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美国
证券交易委员会
华盛顿特区20549
__________________________________
表格 10-Q
__________________________________
☒
根据第13条或第15(d)条提交的季度报告
1934年证券交易所法
截至2024年6月30日季度结束 2024年9月30日
或
☐
根据第13或15(d)条交易所之过渡报告
1934年证券交易所法
在从 到 的过渡期间
委员会文件号码： 001-41862
__________________________________
汉密尔顿保险集团有限公司。
(根据其章程指定的注册人正式名称)
__________________________________
百慕达
98-1153847
(成立地或组织其他管辖区)
（联邦税号）
Wellesley House North，一楼, 彭布罗克90号彼茨湾路
彭布罗克 Hm 08
百慕达
(主要行政办公室地址及邮政编码)

(441) 405-5200
注册人电话号码，包括区码
根据1934年证券交易法案第12(b)条登记的证券：
每种类别的名称
交易标的（s）
每个注册交易所的名称
b类普通股，每股面值$0.01
HG
纽约证券交易所
请勾选表明以下事项：(1)在过去12个月（或对于要求提交这类报告期间更短的情况）内，公司已提交交易所法案第13条或15(d)条要求提交的所有报告；并且 (2) 在过去90天内，公司一直受到这些提交要求的约束。 ☒ 是 ☐ 否


请以勾选符号表示，是否在过去12个月以来（或在注册人被要求提交和发帖此类文件的更短期间内）根据《S-t法规》第405条第232.405条提交了每个交互数据文件。
☒ 是 ☐ 否
请勾选该申报人是否为大型快速申报人、快速申报人、非快速申报人、小型报告公司或新兴成长型公司。有关「大型快速申报人」、「快速申报人」、「小型报告公司」和「新兴成长型公司」的定义，请参阅交易所法案第1202条。
大型加速归档人
☐
加速归档人
☐
非加速归档人
☒
小型报告公司
☐
新兴成长型企业
☐
如果是新兴成长公司，请勾选，以示公司选择不使用交易所法案第13(a)条所提供的任何新或修订财务会计准则的延长过渡期。 ☐
用勾选表示是否申报人是空壳公司（依照法案规则120亿2条定义）。☐ 是 ☒ 否
截至2024年10月31日，登记人持有的B类普通股数量为 64,196,974.


汉密尔顿保险集团有限公司。

目录

页面

1

有关前瞻性陈述的特别提示

汉密尔顿保险集团公司（"季度报告"）的10-Q表格包括根据美国1995年私人证券诉讼改革法案的安全港条款 "前瞻性陈述"。 可以通过使用"相信"、"预期"、"可能"、"将"、"目标"、"应该"、"能够"、"将"、"寻求"、"打算"、"计划"、"考虑"、"估计"或"预期"等表示法来识别前瞻性陈述，有关我们的策略、计划、预测或意向。 这些前瞻性陈述出现在许多地方并涉及我们的行业板块、成长策略、市场定位、未来运营、利润率、盈利能力、资本支出、流动性和资本资源以及其他财务和运营信息。 根据其性质，前瞻性陈述：仅反映其发表之日的情况；并非历史事实陈述或未来表现保证；并受到难以预测或量化的风险、不确定性、假设或环境变化的影响。 我们的期望、信仰和预测均表达出诚意，我们认为对其有合理基础。 但是，不能保证管理层的期望、信仰和预测将会实现，实际结果可能与前瞻性陈述中表达或暗示的内容有很大差异。

本文中提到，有许多风险、不确定因素和其他重要因素可能导致我们的实际结果与此处包含的前瞻性陈述大不相同。这些风险、不确定因素和其他重要因素包括，但不限于，『风险因素』和『财务状况和营运结果的管理层讨论』中所述的风险、不确定因素和因素，这些均包含在截至2023年12月31日止年度的公司年度报告，即『10-K表格』中，以及公司随后向证券交易委员会提交的其他后续定期报告及以下内容：

•我们的营运状况和财务状况可能受不可预测的灾难性事件、全球气候变化或新兴索赔和索赔问题的不利影响。
•如果我们未能准确评估承保风险，我们的储备不足以支付实际损失，我们对风险的模型或评估和价格设定不正确，或者我们失去重要的经纪人关系，我们的业务可能会受到重大不利影响。
•保险和再保险业务在历史上是循环的，我们产品的定价和条款可能下降，这将影响我们的盈利能力和维护或增加保费的能力。
•我们拥有重要的海外业务，使我们承受著特定额外风险，其中包括外汇风险和政治风险。
•我们无法控制《Two Sigma Hamilton Fund, LLC（“TS Hamilton基金”）》投资组合的配置和/或表现，其表现取决于其投资经理Two Sigma Investments, LP（“Two Sigma”）选择和管理适当的投资，我们的资本账户提款能力有限。
•Two Sigma Principals, LLC，Two Sigma及其各自的联属公司存在潜在利益冲突可能对我们产生不利影响。
•Two Sigma的历史表现未必预示TS Hamilton基金投资组合的未来结果或我们的未来结果。
•我们需要能够管理宏观经济条件带来的风险，这些风险来自地缘政治和全球经济事件，包括公共卫生危机、当前或预期的军事冲突、恐怖主义、制裁、能源价格上升、通胀和利率以及其他全球事件；
•我们能够成功竞争更多的竞争对手，以及与再保险和保险行业合并相关的风险；
•评级机构可能对我们进行降级、潜在降级或其他负面行动的风险；
•我们依赖关键高管，包括受百慕大就业限制影响可能损失百慕大基地人员，以及无法吸引合适人才，特别是在竞争激烈的招聘环境中；
•我们依赖可能无法以商业上可接受的条件取得的信用证明之设施；
•我们未来可能需要额外资本，而这些资本可能对我们不利或根本无法取得；
•我们的子公司保险牌照可能会被暂停或撤销的风险；
•我们的投资策略相关风险，这些风险可能比竞争对手面临的风险更大；
2

•监管环境变化以及公司未来可能面对更严格的监管审查；
•再保险业务周期性下滑；
•运营失败、信息系统故障或未能保护客户信息保密，包括由服务业者，或由第三方或我们联属公司因违约、错误或遗漏而导致损失；
•我们是一家控股公司，没有直接营运，我们的保险和再保险子公司支付给我们的分红和其他分配受到法律限制；
•与我们识别和执行增长机会或完成交易，按计划进行或实现我们收购或其他投资预期利益的风险；
•由于税法变动或其他原因，我们有可能被美国联邦所得税、百慕大税或其他税收征收；
•可能将我们和/或我们的任何附属公司界定为被动外国投资公司，或PFIC；
•我们有可能根据美国外国账户税收法案或FATCA规定成为美国扣缴和信息报告要求的对象；
•作为一家公开公司经营将增加我们的成本，我们的管理层将需要花费大量时间来遵守公开公司的规定;
•如果我们发现实质缺陷且无法补救此类实质缺陷，或无法实现并维持有效的内部控制，我们的营运结果和财务状况可能受到影响，我们的B类普通股价格可能受到负面影响;
•我们的B类普通股没有先前的公开市场，这意味著我们的股价可能波动，并且我们的组织文件中包含的反收购条款可能延迟管理变更;
•由于现有股东未来出售股份，我们的B类普通股市价可能下降的风险;
•适用的保险法可能使难以实现我们公司的控制权转让;
•投资者可能在美国对我们执行诉讼程序或强制执行判决会遇到困难;

可能有其他因素可能导致我们的实际结果与前瞻性陈述有实质差异，包括在10-k表格的〝风险因素〞部分和本季度报告中的〝管理讨论及财务状况和营运结果分析〞中披露的因素。您应该在这些风险和不确定性的背景下评估此处所作的所有前瞻性陈述。

您应充分阅读并理解这些资讯，并了解实际未来结果可能与期望大不相同。我们提醒您，上述风险、不确定性和其他因素可能并未包含所有对您重要的风险、不确定性和其他因素。此外，我们无法保证我们将实现我们期望或预期的结果、利益或发展，甚至如果实现，也可能不会产生预期的后果或影响我们或我们的业务的方式。这里包含的所有前瞻性陈述仅适用于本日期，并且已完全被这些警语陈述明确限制。我们不承诺公开更新或修改任何前瞻性陈述以反映随后事件或情况。



3


第一部分. 财务信息
项目1. 基本报表

未经审核之总体财务基本报表指数

页面


4

汉密尔顿保险集团有限公司。
未经审核的简化合并资产负债表
($ 以千计，每股信息除外)
九月三十日
2024		十二月三十一日
2023
资产
固定到期投资，以公平价值计算
（2024 年摊销成本：$2,306,168; 2023: $1,867,499)
$2,320,184 $1,831,268 
短期投资，以公平价值计算（2024 年摊销成本：$506,244; 2023: $427,437)
507,947 428,878 
投资于两个西格玛基金，以公平价值计算（成本 2024 年：$829,606; 2023: $770,191)
932,787 851,470 
投资总额
3,760,918 3,111,616 
现金及现金等值
957,372 794,509 
限制现金及现金等值
93,883 106,351 
应收保费
885,744 658,363 
已缴损失可回收
146,008 145,202 
延期收购成本
205,953 156,895 
未偿还的损失及损失调整开支可回收
1,190,465 1,161,077 
已售出投资的应收帐款
39,079 42,419 
预付再保险
260,174 194,306 
无形资产
94,441 90,996 
其他资产
192,510 209,621 
总资产
$7,826,547 $6,671,355 
负债、非控制权益及股东权益
负债
保留损失及损失调整开支
$3,434,800 $3,030,037 
未赚取的保费
1,192,071 911,222 
应付再保险余额
334,511 272,310 
购买投资的应付帐款
172,905 66,606 
定期贷款，扣除发行成本
149,916 149,830 
应付帐款及累计费用
168,658 186,887 
对相关人士的应付帐款
— 6,480 
负债总额
5,452,861 4,623,372 
非控制权益 — TS 汉密尔顿基金
60,060 133 
股东权益
普通股：
A 类，授权（2024 年： 26,944,807 和二零二三年： 28,644,807），面值 $0.01;
已发行及未偿还 (2024 年: 17,820,078 和二零二三年： 28,644,807)
178 286 
B 类，授权（2024 年： 79,677,932 和二零二三年： 72,337,352），面值 $0.01;
已发行及未偿还 (2024 年: 63,668,995 和二零二三年： 56,036,067)
637 560 
C 类，授权（2024 年： 19,903,649 和二零二三年： 25,544,229），面值 $0.01;
已发行及未偿还 (2024 年: 19,903,649 和二零二三年： 25,544,229)
199 255 
额外支付资本
1,172,331 1,249,817 
累积其他综合损失
(4,441)(4,441)
保留盈利
1,144,722 801,373 
股东权益总额
2,313,626 2,047,850 
负债总额、非控制权益及股东权益
$7,826,547 $6,671,355 

请参阅附注资料 未经审核的简明报告 合并基本报表。
5
汉密尔顿保险集团有限公司。
未经核数的简明 综合损益表及综合损益（亏损）表
截至2024年和2023年9月30日的三个月和九个月








结束于三个月的期间九个月结束了
九月三十日，九月三十日，
（以千元为单位，除每股信息外）
2024202320242023
收益
已核写保费$553,401 $474,123 $1,878,645 $1,517,247 
再保险保费转出(75,505)(90,557)(410,802)(400,475)
已发出的净保费477,896 383,566 1,467,843 1,116,772 
未赚得保费净变化(29,101)(46,530)(214,981)(164,374)
已赢取保费净额448,795 337,036 1,252,862 952,398 
投资方面实现和未实现的收益（亏损）48,228 47,343 454,851 101,881 
净投资收益(损失)17,330 8,069 43,667 17,719 
投资获利（亏损）净额及投资收益净额65,558 55,412 498,518 119,600 
其他收入（损失）4,464 2,386 17,934 7,838 
净外汇收益（亏损）(5,973)1,432 (9,883)(3,953)
总收益512,844 396,266 1,759,431 1,075,883 
费用
亏损及损失调整费用273,632 191,577 720,478 519,554 
收购成本102,201 78,537 283,059 220,532 
总部及行政费用62,392 63,035 182,164 158,075 
营业无形资产摊销5,204 2,794 11,773 7,869 
利息费用5,351 5,288 17,090 16,007 
总支出448,780 341,231 1,214,564 922,037 
应税前收益（亏损）64,064 55,035 544,867 153,846 
所得税费用（利益） 3,029 2,387 6,118 6,908 
净利润（损失）61,035 52,648 538,749 146,938 
归属于非控股利益的净利润（亏损）(17,215)9,065 172,240 15,076 
归属于普通股股东的净利润（亏损）及其他综合收益（亏损）$78,250 $43,583 $366,509 $131,862 
每股数据
归属于普通股股东的每股基本收益（亏损）
$0.77 $0.42 $3.45 $1.27 
归属于普通股股东的每股稀释收益（亏损）
$0.74 $0.41 $3.33 $1.26 





请参阅附带的注意事项 未经审核简明 合并财务报表。
6
汉密尔顿保险集团有限公司。
未经核数的简明 股东权益合并报表
截至2024年和2023年9月30日的三个月和九个月
结束于三个月的期间九个月结束了
九月三十日，九月三十日，
（以千元为单位）2024202320242023
普通股
期初余额
$1,019 $1,036 $1,101 $1,031 
发行普通股份
— 1 11 8 
普通股份的回购
(5)— (98)(2)
期末余额
1,014 1,037 1,014 1,037 
资本公积额额外增资
期初余额
1,171,585 1,124,566 1,249,817 1,120,242 
发行普通股份
— (1)386 (8)
普通股回购
(6,092)— (100,136)(1,776)
股份报酬支出
6,838 3,988 22,264 10,095 
期末余额
1,172,331 1,128,553 1,172,331 1,128,553 
其他综合损益（损失）累积额
期初与期末结余
(4,441)(4,441)(4,441)(4,441)
保留收益
期初余额
1,070,384 630,993 801,373 547,352 
净利润（损失）
61,035 52,648 538,749 146,938 
归属于非控股利益的净利润（亏损）
17,215 (9,065)(172,240)(15,076)
股份报酬支出— — — (4,169)
普通股回购
(3,912)— (23,160)(469)
Balance, end of period
1,144,722 674,576 1,144,722 674,576 
股东权益总额
$2,313,626 $1,799,725 $2,313,626 $1,799,725 

