HG - Earnings call transcript Q4 2024 | Hamilton Insurance Group, Ltd.

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Operator

Hello, and welcome to the Hamilton Insurance Group Earnings Conference Call.

As a reminder, this call is being webcast and will also be available for replay with links on the Hamilton Investor Relations website. I'd now like to turn the call over toÂ Jon Levenson, Group Treasurer and Head of Investor Relations. Please go ahead.

Jonathan Levenson

Thank you, operator, and welcome all to the Hamilton Insurance Group Fourth Quarter and Year-End 2024 Earnings Conference Call. today's Craig Pina Officer. Howie, leading Executive Group executives and Officer; Group Hamilton call Albo, are Chief The Chief Financial

are other team. by also the We management Hamilton members of joined

the disclosures, our Before note important With refer measures. regarding the Albo, developments statements. we forward-looking risks future earnings comments potential These reconciled turn subject that in financial financial information regarding begin, Management that, Pina are release, including to Hamilton and supplement. include our to items financial as non-GAAP earnings over certain also and Hamilton's may detailed.Â Management release to call I are CEO. uncertainties

Giuseppina Albo

Jon, and you, Thank everyone. hello,

Let Hamilton's Call. Full me XXXX to Earnings welcoming Quarter start you Year and by Fourth

the financial full on with more of details in providing results year our In I terms will on previewing Craig our moment. today, call a focus comments my

Before the that Los wildfires, world, of just to of and often.Â Â The many covering risks around the Angeles one it's we devastating families we this are results, our the important individuals, place in prevalent reminded recently took affecting communities. unfortunately too and remain note and represent though, all which risks cover deadly

thanks with Our and heartfelt have responders. those to the been all our first affected who thoughts are

clients part swiftly by are take We our doing financial to for compensate losses, in on working those our helping affected. our delivering their pride we and promises and

for event XXXX estimates, first early on in million indicate loss market views the based in loss The our our of insured estimate will a $XXX modeled but to This X.X%. assessing be is reinsurance quarter for this event reported losses about of billion case, net loss within results. $XXX range $XX billion.Â Â Our our estimated and this million industry financial of share, for We to this company's are reinstatement expectations still an $XX is range premiums.

collapse of this natural public similarly first an the earlier the outstanding approximately the as Baltimore completed insured in Key Bridge full There losses. Turning catastrophe Despite of company. to shortage Scott no backdrop year catastrophes in industry XXXX. destructive with in was Hamilton and billion $XXX year, Francis a

Our International and segments over and group, premiums over an thoughtfully written increase financial reporting grow and continue results of had our we both XXXX. a of $X.X profitably.Â Â As excellent of both were segments, gross for Bermuda, billion, to XX%

Our in was in combined again, $XXX significant of a insured income, ratio XX.X%, loss year with an impressive resulting nearly activity. underwriting million

One our of this of for business. the result reasons is underwriting diversification the

to return also business XX% split For for total on testament and with they the investment net Specialty equity million. results $XXX of of are return full XX.X% year.Â Â We The a value income execution combined are our was XX% book underwriting of result exceptional XXXX, our proud growth Casualty, year disciplined of the XX% XX.X% strategy and average per as results in Investment an representing was a common Hamilton's these share million, $XXX strong were and very Property. shareholders the culture. to a

deploying capital we focused IPO then the strategic growth marketplace. into XXXX, raising by a insurance our During achieved robust set namely reinsurance process, objectives out on and we specifically executing and during

on underwriting each on Hamilton International, of maintaining well-diversified growing which Re, ratings of Both being Bermuda, achieving these Global of houses capital. Â Â Let turn. a business. underwriting our Second, sharp and eye strong good me stewards a Select; Hamilton houses which and insurance-focused and profitability; reflecting our our of touch Hamilton and book results, Specialty platforms, had upgrades; in fourth, third, segments, platform, reinsurance-focused

