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February 26, 2025 Reinsurance

Fourth Quarter 2024 Financial Supplement

U.S. Markets via PUBT

Hamilton Insurance Group, Ltd. Supplementary Financial Information

December 31, 2024

Investor Contact

[email protected]

Hamilton Insurance Group, Ltd.
Table of Contents
	Page
I.Basis of Presentation	1

Financial Highlights

	Financial Highlights	4
	Key Operating and Financial Metrics	5
III.	Summary Consolidated Results
	Statements of Operations	6
	Consolidated Balance Sheets	7
	Reconciliation of Consolidated GAAP Balance Sheet to Unconsolidated Balance Sheet	8
	Net Investment Return	9
	Fixed Maturity andShort-TermInvestments	10
IV. Segment Results
	Consolidated Underwriting Results	11
	5Q Consolidated Underwriting Results - Group	13
	5Q Underwriting Results - International	14
	5Q Underwriting Results - Bermuda	15
V.	Other Information
	Modeled Exposure to Catastrophe Losses (PML)	16
	Non-GAAPMeasures	17

Basis of Presentation

All financial information contained herein is unaudited, however, certain information relating to the consolidated balance sheet at the most recent year end is derived from or agrees to audited financial information. Unless otherwise noted, all data is in thousands, except for share and per share amounts and ratio information.

This information is being provided for informational purposes only. It should be read in conjunction with the documents filed by Hamilton Insurance Group, Ltd. (referred to herein as "Hamilton," the "Company," "we," "us" and "our") with the U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2024 (the "Form 10-K").

Special Note Regarding Forward-Looking Statements

This information includes "forward looking statements" pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of terms such as "believes," "expects," "may," "will," "target," "should," "could," "would," "seeks," "intends," "plans," "contemplates," "estimates," or "anticipates," or similar expressions which conceour strategy, plans, projections or intentions. These forward-looking statements appear in a number of places throughout and relate to matters such as our industry, growth strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. By their nature, forward-looking statements: speak only as of the date they are made; are not statements of historical fact or guarantees of future performance; and are subject to risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and projections will be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements.

There are a number of risks, uncertainties, and other important factors that could cause our actual results to differ materially from the forward-looking statements contained herein. Such risks, uncertainties, and other important factors include, among others, the risks, uncertainties and factors set forth in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Form 10-K and other subsequent periodic reports filed with the Securities and Exchange Commission and the following:

challenges from competitors, including those arising from industry consolidation and technological advancements;
unpredictable catastrophic events, global climate change and/or emerging claim and coverage issues;
our ability, or those of the third parties on which we rely, to ensure reserves are adequate to cover actual losses and to accurately evaluate underwriting risk, models, assessments and/or pricing of risks;
our ability to defend our intellectual property rights, including our proprietary technology platforms, to comply with our obligations under our license and technology agreements or to license rights to technology or data on reasonable terms;
the impact of risks associated with human error, fraud, model uncertainties, cybersecurity threats such as cyber-attacks and security breaches and our reliance on third-party information technology ("IT") systems that can fail or need replacement;
our ability to secure necessary credit facilities, or additional types of credit, on favorable terms or at all;
our limited financial and operating flexibility due to the covenants in our existing credit facilities;
our exposure to the credit risk of the intermediaries on which we rely;
our failure to pay claims in a timely manner or the need to sell investments under unfavorable conditions to meet liquidity requirements;

Basis of Presentation (continued)