查看附注以获得更多资讯 未经审核的简明基本报表 合并基本报表。
7
汉密尔顿保险集团有限公司。
未经审核之现金流量表
截至2024年9月30日和2023年九个月结束时

九个月结束了
（以千元为单位）九月三十日，
2024		九月三十日，
2023
营运活动
净利润（损失）
$538,749 $146,938 
调整以便调和 净利润相对于营运活动现金提供者:
折旧与摊提
13,081 8,990 
股份报酬支出
22,264 10,095 
投资方面净实现（盈利）损失
(382,646)(32,363)
投资方面净未实现（盈利）损失变动
(72,205)(69,518)
其他事项
(11,786)1,330 
变动：
应收的保险费
(227,381)(166,372)
已支付损失可收回
(806)(47,659)
推迟的获得成本
(49,058)(36,167)
预付再保险
(65,868)(67,898)
未支付的损失和损失调整费可收回
(29,388)20,740 
其他资产
17,111 3,253 
储备用于损失和损失调整费用
404,763 92,547 
未赚保费
280,849 233,408 
应付再保险结余
62,201 123,634 
应付帐款、应付费用及其他
(24,667)26,711 
营运活动之净现金提供（使用）量
475,213 247,669 
投资活动
来自Two Sigma基金赎回的款项
2,129,185 1,821,046 
捐款给Two Sigma基金
(1,836,664)(1,954,119)
购买固定到期投资
(1,466,805)(809,646)
来自固定到期投资的销售、赎回和到期退还款项
1,032,664 418,677 
购买短期投资
(1,335,003)(1,078,631)
来自短期投资的销售收益
1,288,278 1,032,091 
投资售出应收款项的变动
3,340 (18,673)
购买投资的应付款项变动
106,299 69,741 
其他
(16,570)(11,425)
投资活动提供的（使用的）净现金
(95,276)(530,939)
融资活动
发行普通股份
11 8 
普通股回购
(123,394)(2,247)
额外实收资本的贡献
386 (8)
撤回非控制权益
(112,313)(15,066)
筹资活动提供的净现金
(235,310)(17,313)
汇率变动对现金及现金等价物及受限现金及现金等价物的影响
5,768 (3,093)
现金及现金等价物及受限现金及现金等价物的净增加（减少）
150,395 (303,676)
现金及现金等价物及受限现金及现金等价物，期初
900,860 1,207,203 
现金及现金等价物及受限现金及现金等价物，期末
$1,051,255 $903,527 
查看附注以获得更多资讯 未经审核的简明基本报表 合并基本报表。
8
汉密尔顿保险集团有限公司。
附注：未经查核之缩表合并财务报表注释。
1. 组织

汉密尔顿保险集团有限公司（「汉密尔顿集团」、「集团」或「公司」）为旗下控股公司，在2013年9月4日根据百慕达法律成立。2023年11月14日，该公司完成了其B类普通股初始公开发行（「IPO」），并在纽交所上市。

我们的百慕达业务由Hamilton Re, Ltd. ("Hamilton Re") 主导，该公司是在百慕达注册的第四级保险公司。Hamilton Re 在全球范围内提供财产、意外和专业保险和再保险。

Hamilton Re US是一个税务合伙关系，是根据Hamilton Re和其百慕达子公司Hamilton ILS Holdings Limited之间的安排而形成的。税务合伙关系被视为美国公司，用于美国税务目的，并向美国国内税务局注册，从分配给Hamilton Re US的资本所获得的承包和投资收入受到美国税务规定。

Ada Capital Management Limited（「ACML」），一家在百慕达成立并受监管的全资保险代理，被授权代表Ada Re, Ltd.（「Ada Re」）承保。

我们伦敦业务由汉密尔顿管理机构有限公司（"HMA"）组成，该公司是劳埃德保险公司（Lloyd’s）的管理机构，负责管理我们完全对齐的Syndicate 4000和第三方资助的Lloyd’s办事处。Syndicate 4000在劳埃德市场运营，以订阅的形式承保财产、意外和专业保险和再保险业务。

我们的都柏林业务由Hamilton Insurance Designated Activity Company ("HIDAC")构成，这是位于都柏林的一家保险公司，拥有一家在英国的分支机构，并在美国所有50个州皆拥有丰富的执照，包括超额和剩余保险以及再保险。

Hamilton Managing General Agency Americas LLC（"HMGA 美洲"）已在美国全境获得许可，并代表集团的伦敦、都柏林和百慕达业务进行承保，仅涉及Hamilton Re US部分，在美国提供通往伦敦市场、集团评级的爱尔兰承运人以及集团的百慕达资产负债表的渠道。

Hamilton Select 保险公司（「Hamilton Select」）是一家美国国内的超额和残余保险业务运营商，成立于特拉华州，并获准在所有50个州撰写超额和残余业务。

Two Sigma Hamilton Fund, LLC（"TS Hamilton Fund"）是一家特拉华有限责任公司。2013年，Hamilton Re与TS Hamilton Fund和Two Sigma Principals, LLC（"管理成员"）签署了一份有限责任公司协议，其中Two Sigma Principals, LLC是TS Hamilton Fund的管理成员。自2023年7月1日起，Hamilton Re已承诺对TS Hamilton Fund进行投资，金额最高为（i）$1.8十亿或（ii） 60％的Hamilton Group净有形资产（之前等于Hamilton Group的综合净有形资产最低的 95％）。TS Hamilton Fund已聘请了Two Sigma Investments, LP（"Two Sigma"），一家特拉华有限合伙公司，作为其投资经理。Two Sigma是一家注册于美国证券交易委员会的投资顾问，专门从事定量分析（请参见备注3， 投资 了解更多详细信息）。

未合并的相关方

Ada Re是一家由第三方投资者资助的特殊用途保险人，旨在为Hamilton集团和第三方转分保人提供完全抵押再保险和回溯再保险。

东信再保险发行了一项行业损失指数触发的灾难债券，为公司的营运平台提供多年风险转移能力，以保护美国和加拿大的飓风和地震风险。请参见附注7。 再保险，以获得更多详细信息。


9
汉密尔顿保险集团有限公司。
附注：未经查核之缩表合并财务报表注释。
2. 重要会计政策摘要

公司在2023年12月31日结束的年度报告Form 10-K中描述的重要会计政策未有任何实质变更，除非下文另有说明。
a.报告基础

这些未经审计的简明综合基本报表已根据美国普遍公认会计原则（"GAAP"）和《S-X法规第10条》的规定编制，用于揭示中期财务信息。因此，它们并不包括GAAP要求的完整基本报表中所需的所有信息和注脚。此外，年底资产负债表数据源自经审计的基本报表，但并未包含所有GAAP要求的披露。在管理层的意见中，这些未经审计的简明综合基本报表反映出根据普通循环性应计负债组成的所有调整，被认为对公司财务状况和营运结果的公平呈现于呈现的期末及相应期间是必要的。
这些基本报表包括汉密尔顿集团、汉密尔顿再保险、汉密尔顿英国控股有限公司、汉密尔顿选择、HMGA美洲、ACML和TS汉密尔顿基金（以下简称“公司”）的账户。所有重大公司内部交易和余额在合并时已被消除。某些比较信息已重新分类以符合当前年度的呈现。
b.估计的使用

根据GAAP准则编制基本报表，管理层需就资产及负债的申报金额、揭露金额以及基本报表日期时点上的条件资产和负债的揭露，以及报告期间内的收入和费用金额进行估计和假设。 实际结果可能与这些估计不同。 公司基本报表中的重要估计包括但不限于已获承保的费用、估计未来信用损失的准备金、损失备付及损失调整费用，以及投资公平价值。

c.近期会计宣告

最近公布的会计准则

在2023年11月，FASB发布了ASU 2023-07。 板块报告该指南增强了与可报告部门相关的定性和定量披露。该指引将于2023年12月15日后开始的年度期间和2024年12月15日后开始的中期期间生效。允许提前采纳。这项指引将不会对公司的营运结果、财务状况或现金流量产生实质影响。

2023年12月，FASB发布了ASU 2023-09（第740号课题） 改进所得税披露。ASU 2023-09要求公司每年披露有效税率协调中的具体类别，并提供有关满足定量门槛的协调项目的额外资讯。此外，ASU 2023-09要求公司披露更多关于所支付所得税的信息。ASU 2023-09将从2025年1月1日开始的年度周期生效，并将采用前瞻性基础，并选择性地回顾性地应用该标准。公司正在评估ASU 2023-09的披露影响。 所得税 ，该增强了与税率协调有关的定量年度披露和所支付的所得税的要求，并要求对适用税收司辖区的性质和某些协调项目性质进行额外的定性讨论。该指引适用于2024年12月15日后开始的年度时期。允许提前采用。该指引不会对公司的营运结果、财务状况或现金流量产生实质影响。


10
汉密尔顿保险集团有限公司。
附注：未经查核之缩表合并财务报表注释。
3. 投资

固定到期日和短期投资-交易

公司的定期和短期投资如下：

2024年9月30日
（以千元为单位）
摊销后成本毛未实现收益未实现亏损总额合理价值
固定到期日:
美国政府债务券$761,334 $9,273 $(5,679)$764,928 
美国各州、地区和政府机构13,528 114 (175)13,467 
非美国主权政府和超国家机构74,679 3,029 (532)77,176 
公司股份1,118,605 24,677 (9,485)1,133,797 
居住抵押支持证券 - 代理机构258,788 3,069 (10,343)251,514 
居住抵押支持证券 - 非代理机构5,790 109 (540)5,359 
商业抵押支持证券 - 非代理机构33,189 535 (615)33,109 
其他资产支持证券40,255 660 (81)40,834 
总固定到期资产2,306,168 41,466 (27,450)2,320,184 
短期投资
506,244 1,709 (6)507,947 
总计$2,812,412 $43,175 $(27,456)$2,828,131 

2023年12月31日
（以千元为单位）
摊销后成本毛未实现收益未实现亏损总额合理价值
固定到期日:
美国政府债券$717,134 $5,137 $(14,021)$708,250 
美国各州、各地区和市政府4,656 — (286)4,370 
非美国主权政府和超国家机构55,662 2,175 (1,591)56,246 
公司股份877,493 8,443 (22,060)863,876 
住宅按揭证券 - 机构180,661 435 (12,583)168,513 
住宅按揭证券 - 非机构5,639 16 (671)4,984 
商业按揭证券 - 非机构11,473 — (1,050)10,423 
其他资产支持证券14,781 20 (195)14,606 
总固定到期资产1,867,499 16,226 (52,457)1,831,268 
短期投资
427,437 1,441 — 428,878 
总计
$2,294,936 $17,667 $(52,457)$2,260,146 


11
汉密尔顿保险集团有限公司。
附注：未经查核之缩表合并财务报表注释。
合约到期摘要

以下表格显示固定到期证券的合约到期日。预期到期日可能与合约到期日不同，因为借款人可能有看涨或预约权，而不论是否有看涨或预约罚款。

2024年9月30日
（以千元为单位）
摊销后成本合理价值
不足一年
$149,305 $148,136 
一到五年后到期
1,590,516 1,607,936 
五到十年后到期
224,518 229,859 
十年后到期的
3,807 3,437 
抵押支持证券
297,767 289,982 
资产支持证券
40,255 40,834 
总计
$2,306,168 $2,320,184 

投资于两个Sigma基金

公司对Two Sigma基金的投资如下所示:

2024年9月30日2023年12月31日
（以千元为单位）
成本未实现利益（损失）合理价值成本未实现利益（损失）合理价值
Two Sigma 期货 投资组合, LLC (FTV)
$352,138 $7,017 $359,155 $433,911 $(38,105)$395,806 
Two Sigma Spectrum 投资组合, LLC (STV)
337,247 55,581 392,828 193,299 88,228 281,527 
Two Sigma Equity Spectrum 投资组合, LLC
（ESTV）
140,221 40,583 180,804 142,981 31,156 174,137 
总计
$829,606 $103,181 $932,787 $770,191 $81,279 $851,470 

本公司通过投资于 FTV、STV 和 ESTV，致力于在大量资本基础上实现美元计价的绝对回报，主要通过结合多种对冲和杠杆系统性投资策略与专有风险管理和执行技术。这些系统化策略包括但不限于基于技术和统计的、基本基础、以事件为基础，基于市场条件和基于点差的策略，以及基于贡献者和/或情感的策略和混合策略。FTV 主要利用系统化策略，以获得广泛的外汇、固定收益、股票和信贷指数以及商品的宏观曝光率，主要通过交易期货、期货、远期、期权、交换、现金债券和交易所交易产品。STV 主要利用系统化策略交易美国上市股票证券及相关工具及衍生工具。ESTV 主要利用系统化策略交易非美国上市股票证券及相关工具和衍生工具。于二零二四年九月三十日，该公司拥有一个 18.5%, 17.9百分比和 9.8分别对 FTV、STV 和 ESTV 基金的百分比权益。

