Hamilton Insurance Group Ltd
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 7, 2024
HG$36.94-0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-08.
0001593275-24-000088
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsOverviewSummary of Critical Accounting EstimatesSummary Results of OperationsKey Operating and Financial MetricsNon-GAAP MeasuresFinancial ConditionCash and InvestmentsLiquidity and Capital ResourcesFinancial Strength RatingsReserve for Losses and Loss Adjustment ExpensesRecent Accounting PronouncementsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001593275-24-000112
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsOverviewSummary of Critical Accounting EstimatesSummary Results of OperationsKey Operating and Financial MetricsNon-GAAP MeasuresFinancial ConditionCash and InvestmentsLiquidity and Capital ResourcesFinancial Strength RatingsReserve for Losses and Loss Adjustment ExpensesRecent Accounting PronouncementsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 273 previous paragraphs and 275 current paragraphs.
139 unchanged; 87 reworded; 47 added; 42 removed; 5 previous and 2 current paragraphs rearranged.
Tables are not compared: 68 previous and 69 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (47)
Current report
Catastrophe losses - current year and prior year development were $38.3 million and $7.2 million for the three months ended September 30, 2024 and 2023, respectively. Catastrophe losses for the three months ended September 30, 2024 were driven by Hurricane Helene ($33.9 million), the Calgary hailstorms ($12.3 million), and Hurricane Debby ($5.5 million), partially offset by favorable prior year development of $13.4 million. Catastrophe losses for the three months ended September 30, 2023 were driven by the Hawaii wildfires ($8.4 million), Hurricane Idalia ($6.6 million), the Vermont floods ($5.0 million) and certain smaller wind events ($0.2 million), partially offset by favorable development in respect of the June 2023 severe convective storms ($6.9 million) and favorable prior year development of $6.0 million.
Current report
Total net realized and unrealized gains (losses) on investments and net investment income (loss) -TSHF, prior to non-controlling interest, returned a loss of $28.3 million and income of $60.4 million for the three months ended September 30, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees.
Current report
Net investment income, net of non-controlling interest - TSHF, returned a loss of $11.1 million and income of $51.3 million for the three months ended September 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 (loss) attributable to non-controlling interests" in our GAAP financial statements.
Current report
TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of (0.6)% and 3.1% for the three months ended September 30, 2024 and 2023, respectively.
Current report
For the three months ended September 30, 2024, losses in TSHF were led by macroeconomic trading in Two Sigma Futures Portfolio, LLC (“FTV”). Within FTV, losses were experienced in equities, currencies, and fixed income. In single name equities trading, TSHF saw positive contributions from non-U.S. equities within Two Sigma Equity Spectrum Portfolio, LLC (“ESTV”), which were partially offset by losses from U.S. equities within Two Sigma Spectrum Portfolio, LLC ("STV"). Within ESTV, gains were led by Europe, East Asia, and Pan-America, in decreasing order.
Current report
For the three months ended September 30, 2023, TSHF generated positive returns in single name equities trading and macroeconomic trading. Gains were led by U.S. single name equities within STV, followed by macroeconomic trading in FTV, and then non-U.S. equities within ESTV. FTV gains primarily related to fixed income securities and commodities, while losses were driven by equities, credit and currencies. In ESTV, trading was profitable in East Asia and Pan-America, but not in Europe or China.
Current report
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other, returned income of $93.8 million and a loss of $5.0 million for the three months ended September 30, 2024 and 2023, respectively. Income for the three months ended September 30, 2024 was primarily driven by investment income on higher yielding assets and positive mark-to-market returns as a result of decreasing U.S. treasury interest rates in the period. Losses for the three months ended September 30, 2023 were primarily driven by the negative mark-to-market impact of rising U.S. treasury interest rates and other macroeconomic factors offsetting investment yield.
Current report
Gross premiums written increased by $18.4 million, or 6.0%, from $307.1 million for the three months ended September 30, 2023 to $325.5 million for the three months ended September 30, 2024, primarily driven by growth and improved pricing in property insurance and specialty insurance and reinsurance classes.
Current report
The loss ratio for the three months ended September 30, 2024 was 57.8%, compared to 54.8% for the three months ended September 30, 2023, an increase of 3.0 percentage points. The increase was primarily driven by higher current year catastrophe and attritional losses, and a lower contribution from favorable prior year development for the three months ended September 30, 2024.
Current report
Attritional loss ratio - current year for the three months ended September 30, 2024 was 55.3% compared to 54.6% for the three months ended September 30, 2023, an increase of 0.7 percentage points. The increase was driven by a change in business mix and a modest increase in the loss ratio for certain casualty insurance classes as a result of social inflation.
Current report
Catastrophe losses - current year and prior year were $8.9 million and $9.8 million for the three months ended September 30, 2024 and 2023, respectively. Catastrophe losses for the three months ended September 30, 2024 were driven by Hurricane Helene ($12.9 million) and Hurricane Debby ($1.5 million), partially offset by favorable prior year development of $5.5 million. Catastrophe losses for the three months ended September 30, 2023 were primarily driven by the Vermont floods ($4.5 million), Hurricane Idalia ($3.0 million), the Hawaii wildfires ($2.7 million) and unfavorable prior year development of $0.6 million, partially offset by favorable development on the June 2023 severe convective storms ($1.0 million).
