HG Shareholder/Stockholder Letter Transcript:
Annual
Report
2 02 3
2023 FINANCIAL
HIGHLIGHTS
$2.0B
Gross Premiums
Written
$4.0B
Invested Assets
and Cash
$130M
Underwriting
Income
$2.0B
Shareholders
Equity
90.1%
Combined
Ratio
A-/A*
Financial Strength
Ratings
550+
Employees
$259M Net Income
* Ratings of Hamilton Re, Ltd. AM Best FSR of A-; KBRA FSR of A.
A Scaled Global Operation Managing Across Market Cycles
Our business is diversified by (re)insurance, main classes of business, and segment
GPW:
$2.0B
INSURANCE / REINSURANCE
GPW:
$2.0B
GPW:
$2.0B
CLASS OF BUSINESS
BUSINESS SEGMENTS
57% Insurance
46% Casualty
57% International
43% Reinsurance
31% Specialty
43% Bermuda
23% Property
02
HAM I LTON I NSURANCE GROUP, LTD.
2023 A NNUA L REP ORT
I am both pleased
and proud to be
writing this message
in Hamilton Insurance
Group, Ltd. s first
annual report.
LETTER TO
SHAREHOLDERS
The year ended December 31, 2023 was
truly remarkable for the Company on many
levels. In addition to working tirelessly to
complete Hamilton s Initial Public Offering
(IPO), our talented team demonstrated
our ability to deliver record results while
growing our business at the right time and
in the right lines. Taken together, Hamilton s
accomplishments in 2023 exemplify the
business transformation expertly executed
by our colleagues around the globe
as we marked our 10th year in operation
a hallmark we continue to celebrate
into 2024.
The pages that follow highlight our
achievements over the past 12 months
and offer insight into our ongoing
accomplishments. I invite you to take this
opportunity to get to know Hamilton.
03
HAM I LTON I NSURANCE GROUP, LTD.
2023 A NNUA L REP ORT
LETTER TO SHAREHOLDERS
Our corporate structure
Given that this is Hamilton s first annual
Our hybrid business model has played
report, it is worth spending some time
a critical role in our success. It has allowed
summarizing the Company s structure
us to nimbly deploy capital across insurance
and our journey thus far.
and reinsurance, grow the most attractive
business, and deftly manage market cycles
Hamilton is a global specialty insurance and
and continues to do so.
reinsurance company founded in Bermuda
in 2013. We report our business under two
More detailed information about Hamilton s
segments International (which houses two
underwriting platforms and business
of our underwriting platforms, Hamilton
segments can be found on our website at
Global Specialty and Hamilton Select)
www.hamiltongroup.com
and Bermuda (which houses our third
underwriting platform, Hamilton Re):
Hamilton Global Specialty comprises
our Lloyd s Syndicate 4000 and
subsidiaries based in the United
Kingdom, Ireland and the United States.
A BALANCED
INVESTMENT APPROACH
Hamilton Global Specialty focuses
Hamilton s strong, sustainable
predominantly on commercial specialty
underwriting operations are
and casualty insurance products for
complemented by a differentiated
medium- to large-sized accounts,
as well as specialty reinsurance for a
variety of global insurance companies.
Hamilton Select is our more recently
launched US domestic Excess & Surplus
(E&S) lines carrier. It writes casualty
insurance for small- to mid-sized
commercial clients in the hard-toplace niche of the US E&S market.
investment portfolio which is
balanced between:
our investment grade fixed
income portfolio
the Two Sigma Hamilton Fund,
LLC (TSHF) managed by Two Sigma
Investments, LP. with whom we have
a unique partnership
These two funds work very well together
as they are highly liquid and welldiversified; they also preserve capital while
providing attractive risk-adjusted returns.
Hamilton Re comprises our Class
IV (re)insurer in Bermuda, as well
as Hamilton Re US. In Bermuda, we
write property, casualty and specialty
reinsurance business on a global basis,
in addition to high excess Bermuda
market specialty insurance products,
Currently, 57% of the portfolio is in fixed
income and 43% is in the TSHF, which
has delivered very strong returns since
inception. We expect the percentage
allocated to fixed income to continue
to grow in the coming years.
For 2023, Hamiton s net investment
income of $218 million was comprised of
predominantly for large US-based
TSHF s return of $122 million and a return
commercial clients. Hamilton Re US
of $96 million for fixed income, short term,
writes casualty and specialty reinsurance
cash, and cash equivalents.
business for select US-based clients.
04
HAM I LTON I NSURANCE GROUP, LTD.
2023 A NNUA L REP ORT
LETTER TO SHAREHOLDERS
A remarkable transformation
Over the past several years, Hamilton
This transformation demanded a great deal
has undergone a strategic business
of hard work from many people, but it was
transformation that led to the organization
worth it. It not only made us the profitable,
we are today. Beginning in 2018 and guided
nimble and scalable platform we are today,
by a deeply experienced management
but also culminated in the Company s IPO:
team, Hamilton clearly articulated its
On November 10, 2023, common shares
strategy and established a fresh set of
in Hamilton began trading on the New York
business priorities focused on key facets
Stock Exchange under the ticker symbol
of the Company s operations. These
HG. I am tremendously proud of these
included enhancing corporate and
accomplishments and equally proud
underwriting governance; enforcing a
to see how swiftly and thoughtfully
culture of rigorous underwriting discipline;
Hamilton employees put the net proceeds
strategically growing the business, both
of the offering (approximately $80 million)
organically and inorganically (through the
to work in this favorable market environment
2019 acquisition of Pembroke Managing
to advance our strategic goals. I would like
Agency); re-underwriting and diversifying
to extend my gratitude to the extremely
our portfolio; and reducing volatility. All this
talented and dedicated team who worked
was accomplished while managing legacy
together to help Hamilton go public and
exposures, lowering our expense ratio,
post our strong 2023 financial results.
investing in business-enabling technology,
and attracting and retaining strong
underwriting and operational talent.
05
HAM I LTON I NSURANCE GROUP, LTD.
2023 A NNUA L REP ORT
4/25/2024 Letter Continued (Full PDF)