下表概述FTV、STV和ESTV的某些投资情况，其中TS汉密尔顿基金对该投资的公平价值所占TS汉密尔顿基金成员权益的比例超过5%：

2024年9月30日
（以千元为单位）
本金 / 股份 (1)
公平
价值 (1)
会员权益百分比
道富银行金融机构货币型基金185,175 $185,175 9.9 %
美国国库证券，0.0000% - 4.2500%，到期日为10/29/2024 - 8/15/20442,049,275 $2,073,372 110.3 %
道富银行机构财务+货币型基金98,599 $98,599 5.3 %
美国国库券，3.5000% - 4.2500%，截至2026年9月30日 - 2054年8月15日(852,058)$(850,202)(45.2)%
(1) TS Hamilton Fund的价值代表对FTV、STV和ESTV总持股比例。

12
汉密尔顿保险集团有限公司。
附注：未经查核之缩表合并财务报表注释。
2 Sigma 和管理成员为本公司的关系人，如附注 1 进一步所述。 组织。由 2023 年 7 月 1 日起，与双西格玛签订的修订投资管理协议要求 TS 汉密尔顿基金支付管理费 2.5TS 汉密尔顿基金每年资产净值中非管理成员股权的百分比（以前 3百分比)。截至二零二四年九月三十日及二零二三年九月三十日止三个月的管理费为美元11.8 百万和美元10.4截至二零二四年九月三十日和 2023 年 9 月 30 日止九个月的管理费分别为百万元35.0 百万和美元34.4 分别是百万。

根据Hamilton Re与管理成员之间修订后的有限责任公司协议条款，管理成员仍有权获得等于其激励分配的奖励分配，相等于所 30TS Hamilton基金的净利润的%（受高水位条款约束），并根据提取款项和分配给管理成员的任何激励分配进行调整。如果在一个季度内出现净亏损，而在随后的任何季度出现净利润，则管理 50成员有权获得修改后的激励分配，其中常规激励分配将减少%，直到后续累计净利润金额相当于之前分配的净亏损的% 200。管理成员还有资格在每个财政年度结束时（或Hamilton Re提取其资本的全部或部分资金时），根据新的额外激励分配金额获得修订后的额外激励分配，其金额相等于 25 Excess Profits的%，先前为 20）。对于任何给定的财政年度（或其他同样的会计期间），"超额利润"指的是扣除管理费用和开支和激励分配前的净利润超过% 10 为止的净利润，然后扣除管理费用和支出以及激励分配，但在收回之前未收回的净亏损后才计算。只要Hamilton Re在财政年度开始时以外的时间提供资金或在财政年度结束时提取资金，与 15）。有关此类资本的额外激励分配障碍是按比例分配的。2024年9月30日及2023年的三个月合计激励分配（包括额外激励分配）为$17.2分别为2023年6月30日和2024年结束的三个月，净所得税（收益）支出分别为 $9.1分别为3,000万美元和2,000万美元，截至2024年和2023年9月30日为止的九个月内的总激励分配（包括额外的激励分配）为$172.2 百万美元和15.1 百万美元。

Hamilton Re对TS Hamilton Fund有一项承诺，保持一定金额，不超过（i）$基金的较低者，即1.8十亿或
(ii) 60Hamilton Insurance Group的净有形资产在TS Hamilton Fund中的百分比，控股的较小金额为"最低承诺金额"，为 三年期间相对于S＆P 500 IT板块指数进行度量，有潜在购股%的带有TSR数据量度的PSUs 一段时间 ("初始期") 以及滚动 三年 期间，此后的每个 三年 期间为"承诺期间"，受特定情况和下面描述的流动性期权的影响，承诺期间将于2027年6月30日结束。承诺期间包括 3年 每年自动续约的滚动期限，除非Hamilton Re或管理成员提前通知不续约。

TS Hamilton基金一般有两种流动性期权，受Hamilton Re的最低投资承诺所限，分别如下:

•每月流动性-满足特定条件，汉密尔顿再保险可能要求全部或部分提取其账户资金，但必须在该日历月份结束之前最迟提出。 十五天 在日历月份结束之前的前十五天，即当月最后一天生效。

•日常流动性-根据一定的有限条件，包括需要满足Hamilton Re根据其承保业务所产生的义务，Hamilton Re可能要求撤回所有或部分资本账户，需至少提前一个工作日以书面形式通知作出撤回申请日期与经理成员。 一年。 业务日的书面通知后，在至少1个工作日的通知请求日期后，管理成员可能要求撤回其全部或部分资金账户。

根据自身判断，管理成员可以允许或要求Hamilton Re在其他时间撤回其全部或部分资本账户，或者免除或减少某些通知期限，或者允许通知被撤回。管理成员可以随时撤回其全部或部分资本账户。


13
汉密尔顿保险集团有限公司。
附注：未经查核之缩表合并财务报表注释。
投资总净实现及未实现收益（损失）及净投资收益（损）

总投资净实现与未实现利益（损失）及净投资收益（损失）的元件如下：

结束于三个月的期间九个月结束了
九月三十日，九月三十日，
（以千元为单位）
2024202320242023
投资的净实现和未实现的收益（损失）：
投资的净实现收益（损失）$93,711 $42,403 $382,646 $32,363 
投资未实现收益（损失）变动(45,483)4,940 72,205 69,518 
投资方面实现和未实现的收益（亏损）48,228 47,343 454,851 101,881 
净投资收入（亏损）：
定期债券22,067 12,208 58,025 31,178 
短期投资10 38 50 287 
TS Hamilton 基金3,108 3,121 9,040 13,033 
现金及现金等价物4,384 4,029 12,594 8,752 
其他306 (104)1,473 1,015 
利息及其他29,875 19,292 81,182 54,265 
管理费(12,207)(10,958)(36,640)(35,806)
其他费用(338)(265)(875)(740)
净投资收益(损失)
17,330 8,069 43,667 17,719 
投资获利（亏损）净额及投资收益净额$65,558 $55,412 $498,518 $119,600 

投资净实现利损

投资之净实现收益（亏损）的元件如下：

结束于三个月的期间九个月结束了
九月三十日，九月三十日，
（以千元为单位）
2024202320242023
固定到期日和短期投资$2,769 $(7,688)$(1,866)$(10,796)
TS Hamilton基金 90,942 50,091 384,228 42,948 
其他 — — 284 211 
投资的净实现收益（损失）$93,711 $42,403 $382,646 $32,363 

投资的未实现收益（损失）

投资的未实现收益（损失）的元件如下所示：

结束于三个月的期间九个月结束了
九月三十日，九月三十日，
（以千元为单位）
2024202320242023
定期到期债务和短期投资$64,903 $(12,818)$50,304 $(9,800)
TS汉密尔顿基金 (110,386)17,758 21,901 79,318 
投资中的未实现损益$(45,483)$4,940 $72,205 $69,518 


14
汉密尔顿保险集团有限公司。
附注：未经查核之缩表合并财务报表注释。
质押资产

2024年9月30日和2023年12月31日，按照公允价值计算的抵押投资分别为$250.3百万和$232.2百万，用于为在Lloyd's进行的业务所需的部分资本需求提供保证，分别为$89.1百万和$54.1百万，作为为美国州监管机构设立的信托账户的利益，分别为$32.5百万和$37.2百万，用于保护其他承保义务的分别担保。此外，某些投资被用作信用证保证设施的抵押品，详情请参见附注10， 债务和信用设施.

在2024年9月30日和2023年12月31日，受限制的现金及现金等价物余额分别为$89.6百万和$97.4百万，分别用于其他承销义务担保，$2.7百万和$7.2百万，分别拨作于Lloyd的业务所需的部分资本要求，$1.6百万和$1.5百万，分别存入信托账户，以供监管机构受益，并$Nil 15.10.3分别为托管基金的数百万及数百万美元。

资金流量表中报告的现金及现金等价物和受限制现金及现金等价物总额为$1.1 十月三十日负债表中现金及现金等价物为$1.0 十月三十日负债表中受限制现金及现金等价物为$93.9 2024年9月30日资金流量表中报告的现金及现金等价物和受限制现金及现金等价物总额为$900.9 2023年12月31日负债表中现金及现金等价物为$794.5 2023年12月31日负债表中受限制现金及现金等价物为$106.4 负债表中现金及现金等价物为$

4. 合理价值

金融工具需按公允价值计量

根据会计指引，对于公平价值衡量需要反映市场参与者基于最佳可得资讯对资产或负债定价所使用的假设。假设包括特定估值技术（例如价格模型）中固有的风险和/或模型输入中存在的风险。金融工具的公平价值是在测量日期（「退出价格」）之间市场参与者之间进行交易时将获得的资产销售金额，或转移负债时将支付的金额。公司所拥有的工具是按照买盘价格标记的。

公平值计量基础

公允价值衡量会计指引还设立了一个公允价值层次结构，用于排定用于衡量公允价值的估值技术的输入优先顺序。此层次将最高优先顺位赋予于活跃市场中对应资产或负债的未调整报价价格（一级衡量）和将最低优先顺位赋予于不可观察的输入（三级衡量）。 资产或负债在公允价值层次中的分类基于其估值中的重要输入的最低级别。公允价值层次的三个层级为：

•一级 公司在计量日期可以取得的反映未调整报价的相同资产或负债的活跃市场资料；

•第二级 - 层级1中包括资产或负债的可观察价格以外的其他输入，这些输入可以直接或间接地观察到，包括在非活跃市场中被认为不活跃的市场中的输入；和

•等级 3 对公允价值计量既重要又不可观察的输入。

资产记录于公平值 - 定期和短期投资

以下部分描述了用于判断公司固定到期和短期投资按资产类别确定公平价值的估值方法：

•美国政府债券： 根据观察市场输入的公平价值，例如报价、已报交易、类似发行的报价和基准收益率；

•美国各州、地区和市政府： 根据观察市场输入，如报价市场价格、类似证券的报价价格、基准收益率和信贷利差，进行公平价值评估；


15
汉密尔顿保险集团有限公司
未经审核简明综合财务报表附注
•非美国主权政府和超国家机构： 根据可观察的市场输入，如报价市场价格、类似证券的报价价格和具有可观察输入的模型（如基准收益率和信贷价差），然后（如适用）使用从国际认可的来源获取的汇率转换为美元；

•企业： 根据可观察市场输入的公允价值，如报价市场价格、类似证券的报价价格、基准收益率和信贷利差；

•资产抵押证券和按揭抵押证券： 公平价值基于可观察的输入，如报价、报告的交易、类似发行的报价或基准收益率以及使用可观察的输入的现金流模型，如预偿速度、担保品表现和违约差额；和

•短期投资： 根据可观察市场输入，例如报价、报告的交易、类似发行的报价和基准收益率，评估公允价值。

以下表格列出了按照重复性基础计量公平价值的金融工具：

二零二四年九月三十日
(千美元)
等级一第二级等级 3总计
固定到期：
美国政府库$— $764,928 $— $764,928 
美国州、地区和市政区划— 13,467 — 13,467 
非美国主权政府和超国家— 77,176 — 77,176 
企业— 1,133,797 — 1,133,797 
住宅按揭抵押证券-代理— 251,514 — 251,514 
住宅按揭抵押证券-非代理— 5,359 — 5,359 
商业按揭抵押证券-非代理— 33,109 — 33,109 
其他资产抵押证券— 40,834 — 40,834 
固定到期总期— 2,320,184 — 2,320,184 
短期投资— 507,947 — 507,947 
总计$— $2,828,131 $— $2,828,131 

二零三年十二月三十一日
(千美元)
等级一第二级等级 3总计
固定到期：
美国政府库$— $708,250 $— $708,250 
美国州、地区和市政区划— 4,370 — 4,370 
非美国主权政府和超国家— 56,246 — 56,246 
企业— 863,876 — 863,876 
住宅按揭抵押证券-代理— 168,513 — 168,513 
住宅按揭抵押证券-非代理— 4,984 — 4,984 
商业按揭抵押证券-非代理— 10,423 — 10,423 
其他资产抵押证券— 14,606 — 14,606 
固定到期总期— 1,831,268 — 1,831,268 
短期投资— 428,878 — 428,878 
总计$— $2,260,146 $— $2,260,146 

The carrying values of cash and cash equivalents, restricted cash and cash equivalents, accrued investment income, receivables for investments sold, certain other assets, payables for investments purchased, and certain other liabilities approximate their fair values.

16
Hamilton Insurance Group, Ltd.
Notes to the Unaudited Condensed Consolidated Financial Statements
5. Variable Interest Entities

TS Hamilton Fund

TS Hamilton Fund meets the definition of a variable interest entity ("VIE") principally because the Managing Member does not hold substantive equity at risk in the entity but controls all of the decision making authority over it. Therefore, the Company assessed its ownership in the VIE to determine if it is the primary beneficiary. The Managing Member is a related party to the Company and collectively they hold all of the variable interest. The Company performed an assessment of all relevant facts and circumstances and determined that it is the entity within the related party group for whom substantially all of the activities of the VIE are conducted. As a result, the Company concluded that it is the primary beneficiary of TS Hamilton Fund.

Activity in the non-controlling interest of TS Hamilton Fund was as follows:

Three Months EndedNine Months Ended
September 30,September 30,
($ in thousands)
2024202320242023
Balance - beginning of period
$77,275 $124 $133 $119 
Withdrawals
— (9,060)(112,313)(15,066)
Equity in earnings
(1)5 33 10 
Incentive allocation
(17,214)9,060 172,207 15,066 
Balance - end of period
$60,060 $129 $60,060 $129 

The following table presents the total assets and total liabilities of TS Hamilton Fund. Creditors or beneficial interest holders of TS Hamilton Fund have no recourse to the general credit of the Company as the Company’s obligation is limited to the amount of its committed investment.

