Bermuda-domiciled re/insurer Hamilton Insurance Group has reported a slightly weaker full year (FY) 2024 combined ratio of 91.3% and higher underwriting income of $149.4 million, as gross premiums written (GPW) hit $2.4 billion, an increase of 24.2% or $471.5 million compared to FY’23.
The increase in premiums was driven by growth of $202.9 million, or 18.4%, in the international segment, and $268.6 million, or 31.8% in the Bermuda segment.
For 2024, net premiums written (NPW) increased by $440.7 million, or 29.8%, to $1.9 billion, with the international segment contributing $199.2 million, or 25.9% and $241.5 million, or 34.0%, in the Bermuda segment.
Hamilton’s net premiums earned (NPE) increased by 31.6% to $1.7 billion for FY’24, translating to an increase of $416.2 million, driven by 26.1% or $183.4 million increase in the international segment, and $232.8 million, or 37.8%, in the Bermuda segment.
2024 catastrophe losses (current and prior year), net of reinsurance, were $87.6 million, driven by Hurricane Helene ($52.6 million), Hurricane Milton ($37.8 million), the Calgary hailstorms ($12.9 million), and Hurricane Debby ($5.6 million), partially offset by favourable prior year development of $21.3 million.
The attritional loss ratio (current year), net of reinsurance, was 53.1%. The increase of 0.9 points compared to FY’23 was primarily driven by losses of $37.9 million, or 2.2 points, arising from the Francis Scott Key Baltimore Bridge collapse, explains the firm.
Lastly, the FY’24 net income stands at $400.4 million, or $3.67 per diluted share, an increase of 55% over FY’23 with a return on average equity of 18.3% and net investment income of $361.9 million.
Hamilton has reported a Q4 combined ratio of 95.4% and an underwriting income of $22.4 million. GPW increased by 25.4% or $110.1 million to $543.9 million, driven by $77 million or 28.2%, in the international segment, and $33.1 million, or 20.7%, in the Bermuda segment.
In Q4 2024 NPW increased by $89.7 million or 24.7% to $453.3 million with an increase of $65.4 million, or 30.2%, in the international segment, and $24.2 million, or 16.5%, in the Bermuda segment.
For the quarter, the re/insurer has reported NPE of $481.9 million, a $115.7 million, or 31.6%, increase, with the international segment contributing $50.5 million or 25.4%, and $65.2 million, or 39% increase in the Bermuda Segment.
Catastrophe losses (current and prior year) for the quarter, net of reinsurance, were $49.1 million, driven by Hurricane Milton ($37.8 million), Hurricane Helene ($18.7 million), and the Calgary hailstorms ($0.6 million), partially offset by favourable prior year development of $8 million.
Hamilton’s quarterly net investment income of $35.7 million comprised of Two Sigma Hamilton Fund returns of $67 million, and a fixed income, short-term, cash and cash equivalent loss of $31.3 million.
The Q4 2024 attritional loss ratio (current year), net of reinsurance, was 51.2%, a 2-point decrease compared to Q4 2023, driven by the absence of large losses in the current quarter.
Additionally, net favourable attritional prior year reserve development, net of reinsurance, was $6.3 million, primarily driven by favourable development in property classes, partially offset by modest unfavourable development in casualty classes.
In Q4 2024, net income reported was $33.9 million, or $0.32 per diluted share with an annualized return on average equity of 5.8%.
Pina Albo, Chief Executive Officer of Hamilton, commented, “2024 was an exceptional year for Hamilton. In our first full year as a public company, our overall financial results were excellent, with strong contributions from both underwriting and investments. Our net income was $400 million, a 55% increase over prior year, and our book value per common share increased 23.5%.
“Hamilton’s combined ratio of 91.3%, in a year with significant large loss activity, demonstrated the benefits of our business diversification and our sharp focus on underwriting discipline. We achieved this result while also increasing our gross premiums written by 24%, leaning into favourable market conditions. Our investment portfolio produced $362 million in total returns, including a standout 16.3% return from the Two Sigma Hamilton Fund.
“I am very proud of what we have achieved as a Group and excited about our business prospects going forward. The hard work our team has put in over the past few years and our unique culture have positioned Hamilton exceedingly well for the future.”
The post Hamilton reports underwriting income of $149m for FY’24 with 91.3% CoR appeared first on ReinsuranceNe.ws.