Hamilton Insurance Group, Ltd.
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
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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.
Jun 30, 2025 · Filed Aug 7, 2025
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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 | ||
|---|---|---|
| June 30, | ||
| ($ in thousands, except per share amounts) | 2025 | 2024 |
| Gross premiums written | $712,026 | $603,304 |
| Net premiums written | $556,314 | $475,068 |
| Net premiums earned | $511,163 | $418,764 |
| Third party fee income(1) | 5,014 | 5,989 |
| Claims and Expenses | ||
| Losses and loss adjustment expenses | 269,928 | 214,494 |
| Acquisition costs | 122,815 | 96,305 |
| Other underwriting expenses(2) | 55,975 | 48,655 |
| Underwriting income (loss)(3) | 67,459 | 65,299 |
| Net realized and unrealized gains (losses) on investments | 208,034 | 151,251 |
| Net investment income (loss)(4) | 21,067 | 13,720 |
| Total net realized and unrealized gains (losses) on investments and net investment income (loss) | 229,101 | 164,971 |
| Net foreign exchange gains (losses) | (4,513) | (1,782) |
| Corporate expenses(2) | 12,853 | 16,262 |
| Amortization of intangible assets | 4,004 | 3,317 |
| Interest expense | 4,729 | 6,031 |
| Income tax expense (benefit) | 2,675 | 2,496 |
| Net income (loss) | 267,786 | 200,382 |
| Net income (loss) attributable to non-controlling interest(5) | 80,371 | 69,297 |
| Net income (loss) attributable to common shareholders | $187,415 | $131,085 |
| Diluted income (loss) per share attributable to common shareholders | $1.79 | $1.20 |
| Key Ratios | ||
| Attritional loss ratio - current year | 53.0% | 51.6% |
| Attritional loss ratio - prior year development | (0.5)% | (0.4)% |
| Catastrophe loss ratio - current year | 1.9% | 0.0% |
| Catastrophe loss ratio - prior year development | (1.6)% | 0.0% |
| Loss and loss adjustment expense ratio | 52.8% | 51.2% |
| Acquisition cost ratio | 24.0% | 23.0% |
| Other underwriting expense ratio | 10.0% | 10.2% |
| Combined ratio | 86.8% | 84.4% |
| Return on average common shareholders' equity | 7.6% | 5.9% |
The following table summarizes book value per share and balance sheet data:
| ($ in thousands, except per share amounts) | As at | |
|---|---|---|
| Book Value | June 30,2025 | March 31,2025 |
| Tangible book value per common share | $24.65 | $22.69 |
| Change in tangible book value per common share | 8.6% | |
| Book value per common share | $25.55 | $23.59 |
| Change in book value per common share | 8.3% | |
| Balance Sheet Data | ||
| Total assets | $8,913,050 | $8,342.831 |
| Total shareholders' equity | $2,558,591 | $2,399.339 |
(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 $12.9 million, and $16.3 million for the three months ended June 30, 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 June 30, 2025 and 2024:
Gross premiums written Gross premiums written were $712.0 million and $603.3 million for the three months ended June 30, 2025 and 2024, respectively. The increase in gross premiums written was primarily driven by our reinsurance classes across casualty, specialty and property. We also saw growth in our casualty and property insurance classes. The increase was as a result of growth in both new and existing business for the three months ended June 30, 2025.
Underwriting results The combined ratio was 86.8% and 84.4% for the three months ended June 30, 2025 and 2024, respectively. The increase was primarily driven by an increase in the loss ratio and the acquisition cost ratio, partially offset by a decrease in the other underwriting expense ratio.
| For the Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| ($ 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 | $270,995 | 53.0% | $(2,616) | (0.5)% | $268,379 | 52.5% |
| Catastrophe losses | 9,917 | 1.9% | (8,368) | (1.6)% | 1,549 | 0.3% |
| Total | $280,912 | 54.9% | $(10,984) | (2.1)% | $269,928 | 52.8% |
| Attritional losses | $216,053 | 51.6% | $(1,591) | (0.4)% | $214,462 | 51.2% |
| Catastrophe losses | — | 0.0% | 32 | 0.0% | 32 | 0.0% |
| Total | $216,053 | 51.6% | $(1,559) | (0.4)% | $214,494 | 51.2% |
Attritional loss ratio - current year for the three months ended June 30, 2025 was 53.0% compared to 51.6% for the three months ended June 30, 2024, an increase of 1.4 percentage points. The increase was primarily driven by a change in business mix, including more casualty reinsurance business, and a specific large loss in our Bermuda segment's reinsurance classes.
Attritional loss ratio - prior year for the three months ended June 30, 2025 was a favorable 0.5% compared to a favorable 0.4% for the three months ended June 30, 2024, a decrease of 0.1 percentage points. The attritional loss ratio - prior year for the three months ended June 30, 2025 was primarily driven by favorable development in both our Bermuda and International property and specialty classes, partially offset by unfavorable development in certain Bermuda casualty 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 $2.9 million, which was partially offset by a change in the deferred gain of $2.2 million, for a total net positive earnings impact of $0.7 million. 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 LPT benefited from a change in the deferred gain of $1.0 million, partially offset by unfavorable development in the underlying reserves of $0.2 million, for a total net positive earnings impact of $0.8 million.
Catastrophe losses - current year and prior year development were $1.5 million and less than $0.1 million for the three months ended June 30, 2025 and 2024, respectively. Catastrophe losses for the three months ended June 30, 2025 were driven by severe convective storms ($9.9 million), partially offset by favorable prior year development of $8.4 million. Catastrophe losses for the three months ended June 30, 2024 included $Nil current year losses and an insignificant movement on prior year.
| For the Three Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Total net realized and unrealized gains (losses) on investments and net investment income (loss) - TSHF(1) | $167,457 | $145,183 |
| Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other | 61,644 | 19,788 |
| $229,101 | $164,971 | |
| Net income (loss) attributable to non-controlling interest - TSHF | $80,371 | $69,297 |
Total net realized and unrealized gains (losses) on investments and net investment income (loss) -TSHF, prior to non-controlling interest, returned income of $167.5 million and $145.2 million for the three months ended June 30, 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 $87.1 million and $75.9 million for the three months ended June 30, 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 4.4% and 4.3% for the three months ended June 30, 2025 and 2024, respectively.
