Hamilton Insurance Group Ltd

Previous wording

Historically, inflation has not had a material effect on the Company’s consolidated results of operations. However, global economic inflation has recently increased and there is a risk that it will remain elevated for an extended period. Inflation is subject to many macroeconomic factors beyond our control, including global banking policy, political risks, supply chain issues, and the continuing impact of the COVID-19 pandemic. An inflationary economy may result in higher losses and loss adjustment expenses, negatively impact the performance of our fixed income security investment portfolio, or increase our operating expenses, among other unfavorable effects. The ultimate effects of an inflationary or deflationary period are subject to high uncertainty and cannot be accurately estimated until the actual costs are known.

Current wording

Historically, inflation has not had a material effect on the Company’s consolidated results of operations. However, global economic inflation has recently increased and there is a risk that it will remain elevated for an extended period. Inflation is subject to many macroeconomic factors beyond our control, including global banking policy, political risks, and supply chain issues. An inflationary economy may result in higher losses and loss adjustment expenses, negatively impact the performance of our fixed income security investment portfolio, or increase our operating expenses, among other unfavorable effects. The ultimate effects of an inflationary or deflationary period are subject to high uncertainty and cannot be accurately estimated until the actual costs are known.

Previous wording

On December 27, 2023, the Bermuda Government enacted a 15% corporate income tax that will generally become effective for Bermuda domiciled entities on or after January 1, 2025. The legislation defers the effective date until January 1, 2030 for so long as the consolidated group operates in six or fewer jurisdictions, has less than €50 million in tangible assets and none of its Bermuda entities are subject to the Income Inclusion Rule in any other jurisdiction. The act is a response to the OECD Pillar 2 worldwide minimum tax that would otherwise require a top-up tax be paid on Bermuda-sourced income to non-Bermuda jurisdictions such that a 15% minimum effective tax rate is achieved for Hamilton Group’s Bermuda entities. Hamilton Group expects to be exempt from the worldwide minimum tax until January 1, 2030, pursuant to an exemption similar to that available in Bermuda. The act includes a provision referred to as the economic transition adjustment, which is intended to provide a fair and equitable transition into the tax regime, and, as a result, the Company recorded a deferred tax benefit of $35.1 million in the quarter ended December 31, 2023.

Current wording

On December 27, 2023, the Bermuda Government enacted a 15% corporate income tax that will generally become effective for Bermuda domiciled entities on or after January 1, 2025. The legislation defers the effective date until January 1, 2030 for so long as the consolidated group operates in six or fewer jurisdictions, has less than €50 million in tangible assets and none of its Bermuda entities are subject to the Income Inclusion Rule in any other jurisdiction. The act is a response to the OECD Pillar 2 worldwide minimum tax that would otherwise require a top-up tax be paid on Bermuda-sourced income to non-Bermuda jurisdictions such that a 15% minimum effective tax rate is achieved for Hamilton Group’s Bermuda entities. Hamilton Group expects to be exempt from the worldwide minimum tax until January 1, 2030, pursuant to an exemption similar to that available in Bermuda. The act includes a provision referred to as the economic transition adjustment, which is intended to provide a fair and equitable transition into the tax regime, and, as a result, the Company recorded a deferred tax benefit of $35.1 million in the year ended December 31, 2023.

Previous wording

The following is a comparison of selected data for our consolidated results of operations for the three months ended March 31, 2024 and 2023 and book value per share and balance sheet data as at March 31, 2024 and December 31, 2023.

Current wording

The following is a comparison of selected data for our consolidated results of operations for the three months ended June 30, 2024 and 2023.

Previous wording

(2) Other underwriting expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $11.5 million, and $6.7 million for the three months ended March 31, 2024 and 2023, respectively. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Measures' for further details.

Current wording

(2) Other underwriting expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $16.3 million, and $6.5 million for the three months ended June 30, 2024 and 2023, respectively. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Measures' for further details.

