Hamilton Insurance's Q1 2025: Contradictions in Casualty Trends, Underwriting Discipline, and Expense Ratios

Casualty loss trend assumptions, casualty underwriting discipline, and expense ratio improvement are the key contradictions discussed in Hamilton Insurance's latest 2025Q1 earnings call.



Strong Financial Performance:
- Hamilton Insurance Group reported a net income of $81 million for Q1 2025, resulting in an annualized return on average equity of 13.7%.
- The growth was driven by a 17% increase in gross premiums written and significant investment results, despite facing global insured catastrophe losses over $55 billion.

Casualty Line Expansion:
- The company wrote $473 million in gross premiums in the Bermuda segment, an 18% increase over last year, primarily driven by casualty and property classes.
- This growth was supported by favorable market conditions, an A.M. Best rating upgrade, and targeted business development with key clients.

International Segment Growth:
- The International segment reported a 15% increase in gross premiums to $370 million.
- Growth was driven by the healthy flow of U.S. E&S business and expertise in property and specialty classes.

Impact of Tariffs and Recession Concerns:
- Hamilton acknowledged potential loss cost inflation and broader trading environment impacts due to announced tariffs and recession risks.
- The company remains resilient with a strong balance sheet and is positioned to navigate risks in its attractive trading environment.