Bermuda-domiciled re/insurer Hamilton Insurance Group has reported net income of $81 million for the first quarter of 2025, down considerably on the prior year’s $157 million, as the firm’s underwriting result was hit by the California wildfires in January.
The re/insurer has reported a Q1’25 combined ratio of 111.6%, up from 91.5% in Q1’24, and reported an underwriting loss of $58.3 million compared to a gain of $32.5 million in Q1’24.
For Q1’25, catastrophe losses (current and prior year), net of reinsurance, were $150.5 million, driven by the California wildfires of $159.7 million, partially offset by favourable prior year development of $9.2 million.
The California wildfires losses were reported at $142.8 million, net of reinsurance and $16.9 million of reinstatement premiums.
The underwriting result was supported net favorable attritional prior year reserve development, net of reinsurance, of $14.5 million, primarily driven by favorable development in specialty and property classes.
While catastrophes dented the underwriting result, Hamilton has reported a 16.8% or $121.4 million increase in gross premiums written (GPW) to $843.3 million for the first quarter of 2025. The international segment added $49.1 million, or 15.3%, and $72.2 million, or 18% was contributed by the Bermuda segment.
Meanwhile, net premiums written increased by $89.0 million, or 17.3%, to $603.9 million for Q1’25, with an increase of $43.9 million, or 23.7%, in the international segment, and $45.1 million, or 13.7%, in the Bermuda segment.
Further, Q1’25 net premiums earned increased by $113.6 million, or 29.5%, to $498.9 million, with the international segment adding $43.8 million, or 22.2%, and $69.9 million, or 37.1%, contributed by the Bermuda segment.
Although industry cat losses in the opening quarter of the year were historically high, Hamilton still achieved Q1’25 net income of $80.9 million, compared to $157.1 million in Q1’24, with an operating income of $49.4 million compared to $175.2 million in Q1’24.
This is driven by a solid net investment income of $167.3 million, which comprising of Two Sigma Hamilton Fund returns of $103.6 million, and fixed income, short-term and cash and cash equivalents returns of $63.7 million.
The annualised return on average equity for the first quarter is 13.7%, and the annualised operating return on average equity is 8.4%.
Pina Albo, Chief Executive Officer, Hamilton, commented, “Hamilton is off to a strong start with $81 million of net income in the first quarter of 2025 despite industry insured catastrophe losses well above the historical average. We continue to see good opportunities for profitable growth, with gross premiums written up 17% over the prior year.
“Our attritional loss ratio was 51.9%, reflecting the increasing diversification and stability of our underlying book of business. Investment results were significant, with a total investment return of $167 million. The net income result represented a 13.7% annualized return on average equity and 2.8% growth in book value per share for the first quarter.”
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