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Hamilton Insurance Group, Ltd. Class B (HG)
NYSE:HG
US Market
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Hamilton Insurance Group, Ltd. Class B (HG) AI Stock Analysis

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HG

Hamilton Insurance Group, Ltd. Class B

(NYSE:HG)

Rating:80Outperform
Price Target:
$24.50
▲(15.13%Upside)
Hamilton Insurance Group exhibits strong financial health and attractive valuation, with robust financial performance and strategic corporate moves. While technical indicators are stable, the company's handling of catastrophe losses and expense management will be crucial for sustained growth. The overall score reflects a solid investment profile with potential for appreciation.
Positive Factors
Book Value Growth
Hamilton continues to grow book value through a combination of accretive share repurchases below book value and superior investment returns.
Investment Gains
Net investment gains of $249 million were well above consensus of $59 million, due to strong performance.
Investment Performance
HG's investment portfolio returns have materially outperformed most peers with a higher-than-peer average allocation to Two Sigma.
Negative Factors
Pricing Power Pressures
The competitive pricing-power environment within the large-account marketplace where HG has a meaningful presence continues to show signs of soft pricing power pressures.
Profit Margins
Deteriorating profit margins as pricing turns negative in HG's sectors are driving downwards EPS revisions.
Valuation Confidence
There is no confidence in valuation multiple expansion due to continued soft pricing-power pressures.

Hamilton Insurance Group, Ltd. Class B (HG) vs. SPDR S&P 500 ETF (SPY)

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 the collection of premiums from its insurance and reinsurance operations. The company underwrites a variety of risks and earns premium income from clients seeking coverage. Additionally, Hamilton Insurance Group invests the premiums collected into various asset classes, generating investment income which contributes to its overall revenue. Key revenue streams include property and casualty insurance premiums, specialty insurance premiums, and reinsurance premiums. The company's profitability is further influenced by its ability to accurately assess risks and manage claims efficiently. Strategic partnerships and collaborations with brokers and other insurance entities may also play a role in expanding its market reach and enhancing revenue generation.

Hamilton Insurance Group, Ltd. Class B Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 10.78%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
Hamilton Insurance Group reported strong investment returns and premium growth, supported by a recent A.M. Best rating upgrade. However, the company faced significant catastrophe losses from the California wildfires, which impacted their combined ratio and resulted in an underwriting loss.
Q1-2025 Updates
Positive Updates
Strong Investment Performance
Hamilton achieved a total investment return of $167 million, offsetting catastrophe losses, with a 5.5% gain from the Two Sigma Hamilton Fund for Q1 2025.
Robust Premium Growth
Gross premiums written increased by 17% year-over-year to $843 million, driven by 18% growth in Bermuda and 15% growth in International segments.
Positive Net Income and Strong Return on Equity
Hamilton reported a net income of $81 million, with a 13.7% annualized return on average equity in Q1 2025.
A.M. Best Rating Upgrade Impact
The A.M. Best rating upgrade to A facilitated $40 million in new business and increased opportunities in the casualty segment.
Negative Updates
Significant Catastrophe Losses
The California wildfires led to $143 million in net losses, contributing to a catastrophe loss ratio of 30.2% for the quarter.
Increased Combined Ratio
The combined ratio increased to 111.6% from 91.5% due to catastrophe losses, resulting in an underwriting loss of $58 million.
Higher Expense Ratio
The expense ratio increased by 1.2 points to 32.4% from 31.2% due to higher acquisition costs and changes in business mix.
Company Guidance
During the Hamilton Insurance Group earnings call for the first quarter of 2025, the company reported a profitable quarter despite global insured catastrophe losses exceeding $55 billion, largely due to the California wildfires. Hamilton's catastrophe loss ratio was 30.2%, with a net loss estimate of $143 million from the wildfires, which fell within the previously announced range of $120 million to $150 million. The attritional loss ratio was stable at 51.9%, and gross premiums written increased by 17%. Investment returns were significant at $167 million, offsetting catastrophe losses, and the net income of $81 million represented a 13.7% annualized return on average equity. Both Bermuda and International segments experienced double-digit growth, with notable increases in casualty and property classes. The company maintained a strong balance sheet with total assets of $8.3 billion and shareholders' equity of $2.4 billion. Hamilton also completed a $10 million share repurchase during the quarter, with $112 million remaining under its authorization.

Hamilton Insurance Group, Ltd. Class B Financial Statement Overview

Summary
Hamilton Insurance Group exhibits strong financial performance with significant revenue growth and improved profitability. The balance sheet is robust with no debt, and cash flow generation remains strong. Continued focus on financial management is vital to sustain growth.
Income Statement
85
Very Positive
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.
Balance Sheet
80
Positive
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.
Cash Flow
78
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.00B2.33B1.57B1.23B768.17M
Gross Profit1.43B91.00M1.56B1.23B768.17M
EBITDA992.97M644.18M289.06M3.90M-110.93M
Net Income424.52M400.43M258.73M-98.00M-430.64M
Balance Sheet
Total Assets8.34B7.80B6.67B5.82B5.61B
Cash, Cash Equivalents and Short-Term Investments913.06M1.10B1.22B1.08B797.79M
Total Debt0.00149.94M149.83M149.72M149.88M
Total Liabilities5.90B5.47B4.62B4.15B3.82B
Stockholders Equity2.40B2.33B2.05B1.66B1.79B
Cash Flow
Free Cash Flow636.00M759.30M283.15M190.93M-560.42M
Operating Cash Flow636.00M759.30M283.15M190.93M-406.96M
Investing Cash Flow-528.87M-184.16M-652.09M133.10M517.06M
Financing Cash Flow-372.56M-362.69M59.02M-69.62M-276.00K

