Hamilton combined ratio worsens to 111.6% in Q1 on $142.8 million net wildfires loss

By Michael Loney

May 7 - (The Insurer) - Hamilton Insurance Group has reported a wildfires-driven 20.1 point deterioration in its combined ratio in the first quarter to 111.6%, while gross premiums written increased 16.8% to $843.3 million.

Bermuda-based Hamilton reported net income of $80.9 million in the quarter, down from $157.2 million in the first quarter of 2024.

Operating income of $49.4 million was down from $175.2 million in the prior-year period. The operating income per share of $0.47 was down from $1.53 in Q1 2024 but was higher than the $0.06 consensus estimate of seven analysts as per MarketWatch.

The underwriting loss of $58.3 million compared with underwriting income of $32.5 million in the first quarter of 2024.

The combined ratio deteriorated 20.1 points to 111.6%, from 91.5% in the prior-year period.

This year’s first quarter included California wildfires losses of $142.8 million, net of reinsurance and $16.9 million of reinstatement premiums.

The current year catastrophe loss ratio was 32.0% in Q1 2024, while the prior-year cat loss ratio provided a 1.8 point benefit as the result of $9.2 million favorable development, with both metrics being 0% in Q1 2024.

The current year net attritional loss ratio was 51.9%, an improvement of 5.3 points primarily driven by the absence of large losses in the current quarter compared to the same period in 2024, which was affected by the Francis Scott Key Baltimore Bridge collapse.

Net favorable attritional prior-year reserve development, net of reinsurance, was $14.5 million, primarily driven by favorable development in specialty and property classes.

Gross premiums written increased 16.8% in the first quarter to $843.3 million, compared to the $721.9 million in the first quarter of 2024. This included a 15.3% increase in the international segment to $370.0 million and 18.0% increase in the Bermuda segment to $473.3 million.

Pina Albo, CEO of Hamilton, described the quarter as a “strong start” to 2025 despite industry insured catastrophe losses well above the historical average.

She added that “investment results were significant,” with a total investment return of $167 million.