Hamilton Insurance Group, Ltd.

For the period ended Mar 31, 2025. Filed May 8, 2025.

About 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.

Mar 31, 2025 · Filed May 8, 2025

HG$36.94-0.1%Stored close · as of Nov 6, 2026

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Contents

Summary Results of Operations

Consolidated Results of Operations

The following is a comparison of selected data for our consolidated results of operations:

	For the Three Months Ended
	March 31,
($ in thousands, except per share amounts)	2025	2024
Gross premiums written	$843,306	$721,941
Net premiums written	$603,875	$514,880
Net premiums earned	$498,928	$385,303
Third party fee income(1)	4,662	7,478
Claims and Expenses
Losses and loss adjustment expenses	395,234	232,352
Acquisition costs	116,881	84,554
Other underwriting expenses(2)	49,734	43,353
Underwriting income (loss)(3)	(58,259)	32,522
Net realized and unrealized gains (losses) on investments	248,793	255,371
Net investment income (loss)(4)	18,927	12,618
Total net realized and unrealized gains (losses) on investments and net investment income (loss)	267,720	267,989
Net foreign exchange gains (losses)	(2,529)	(2,125)
Corporate expenses(2)	12,968	11,502
Amortization of intangible assets	3,890	3,252
Interest expense	5,602	5,708
Income tax expense (benefit)	3,206	592
Net income (loss)	181,266	277,332
Net income (loss) attributable to non-controlling interest(5)	100,394	120,158
Net income (loss) attributable to common shareholders	$80,872	$157,174
Diluted income (loss) per share attributable to common shareholders	$0.77	$1.38
Key Ratios
Attritional loss ratio - current year	51.9%	57.2%
Attritional loss ratio - prior year development	(2.9)%	3.1%
Catastrophe loss ratio - current year	32.0%	0.0%
Catastrophe loss ratio - prior year development	(1.8)%	0.0%
Loss and loss adjustment expense ratio	79.2%	60.3%
Acquisition cost ratio	23.4%	21.9%
Other underwriting expense ratio	9.0%	9.3%
Combined ratio	111.6%	91.5%
Return on average common shareholders' equity	3.4%	7.4%

The following table summarizes book value per share and balance sheet data:

($ in thousands, except per share amounts)	As at
Book Value	March 31,2025	December 31,2024
Tangible book value per common share	$22.69	$22.03
Change in tangible book value per common share	3.0%
Book value per common share	$23.59	$22.95
Change in book value per common share	2.8%
Balance Sheet Data
Total assets	$8,342,831	$7,796,033
Total shareholders' equity	$2,399,339	$2,328,709

(1) Third party fee income is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Measures' for further details.

(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 directly comparable GAAP financial measure, also included corporate expenses of $13.0 million, and $11.5 million for the three months ended March 31, 2025 and 2024, respectively. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Measures' for further details.

(3) Underwriting income (loss) is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Measures' for further details.

(4) Net investment income (loss) is presented net of investment management fees.

(5) Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations—Consolidated Results of Operations—Corporate and Other' for further details.

Operating Highlights

The following significant items impacted the consolidated results of operations for the three months ended March 31, 2025 and 2024:

Gross premiums written Gross premiums written were $843.3 million and $721.9 million for the three months ended March 31, 2025 and 2024, respectively. The increase in gross premiums written was primarily driven by our casualty and property reinsurance classes and specialty, property and casualty insurance classes, partially offset by a decrease in our specialty reinsurance classes. The increase was as a result of growth in both new and existing business and an increase in reinstatement premiums for the three months ended March 31, 2025.

Underwriting results The combined ratio was 111.6% and 91.5% for the three months ended March 31, 2025 and 2024, respectively. The increase was primarily driven by an increase in the catastrophe loss ratio and a modest increase in the acquisition cost ratio, partially offset by a decrease in the attritional loss ratio and a decrease in the other underwriting expense ratio.