Special Note Regarding Forward-Looking Statements (continued)

downgrades, potential downgrades or other negative actions by rating agencies;
our ability to manage risks associated with macroeconomic conditions resulting from geopolitical and global economic events, including current or anticipated military conflicts, public health crises, terrorism, sanctions, rising energy prices, inflation and interest rates and other global events;
the cyclical nature of the insurance and reinsurance business, which may cause the pricing and terms for our products to decline;
our results of operations potentially fluctuating significantly from period to period and not being indicative of our long-term prospects;
our ability to execute our strategy and to modify our business and strategic plan without shareholder approval;
our dependence on key executives, including the potential loss of Bermudian personnel, and our ability to attract qualified personnel, particularly in very competitive hiring conditions;
foreign operational risk such as foreign currency risk and political risk;
our ability to identify and execute opportunities for growth, to complete transactions as planned or realize the anticipated benefits of any acquisitions or other investments;
our management of alternative reinsurance platforms on behalf of investors in entities managed by Hamilton Strategic Partnerships;
our inability to control the allocations to, and/or the performance of, the Two Sigma Hamilton Fund, LLC ("TS Hamilton Fund" or "Two Sigma Hamilton Fund") investment portfolio and our limited ability to withdraw our capital accounts;
the impact of risks from conflicts of interest among Two Sigma Principals, LLC, Two Sigma Investments, LP ("Two Sigma") and their respective affiliates affecting our business;
the historical performance of Two Sigma not being indicative of the future results of the TS Hamilton Fund's investment portfolio and/or of our future results;
the impacts of risks associated with our investment strategy, including that such risks are greater than those faced by our competitors;
our potentially becoming subject to U.S. federal income taxation, Bermuda taxation or other taxes as a result of a change of tax laws or otherwise;
the potential characterization of us and/or any of our subsidiaries as a passive foreign investment company, or PFIC;
our potentially becoming subject to U.S. withholding and information reporting requirements under the U.S. Foreign Account Tax Compliance Act, or FATCA, provisions;
our ability to compete effectively in a heavily regulated industry in light of new domestic or international laws and regulations, including accounting practices, and the impact of new interpretations of current laws and regulations;
the suspension or revocation of our subsidiaries' insurance licenses;
significant legal, governmental or regulatory proceedings;
our insurance and reinsurance subsidiaries' ability to pay dividends and other distributions to us being restricted by law;
challenges related to compliance with the applicable laws, rules and regulations related to being a public company, which is expensive and time consuming;
the limited ability of investors to influence corporate matters due to our multiple class common share structure and the voting provisions of our Bye-laws;
the risk that anti-takeover provisions in our Bye-laws could discourage, delay, or prevent a change in control, even if the change in control would be beneficial to our shareholders;
the difficulties investors may face in protecting their interests and serving process or enforcing judgments against us in the United States; and
our current strategy does not include paying cash dividends on our Class B common shares in the near term.

Basis of Presentation (continued)

Special Note Regarding Forward-Looking Statements (continued)

There may be other factors that could cause our actual results to differ materially from the forward-looking statements, including factors disclosed under the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Form 10-K and other subsequent periodic reports filed with the Securities and Exchange Commission. You should evaluate all forward-looking statements made herein in the context of these risks and uncertainties.

You should read this information completely and with the understanding that actual future results may be materially different from expectations. We caution you that the risks, uncertainties, and other factors referenced above may not contain all of the risks, uncertainties and other factors that are important to you. In addition, we cannot assure you that we will realize the results, benefits, or developments that we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our business in the way expected. All forward-looking statements contained herein apply only as of the date hereof and are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.

Financial Highlights

		Three Months Ended December 31,			Year Ended December 31,
($ in thousands)		2024			2023			2024	2023
Net income (loss) attributable to common shareholders	$	33,920	$	126,865	$	400,429	$	258,727
Underwriting income (loss)
Gross premiums written	$	543,937	$	433,791	$	2,422,582	$	1,951,038
Net premiums written		453,326			363,666			1,921,169	1,480,438
Net premiums earned		481,867			366,135			1,734,729	1,318,533
Underwriting income (loss)	$	22,444	$	36,028	$	149,364	$	129,851