Previous wording

Underwriting results The combined ratio was 91.5% and 87.9% for the three months ended March 31, 2024 and 2023, respectively. The increase was primarily driven by an increase in the attritional loss ratio, partially offset by decreases in both the other underwriting expense ratio and acquisition cost ratio.

Current wording

Underwriting results The combined ratio was 84.4% and 89.5% for the three months ended June 30, 2024 and 2023, respectively. The decrease was primarily driven by a decrease in the catastrophe loss ratio, other underwriting expense ratio, and acquisition cost ratio, partially offset by an increase in the attritional loss ratio.

Previous wording

Net investment income, net of non-controlling interest - TSHF, returned income of $142.7 million and $8.6 million for the three months ended March 31, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees and performance incentive allocations. The aggregate incentive allocation to which the investment manager is entitled is included in "Net income attributable to non-controlling interests" in our GAAP financial statements.

Current wording

Net investment income, net of non-controlling interest - TSHF, returned income of $75.9 million and $25.5 million for the three months ended June 30, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees and performance incentive allocations. The aggregate incentive allocation to which the investment manager is entitled is included in "Net income attributable to non-controlling interests" in our GAAP financial statements.

Previous wording

For the three months ended March 31, 2024, gains in TS Hamilton Fund were led by macroeconomic trading in Two Sigma Futures Portfolio, LLC (“FTV”). Within FTV, equities, commodities, fixed income, currencies, and credit all made positive contributions to returns, in decreasing order. TS Hamilton Fund also received positive contributions from single name equities trading. In single name equities trading, gains were led by U.S. equities within Two Sigma Spectrum Portfolio, LLC ("STV"), followed by non-U.S. equities within Two Sigma Equity Spectrum Portfolio, LLC (“ESTV”). Within ESTV, East Asia, Europe, Pan-America, and China all made positive contributions to returns, in decreasing order.

Current wording

For the three months ended June 30, 2024, gains in TSHF were led by single name equities trading within Two Sigma Spectrum Portfolio, LLC ("STV") and Two Sigma Equity Spectrum Portfolio, LLC (“ESTV”). In single name equities trading, gains were led by U.S. equities within STV, followed by non-U.S. equities within ESTV. Within ESTV, East Asia, China, Europe and Pan-America all made positive contributions to gains. Macroeconomic trading in Two Sigma Futures Portfolio, LLC (“FTV”) also positively contributed to gains in TSHF. Within FTV, equities and currencies made positive contributions to gains, while losses were experienced in commodities, fixed income and credit.

Previous wording

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other, returned income of $5.2 million and $27.4 million for the three months ended March 31, 2024 and 2023, respectively. Income for the three months ended March 31, 2024 was primarily driven by investment income on higher yielding assets, largely offset by negative price returns as a result of rising U.S. treasury interest rates in the first quarter of 2024. Income for the three months ended March 31, 2023 was primarily driven by holding higher yielding assets during 2023 as a result of portfolio reinvestments during the 2022 rising interest rate environment, combined with falling U.S. treasury interest rates in the first quarter of 2023.

Current wording

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other, returned income of $19.8 million and a loss of $3.3 million for the three months ended June 30, 2024 and 2023, respectively. Income for the three months ended June 30, 2024 was primarily driven by investment income on higher yielding assets, partially offset by negative price returns as a result of rising U.S. treasury interest rates in the second quarter of 2024. Losses for the three months ended June 30, 2023 were primarily driven by negative price returns as a result of rising U.S. treasury interest rates, partially offset by investment income on higher yielding assets.

Previous wording

Third party fee income increased by $0.7 million, or 23.6%, from $2.9 million for the three months ended March 31, 2023 to $3.6 million for the three months ended March 31, 2024. The increase was due to more favorable terms of renewed syndicate management fees, partially offset by a decrease in consortium fees.

Current wording

Third party fee income increased by $1.4 million, or 58.2%, from $2.4 million for the three months ended June 30, 2023 to $3.8 million for the three months ended June 30, 2024. The increase was primarily due to more favorable terms of a renewed syndicate management arrangement and an increase in consortium fees.