For the three months ended June 30, 2025, TS Hamilton Fund experienced gains from single name equities trading within the equity market neutral vehicles STV, ESTV and ATV. Gains from single name equities trading were led by the U.S., followed by Europe. Gains in TS Hamilton Fund were partially offset by losses 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. Losses in macro trading were led by currencies in both HTV and FTV.
For the three months ended June 30, 2024, gains in TS Hamilton Fund 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 TS Hamilton Fund. Within FTV, equities and currencies made positive contributions to gains, while losses were experienced in commodities, fixed income and credit.
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other, returned income of $61.6 million and $19.8 million for the three months ended June 30, 2025 and 2024, respectively. Income for the three months ended June 30, 2025 was primarily driven by investment income on a larger portfolio of higher yielding assets and positive mark-to-market returns. 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.
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 | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Gross premiums written | $344,799 | $311,616 |
| Net premiums written | $258,089 | $234,305 |
| Net premiums earned | $253,209 | $215,643 |
| Third party fee income | 3,832 | 3,798 |
| Claims and Expenses | ||
| Losses and loss adjustment expenses | 124,733 | 112,884 |
| Acquisition costs | 65,683 | 53,157 |
| Other underwriting expenses | 39,507 | 33,972 |
| Underwriting income (loss) | $27,118 | $19,428 |
| Attritional losses - current year | $131,339 | $113,400 |
| Attritional losses - prior year development | (7,729) | (521) |
| Catastrophe losses - current year | 1,600 | — |
| Catastrophe losses - prior year development | (477) | 5 |
| Losses and loss adjustment expenses | $124,733 | $112,884 |
| Attritional loss ratio - current year | 51.9% | 52.5% |
| Attritional loss ratio - prior year development | (3.0)% | (0.2)% |
| Catastrophe loss ratio - current year | 0.6% | 0.0% |
| Catastrophe loss ratio - prior year development | (0.2)% | 0.0% |
| Losses and loss adjustment expense ratio | 49.3% | 52.3% |
| Acquisition cost ratio | 25.9% | 24.7% |
| Other underwriting expense ratio | 14.1% | 14.0% |
| Combined ratio | 89.3% | 91.0% |
| For the Three Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Property | $63,871 | $53,540 |
| Casualty | 140,441 | 132,129 |
| Specialty | 140,487 | 125,947 |
| Total | $344,799 | $311,616 |
Gross premiums written increased by $33.2 million, or 10.6%, from $311.6 million for the three months ended June 30, 2024 to $344.8 million for the three months ended June 30, 2025. The increase was primarily driven by growth in both existing and new business in property and casualty insurance classes and specialty reinsurance classes.
| For the Three Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Property | $43,706 | $32,689 |
| Casualty | 89,233 | 75,770 |
| Specialty | 120,270 | 107,184 |
| Total | $253,209 | $215,643 |
Net premiums earned increased by $37.6 million, or 17.4%, from $215.6 million for the three months ended June 30, 2024 to $253.2 million for the three months ended June 30, 2025. The increase was primarily driven by growth in our casualty insurance, specialty reinsurance and property insurance classes. Casualty insurance growth was primarily driven by U.S. excess and surplus lines and professional lines; specialty reinsurance growth was primarily driven by surety and treaty reinsurance; and property insurance growth was primarily driven by property binder business.
| For the Three Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Third party fee income | $3,832 | $3,798 |
Third party fee income was $3.8 million for each of the three months ended June 30, 2025 and 2024. The fees are primarily driven by consortium fees and syndicate management fees. Effective July 1, 2025, the management of the third party syndicate was novated from Hamilton Managing Agency to another Lloyd's managing agency. This ends the Company's management of third party syndicates.
| For the Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| ($ 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 | $131,339 | 51.9% | $(7,729) | (3.0)% | $123,610 | 48.9% |
| Catastrophe losses | 1,600 | 0.6% | (477) | (0.2)% | 1,123 | 0.4% |
| Total | $132,939 | 52.5% | $(8,206) | (3.2)% | $124,733 | 49.3% |
| Attritional losses | $113,400 | 52.5% | $(521) | (0.2)% | $112,879 | 52.3% |
| Catastrophe losses | — | 0.0% | 5 | 0.0% | 5 | 0.0% |
| Total | $113,400 | 52.5% | $(516) | (0.2)% | $112,884 | 52.3% |
Attritional loss ratio - current year for the three months ended June 30, 2025 was 51.9% compared to 52.5% for the three months ended June 30, 2024, a decrease of 0.6 percentage points.
Attritional loss ratio - prior year for the three months ended June 30, 2025 was a favorable 3.0% compared to a favorable 0.2% for the three months ended June 30, 2024, a decrease of 2.8 percentage points. The favorable attritional loss ratio - prior year for the three months ended June 30, 2025 was primarily driven by favorable development in property insurance, specialty reinsurance and casualty insurance classes, partially offset by modest unfavorable development in casualty reinsurance classes. In addition, casualty business protected by the LPT discussed in Note 6, Reinsurance, benefited from favorable development in the underlying reserves of $2.9 million, which was partially offset by a change in the deferred gain of $2.2 million, for a total net positive earnings impact of $0.7 million.