($ in thousands)
September 30,
2024		December 31,
2023
Assets
Cash and cash equivalents
$560,757 $479,255 
Short-term investments
507,947 428,878 
Investments in Two Sigma Funds, at fair value
932,787 851,470 
Receivables for investments sold
28,977 41,087 
Interest and dividends receivable
1,184 966 
Total assets
2,031,6521,801,656
Liabilities
Accounts payable and accrued expenses
190 191 
Withdrawal payable
— 6,480 
Payable for investments purchased
151,754 62,440 
Total liabilities
151,94469,111
Total net assets managed by TS Hamilton Fund
$1,879,708$1,732,545


17
Hamilton Insurance Group, Ltd.
Notes to the Unaudited Condensed Consolidated Financial Statements
6. Value Appreciation Pool

The Value Appreciation Pool ("VAP") is a long-term incentive compensation plan that rewarded employees with 10% of the increase in the multiple of the Company's estimated fair market value to GAAP shareholders' equity between the December 1, 2020 VAP inception date and the Company's Initial Public Offering on November 10, 2023.

As a then nonpublic company, the VAP was initially measured at intrinsic value and no compensation cost was recorded over the period December 1, 2020 to March 31, 2023. On May 15, 2023, the Company became a public business entity and the VAP was remeasured at fair value. The fair value of the compensation cost was estimated at each reporting date and expensed over the period for which the employee is required to provide services in exchange for the award, with any changes recorded in compensation expense by a cumulative catch-up adjustment.

In the fourth quarter of 2023, the Company consummated an IPO of its Class B common shares and, on November 10, 2023, closed its first day of trading. In accordance with the Compensation Committee's decision that the VAP award would be settled in shares if triggered by an IPO, the VAP became subject to equity award accounting. The VAP RSUs vest in two tranches, subject to continued service: 50% on each of the first and second anniversaries of the November 10, 2023 trigger event. Participants who leave prior to vesting forfeit any previously unsettled portion of their awards.

The Company recorded a compensation expense of $1.9 million and $11.2 million for the three months ended September 30, 2024 and 2023, respectively. The Company recorded a compensation expense of $7.5 million and $15.6 million for the nine months ended September 30, 2024 and 2023, respectively. Of the total expense recognized for the nine months ended September 30, 2023, $4.2 million was recorded as an adjustment to retained earnings in "Share compensation expense" in the second quarter of 2023.

See Note 13. Stock Incentive Plans in the audited consolidated financial statements included in our Form 10-K for the year ended December 31, 2023 for further details.

7. Reinsurance

The Company purchases reinsurance and other protection to manage its risk portfolio and to reduce its exposure to large losses. The Company currently has in place contracts that provide for recovery of a portion of certain loss and loss adjustment expenses, generally in excess of various retentions or on a proportional basis. Amounts recoverable under reinsurance contracts are recorded as assets. The Company remains liable to the extent that any reinsurance company fails to meet its obligations.

Allowance for Expected Credit Losses

Premiums receivable, paid losses recoverable, and unpaid losses and loss adjustment expenses recoverable comprise the Company's most significant credit exposures not carried at fair value. The Company has not historically experienced significant credit losses. In determining an allowance for these assets, the Company considers historical information in combination with counterparty financial strength ratings and the extent to which balances are collateralized. The Company assesses the risk of future default by evaluating current market conditions for the likelihood of default and calculates its provision for current expected credit losses under the probability of default and loss given default methodology.

Premiums Receivable

Premiums receivable are estimated based on policy terms and reports received from the underlying counterparties, supplemented by management's judgment. Due to the nature of the (re)insurance business, the Company routinely receives reports and premiums subsequent to the inception of the coverage period. At September 30, 2024, the Company’s premiums receivable balance, net of credit provisions of $2.0 million, was $885.7 million. At December 31, 2023, the Company’s premiums receivable balance, net of credit provisions of $3.0 million, was $658.4 million.


18
Hamilton Insurance Group, Ltd.
Notes to the Unaudited Condensed Consolidated Financial Statements
The following table provides a roll forward of the provision for current expected credit losses of the Company's premiums receivable:

Three Months EndedNine Months Ended
September 30,September 30,
($ in thousands)2024202320242023
Beginning balance $1,962 $3,098 $3,000 $2,856 
Increase (decrease) in allowance 46 (356)(992)(114)
Ending balance $2,008 $2,742 $2,008 $2,742 

Reinsurance Balances Recoverable

Reinsurance balances recoverable is comprised of amounts due from reinsurers based on the claim liabilities associated with the reinsured policy. The Company accrues amounts due from reinsurers based on estimated ultimate contract losses. At September 30, 2024, the Company’s paid and unpaid reinsurance recoverable balances net of credit provisions were $146.0 million and $1.2 billion, respectively, with a total corresponding provision for current expected credit losses of $0.8 million. At December 31, 2023, the Company’s paid and unpaid reinsurance recoverable balances net of credit provisions were $145.2 million and $1.2 billion, respectively, with a total corresponding provision for current expected credit losses of $0.7 million.

The following table provides a roll forward of the provision for current expected credit losses of the Company's reinsurance recoverable:

Three Months EndedNine Months Ended
September 30,September 30,
($ in thousands)2024202320242023
Beginning balance$755 $820 $687 $777 
Increase (decrease) in allowance78 (129)146 (86)
Ending balance$833 $691 $833 $691 

The distribution of the Company’s paid losses recoverable and unpaid losses and loss adjustment expenses recoverable as categorized by major rating agencies were as follows:

Classification
September 30,
2024		December 31,
2023
Collateralized
24.9 %28.5 %
A- or better
74.9 %71.0 %
Below A-
0.2 %0.5 %
   Total
100.0 %100.0 %

At September 30, 2024 and December 31, 2023, the three largest balances by reinsurer accounted for 24%, 21% and 13%, and 27%, 20% and 12%, respectively, of paid losses recoverable and unpaid losses and loss adjustment expenses recoverable.


19
Hamilton Insurance Group, Ltd.
Notes to the Unaudited Condensed Consolidated Financial Statements
Loss Portfolio Transfer

On February 6, 2020, the Company entered into a loss portfolio transfer agreement (the "LPT"), under which the insurance liabilities arising from certain casualty risks for the Lloyd's Years of Account ("YOA") 2016, 2017 and 2018 were retroceded to a third party in exchange for total premium of $72.1 million. This transaction was accounted for as retroactive reinsurance under which cumulative ceded losses exceeding the LPT premium are recognized as a deferred gain liability and amortized into income over the settlement period of the ceded reserves in proportion to cumulative losses collected over the estimated ultimate reinsurance recoverable. The amount of the deferral is recalculated each reporting period based on updated ultimate loss estimates. Consequently, cumulative adverse development subsequent to the signing of the LPT may result in significant losses from operations until periods when the deferred gain is recognized as a benefit to earnings.

At September 30, 2024 and December 31, 2023, the balance of reinsurance recoverable on unpaid losses due under this LPT was $44.2 million and $49.8 million, respectively. Amortization of the deferred gain was an expense of $0.6 million and $0.9 million during the three months ended September 30, 2024 and 2023, respectively, and income of $1.3 million and $2.5 million during the nine months ended September 30, 2024 and 2023, respectively, which was recorded through losses and loss adjustment expenses in accordance with the actual loss payments and updated estimates of ultimate losses of the subject business.

Catastrophe Bond Reinsurance

In December 2023, Hamilton Group sponsored an industry loss index-triggered catastrophe bond through the issuance of Series 2024-1 Class A Principal-at-Risk Variable Rate Notes by Bermuda-domiciled Easton Re Ltd. ("Easton Re"), which provide the Company's operating platforms with multi-year risk transfer capacity of $200 million to protect against named storm risk in the United States and earthquake risk in the United States and Canada. The risk period for Easton Re is from January 1, 2024 to December 31, 2026. The Company recorded reinsurance premiums ceded of $Nil and $14.6 million during the three and nine months ended September 30, 2024, respectively.

In December 2020, Hamilton Group sponsored an industry loss index-triggered catastrophe bond through the issuance of Series 2020-1 Class A Principal-at-Risk Variable Rate Notes by Singapore-domiciled Easton Re Pte, Ltd. (also "Easton Re"). Easton Re provided the Company's operating platforms with multi-year risk transfer capacity of $150 million to protect against named storm and earthquake risk in the United States. The risk period for Easton Re was from January 1, 2021 to December 31, 2023. The Company recorded reinsurance premiums ceded of $Nil and $7.2 million during the three and nine months ended September 30, 2023, respectively.





20
Hamilton Insurance Group, Ltd.
Notes to the Unaudited Condensed Consolidated Financial Statements
8. Reserve for Losses and Loss Adjustment Expenses
The following table presents a reconciliation of unpaid losses and loss adjustment expenses ("LAE") for the nine months ended September 30, 2024 and 2023:

Nine Months Ended
September 30,
($ in thousands)
20242023
Gross unpaid losses and loss adjustment expenses, beginning of period$3,030,037 $2,856,275 
Reinsurance recoverable on unpaid losses1,161,077 1,177,863 
Net unpaid losses and loss adjustment expenses, beginning of period1,868,960 1,678,412 
Net losses and loss adjustment expenses incurred in respect of losses occurring in:
Current year726,602 528,457 
Prior years(6,124)(8,903)
Total incurred720,478 519,554 
Net losses and loss adjustment expenses paid in respect of losses occurring in:
Current year24,850 28,521 
Prior years344,992 397,407 
Total paid369,842 425,928 
Foreign currency revaluation and other24,739 19,661 
Net unpaid losses and loss adjustment expenses, end of period2,244,335 1,791,699 
Reinsurance recoverable on unpaid losses 1,190,465 1,157,123 
Gross unpaid losses and loss adjustment expenses, end of period$3,434,800 $2,948,822 

Net favorable prior year development of $6.1 million for the nine months ended September 30, 2024 was primarily driven by $13.2 million of favorable prior year development on catastrophe losses, partially offset by $7.1 million of unfavorable development on attritional losses. See below for further details:

•Net favorable development of $26.1 million on property contracts, primarily driven by favorable prior year development on catastrophe losses and overall lower than expected claims development across various classes; partially offset by
•Net unfavorable development of $13.2 million on casualty contracts, primarily driven by higher than expected claims development across certain classes and unfavorable development of one specific large loss; and
•Net unfavorable development of $9.5 million on specialty contracts, primarily driven by two specific large losses; and
•In addition, casualty business protected by the LPT discussed in Note 7, Reinsurance, benefited from favorable development in the underlying reserves of $1.4 million and $1.3 million in amortization of the associated deferred gain, for a total net positive earnings impact of $2.7 million.

Net favorable prior year development of $8.9 million for the nine months ended September 30, 2023 was comprised of $4.9 million and $4.0 million of favorable prior year development on catastrophe and attritional losses, respectively. See below for further details:

•Net favorable development of $20.3 million on specialty contracts, driven by lower than expected claims development across various classes; offset by
•Net unfavorable development of $8.8 million on casualty contracts, primarily related to higher than expected claims development across various classes; and

21
Hamilton Insurance Group, Ltd.
Notes to the Unaudited Condensed Consolidated Financial Statements
•Net unfavorable development of $6.6 million on property contracts, primarily driven by higher than expected claims related to Winterstorm Elliot and development on certain attritional claims, including claims arising from exited classes of business; and
•In addition, casualty business protected by the LPT discussed in Note 7, Reinsurance, benefited from $2.5 million in amortization of the associated deferred gain, which, in addition to favorable development in the underlying reserves of $1.5 million, had a total net positive earnings impact of $4.0 million.

Reinsurance recoverable on unpaid losses related to the LPT discussed in Note 7, Reinsurance, was recognized for each of the nine months ended September 30, 2024 and 2023 in the reconciliation of beginning and ending gross and net loss and LAE reserves presented above.

Acquisition Costs

The Company amortized acquisition costs of $102.2 million and $78.5 million for the three months ended September 30, 2024 and 2023, respectively, and $283.1 million and $220.5 million for the nine months ended September 30, 2024 and 2023, respectively.

Hurricane Helene

On September 26, 2024, Hurricane Helene made landfall near the Big Bend region of Florida before traveling inland across the southeastern U.S. and dissipating over Tennessee on September 29, 2024. The level of uncertainty within the Company’s loss estimates for Hurricane Helene is increased by the fact that this event occurred in the final days of the fiscal quarter. As at September 30, 2024 and December 31, 2023, our net recorded reserves relating to Hurricane Helene totaled $33.9 million and $Nil, respectively.

Baltimore Bridge

Our net reserves for losses and loss adjustment expenses related to the Francis Scott Key Baltimore Bridge collapse on March 26, 2024 are also subject to significant uncertainty. As at September 30, 2024 and December 31, 2023, our recorded reserves totaled $37.9 million and $Nil, respectively.

Ukraine Conflict

Our net reserves for losses and loss adjustment expenses related to the ongoing Ukraine conflict are also subject to significant uncertainty. As at September 30, 2024 and December 31, 2023, our recorded reserves totaled $63.7 million and $64.9 million, respectively.

Covid-19

Our Covid-19 losses are also subject to significant uncertainty. As at September 30, 2024 and December 31, 2023, our net recorded reserves relating to Covid-19 totaled $15.6 million and $14.1 million, respectively.

While the Company believes, based on current facts and circumstances, that its estimates of net reserves for losses and loss adjustment expenses are adequate for losses and loss adjustment expenses that have been incurred at September 30, 2024, the Company will continue to monitor its assumptions as new information becomes available and will adjust its estimate of net reserves for losses and loss adjustment expenses as appropriate. Actual ultimate losses for these events may differ materially from the Company's current estimates.


22
Hamilton Insurance Group, Ltd.
Notes to the Unaudited Condensed Consolidated Financial Statements
9. Segment Reporting

The Company has determined its reportable business segments based on the information used by management in assessing performance and allocating resources to underwriting operations and has identified two reportable business segments - International and Bermuda. Each of the Company's 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: the Chief Executive Officer of the consolidated group.

The Company evaluates the performance of reportable segments based on their 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 the Company does not manage its assets by reportable segment, investment income and assets are not allocated to reportable segments.

The Company's core business is underwriting and its underwriting results are reflected in its 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. The Company considers 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), other income (loss) not incurred by the reportable segments, 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).