	For the Three Months Ended
($ in thousands)	Current year	% of net premiums earned	Prior year development	% of net premiums earned	Losses and loss adjustment expenses	% of net premiums earned
Attritional losses	$259,241	51.9%	$(14,494)	(2.9)%	$244,747	49.0%
Catastrophe losses	159,703	32.0%	(9,216)	(1.8)%	150,487	30.2%
Total	$418,944	83.9%	$(23,710)	(4.7)%	$395,234	79.2%
Attritional losses	$220,295	57.2%	$11,892	3.1%	$232,187	60.3%
Catastrophe losses	—	0.0%	165	0.0%	165	0.0%
Total	$220,295	57.2%	$12,057	3.1%	$232,352	60.3%

Attritional loss ratio - current year for the three months ended March 31, 2025 was 51.9% compared to 57.2% for the three months ended March 31, 2024, a decrease of 5.3 percentage points. The decrease was primarily driven by the absence of large losses for the three months ended March 31, 2025, compared to $37.9 million of losses arising from the Francis Scott Key Baltimore Bridge collapse, which impacted our insurance and reinsurance classes in both our International and Bermuda segments for the three months ended March 31, 2024.

Attritional loss ratio - prior year for the three months ended March 31, 2025 was a favorable 2.9% compared to an unfavorable 3.1% for the three months ended March 31, 2024, a decrease of 6.0 percentage points. The attritional loss ratio - prior year for the three months ended March 31, 2025 was primarily driven by favorable development in both our International and Bermuda specialty and property classes. In addition, casualty business protected by the loss portfolio transfer ("LPT") discussed in Note 6, Reinsurance, benefited from favorable development in the underlying reserves of $1.0 million, which was partially offset by a change in the deferred gain of $0.5 million, for a total net positive earnings impact of $0.5 million. 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 LPT 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.

Catastrophe losses - current year and prior year development were $150.5 million and $0.2 million for the three months ended March 31, 2025 and 2024, respectively. Catastrophe losses for the three months ended March 31, 2025 were as a result of the California wildfires of $159.7 million, partially offset by favorable prior year development of $9.2 million. Catastrophe losses for the three months ended March 31, 2024 included $Nil current year losses and $0.2 million of unfavorable prior year development.

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - TSHF(1)	$203,961	$262,821
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other	63,759	5,168
	$267,720	$267,989
Net income (loss) attributable to non-controlling interest - TSHF	$100,394	$120,158

(1) Prior to non-controlling interest performance incentive allocation

Total net realized and unrealized gains (losses) on investments and net investment income (loss) -TSHF, prior to non-controlling interest, returned income of $204.0 million and $262.8 million for the three months ended March 31, 2025 and 2024, respectively. This includes the fund's returns, net of investment management fees.

Net investment income, net of non-controlling interest - TSHF, returned income of $103.6 million and $142.7 million for the three months ended March 31, 2025 and 2024, 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 interest" in our GAAP financial statements.

TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of 5.5% and 8.3% for the three months ended March 31, 2025 and 2024, respectively.

For the three months ended March 31, 2025, TS Hamilton Fund experienced gains in single name equities trading within the equity market neutral vehicles Two Sigma Spectrum Portfolio, LLC ("STV"), Two Sigma Equity Spectrum Portfolio, LLC ("ESTV"), and Two Sigma Absolute Return Portfolio, LLC ("ATV"). Gains in single name equities trading were led by the U.S., followed by East Asia. TS Hamilton Fund also experienced gains from macro trading within the systematic macro vehicle, Two Sigma Futures Portfolio, LLC ("FTV"), the relative value macro vehicle, Two Sigma Horizon Portfolio, LLC ("HTV"), the scientific discretionary macro vehicle, Two Sigma Navigator Portfolio, LLC ("NTV"), and the relative value rates vehicle, Two Sigma Kuiper Portfolio, LLC ("KTV"). Gains in macro trading were led by commodities in FTV and equities in HTV.

