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Hamilton Insurance Group, Ltd. Class B (HG)
NYSE:HG
RESEARCH TOOLSreports
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Hamilton Insurance Group, Ltd. Class B
(NYSE:HG)
76Outperform
Positive Factors
Credit Rating
A recent upgrade to 'A' by A.M. Best is expected to have a favorable impact on growth longer-term.
Growth Potential
Hamilton is well positioned to benefit from prevailing hard market conditions in both specialty insurance and reinsurance.
Market Conditions
Specialty market conditions for insurers have broadly been described as the 'best in decades,' 'best in a lifetime,' and a 'generational hard market.'
Negative Factors
Earnings Estimate
HG's 2025 EPS estimate is revised down due to higher Q1 cat load driven by CA fire losses.
Investment Income
RoE estimates are driven lower by reduced net investment income compared to earlier return levels.
Return on Equity
It will take investors time to look past HG's pre-'23 low-single-digit RoE track record, which was powered largely by investment income rather than a sub-100% combined ratio.
Hamilton Insurance Group, Ltd. Class B (HG) vs. S&P 500 (SPY)
Market Cap
$1.85B
Dividend YieldN/A
Average Volume (3M)595.57K
Price to Earnings (P/E)4.8
Beta (1Y)0.12
Revenue Growth57.67%
EPS Growth62.05%
CountryUS
Employees600
SectorFinancial
Sector Strength85
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)3.81
Shares Outstanding65,706,670
10 Day Avg. Volume410,687
30 Day Avg. Volume595,574
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.12
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit0.90
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.80Price Target Upside25.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Hamilton Insurance Group, Ltd. Class B Business Overview & Revenue Model
Company DescriptionHamilton Insurance Group, Ltd., through its subsidiaries, engages in underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property treaty reinsurance; and specialty reinsurance solutions, including accident and health, aviation, crisis management, financial lines, marine and energy, multiline specialty, and satellite reinsurance. It also provides accident and health, cyber, excess energy, environmental, financial lines, fine art and specie, kidnap and ransom, M&A, marine and energy liability, political risk, professional liability, property binders, property D&F, space, upstream energy, general and excess casualty, war and terrorism, allied medical, management liability, medical professionals, products liability and contractors, and small business casualty insurance plans. The company was incorporated in 2013 and is based in Pembroke, Bermuda with additional locations in Dublin, Ireland; London, United Kingdom; Miami, Florida; New York, New York; and Glen Allen, Virginia.
How the Company Makes MoneyHamilton Insurance Group makes money primarily through underwriting insurance and reinsurance policies. The company generates revenue by collecting premiums from policyholders in exchange for providing coverage against various risks. Additionally, Hamilton invests the premiums it collects into diversified financial instruments, generating investment income that contributes to its overall earnings. The company's revenue streams are further supported by strategic partnerships and collaborations within the insurance sector, enabling it to expand its market reach and enhance its product offerings. Key factors contributing to its earnings include effective risk management practices, competitive pricing strategies, and a focus on innovation and technology to improve operational efficiencies.
Hamilton Insurance Group, Ltd. Class B Financial Statement Overview
Summary
Hamilton Insurance Group exhibits a strong financial performance with marked improvements in revenue, profitability, and cash flow. The balance sheet reflects a healthy financial position, with no debt in the latest period. While the company is on a favorable growth trajectory, continuous attention to financial management and market conditions will be important to sustain this progress.Income Statement
Hamilton Insurance Group has demonstrated strong revenue growth with a significant increase from $1.23 billion in 2022 to $2.33 billion in 2024. The gross profit margin remains high, indicating efficient cost management. Net income has improved notably, transitioning from losses in 2022 to a solid profit in 2024, showcasing improved operational efficiency. However, attention should be paid to maintaining this growth trajectory amidst industry competition.85
Very Positive
Balance Sheet
The company shows a strong equity base with a consistent increase in stockholders' equity, implying financial stability. The absence of total debt in 2024 highlights a solid financial position and reduced financial risk. The equity ratio has improved, reflecting a stronger balance sheet. However, maintaining asset quality and managing liabilities effectively will be crucial for continued stability.80
Positive
Cash Flow
Hamilton Insurance Group has shown a robust increase in operating cash flow, indicating enhanced cash-generating ability. Free cash flow has also seen growth, supporting financial flexibility. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion. Continued focus on cash flow management will be vital to support growth and investment opportunities.78
Positive
| Breakdown | |||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 2.33B | 1.57B | 1.23B | 768.17M | Gross Profit |
| 2.31B | 1.56B | 1.23B | 768.17M | EBIT |
| 2.04B | 1.30B | 6.86M | -402.12M | EBITDA |
| 660.64M | 289.06M | 3.90M | -110.93M | Net Income Common Stockholders |
| 400.43M | 258.73M | -98.00M | -430.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 1.10B | 1.22B | 1.08B | 797.79M | Total Assets |
| 7.80B | 6.67B | 5.82B | 5.61B | Total Debt |
| 149.94M | 149.83M | 149.72M | 149.88M | Net Debt |
| -846.55M | -751.03M | -926.71M | -647.92M | Total Liabilities |
| 5.47B | 4.62B | 4.15B | 3.82B | Stockholders Equity |
| 2.33B | 2.05B | 1.66B | 1.79B |
| Cash Flow | Free Cash Flow | ||
| 759.30M | 283.15M | 190.93M | -560.42M | Operating Cash Flow |
| 759.30M | 283.15M | 190.93M | -406.96M | Investing Cash Flow |
| -184.16M | -652.09M | 133.10M | 517.06M | Financing Cash Flow |
| -362.69M | 59.02M | -69.62M | -276.00K |
Hamilton Insurance Group, Ltd. Class B Technical Analysis
Positive
18.17
Price Trends
19.54
Negative
19.23
Negative
18.75
Positive
Market Momentum
-0.34
Negative
49.90
Neutral
69.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HG, the sentiment is Positive. The current price of 18.17 is below the 20-day moving average (MA) of 18.32, below the 50-day MA of 19.54, and below the 200-day MA of 18.75, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 49.90 is Neutral, neither overbought nor oversold. The STOCH value of 69.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HG.