Previous wording

Attritional loss ratio - prior year for the three months ended March 31, 2024 was an unfavorable 2.9% compared to a favorable 4.2% for the three months ended March 31, 2023, an increase of 7.1 percentage points. The unfavorable prior year development for the current quarter is primarily driven by unfavorable development on two large losses in our specialty insurance class, partially offset by various smaller reserve releases across classes as a result of reduced loss estimates and benign claims experience. In addition, casualty business protected by the loss portfolio transfer ("LPT") discussed in Note 6, Reinsurance benefited from $0.9 million in amortization of the associated deferred gain partially offset by unfavorable development in the underlying reserves of $0.1 million, for a total net positive earnings impact of $0.8 million.

Current wording

Attritional loss ratio - prior year for the three months ended June 30, 2024 was a favorable 0.2% compared to a favorable 3.3% for the three months ended June 30, 2023, an increase of 3.1 percentage points. The favorable attritional loss ratio - prior year was primarily driven by modest favorable development in property insurance and reinsurance classes, partially offset by unfavorable development in specialty classes. In addition, casualty business protected by the loss portfolio transfer ("LPT") discussed in Note 6, Reinsurance benefited from $1.0 million in amortization of the associated deferred gain, partially offset by unfavorable development in the underlying reserves of $0.2 million, for a total net positive earnings impact of $0.8 million.

Previous wording

Catastrophe losses - current year and prior yearfor the three months ended March 31, 2024 included $Nil current year losses and $0.2 million of prior year development. Catastrophe losses - current year and prior year of $2.1 million for the three months ended March 31, 2023 were primarily driven by unfavorable prior year development of $2.1 million.

Current wording

Catastrophe losses - current year and prior yearfor the three months ended June 30, 2024 included $Nil current year losses and an insignificant movement on prior year. Catastrophe losses - current year and prior year of less than $0.1 million for the three months ended June 30, 2023 were primarily driven by the severe convective storms in June 2023 ($1.5 million) offset by favorable prior year development of $1.5 million.

Previous wording

Other underwriting expenses were $31.2 million for the three months ended March 31, 2024, an increase of $2.7 million, or 9.6%, compared to $28.5 million for the three months ended March 31, 2023. The increase was primarily driven by increased headcount as we built out underwriting teams supporting the corresponding increase in premium volume, and professional fees.

Current wording

Other underwriting expenses for the three months ended June 30, 2024 were $34.0 million, an increase of $4.4 million, or 15.0%, compared to $29.5 million for the three months ended June 30, 2023. The increase was primarily driven by increased headcount as we built out underwriting teams supporting the corresponding increase in premium volume.

Previous wording

The other underwriting expense ratio for the three months ended March 31, 2024 and 2023 decreased over the same period from 17.1% to 14.0%, as a result of the growth in the premium base.

Current wording

The other underwriting expense ratio for the three months ended June 30, 2024 and 2023 decreased from 15.4% to 14.0%, as a result of the growth in the premium base.

Previous wording

For the three months ended March 31, 2024, the Bermuda segment's net premiums earned increased by $54.1 million, or 40.3%, from $134.4 million for the three months ended March 31, 2023 to $188.5 million for the three months ended March 31, 2024. The increase was primarily driven by new business, volume growth and rate increases in casualty and property reinsurance. The most significant drivers of the increase were general liability, professional lines and property treaty classes.

Current wording

For the three months ended June 30, 2024, the Bermuda segment's net premiums earned increased by $48.3 million, or 31.2%, from $154.8 million for the three months ended June 30, 2023 to $203.1 million for the three months ended June 30, 2024. The increase was primarily driven by new business, volume growth and rate increases in casualty and property reinsurance. The most significant drivers of the increase were general liability, professional lines and property treaty classes.