Current report
Other underwriting expenses for the three months ended September 30, 2024 were $34.1 million, an increase of $2.5 million, or 7.9%, compared to $31.6 million for the three months ended September 30, 2023. The increase was primarily driven by an increase in salary and compensation costs, IT costs and professional fees.
Current report
Third party fee income increased by $0.1 million, from $0.2 million for the three months ended September 30, 2023 to $0.3 million for the three months ended September 30, 2024.
Current report
The loss ratio for the three months ended September 30, 2024 was 64.2%, compared to 59.2% for the three months ended September 30, 2023, an increase of 5.0 percentage points. The increase was primarily driven by higher catastrophe losses, partially offset by lower current and prior year attritional losses for the three months ended September 30, 2024.
Current report
Attritional loss ratio - current year for the three months ended September 30, 2024 was 51.0% compared to 55.1% for the three months ended September 30, 2023, a decrease of 4.1 percentage points. The decrease was primarily driven by a change in business mix and no large losses for the three months ended September 30, 2024, partially offset by a modest increase in the loss ratio for certain casualty reinsurance classes as a result of social inflation.
Current report
Catastrophe losses - current year and prior year were $29.4 million for the three months ended September 30, 2024 and favorable development of $2.5 million for the three months ended September 30, 2023. Catastrophe losses for the three months ended September 30, 2024 were driven by Hurricane Helene ($21.0 million), the Calgary hailstorms ($12.3 million), and Hurricane Debby ($4.0 million), partially offset by favorable prior year development of $7.9 million. Catastrophe losses for the three months ended September 30, 2023 were primarily driven by favorable development on the June 2023 severe convective storms ($5.9 million) and favorable prior year development of $6.6 million, partially offset by the Hawaii wildfires ($5.7 million), Hurricane Idalia ($3.6 million), and various smaller wind and flood events ($0.7 million).
Current report
The acquisition cost ratio for the three months ended September 30, 2024 decreased to 19.0%, compared to 19.8% for the three months ended September 30, 2023. The decrease was primarily driven by the change in business mix.
Current report
Total net realized and unrealized gains (losses) on investments and net investment income (loss) -TSHF, prior to non-controlling interest, returned a loss of $28.3 million and income of $60.4 million for the three months ended September 30, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees.
Current report
Net investment income, net of non-controlling interest - TSHF, returned a loss of $11.1 million and income of $51.3 million for the three months ended September 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 (loss) attributable to non-controlling interests" in our GAAP financial statements.
Current report
TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of (0.6)% and 3.1% for the three months ended September 30, 2024 and 2023, respectively.
Current report
For the three months ended September 30, 2024, losses in TSHF were led by macroeconomic trading in FTV. Within FTV, losses were experienced in equities, currencies, and fixed income. In single name equities trading, TSHF saw positive contributions from non-U.S. equities within ESTV, which were partially offset by losses from U.S. equities within STV. Within ESTV, gains were led by Europe, East Asia, and Pan-America, in decreasing order.
Current report
For the three months ended September 30, 2023, TSHF generated positive returns in single name equities trading and macroeconomic trading. Gains were led by U.S. single name equities within STV, followed by macroeconomic trading in FTV, and then non-U.S. equities within ESTV. FTV gains primarily related to fixed income securities and commodities, while losses were driven by equities, credit and currencies. In ESTV, trading was profitable in East Asia and Pan-America, but not in Europe or China.
Current report
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other, returned income of $93.8 million and a loss of $5.0 million for the three months ended September 30, 2024 and 2023, respectively. Income for the three months ended September 30, 2024 was primarily driven by investment income on higher yielding assets and positive mark-to-market returns as a result of decreasing U.S. treasury interest rates in the period. Losses for the three months ended September 30, 2023 were primarily driven by the negative mark-to-market impact of rising U.S. treasury interest rates and other macroeconomic factors offsetting investment yield.
Current report
Catastrophe losses - current year and prior year development were $38.5 million and $30.4 million for the nine months ended September 30, 2024 and 2023, respectively. Catastrophe losses for the nine months ended September 30, 2024 were driven by Hurricane Helene ($33.9 million), the Calgary hailstorms ($12.3 million), and Hurricane Debby ($5.5 million), partially offset by favorable prior year development of $13.2 million. Catastrophe losses for the nine months ended September 30, 2023 were driven by the Hawaii wildfires ($8.4 million), severe convective storms in June 2023 ($7.7 million), the wind and thunderstorm events which impacted states in both the Southern and Midwest U.S. during March 2023 ($7.6 million), Hurricane Idalia ($6.6 million), and the Vermont floods ($5.0 million), partially offset by favorable prior year development of $4.9 million.
Current report
Total net realized and unrealized gains (losses) on investments and net investment income (loss) -TSHF, prior to non-controlling interest, returned income of $379.7 million and $100.4 million for the nine months ended September 30, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees.
Current report
Net investment income, net of non-controlling interest - TSHF, returned income of $207.5 million and $85.4 million for the nine months ended September 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 (loss) attributable to non-controlling interests" in our GAAP financial statements.
Current report
TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of 12.2% and 5.3% for the nine months ended September 30, 2024 and 2023, respectively.
