Hamilton Insurance Group — Second Quarter 2026 Earnings Summary

Financial Performance

• Net income for the quarter ended June 30, 2026, was $143.8 million ($1.42 per diluted share), compared to $187.4 million ($1.79 per diluted share) in the same period in 2025.
• Operating income for the quarter was $158.2 million ($1.56 per diluted share), compared to $161.8 million ($1.55 per diluted share) in the prior year period.
• Annualized return on average equity was 20.6% for the quarter, down from 30.2% in the prior year period; annualized operating return on average equity was 22.7%, down from 26.1%.
• Gross premiums written increased 16.7% year-over-year to $831.0 million; net premiums written increased 11.8% to $621.7 million; net premiums earned increased 14.6% to $586.0 million.
• The combined ratio for the quarter was 95.0%, an increase of 8.2 percentage points from 86.8% in the prior year period.
• Underwriting income was $29.1 million, compared to $67.5 million in the prior year period.
• Net investment income was $141.3 million, comprised of $115.5 million from the Two Sigma Hamilton Fund and $25.8 million from fixed income, short-term, and cash equivalents.
• Total shareholders' equity was $2.9 billion as of June 30, 2026, compared to $2.8 billion at December 31, 2025.
• Book value per share was $28.91, an increase of 1.4% from $28.50 at December 31, 2025.
• Total cash and invested assets were $6.1 billion as of June 30, 2026, compared to $5.9 billion at December 31, 2025.
• Year-to-date net income was $277.3 million ($2.73 per diluted share), compared to $268.3 million ($2.56 per diluted share) in the prior year period.
• Year-to-date combined ratio was 92.5%, an improvement of 6.6 percentage points from 99.1% in the prior year period.

Guidance and Future Outlook

• No specific forward-looking numerical guidance or future growth targets were provided in the press release.
• Management stated a continued focus on margin quality, thoughtful risk selection, and long-term value creation.
• The CEO highlighted the market requires and rewards strong broker and client relationships and disciplined underwriting.

Business Segments and Product Lines

• International Segment: Gross premiums written increased 21.8% to $420.1 million; combined ratio was 97.0% (up 7.7 points from 89.3% in the prior year). Growth was driven by new and existing business in casualty and specialty insurance classes. Catastrophe losses were $33.6 million, driven by the Middle East conflict.
• Bermuda Segment: Gross premiums written increased 11.9% to $411.0 million; combined ratio was 93.0% (up 8.7 points from 84.3% in the prior year). Growth was driven by casualty and specialty reinsurance classes, partially offset by decreases in property reinsurance and insurance classes due to rate pressure. Catastrophe losses were $16.2 million, driven by the Middle East conflict.
• Investment Performance: The Two Sigma Hamilton Fund contributed significantly to investment income, with $115.5 million in the quarter and $208.5 million year-to-date.
• Loss Ratios: The attritional loss ratio (current year) was 53.3% for the quarter, up 0.3 points, driven by a change in business mix including increased casualty reinsurance. Catastrophe loss ratio (current year) was 7.8%, up 5.9 points, primarily due to the Middle East conflict.

Market and Competitive Landscape

• The company noted pressure on rates in property reinsurance and insurance classes within the Bermuda segment.
• The market environment is described as one that rewards strong broker and client relationships and disciplined underwriting.
• Business mix changes included an increase in casualty reinsurance and specialty insurance business.

Risks and Challenges

• Catastrophe losses were significantly impacted by the Middle East conflict ($45.7 million consolidated in the quarter) and the Baltimore Bridge collapse (unfavorable prior year development).
• Unfavorable prior year reserve development occurred in certain casualty classes, partially offset by favorable development in specialty and property classes.
• The press release lists numerous risks in the "Special Note Regarding Forward-Looking Statements," including geopolitical instability, natural catastrophes, cyber threats, reserve adequacy, and competition from alternative capital and technological advancements.

Management Commentary and Tone

• CEO Pina Albo described the results as "another quarter of strong results" and expressed pride in the team's execution.
• The Board of Directors extended Pina Albo's employment term through December 31, 2029, citing confidence in her leadership and the company's long-term strategy.
• Chairman David A. Brown stated that the employment extension reflects the Board's confidence in her "exceptional leadership."

Other Key Points

• The Board declared a special dividend of $2.00 per share ($205.8 million total), paid on March 30, 2026.
• The company repurchased $22.1 million of common shares in the second quarter of 2026 and $41.8 million year-to-date.
• Book value per common share plus accumulated dividends was $30.91, an increase of 8.5% from December 31, 2025.
• A conference call to discuss results was scheduled for August 7, 2026, at 9:30 a.m. Eastern Time.
• The company operates through three underwriting platforms: Hamilton Global Specialty, Hamilton Select, and Hamilton Re.