Previous wording

Third party fee income increased by $3.8 million, from $0.1 million for the three months ended March 31, 2023 to $3.9 million for the three months ended March 31, 2024. The increase was primarily driven by certain performance based management fees recognized by Ada Capital Management Limited for services provided to Ada Re, Ltd.

Current wording

Third party fee income increased by $2.1 million, from less than $0.1 million for the three months ended June 30, 2023 to $2.2 million for the three months ended June 30, 2024. The increase was primarily driven by certain performance based management fees recognized by Ada Capital Management Limited for services provided to Ada Re, Ltd.

Previous wording

Catastrophe losses - current year and prior yearfor the three months ended March 31, 2024 included $Nil current year losses and an insignificant movement on prior year. Catastrophe losses - current year and prior year of $5.4 million for the three months ended March 31, 2023 were primarily driven by wind and thunderstorm events which impacted states in both the Southern and Midwest U.S. during March 2023 ($5.3 million) and unfavorable prior year development of $0.1 million.

Current wording

Catastrophe losses - current year and prior yearfor the three months ended June 30, 2024 included $Nil current year losses and an insignificant movement on prior year. Catastrophe losses - current year and prior year of $15.7 million for the three months ended June 30, 2023 were primarily driven by severe convective storms in June 2023 ($13.1 million), wind and thunderstorm events which impacted states in both the Southern and Midwest U.S. during March 2023 ($2.1 million), in addition to unfavorable prior year development of $0.5 million.

Previous wording

The acquisition cost ratio for the three months ended March 31, 2024 decreased to 19.5%, compared to 20.8% for the three months ended March 31, 2023, reflecting the change in the mix of business and the impact of profit commissions on the prior period.

Current wording

The acquisition cost ratio for the three months ended June 30, 2024 increased to 21.2%, compared to 19.1% for the three months ended June 30, 2023, reflecting the change in the mix of business, including more proportional business written in our casualty reinsurance classes.

Previous wording

For the three months ended March 31, 2024, other underwriting expenses increased by $1.5 million or 13.8%, from $10.7 million for the three months ended March 31, 2023 to $12.2 million for the three months ended March 31, 2024. The increase was primarily driven by an increase in salary and compensation costs and professional fees.

Current wording

For the three months ended June 30, 2024, other underwriting expenses increased by $1.5 million or 11.2%, from $13.2 million for the three months ended June 30, 2023 to $14.7 million for the three months ended June 30, 2024. The increase was primarily driven by an increase in salary and compensation costs and professional fees.

Previous wording

Net investment income, net of non-controlling interest - TSHF, returned income of $142.7 million and $8.6 million for the three months ended March 31, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees and performance incentive allocations. The aggregate incentive allocation to which the investment manager is entitled is included in "Net income attributable to non-controlling interests" in our GAAP financial statements.

Current wording

Net investment income, net of non-controlling interest - TSHF, returned income of $75.9 million and $25.5 million for the three months ended June 30, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees and performance incentive allocations. The aggregate incentive allocation to which the investment manager is entitled is included in "Net income attributable to non-controlling interests" in our GAAP financial statements.

Previous wording

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other, returned income of $5.2 million and $27.4 million for the three months ended March 31, 2024 and 2023, respectively. Income for the three months ended March 31, 2024 was primarily driven by investment income on higher yielding assets, largely offset by negative price returns as a result of rising U.S. treasury interest rates in the first quarter of 2024. Income for the three months ended March 31, 2023 was primarily driven by holding higher yielding assets during 2023 as a result of portfolio reinvestments during the 2022 rising interest rate environment, combined with falling U.S. treasury interest rates in the first quarter of 2023.

Current wording

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other, returned income of $19.8 million and a loss of $3.3 million for the three months ended June 30, 2024 and 2023, respectively. Income for the three months ended June 30, 2024 was primarily driven by investment income on higher yielding assets, partially offset by negative price returns as a result of rising U.S. treasury interest rates in the second quarter of 2024. Losses for the three months ended June 30, 2023 were primarily driven by negative price returns as a result of rising U.S. treasury interest rates, partially offset by investment income on higher yielding assets.