Catastrophe losses - current year and prior year were $1.1 million and less than $0.1 million for the three months ended June 30, 2025 and 2024, respectively. Catastrophe losses for the three months ended June 30, 2025 were driven by severe convective storms ($1.6 million), partially offset by favorable prior year development of $0.5 million. Catastrophe losses for the three months ended June 30, 2024 included $Nil current year losses and an insignificant movement on prior year development.
| For the Three Months Ended | |||||
|---|---|---|---|---|---|
| Acquisition Costs · % of Net Premiums Earned | |||||
| ($ in thousands) | June 30,2025 | June 30,2024 | June 30,2025 | June 30,2024 | '25 vs '24point r |
| Property | $14,964 | $10,854 | 34.2% | 33.2% | 1.0 |
| Casualty | 17,099 | 12,470 | 19.2% | 16.5% | 2.7 |
| Specialty | 33,620 | 29,833 | 28.0% | 27.8% | 0.2 |
| Total | $65,683 | $53,157 | 25.9% | 24.7% | 1.2 |
The acquisition cost ratio for the three months ended June 30, 2025 increased to 25.9%, compared to 24.7% for the three months ended June 30, 2024. Theincrease was primarily driven by casualty and property insurance classes and specialty reinsurance classes, primarily due to higher profit commission costs on certain lines of business and a change in business mix.
| For the Three Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Other underwriting expenses | $39,507 | $33,972 |
| Other underwriting expense ratio | 14.1% | 14.0% |
Other underwriting expenses for the three months ended June 30, 2025 were $39.5 million, an increase of $5.5 million, or 16.3%, compared to $34.0 million for the three months ended June 30, 2024. The increase was primarily driven by an increase in salary and compensation costs and an increased headcount as we continued to build out underwriting teams supporting the corresponding increase in premium volume.
The other underwriting expense ratios for the three months ended June 30, 2025 and 2024 were 14.1% and 14.0%, respectively.
Bermuda Segment
| For the Three Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Gross premiums written | $367,227 | $291,688 |
| Net premiums written | $298,225 | $240,763 |
| Net premiums earned | $257,954 | $203,121 |
| Third party fee income | 1,182 | 2,191 |
| Claims and Expenses | ||
| Losses and loss adjustment expenses | 145,195 | 101,610 |
| Acquisition costs | 57,132 | 43,148 |
| Other underwriting expenses | 16,468 | 14,683 |
| Underwriting income (loss) | $40,341 | $45,871 |
| Attritional losses - current year | $139,656 | $102,653 |
| Attritional losses - prior year development | 5,113 | (1,070) |
| Catastrophe losses - current year | 8,317 | — |
| Catastrophe losses - prior year development | (7,891) | 27 |
| Losses and loss adjustment expenses | $145,195 | $101,610 |
| Attritional loss ratio - current year | 54.2% | 50.5% |
| Attritional loss ratio - prior year development | 2.0% | (0.5)% |
| Catastrophe loss ratio - current year | 3.2% | 0.0% |
| Catastrophe loss ratio - prior year development | (3.1)% | 0.0% |
| Losses and loss adjustment expense ratio | 56.3% | 50.0% |
| Acquisition cost ratio | 22.1% | 21.2% |
| Other underwriting expense ratio | 5.9% | 6.2% |
| Combined ratio | 84.3% | 77.4% |
| For the Three Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Property | $143,617 | $135,021 |
| Casualty | 182,005 | 123,498 |
| Specialty | 41,605 | 33,169 |
| Total | $367,227 | $291,688 |
Gross premiums written increased by $75.5 million, or 25.9%, from $291.7 million for the three months ended June 30, 2024 to $367.2 million for the three months ended June 30, 2025. The increase was primarily driven by growth in both new and existing business in casualty reinsurance and property and specialty reinsurance classes.
| For the Three Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Property | $80,313 | $73,864 |
| Casualty | 142,814 | 99,467 |
| Specialty | 34,827 | 29,790 |
| Total | $257,954 | $203,121 |
Net premiums earned increased by $54.8 million, or 27.0%, from $203.1 million for the three months ended June 30, 2024 to $258.0 million for the three months ended June 30, 2025. The increase was primarily driven by new business and volume growth in our casualty reinsurance classes and property and specialty reinsurance classes. The most significant drivers of this increase were general liability, professional liability, financial lines and property treaty and quota share business.
| For the Three Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Third party fee income | $1,182 | $2,191 |
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 $1.0 million, from $2.2 million for the three months ended June 30, 2024 to $1.2 million for the three months ended June 30, 2025.
| For the Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| ($ 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 | $139,656 | 54.2% | $5,113 | 2.0% | $144,769 | 56.2% |
| Catastrophe losses | 8,317 | 3.2% | (7,891) | (3.1)% | 426 | 0.1% |
| Total | $147,973 | 57.4% | $(2,778) | (1.1)% | $145,195 | 56.3% |
| Attritional losses | $102,653 | 50.5% | $(1,070) | (0.5)% | $101,583 | 50.0% |
| Catastrophe losses | — | 0.0% | 27 | 0.0% | 27 | 0.0% |
| Total | $102,653 | 50.5% | $(1,043) | (0.5)% | $101,610 | 50.0% |
Attritional loss ratio - current year for the three months ended June 30, 2025 was 54.2% compared to 50.5% for the three months ended June 30, 2024, an increase of 3.7 percentage points. The increase was primarily driven by a change in business mix, including more proportional casualty reinsurance business, and a specific large loss in specialty reinsurance.
Attritional loss ratio - prior year for the three months ended June 30, 2025 was an unfavorable 2.0%, compared to a favorable 0.5% for the three months ended June 30, 2024, an increase of 2.5 percentage points. The unfavorable attritional loss ratio - prior year for the three months ended June 30, 2025 was primarily driven by unfavorable development in casualty reinsurance classes, including discontinued lines of business and additional information on certain large losses, partially offset by favorable development in specialty and property reinsurance classes and casualty and property insurance classes.