write Global Hamilton of which of Hamilton platforms: volatility E&S billion underwriting over year and larger where they wrote reinsurance development, combined International, still in X have they is of Hamilton which and be is ahead their Specialty a ratio and gross number hard-to-place it the our million comprised Global Re we $X.X its the where E&S mentioned, business.Â Â Our source momentum year the is reflective casualty, full strong Bermuda early reported ratio Select, diversified business time.Â Â As the stages there $X.X premiums gross which Select, of well for of includes full billion would have in the in wrote the also XX% lower wrote specialized Specialty, premiums have Lloyd's that the and we combined within excellent For Hamilton built consecutive growth. slightly and Re segment, during double-digit XXXX, the a majority reflective and Hamilton of the we Re's which an predominantly premiums ratio, during $XXX U.S. of our with between year, in and second is platform of a market thought U.S. XX.X% where Hamilton reported which segment, classes. portfolio of premiums balanced achieved XXs. business. specialty of U.S., XXXX, result, underwriting property International, billion XXXX Syndicate combined is continuing path business, a thoughtful $X.X our insurance specialty gross for Hamilton in wrote a XXXX, year we

global and Our of roughly has to in place Bermuda centers $XXX well-diversified allowed global XXXX, very million with together put team relationships we national for Insurance, in remains both of offerings. and during property have reinsurance very to a premiums book one insurance, us we Specific clients casualty. the gross wrote business.Â Â Bermuda a and XX-XX split and approximately for strong strong key key

important and in A.M. we of July have partners. April for to rating global afford prior A.M. our received an received A recognition also Re In we and results to that Best many Best, rating with Hamilton X XXXX, to Hamilton also Fitch.Â Â In A- from the of year, profitable as published affirmed KBRA. additional peers of addition provided gratified Hamilton Ratings these very which initial excellent have by continue upgrade posting opportunities rating to in our business. In July, ratings, will had an now Re in customers by are Hamilton the on larger to from by are par broker this higher its Fitch And financial discussed A were calls, KBRA. and global agencies,

objective Our XXXX responsible number in an a to was shares resulted notable repurchased of in that shareholder book To action fourth of we which increase end, be a value, capital. for below stewards shareholder value. significant

a heard I a fared on quite deliver very diverse have we brief that During to to about investor. repurchases not now in XXXX, few will have founding will and $XXX classes both single decisively.Â Â Turning What the market. a shares we repurchase always well this of key market of clients global have but strong X repurchased believe with the the X time, that a By renewals, a million at date from be say percentage reinsurance course, important when shares building we in returns. continue to reinsurance January I across movement moments. in that signings annual various relationships work total undervalued, comments at done renewal rates and open resulted a January sizable the large will renewals.Â Â The we this nurturing of attractive capital cost and territories, XX.X treaty million.Â This they a portfolio in includes hope are are, you our act would to for well now positioned our bit and We, only and an provide establishing will is so enabled like Hamilton us

elevated the an we the of by and conditions at downward of specifically cat, oversupply the and and said, dynamics remained a capacity important described property rates terms step saw some of our change intact, For terms attachment very X/X many point. peers experiencing with pressure.Â Â That in points

remained well bag where others. with flat, offering, number with and into was our generally to in of of and business launched has and competitive area our an keen share.Â Â Regarding bond rates Re, from reinsurance diverse classes will credit of For the the entered did underlying results to reinsurance, quota political at this specialty improve than of our and lines commissions a Casualty us flow since opportune One risk while a met recently many were, through mixed involves time segment which some therefore, clients market. business the continue majority more interest is we

we Also, expect an new anticipate take-up to that we While the we call, expectations.Â Â Looking ahead that renewals, to renew our provide many level for accounts. say will now, our increase for impacted given our cat quarter a programs the detail exceeded of demand. in Otherwise, property by first more offering midyear, in stable on loss-affected mid-year suffice XXXX hurricanes renewals. higher rates expect and the wildfires we it

balance and well and from as our segment. year base the strong back client sheet our for strength we the are have we Bermuda talent International away ahead.Â Â Moving built, the of relationships well our positioned to Given as

quarter business classes In our portfolio, days important is we see in a which Lloyd's had of milestone same the built ecosystem date The X insurance for active Syndicate the continue of the January robust Although expand setting team cargo market classes not have opportunities with many year, XXXX, business, natural within and over first given continue renews participant and offering, particular, the insurance throughout is many marine in XXXX across is some a in home years place. hull, which includes will, the in specialty attractive tone. that lines of early to international the still our an example, in long to for skilled lines. Lloyd's.Â Â We liability a has marine