Previous wording

Foreign exchange losses of $2.1 million and $2.0 million for the three months ended March 31, 2024 and 2023, respectively, primarily related to the remeasurement of insurance-related assets and liabilities denominated in Euro, Japanese Yen, Australian and Canadian Dollars and British Pounds.

Current wording

Foreign exchange losses of $1.8 million and $3.3 million for the three months ended June 30, 2024 and 2023, respectively, primarily related to the remeasurement of insurance-related assets and liabilities denominated in British Pounds, Euro, Japanese Yen, and Australian and Canadian Dollars.

Previous wording

Corporate expenses for the three months ended March 31, 2024 were $11.5 million, compared to $6.7 million for the three months ended March 31, 2023, an increase of $4.8 million. The increase was primarily driven by $3.7 million of Value Appreciation Pool ("VAP") expense, an increased headcount, and certain variable performance based compensation costs, as well as an increase in professional fees associated with operating as a public company.

Current wording

Corporate expenses for the three months ended June 30, 2024 were $16.3 million, compared to $6.5 million for the three months ended June 30, 2023, an increase of $9.8 million. The increase was primarily driven by $2.5 million of Value Appreciation Pool ("VAP") expense, certain variable performance based compensation costs, an increased headcount and an increase in professional fees associated with operating as a public company.

Previous wording

Amortization of intangible assets of $3.3 million and $2.8 million for the three months ended March 31, 2024 and 2023, respectively, relates to internally developed software and intangible assets acquired in a business combination. Amortization expense increased due to the incremental expense associated with additional technology projects.

Current wording

Amortization of intangible assets of $3.3 million and $2.3 million for the three months ended June 30, 2024 and 2023, respectively, relates to internally developed software and intangible assets acquired in a business combination. Amortization expense increased due to the incremental expense associated with additional technology projects.

Previous wording

Interest expense of $5.7 million and $5.5 million for the three months ended March 31, 2024 and 2023, respectively, relates to interest payments and certain administrative fees associated with our term loan and letter of credit facilities. The modest increase in interest expense is primarily driven by the increase in the Secured Overnight Financing Rate ("SOFR"), which underlies the floating rate associated with the term loan.

Current wording

Interest expense of $6.0 million and $5.2 million for the three months ended June 30, 2024 and 2023, respectively, relates to interest payments and certain administrative fees associated with our term loan and letter of credit facilities. The increase in interest expense is primarily driven by the increase in the Secured Overnight Financing Rate ("SOFR"), which underlies the floating rate associated with the term loan.

Previous wording

Income tax expense (benefit) for the three months ended March 31, 2024 was an expense of $0.6 million, compared to an expense of $1.6 million for the three months ended March 31, 2023, a decrease of $1.0 million. The current year tax expense is primarily driven by withholding taxes on investment income from TS Hamilton Fund, partially offset by various smaller tax adjustments across the group. The prior year tax expense in our Bermuda segment was primarily driven by withholding taxes on investment income from TS Hamilton Fund.

Current wording

Income tax expense for the three months ended June 30, 2024 was an expense of $2.5 million, compared to an expense of $2.9 million for the three months ended June 30, 2023, a decrease of $0.5 million. Tax expense for both the three months ended June 30, 2024 and 2023 is primarily driven by withholding taxes on investment income from TS Hamilton Fund.

Previous wording

Gross premiums written Gross premiums written were $721.9 million and $538.2 million for the three months ended March 31, 2024 and 2023, respectively. The increase in gross premiums written was primarily driven by our property reinsurance, specialty reinsurance and casualty insurance and reinsurance business. The growth was a result of new business, increased participation on existing business and a strong rate environment across multiple classes of business.

