Hamilton Insurance Group Q2 Earnings Call Highlights
Sat, August 8, 2026 at 3:03 PM GMT+3 7 min read
Key Points
-
Interested in Hamilton Insurance Group, Ltd.? Here are five stocks we like better.
-
Hamilton reported strong profitability despite catastrophe losses: Second-quarter net income was $144 million, or $1.42 per diluted share, while operating income reached $158 million and annualized return on average equity was 21%. Gross premiums written rose 17% year over year.
-
Underwriting performance weakened due to Middle East-related claims. The combined ratio increased to 95.0% from 86.8%, with $50 million in catastrophe losses—$46 million tied to the Middle East conflict—contributing to a decline in underwriting income to $29 million.
-
Hamilton maintained its growth outlook and is expanding Hamilton Select. Management continues to expect low-double-digit full-year premium growth and attritional loss ratios of about 55% for the group, while broadening Hamilton Select into additional U.S. excess-and-surplus lines, including life sciences.
-
Lemonade: Leveraging AI to Underwrite a Path to Profitability
Hamilton Insurance Group (NYSE:HG) reported second-quarter net income of $144 million, or $1.42 per diluted share, as catastrophe losses tied primarily to the Middle East conflict weighed on underwriting results. The insurer recorded an annualized return on average equity of 21% and operating income of $158 million, or $1.56 per diluted share, for the quarter.
Group Chief Executive Officer Pina Albo said the company's results reflected a diversified portfolio, investment income and selective premium growth despite geopolitical tensions, inflation and a competitive insurance and reinsurance market. Gross premiums written increased 17% during the quarter, while total premium growth for the first half reached 14% to $1.8 billion.
Catastrophe Losses Lift Combined Ratio
→ Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling
-
MarketBeat Week in Review – 12/4 - 12/8
Hamilton's combined ratio was 95.0% in the second quarter, compared with 86.8% a year earlier. Underwriting income declined to $29 million from $67 million in the prior-year period.
Group Chief Financial Officer Craig Howie said the loss ratio rose to 61.7% from 52.8%, driven largely by $50 million of catastrophe losses, equivalent to 8.5 points on the combined ratio. About $46 million of those losses, or 7.8 points, stemmed from the Middle East conflict.
→ 4 Oil and Gas ETF Plays as Prices Stay Sky-High
-
Suddenly markets are betting on Hagerty, AutoZone after UAW
Total investment income was $141 million, down from $149 million in the second quarter of 2025. The company's fixed-income portfolio, short-term investments and cash generated a $26 million gain, while the Two Sigma Hamilton Fund produced a net return of $115 million, or 5.1%, during the period. The fund represented about 39% of Hamilton's total investments, including cash, as of June 30.
The company's fixed-income portfolio had an average yield to maturity of 4.7%, a duration of 4.0 years and a new-money yield of 4.6% on second-quarter purchases, according to Howie.
International and Bermuda Segments
→ No Hangover: Revisiting Microsoft One Week After Earnings
Hamilton's International segment, which includes Hamilton Global Specialty and Hamilton Select, grew first-half premium 21% to $863 million. Second-quarter underwriting income for the segment was $9 million, compared with $27 million a year earlier, while its combined ratio increased to 97.0% from 89.3%.
The International segment absorbed $34 million of catastrophe losses, or 11.1 points on its combined ratio, related to the Middle East conflict. Its current-year attritional loss ratio was 51.1%, down 0.8 points from the prior-year period. Howie said the company continues to expect the segment's full-year attritional loss ratio to be about 54.5%.
International gross premiums written increased 22% in the quarter to $420 million. Hamilton Global Specialty grew 22%, led by specialty and casualty lines, including accident and health business that benefited from seasonality. Albo said the company reduced writings in larger commercial D&F property insurance because returns did not meet its thresholds.
Hamilton Select grew 18%, driven by excess casualty, excess property, products and contractors business. The company was more selective in medical and professional lines because of competitive pricing, Albo said.
The Bermuda segment, which includes Hamilton Re and Hamilton Re US, grew first-half premium 8% to $908 million. Quarterly underwriting income was $20 million, compared with $40 million in the prior-year quarter, and the combined ratio increased to 93.0% from 84.3%.
Bermuda recorded $16 million of catastrophe losses, or 5.8 points, mainly related to the Middle East conflict. The segment also reported unfavorable prior-year attritional loss development of 4.6 points, primarily related to certain casualty classes.
Howie said Hamilton completed a scheduled casualty reserve review that resulted in a $16 million reserve charge on certain casualty lines. He said approximately $5 million related to additional information on one 2018 loss, while about two-thirds of the review's impact came from 2022 and 2023 accident years. The charge represented about 0.8% of the company's net casualty reserves and about 0.5% of its total net reserve position.
Selective Growth and Hamilton Select Expansion
Albo said market competition remains concentrated in property business, where pressure is principally focused on price, while casualty pricing has remained more stable and rate increases continue in many lines. Specialty business was competitive at mid-year, though recent loss activity has created opportunities in select classes such as marine hull, cargo and political violence.
In Bermuda, premium growth was led by casualty reinsurance, including business bound in prior quarters and higher shares on select accounts with key trading partners. Property reinsurance premiums declined because of lower rates, partly offset by better signings with select clients. Specialty reinsurance grew on aviation business where pricing and conditions were attractive.
Hamilton also highlighted its plans to broaden Hamilton Select's U.S. excess and surplus platform. AM Best upgraded Hamilton Select's rating to A from A- in May. Albo said the rating supports the company's aim for Select to become a third major underwriting platform alongside Hamilton Global Specialty and Hamilton Re.
The company is expanding beyond hard-to-place accounts into additional lines and lower-middle-market E&S risks. Albo said the initiative began with a property product and that life sciences is expected to be the next class introduced. She said the expansion is expected to contribute some growth in 2026, with more growth anticipated in 2027 as the company adds underwriting personnel and distribution relationships.
Hamilton said it does not intend to spin off Hamilton Select, which Albo described as a strategic part of the group's diversified platform.
Capital Position and Outlook
During the second quarter, Hamilton repurchased $22 million of shares, bringing year-to-date repurchases to $42 million. The company had $137 million remaining under its share-repurchase authorization.
Total assets were $10.3 billion at June 30, up 7% from year-end 2025. Total investments and cash were $6.1 billion, while shareholders' equity was $2.9 billion. Book value per share was $28.91, and book value per share adjusted for accumulated dividends was $30.91, up 8.5% from year-end.
Howie said Hamilton's guidance remained unchanged. The company expects low-double-digit premium growth for the full year, with group, International and Bermuda attritional loss ratios of approximately 55%, 54.5% and 56%, respectively. Over the cycle, Hamilton expects to operate with a combined ratio in the low-to-mid-90s and generate return on equity in the teens.
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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
The article "Hamilton Insurance Group Q2 Earnings Call Highlights" was originally published by MarketBeat.
Yorumlar (0)
Giriş yaparak yorum yazabilirsin.
İlk yorumu sen yaz.