While challenges such as increased competition and higher expenses were noted, the company’s forward-looking guidance remains optimistic, focusing on leveraging market relationships and disciplined underwriting to drive future growth.