Current report
For the nine months ended September 30, 2023, TSHF generated positive returns in single name equities trading, partially offset by losses in macroeconomic trading. In single name equities trading, U.S. equities within STV and non-U.S. equities within ESTV both made positive contributions. Within ESTV, trading was most profitable in East Asia, followed by Europe, China and Pan-America. Within FTV, gains were driven by currencies, equities and credit, while losses related to commodities and fixed income.
Current report
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other returned income of $118.8 million and $19.2 million for the nine months ended September 30, 2024 and 2023, respectively. Income for the nine months ended September 30, 2024 was primarily driven by investment income on higher yielding assets and positive mark-to-market returns as a result of decreasing U.S. treasury interest rates in the period. Income for the nine months ended September 30, 2023 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.
Current report
The loss ratio for the nine months ended September 30, 2024 was 56.3%, compared to 50.7% for the nine months ended September 30, 2023, an increase of 5.6 percentage points. The increase was driven by a lower contribution from favorable prior year development and higher current year attritional losses for the nine months ended September 30, 2024.
Current report
Attritional loss ratio - current year for the nine months ended September 30, 2024 was 54.6% compared to 52.6% for the nine months ended September 30, 2023, an increase of 2.0 percentage points. The increase was primarily driven by losses of $11.8 million, or 1.9 points, arising from the Baltimore Bridge collapse.
Current report
Attritional loss ratio - prior year for the nine months ended September 30, 2024 wasan unfavorable 0.3% compared to a favorable 4.3% for the nine months ended September 30, 2023, an increase of 4.6 percentage points. The unfavorable attritional loss ratio - prior year for the nine months ended September 30, 2024 was primarily driven by unfavorable development in specialty insurance classes, impacted by two large losses, and casualty insurance classes, impacted by one specific large loss, partially offset by favorable development in our property insurance and reinsurance classes. In addition, casualty business protected by the LPT discussed in Note 7, Reinsurance, benefited from favorable development in the underlying reserves of $1.4 million and $1.3 million in amortization of the associated deferred gain, for a total net positive earnings impact of $2.7 million.
Current report
Catastrophe losses - current year and prior year were $9.1 million and $11.8 million for the nine months ended September 30, 2024 and 2023, respectively. Catastrophe losses for the nine months ended September 30, 2024 were driven by Hurricane Helene ($12.9 million) and Hurricane Debby ($1.5 million), partially offset by favorable prior year development of $5.3 million. Catastrophe losses for the nine months ended September 30, 2023 were primarily driven by the Vermont floods ($4.5 million), Hurricane Idalia ($3.0 million), the Hawaii wildfires ($2.7 million) and certain other wind events ($0.5 million), in addition to unfavorable prior year development of $1.1 million.
Current report
The loss ratio for the nine months ended September 30, 2024 was 58.7%, compared to 58.9% for the nine months ended September 30, 2023, a decrease of 0.2 percentage points. The modest decrease was primarily driven by lower prior year attritional loss development, partially offset by a higher current year attritional loss ratio for the nine months ended September 30, 2024.
Current report
Attritional loss ratio - current year for the nine months ended September 30, 2024 was 53.1% compared to 50.8% for the nine months ended September 30, 2023, an increase of 2.3 percentage points. The increase was primarily driven by losses of $26.1 million, or 4.2 points, arising from the Baltimore Bridge collapse.
Current report
Attritional loss ratio - prior year for the nine months ended September 30, 2024 was an unfavorable 0.8% compared to an unfavorable 4.0% for the nine months ended September 30, 2023, a decrease of 3.2 percentage points. The unfavorable attritional loss ratio - prior year for the nine months ended September 30, 2024 was primarily driven by a modest increase in certain casualty classes, partially offset by favorable development in property reinsurance and insurance classes.
Current report
Catastrophe losses - current year and prior year were $29.4 million and $18.6 million for the nine months ended September 30, 2024 and 2023, respectively. Catastrophe losses for the nine months ended September 30, 2024 were driven by Hurricane Helene ($21.0 million), the Calgary hailstorms ($12.3 million), and Hurricane Debby ($4.0 million), partially offset by favorable prior year development of $7.9 million. Catastrophe losses for the nine months ended September 30, 2023 were primarily driven by wind and thunderstorm events which impacted states in both the Southern and Midwest U.S. during March 2023 ($7.6 million), severe convective storms in June 2023 ($7.2 million), the Hawaii wildfires ($5.7 million), Hurricane Idalia ($3.6 million), and smaller flood events ($0.5 million), partially offset by favorable prior year development of $6.0 million.
Current report
Total net realized and unrealized gains (losses) on investments and net investment income (loss) -TSHF, prior to non-controlling interest, returned income of $379.7 million and $100.4 million for the nine months ended September 30, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees.
Current report
Net investment income, net of non-controlling interest - TSHF, returned income of $207.5 million and $85.4 million for the nine months ended September 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 (loss) attributable to non-controlling interests" in our GAAP financial statements.
Current report
TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of 12.2% and 5.3% for the nine months ended September 30, 2024 and 2023, respectively.
Showing the first 40 of 47 passages. Open the source sections for the rest.
Removed paragraphs (42)
Previous report
Catastrophe losses - current year and prior year development for the three months ended June 30, 2024 included $Nil current year losses and an insignificant movement on prior year. Catastrophe losses of $15.7 million for the three months ended June 30, 2023 were driven by severe convective storms in June 2023 ($14.6 million), the wind and thunderstorm events which impacted states in both the Southern and Midwest U.S. during March 2023 ($2.1 million), partially offset by favorable prior year development of $1.0 million.