Hamilton Insurance Group, Ltd. Class B Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.28
Price Trends
50DMA
21.19
Positive
100DMA
20.44
Positive
200DMA
19.54
Positive
Market Momentum
MACD
0.08
Negative
RSI
51.81
Neutral
STOCH
80.42
Negative
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 21.28 is above the 20-day moving average (MA) of 21.21, above the 50-day MA of 21.19, and above the 200-day MA of 19.54, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 51.81 is Neutral, neither overbought nor oversold. The STOCH value of 80.42 is Negative, 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 3 New Risks
1.
The use or anticipated use of AI technologies, including generative AI, by us or third parties, may increase or create new operational risks. Q4, 2024
2.
New laws and regulations may affect our ability to compete effectively. Q4, 2024
3.
We may be subject to significant legal, governmental or regulatory proceedings. Q4, 2024

Hamilton Insurance Group, Ltd. Class B Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
86
Outperform
$11.63B6.0118.75%0.64%23.19%-22.42%
80
Outperform
$2.19B6.6814.07%35.36%-3.34%
76
Outperform
$12.81B16.627.60%1.84%1.47%-7.47%
71
Outperform
$2.28B19.697.20%-5.57%-44.54%
68
Neutral
$17.10B11.199.70%3.58%11.11%-4.55%
66
Neutral
$1.70B17.57-0.42%2.56%23.28%-103.35%
65
Neutral
$456.82M10.057.04%5.21%-57.04%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HG
Hamilton Insurance Group, Ltd. Class B
21.55
4.42
25.80%
GLRE
Greenlight Capital Re
13.27
-0.25
-1.85%
RGA
Reinsurance Group
196.55
-21.28
-9.77%
RNR
Renaissancere Holdings
247.26
24.17
10.83%
SPNT
SiriusPoint
19.79
5.41
37.62%
FIHL
Fidelis Insurance Holdings Ltd.
15.60
-1.47
-8.61%

Hamilton Insurance Group, Ltd. Class B Corporate Events

Executive/Board Changes
Hamilton Insurance Appoints New Chief Information Officer
Positive
Jul 17, 2025

On July 17, 2025, Hamilton Insurance Group, Ltd. announced the appointment of Raymond Karrenbauer as the new Chief Information Officer, effective September 15, 2025. Karrenbauer, who brings extensive experience in technology and the insurance industry, will succeed Venkat Krishnamoorthy, who is retiring after significant contributions to the company since 2019. This leadership change is expected to enhance Hamilton’s technological capabilities and continue delivering value to stakeholders.

The most recent analyst rating on (HG) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Hamilton Insurance Group, Ltd. Class B stock, see the HG Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Hamilton Insurance Announces Leadership Changes Effective September
Neutral
Jun 17, 2025

On June 17, 2025, Hamilton Insurance Group, Ltd. announced significant leadership changes effective September 1, 2025. Megan Graves, CEO of Hamilton Re, will retire by the end of the year, and Adrian Daws will succeed her, with Alex Baker taking over Daws’ previous role as CEO of Hamilton Global Specialty. Tim Duffin will become Group Chief Underwriting Officer starting January 1, 2026. These appointments highlight Hamilton’s strategy to leverage internal talent to maintain its growth and success in the global specialty insurance and reinsurance market.

The most recent analyst rating on (HG) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Hamilton Insurance Group, Ltd. Class B stock, see the HG Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Hamilton Insurance Secures New Credit Agreements
Positive
Jun 10, 2025

On June 10, 2025, Hamilton Insurance Group, Ltd. entered into a $450 million Sixth Amended and Restated Credit Agreement and a $150 million Amended and Restated Term Loan Credit Agreement with several financial institutions. These agreements, which replace previous credit and term loan agreements, are intended to provide the company with enhanced financial flexibility for working capital, general corporate purposes, and refinancing existing indebtedness. The new agreements include financial covenants and interest rates tied to the company’s long-term issuer default rating, reflecting a strategic move to strengthen its financial position and support its operational needs.

The most recent analyst rating on (HG) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Hamilton Insurance Group, Ltd. Class B stock, see the HG Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Hamilton Insurance Group Confirms Director Elections
Neutral
May 19, 2025

On March 17, 2025, Hamilton Insurance Group, Ltd. Class B held its annual meeting where shareholders voted on several proposals. The election of eleven Class B directors was confirmed, with notable figures such as Giuseppina Albo and John J. Gauthier receiving significant support. Additionally, the fiscal 2024 compensation for executive officers was approved on an advisory basis, and Ernst & Young Ltd. was appointed as the independent registered public accounting firm for 2025.

The most recent analyst rating on (HG) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Hamilton Insurance Group, Ltd. Class B stock, see the HG Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 18, 2025