23
Hamilton Insurance Group, Ltd.
Notes to the Unaudited Condensed Consolidated Financial Statements
($ in thousands)
Three Months Ended September 30, 2024InternationalBermudaCorporateTotal
Gross premiums written$325,525 $227,876 $— $553,401 
Net premiums written$268,106 $209,790 $— $477,896 
Net premiums earned$225,244 $223,551 $— $448,795 
Third party fee income4,170 294 — 4,464 
Losses and loss adjustment expenses130,135 143,497 — 273,632 
Acquisition costs59,713 42,488 — 102,201 
Other underwriting expenses34,143 14,189 — 48,332 
Underwriting income (loss)$5,423 $23,671 $— $29,094 
Net realized and unrealized gains (losses) on investments48,228 48,228 
Net investment income (loss)17,330 17,330 
Net foreign exchange gains (losses)(5,973)(5,973)
Corporate expenses(14,060)(14,060)
Amortization of intangible assets(5,204)(5,204)
Interest expense(5,351)(5,351)
Income (loss) before income tax64,064 
Income tax (expense) benefit(3,029)(3,029)
Net income (loss)61,035 
Net income (loss) attributable to non-controlling interest(17,215)(17,215)
Net income (loss) attributable to common shareholders$78,250 
Key Ratios
Attritional loss ratio - current year55.3 %51.0 %53.2 %
Attritional loss ratio - prior year development(1.5)%0.0 %(0.7)%
Catastrophe loss ratio - current year6.4 %16.7 %11.5 %
Catastrophe loss ratio - prior year development(2.4)%(3.5)%(3.0)%
Loss and loss adjustment expense ratio57.8 %64.2 %61.0 %
Acquisition cost ratio26.5 %19.0 %22.8 %
Other underwriting expense ratio13.3 %6.2 %9.8 %
Combined ratio97.6 %89.4 %93.6 %


24
Hamilton Insurance Group, Ltd.
Notes to the Unaudited Condensed Consolidated Financial Statements
($ in thousands)
Three Months Ended September 30, 2023InternationalBermudaCorporateTotal
Gross premiums written$307,140 $166,983 $— $474,123 
Net premiums written$234,621 $148,945 $— $383,566 
Net premiums earned$178,632 $158,404 $— $337,036 
Third party fee income2,115 186 — 2,301 
Losses and loss adjustment expenses97,820 93,757 — 191,577 
Acquisition costs47,236 31,301 — 78,537 
Other underwriting expenses31,634 12,723 — 44,357 
Underwriting income (loss)$4,057 $20,809 $— $24,866 
Net realized and unrealized gains (losses) on investments47,343 47,343 
Net investment income (loss)8,069 8,069 
Other income (loss), excluding third party fee income85 85 
Net foreign exchange gains (losses)1,432 1,432 
Corporate expenses(18,678)(18,678)
Amortization of intangible assets(2,794)(2,794)
Interest expense(5,288)(5,288)
Income (loss) before income tax55,035 
Income tax (expense) benefit(2,387)(2,387)
Net income (loss)52,648 
Net income (loss) attributable to non-controlling interest9,065 9,065 
Net income (loss) attributable to common shareholders$43,583 
Key Ratios
Attritional loss ratio - current year54.6 %55.1 %54.8 %
Attritional loss ratio - prior year development(5.3)%5.7 %(0.1)%
Catastrophe loss ratio - current year5.1 %2.6 %3.9 %
Catastrophe loss ratio - prior year development0.4 %(4.2)%(1.8)%
Loss and loss adjustment expense ratio54.8 %59.2 %56.8 %
Acquisition cost ratio26.4 %19.8 %23.3 %
Other underwriting expense ratio16.5 %7.9 %12.5 %
Combined ratio97.7 %86.9 %92.6 %


25
Hamilton Insurance Group, Ltd.
Notes to the Unaudited Condensed Consolidated Financial Statements
($ in thousands)
Nine Months Ended September 30, 2024InternationalBermudaCorporateTotal
Gross premiums written$957,981 $920,664 $— $1,878,645 
Net premiums written$687,444 $780,399 $— $1,467,843 
Net premiums earned$637,700 $615,162 $— $1,252,862 
Third party fee income11,557 6,377 — 17,934 
Losses and loss adjustment expenses359,181 361,297 — 720,478 
Acquisition costs160,589 122,470 — 283,059 
Other underwriting expenses99,317 41,022 — 140,339 
Underwriting income (loss)$30,170 $96,750 $— $126,920 
Net realized and unrealized gains (losses) on investments454,851 454,851 
Net investment income (loss)43,667 43,667 
Net foreign exchange gains (losses)(9,883)(9,883)
Corporate expenses(41,825)(41,825)
Amortization of intangible assets(11,773)(11,773)
Interest expense(17,090)(17,090)
Income (loss) before income tax544,867 
Income tax (expense) benefit(6,118)(6,118)
Net income (loss)538,749 
Net income (loss) attributable to non-controlling interest172,240 172,240 
Net income (loss) attributable to common shareholders$366,509 
Key Ratios
Attritional loss ratio - current year54.6 %53.1 %53.9 %
Attritional loss ratio - prior year development0.3 %0.8 %0.6 %
Catastrophe loss ratio - current year2.2 %6.1 %4.1 %
Catastrophe loss ratio - prior year development(0.8)%(1.3)%(1.1)%
Loss and loss adjustment expense ratio56.3 %58.7 %57.5 %
Acquisition cost ratio25.2 %19.9 %22.6 %
Other underwriting expense ratio13.8 %5.6 %9.8 %
Combined ratio95.3 %84.2 %89.9 %


26
Hamilton Insurance Group, Ltd.
Notes to the Unaudited Condensed Consolidated Financial Statements
($ in thousands)
Nine Months Ended September 30, 2023InternationalBermudaCorporateTotal
Gross premiums written$832,049 $685,198 $— $1,517,247 
Net premiums written$553,687 $563,085 $— $1,116,772 
Net premiums earned$504,784 $447,614 $— $952,398 
Third party fee income7,417 336 — 7,753 
Losses and loss adjustment expenses255,787 263,767 — 519,554 
Acquisition costs131,688 88,844 — 220,532 
Other underwriting expenses89,635 36,607 — 126,242 
Underwriting income (loss)$35,091 $58,732 $— $93,823 
Net realized and unrealized gains (losses) on investments101,881 101,881 
Net investment income (loss)17,719 17,719 
Other income (loss), excluding third party fee income85 85 
Net foreign exchange gains (losses)(3,953)(3,953)
Corporate expenses(31,833)(31,833)
Amortization of intangible assets(7,869)(7,869)
Interest expense(16,007)(16,007)
Income (loss) before income tax153,846 
Income tax (expense) benefit(6,908)(6,908)
Net income (loss)146,938 
Net income (loss) attributable to non-controlling interest15,076 15,076 
Net income (loss) attributable to common shareholders$131,862 
Key Ratios
Attritional loss ratio - current year52.6 %50.8 %51.8 %
Attritional loss ratio - prior year development(4.3)%4.0 %(0.4)%
Catastrophe loss ratio - current year2.2 %5.4 %3.7 %
Catastrophe loss ratio - prior year development0.2 %(1.3)%(0.5)%
Loss and loss adjustment expense ratio50.7 %58.9 %54.6 %
Acquisition cost ratio26.1 %19.8 %23.2 %
Other underwriting expense ratio16.3 %8.1 %12.4 %
Combined ratio93.1 %86.8 %90.2 %

The following table presents gross premiums written by the geographical location of the Company's subsidiaries:

Three Months EndedNine Months Ended
September 30,September 30,
($ in thousands)2024202320242023
International
Lloyd's of London$192,380 $189,155 $590,339 $507,326 
Ireland99,650 96,272 283,776 271,002 
U.S.33,495 21,713 83,866 53,721 
Total International325,525 307,140 957,981 832,049 
Bermuda227,876 166,983 920,664 685,198 
Total$553,401 $474,123 $1,878,645 $1,517,247 


27
Hamilton Insurance Group, Ltd.
Notes to the Unaudited Condensed Consolidated Financial Statements
10. Debt and Credit Facilities

Debt

On June 23, 2022, Hamilton Group renewed its unsecured $150 million term loan credit arrangement, as amended from time to time (the "Facility"), with various lenders as arranged by Wells Fargo Securities, LLC. All or a portion of the loan issued under the Facility bears interest at either (a) the Base Rate plus the Applicable Margin or (b) the Adjusted Term Secured Overnight Financing Rate ("SOFR") plus the Applicable Margin, at Hamilton Group's discretion. In the event of default, an additional 2% interest in excess of (a) or (b) will be levied, not to exceed the highest rate permissible under applicable law, and certain types of loans may not be available for borrowing by Hamilton Group under the Facility. The Facility matures on June 23, 2025, unless accelerated pursuant to the terms of the Facility, and it contains usual and customary representations, warranties, conditions and covenants for bank loan facilities of this type. The Facility also contains certain financial covenants which cap the ratio of consolidated debt to capital and require that Hamilton Group maintain a certain minimum consolidated net worth. The net worth requirement is recalculated effective as of the end of each fiscal quarter. As at September 30, 2024, the Company was in compliance with all covenants.

The following table presents the gross outstanding loan balance, loan fair value and unamortized loan issuance costs:

($ in thousands)September 30,
2024		December 31,
2023
Outstanding loan balance$150,000 $150,000 
Loan fair value150,623 150,981 
Unamortized loan issuance costs$84 $170 

Debt issuance costs are amortized over the period during which the Facility is outstanding, as an offset to net investment income (loss). The Company amortized debt issuance costs of less than $0.1 million in each of the three and nine months ended September 30, 2024 and 2023. The Company’s debt is classified as Level 3 within the fair value hierarchy because it is valued using an income approach, which utilizes a discounted cash flow technique that considers the credit profile of the Company.

Credit Facilities

The Company has several available letter of credit facilities and a revolving loan facility provided by commercial banks. The letter of credit facilities are utilized to provide collateral to reinsureds of Hamilton Re and its affiliates to the extent required under insurance and reinsurance agreements and to support capital requirements at Lloyd’s.

On December 5, 2018 and December 27, 2018, Hamilton Re entered into a Master Agreement for Issuance of Payment Instruments and a Facility Letter for Issuance of Payment Instruments respectively, with CitiBank Europe Plc ("CitiBank Europe"), under which CitiBank Europe agreed to provide an uncommitted secured letter of credit facility for the issuance of standby letters of credit or similar instruments in multiple currencies. On August 8, 2023, letter of credit capacity under this facility was increased to $200 million. At all times during which it is a party to the facility, Hamilton Re is obligated to pledge to CitiBank Europe cash and/or securities with a value that equals or exceeds the aggregate face amount of its then-outstanding letters of credit. The Master Agreement contains events of default customary for facilities of this type. In the facility letter, Hamilton Re makes representations and warranties that are customary for facilities of this type and agrees that it will comply with certain informational and other undertakings.


28
Hamilton Insurance Group, Ltd.
Notes to the Unaudited Condensed Consolidated Financial Statements
On June 23, 2022, Hamilton Group and Hamilton Re amended and restated their unsecured credit agreement with a syndication of lenders (the "Unsecured Facility"). Under the Unsecured Facility, the lenders have agreed to provide up to an aggregate of $415 million of letter of credit capacity for Hamilton Re, up to $150 million of which may be utilized for revolving loans to be issued to Hamilton Group. At September 30, 2024, there were no loan amounts outstanding under this facility. Margin rates reflect contractually agreed rates, which are based on Hamilton Re’s current Financial Strength Rating as assigned by A.M. Best. As of April 30, 2024, letters of credit issued under the facility bear interest at a rate of 137.5 basis points (previously 150 basis points), while revolving loans if issued are subject to a fee of SOFR plus a margin of 162.5 basis points (previously 185 basis points). To the extent such loans are issued, the available letter of credit capacity shall decrease proportionally, such that the aggregate credit exposure for the lenders under the credit agreement is $415 million. Amounts unutilized under the facility are subject to a fee of 17.5 basis points (previously 22.5 basis points). Capacity is provided by Wells Fargo, National Association, Truist Bank, BMO Harris Bank N.A., Commerzbank AG, New York Branch, HSBC Bank USA, N.A., and Barclays Bank PLC. Unless renewed or otherwise terminated in accordance with its terms, the Unsecured Facility is scheduled to terminate on June 23, 2025.

On August 12, 2024, Hamilton Re and HIDAC amended their committed letter of credit facility agreement with Bank of Montreal ("BMO"), with Hamilton Group as guarantor, under which BMO agreed to make available a secured letter of credit facility of $50 million for a term that will expire on August 13, 2025. The facility bears a fee of 40 basis points for letters of credit issued and 15 basis points on any unutilized portion of the facility.

Effective October 25, 2024, Hamilton Re amended its letter of credit facility agreement with UBS AG ("UBS") under which UBS and certain of its affiliates agreed to make available to Hamilton Re a secured letter of credit facility of $100 million for a term that will expire on October 25, 2025. The facility bears a fee of 140 basis points on the total available capacity.

In addition, on October 28, 2024, Hamilton Re amended the unsecured letter of credit facility agreement that it utilizes to provide Funds at Lloyd's ("FAL") ("FAL LOC Facility") to support the FAL requirements of Syndicate 4000. Capacity is provided by Barclays Bank PLC, ING Bank N.V., London Branch, and Bank of Montreal, London Branch. The FAL LOC Facility of $230 million was renewed for an additional one year term that expires on October 28, 2025. The facility bears a fee of 162.5 basis points on the borrowed amount.

The Company’s obligations under its credit facilities require Hamilton Group, Hamilton Re and the other parties thereto to comply with various financial and reporting covenants. All applicable entities were in compliance with all such covenants at September 30, 2024.