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.

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other, returned income of $63.8 million and $5.2 million for the three months ended March 31, 2025 and 2024, respectively. Income for the three months ended March 31, 2025 was primarily driven by investment income on a larger portfolio of higher yielding assets and positive mark-to-market returns in the first quarter of 2025. 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.

Segment Information

We have determined our reportable business segments based on the information used by management in assessing performance and allocating resources to underwriting operations. We have identified two reportable business segments - International and Bermuda. Each of our identified reportable segments has a Chief Executive Officer who is responsible for the overall profitability of their segment and who regularly reports and is directly accountable to the chief operating decision maker ("CODM"): the Chief Executive Officer of the consolidated group. The CODM's responsibilities include providing leadership to all levels of employees; developing culture, values, and ethos; setting the Company's strategy, vision and direction; and overall responsibility for the success and profitability of the Company, including evaluating segment performance.

The CODM evaluates reportable segment performance based on the segments' respective underwriting income or loss. Underwriting income or loss is calculated as net premiums earned less losses and loss adjustment expenses, acquisition costs, and other underwriting expenses, net of third party fee income. General and administrative expenses not incurred by the reportable segments are included in corporate and other expenses as part of the reconciliation of net underwriting income or loss to net income or loss attributable to common shareholders. As we do not manage our assets by reportable segment, investment income and assets are not allocated to reportable segments.

Our core business is underwriting and our underwriting results are reflected in our reportable segments: (1) International, which is comprised of property, casualty and specialty insurance and reinsurance classes of business originating from the Company’s London, Dublin, and Hamilton Select operations; and (2) Bermuda, which is comprised of property, casualty, and specialty insurance and reinsurance classes of business originating from Hamilton Re, Bermuda and Hamilton Re US and subsidiaries. We consider many factors, including the nature of each segment’s products, client types, production sources, distribution methods and the regulatory environment, in determining the aggregated operating segments.

Corporate includes net realized and unrealized gains (losses) on investments, net investment income (loss), net foreign exchange gains (losses), general and administrative expenses not incurred by the reportable segments, amortization of intangible assets, interest expense, and income tax expense (benefit).

International Segment

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Gross premiums written	$369,959	$320,841
Net premiums written	$228,975	$185,033
Net premiums earned	$240,567	$196,814
Third party fee income	4,332	3,586
Claims and Expenses
Losses and loss adjustment expenses	145,671	116,162
Acquisition costs	62,790	47,720
Other underwriting expenses	35,623	31,203
Underwriting income (loss)	$815	$5,315
Attritional losses - current year	$125,323	$110,197
Attritional losses - prior year development	(8,692)	5,773
Catastrophe losses - current year	29,040	—
Catastrophe losses - prior year development	—	192
Losses and loss adjustment expenses	$145,671	$116,162
Attritional loss ratio - current year	52.1%	56.0%
Attritional loss ratio - prior year development	(3.6)%	2.9%
Catastrophe loss ratio - current year	12.1%	0.0%
Catastrophe loss ratio - prior year development	0.0%	0.1%
Losses and loss adjustment expense ratio	60.6%	59.0%
Acquisition cost ratio	26.1%	24.2%
Other underwriting expense ratio	13.0%	14.0%
Combined ratio	99.7%	97.2%

Gross Premiums Written

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Property	$54,526	$37,704
Casualty	135,563	121,165
Specialty	179,870	161,972
Total	$369,959	$320,841

Gross premiums written increased by $49.1 million, or 15.3%, from $320.8 million for the three months ended March 31, 2024 to $370.0 million for the three months ended March 31, 2025. The increase was primarily driven by growth in both existing and new business in specialty, property, and casualty insurance classes, partially offset by a modest decrease in specialty reinsurance classes.

