Hamilton Insurance Group Q1 Earnings Call Highlights

Key Points

• Hamilton reported a strong underwriting turnaround in Q1 with net income of $134 million and operating income of $167 million, as the group swung to $58 million of underwriting income and a combined ratio of 89.8% (vs. 111.6% a year ago), largely due to the absence of the prior-year California wildfire catastrophes.
• Business and capital moves included GWP up 11% to $940 million (International +20%, Bermuda +5%), the launch of a casualty reinsurance sidecar with ~$300 million of expected cessions, and shareholder returns of a $200 million special dividend plus $20 million of buybacks (with $159 million remaining authorization).

Hamilton Insurance Group NYSE: HG reported first-quarter 2026 net income of $134 million, as management emphasized underwriting discipline amid competitive market conditions and ongoing geopolitical uncertainty.

Quarterly results and underwriting performance

Group CEO Pina Albo said the company was “very pleased” with first-quarter performance, particularly given “a global economic and geopolitical environment that has become more complex and volatile” and an insurance market where “pricing across parts of the industry continues to come under pressure.”

Group CFO Craig Howie reported net income of $134 million, or $1.31 per diluted share, producing an annualized return on average equity of 19%. Operating income was $167 million, or $1.64 per diluted share, for an annualized operating ROAE of 24%. Howie noted operating income excludes realized and unrealized gains and losses on fixed maturity and short-term investments and foreign exchange gains and losses, but includes results of the Two Sigma Hamilton Fund.

Gross premiums written rose 11% year over year to $940 million. Underwriting results improved sharply: Hamilton generated $58 million of underwriting income versus an underwriting loss of $58 million in the year-ago quarter. The group combined ratio was 89.8%, compared with 111.6% a year earlier.

Howie attributed the improvement primarily to the absence of catastrophe losses in the quarter, compared to “about 30 points of catastrophe losses” in the first quarter of 2025, driven mainly by the California wildfires. The loss ratio improved to 56.9% from 79.2%, partially offset by a higher attritional loss ratio of 54.5% versus 51.9% a year ago. Howie said the higher attritional loss ratio was within expectations following the company’s previously announced change to its large loss threshold, and reiterated guidance for an attritional loss ratio around 55% for full-year 2026.

The company also recorded $14 million of unfavorable prior-year development tied to an increase in reserves for the Baltimore Bridge loss. Howie said the development was “literally one event,” equal to 2.4 points in the quarter.

The expense ratio increased modestly to 32.9% from 32.4%, driven by higher acquisition costs, partially offset by lower other underwriting expenses that reflected the Bermuda Substance-Based Tax Credit and third-party performance fee income.

Segment performance: International and Bermuda

Hamilton’s International segment (Hamilton Global Specialty and Hamilton Select) grew premiums 20% to $443 million. Underwriting income was $7 million and the combined ratio was 97.5%, improving from 99.7% a year earlier. Howie said the improvement primarily reflected no catastrophe losses in the quarter, versus about 12 points of catastrophe losses in the year-ago period related to the California wildfires.

The International current-year attritional loss ratio rose to 54.9%, and prior-year development was unfavorable by 1.4 points due to the Baltimore Bridge reserve increase. The segment’s expense ratio increased to 41.2% from 39.1%, reflecting a higher acquisition cost ratio from business mix changes.

In the Bermuda segment (Hamilton Re and Hamilton Re U.S.), premiums increased 5% to $497 million, driven mainly by casualty reinsurance. Bermuda produced $51 million of underwriting income and an 81.8% combined ratio, compared with an underwriting loss of $59 million and a 122.8% combined ratio a year ago. Howie said the year-ago quarter included about 47 points of catastrophe losses from the California wildfires, while the current quarter had none.

Howie said Bermuda’s current-year attritional loss ratio increased to 53.9% from 51.8%, again reflecting business mix and the large loss threshold change. Unfavorable prior-year development was 3.6 points from the Baltimore Bridge reserve estimate. Bermuda’s expense ratio fell to 24.3% from 26.2%, helped by the Bermuda tax credit and increased third-party performance fee income.

On the Bermuda property reinsurance book, Albo noted premiums were down due to “substantial non-recurring reinstatement premiums” in the first quarter of 2025 tied to the California wildfires. Howie later quantified reinstatement premiums at $26 million and said property growth excluding reinstatements would have been -2%.

Market conditions, renewals, and underwriting posture

Albo said reinsurance pricing remained competitive, citing “record levels of industry capital, both traditional and ILS,” and “manageable cat losses” that affected April 1 property catastrophe renewals in Asia Pacific. She said pricing “deteriorated” but remained “risk adequate,” with structures, terms, and conditions “largely intact.”