Certain of the Company's credit facilities are secured by pledged interests in the TS Hamilton Fund, the Company's fixed income security portfolio, or cash. The Company’s credit facilities and associated securities pledged, were as follows:

($ in thousands)
September 30,
2024
Available letter of credit and revolving loan facilities - commitments
$995,000
Available letter of credit and revolving loan facilities - in use
746,786

Security pledged under letter of credit and revolving loan facilities:
   Pledged interests in TS Hamilton Fund
$229,376
   Pledged interests in fixed income portfolio
258,701
   Cash5,271
The Company has recognized interest expense related to the above debt and credit facilities of $5.4 million and $5.3 million for the three months ended September 30, 2024 and 2023, respectively, and $17.1 million and $16.0 million for the nine months ended September 30, 2024 and 2023, respectively.


29
Hamilton Insurance Group, Ltd.
Notes to the Unaudited Condensed Consolidated Financial Statements
11. Share Capital

Authorized and Issued

Hamilton Group’s share capital is comprised as follows:

($ in thousands, except share information)
Authorized:
Common shares of $0.01 par value each (2024 and 2023: 150,000,000)
Issued, outstanding and fully paid:September 30,
2024		December 31,
2023
Class A common shares (2024: 17,820,078 and 2023: 28,644,807)
$178 $286 
Class B common shares (2024: 63,668,995 and 2023: 56,036,067)
637 560 
Class C common shares (2024: 19,903,649 and 2023: 25,544,229)
199 255 
Total$1,014 $1,101 

The following is a summary of the activity related to common shares authorized:

Class AClass BClass CUnclassifiedTotal
Balance - June 30, 202428,644,807 72,837,352 25,044,229 23,473,612 150,000,000 
Share class conversions(1,700,000)6,840,580 (5,140,580)— — 
Balance - September 30, 202426,944,807 79,677,932 19,903,649 23,473,612 150,000,000 

Class AClass BClass CUnclassifiedTotal
Balance - June 30, 202353,993,690 50,480,684 30,525,626 — 135,000,000 
Increase in authorized share capital— 15,000,000 — — 15,000,000 
Balance - September 30, 202353,993,690 65,480,684 30,525,626 — 150,000,000 

Class AClass BClass CUnclassifiedTotal
Balance - December 31, 202328,644,807 72,337,352 25,544,229 23,473,612 150,000,000 
Share class conversions(1,700,000)7,340,580 (5,640,580)— — 
Balance - September 30, 202426,944,807 79,677,932 19,903,649 23,473,612 150,000,000 

Class AClass BClass CUnclassifiedTotal
Balance - December 31, 202253,993,690 50,480,684 30,525,626 — 135,000,000 
Increase in authorized share capital— 15,000,000 — — 15,000,000 
Balance - September 30, 202353,993,690 65,480,684 30,525,626 — 150,000,000 


30
Hamilton Insurance Group, Ltd.
Notes to the Unaudited Condensed Consolidated Financial Statements
The following is a summary of the activity related to common shares issued and outstanding:

Class AClass BClass CTotal
Balance - June 30, 202419,520,078 57,358,464 25,044,229 101,922,771 
Share class conversions(1,700,000)6,840,580 (5,140,580)— 
Share repurchases— (530,049)— (530,049)
Balance - September 30, 202417,820,078 63,668,995 19,903,649 101,392,722 

A类B级股C类总计
Balance - June 30, 202330,520,078 42,638,190 30,525,626 103,683,894 
董事获得的股票奖励— 20,112 — 20,112 
账目余额 - 2023年9月30日30,520,078 42,658,302 30,525,626 103,704,006 

A类B级股C类总计
余额-2023年12月31日28,644,807 56,036,067 25,544,229 110,225,103 
股份类别转换(1,700,000)7,340,580 (5,640,580)— 
奖励分配— 761,261 — 761,261 
行使认股权— 245,779 — 245,779 
董事分享奖项授予— 20,383 — 20,383 
股份回购(9,124,729)(735,075)— (9,859,804)
截至2024年9月30日的结余17,820,078 63,668,995 19,903,649 101,392,722 

A类B级股C类总计
2022年12月31日的资产负债表30,520,078 42,042,155 30,525,626 103,087,859 
奖励分成— 735,013 — 735,013 
董事分享奖励获得— 44,892 — 44,892 
股份回购— (163,758)— (163,758)
账目余额 - 2023年9月30日30,520,078 42,658,302 30,525,626 103,704,006 

2024年5月8日，公司达成协议，以每股$__向外界回购_百万A类普通股（「股份回购」）。总购买价为$__百万。公司回购交易后回购的普通股已被取消。 9.1 2024年5月8日，公司达成协议，以每股$__向外界回购_百万A类普通股（「股份回购」）。总购买价为$__百万。公司回购交易后回购的普通股已被取消。12.00 2024年5月8日，公司达成协议，以每股$__向外界回购_百万A类普通股（「股份回购」）。总购买价为$__百万。公司回购交易后回购的普通股已被取消。109.52024年5月8日，公司达成协议，以每股$__向外界回购_百万A类普通股（「股份回购」）。总购买价为$__百万。公司回购交易后回购的普通股已被取消。

2024年8月7日，董事会授权回购公司的普通股，金额合计为$150.0百万（「授权」），根据该授权，公司可以通过公开市场回购和/或私下协商交易回购股份。该授权将在公司回购已授权股份的全部价值后到期，除非由董事会提前终止。截至2024年9月30日止三个月内， 0.5百万B类普通股，总成本为$10.0百万美元，平均价格为每普通股$18.87 股份已被回购并取消，剩余$140.0百万可用于授权下的购买。

一般而言，持有A类普通股和B类普通股的股东每持有一股普通股即拥有一票表决权，而C类普通股则没有表决权，除非法律要求。然而，每位持有A类普通股和B类普通股的股东在表决权（直接、间接或视为为美国联邦所得税目的而定）上有限制，限制次数等于所持有的普通股数量。 9.5所有板块的总投票权中的%（或者，对于我们的B类普通股股东进行类别表决时，例如选出或罢免非由某些股东根据股东协议和我们的章程指派的董事以外的董事，最多为总合投票权的%）。此外，董事会可能限制股东的表决权，当认为有必要避免对公司或任何直接或间接股东或其联属公司造成某些重大不利税务、法律或监管后果时。 14.92董事会可能会限制股东的表决权，以避免对公司或任何直接或间接股东或其联属公司造成某些重大不利税务、法律或监管后果。


31
汉密尔顿保险集团有限公司。
附注：未经查核之缩表合并财务报表注释。
公司章程规定，任何转让（无论是否有价值）从（i）A类普通股到B类普通股和（ii）C类普通股到B类普通股，股份将自动重新指定。当A类成员向公司发出通知指称某些B类普通股由A类成员或其被允许的受让人持有，如果经董事会简单多数批准，则这些B类普通股应自动转换为相同数量的A类普通股。已发行的B类普通股数量将减少，使转换为A类普通股的已发行B类普通股之总数，并相应地增加A类普通股的已发行及授权数量。当A类成员和/或B类成员向公司发出通知，经董事会简单多数批准，不得出于不合理的原因拒绝或迟滞，这些A类普通股和/或B类普通股将被重新指定为C类普通股。在这种情况下，A类普通股和/或B类普通股的授权及已发行数量将减少，使转换为C类普通股的这些股份之总数，并相应地增加C类普通股的已发行及授权数量。当C类成员向公司发出通知，经董事会简单多数批准，不得出于不合理的原因拒绝或迟滞，这些C类普通股将被重新指定为B类普通股。在这种情况下，C类普通股的授权及已发行数量将减少，使转换为B类普通股的这些C类普通股之总数，并相应地增加B类普通股的已发行及授权数量。

于2024年9月13日， 1.7根据A级会员的要求，经董事会批准，将100万股A级普通股转换为C级普通股。

截至2024年9月30日止的三个月和九个月内，已分别售出百万股。 6.8百万股和 7.3分别有100万及200万股C级普通股根据各自C级股东的要求转换为B级普通股并获董事会批准。

12. 每股盈利

下表列出基本和稀释每股普通股收益（损失）的计算，分别如下：

结束于三个月的期间九个月结束了
九月三十日，九月三十日，
（以千美元为单位，每股信息除外）2024202320242023
分子:
净利润（净亏损）归属于普通股股东
$78,250 $43,583 $366,509 $131,862 
分母:
$101,934 103,704 106,240 103,711 
稀释证券的影响4,425 1,720 3,986 1,260 
$106,359 105,424 110,226 104,971 
每股基本盈（亏）利归属于
普通股东		$0.77 $0.42 $3.45 $1.27 
每股稀释盈（亏）利归属于
普通股东		$0.74 $0.41 $3.33 $1.26 

在2024年9月30日结束的每个三个月和九个月中，有 无 股票认股权计划下可供发行的普通股被排除在稀释每股盈利（亏损）的计算之外，因为假定行使或发行这些股份将对稀释有抗稀释效应。

截至2023年9月30日止的每个三个和九个月，都有普通股可供发行的薪酬计划，该等股份未纳入稀释每股收益（损失）的计算中，因为假定行使或发行该等股份将对股份稀释产生反效应。 无 普通股可供发行的股份都未纳入稀释每股收益（损失）的计算，因为假定行使或发行这些股份将对稀释产生反效应。


32
汉密尔顿保险集团有限公司。
附注：未经查核之缩表合并财务报表注释。
13. 随后的事件

飓风米尔顿

2024年10月，飓风米尔顿在佛罗里达州西埃斯塔基附近登陆，向东北方向横跨整个州，进入大西洋。公司估计，飓风米尔顿造成的损失在未经再保险扣除后将在美金范围内。30$百万70公司对于飓风米尔顿的损失估计存在较大不确定性，这是由于最近事件发生以及可用资讯的初步性质等因素。将报告此次事件的损失数字将在公司2024年第四季度的财务结果中。




33

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the "Selected Consolidated Financial Data" and our audited consolidated financial statements and related notes thereto included in the Group's Annual Report on Form 10-K for the year ended December 31, 2023 (the "Form 10-K"). In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the sections entitled "Special Note Regarding Forward-Looking Statements" in this Quarterly Report and "Risk Factors" included in the Form 10-K. We do not undertake any obligation to update any forward-looking statements or other statements we may make in the following discussion or elsewhere in this document even though these statements may be affected by events or circumstances occurring after the forward-looking statements or other statements were made.






34


Index To Management's Discussion and Analysis of Financial Condition and Results of Operations

Page
    


35

Overview

We are a global specialty insurance and reinsurance company founded in Bermuda in 2013, enhanced by data and technology, focused on producing sustainable underwriting profitability and delivering significant shareholder value. We intend to continue growing our diverse book of business by responding to changing market conditions, prudently managing our capital, and driving sustainable shareholder returns.

We harness multiple drivers to create shareholder value, including diverse underwriting operations supported by proprietary technology and a team of over 550 full-time employees, a strong balance sheet, and a unique investment management relationship with Two Sigma. We operate globally, with underwriting operations in Lloyd’s, Ireland, Bermuda, and the United States.

We operate three principal underwriting platforms (Hamilton Global Specialty, Hamilton Select and Hamilton Re) that are categorized into two reporting business segments (International and Bermuda):

•International: International consists of business written out of our Lloyd’s syndicate and subsidiaries based in the United Kingdom, Ireland, and the United States, and includes the Hamilton Global Specialty and Hamilton Select platforms.

•Hamilton Global Specialty focuses predominantly on commercial specialty and casualty insurance for medium to large-sized accounts and specialty reinsurance products written by Lloyd’s Syndicate 4000 and HIDAC. Syndicate 4000, a leading Lloyd’s syndicate, generates a significant portion of premium from the U.S. E&S market and has ranked among the most profitable and least volatile syndicates at Lloyd’s over the last 10 years.

•Hamilton Select, our recently launched U.S. domestic E&S carrier, writes casualty insurance for small to mid-sized clients in the hard-to-place niche of the U.S. E&S market. We believe it presents meaningful and profitable growth opportunities in the near to long term, further expanding our footprint in the U.S. E&S market.

•Bermuda: Bermuda consists of the Hamilton Re platform, made up of Hamilton Re and Hamilton Re US. Hamilton Re writes property, casualty and specialty reinsurance business on a global basis and also offers high excess Bermuda market specialty insurance products, predominantly for large U.S. commercial risks. Hamilton Re US writes casualty and specialty reinsurance business on a global basis.

We seek to prudently manage our capital with the objective of effectively navigating different market conditions and generating strong underwriting margins throughout all market cycles. Our scaled and diversified platforms and product offerings and our broad industry relationships provide significant opportunity to underwrite our chosen classes of property, casualty and specialty insurance and reinsurance as market opportunities arise. Leveraging our disciplined underwriting approach, balance sheet strength and flexibility, and real-time technology prowess, we can respond dynamically to capture opportunities as markets evolve.

One of our key strategic priorities is sustainable underwriting profitability on the business we write. Our data-driven and disciplined underwriting processes position us to intelligently price and structure our products and our business portfolio. We maintain trusted and long-standing relationships with our clients and brokers, who we believe will continue to provide us with increased access to attractive business.

We see growth opportunities in both the insurance and reinsurance markets in which we operate and intend to pursue disciplined growth across our underwriting platforms. In recent years the E&S market has benefited from a strong rate environment and increased submissions as business has shifted into the non-admitted market from the admitted market. Non-admitted insurers are able to cover unique and hard-to-place risks because they have flexibility of rate and form and can accommodate the unique needs of insureds who are unable to obtain coverage from admitted carriers. We believe the access our three underwriting platforms have to U.S. E&S insurance business will allow us to build a robust and diversified book of business and achieve our profitable growth objectives throughout various market cycles.