Current wording

Gross premiums written Gross premiums written were $1.3 billion and $1.0 billion for the six months ended June 30, 2024 and 2023, respectively. The increase in gross premiums written was primarily driven by our property reinsurance, specialty reinsurance and casualty insurance and reinsurance business. The growth was a result of new business, increased participations on existing business and a strong rate environment across multiple classes of business.

Previous wording

Attritional loss ratio - current year for the three months ended March 31, 2024 was 57.2% compared to 49.1% for the three months ended March 31, 2023, an increase of 8.1 percentage points. The increase is primarily driven by losses of $37.9 million arising from the Francis Scott Key Baltimore Bridge collapse, which impacted our insurance and reinsurance classes in both our International and Bermuda segments.

Current wording

Attritional loss ratio - current year for the six months ended June 30, 2024 was 54.3% compared to 50.1% for the six months ended June 30, 2023, an increase of 4.2 percentage points. The increase is primarily driven by losses of $37.9 million arising from the Francis Scott Key Baltimore Bridge collapse, which impacted our insurance and reinsurance classes in both our International and Bermuda segments.

Previous wording

Attritional loss ratio - prior year for the three months ended March 31, 2024 was an unfavorable 3.1% compared to an unfavorable 0.6% for the three months ended March 31, 2023, an increase of 2.5 percentage points. The attritional loss ratio - prior year for the three months ended March 31, 2024 was driven by unfavorable development in specialty classes in both our International and Bermuda segments, primarily related to two specific large losses, partially offset by various smaller reserve releases across classes as a result of reduced loss estimates and benign claims experience. In addition, casualty business protected by the loss portfolio transfer ("LPT"), discussed in Note 6, Reinsurance, benefited from $0.9 million in amortization of the associated deferred gain partially offset by unfavorable development in the underlying reserves of $0.1 million, for a total net positive earnings impact of $0.8 million. The attritional loss ratio - prior year for the three months ended March 31, 2023 was primarily driven by unfavorable prior year development in property classes in the Bermuda segment, partially offset by favorable development in our International and Bermuda specialty classes.

Current wording

Attritional loss ratio - prior year for the six months ended June 30, 2024 was an unfavorable 1.3% compared to favorable 0.6% for the six months ended June 30, 2023, an increase of 1.9 percentage points. The unfavorable attritional loss ratio - prior year for the six months ended June 30, 2024 was primarily driven by unfavorable development in specialty classes in both our International and Bermuda segments, primarily related to two specific large losses, partially offset by favorable development in our International property insurance and reinsurance classes. In addition, casualty business protected by the LPT benefited from $1.9 million in amortization of the associated deferred gain, partially offset by unfavorable development in the underlying reserves of $0.3 million, for a total net positive earnings impact of $1.6 million. The attritional loss ratio - prior year for the six months ended June 30, 2023 was primarily driven by favorable prior year development in specialty classes in the Bermuda segment and property classes in the International segment, partially offset by unfavorable development in our Bermuda property and casualty classes.

Previous wording

Net premiums earned increased by $47.3 million, or 31.6%, from $149.5 million for the three months ended March 31, 2023 to $196.8 million for the three months ended March 31, 2024, reflecting growth across property, casualty and specialty insurance classes, primarily driven by growth in property insurance binders and D&F, casualty insurance professional lines and excess casualty, and by political violence, fine art & specie and marine & energy in specialty insurance classes. Specialty reinsurance growth was primarily driven by growth in surety and treaty lines, respectively.

Current wording

For the six months ended June 30, 2024, net premiums earned increased by $86.3 million, or 26.5%, from $326.2 million for the six months ended June 30, 2023 to $412.5 million for the six months ended June 30, 2024. The increase was primarily driven by growth in our specialty insurance classes, in addition to growth in property and casualty insurance classes and specialty reinsurance. Specialty insurance growth was driven by accident & health, fine art & specie, political violence and marine & energy; property insurance growth was driven by property binders and D&F; casualty insurance growth was primarily driven by U.S. excess and surplus lines, professional lines and excess casualty; and specialty reinsurance growth was primarily attributable to treaty reinsurance and surety reinsurance.