Net Premiums Earned

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Property	$45,705	$34,974
Casualty	90,568	72,928
Specialty	104,294	88,912
Total	$240,567	$196,814

Net premiums earned increased by $43.8 million, or 22.2%, from $196.8 million for the three months ended March 31, 2024 to $240.6 million for the three months ended March 31, 2025. The increase was primarily driven by growth in our casualty, specialty and property insurance classes. Casualty insurance growth was primarily driven by U.S. excess and surplus lines, mergers & acquisitions, and cyber; specialty insurance growth was primarily driven by accident & health, marine & energy, and fine art & specie; and property insurance growth was primarily driven by property binder business.

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Third party fee income	$4,332	$3,586

Third party fee income increased by $0.7 million, or 20.8%, from $3.6 million for the three months ended March 31, 2024 to $4.3 million for the three months ended March 31, 2025. The increase was primarily due to an increase in consortium fees and syndicate management fees.

	For the Three Months Ended
($ in thousands)	Current year	% of net premiums earned	Prior year development	% of net premiums earned	Losses and loss adjustment expenses	% of net premiums earned
Attritional losses	$125,323	52.1%	$(8,692)	(3.6)%	$116,631	48.5%
Catastrophe losses	29,040	12.1%	—	0.0%	29,040	12.1%
Total	$154,363	64.2%	$(8,692)	(3.6)%	$145,671	60.6%
Attritional losses	$110,197	56.0%	$5,773	2.9%	$115,970	58.9%
Catastrophe losses	—	0.0%	192	0.1%	192	0.1%
Total	$110,197	56.0%	$5,965	3.0%	$116,162	59.0%

The loss ratio for the three months ended March 31, 2025 was 60.6%, compared to 59.0% for the three months ended March 31, 2024, an increase of 1.6 percentage points. The increase was primarily driven by a higher current year catastrophe loss ratio, partially offset by a lower current year attritional loss ratio and a favorable prior year development loss ratio for the three months ended March 31, 2025.

Attritional loss ratio - current year for the three months ended March 31, 2025 was 52.1% compared to 56.0% for the three months ended March 31, 2024, a decrease of 3.9 percentage points. The decrease was primarily driven by the absence of large losses for the three months ended March 31, 2025, compared to $11.8 million of losses arising from the Baltimore Bridge collapse, which impacted our insurance and reinsurance classes for the three months ended March 31, 2024.

Attritional loss ratio - prior year for the three months ended March 31, 2025 was a favorable 3.6% compared to an unfavorable 2.9% for the three months ended March 31, 2024, a decrease of 6.5 percentage points. The favorable attritional loss ratio - prior year for the three months ended March 31, 2025 was primarily driven by favorable development in specialty reinsurance classes and property and specialty insurance classes. In addition, casualty business protected by the LPT discussed in Note 6, Reinsurance, benefited from favorable development in the underlying reserves of $1.0 million, which was partially offset by a change in the deferred gain of $0.5 million, for a total net positive earnings impact of $0.5 million.

Catastrophe losses - current year and prior year were $29.0 million and $0.2 million for the three months ended March 31, 2025 and 2024, respectively. Catastrophe losses of $29.0 million for the three months ended March 31, 2025 were driven by the California wildfires. Catastrophe losses for the three months ended March 31, 2024 included $Nil current year losses and $0.2 million of unfavorable prior year development.

	For the Three Months Ended
Acquisition Costs · % of Net Premiums Earned
($ in thousands)	March 31,2025	March 31,2024	March 31,2025	March 31,2024	'25 vs '24point r
Property	$15,411	$11,536	33.7%	33.0%	0.7
Casualty	17,494	9,742	19.3%	13.4%	5.9
Specialty	29,885	26,442	28.7%	29.7%	(1.0)
Total	$62,790	$47,720	26.1%	24.2%	1.9

The acquisition cost ratio for the three months ended March 31, 2025 increased to 26.1%, compared to 24.2% for the three months ended March 31, 2024. The increase was primarily driven by casualty and property insurance classes, primarily due to higher profit commission costs on certain lines of business, partially offset by a decrease in specialty insurance classes.

