Hamilton Insurance Group NYSE: HG reported third-quarter 2026 net income of $81 million, or $0.81 per diluted share, as catastrophe losses tied to the conflicts in Ukraine and the Middle East weighed on underwriting results. Operating income, a non-GAAP measure that excludes realized and unrealized fixed-income portfolio results, totaled $180 million, or $1.78 per diluted share.
Group Chief Executive Officer Pina Albo said the insurer produced an annualized return on average equity of 11% and an annualized operating return on average equity of 25%. She also said book value per share has increased 83% since the company’s IPO.
Hamilton’s combined ratio was 97.3% for the quarter, compared with 87.8% a year earlier. A ratio below 100% generally indicates underwriting profitability. Underwriting income declined to $16 million from $64 million in the prior-year quarter.
Conflict-related losses affect underwriting
Group Chief Financial Officer Craig Howie said the loss ratio rose 8.7 percentage points year over year to 62.0%, primarily because of catastrophe losses. The company recorded 8.0 prior-year loss-ratio points associated with the Ukraine conflict and 1.1 current-year points related to the Middle East conflict.
Those losses were partly offset by 4.6 points of favorable attritional prior-year reserve development, primarily in specialty lines. Hamilton also completed a scheduled specialty reserve review during the quarter, resulting in a net $12 million reserve charge on certain specialty lines.
The charge included $42 million of estimated specialty losses related to the Ukraine conflict, partially offset by $30 million of favorable prior-year reserve development in other specialty lines. Howie said the Ukraine-related adjustment reflected additional reported-loss information, particularly involving aviation reinsurance and retrocession exposures.
Hamilton said the total net reserve adjustment represented about 0.3% of its total net loss reserves. The company’s Ukraine aviation exposure is primarily in reinsurance and retrocession rather than direct aviation insurance, Howie said, which can lengthen reporting timelines.
In Bermuda, a large energy-market loss at Ras Laffan also affected the current-year attritional loss ratio. Hamilton’s total loss for the event was $17 million, including $13 million in its Bermuda segment, according to Howie.
Premium growth led by specialty and casualty
Gross premiums written increased 17% in the third quarter, supported primarily by specialty and casualty business. For the first nine months of 2026, total premium grew 15% to $2.6 billion, from $2.3 billion in the comparable 2025 period.
International gross premiums written rose 20% to $456 million in the quarter. Hamilton Global Specialty grew 20%, led by accident and health, professional lines and marine hull. The marine hull result included higher war-risk ratings in the Middle East, Albo said.
Hamilton Select grew 22%, driven by its new property offering, excess casualty and small-business business. Albo said the unit’s recently upgraded A financial-strength rating from AM Best has supported growth in hard-to-place business and the rollout of an expanded underwriting appetite, including additional classes and lower-middle-market risks.
The Bermuda segment grew 14% to $363 million in gross premiums written, driven by casualty and specialty reinsurance, including financial risks and aviation. Hamilton continued to reduce writings in large-account property insurance and reinsurance where pricing, terms or expected returns did not meet its standards.
Management said it expects group underlying loss-ratio guidance to remain unchanged, at approximately 55% for the group, 54.5% for International and 56% for Bermuda. Hamilton also continues to plan for a catastrophe loss ratio of roughly 6% to 7%.
Market outlook and disciplined growth
Albo said property catastrophe reinsurance pricing remains under pressure, but Hamilton does not expect January 2027 price reductions to match those seen during the prior January renewal. She said the company expects rates to remain adequate, with terms, conditions, retentions and attachment points largely intact.
In casualty, management said rates are not uniformly keeping pace with loss-cost trends. Hamilton is focusing its reinsurance support on clients with strong data, pricing, underwriting and claims practices. The company expects casualty reinsurance growth to become more tempered after targeted expansion since entering the market near the end of 2022.
Hamilton expects specialty rates in loss-affected areas to remain healthy, though management also expects increased market interest in specialty as a diversifying class. The company said it will prioritize underwriting profitability rather than pursue premium growth for its own sake.
Howie said Hamilton still expects low-double-digit premium growth for the full year, while emphasizing that capital will be allocated to lines offering the strongest risk-adjusted returns.
Investment returns and capital management
Total net investment income was $88 million, down from $98 million in the third quarter of 2025. The company’s fixed-income portfolio, short-term investments and cash posted a $56 million loss, compared with a $43 million gain a year earlier, reflecting realized and unrealized results reported through earnings for its trading portfolio.
The Two Sigma Hamilton Fund generated a 6.1% net return, or $145 million, in the quarter and a 16.3% net return, or $353 million, year to date. The fund represented about 39% of total investments and cash at Sept. 30.
Hamilton’s fixed-income portfolio had a 5.6% average yield to maturity, a 3.8-year duration and a 5.1% new-money yield on third-quarter investments. Howie said the portfolio’s higher yields should provide support for investment income.
The company repurchased $3 million of shares during the quarter and another $2 million after quarter-end, bringing year-to-date repurchases to $45 million. Hamilton had $134 million remaining under its repurchase authorization. It also paid a $200 million special dividend in the first quarter.
As of Sept. 30, Hamilton reported total assets of $10.8 billion, total investments and cash of $6.4 billion, and shareholders’ equity of $2.9 billion. Book value per share was $29.80, while book value per share adjusted for accumulated dividends was $31.80, up 12% from year-end 2025.
About Hamilton Insurance Group (NYSE:HG)
Hamilton Insurance Group, Ltd. NYSE: HG is a Bermuda-based specialty insurance and reinsurance company. Through its operating subsidiaries, the company provides underwriting capacity for commercial and specialty risks, serving businesses, insurers and other clients in selected global markets.
Hamilton's offerings include property and casualty insurance, specialty lines and reinsurance. Its business is conducted through platforms in Bermuda, the United States and the United Kingdom, with products and coverage tailored to complex or niche risks that may require specialized underwriting expertise.
Founded in 2013, Hamilton has developed a multinational operating platform that combines insurance and reinsurance capabilities.
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