Previous report
Total net realized and unrealized gains (losses) on investments and net investment income (loss) -TSHF, prior to non-controlling interest, returned income of $145.2 million and $30.0 million for the three months ended June 30, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees.
Previous report
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 report
TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of 4.3% and 1.6% for the three months ended June 30, 2024 and 2023, respectively.
Previous report
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 report
For the three months ended June 30, 2023, gains in TSHF were led by non-U.S. single name equities trading within ESTV. Within ESTV, East Asia and Europe made positive contributions to gains, while losses were experienced in China and Pan America. U.S. single name equities trading within STV also positively contributed to gains. Macroeconomic trading in FTV also experienced gains, led primarily by equities.
Previous report
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 report
Gross premiums written increased by $33.8 million, or 12.2%, from $277.8 million for the three months ended June 30, 2023 to $311.6 million for the three months ended June 30, 2024, primarily driven by growth, improved pricing and new business in specialty, casualty and property insurance classes.
Previous report
The loss ratio for the three months ended June 30, 2024 was 52.3%, compared to 49.6% for the three months ended June 30, 2023, an increase of 2.7 percentage points. The increase was primarily as a result of modest favorable prior year attritional and catastrophe loss development of 0.2% for the three months ended June 30, 2024, compared to favorable prior year attritional and catastrophe loss development of 4.2% for the three months ended June 30, 2023.
Previous report
Attritional loss ratio - current year for the three months ended June 30, 2024 was 52.5% compared to 52.9% for the three months ended June 30, 2023, a decrease of 0.4 percentage points.
Previous report
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 report
The loss ratio for the three months ended June 30, 2024 was 50.0%, compared to 59.3% for the three months ended June 30, 2023, a decrease of 9.3 percentage points. The decrease was primarily driven by lower catastrophe losses for the three months ended June 30, 2024.
Previous report
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 report
The components of total net realized and unrealized gains (losses) on investments and net investment income (loss) are as follows:
Previous report
Total net realized and unrealized gains (losses) on investments and net investment income (loss) -TSHF, prior to non-controlling interest, returned income of $145.2 million and $30.0 million for the three months ended June 30, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees.
Previous report
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 report
TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of 4.3% and 1.6% for the three months ended June 30, 2024 and 2023, respectively.
Previous report
For the three months ended June 30, 2024, gains in TSHF were led by single name equities trading within STV and 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 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 report
For the three months ended June 30, 2023, gains in TSHF were led by non-U.S. single name equities trading within ESTV. Within ESTV, East Asia and Europe made positive contributions to gains, while losses were experienced in China and Pan America. U.S. single name equities trading within STV also positively contributed to gains. Macroeconomic trading in FTV also experienced gains, led primarily by equities.
Previous report
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 report
Catastrophe losses - current year and prior year development were $0.2 million and $23.2 million for the six months ended June 30, 2024 and 2023, respectively. Catastrophe losses for the six months ended June 30, 2024 included $Nil current year losses and an insignificant movement on prior year. Catastrophe losses (current and prior year development) for the six months ended June 30, 2023 were driven by severe convective storms in June 2023 ($14.6 million), the wind and thunderstorm events which impacted states in both the Southern and Midwest U.S. during March 2023 ($7.4 million), and unfavorable prior year development of $1.2 million.
Previous report
Total net realized and unrealized gains (losses) on investments and net investment income (loss) -TSHF, prior to non-controlling interest, returned income of $408.0 million and $40.0 million for the six months ended June 30, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees.
Previous report
Net investment income, net of non-controlling interest - TSHF, net of non-controlling interest, returned income of $218.5 million and $34.0 million for the six 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 report
TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of 12.9% and 2.1% for the six months ended June 30, 2024 and 2023, respectively.
Previous report
For the six months ended June 30, 2023, TSHF received positive contributions from single name equities trading which was partially offset by losses experienced from macroeconomic trading in FTV. In STV and ESTV, both non-U.S. and U.S. portfolios have contributed positively. In FTV, losses were driven by fixed income and commodities, with equities and currencies trading contributing positive results.
Previous report
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other returned income of $25.0 million and $24.1 million for the six months ended June 30, 2024 and 2023, respectively. The returns are 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 year to date.
Previous report
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 report
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 report
Attritional loss ratio - prior year for the six months ended June 30, 2024 was an unfavorable 1.3% compared to a favorable 3.8% for the six months ended June 30, 2023, a decrease of 5.1 percentage points. The unfavorable attritional loss ratio - prior year for the six months ended June 30, 2024 is primarily driven by unfavorable development on two large losses in our specialty insurance class, partially offset by favorable development in our 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.
Previous report
Catastrophe losses - current year and prior year of $0.2 million for the six months ended June 30, 2024 were driven by modest unfavorable prior year development of $0.2 million. Catastrophe losses - current year and prior year of $2.1 million for the six months ended June 30, 2023 were primarily driven by the severe convective storms in June 2023 of $1.5 million and unfavorable prior year development of $0.6 million.
Previous report
The loss ratio for the six months ended June 30, 2024 was 55.6%, compared to 58.8% for the six months ended June 30, 2023, a decrease of 3.2 percentage points. The decrease was primarily driven by a lower level of catastrophe losses for the six months ended June 30, 2024.