Looking ahead to mid-year renewals, Albo said the company expects pricing pressure similar to earlier in the year, but emphasized that softening is “coming off historic highs.” She said Hamilton is focused on “margin preservation, attachment points, and terms and conditions.”

In response to questions about Florida renewals, Albo said Florida is “not a big part” of Hamilton’s portfolio and she did not expect that to change at June 1 renewals. She said the company uses Ada Re, its third-party capital arm, to service Florida renewals, and expects to use that vehicle again. For July 1 renewals, Albo said the company’s focus is on “key clients” with broad trading relationships and that terms, conditions, and attachment points are expected to “largely hold.”

Albo also discussed the company’s U.S. E&S platform, Hamilton Select, which grew 17% in the quarter. She said growth was led by excess casualty, general casualty, and small business lines where pricing and terms remain attractive, while professional and medical professional lines were “muted” due to competitive pricing. On the company’s E&S property rollout, Albo said the “property launch just got started,” indicating a Q2 update would follow, and added that smaller to mid-size E&S property rates are “still holding up,” while large account shared and layered business has faced pricing pressure and has been reduced where returns do not meet thresholds.

Geopolitical exposure and loss development

Albo addressed the Middle East conflict, saying direct insured losses have been concentrated in specialty insurance classes such as marine hull and political violence, which Hamilton writes. She said Hamilton’s exposure “remains manageable” and the company has been mindful of capacity deployed in the region and carries outward protection.

Howie added that first-quarter exposures related to the conflict did not meet or exceed the company’s new $10 million large loss or catastrophe loss thresholds. As the conflict continues, he said Hamilton expects loss exposures to continue and would expect to include those losses in the catastrophe loss line going forward, consistent with the company’s reporting approach for Ukraine.

On the Baltimore Bridge reserve increase, Howie said Hamilton initially established a conservative reserve near the high end of an early industry loss estimate range of $1 billion to $3 billion. After feedback during 2025 indicating an industry loss estimate of about $1.5 billion, the company adjusted down, but “in light of the new recently announced settlement,” Hamilton returned to its original ultimate loss estimate of $38 million, resulting in the $14 million unfavorable development in Q1. Howie said the estimate did not include potential subrogation and noted the company did not complete reserve studies in the first quarter, as its reserve studies are completed in the second, third, and fourth quarters.

Investments, capital management, and sidecar structures

Total net investment income was $94 million, down from $167 million in the year-ago quarter. Howie said fixed income, short-term investments, and cash generated a $1 million gain, compared to a $64 million gain in the first quarter of 2025, noting the company’s reporting includes realized and unrealized gains and losses from its trading investment portfolio.

The Two Sigma Hamilton Fund generated a $93 million net return in the quarter, equal to 4.3%, compared with $104 million, or 5.5%, in the year-ago period. The fund represented about 38% of total investments including cash at March 31, 2026. Howie said Two Sigma results are reported quarterly “with no lag.”

On capital management, Howie highlighted a $200 million special dividend declared in February and paid in March, and $20 million of share repurchases during the quarter. The company had $159 million remaining under its repurchase authorization.

Hamilton ended the quarter with $9.9 billion of total assets and $2.7 billion of shareholders’ equity. Book value per share was $27.42 at March 31, 2026, up 3% from year-end 2025 after adjusting for the $2 per share special dividend, according to Howie.

Management also discussed a recently announced casualty reinsurance sidecar. Albo said the structure enables targeted casualty reinsurance growth while generating additional fee income. Howie said premium cessions to the sidecar began in the first quarter and are expected to total about $300 million over a multi-year period. He added that Bermuda retained about 74% of gross premiums written in the first quarter versus 79% a year ago, reflecting premiums ceded to the sidecar.

Asked about the potential for further buybacks or another special dividend, Howie said the company intends to deploy capital into “strong business opportunities” when available, and otherwise “continue to return some of that excess capital to shareholders,” which could include buybacks or a special dividend.

About Hamilton Insurance Group NYSE: HG

Hamilton Insurance Group Ltd. is a Bermuda-based insurance and reinsurance holding company that trades on the New York Stock Exchange under the symbol HG. The company focuses on specialty lines of property and casualty insurance and reinsurance, providing tailored solutions to clients around the world. Its underwriting platform is designed to address complex and niche risks across multiple industry sectors.

Established in 2016 and completing its initial public offering in 2017, Hamilton has concentrated on building a diversified portfolio of insurance and reinsurance products.

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