36

Reinsurance business offers a particularly attractive opportunity given the favorable rating environment and discipline in the market and is expected to accelerate growth opportunities for us in the near term in many areas. A number of factors, including economic and social inflation and continued high interest rates are driving the most favorable market conditions seen in decades. We are a recognized market with deep client and broker relationships and have low counter-party credit concentration with many of our insurance partners, providing ample headroom for us to grow. We are well positioned to deploy capital quickly, efficiently and profitably through writing more reinsurance business, as well as retaining more of our own business.

Our strong, sustainable underwriting operations are complemented by our unique investment portfolio, which consists of the Two Sigma Hamilton Fund ("TS Hamilton Fund" or "TSHF"), and our investment grade fixed income portfolio, which is currently benefiting from strong interest rates. We plan to continue to optimize our investment portfolio through a balanced allocation of invested assets and maintain the flexibility to adjust this allocation as needed. We believe our strategy of disciplined underwriting growth, balanced with our investment platform, will drive our ability to create shareholder value.

We have a unique and long-term investment management relationship with Two Sigma. Founded in 2001, Two Sigma is a premier investment manager with a strong track record, driven by a differentiated application of technology and data science. The TS Hamilton Fund is a dedicated fund-of-one managed by Two Sigma with exposures to certain Two Sigma macro and equity strategies and is designed to provide low-correlated absolute returns, primarily by combining multiple hedged and leveraged systematic investment strategies with proprietary risk management investment optimization and execution techniques. The TS Hamilton Fund invests in a broad set of financial instruments and is primarily focused on liquid strategies in global equity, FX markets, exchange-listed and over the counter options (and their underlying instruments) and other derivatives. This liquidity profile fits well with our business, while also providing the benefit of access to a dedicated fund-of-one.

Two Sigma has broad discretion to allocate invested assets to different opportunities. Its current investments include Two Sigma Futures Portfolio, LLC ("FTV"), Two Sigma Spectrum Portfolio, LLC ("STV") and Two Sigma Equity Spectrum Portfolio, LLC ("ESTV"). The TS Hamilton Fund’s trading and investment activities are not limited to these strategies and techniques and the TS Hamilton Fund is permitted to pursue any investment strategy and/or technique that Two Sigma determines in its sole discretion to be appropriate for the TS Hamilton Fund from time to time.

Effects of Inflation

Historically, inflation has not had a material effect on the Company’s consolidated results of operations. However, global economic inflation has recently increased and there is a risk that it will remain elevated for an extended period. Inflation is subject to many macroeconomic factors beyond our control, including global banking policy, political risks, and supply chain issues. An inflationary economy may result in higher losses and loss adjustment expenses, negatively impact the performance of our fixed income security investment portfolio, or increase our operating expenses, among other unfavorable effects. The ultimate effects of an inflationary or deflationary period are subject to high uncertainty and cannot be accurately estimated until the actual costs are known.

In the wake of a catastrophe loss there is a risk of specific inflationary pressures in the local economy, which is considered in our catastrophe loss models. Similarly, the Company incorporates the anticipated effects of inflation in our ultimate estimate of the reserves for unpaid losses and loss adjustment expenses on certain long-tail lines of business. As with general economic inflation, the actual effects of inflation on reserves for losses and loss adjustment expenses and results of operations cannot be accurately known until all of the underlying claims are ultimately settled.

Taxes

On December 27, 2023, the Bermuda Government enacted a 15% corporate income tax that will generally become effective for Bermuda domiciled entities on or after January 1, 2025. The legislation defers the effective date until January 1, 2030 for so long as the consolidated group operates in six or fewer jurisdictions, has less than €50 million in tangible assets and none of its Bermuda entities are subject to the Income Inclusion Rule in any other jurisdiction. The act is a response to the OECD Pillar 2 worldwide minimum tax that would otherwise require a top-up tax be paid on Bermuda-sourced income to non-Bermuda jurisdictions such that a 15% minimum effective tax rate is achieved for Hamilton Group’s Bermuda entities. Hamilton Group expects to be exempt from the worldwide minimum tax until January 1, 2030, pursuant to an exemption similar to that available in Bermuda. The act includes a provision referred to as the economic transition adjustment, which is intended to provide a fair and equitable transition into the tax regime, and, as a result, the Company recorded a deferred tax benefit of $35.1 million in the year ended December 31, 2023.

37


Summary of Critical Accounting Estimates

Our critical accounting estimates include "Reserve for Losses and Loss Adjustment Expenses", "Premiums Written and Earned", "Ceded Reinsurance and Unpaid Losses and Loss Adjustment Expenses Recoverable", and "Fair Value of Investments" and are discussed in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Group’s Form 10-K for the year ended December 31, 2023. There have been no material changes to our critical accounting estimates as disclosed in the Form 10-K for the year ended December 31, 2023.


38

Summary Results of Operations

Consolidated Results of Operations

The following is a comparison of selected data for our consolidated results of operations:
Three Months Ended
September 30,
($ in thousands, except per share amounts)20242023
Gross premiums written$553,401 $474,123 
Net premiums written$477,896 $383,566 
Net premiums earned$448,795 $337,036 
Third party fee income(1)
4,464 2,301 
Claims and Expenses
Losses and loss adjustment expenses273,632 191,577 
Acquisition costs102,201 78,537 
Other underwriting expenses(2)
48,332 44,357 
Underwriting income (loss)(3)
29,094 24,866 
Net realized and unrealized gains (losses) on investments48,228 47,343 
Net investment income (loss)(4)
17,330 8,069 
Total net realized and unrealized gains (losses) on
   investments and net investment income (loss)
65,558 55,412 
Other income (loss), excluding third party fee income(1)
— 85 
Net foreign exchange gains (losses)(5,973)1,432 
Corporate expenses(2)
14,060 18,678 
Amortization of intangible assets5,204 2,794 
Interest expense5,351 5,288 
Income tax expense (benefit)3,029 2,387 
Net income (loss)61,035 52,648 
Net income (loss) attributable to non-controlling interest(5)
(17,215)9,065 
Net income (loss) attributable to common shareholders$78,250 $43,583 
Diluted income (loss) per share attributable to common shareholders$0.74 $0.41 
Key Ratios
Attritional loss ratio - current year53.2 %54.8 %
Attritional loss ratio - prior year development(0.7)%(0.1)%
Catastrophe loss ratio - current year11.5 %3.9 %
Catastrophe loss ratio - prior year development(3.0)%(1.8)%
Loss and loss adjustment expense ratio61.0 %56.8 %
Acquisition cost ratio22.8 %23.3 %
Other underwriting expense ratio9.8 %12.5 %
Combined ratio93.6 %92.6 %
Return on average common shareholders' equity3.4 %2.5 %



39

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

As at
Book ValueSeptember 30,
2024		June 30,
2024
Tangible book value per common share$21.89 $21.04 
Change in tangible book value per common share4.0 %
Book value per common share$22.82 $21.96 
Change in book value per common share3.9 %
Balance Sheet Data
Total assets$7,826,547 $7,623,103 
Total shareholders' equity$2,313,626 $2,238,547 

(1) 第三方费用收入是根据SEC Regulation S-k第10(e)条规定的非GAAP财务指标。 与其他收入（亏损）进行调解，最相近的GAAP财务指标，同时也包括另外的收入（亏损），不包括截至2024年和2023年9月30日的三个月中每个$10万或以下的第三方费用收入。更多详细信息请参考「财务状况和营运成果管理层讨论与分析 - 非GAAP措施」。
(2) 其他承销费用是SEC《S-K条例》第10(e)项中定义的非GAAP财务指标。对于最相应的GAAP财务指标——一般及行政费用的调解，还包括了2024年第三季度结束时的企业费用1410万美元，分别是2018年和2019年的1870万美元。详情请参阅「管理层讨论与财务状况分析及运作结果——非GAAP指标」。
(3) 承销收入（损失）是根据SEC S-k条例第10（e）项所定义的非GAAP财务指标。有关详细信息，请参阅《管理层财务状况与营运业绩讨论－非GAAP措施》。
(4) 净投资收益（损失）已扣除投资管理费后呈现。
(5) 详细内容请参阅《管理层讨论及分析—财务状况和营运成果—综合营运成果—企业和其他》。

营运亮点

以下重要事项影响了截至2024年9月30日和2023年9月30日结束的三个月内的合并营运结果:

已收取的保险费 截至2024年9月30日止三个月，已收取的保险费分别为55340万和47410万美元，较2023年相应增加。已收取的保险费增加主要是由我们的伤亡、特别及财产再保险和财产保险业务所推动。此增加乃是由新业务、现有业务参与度增加以及跨多个业务类别的强劲价格环境所引起的。

承保结果 综合损益比率分别为2024年9月30日和2023年的93.6%和92.6%。增加主要是由于灾害损失比率上升，部分抵消了其他承保费用比率、逐年损失比率和收购成本比率的下降。


40

损失及损失调整费用

截至三个月结束
（以千元为单位）当前
1月		已赚取净保费的%往年发展已赚取净保费的%亏损及损失调整费用净保费收入占比%
2024年9月30日
因意外事件引起的损失$238,554 53.2 %$(3,209)(0.7)%$235,345 52.5 %
灾害性损失51,699 11.5 %(13,412)(3.0)%38,287 8.5 %
总计$290,253 64.7 %$(16,621)(3.7)%$273,632 61.0 %
2023年9月30日
因意外事件引起的损失$184,774 54.8 %$(413)(0.1)%$184,361 54.7 %
灾害性损失13,226 3.9 %(6,010)(1.8)%7,216 2.1 %
总计$198,000 58.7 %$(6,423)(1.9)%$191,577 56.8 %

固有损失比率 - 当年 截至2024年9月30日的三个月内，合并比率为53.2％，较2023年9月30日的三个月内的54.8％下降了1.6个百分点。此下降主要是由于2024年9月30日结束的三个月没有大幅损失，部分抵销了由于社会通货膨胀导致某些意外伤亡类别的损失率略微增加。

前一年的损失率 截至2024年9月30日的三个月，我们业绩比截至2023年9月30日的三个月好0.7%，自2023年9月30日结束的三个月的0.1%增加了0.6个百分点。2024年9月30日的三个月的故障损失率-前一年，主要受到国际和百慕达业务中财产和特种类别的有利发展的推动，部分抵消了国际和百慕达业务中事故类别的不利发展。此外，依据附注7中讨论的损失组合转移（"LPT"）所保护的事故业务，报告了110万美元的收益。截至2023年9月30日的三个月的故障损失率-前一年，在国际和百慕达业务中，主要受到特种类别的有利前一年发展的推动。这在各国际和百慕达业务中的事故类别以及百慕达业务中的财产类别中得到部分抵消。 再保险业务， 在2023年9月30日结束的三个月，国际和百慕达业务中的故障损失率-前一年主要受到特种类别的有利前一年发展的推动。这在各国际和百慕达业务中的事故类别以及百慕达业务中的财产类别中得到部分抵消。

灾害损失-当年及前年发展 截至2024年9月30日三个月结束时，灾害损失为3830万美元和720万美元，分别为2024年和2023年。截至2024年9月30日三个月结束时的灾害损失由飓风海伦（3390万美元）、卡尔加里冰雹暴雨（1230万美元）和飓风黛比（550万美元）驱动，部分抵消了1340万美元的有利前年发展。截至2023年9月30日三个月结束时的灾害损失主要由夏威夷野火（840万美元）、飓风伊黛莉亚（660万美元）、佛蒙特洪水（500万美元）和某些较小的风暴事件（0.2万美元）驱动，部分抵消了2023年6月严重对流风暴的有利发展（690万美元）和600万美元的有利前年发展。


41

投资净实现及未实现收益（损失）和净投资收益（损）

结束于三个月的期间
九月三十日，
（以千元为单位）20242023
投资方面的总净实现及未实现收益（损失）和净投资收入（损失）- TSHF(1)
$(28,291)$60,404 
投资方面的总净实现及未实现收益（损失）和净投资收入（损失）- 其他93,849 (4,992)
$65,558 $55,412 
归属非控股权益的净利润（损失）- TSHF$(17,215)$9,065 
(1) 在非控股利益表现激励津贴分派之前

投资实现及未实现收益（亏损）净总计及投资收入净额（亏损） - 中华人民共和国，在非控股权益之前，截至二零二四年九月三十日止三个月分别回报了 28.3 百万美元的亏损和 60.4 百万美元的收入。这包括基金的回报（扣除投资管理费用）。

基金投资收入，扣除非控制利益 - TSHF截至2024年9月30日和2023年的三个月，赚取1110万美元亏损和5130万美元收入。这包括基金的收益，扣除投资管理费用和绩效激励分配。投资经理有资格获得的总激励分配包含在我们的基本报表中的“归属于非控股利益的净利润（亏损）”中。

TS Hamilton基金在截至2024年9月30日和2023年的三个月内，扣除投资管理费用和绩效激励分配后，实现了(0.6)%和3.1%的回报。

截至2024年9月30日的三个月，TSHF的亏损是由Two Sigma Futures Portfolio, LLC (“FTV”)的宏观经济交易所引领的。在FTV内，股票、货币和固收均遭遇损失。在单一股票交易中，TSHF从Two Sigma Equity Spectrum Portfolio, LLC (“ESTV”)的非美国股票中看到了正面贡献，部分被Two Sigma Spectrum Portfolio, LLC ("STV")的美国股票的损失抵消。在ESTV内，欧洲、亚洲和泛美洲最先获利，依次降低。

截至2023年9月30日，TSHF从单支股票交易和宏观经济交易中获得正收益。收益主要来自STV的美国单支股票，其次是FTV的宏观经济交易，再者是ESTV的非美国股票。FTV的收益主要来自固收证券和商品，而损失主要来自股票、信贷和货币。在ESTV中，东亚和泛美交易获利，但欧洲和中国并未获利。

投资项目的总实现及未实现收益（亏损）和净投资收入（亏损）- 其他分别为2024年9月30日及2023年9月30日三个月结束时的收入回报为$9380万和$500万的亏损。2024年9月30日三个月结束时的收入主要来自于具较高收益的资产的投资收入，以及由于美国国库利率下降而产生的确定市价回报。而2023年9月30日三个月结束时的亏损主要来自于美国国库利率上升及其他宏观经济因素的负面确定市价影响，抵消了投资收益。


42

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: the Chief Executive Officer of the consolidated group.