Key Ratios:
Attritional loss ratio - current year	51.2 %	53.2 %	53.1 %	52.2 %
Attritional loss ratio - prior year development	(1.3)%	(1.7)%	0.0 %	(0.8)%
Catastrophe loss ratio - current year	11.9 %	1.9 %	6.3 %	3.2 %
Catastrophe loss ratio - prior year development	(1.7)%		(0.1)%		(1.2)%	(0.4)%
Loss and loss adjustment expense ratio	60.1 %	53.3 %	58.2 %	54.2 %
Acquisition cost ratio	22.0 %	24.2 %	22.4 %	23.4 %
Other underwriting expense ratio	13.3 %		12.7 %		10.7 %	12.5 %
Combined ratio	95.4 %	90.2 %	91.3 %	90.1 %

Investments
Total assets	$	7,796,033	$	6,671,355	$	7,796,033	$	6,671,355
Total cash and invested assets(1)		4,773,236			3,981,676			4,773,236		3,981,676
Total investment return(2)		35,667			113,981			361,945		218,506
Two Sigma Hamilton Fund
Total net realized and unrealized gains (losses) on investments and net investment income (loss) -		107,474			43,206			487,186		143,655
TSHF
Net income (loss) attributable to non-controlling interest - TSHF		40,489			6,484			212,729		21,560
	$	66,985	$	36,722	$	274,457	$	122,095
Two Sigma Hamilton Fund return, net of investment management fees and performance incentive
	3.7 %			2.2 %			16.3 %		7.6 %
allocations
Fixed income, short term investments and cash and cash equivalents
Total net realized and unrealized gains (losses) on investments and net investment income (loss) -	$	(31,318)	$	77,259	$	87,488	$	96,411
other

Total cash and total investments, plus receivables for investments sold, less payables for investments purchased, payables to related parties (TSHF) and non-controlling interest (TSHF).
Net realized and unrealized gains (losses) on investments, plus net investment income (loss), less non-controlling interest.

Financial Highlights

Key Operating and Financial Metrics

		Three Months Ended December 31,			Year Ended December 31,
($ in thousands, except per share amounts)		2024			2023			2024	2023
Income (loss) per share attributable to common shareholders - basic	$	0.33	$	1.18	$	3.81	$	2.47
Income (loss) per share attributable to common shareholders - diluted	$	0.32	$	1.15	$	3.67	$	2.44
Weighted average common shares outstanding - basic		101,809			107,092			105,133	104,563
Weighted average common shares outstanding - diluted		105,867			110,100			109,101	106,203
Retuon average common shareholders' equity - annualized		5.8 %			26.4 %			18.3 %	13.9 %
		December 31,			December 31,
		2024			2023
Closing common shareholders' equity, less intangible assets	$	2,235,588	$	1,956,854
Closing common shareholders' equity	$	2,328,709	$	2,047,850
Closing common shares outstanding		101,466,997			110,225,103
Tangible book value per common share	$	22.03	$	17.75
Book value per common share	$	22.95	$	18.58
Year to date change in tangible book value per common share		24.1%			16.0%
Year to date change in book value per common share		23.5%			15.1%

Summary Consolidated Results

Statements of Operations

		Three Months Ended December 31,			Year Ended December 31,
($ in thousands, except per share amounts)		2024			2023			2024	2023
Revenues
Gross premiums written	$	543,937	$	433,791	$	2,422,582	$	1,951,038
Reinsurance premiums ceded		(90,611)			(70,125)			(501,413)	(470,600)
.........................................................................................................................................Net premiums written		453,326			363,666			1,921,169	1,480,438
Net change in unearned premiums		28,541			2,469			(186,440)	(161,905)
........................................................................................................................................Net premiums earned		481,867			366,135			1,734,729	1,318,533
Net realized and unrealized gains (losses) on investments		56,556			107,728			511,407	209,610
Net investment income (loss)		19,600			12,737			63,267	30,456
...Total net realized and unrealized gains (losses) on investments and net investment income (loss)		76,156			120,465			574,674	240,066
Third party fee income		5,818			10,480			23,752	18,234
Other income (loss), excludingthird-partyfee income		-			312			-	397
Net foreign exchange gains (losses)		6,652			(2,230)			(3,231)	(6,185)
..................................................................................................................................................Total revenues		570,493			495,162			2,329,924	1,571,045
Expenses
Losses and loss adjustment expenses		289,695			195,049			1,010,173	714,603
Acquisition costs		105,872			88,615			388,931	309,148
Other underwriting expenses		69,674			56,923			210,013	183,165
Corporate expenses		19,286			44,858			61,111	76,691
Amortization of intangible assets		3,747			2,914			15,520	10,783
Interest expense		5,526			5,428			22,616	21,434
..................................................................................................................................................Total expenses		493,800			393,787			1,708,364	1,315,824
Income (loss) before income tax		76,693			101,375			621,560	255,221
Income tax expense (benefit)		2,284			(31,974)			8,402	(25,066)
.............................................................................................................................................Net income (loss)		74,409			133,349			613,158	280,287
Net income (loss) attributable tonon-controllinginterest		40,489			6,484			212,729	21,560
Net income (loss) and other comprehensive income (loss) attributable to common	$	33,920	$	126,865	$	400,429	$	258,727
shareholders
Per share data