Previous report
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 report
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 report
Catastrophe losses - current year and prior year for the six months ended June 30, 2024 were $Nil. Catastrophe losses - current year and prior year of $21.1 million for the six months ended June 30, 2023 were primarily driven by severe convective storms in June 2023 ($13.1 million), the wind and thunderstorm events which impacted states in both the Southern and Midwest U.S. during March 2023 ($7.4 million), and unfavorable prior year development of $0.6 million.
Previous report
The components of total net realized and unrealized gains (losses) on investments and net investment income (loss) are as follows:
Previous report
Total net realized and unrealized gains (losses) on investments and net investment income (loss) -TSHF, prior to non-controlling interest, returned income of $408.0 million and $40.0 million for the six months ended June 30, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees.
Previous report
Net investment income, net of non-controlling interest - TSHF, net of non-controlling interest, returned income of $218.5 million and $34.0 million for the six 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 report
TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of 12.9% and 2.1% for the six months ended June 30, 2024 and 2023, respectively.
Previous report
For the six months ended June 30, 2023, TSHF received positive contributions from single name equities trading which was partially offset by losses experienced from macroeconomic trading in FTV. In STV and ESTV, both non-U.S. and U.S. portfolios have contributed positively. In FTV, losses were driven by fixed income and commodities, with equities and currencies trading contributing positive results.
Previous report
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other returned income of $25.0 million and $24.1 million for the six months ended June 30, 2024 and 2023, respectively. The returns are 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 year to date.
Showing the first 40 of 42 passages. Open the source sections for the rest.
Reworded paragraphs (87)
Previous wording
Reinsurance business offers a particularly attractive opportunity given the continued favorable rating environment and discipline in the market and is expected to accelerate growth opportunities for us in the near term in many areas. A number of factors, including economic and social inflation and continued high interest rates are driving the most favorable market conditions seen in decades. We are a recognized market with deep client and broker relationships and have low counter-party credit concentration with many of our insurance partners, providing ample headroom for us to grow. We are well positioned to deploy capital quickly, efficiently and profitably through writing more reinsurance business, as well as retaining more of our own business.
Current wording
Reinsurance business offers a particularly attractive opportunity given the favorable rating environment and discipline in the market and is expected to accelerate growth opportunities for us in the near term in many areas. A number of factors, including economic and social inflation and continued high interest rates are driving the most favorable market conditions seen in decades. We are a recognized market with deep client and broker relationships and have low counter-party credit concentration with many of our insurance partners, providing ample headroom for us to grow. We are well positioned to deploy capital quickly, efficiently and profitably through writing more reinsurance business, as well as retaining more of our own business.
Previous 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.
Current wording
The following is a comparison of selected data for our consolidated results of operations:
Previous wording
The following table summarizes book value per share and balance sheet data as at June 30, 2024 and March 31, 2024.
Current wording
The following table summarizes book value per share and balance sheet data:
Previous wording
(1) Third party fee income is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to other income (loss), the most comparable GAAP financial measure, also included other income (loss), excluding third party fee income of less than $0.1 million for each of the three months ended June 30, 2024 and 2023. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Measures' for further details.
Current wording
(1) Third party fee income is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to other income (loss), the most comparable GAAP financial measure, also included other income (loss), excluding third party fee income of $0.1 million or less for each of the three months ended September 30, 2024 and 2023. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Measures' for further details.
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 $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.
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 $14.1 million, and $18.7 million for the three months ended September 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
Gross premiums written Gross premiums written were $603.3 million and $505.0 million for the three months ended June 30, 2024 and 2023, respectively. The increase in gross premiums written was primarily driven by our casualty and property reinsurance and casualty, specialty and property insurance classes. The increase was a result of new business, increased participations on existing business and a strong rate environment across multiple classes of business.
Current wording
Gross premiums written Gross premiums written were $553.4 million and $474.1 million for the three months ended September 30, 2024 and 2023, respectively. The increase in gross premiums written was primarily driven by our casualty, specialty and property reinsurance and property insurance classes. The increase was a result of new business, increased participations on existing business and a strong rate environment across multiple classes of business.
Previous 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.
Current wording
Underwriting results The combined ratio was 93.6% and 92.6% for the three months ended September 30, 2024 and 2023, respectively. The increase was primarily driven by an increase in the catastrophe loss ratio, partially offset by a decrease in the other underwriting expense ratio, attritional loss ratio and acquisition cost ratio.
Previous wording
Attritional loss ratio - current year for the three months ended June 30, 2024 was 50.5% compared to 48.9% for the three months ended June 30, 2023, an increase of 1.6 percentage points. The increase was primarily driven by a change in business mix, including more proportional business, with no large losses for either the three months ended June 30, 2024 or 2023.
Current wording
Attritional loss ratio - current year for the three months ended September 30, 2024 was 53.2% compared to 54.8% for the three months ended September 30, 2023, a decrease of 1.6 percentage points. The decrease was primarily driven by no large losses for the three months ended September 30, 2024, partially offset by a modest increase in the loss ratio for certain casualty classes as a result of social inflation.