Catastrophe losses - current year and prior year were $0.4 million and less than $0.1 million for the three months ended June 30, 2025 and 2024, respectively. Catastrophe losses for the three months ended June 30, 2025 were driven by severe convective storms ($8.3 million), partially offset by favorable prior year development of $7.9 million. Catastrophe losses for the three months ended June 30, 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) | June 30,2025 | June 30,2024 | June 30,2025 | June 30,2024 | '25 vs '24point r |
| Property | $11,454 | $9,510 | 14.3% | 12.9% | 1.4 |
| Casualty | 37,248 | 25,545 | 26.1% | 25.7% | 0.4 |
| Specialty | 8,430 | 8,093 | 24.2% | 27.2% | (3.0) |
| Total | $57,132 | $43,148 | 22.1% | 21.2% | 0.9 |
The acquisition cost ratio for the three months ended June 30, 2025 increased to 22.1%, compared to 21.2% for the three months ended June 30, 2024. The increase was primarily driven by achange in business mix, including more proportional business written in our casualty reinsurance classes.
| For the Three Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Other underwriting expenses | $16,468 | $14,683 |
| Other underwriting expense ratio | 5.9% | 6.2% |
Other underwriting expenses for the three months ended June 30, 2025 were $16.5 million, an increase of $1.8 million, or 12.2%, compared to $14.7 million for the three months ended June 30, 2024. The increase was primarily driven by an increase in salary and compensation costs and an increased headcount as we continued to build out underwriting teams supporting the corresponding increase in premium volume.
The other underwriting expense ratio for the three months ended June 30, 2025 and 2024 decreased from 6.2% to 5.9%, primarily as a result of growth in the premium base, partially offset by reduced performance based management fees.
Corporate and Other
| For the Three Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Total net realized and unrealized gains (losses) on investments and net investment income (loss) - TSHF(1) | $167,457 | $145,183 |
| Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other | 61,644 | 19,788 |
| $229,101 | $164,971 | |
| Net income (loss) attributable to non-controlling interest - TSHF | $80,371 | $69,297 |
Total net realized and unrealized gains (losses) on investments and net investment income (loss) -TSHF, prior to non-controlling interest, returned income of $167.5 million and $145.2 million for the three months ended June 30, 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 $87.1 million and $75.9 million for the three months ended June 30, 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 4.4% and 4.3% for the three months ended June 30, 2025 and 2024, respectively.
For the three months ended June 30, 2025, TS Hamilton Fund experienced gains from single name equities trading within the equity market neutral vehicles STV, ESTV and ATV. Gains from single name equities trading were led by the U.S., followed by Europe. Gains in TS Hamilton Fund were partially offset by losses 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. Losses in macro trading were led by currencies in both HTV and FTV.
For the three months ended June 30, 2024, gains in TS Hamilton Fund 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 TS Hamilton Fund. Within FTV, equities and currencies made positive contributions to gains, while losses were experienced in commodities, fixed income and credit.
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other, returned income of $61.6 million and $19.8 million for the three months ended June 30, 2025 and 2024, respectively. Income for the three months ended June 30, 2025 was primarily driven by investment income on a larger portfolio of higher yielding assets and positive mark-to-market returns. Income for the three months ended June 30, 2024 was primarily driven by investment income on higher yielding assets, partially offset by negative price returns as a result of rising U.S. treasury interest rates.
Net Foreign Exchange Gains (Losses)
| For the Three Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Net foreign exchange gains (losses) | $(4,513) | $(1,782) |
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 $4.5 million and $1.8 million for the three months ended June 30, 2025 and 2024, respectively, were primarily driven by the remeasurement of insurance-related assets and liabilities denominated in British Pounds, Euro, Japanese Yen, and Australian and Canadian Dollars. The foreign exchange losses were primarily driven by the weakening of the U.S. Dollar during the three months ended June 30, 2025.
Corporate Expenses
| For the Three Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Corporate expenses | $12,853 | $16,262 |
Corporate expenses for the three months ended June 30, 2025 were $12.9 million, compared to $16.3 million for the three months ended June 30, 2024, a decrease of $3.4 million. The decrease was primarily driven by lower Value Appreciation Pool ("VAP") expenses and professional fees.
Amortization of Intangible Assets
| For the Three Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Amortization of intangible assets | $4,004 | $3,317 |
Amortization of intangible assets of $4.0 million and $3.3 million for the three months ended June 30, 2025 and 2024, respectively, relates to internally developed software and intangible assets acquired in a business combination. The increase in amortization expense is primarily driven by the incremental expense associated with additional technology projects.
Interest Expense
| For the Three Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Interest expense | $4,729 | $6,031 |
Interest expense of $4.7 million and $6.0 million for the three months ended June 30, 2025 and 2024, respectively, relates to interest payments and certain administrative fees associated with our term loan and letter of credit facilities. The decrease in interest expense is primarily driven by the decrease in the Secured Overnight Financing Rate ("SOFR") which underlies the floating rate associated with the term loan.
Income Tax Expense (Benefit)
| For the Three Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Income tax expense (benefit) | $2,675 | $2,496 |
Income tax expense (benefit) for the three months ended June 30, 2025 was $2.7 million, compared to $2.5 million for the three months ended June 30, 2024, an increase of $0.2 million. Tax expense is primarily driven by withholding taxes on investment income from TS Hamilton Fund and income tax expense on earnings from our London, Dublin, and U.S. operations, partially offset by a decrease in valuation allowance.