this insurance to XXXX's and lines returns. recently opportunities performance area.Â Â Syndicate market underwriting been versus property We in long-term has profitable also strong see have grow the talent our stable and with added

specialty achieved underwriting is casualty, well-regarded a underwriters who diversified profitability leaders in insurance XX resilient team cross-cycle The of been property many home of classes. line has cases, by including low delivery laser-focused book and marine focused of their and spanning We lines and over developed business to a profitability field. and discipline on on enforcing bottom casualty are considered specialty, specialist across in volatility lines.Â Â The team are, has and

are competition continue platform, is pricing see business. opportunities casualty in our small comments As risks for sufficient for E&S U.S. remain to to midsized E&S submission flow on hard-to-place which attractive our reserves. and particularly Select in Hamilton the increased increasing growth risks space, we focused strong in commercial and our a casualty.Â Â Despite and we general the will market, and on for few levels I opportunities, see conclude again the excess attractive we with writing, loss

review a know, to estimate our we external increased. philosophy. by has quarter to for an In above year, our reserving are their you of context, reserves, following We Hamilton.Â Â As are of reserves favorable that this reviewed year was we gratifying development stems of XXth completed fourth twice the reserves, best of and their it happy consecutive recently our proud continued report that XXXX reserve from the marks actuary surplus have our our see strength disciplined which

the shared lines the casualty on monitor have price some U.S. are of social planning culture and our and Craig. to that our a be continue discipline over positioned over excited underwriting that, feel the achieve and efficient hard in trend turn strong very We team call inflationary Hamilton now achieved, am to assumptions.Â Â In I'll has business have and incorporates in of that who business, believe of and work of to returns. well-diversified to continue our number notably its global to trends, With and pricing the customers, a reserving, locations and matter for I and a what motivated well.Â Â We best adjust operational collaborative of conclusion, a years balance focused well-established put processes producing us classes to our we in about proud book strong inflation The to operating team of prospects and our ensure platforms the has world-class sheet goals. appropriate business potential financial the loss what has I

Craig Howie

Hamilton Pina, income return XX.X% the with prior a Thank a on to year. everyone. equity XX% XX.X% prior of net over million, and had $XXX record you, of hello, the and XXXX year average compared up in year

this an environment, growth As of per repurchases, an year. the year strong company share market we financial reported income XXXX, equal in full had an the book million share, active of compares excellent income of prior also over of producing value share investment of quarter an XX.X% of diluted underwriting record Hamilton net returns of in XXXX. Â For income attractive million, quarter return average return annualized $X.XX on share net X.X%, $X.XX annualized on to out a in another close result year grew premium per fourth The equity XX% $XXX per fourth or and to and the XXXX. strong to of average by result very diluted $XX equity

with numbers million As and on included provide as underwriting the a for quarter the losses.Â Â With additional its around year. highlights, quarter reminder, $XX benefit fourth full grow Starting investment for double-digit line impressive on tax an top significantly XXXX continues components of catastrophe rate. of and an let income those or lower some annualized to results. equity and at Hamilton detail X.X% our return underwriting income the me

In increased the was attractive XX%.Â Â All Global market to underwriting fourth rate to to quarter growth. XXXX fact, the the compared growth profitable X compound the underwriting group XX%, a platforms, written $X.X compared figures. to Hamilton continue for gross of our fourth annual for XXXX. fourth take group $XX income XXXX with quarter billion in premiums Re quarter of in Hamilton which $XX an compared million billion quarterly and was year. full of to last last combined $X year all this XX.X% of million ratio income from conditions, time Specialty, the our underwriting contributed to The increase advantage XX.X% Underwriting was some Hamilton XXXX, Select of Starting for to our year, of record

quarter catastrophe compares reported quarter, of of for the X.X the catastrophe in $XX X.X loss favorable year favorable $X year. X.X development to compares mostly primarily attritional by In points, ratio to prior last property the overall was XX.X% development or fourth X.X points ratio. driven made partially to lines. in increased increase increased favorable We prior The components, the net of year. compared ratio losses prior HurricaneÂ HeleneÂ for Hurricane of of due million. fourth the driven In ratio million in of up or the $X offset by points year had expense million of and This catastrophe period. XX.X% prior points terms This loss $XX Milton decrease quarter in by quarter, development points the by offset year losses current combined million, last in fourth partially $XX a the and million to losses to XX.X

through our track favorable metrics. highlighted loss development I'd So go reserve the Pina continue of XXXX of each our some earlier, company.Â Â Â Next, the underwriting as year since we record year-end to of inception like