Previous wording
Attritional loss ratio - prior year for the three months ended June 30, 2024 was a favorable 0.4% compared to a favorable 1.6% for the three months ended June 30, 2023, an increase of 1.2 percentage points. The attritional loss ratio - prior year for the three months ended June 30, 2024 was primarily driven by favorable development in property classes in both our International and Bermuda segments, casualty classes in our International segment, and specialty classes in our Bermuda segment, partially offset by unfavorable development in specialty classes in our International segment. 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. The attritional loss ratio - prior year for the three months ended June 30, 2023 was primarily driven by favorable development in property classes in our International segment and specialty classes in our Bermuda segment, partially offset by unfavorable development in specialty classes in our International segment and certain large losses in the Bermuda segment's property and specialty classes.
Current wording
Attritional loss ratio - prior year for the three months ended September 30, 2024 was a favorable 0.7% compared to a favorable 0.1% for the three months ended September 30, 2023, a decrease of 0.6 percentage points. The attritional loss ratio - prior year for the three months ended September 30, 2024 was primarily driven by favorable development in property and specialty classes in both our International and Bermuda segments, partially offset by unfavorable development in casualty classes in both our International and Bermuda segments. In addition, casualty business protected by the loss portfolio transfer ("LPT") discussed in Note 7, Reinsurance, recorded a gain of $1.1 million. The attritional loss ratio - prior year for the three months ended September 30, 2023 in both the International and Bermuda segments was primarily driven by favorable prior year development in specialty classes. This was partially offset by unfavorable development in casualty classes in each of the International and Bermuda segments and property classes in the Bermuda segment.
Previous wording
Net premiums earned increased by $39.0 million, or 22.1%, from $176.6 million for the three months ended June 30, 2023 to $215.6 million for the three months ended June 30, 2024, primarily driven by growth in specialty and property insurance classes. 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.
Current wording
Net premiums earned increased by $46.6 million, or 26.1%, from $178.6 million for the three months ended September 30, 2023 to $225.2 million for the three months ended September 30, 2024. The increase was primarily driven by growth in casualty and property insurance classes and specialty insurance and reinsurance classes. Casualty insurance growth was primarily driven by U.S. excess and surplus lines, mergers & acquisitions, professional lines, environmental and U.S. energy; property insurance growth was driven by property binders; specialty insurance growth was primarily driven by accident & health and political violence; and specialty reinsurance growth was primarily attributable to surety reinsurance.
Previous 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.
Current wording
Third party fee income increased by $2.1 million, or 97.2%, from $2.1 million for the three months ended September 30, 2023 to $4.2 million for the three months ended September 30, 2024. The increase was primarily due to 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 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.
Current wording
Attritional loss ratio - prior year for the three months ended September 30, 2024 was a favorable 1.5% compared to a favorable 5.3% for the three months ended September 30, 2023, an increase of 3.8 percentage points. The favorable attritional loss ratio - prior year for the three months ended September 30, 2024 was primarily driven by favorable development in property insurance and specialty reinsurance classes, partially offset by unfavorable development in certain casualty insurance classes, including one specific large loss. In addition, casualty business protected by the LPT discussed in Note 7, Reinsurance, recorded a gain of $1.1 million.
Previous wording
Attritional loss ratio - current year for the three months ended June 30, 2024 was 51.6% compared to 51.0% for the three months ended June 30, 2023, an increase of 0.6 percentage points. The modest increase was primarily driven by a change in business mix, with no large losses for either the three months ended June 30, 2024 or 2023.
Current wording
For the three months ended September 30, 2024, the acquisition cost ratio was 26.5%, compared to 26.4% for the three months ended September 30, 2023, an increase of 0.1 percentage points. The modest increase was primarily driven by property insurance and specialty reinsurance classes as a result of changes in business mix.
Previous 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.
Current wording
The other underwriting expense ratio for the three months ended September 30, 2024 and 2023 decreased over the same period from 16.5% to 13.3% , primarily as a result of the growth in the premium base.
Previous wording
For the three months ended June 30, 2024, gross premiums written increased by $64.5 million, or 28.4%, from $227.2 million for the three months ended June 30, 2023 to $291.7 million for the three months ended June 30, 2024. The increase was primarily driven by new business, increased participations and a strong rate environment in both our casualty reinsurance and property reinsurance classes.
Current wording
For the three months ended September 30, 2024, gross premiums written increased by $60.9 million, or 36.5%, from $167.0 million for the three months ended September 30, 2023 to $227.9 million for the three months ended September 30, 2024. The increase was primarily driven by new business, increased participations and a strong rate environment in our casualty reinsurance, property reinsurance and specialty reinsurance classes.
Previous 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.
Current wording
For the three months ended September 30, 2024, the Bermuda segment's net premiums earned increased by $65.1 million, or 41.1%, from $158.4 million for the three months ended September 30, 2023 to $223.6 million for the three months ended September 30, 2024. The increase was primarily driven by new business, volume growth and a strong rate environment in casualty reinsurance and property reinsurance. The most significant drivers of the increase were general liability, professional lines and property treaty classes.
Previous wording
Attritional loss ratio - prior year for the three months ended June 30, 2024 was a favorable 0.5%, compared to an unfavorable 0.3% for the three months ended June 30, 2023, a decrease of 0.8 percentage points. The favorable attritional loss ratio - prior year is primarily driven by modest favorable development across property and specialty classes.