Previous wording

The loss ratio for the three months ended March 31, 2024 was 59.0%, compared to 47.1% for the three months ended March 31, 2023, an increase of 11.9 percentage points. The increase was driven by higher current year attritional losses and unfavorable prior year attritional loss development for the three months ended March 31, 2024, compared to favorable prior year attritional loss development for the three months ended March 31, 2023.

Current wording

The loss ratio for the six months ended June 30, 2024 was 55.5%, compared to 48.4% for the six months ended June 30, 2023, an increase of 7.1 percentage points. The increase was driven by higher current year attritional losses and unfavorable prior year attritional loss development for the six months ended June 30, 2024, partially offset by a lower level of catastrophe losses for the six months ended June 30, 2024.

Previous wording

Attritional loss ratio - current year for the three months ended March 31, 2024 was 56.0% compared to 49.9% for the three months ended March 31, 2023, an increase of 6.1 percentage points. The increase in the current year attritional loss ratio was primarily driven by $11.8 million of losses arising from the Baltimore Bridge collapse, which impacted our insurance and reinsurance classes, with no comparable large losses for three months ended March 31, 2023.

Current wording

Attritional loss ratio - current year for the six months ended June 30, 2024 was 54.2% compared to 51.6% for the six months ended June 30, 2023, an increase of 2.6 percentage points. The increase in the current year attritional loss ratio was primarily driven by $11.8 million of losses arising from the Baltimore Bridge collapse, which impacted our insurance and reinsurance classes, with no comparable large losses for the six months ended June 30, 2023.

Previous wording

Attritional loss ratio - current year for the three months ended March 31, 2024 was 58.4% compared to 48.1% for the three months ended March 31, 2023, an increase of 10.3 percentage points. The increase in the current year attritional loss ratio was primarily driven by $26.1 million of losses arising from the Baltimore Bridge collapse, which impacted our insurance and reinsurance classes, with no comparable losses for three months ended March 31, 2023.

Current wording

Attritional loss ratio - current year for the six months ended June 30, 2024 was 54.3% compared to 48.5% for the six months ended June 30, 2023, an increase of 5.8 percentage points. The increase in the current year attritional loss ratio was primarily driven by $26.1 million of losses arising from the Baltimore Bridge collapse, which impacted our insurance and reinsurance classes, with no comparable losses for six months ended June 30, 2023.

Previous wording

Attritional loss ratio - prior year for the three months ended March 31, 2024 was an unfavorable 3.2%, compared to an unfavorable 6.1% for the three months ended March 31, 2023, a decrease of 2.9 percentage points. The unfavorable attritional loss ratio - prior year is primarily driven by unfavorable development in specialty reinsurance classes relating to one specific large loss.

Current wording

Attritional loss ratio - prior year for the six months ended June 30, 2024 was an unfavorable 1.3% compared to an unfavorable 3.0% for the six months ended June 30, 2023, a decrease of 1.7 percentage points. The unfavorable attritional loss ratio - prior year was primarily driven by modest unfavorable development across a variety of casualty reinsurance classes and unfavorable development in specialty reinsurance classes relating to one specific large loss.

Previous wording

The other underwriting expense ratios for the three months ended March 31, 2024 and 2023 decreased over the same period at 4.4% and 7.9%, respectively, as a result of the growth in premium base and certain performance based management fees recognized by Ada Capital Management Limited in the current quarter for services provided to Ada Re, Ltd.

Current wording

The other underwriting expense ratios for the six months ended June 30, 2024 and 2023 decreased over the same period to 5.3% from 8.2%, as a result of the growth in premium base and certain performance based management fees recognized by Ada Capital Management Limited in the current period for services provided to Ada Re, Ltd.

Previous wording

Book value per common share was $19.90 at March 31, 2024, a $1.32 or 7.1% increase from the Company’s book value per common share of $18.58 at December 31, 2023. The increase was primarily driven by the Company’s net income attributable to common shareholders.

