Hamilton Insurance Group, Ltd. Q4 FY2025 earnings call

Key drivers include strong team with operational and underwriting culture, relationships with clients and brokers, and strong capital position. 2025 delivered record net income $577,000,000, gross premiums written $2,900,000,000, combined ratio 92.9%. Fourth quarter gross premiums written up 23%. Bermuda segment grew 27% driven by casualty reinsurance, reduced property D&F participations. International segment grew 20%, Hamilton Global Specialty up 21% with specialty and casualty growth, pared back large property D&F. Hamilton Select grew 19% in casualty classes. January 1 renewal season was constructive, focused on attractive property accounts and casualty reinsurance growth.

Bermuda segment: Fourth quarter gross premiums written grew 27%, full year grew 26% to $1,400,000,000. Fourth quarter underwriting income $63,000,000, combined ratio 76.4%. International segment: Fourth quarter gross premiums written grew 20%, full year grew 16% to $1,500,000,000. Fourth quarter underwriting income $12,000,000, combined ratio 96%. Hamilton Select: Fourth quarter grew 19%, focused on casualty classes like excess casualty, products and contractors, small business but wrote less professional liability.

2026 expected market competitive but pricing in targeted lines of business to remain largely risk adequate, growth to be more measured than past. Increase catastrophe and headline loss threshold to $10,000,000, attritional loss ratio expected to run at about 55% in 2026. Corporate expenses expected to run between $45,000,000 and $50,000,000.

Large losses in quarters impacting attritional loss ratio, competition in certain lines of business affecting underwriting, potential market changes impacting pricing and growth.

Q: On underlying loss ratio guide for 2026, how does it change from 2025?

A: 2026 attritional loss ratio expected 55% due to threshold change from $5,000,000 to $10,000,000.

Q: Reason for special dividend?

A: After record earnings, returning excess capital to shareholders, still able to buy back shares.

Q: Competition on E&S casualty side?

A: Increased competition on professional lines, but Select growth in excess casualty, products etc. in line with plans.

Q: Optimal premium leverage?

A: Retaining about 80% net, changing with market mix.

Q: Data center opportunity?

A: Seeing opportunity, offering physical damage-only covers, monitoring accumulation.

Q: Reserves favorability?

A: Favorable from property and specialty, casualty flat.

Q: Casualty reinsurance clients?

A: Target clients with good data, in-house claims handling.

Q: Corporate expense line?

A: VAP expired, corporate expenses expected $45 - $50M.

Q: Two Sigma fund returns?

A: Reported quarterly, historically outperformed, never had calendar year loss.

Q: Special dividend funds source?

A: Available cash and fixed income portfolio.

Q: Elevated large losses?

A: More large losses in 2025 quarter, impacted by satellite loss.

Q: Bermuda tax credit reinvestment?

A: To reduce operating expenses, invest in operations and technology across platforms.

Q: Technology and underwriting principles?

A: Using AI for efficiency, robust control framework, deploying in underwriting and claims, smart queuing in Select.