Current wording
Attritional loss ratio - prior year for the three months ended September 30, 2024 was Nil, compared to an unfavorable 5.7% for the three months ended September 30, 2023, a decrease of 5.7 percentage points. The attritional loss ratio - prior year for the three months ended September 30, 2024 was primarily driven by an increase in casualty reinsurance, partially offset by favorable development in property and specialty classes.
Previous 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.
Current wording
For the three months ended September 30, 2024, other underwriting expenses increased by $1.5 million or 11.5%, from $12.7 million for the three months ended September 30, 2023 to $14.2 million for the three months ended September 30, 2024. The increase was primarily driven by an increase in salary and compensation costs and professional fees.
Previous wording
The other underwriting expense ratios for the three months ended June 30, 2024 and 2023 decreased over the same period from 8.5% for the three months ended June 30, 2023 to 6.2% for the three months ended June 30, 2024, primarily 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 three months ended September 30, 2024 and 2023 decreased over the same period from 7.9% to 6.2%, as a result of the growth in premium base.
Previous wording
Other income (loss), excluding third party fee income, consists of varying insignificant items in each period. There was no other income (loss) for the six months ended June 30, 2024 and 2023.
Current wording
Other income (loss), excluding third party fee income, consists of varying insignificant items in each period. There was no other income (loss) for the three months ended September 30, 2024.
Previous 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.
Current wording
Foreign exchange losses of $6.0 million and gains $1.4 million for the three months ended September 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 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.
Current wording
Corporate expenses for the three months ended September 30, 2024 were $14.1 million, compared to $18.7 million for the three months ended September 30, 2023, a decrease of $4.6 million. The decrease was primarily driven by $1.9 million of Value Appreciation Pool ("VAP") expense recorded for the three months ended September 30, 2024, compared to $11.2 million of VAP expense recorded for the three months ended September 30, 2023, partially offset by 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 $2.3 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.
Current wording
Amortization of intangible assets of $5.2 million and $2.8 million for the three months ended September 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 $11.7 million and $10.7 million for the six 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.
Current wording
Interest expense of $5.4 million and $5.3 million for the three months ended September 30, 2024 and 2023, respectively, relates to interest payments and certain administrative fees associated with our term loan and letter of credit facilities.
Previous 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.
Current wording
Income tax expense for the three months ended September 30, 2024 was $3.0 million, compared to $2.4 million for the three months ended September 30, 2023, an increase of $0.6 million. Tax expense for both the three months ended September 30, 2024 and 2023 was primarily driven by withholding taxes on investment income from TS Hamilton Fund.
Previous wording
The following is a comparison of selected data for our consolidated results of operations for the six months ended June 30, 2024 and 2023.
Current wording
The following is a comparison of selected data for our consolidated results of operations:
Previous wording
The following table summarizes book value per share and balance sheet data as at June 30, 2024 and December 31, 2023.
Current wording
The following table summarizes book value per share and balance sheet data:
Previous wording
(1) Third party fee income is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to other income (loss), the most comparable GAAP financial measure, also included other income (loss), excluding third party fee income of $Nil for each of the six months ended June 30, 2024 and 2023. Refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Measures" for further details.
Current wording
(1) Third party fee income is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to other income (loss), the most comparable GAAP financial measure, also included other income (loss), excluding third party fee income of $Nil and $0.1 million for the nine months ended September 30, 2024 and 2023. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Measures' for further details.
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 $27.8 million and $13.2 million for the six 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.
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 $41.8 million and $31.8 million for the nine months ended September 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
The following significant items impacted the consolidated results of operations for the six months ended June 30, 2024 and 2023:
Current wording
The following significant items impacted the consolidated results of operations for the nine months ended September 30, 2024 and 2023:
Previous 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.
Current wording
Gross premiums written Gross premiums written were $1.9 billion and $1.5 billion for the nine months ended September 30, 2024 and 2023, respectively. The increase in gross premiums written was primarily driven by our property reinsurance, casualty reinsurance, specialty reinsurance and casualty insurance 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
Underwriting results The combined ratio was 87.9% and 88.8% for the six months ended June 30, 2024 and 2023, respectively. The decrease was largely 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.
Current wording
Underwriting results The combined ratio was 89.9% and 90.2% for the nine months ended September 30, 2024 and 2023, respectively. The decrease was largely driven by a decrease in the other underwriting expense ratio, acquisition cost ratio, and catastrophe loss ratio, partially offset by an increase in the attritional loss ratio.
Previous 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.
Current wording
Attritional loss ratio - current year for the nine months ended September 30, 2024 was 53.9% compared to 51.8% for the nine months ended September 30, 2023, an increase of 2.1 percentage points. The increase was primarily driven by losses of $37.9 million, or 3.0 points, 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 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.
Current wording
Attritional loss ratio - prior year for the nine months ended September 30, 2024 was an unfavorable 0.6% compared to favorable 0.4% for the nine months ended September 30, 2023, an increase of 1.0 percentage point. The attritional loss ratio - prior year for the nine months ended September 30, 2024 was primarily driven by unfavorable development in casualty classes in both our International and Bermuda segments and specialty insurance classes in our International segment, partially offset by favorable development in our International and Bermuda property classes. In addition, casualty business protected by the LPT discussed in Note 7, Reinsurance, benefited from favorable development in the underlying reserves of $1.4 million and $1.3 million in amortization of the associated deferred gain, for a total net positive earnings impact of $2.7 million. The attritional loss ratio - prior year for the nine months ended September 30, 2023 was primarily driven by favorable prior year development in specialty classes in the International and Bermuda segments, partially offset by unfavorable development in our Bermuda property and casualty classes. In addition, casualty business protected by the LPT discussed in Note 7, Reinsurance, benefited from $2.5 million in amortization of the associated deferred gain and favorable development in the underlying reserves of $1.5 million, for a total net positive earnings impact of $4.0 million.