Other Underwriting Expenses and Other Underwriting Expense Ratios

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Other underwriting expenses	$35,623	$31,203
Other underwriting expense ratio	13.0%	14.0%

Other underwriting expenses are general and administrative costs incurred by our reportable segments.

Other underwriting expenses for the three months ended March 31, 2025 were $35.6 million, an increase of $4.4 million, or 14.2%, compared to $31.2 million for the three months ended March 31, 2024. The increase was primarily driven by an increase in salary and compensation costs and an increased headcount as we continued to build out underwriting teams supporting the corresponding increase in premium volume, and certain growth related IT and professional costs.

The other underwriting expense ratios for the three months ended March 31, 2025 and 2024 decreased from 14.0% to 13.0% as a result of the growth in premium base.

Bermuda Segment

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Gross premiums written	$473,347	$401,100
Net premiums written	$374,900	$329,847
Net premiums earned	$258,361	$188,489
Third party fee income	330	3,892
Claims and Expenses
Losses and loss adjustment expenses	249,563	116,190
Acquisition costs	54,091	36,834
Other underwriting expenses	14,111	12,150
Underwriting income (loss)	$(59,074)	$27,207
Attritional losses - current year	$133,918	$110,098
Attritional losses - prior year development	(5,802)	6,119
Catastrophe losses - current year	130,663	—
Catastrophe losses - prior year development	(9,216)	(27)
Losses and loss adjustment expenses	$249,563	$116,190
Attritional loss ratio - current year	51.8%	58.4%
Attritional loss ratio - prior year development	(2.2)%	3.2%
Catastrophe loss ratio - current year	50.6%	0.0%
Catastrophe loss ratio - prior year development	(3.6)%	0.0%
Losses and loss adjustment expense ratio	96.6%	61.6%
Acquisition cost ratio	20.9%	19.5%
Other underwriting expense ratio	5.3%	4.4%
Combined ratio	122.8%	85.5%

Gross Premiums Written

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Property	$223,077	$190,472
Casualty	179,534	130,729
Specialty	70,736	79,899
Total	$473,347	$401,100

Gross premiums written increased by $72.2 million, or 18.0%, from $401.1 million for the three months ended March 31, 2024 to $473.3 million for the three months ended March 31, 2025. The increase was primarily driven by growth in both new and existing business in casualty and property reinsurance classes, including certain non-recurring reinstatement premiums related to the California wildfires. This was partially offset by a decrease in specialty reinsurance classes as a result of certain non-recurring reinstatement premiums for the three months ended March 31, 2024.

Net Premiums Earned

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Property	$95,468	$71,734
Casualty	127,104	86,181
Specialty	35,789	30,574
Total	$258,361	$188,489

Net premiums earned increased by $69.9 million, or 37.1%, from $188.5 million for the three months ended March 31, 2024 to $258.4 million for the three months ended March 31, 2025. The increase was primarily driven by new business and volume growth in our casualty and property reinsurance classes. The most significant drivers of this increase were general liability, professional liability, and property treaty and quota share business. Property reinsurance classes also increased as a result of certain non-recurring reinstatement premiums related to the California wildfires.

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Third party fee income	$330	$3,892

Third party fee income is generated by certain performance based management fees recognized by Ada Capital Management Limited for services provided to Ada Re, Ltd. and decreased by $3.6 million, from $3.9 million for the three months ended March 31, 2024 to $0.3 million for the three months ended March 31, 2025.

