Hamilton Insurance Group (NYSE:HG) executives highlighted record full-year results for 2025, continued premium growth, and a special dividend during the company’s fourth-quarter earnings call. Management also discussed market conditions at the January 1 renewal season, underwriting discipline amid a “transitioning” market, and several items expected to affect 2026 results, including a change in how the company defines catastrophe and headline losses.
Record 2025 results and fourth-quarter profitability
Group CEO Pina Albo said Hamilton delivered record net income of $577 million in 2025, translating to a 22% return on average equity. Gross premiums written rose 21% to a record $2.9 billion, while the company reported a 92.9% combined ratio for the year and grew tangible book value per share by 25%. Albo attributed performance to underwriting and cycle management discipline, strong broker and client relationships across the company’s hybrid insurance and reinsurance platform, and what she described as a strong capital position with low debt leverage and prudent reserves.
Underwriting performance and segment results
Howie said Hamilton generated $76 million of underwriting income in Q4, versus $22 million in the prior-year quarter. The group combined ratio improved to 87.0% from 95.4% a year earlier. The fourth-quarter loss ratio improved to 54.6%, down from 60.1%, driven by “meaningfully lower net catastrophe losses,” which Howie said were 9.0 points better than in Q4 2024. That improvement was partially offset by higher attritional losses, which rose to 56.5% from 51.2%, driven by more large losses and a change in business mix that included increased casualty reinsurance.
Hamilton also reported 3.1 points of favorable prior-year attritional development in Q4, driven by property and specialty classes, compared with 1.3 points of favorable development in the year-ago quarter. Howie added that the quarter’s expense ratio fell to 32.4% from 35.3%, primarily due to the Bermuda substance-based tax credit and third-party fee income that offset other underwriting expenses.
By segment:
- International (Hamilton Global Specialty and Hamilton Select): Q4 underwriting income was $12 million with a 96.0% combined ratio, compared with $9 million and 96.3% a year earlier. Management said the current-year attritional loss ratio was higher due to large loss activity in the quarter, while the prior-year quarter had none. Full-year 2025 International gross premiums written were $1.5 billion, up 16% from $1.3 billion, and the full-year combined ratio was 95.0% (vs. 95.6% in 2024).
- Bermuda (Hamilton Re and Hamilton Re U.S.): Q4 underwriting income was $63 million with a 76.4% combined ratio, compared with $13 million and 94.3% in Q4 2024. The expense ratio fell sharply, which Howie attributed primarily to the Bermuda substance-based tax credit (about $17 million in the segment) and increased third-party performance-based fee income. Full-year 2025 Bermuda gross premiums written were $1.4 billion, up 26% from $1.1 billion, and the full-year combined ratio was 90.9% (vs. 87.0% in 2024), reflecting a shift toward casualty reinsurance and more large losses.
In response to a question about elevated large losses in the quarter, Howie said Hamilton had more large losses than in Q4 2024, with the largest being a satellite loss that impacted both segments in specialty classes.
Premium growth and cycle management across platforms
Albo said gross premiums written increased 23% in Q4 as Hamilton focused on business where pricing and terms were “compelling” and pulled back where returns did not meet hurdles. She described this as enabled by Hamilton’s diversification across insurance and reinsurance.
On platform trends in the quarter, Albo said:
- Bermuda Segment gross premiums written grew 27%, driven by casualty reinsurance written predominantly on a quota-share basis. She also said Hamilton reduced participation on large property D&F insurance accounts due to competition and pricing.
- International gross premiums written grew 20%. Hamilton Global Specialty grew 21%, with growth cited in mergers and acquisitions and marine lines, aided by the launch of a new marine cargo offering. Hamilton Select grew 19% and focused on casualty classes in 2025, with growth in excess casualty products and contractors and small business; the company wrote less professional liability due to pricing.
During Q&A, management said Hamilton Select’s growth was in line with expectations and that competitive pressure was being felt more in professional lines. Management also said the company had made a recent hire and planned to launch a property offering within Hamilton Select focused on smaller to mid-size accounts, where it said competition was less intense than in large account property business.
Renewals, outlook, and 2026 guideposts
Discussing the January 1 renewal season, Albo said property catastrophe pricing declined amid abundant capacity and competition, particularly on higher layers, but she said discipline helped keep terms, conditions, and attachment points “largely consistent with post-reset levels.” She said Hamilton focused deployment on well-performing accounts and used “cost-effective retrocession,” benefiting from double-digit rate reductions, to help maintain margins despite headline rate declines.
On casualty reinsurance, Albo said competition was more measured and that underlying insurance rate increases continued, while ceding commissions were generally flat. She said some cedents retained more net, but Hamilton still grew modest shares with core key clients. Albo reiterated that Hamilton targets casualty clients that retain significant risk, provide good data, and invest in in-house claims handling.
Looking to 2026, Albo said the market is expected to remain competitive, but that pricing in targeted lines should remain “largely risk adequate.” She said Hamilton expects growth to be “more measured” than in the past and emphasized it would not chase premium volume at the expense of profitability.
Howie provided several 2026 items, including a change in reporting thresholds: beginning in 2026, Hamilton will increase its catastrophe and headline loss threshold from $5 million to $10 million. He said this will move more losses into attritional results and that Hamilton expects its attritional loss ratio to run around 55% in 2026. In response to a question, he said most of the change from the 54.4% 2025 attritional loss ratio to the 2026 guide reflects this definitional change, and that catastrophe losses should come down slightly but remain around 6% to 7% for the year.
Tax items, investments, and capital return
Howie detailed two tax-related items recognized in Q4. He said the Bermuda Tax Credits Act became effective December 11 and that Hamilton qualifies for a new Substance-Based Tax Credit, which he said exempts Hamilton from the Bermuda 15% global minimum tax until 2030. The program phases in at 50% in 2025, 75% in 2026, and 100% for fiscal years beginning in 2027. Hamilton recorded a $20.7 million Bermuda credit for 2025 and said it would expect about $27 million in 2026 “all things staying about the same.” Howie also said the company recorded a $28 million net tax benefit from releasing valuation allowances against deferred tax assets in the U.K. and U.S. related to prior net operating losses.
Investment income rose to $98 million in Q4 from $36 million a year earlier. Howie said the fixed income portfolio, short-term investments, and cash produced a $42 million gain in the quarter, with the fixed income portfolio returning 1.2% (or $38 million) and new money yields of 4.2%. He said portfolio duration was 3.4 years and average credit quality remained AA3. The Two Sigma Hamilton Fund generated a $56 million net return in Q4 (a 2.6% return) and returned 16.0% for full-year 2025 (or $301 million). Howie said the fund represented about 37% of total investments including cash at year-end 2025.
On capital management, Howie said the board declared a special dividend of $2 per share, totaling approximately $206 million, citing record earnings and an “excellent capital position.” The company also repurchased $93 million of shares in 2025 at an average price of $22.13, and Howie said $178 million remained under the current authorization. Asked about funding for the special dividend, Howie said it would come from “available cash on hand as well as the fixed income portfolio.”
About Hamilton Insurance Group (NYSE:HG)
Hamilton Insurance Group Ltd. is a Bermuda-based insurance and reinsurance holding company that trades on the New York Stock Exchange under the symbol HG. The company focuses on specialty lines of property and casualty insurance and reinsurance, providing tailored solutions to clients around the world. Its underwriting platform is designed to address complex and niche risks across multiple industry sectors.
Established in 2016 and completing its initial public offering in 2017, Hamilton has concentrated on building a diversified portfolio of insurance and reinsurance products.