Consolidated Results of Operations
The following is a comparison of selected data for our consolidated results of operations:
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands, except per share amounts) | 2025 | 2024 |
| Gross premiums written | $1,555,332 | $1,325,245 |
| Net premiums written | $1,160,189 | $989,948 |
| Net premiums earned | $1,010,091 | $804,067 |
| Third party fee income(1) | 9,676 | 13,470 |
| Claims and Expenses | ||
| Losses and loss adjustment expenses | 665,163 | 446,846 |
| Acquisition costs | 239,696 | 180,858 |
| Other underwriting expenses(2) | 105,709 | 92,008 |
| Underwriting income (loss)(3) | 9,199 | 97,825 |
| Net realized and unrealized gains (losses) on investments | 456,828 | 406,622 |
| Net investment income (loss)(4) | 39,994 | 26,338 |
| Total net realized and unrealized gains (losses) on investments and net investment income (loss) | 496,822 | 432,960 |
| Net foreign exchange gains (losses) | (7,039) | (3,911) |
| Corporate expenses(2) | 25,821 | 27,764 |
| Amortization of intangible assets | 7,895 | 6,569 |
| Interest expense | 10,331 | 11,738 |
| Income tax expense (benefit) | 5,882 | 3,089 |
| Net income (loss) | 449,053 | 477,714 |
| Net income (loss) attributable to non-controlling interest(5) | 180,765 | 189,455 |
| Net income (loss) attributable to common shareholders | $268,288 | $288,259 |
| Diluted income (loss) per share attributable to common shareholders | $2.56 | $2.57 |
| Key Ratios | ||
| Attritional loss ratio - current year | 52.5% | 54.3% |
| Attritional loss ratio - prior year development | (1.7)% | 1.3% |
| Catastrophe loss ratio - current year | 16.8% | 0.0% |
| Catastrophe loss ratio - prior year development | (1.7)% | 0.0% |
| Loss and loss adjustment expense ratio | 65.9% | 55.6% |
| Acquisition cost ratio | 23.7% | 22.5% |
| Other underwriting expense ratio | 9.5% | 9.8% |
| Combined ratio | 99.1% | 87.9% |
| Return on average common shareholders' equity | 11.0% | 13.4% |
The following table summarizes book value per share and balance sheet data:
| ($ in thousands, except per share amounts) | As at | |
|---|---|---|
| Book Value | June 30,2025 | December 31,2024 |
| Tangible book value per common share | $24.65 | $22.03 |
| Change in tangible book value per common share | 11.9% | |
| Book value per common share | $25.55 | $22.95 |
| Change in book value per common share | 11.3% | |
| Balance Sheet Data | ||
| Total assets | $8,913,050 | $7,796,033 |
| Total shareholders' equity | $2,558,591 | $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 $25.8 million and $27.8 million for the six months ended June 30, 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 six months ended June 30, 2025 and 2024:
Gross premiums written Gross premiums written were $1.6 billion and $1.3 billion for the six months ended June 30, 2025 and 2024, respectively. The increase in gross premiums written was primarily driven by our casualty and property reinsurance classes and property, casualty and specialty insurance classes. The increase was as a result of growth in both new and existing business and an increase in reinstatement premiums for the six months ended June 30, 2025.
Underwriting results The combined ratio was 99.1% and 87.9% for the six months ended June 30, 2025 and 2024, respectively. The increase was primarily driven by an increase in the catastrophe loss ratio and the acquisition cost ratio, partially offset by a decrease in the attritional loss ratio and the other underwriting expense ratio.
| For the Six Months Ended | ||||||
|---|---|---|---|---|---|---|
| ($ 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 | $530,234 | 52.5% | $(17,108) | (1.7)% | $513,126 | 50.8% |
| Catastrophe losses | 169,621 | 16.8% | (17,584) | (1.7)% | 152,037 | 15.1% |
| Total | $699,855 | 69.3% | $(34,692) | (3.4)% | $665,163 | 65.9% |
| Attritional losses | $436,348 | 54.3% | $10,301 | 1.3% | $446,649 | 55.6% |
| Catastrophe losses | — | 0.0% | 197 | 0.0% | 197 | 0.0% |
| Total | $436,348 | 54.3% | $10,498 | 1.3% | $446,846 | 55.6% |
Attritional loss ratio - current year for the six months ended June 30, 2025 was 52.5% compared to 54.3% for the six months ended June 30, 2024, a decrease of 1.8 percentage points. The decrease was primarily driven by the reduced impact of large losses for the six months ended June 30, 2025, compared to 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 for the six months ended June 30, 2024, partially offset by a change in business mix, including an increase incasualty reinsurance business in our Bermuda segment.
Attritional loss ratio - prior year for the six months ended June 30, 2025 was a favorable 1.7% compared to an unfavorable 1.3% for the six months ended June 30, 2024, a decrease of 3.0 percentage points. The attritional loss ratio - prior year for the six months ended June 30, 2025 was primarily driven by favorable development in both our Bermuda and International specialty and property classes, partially offset by unfavorable development in certain Bermuda casualty classes. In addition, casualty business protected by the LPT discussed in Note 6, Reinsurance, benefited from favorable development in the underlying reserves of $3.9 million, which was partially offset by a change in the deferred gain of $2.7 million, for a total net positive earnings impact of $1.2 million. The 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 a $1.9 million change in 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.
Catastrophe losses - current year and prior year development were $152.0 million and $0.2 million for the six months ended June 30, 2025 and 2024, respectively. Catastrophe losses for the six months ended June 30, 2025 were driven by the California wildfires ($159.7 million) and severe convective storms ($9.9 million), partially offset by favorable prior year development of $17.6 million. Catastrophe losses for the six months ended June 30, 2024 included $Nil current year losses and an insignificant movement on prior year.
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Total net realized and unrealized gains (losses) on investments and net investment income (loss) - TSHF(1) | $371,418 | $408,002 |
| Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other | 125,404 | 24,958 |
| $496,822 | $432,960 | |
| Net income (loss) attributable to non-controlling interest - TSHF | $180,765 | $189,455 |
Total net realized and unrealized gains (losses) on investments and net investment income (loss) -TSHF, prior to non-controlling interest, returned income of $371.4 million and $408.0 million for the six months ended June 30, 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 $190.7 million and $218.5 million for the six months ended June 30, 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 10.1% and 12.9% for the six months ended June 30, 2025 and 2024, respectively.
