Hamilton Insurance Group — Q3 2026 Earnings Summary

Financial Performance:

• Net income for the third quarter of 2026 was $81.5 million ($0.81 per diluted share), compared to $136.2 million ($1.32 per diluted share) in the same period in 2025.
• Operating income for the third quarter was $179.9 million ($1.78 per diluted share), compared to $123.1 million ($1.20 per diluted share) in the prior year period.
• Annualized return on average equity was 11.3% for the quarter, down from 20.9% in the prior year; annualized operating return on average equity was 24.9%, up from 18.9%.
• Gross premiums written increased 17.3% to $819.7 million in Q3 2026, compared to $698.8 million in Q3 2025.
• Net premiums earned increased 13.1% to $591.3 million in Q3 2026, compared to $523.0 million in Q3 2025.
• The combined ratio for the quarter was 97.3%, an increase of 9.5 percentage points from 87.8% in Q3 2025.
• Underwriting income was $15.5 million in Q3 2026, compared to $64.1 million in Q3 2025.
• Net investment income was $88.4 million, comprised of $144.7 million from the Two Sigma Hamilton Fund and a $56.3 million loss from fixed income, short-term, and cash equivalents.
• Year-to-date net income was $358.8 million ($3.54 per diluted share), compared to $404.5 million ($3.88 per diluted share) in the same period in 2025.
• Year-to-date operating income was $504.9 million ($4.98 per diluted share), compared to $334.3 million ($3.20 per diluted share) in the same period in 2025.
• Year-to-date gross premiums written were $2.6 billion, up 14.9% from $2.25 billion in the prior year period.
• Year-to-date combined ratio was 94.1%, an improvement of 1.1 percentage points from 95.2% in the prior year period.
• Total shareholders' equity was $2.9 billion as of September 30, 2026, compared to $2.8 billion as of December 31, 2025.
• Book value per common share was $29.80 as of September 30, 2026, an increase of 4.6% from $28.50 at year-end 2025.

Guidance and Future Outlook:

• No specific forward guidance, future growth targets, or long-term financial outlooks were provided in the press release.
• Management noted the company continues to deliver consistent performance despite a transitioning market and ongoing geopolitical tensions.

Business Segments and Product Lines:

• International Segment: Gross premiums written increased 20.1% to $456.3 million in Q3 2026, driven by growth in specialty and casualty insurance classes and specialty reinsurance classes. The combined ratio was 97.1%.
• Bermuda Segment: Gross premiums written increased 13.9% to $363.4 million in Q3 2026, driven by growth in casualty and specialty reinsurance classes. The combined ratio was 97.7%.
• Year-to-Date Segment Performance: International gross premiums written increased 20.5% to $1.3 billion, while Bermuda gross premiums written increased 9.7% to $1.3 billion.
• Loss Ratios: The attritional loss ratio (current year) for the consolidated company was 57.5%, driven by a change in business mix including more casualty reinsurance and one large loss in specialty and property reinsurance classes.
• Catastrophe Losses: Consolidated catastrophe losses were $53.9 million, driven by the Middle East conflict ($6.8 million) and unfavorable prior year development relating to the Ukraine conflict ($47.1 million).

Market and Competitive Landscape:

• The company operates in a transitioning market with ongoing geopolitical tensions.
• Growth was driven by the ability to find attractive opportunities contributing to the bottom line.
• No specific market share data or competitor analysis was included in the release.

Risks and Challenges:

• The release cites a "Special Note Regarding Forward-Looking Statements" detailing risks including unpredictable natural catastrophes, man-made disasters, and global climate change.
• Risks include challenges from competitors, industry consolidation, and technological advancements such as AI.
• Specific loss drivers mentioned include the Middle East conflict, the Ukraine conflict, and the Baltimore Bridge collapse.
• Risks also include the inability to control asset allocation or performance of the Two Sigma Hamilton Fund and potential conflicts of interest with Two Sigma Investments.
• The company faces risks related to reserve adequacy, cybersecurity threats, and adverse macroeconomic conditions.

Management Commentary and Tone:

• Pina Albo, CEO, described the results as "exceptional," highlighting an operating income of $180 million and an annualized operating return on average equity of 25%.
• Management emphasized the benefits of the company's diversified platform and the team's ability to navigate dynamic market conditions.
• The tone reflects confidence in the company's ability to find attractive opportunities despite market transitions.

Other Key Points:

• The Board of Directors declared a special dividend of $2.00 per share ($205.8 million total), paid on March 30, 2026.
• The company repurchased $3.1 million of common shares in the third quarter of 2026 and $44.9 million in total for the year.
• Net favorable attritional prior year reserve development was $27.2 million for the quarter, primarily driven by favorable development in certain specialty classes.
• Total cash and invested assets were $6.4 billion as of September 30, 2026, compared to $5.9 billion at December 31, 2025.
• The company hosts a conference call on October 30, 2026, at 9:30 a.m. Eastern Time.
• The company operates through three underwriting platforms: Hamilton Global Specialty, Hamilton Select, and Hamilton Re.