Current wording

Book value per common share was $21.96 at June 30, 2024, a $3.38 or 18.2% increase from the Company’s book value per common share of$18.58 at December 31, 2023. The increase was primarily driven by both the Company’s net income attributable to common shareholders of $288.3 million and the accretive impact of the Share Repurchase (see Note 10, Share Capital in the accompanying unaudited condensed financial statements for further details).

Previous wording

Tangible book value per common share was $19.07 at March 31, 2024, a $1.32 or 7.4% increase from the Company’s tangible book value per common share of $17.75 at December 31, 2023. The increase was primarily driven by the Company’s net income attributable to common shareholders.

Current wording

Tangible book value per common share was $21.04 at June 30, 2024, a $3.29 or 18.5% increase from the Company’s tangible book value per common share of$17.75 at December 31, 2023. The increase was primarily driven by the Company’s net income attributable to common shareholders of $288.3 million and the accretive impact of the Share Repurchase (see Note 10, Share Capital in the accompanying unaudited condensed financial statements for further details).

Previous wording

ROACE was 7.4% for the three months ended March 31, 2024 compared to 3.0% for the three months ended March 31, 2023. The increase was primarily driven by the higher net income attributable to common shareholders for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Current wording

ROACE was 5.9% for the three months ended June 30, 2024 compared to 2.1% for the three months ended June 30, 2023. The increase was primarily driven by the higher net income attributable to common shareholders for the three months ended June 30, 2024 compared to the three months ended June 30, 2023.

Previous wording

We present our results of operations in a way that we believe will be the most meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate its performance. Some of the measurements are considered non-GAAP financial measures under SEC rules and regulations. In this Form 10-Q, we present underwriting income (loss), a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. We believe that non-GAAP financial measures, which may be defined and calculated differently by other companies, help explain and enhance the understanding of our results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with U.S. GAAP. Where appropriate, reconciliations of our non-GAAP measures to the most comparable GAAP figures are included below.

Current wording

income (loss), a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. We believe that non-GAAP financial measures, which may be defined and calculated differently by other companies, help explain and enhance the understanding of our results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with U.S. GAAP. Where appropriate, reconciliations of our non-GAAP measures to the most comparable GAAP figures are included below.

Previous wording

At March 31, 2024 and December 31, 2023, total cash and investments was $4.4 billion and $4.0 billion, respectively. However, a significant portion of the total cash and investments balances held were invested in TS Hamilton Fund as collateral for the investments held by the underlying trading vehicles, as shown in the tables under the "TS Hamilton Fund" discussion.

Current wording

At June 30, 2024 and December 31, 2023, total cash and investments was $4.6 billion and $4.0 billion, respectively. However, a significant portion of the total cash and investments balances held were invested in TS Hamilton Fund as collateral for the investments held by the underlying trading vehicles, as shown in the tables under the "TS Hamilton Fund" discussion.

Previous wording

Total cash and investments increased from $4.0 billion at December 31, 2023 to $4.4 billion at March 31, 2024. The increase was driven by both the TS Hamilton Fund, primarily due to positive investment returns for the three months ended March 31, 2024 and fixed maturity investments as we deployed more cash into the fixed maturity trading portfolio to take advantage of higher interest rates. The TS Hamilton Fund represents $2.0 billion and $1.8 billion of the total cash and investments as at March 31, 2024 and December 31, 2023, respectively.

Current wording

Total cash and investments increased from $4.0 billion at December 31, 2023 to $4.6 billion at June 30, 2024. The increase was driven by both the TS Hamilton Fund, primarily due to positive investment returns for the six months ended June 30, 2024, and fixed maturity investments as we deployed more cash into the fixed maturity trading portfolio to take advantage of higher interest rates. The TS Hamilton Fund represents $2.0 billion and $1.8 billion of the total cash and investments as at June 30, 2024 and December 31, 2023, respectively.