For the six months ended June 30, 2025, TS Hamilton Fund experienced gains from single name equities trading within the equity market neutral vehicles STV, ESTV and ATV. Gains from 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 scientific discretionary macro vehicle, NTV. Gains in TS Hamilton Fund were partially offset by losses from macro trading within the systematic macro vehicle, FTV, the relative value macro vehicle, HTV, and the relative value rates vehicle, KTV. Losses in macro trading were led by currencies in both HTV and FTV.
For the six months ended June 30, 2024, gains in TS Hamilton Fund 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. TS Hamilton Fund 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.
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other returned income of $125.4 million and $25.0 million for the six months ended June 30, 2025 and 2024, respectively. Income for the six months ended June 30, 2025 was primarily driven by investment income on a larger portfolio of higher yielding assets and positive mark-to-market returns. Income for the six months ended June 30, 2024 was primarily driven by investment income on higher yielding assets, partially offset by negative price returns as a result of rising U.S. treasury interest rates.
International Segment
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Gross premiums written | $714,757 | $632,457 |
| Net premiums written | $487,063 | $419,338 |
| Net premiums earned | $493,775 | $412,456 |
| Third party fee income | 8,164 | 7,387 |
| Claims and Expenses | ||
| Losses and loss adjustment expenses | 270,405 | 229,046 |
| Acquisition costs | 128,473 | 100,876 |
| Other underwriting expenses | 75,130 | 65,174 |
| Underwriting income (loss) | $27,931 | $24,747 |
| Attritional losses - current year | $256,660 | $223,598 |
| Attritional losses - prior year development | (16,419) | 5,251 |
| Catastrophe losses - current year | 30,641 | — |
| Catastrophe losses - prior year development | (477) | 197 |
| Losses and loss adjustment expenses | $270,405 | $229,046 |
| Attritional loss ratio - current year | 52.0% | 54.2% |
| Attritional loss ratio - prior year development | (3.3)% | 1.3% |
| Catastrophe loss ratio - current year | 6.2% | 0.0% |
| Catastrophe loss ratio - prior year development | (0.1)% | 0.0% |
| Losses and loss adjustment expense ratio | 54.8% | 55.5% |
| Acquisition cost ratio | 26.0% | 24.5% |
| Other underwriting expense ratio | 13.6% | 14.0% |
| Combined ratio | 94.4% | 94.0% |
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Property | $118,397 | $91,244 |
| Casualty | 276,003 | 253,294 |
| Specialty | 320,357 | 287,919 |
| Total | $714,757 | $632,457 |
Gross premiums written increased by $82.3 million, or 13.0%, from $632.5 million for the six months ended June 30, 2024 to $714.8 million for the six months ended June 30, 2025. The increase was primarily driven by growth in both existing and new business in property, specialty and casualty insurance classes and specialty reinsurance classes.
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Property | $89,410 | $67,664 |
| Casualty | 179,801 | 148,698 |
| Specialty | 224,564 | 196,094 |
| Total | $493,775 | $412,456 |
Net premiums earned increased by $81.3 million, or 19.7%, from $412.5 million for the six months ended June 30, 2024 to $493.8 million for the six months ended June 30, 2025. The increase was primarily driven by growth in our casualty, property and specialty insurance classes and specialty reinsurance classes. Casualty insurance growth was primarily driven by U.S. excess and surplus lines, mergers & acquisitions and professional lines; property insurance growth was primarily driven by property binder business; specialty insurance growth was primarily driven by accident & health and marine & energy; and specialty reinsurance growth was primarily driven by surety and treaty reinsurance.
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Third party fee income | $8,164 | $7,387 |
Third party fee income increased by $0.8 million, or 10.5%, from $7.4 million for the six months ended June 30, 2024 to $8.2 million for the six months ended June 30, 2025. The increase was primarily due to an increase in syndicate management fees. Effective July 1, 2025, the management of the third party syndicate was novated from Hamilton Managing Agency to another Lloyd's managing agency. This ends the Company's management of third party syndicates.
| For the Six Months Ended | ||||||
|---|---|---|---|---|---|---|
| ($ 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 | $256,660 | 52.0% | $(16,419) | (3.3)% | $240,241 | 48.7% |
| Catastrophe losses | 30,641 | 6.2% | (477) | (0.1)% | 30,164 | 6.1% |
| Total | $287,301 | 58.2% | $(16,896) | (3.4)% | $270,405 | 54.8% |
| Attritional losses | $223,598 | 54.2% | $5,251 | 1.3% | $228,849 | 55.5% |
| Catastrophe losses | — | 0.0% | 197 | 0.0% | 197 | 0.0% |
| Total | $223,598 | 54.2% | $5,448 | 1.3% | $229,046 | 55.5% |
Attritional loss ratio - current year for the six months ended June 30, 2025 was 52.0% compared to 54.2% for the six months ended June 30, 2024, a decrease of 2.2 percentage points. The decrease was primarily driven by the absence of specific large losses for the six months ended June 30, 2025, compared to losses of $11.8 million arising from the Baltimore Bridge collapse, which impacted our insurance and reinsurance classes for thesix months ended June 30, 2024.
Attritional loss ratio - prior year for the six months ended June 30, 2025 wasa favorable 3.3% compared to an unfavorable 1.3% for the six months ended June 30, 2024, a decrease of 4.6 percentage points. The favorable attritional loss ratio - prior year for thesix months ended June 30, 2025 was primarily driven by favorable development in property insurance and specialty reinsurance classes and casualty and specialty insurance classes, partially offset by modest unfavorable development in casualty reinsurance classes. In addition, casualty business protected by the LPT discussed in Note 6, Reinsurance, benefited from favorable development in the underlying reserves of $3.9 million, which was partially offset by a change in the deferred gain of $2.7 million, for a total net positive earnings impact of $1.2 million.