	For the Three Months Ended
($ in thousands)	Current year	% of net premiums earned	Prior year development	% of net premiums earned	Losses and loss adjustment expenses	% of net premiums earned
Attritional losses	$133,918	51.8%	$(5,802)	(2.2)%	$128,116	49.6%
Catastrophe losses	130,663	50.6%	(9,216)	(3.6)%	121,447	47.0%
Total	$264,581	102.4%	$(15,018)	(5.8)%	$249,563	96.6%
Attritional losses	$110,098	58.4%	$6,119	3.2%	$116,217	61.6%
Catastrophe losses	—	0.0%	(27)	0.0%	(27)	0.0%
Total	$110,098	58.4%	$6,092	3.2%	$116,190	61.6%

The loss ratio for the three months ended March 31, 2025 was 96.6%, compared to 61.6% for the three months ended March 31, 2024, an increase of 35.0 percentage points. The increase was primarily driven by a higher current year catastrophe loss ratio, partially offset by a lower current year attritional loss ratio and a favorable prior year development loss ratio for the three months ended March 31, 2025.

Attritional loss ratio - current year for the three months ended March 31, 2025 was 51.8% compared to 58.4% for the three months ended March 31, 2024, a decrease of 6.6 percentage points. The decrease was primarily driven by the absence of large losses for the three months ended March 31, 2025, compared to $26.1 million of losses arising from the Baltimore Bridge collapse, which impacted our insurance and reinsurance classes for the three months ended March 31, 2024.

Attritional loss ratio - prior year for the three months ended March 31, 2025 was a favorable 2.2%, compared to an unfavorable 3.2% for the three months ended March 31, 2024, a decrease of 5.4 percentage points. The favorable attritional loss ratio - prior year for the three months ended March 31, 2025 was primarily driven by favorable development in specialty and property reinsurance classes, partially offset by modest unfavorable development in certain casualty reinsurance classes.

Catastrophe losses - current year and prior year were $121.4 million and less than $0.1 million for the three months ended March 31, 2025 and 2024, respectively. Catastrophe losses for the three months ended March 31, 2025 were as a result of the California wildfires of $130.6 million, partially offset by favorable prior year development of $9.2 million. Catastrophe losses for the three months ended March 31, 2024 included $Nil current year losses and an insignificant movement on prior year.

	For the Three Months Ended
Acquisition Costs · % of Net Premiums Earned
($ in thousands)	March 31,2025	March 31,2024	March 31,2025	March 31,2024	'25 vs '24point r
Property	$12,489	$9,255	13.1%	12.9%	0.2
Casualty	33,581	21,134	26.4%	24.5%	1.9
Specialty	8,021	6,445	22.4%	21.1%	1.3
Total	$54,091	$36,834	20.9%	19.5%	1.4

The acquisition cost ratio for the three months ended March 31, 2025 increased to 20.9%, compared to 19.5% for the three months ended March 31, 2024. The increase was primarily driven by a change in the mix of business, including more proportional business written in our casualty reinsurance classes.

Other Underwriting Expenses and Other Underwriting Expense Ratios

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Other underwriting expenses	$14,111	$12,150
Other underwriting expense ratio	5.3%	4.4%

Other underwriting expenses are general and administrative costs incurred by our reportable segments.

Other underwriting expenses for the three months ended March 31, 2025 were $14.1 million, an increase of $2.0 million, or 16.1%, compared 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 an increased headcount as we continued to build out underwriting teams supporting the corresponding increase in premium volume.

The other underwriting expense ratio for the three months ended March 31, 2025 and 2024 increased from 4.4% to 5.3%, primarily as a result of reduced performance based management fees, partially off-set by growth in the premium base.

Corporate and Other

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - TSHF(1)	$203,961	$262,821
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other	63,759	5,168
	$267,720	$267,989
Net income (loss) attributable to non-controlling interest - TSHF	$100,394	$120,158

(1) Prior to non-controlling interest performance incentive allocation

TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of 5.5% and 8.3% for the three months ended March 31, 2025 and 2024, respectively.

