Hamilton Insurance's Q2 2025: Key Contradictions in Casualty Growth, Property Pricing, and Reserves

Casualty growth and strategy, property insurance pricing and strategy, international underlying loss ratio, reserve increases and loss picks, property pricing and market conditions are the key contradictions discussed in Hamilton Insurance's latest 2025Q2 earnings call.



Strong Financial Performance and Profitability:
- Hamilton Insurance Group reported net income of $187 million for Q2 2025, representing an annualized return on average equity of 30.2%.
- The company's gross premiums written increased by 18% in the quarter, with Bermuda leading the way with a 26% increase.
- The performance was driven by proactive cycle management, strategic underwriting decisions, and strong market conditions.

Investment Income and Fund Performance:
- Investment income for Q2 2025 was $149 million, up significantly from $96 million in the previous year.
- The Two Sigma Hamilton Fund produced an $87 million gain or 4.4% for the quarter, with a net return of 10.1% through the first half of 2025.
- This substantial increase in investment income was attributed to strong returns from both the Two Sigma Hamilton Fund and the fixed income portfolio.

Capital Management and Share Repurchase:
- Hamilton Insurance Group repurchased $35 million of shares in Q2 and an additional $15 million post-quarter, totaling $50 million.
- This share repurchase was part of a $150 million authorization by the board, aimed at capital management and taking advantage of undervalued share prices.
- The company plans to continue this practice, maintaining its strong capital position.

Reserve Strength and Management:
- Hamilton Insurance strengthened some casualty reserves by $18 million, mostly related to discontinued lines of business.
- The company emphasized its proactive approach to casualty reserve reviews, with increases in Bermuda due to loss trends and the Air India airline loss.
- The changes in reserves reflect the company's commitment to preserving favorable reserve development and managing risk effectively.