Catastrophe losses - current year and prior year were $30.2 million and $0.2 million for thesix months ended June 30, 2025 and 2024, respectively. Catastrophe losses for the six months ended June 30, 2025 were driven by the California wildfires ($29.0 million) and severe convective storms ($1.6 million), partially offset by favorable prior year development of $0.4 million. Catastrophe losses for the six months ended June 30, 2024 were driven by modest unfavorable prior year development of $0.2 million.
| For the Six Months Ended | |||||
|---|---|---|---|---|---|
| Acquisition Costs · % of Net Premiums Earned | |||||
| ($ in thousands) | June 30,2025 | June 30,2024 | June 30,2025 | June 30,2024 | '25 vs '24point r |
| Property | $30,375 | $22,389 | 34.0% | 33.1% | 0.9 |
| Casualty | 34,593 | 22,212 | 19.2% | 14.9% | 4.3 |
| Specialty | 63,505 | 56,275 | 28.3% | 28.7% | (0.4) |
| Total | $128,473 | $100,876 | 26.0% | 24.5% | 1.5 |
The acquisition cost ratio for the six months ended June 30, 2025 was 26.0%, compared to 24.5% for the six months ended June 30, 2024, an increase of 1.5 percentage points. Theincrease was primarily driven by casualty and property insurance classes and specialty reinsurance classes, primarily due to higher profit commission costs on certain lines of business and a change in business mix.
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Other underwriting expenses | $75,130 | $65,174 |
| Other underwriting expense ratio | 13.6% | 14.0% |
Other underwriting expenses were $75.1 million for the six months ended June 30, 2025, an increase of $10.0 million, or 15.3%, compared to $65.2 million for the six months ended June 30, 2024. The increase was primarily driven by an increase in salary and compensation costs and an increased headcount as we continued to build out underwriting teams supporting the corresponding increase in premium volume.
The other underwriting expense ratios for the six months ended June 30, 2025 and 2024 decreased from 14.0% to 13.6%, primarily as a result of growth in the premium base.
Bermuda Segment
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Gross premiums written | $840,575 | $692,788 |
| Net premiums written | $673,126 | $570,610 |
| Net premiums earned | $516,316 | $391,611 |
| Third party fee income | 1,512 | 6,083 |
| Claims and Expenses | ||
| Losses and loss adjustment expenses | 394,758 | 217,800 |
| Acquisition costs | 111,223 | 79,982 |
| Other underwriting expenses | 30,579 | 26,834 |
| Underwriting income (loss) | $(18,732) | $73,078 |
| Attritional losses - current year | $273,574 | $212,750 |
| Attritional losses - prior year development | (689) | 5,050 |
| Catastrophe losses - current year | 138,980 | — |
| Catastrophe losses - prior year development | (17,107) | — |
| Losses and loss adjustment expenses | $394,758 | $217,800 |
| Attritional loss ratio - current year | 53.0% | 54.3% |
| Attritional loss ratio - prior year development | (0.1)% | 1.3% |
| Catastrophe loss ratio - current year | 26.9% | 0.0% |
| Catastrophe loss ratio - prior year development | (3.3)% | 0.0% |
| Losses and loss adjustment expense ratio | 76.5% | 55.6% |
| Acquisition cost ratio | 21.5% | 20.4% |
| Other underwriting expense ratio | 5.6% | 5.3% |
| Combined ratio | 103.6% | 81.3% |
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Property | $366,694 | $325,493 |
| Casualty | 361,539 | 254,226 |
| Specialty | 112,342 | 113,069 |
| Total | $840,575 | $692,788 |
Gross premiums written increased by $147.8 million, or 21.3%, from $692.8 million for the six months ended June 30, 2024 to $840.6 million for the six months ended June 30, 2025. The increase was primarily driven by growth in both new and existing business in casualty and property reinsurance classes, including certain non-recurring reinstatement premiums related to the California wildfires.
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Property | $175,782 | $145,598 |
| Casualty | 269,918 | 185,649 |
| Specialty | 70,616 | 60,364 |
| Total | $516,316 | $391,611 |
Net premiums earned increased by $124.7 million, or 31.8%, from $391.6 million for the six months ended June 30, 2024 to $516.3 million for the six months ended June 30, 2025. The increase was primarily driven by new business and volume growth in our casualty, property and specialty reinsurance classes. The most significant drivers of this increase were general liability, professional liability, property treaty and quota share business and financial lines. Property reinsurance classes also increased as a result of certain non-recurring reinstatement premiums related to the California wildfires.
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Third party fee income | $1,512 | $6,083 |
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 $4.6 million, from $6.1 million for the six months ended June 30, 2024 to $1.5 million for the six months ended June 30, 2025.
| For the Six Months Ended | ||||||
|---|---|---|---|---|---|---|
| ($ 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 | $273,574 | 53.0% | $(689) | (0.1)% | $272,885 | 52.9% |
| Catastrophe losses | 138,980 | 26.9% | (17,107) | (3.3)% | 121,873 | 23.6% |
| Total | $412,554 | 79.9% | $(17,796) | (3.4)% | $394,758 | 76.5% |
| Attritional losses | $212,750 | 54.3% | $5,050 | 1.3% | $217,800 | 55.6% |
| Catastrophe losses | — | 0.0% | — | 0.0% | — | 0.0% |
| Total | $212,750 | 54.3% | $5,050 | 1.3% | $217,800 | 55.6% |
Attritional loss ratio - current year for the six months ended June 30, 2025 was 53.0% compared to 54.3% for the six months ended June 30, 2024, a decrease of 1.3 percentage points. The decrease was primarily driven by the reduced impact of specific large losses for the six months ended June 30, 2025, compared to losses of $26.1 million arising from the Baltimore Bridge collapse, which impacted our insurance and reinsurance classes for the six months ended June 30, 2024, partially offset by a change in business mix, including an increase in casualty reinsurance business.