For by group leverage a XXXX, XX.X% of due to XXXX.Â The $XX The to of was and prior was losses underwriting loss driven increased million to the of points our was XX.X%, year compared year prior to ratio. an million in The X.X first of expense Hurricane the hailstorms X.X loss attritional compares in ratio X million, related to ratio for points for losses, the the underwriting XX.X% XX.X% in $XXX catastrophe current increase decreased primary year in XXXX. XXXX. $X Milton was premium catastrophe combined XXXX. points to in favorable decrease XXXX. to losses million by $XX ratio partially year This earned or to operating in in record was $XX the of partially bridge to XX.X% Debby to the for $XXX full million, catastrophe The the compared million and primarily to expense points offset the improved Hurricane full for mainly X.X net compared income XXXX. full of in The increased compared full base. the reason losses made points million. due increase year. increase due by in for year the The loss in X.X year Hurricane attritional was a the current group to XXXX Baltimore growth nominal income increase XX.X% the was year of ratio XX.X% by ratio combined offset $XX million quarter The compared development expense ratio The driven net prior $XX for Helene and up or X.X Calgary $XX points million, and decrease

loss As the always, and use book as to full ratios where encourage you an we perform. the attritional expect indication I'd XXXX for expense to current year

expenses. As for increase the corporate an variable in expenses, there was

$XX long-term performance XXXX, our which is and to X-year a period incentive based value related pool.Â For However, is the expenses appreciation year this costs the were with compensation million. associated corporate compensation over full plan, on

$XX come should the number this year.Â Â Next, to by let's down at to forward, segment. million $XX Going results look about million per

which businesses, Hamilton with Select. Let's segment, and start Hamilton includes Specialty International the specialty Global insurance our

XX.X% For underwriting ratio a driven from and $X.X full and increase to the XX.X% of XX.X% property income decreased loss XXXX, international primarily compared we've improved of constructed. grew diversified increased attritional a to billion, higher what ratio insurance is to classes classes. casualty and insurance specialty XX.X% full words, of a million very premiums insurance commission The had both This $XX XXXX. by we XX.X% International in points very portfolio million pricing reinsurance year-over-year. record and to In income. result combined In to year-over-year, compared written growth of commissions of which compared other and billion reduced expect and gross new primarily the an XXXX. underwriting consistent in from International combined in X stable XX.X% XXXX, income year ratio was X.X ceding XXXX, for The profit $XX driven and was that acquisition $X.X year XX%. expense in by and business existing decrease The the points ratio to

underwriting quarterly figures. ratio of to the in XX.X% year growth premium XX.X% compared points decreased result expense to to XXXX full X.X base.Â Â Moving in The as other the a some

fourth on reserve U.S., underwriting is quarter our million last driven we of loss and year. decreased quarter income business. to points in the For classes quarter the the in $X decrease Re do underwriting property X.X The the ratio and last quarter, XX.X% ratio to of fourth international combined fourth which fourth compared compared our The a segment, reinsurance Hamilton attritional income Bermuda ratio $X entities XX.X% I'll predominantly combined million now reviews. as a had houses was when to the year the the of International Hamilton that by property current of to in fourth experience Re turn primarily year. the favorable XX.X% write and XX.X% quarter

was gross expanded classes. to grew new our the an existing rate reinsurance specialty increase directly million premiums driven on of to growth written year, from tied XXXX For casualty, year million of was XXXX, increases The business in full Bermuda and business, upgrade. billion increase by and primarily XX%. rating $XX Best A.M. $XXX during $X.X property Approximately participations last

We resulting and $XXX ratio upgrade of million gross to of combined of XXXX during of in growth related full income a growth a year from In in and combined for similar written. million amount compared catastrophe. ratio record in to expect Bermuda $XXX increase $XX total premiums ratio the underwriting XX.X% of dollar about million had income XXXX. was The XX.X% an primarily underwriting the XXXX, combined

Hamilton Insurance (HG) 27 Feb 252024 Q4 Earnings call transcript