Income (loss) per share attributable to common shareholders - basic	$	0.33	$	1.18	$	3.81	$	2.47
Income (loss) per share attributable to common shareholders - diluted	$	0.32	$	1.15	$	3.67	$	2.44
Retuon average common shareholders' equity - annualized		5.8 %			26.4 %			18.3 %	13.9 %

Summary Consolidated Results

Consolidated Balance Sheets

		December 31,			September 30,			June 30,			March 31,		December 31,
($ in thousands, except share information)		2024			2024			2024			2024		2023
Assets
Fixed maturity investments, at fair value (amortized cost December 31, 2024: $2,422,917)	$	2,377,862	$	2,320,184	$	2,068,930	$	1,877,130	$	1,831,268
Short-term investments, at fair value (amortized cost December 31, 2024: $495,630)		497,110			507,947			463,542			352,068		428,878
Investments in Two Sigma Funds, at fair value (cost December 31, 2024: $805,623)		939,381			932,787			923,682			953,659		851,470
Total investments		3,814,353			3,760,918			3,456,154			3,182,857		3,111,616
Cash and cash equivalents		996,493			957,372			1,016,573			1,085,038		794,509
Restricted cash and cash equivalents		104,359			93,883			98,279			95,565		106,351
Premiums receivable		771,707			885,744			933,211			856,111		658,363
Paid losses recoverable		134,406			146,008			147,690			169,469		145,202
Deferred acquisition costs		208,985			205,953			203,279			190,883		156,895
Unpaid losses and loss adjustment expenses recoverable		1,171,040			1,190,465			1,160,309			1,167,504		1,161,077
Receivables for investments sold		74,006			39,079			12,307			17,777		42,419
Prepaid reinsurance		218,921			260,174			299,574			285,984		194,306
Intangible assets		93,121			94,441			94,410			92,651		90,996
Other assets		208,642			192,510			201,317			205,186		209,621
...............................................................................................................................................................................Total assets	$	7,796,033		$	7,826,547		$	7,623,103		$	7,349,025	$	6,671,355
Liabilities, non-controlling interest, and shareholders' equity
Liabilities
Reserve for losses and loss adjustment expenses	$	3,532,491	$	3,434,800	$	3,242,893	$	3,148,782	$	3,030,037
Unearned premiums		1,122,277			1,192,071			1,202,371			1,132,477		911,222
Reinsurance balances payable		261,275			334,511			399,633			367,123		272,310
Payables for investments purchased		115,427			172,905			111,280			55,071		66,606
Term loan, net of issuance costs		149,945			149,916			149,887			149,859		149,830
Accounts payable and accrued expenses		185,361			168,658			158,187			155,684		186,887
Payables to related parties		100,420			-			43,030			75,797		6,480
..........................................................................................................................................................................Total liabilities		5,467,196			5,452,861			5,307,281			5,084,793		4,623,372
Non-controllinginterest - TS Hamilton Fund		128			60,060			77,275			54,727		133
Shareholders' equity
Common shares:
Class A, authorized (December 31, 2024: 26,944,807), par value $0.01; issued and outstanding (December 31,		178			178			195			286		286
2024: 17,820,078)
Class B, authorized (December 31, 2024: 80,205,911), par value $0.01; issued and outstanding (December 31,		643			637			574			568		560
2024: 64,271,249)
Class C, authorized (December 31, 2024: 19,375,670), par value $0.01; issued and outstanding (December 31,		194			199			250			255		255
2024: 19,375,670)
Additionalpaid-in-capital		1,163,609			1,172,331			1,171,585			1,255,055		1,249,817
Accumulated other comprehensive loss		(4,441)			(4,441)			(4,441)			(4,441)		(4,441)
Retained earnings		1,168,526			1,144,722			1,070,384			957,782		801,373
Total shareholders' equity		2,328,709			2,313,626			2,238,547			2,209,505		2,047,850
Total liabilities,non-controllinginterest, and shareholders' equity	$	7,796,033	$	7,826,547	$	7,623,103	$	7,349,025	$	6,671,355