Attritional loss ratio - prior year for the six months ended June 30, 2025 was a favorable 0.1% compared to an unfavorable 1.3% for the six months ended June 30, 2024, a decrease of 1.4 percentage points. The favorable attritional loss ratio - prior year for the six months ended June 30, 2025 was primarily driven by favorable development in specialty and property reinsurance classes and casualty and property insurance classes, partially offset by unfavorable development in certain casualty reinsurance classes including discontinued lines of business and additional information on certain large losses.
Catastrophe losses - current year and prior year were $121.9 million and $Nil for the six months ended June 30, 2025 and 2024, respectively. Catastrophe losses for the six months ended June 30, 2025 were driven by the California wildfires ($130.7 million) and severe convective storms ($8.3 million), partially offset by favorable prior year development of $17.1 million.
| For the Six Months Ended | |||||
|---|---|---|---|---|---|
| Acquisition Costs · % of Net Premiums Earned | |||||
| ($ in thousands) | June 30,2025 | June 30,2024 | June 30,2025 | June 30,2024 | '25 vs '24point r |
| Property | $23,943 | $18,765 | 13.6% | 12.9% | 0.7 |
| Casualty | 70,829 | 46,680 | 26.2% | 25.1% | 1.1 |
| Specialty | 16,451 | 14,537 | 23.3% | 24.1% | (0.8) |
| Total | $111,223 | $79,982 | 21.5% | 20.4% | 1.1 |
The acquisition cost ratio for the six months ended June 30, 2025 was 21.5%, compared to 20.4% for the six months ended June 30, 2024. The increase was primarily driven by a change in business mix, including more proportional business written in our casualty reinsurance classes.
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Other underwriting expenses | $30,579 | $26,834 |
| Other underwriting expense ratio | 5.6% | 5.3% |
Other underwriting expenses for the six months ended June 30, 2025 were $30.6 million, an increase of $3.7 million, or 14.0%, compared to $26.8 million for the six months ended June 30, 2024. The increase was primarily driven by an increase in salary and compensation costs and an increased headcount as we continued to build out underwriting teams supporting the corresponding increase in premium volume.
The other underwriting expense ratio for the six months ended June 30, 2025 and 2024 increased from 5.3% to 5.6%, primarily as a result of reduced performance based management fees, partially offset by growth in the premium base.
Corporate and Other
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Total net realized and unrealized gains (losses) on investments and net investment income (loss) - TSHF(1) | $371,418 | $408,002 |
| Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other | 125,404 | 24,958 |
| $496,822 | $432,960 | |
| Net income (loss) attributable to non-controlling interest - TSHF | $180,765 | $189,455 |
Total net realized and unrealized gains (losses) on investments and net investment income (loss) -TSHF, prior to non-controlling interest, returned income of $371.4 million and $408.0 million for the six months ended June 30, 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 $190.7 million and $218.5 million for the six months ended June 30, 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 10.1% and 12.9% for the six months ended June 30, 2025 and 2024, respectively.
For the six months ended June 30, 2025, TS Hamilton Fund experienced gains from single name equities trading within the equity market neutral vehicles STV, ESTV and ATV. Gains from 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 scientific discretionary macro vehicle, NTV. Gains in TS Hamilton Fund were partially offset by losses from macro trading within the systematic macro vehicle, FTV, the relative value macro vehicle, HTV, and the relative value rates vehicle, KTV. Losses in macro trading were led by currencies in both HTV and FTV.
For the six months ended June 30, 2024, gains in TS Hamilton Fund 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. TS Hamilton Fund 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.
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other returned income of $125.4 million and $25.0 million for the six months ended June 30, 2025 and 2024, respectively. Income for the six months ended June 30, 2025 was primarily driven by investment income on a larger portfolio of higher yielding assets and positive mark-to-market returns. Income for the six months ended June 30, 2024 was primarily driven by investment income on higher yielding assets, partially offset by negative price returns as a result of rising U.S. treasury interest rates.
Net Foreign Exchange Gains (Losses)
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Net foreign exchange gains (losses) | $(7,039) | $(3,911) |
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 $7.0 million and $3.9 million for the six months ended June 30, 2025 and 2024, respectively, were primarily driven by the remeasurement of insurance-related assets and liabilities denominated in British Pounds, Euro, Japanese Yen, and Australian and Canadian Dollars. The foreign exchange losses were primarily driven by the weakening of the U.S. Dollar during the six months ended June 30, 2025.
Corporate Expenses
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Corporate expenses | $25,821 | $27,764 |
Corporate expenses for the six months ended June 30, 2025 were $25.8 million, compared to $27.8 million for the six months ended June 30, 2024, a decrease of $1.9 million. The decrease was primarily driven by lower VAP expenses and professional fees, partially offset by an increase in certain variable performance based compensation costs.
Amortization of Intangible Assets
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Amortization of intangible assets | $7,895 | $6,569 |
Amortization of intangible assets of $7.9 million and $6.6 million for the six months ended June 30, 2025 and 2024, respectively, relates to internally developed software and intangible assets acquired in a business combination. The increase in amortization expense is primarily driven by the incremental expense associated with additional technology projects.
Interest Expense
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Interest expense | $10,331 | $11,738 |
Interest expense of $10.3 million and $11.7 million for the six months ended June 30, 2025 and 2024, respectively, relates to interest payments and certain administrative fees associated with our term loan and letter of credit facilities. The decrease in interest expense was primarily driven by the decrease in the SOFR, which underlies the floating rate associated with the term loan.
Income Tax Expense (Benefit)
| For the Six Months Ended | ||
|---|---|---|
| June 30, | ||
| ($ in thousands) | 2025 | 2024 |
| Income tax expense (benefit) | $5,882 | $3,089 |
Income tax expense for the six months ended June 30, 2025 was $5.9 million, compared to $3.1 million for the six months ended June 30, 2024, an increase of $2.8 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.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.