Hamilton Insurance Group, Ltd. Class B Risk Analysis
Hamilton Insurance Group, Ltd. Class B disclosed 80 risk factors in its most recent earnings report. Hamilton Insurance Group, Ltd. Class B reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hamilton Insurance Group, Ltd. Class B Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $11.54B | 7.55 | 16.30% | 0.66% | 32.10% | -30.52% | |
78 Outperform | $13.07B | 18.45 | 7.21% | 1.88% | 19.29% | -19.91% | |
76 Outperform | $1.85B | 4.77 | 18.30% | ― | 57.67% | 62.05% | |
71 Outperform | $2.60B | 16.04 | 8.71% | ― | -7.05% | -52.10% | |
70 Outperform | $1.86B | 16.93 | 4.63% | 2.48% | -32.79% | -94.89% | |
65 Neutral | $456.50M | 10.70 | 6.95% | ― | 7.75% | -49.93% | |
64 Neutral | $12.65B | 9.74 | 8.04% | 17044.64% | 12.65% | -5.11% |
* Financial Sector Average
Performance Comparison
HG
Hamilton Insurance Group, Ltd. Class B
18.85
4.56
31.91%
GLRE
Greenlight Capital Re
13.21
0.63
5.01%
RGA
Reinsurance Group
197.76
0.20
0.10%
RNR
Renaissancere Holdings
243.24
21.69
9.79%
SPNT
SiriusPoint
17.95
5.70
46.53%
FIHL
Fidelis Insurance Holdings Ltd.
16.65
-1.80
-9.76%
Hamilton Insurance Group, Ltd. Class B Earnings Call Summary
Earnings Call Date:Feb 26, 2025
(Q4-2024)
| % Change Since: -1.30%|
Next Earnings Date:May 07, 2025
Earnings Call Sentiment Positive
Hamilton Insurance Group demonstrated strong growth in premiums, net income, and investment returns in 2024, supported by strategic initiatives and favorable market conditions. The company also faced challenges from natural catastrophes and their impact on profitability, particularly in the fourth quarter. Overall, the highlights outweigh the lowlights, indicating a robust financial performance despite external challenges.Q4-2024 Updates
Positive Updates
Record Gross Premiums Written
Hamilton reported gross premiums written of over $2.4 billion in 2024, an increase of 24% over 2023.
Strong Net Income Growth
The company achieved a net income of $400 million, up 55% over the previous year, representing an 18.3% return on average equity.
Investment Performance
Total investment return was $360 million in 2024, with the Two Sigma Hamilton Fund contributing a 16.3% return.
Ratings Upgrade
Hamilton Re received an upgrade to A from A.M. Best and an initial published rating of A- from Fitch, enhancing opportunities for additional profitable business.
Favorable Reserve Development
2024 marked the eleventh consecutive year of favorable reserve development, with an increase in surplus above the external actuary's best estimate.
Negative Updates
Impact of Natural Catastrophes
Hamilton faced significant insured losses from natural catastrophes, including $88 million in catastrophe losses from events like Hurricane Helene and Hurricane Milton.
California Wildfire Loss Estimates
The estimated losses from the California wildfires are between $120 million and $150 million, which will impact the company's first quarter 2025 financial results.
Fourth Quarter Profitability Decline
Hamilton's net income for the fourth quarter of 2024 was $34 million, down from $127 million in the fourth quarter of 2023, with a lower annualized return on average equity of 5.8%.
Company Guidance
During the Hamilton Insurance Group earnings call for the fiscal year 2024, several key metrics and forward-looking statements were highlighted. The company reported gross premiums written of over $2.4 billion, a 24% increase from 2023, with a combined ratio of 91.3%, resulting in an underwriting income of nearly $150 million. Investment returns were exceptional, totaling $360 million, contributing to a net income of $400 million, an 18.3% return on average equity, and a 23.5% growth in book value per share. Hamilton's loss estimates for recent wildfires were between $120 million and $150 million, based on an industry insured loss range of $35 billion to $45 billion. The company achieved ratings upgrades from A.M. Best and Fitch, and repurchased 10.6 million shares at a cost of $138 million, boosting shareholder value. Looking ahead, Hamilton anticipates strong performance in 2025, with opportunities for growth in both their International and Bermuda segments, despite the challenges posed by natural catastrophes and competitive market conditions.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.