Summary Consolidated Results

Reconciliation of Consolidated GAAP Balance Sheet to Unconsolidated Balance Sheet

				December 31, 2024
	Consolidated GAAP			Two Sigma			Unconsolidated
			Hamilton Fund
($ in thousands)		Balance Sheet			Balances			Balance Sheet(1)
Assets
Fixed maturity investments, at fair value	$	2,377,862	$	-	$	2,377,862
Short-terminvestments, at fair value		497,110			(496,008)			1,102
Investments in Two Sigma Funds, at fair value		939,381			947,255			1,886,636
.........................................................................................................................................................................................................................Total investments		3,814,353			451,247			4,265,600
Cash and cash equivalents		996,493			(578,230)			418,263
Restricted cash and cash equivalents		104,359			-			104,359
Premiums receivable		771,707			-			771,707
Paid losses recoverable		134,406			-			134,406
Deferred acquisition costs		208,985			-			208,985
Unpaid losses and loss adjustment expenses recoverable		1,171,040			-			1,171,040
Receivables for investments sold		74,006			(73,322)			684
Prepaid reinsurance		218,921			-			218,921
Intangible assets		93,121			-			93,121
Other assets		208,642			(945)			207,697
.................................................................................................................................................................................................................................Total assets	$	7,796,033		$	(201,250)		$	7,594,783
Liabilities, non-controlling interest, and shareholders' equity
Liabilities
Reserve for losses and loss adjustment expenses	$	3,532,491	$	-	$	3,532,491
Unearned premiums		1,122,277			-			1,122,277
Reinsurance balances payable		261,275			-			261,275
Payables for investments purchased		115,427			(100,469)			14,958
Term loan, net of issuance costs		149,945			-			149,945
Accounts payable and accrued expenses		185,361			(233)			185,128
Payables to related parties		100,420			(100,420)			-
............................................................................................................................................................................................................................Total liabilities		5,467,196			(201,122)			5,266,074
Non-controllinginterest - TS Hamilton Fund		128			(128)			-
Shareholders' equity
Common shares:
Class A, par value $0.01		178			-			178
Class B, par value $0.01		643			-			643
Class C, par value $0.01		194			-			194
Additionalpaid-in-capital		1,163,609			-			1,163,609
Accumulated other comprehensive loss		(4,441)			-			(4,441)
Retained earnings		1,168,526			-			1,168,526
......................................................................................................................................................................................................Total shareholders' equity		2,328,709			-			2,328,709
Total liabilities, non-controlling interest, and shareholders' equity
$	7,796,033		$	(201,250)		$	7,594,783

We present our balance sheet on an unconsolidated basis above, which we believe is meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. The unconsolidated balances are non-GAAP financial measures, with the above table providing an appropriate reconciliation to comparable GAAP measures.

Attachments

Disclaimer

Hamilton Insurance Group Ltd. published this content on February 26, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 26, 2025 at 21:30:59.810.

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