Previous wording
For the six months ended June 30, 2024, gains in TSHF were led by macroeconomic trading in FTV. Within FTV, gains were achieved in equities, fixed income, commodities, and currencies while losses were experienced in credit. TSHF also saw gains from single name equities trading within STV and 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, Europe, China, and Pan-America all made positive contributions to gains.
Current wording
For the nine months ended September 30, 2024, gains in TSHF were led by macroeconomic trading in FTV. Within FTV, gains were achieved in equities, commodities, fixed income, and credit, while losses were experienced in currencies. TSHF also saw gains from single name equities trading within STV and 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, Europe, Pan-America and China all made positive contributions to gains, in decreasing order.
Previous wording
Gross premiums written increased by $107.5 million, or 20.5%, from $524.9 million for the six months ended June 30, 2023 to $632.5 million for the six months ended June 30, 2024, primarily driven by growth, improved pricing and new business in casualty insurance, specialty insurance and reinsurance and property insurance classes.
Current wording
Gross premiums written increased by $125.9 million, or 15.1%, from $832.0 million for the nine months ended September 30, 2023 to $958.0 million for the nine months ended September 30, 2024, primarily driven by growth, improved pricing and new business in casualty and property insurance classes and specialty reinsurance and insurance classes.
Previous 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.
Current wording
For the nine months ended September 30, 2024, net premiums earned increased by $132.9 million, or 26.3%, from $504.8 million for the nine months ended September 30, 2023 to $637.7 million for the nine months ended September 30, 2024. The increase was driven by growth in our specialty, casualty and property insurance classes, in addition to growth in the specialty reinsurance class. Specialty insurance growth was primarily driven by accident & health, political violence, fine art & specie, and marine & energy; casualty insurance growth was primarily driven by U.S. excess and surplus lines, professional lines and excess casualty; property insurance growth was driven by property binders and D&F; and specialty reinsurance growth was primarily attributable to surety reinsurance and treaty reinsurance.
Previous wording
For the six months ended June 30, 2024, fee income increased by $2.1 million, or 39.3%, from $5.3 million for the six months ended June 30, 2023 to $7.4 million for the six 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.
Current wording
For the nine months ended September 30, 2024, fee income increased by $4.1 million, or 55.8%, from $7.4 million for the nine months ended September 30, 2023 to $11.6 million for the nine months ended September 30, 2024. The increase was primarily due to favorable terms of a renewed syndicate management arrangement and an increase in consortium fees.
Previous wording
For the three months ended June 30, 2024, the acquisition cost ratio was 24.7%, compared to 26.8% for the three months ended June 30, 2023, a decrease of 2.1 percentage points. The decrease was primarily driven by casualty insurance, as a result of a change in the business mix and non-recurring profit commissions recorded in thethree months ended June 30, 2023.
Current wording
The acquisition cost ratio for the nine months ended September 30, 2024 was 25.2%, compared to 26.1% for the nine months ended September 30, 2023, a decrease of 0.9 percentage points. The decrease was primarily driven by casualty insurance, as a result of a change in the business mix and non-recurring profit commissions recorded in the nine months ended September 30, 2023.
Previous wording
Other underwriting expenses were $65.2 million for the six months ended June 30, 2024, an increase of $7.2 million, or 12.4%, compared to $58.0 million for the six months ended June 30, 2023. The increase was primarily driven by increases in headcount as we built out underwriting teams supporting the corresponding increase in premium volume, and certain growth related professional and IT costs.
Current wording
Other underwriting expenses were $99.3 million for the nine months ended September 30, 2024, an increase of $9.7 million, or 10.8%, compared to $89.6 million for the nine months ended September 30, 2023. The increase was primarily driven by increases in headcount as we built out underwriting teams supporting the corresponding increase in premium volume, and certain growth related professional and IT costs.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Income tax expense for the nine months ended September 30, 2024 was $6.1 million, compared to $6.9 million for the nine months ended September 30, 2023, a decrease of $0.8 million. Tax expense for both the nine months ended September 30, 2024 and 2023 was primarily driven by withholding taxes on investment income from TS Hamilton Fund.
Current report — wording carried from elsewhere
The Company’s total capital was $2.3 billion at September 30, 2024, a 13.0% increase compared to $2.0 billion at
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
The acquisition cost ratio for the six months ended June 30, 2024 was 24.5%, compared to 25.9% for the six months ended June 30, 2023, a decrease of 1.4 percentage points. The decrease was primarily driven by casualty insurance, as a result of a change in the business mix and non-recurring profit commissions recorded in thesix months ended June 30, 2023.
Previous report — wording carried elsewhere
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 our performance. Some of the measurements are considered non-GAAP financial measures under SEC rules and regulations. In this Form 10-Q, we present underwriting
Previous report — wording carried elsewhere
The Company’s fixed maturity trading portfolio and short-term investments at June 30, 2024 and December 31, 2023 are as follows: