Hamilton Insurance Group Ltd. Q1 FY2025 earnings call

• Hamilton had a profitable quarter despite $55B global insured catastrophe losses, with catastrophe loss ratio 30.2% including $143M CA wildfire net loss. - Attritional loss ratio 51.9% showed stability. Gross premiums written up 17%, investment return $167M offset catastrophes. - Bermuda segment (Hamilton Re) had 18% growth in gross premiums written, driven by casualty and property; International segment (Hamilton Global Specialty and Hamilton Select) had 15% growth, with U.S. E&S business leading. - 4/1 reinsurance renewals: Japanese accounts had stable terms, U.S. property cat renewals had rate changes based on loss status. Midyear renewals see increased demand, stable supply. - Addressed economic and geopolitical uncertainty, noting tariffs may impact loss costs, but insurance/reinsurance resilient in recession.

Bermuda segment: Gross premiums written $473 million, up 18%. Underwriting loss $59 million, combined ratio 122.8%. International segment: Gross premiums written $370 million, up 15%. Underwriting income $1 million, combined ratio 99.7%. Bermuda's growth was driven by casualty and property reinsurance, including reinstatement premiums. International's growth was from U.S. E&S business, with Hamilton Global Specialty and Hamilton Select contributing.

• Anticipate continued double-digit top line growth. - Still have $112 million remaining under share repurchase authorization, able to repurchase shares and support growth. - Expect $80 million in premiums related to A.M. Best upgrade, with $40 million achieved in Q1.

• Economic and geopolitical uncertainty, including tariffs which could lead to loss cost inflation. - Potential recession, though insurance/reinsurance are resilient but still a risk factor.

Q: Broader question on casualty line of business, loss trend assumptions.

A: Pina mentioned low to mid-teens on clients' books, selective with clients based on underwriting culture.

Q: Combined ratio movement, attritional loss ratio.

A: Craig said current year attritional loss picks in line with expectations, mix of business affects loss picks.

Q: Quantify reinstatement premium level.

A: Craig said $17 million net between reinsurance and insurance.

Q: Shift in business mix impacting expense ratio.

A: Craig said acquisition expenses up due to business mix and profit commissions.

Q: Casualty growth opportunity, winning business.

A: Pina said selective approach, targeting clients with specific underwriting and claims culture.

Q: Buyback, growth outlook.

A: Craig said plenty of capital for growth and buybacks.

Q: Reserves, favorable development.

A: Craig said predominantly property and specialty releases, some casualty reserves unfavorable but offset by settlements.

Q: Buyback window, Two Sigma returns.

A: Craig said window shorter due to 10-K timing, Two Sigma returns monthly, 7.9% YTD through April.

Q: Large risk losses in ex-cat accident year loss ratio.

A: Craig said aviation losses manageable and included in attritional loss picks.