For the three months ended March 31, 2025, TS Hamilton Fund experienced gains in single name equities trading within the equity market neutral vehicles STV, ESTV, and ATV. Gains in single name equities trading were led by the U.S., followed by East Asia. TS Hamilton Fund also experienced gains from macro trading within the systematic macro vehicle (FTV), the relative value macro vehicle (HTV), the scientific discretionary macro vehicle (NTV), and the relative value rates vehicle, (KTV). Gains in macro trading were led by commodities in FTV and equities in HTV.

For the three months ended March 31, 2024, gains in TS Hamilton Fund were led by macroeconomic trading in 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 STV, followed by non-U.S. equities within ESTV. Within ESTV, East Asia, Europe, Pan-America, and China all made positive contributions to returns, in decreasing order.

Net Foreign Exchange Gains (Losses)

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Net foreign exchange gains (losses)	$(2,529)	$(2,125)

Our functional currency is the U.S. Dollar. We may conduct routine underwriting operations or invest a portion of our cash and other investable assets in currencies other than U.S. Dollars. Consequently, we may incur foreign exchange gains and losses in our results of operations.

Foreign exchange losses of $2.5 million and $2.1 million for the three months ended March 31, 2025 and 2024, respectively, were primarily driven by the remeasurement of insurance-related assets and liabilities denominated in British Pounds, Euro, Japanese Yen, and Australian and Canadian Dollars.

Corporate Expenses

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Corporate expenses	$12,968	$11,502

Corporate expenses for the three months ended March 31, 2025 were $13.0 million, compared to $11.5 million for the three months ended March 31, 2024, an increase of $1.5 million. The increase was primarily driven by certain variable performance based compensation costs, partially offset by a lower Value Appreciation Pool expense.

Amortization of Intangible Assets

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Amortization of intangible assets	$3,890	$3,252

Amortization of intangible assets of $3.9 million and $3.3 million for the three months ended March 31, 2025 and 2024, respectively, relates to internally developed software and intangible assets acquired in a business combination. The increase in amortization expense is primarily driven by the incremental expense associated with additional technology projects.

Interest Expense

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Interest expense	$5,602	$5,708

Interest expense of $5.6 million and $5.7 million for the three months ended March 31, 2025 and 2024, respectively, relates to interest payments and certain administrative fees associated with our term loan and letter of credit facilities. The decrease in interest expense is primarily driven by the decrease in the Secured Overnight Financing Rate ("SOFR") which underlies the floating rate associated with the term loan.

Income Tax Expense (Benefit)

	For the Three Months Ended
	March 31,
($ in thousands)	2025	2024
Income tax expense (benefit)	$3,206	$592

Income tax expense for the three months ended March 31, 2025 was $3.2 million, compared to $0.6 million for the three months ended March 31, 2024, an increase of $2.6 million. Tax expense is primarily driven by withholding taxes on investment income from TS Hamilton Fund and income tax expense on earnings from our London, Dublin, and U.S. operations, partially offset by a decrease in valuation allowance.

On December 27, 2023, the Bermuda Government enacted a 15% corporate income tax that generally became 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 ("ETR") 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 ("ETA"), which is intended to provide a fair and equitable transition into the tax regime. As of March 31, 2025, the Company holds a deferred tax asset of $35.4 million on its balance sheet related to the ETA.

On January 15, 2025, the OECD issued additional guidance related to the calculation of income subject to taxation under Pillar 2. Specifically, it provided that for purposes of calculating Pillar 2 taxes, a deduction for the ETA will not be allowed in years after 2026. Accordingly, when Hamilton Group becomes subject to Pillar 2 taxation on its Bermuda earnings, expected in 2030, it is possible that a top-up tax liability will arise to the extent that it does not achieve a 15% minimum ETR on its Bermuda taxable earnings, excluding the ETA deduction. If Hamilton were to incur a Pillar 2 top-up tax on its Bermuda earnings, the liability would be recorded in the period and jurisdiction in which it is incurred.

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