We evaluate the performance of reportable segments based on their 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), other income (loss) not incurred by the reportable segments, 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).


43

International Segment

Three Months Ended
September 30,
($ in thousands)20242023
Gross premiums written$325,525 $307,140 
Net premiums written$268,106 $234,621 
Net premiums earned$225,244 $178,632 
Third party fee income4,170 2,115 
Claims and Expenses
Losses and loss adjustment expenses130,135 97,820 
Acquisition costs59,713 47,236 
Other underwriting expenses34,143 31,634 
Underwriting income (loss)$5,423 $4,057 
Attritional losses - current year$124,519 $97,554 
Attritional losses - prior year development(3,279)(9,495)
Catastrophe losses - current year14,384 9,169 
Catastrophe losses - prior year development(5,489)592 
Losses and loss adjustment expenses$130,135 $97,820 
Attritional loss ratio - current year55.3 %54.6 %
Attritional loss ratio - prior year development(1.5)%(5.3)%
Catastrophe loss ratio - current year6.4 %5.1 %
Catastrophe loss ratio - prior year development(2.4)%0.4 %
Losses and loss adjustment expense ratio57.8 %54.8 %
Acquisition cost ratio26.5 %26.4 %
Other underwriting expense ratio13.3 %16.5 %
Combined ratio97.6 %97.7 %


44

Gross Premiums Written

Three Months Ended
September 30,
($ in thousands)20242023
Property$51,441 $40,609 
Casualty144,107 146,005 
Specialty129,977 120,526 
Total$325,525 $307,140 

Gross premiums written increased by $18.4 million, or 6.0%, from $307.1 million for the three months ended September 30, 2023 to $325.5 million for the three months ended September 30, 2024, primarily driven by growth and improved pricing in property insurance and specialty insurance and reinsurance classes.

Net Premiums Earned

Three Months Ended
September 30,
($ in thousands)20242023
Property$37,033 $28,028 
Casualty86,062 62,254 
Specialty102,149 88,350 
Total$225,244 $178,632 

Net premiums earned increased by $46.6 million, or 26.1%, from $178.6 million for the three months ended September 30, 2023 to $225.2 million for the three months ended September 30, 2024. The increase was primarily driven by growth in casualty and property insurance classes and specialty insurance and reinsurance classes. Casualty insurance growth was primarily driven by U.S. excess and surplus lines, mergers & acquisitions, professional lines, environmental and U.S. energy; property insurance growth was driven by property binders; specialty insurance growth was primarily driven by accident & health and political violence; and specialty reinsurance growth was primarily attributable to surety reinsurance.

Third Party Fee Income

Three Months Ended
September 30,
($ in thousands)20242023
Third party fee income$4,170 $2,115 

Third party fee income increased by $2.1 million, or 97.2%, from $2.1 million for the three months ended September 30, 2023 to $4.2 million for the three months ended September 30, 2024. The increase was primarily due to favorable terms of a renewed syndicate management arrangement and an increase in consortium fees.


45

Losses and Loss Adjustment Expenses

For the Three Months Ended
($ in thousands)Current
year		% of net premiums earnedPrior year development% of net premiums earnedLosses and loss adjustment expenses% of net premiums earned
September 30, 2024
Attritional losses$124,519 55.3 %$(3,279)(1.5)%$121,240 53.8 %
Catastrophe losses14,384 6.4 %(5,489)(2.4)%8,895 4.0 %
Total$138,903 61.7 %$(8,768)(3.9)%$130,135 57.8 %
September 30, 2023
Attritional losses$97,554 54.6 %$(9,495)(5.3)%$88,059 49.3 %
Catastrophe losses9,169 5.1 %592 0.4 %9,761 5.5 %
Total$106,723 59.7 %$(8,903)(4.9)%$97,820 54.8 %

The loss ratio for the three months ended September 30, 2024 was 57.8%, compared to 54.8% for the three months ended September 30, 2023, an increase of 3.0 percentage points. The increase was primarily driven by higher current year catastrophe and attritional losses, and a lower contribution from favorable prior year development for the three months ended September 30, 2024.

Attritional loss ratio - current year for the three months ended September 30, 2024 was 55.3% compared to 54.6% for the three months ended September 30, 2023, an increase of 0.7 percentage points. The increase was driven by a change in business mix and a modest increase in the loss ratio for certain casualty insurance classes as a result of social inflation.

Attritional loss ratio - prior year for the three months ended September 30, 2024 was a favorable 1.5% compared to a favorable 5.3% for the three months ended September 30, 2023, an increase of 3.8 percentage points. The favorable attritional loss ratio - prior year for the three months ended September 30, 2024 was primarily driven by favorable development in property insurance and specialty reinsurance classes, partially offset by unfavorable development in certain casualty insurance classes, including one specific large loss. In addition, casualty business protected by the LPT discussed in Note 7, Reinsurance, recorded a gain of $1.1 million.

Catastrophe losses - current year and prior year were $8.9 million and $9.8 million for the three months ended September 30, 2024 and 2023, respectively. Catastrophe losses for the three months ended September 30, 2024 were driven by Hurricane Helene ($12.9 million) and Hurricane Debby ($1.5 million), partially offset by favorable prior year development of $5.5 million. Catastrophe losses for the three months ended September 30, 2023 were primarily driven by the Vermont floods ($4.5 million), Hurricane Idalia ($3.0 million), the Hawaii wildfires ($2.7 million) and unfavorable prior year development of $0.6 million, partially offset by favorable development on the June 2023 severe convective storms ($1.0 million).


46

Acquisition Costs

Three Months Ended
Acquisition Costs% of Net Premiums Earned
($ in thousands)September 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
'24 vs '23
point r
Property$13,269 $9,936 35.8 %35.5 %0.3 
Casualty15,404 11,169 17.9 %17.9 %— 
Specialty31,040 26,131 30.4 %29.6 %0.8 
Total$59,713 $47,236 26.5 %26.4 %0.1 

For the three months ended September 30, 2024, the acquisition cost ratio was 26.5%, compared to 26.4% for the three months ended September 30, 2023, an increase of 0.1 percentage points. The modest increase was primarily driven by property insurance and specialty reinsurance classes as a result of changes in business mix.

Other Underwriting Expenses and Other Underwriting Expense Ratios

Three Months Ended
September 30,
($ in thousands)20242023
Other underwriting expenses$34,143 $31,634 
Other underwriting expense ratio13.3 %16.5 %

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

Other underwriting expenses for the three months ended September 30, 2024 were $34.1 million, an increase of $2.5 million, or 7.9%, compared to $31.6 million for the three months ended September 30, 2023. The increase was primarily driven by an increase in salary and compensation costs, IT costs and professional fees.

The other underwriting expense ratio for the three months ended September 30, 2024 and 2023 decreased over the same period from 16.5% to 13.3% , primarily as a result of the growth in the premium base.

47

Bermuda Segment

Three Months Ended
September 30,
($ in thousands)20242023
Gross premiums written$227,876 $166,983 
Net premiums written$209,790 $148,945 
Net premiums earned$223,551 $158,404 
Third party fee income294 186 
Claims and Expenses
Losses and loss adjustment expenses143,497 93,757 
Acquisition costs42,488 31,301 
Other underwriting expenses14,189 12,723 
Underwriting income (loss)$23,671 $20,809 
Attritional losses - current year$114,035 $87,220 
Attritional losses - prior year development70 9,082 
Catastrophe losses - current year37,315 4,057 
Catastrophe losses - prior year development(7,923)(6,602)
Losses and loss adjustment expenses$143,497 $93,757 
Attritional loss ratio - current year51.0 %55.1 %
Attritional loss ratio - prior year development0.0 %5.7 %
Catastrophe loss ratio - current year16.7 %2.6 %
Catastrophe loss ratio - prior year development(3.5)%(4.2)%
Losses and loss adjustment expense ratio64.2 %59.2 %
Acquisition cost ratio19.0 %19.8 %
Other underwriting expense ratio6.2 %7.9 %
Combined ratio89.4 %86.9 %

Gross Premiums Written

Three Months Ended
September 30,
($ in thousands)20242023
Property$68,560 $52,394 
Casualty128,891 96,219 
Specialty30,425 18,370 
Total$227,876 $166,983 

For the three months ended September 30, 2024, gross premiums written increased by $60.9 million, or 36.5%, from $167.0 million for the three months ended September 30, 2023 to $227.9 million for the three months ended September 30, 2024. The increase was primarily driven by new business, increased participations and a strong rate environment in our casualty reinsurance, property reinsurance and specialty reinsurance classes.


48

Net Premiums Earned

Three Months Ended
September 30,
($ in thousands)20242023
Property$84,733 $58,508 
Casualty107,886 74,094 
Specialty30,932 25,802 
Total $223,551 $158,404 

For the three months ended September 30, 2024, the Bermuda segment's net premiums earned increased by $65.1 million, or 41.1%, from $158.4 million for the three months ended September 30, 2023 to $223.6 million for the three months ended September 30, 2024. The increase was primarily driven by new business, volume growth and a strong rate environment in casualty reinsurance and property reinsurance. The most significant drivers of the increase were general liability, professional lines and property treaty classes.

Third Party Fee Income

Three Months Ended
September 30,
($ in thousands)20242023
Third party fee income$294 $186 

Third party fee income increased by $0.1 million, from $0.2 million for the three months ended September 30, 2023 to $0.3 million for the three months ended September 30, 2024.


49

Losses and Loss Adjustment Expenses

For the Three Months Ended
($ in thousands)Current
year		% of net premiums earnedPrior year development% of net premiums earnedLosses and loss adjustment expenses% of net premiums earned
September 30, 2024
Attritional losses$114,035 51.0 %$70 0.0 %$114,105 51.0 %
Catastrophe losses37,315 16.7 %(7,923)(3.5)%29,392 13.2 %
Total$151,350 67.7 %$(7,853)(3.5)%$143,497 64.2 %
September 30, 2023
Attritional losses$87,220 55.1 %$9,082 5.7 %$96,302 60.8 %
Catastrophe losses4,057 2.6 %(6,602)(4.2)%(2,545)(1.6)%
Total$91,277 57.7 %$2,480 1.5 %$93,757 59.2 %

The loss ratio for the three months ended September 30, 2024 was 64.2%, compared to 59.2% for the three months ended September 30, 2023, an increase of 5.0 percentage points. The increase was primarily driven by higher catastrophe losses, partially offset by lower current and prior year attritional losses for the three months ended September 30, 2024.

Attritional loss ratio - current year for the three months ended September 30, 2024 was 51.0% compared to 55.1% for the three months ended September 30, 2023, a decrease of 4.1 percentage points. The decrease was primarily driven by a change in business mix and no large losses for the three months ended September 30, 2024, partially offset by a modest increase in the loss ratio for certain casualty reinsurance classes as a result of social inflation.

Attritional loss ratio - prior year for the three months ended September 30, 2024 was Nil, compared to an unfavorable 5.7% for the three months ended September 30, 2023, a decrease of 5.7 percentage points. The attritional loss ratio - prior year for the three months ended September 30, 2024 was primarily driven by an increase in casualty reinsurance, partially offset by favorable development in property and specialty classes.

Catastrophe losses - current year and prior year were $29.4 million for the three months ended September 30, 2024 and favorable development of $2.5 million for the three months ended September 30, 2023. Catastrophe losses for the three months ended September 30, 2024 were driven by Hurricane Helene ($21.0 million), the Calgary hailstorms ($12.3 million), and Hurricane Debby ($4.0 million), partially offset by favorable prior year development of $7.9 million. Catastrophe losses for the three months ended September 30, 2023 were primarily driven by favorable development on the June 2023 severe convective storms ($5.9 million) and favorable prior year development of $6.6 million, partially offset by the Hawaii wildfires ($5.7 million), Hurricane Idalia ($3.6 million), and various smaller wind and flood events ($0.7 million).


50

Acquisition Costs

Three Months Ended
Acquisition Costs% of Net Premiums Earned
($ in thousands)September 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
'24 vs '23
point r
Property$9,255 $7,280 10.9 %12.4 %(1.5)
Casualty26,194 17,788 24.3 %24.0 %0.3 
Specialty7,039 6,233 22.8 %24.2 %(1.4)
Total$42,488 $31,301 19.0 %19.8 %(0.8)

The acquisition cost ratio for the three months ended September 30, 2024 decreased to 19.0%, compared to 19.8% for the three months ended September 30, 2023. The decrease was primarily driven by the change in business mix.

Other Underwriting Expenses and Other Underwriting Expense Ratios

Three Months Ended
September 30,
($ in thousands)20242023
Other underwriting expenses$14,189 $12,723 
Other underwriting expense ratio6.2 %7.9 %

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

For the three months ended September 30, 2024, other underwriting expenses increased by $1.5 million or 11.5%, from $12.7 million for the three months ended September 30, 2023 to $14.2 million for the three months ended September 30, 2024. The increase was primarily driven by an increase in salary and compensation costs and professional fees.

The other underwriting expense ratios for the three months ended September 30, 2024 and 2023 decreased over the same period from 7.9% to 6.2%, as a result of the growth in premium base.


51

Corporate and Other

Total Net Realized and Unrealized Gains (Losses) on Investments and Net Investment Income (Loss)

The components of total net realized and unrealized gains (losses) on investments and net investment income (loss) are as follows:

Three Months Ended
September 30,
($ in thousands)20242023
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - TSHF(1)
$(28,291)$60,404 
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other93,849 (4,992)
$65,558 $55,412 
Net income (loss) attributable to non-controlling interest - TSHF$(17,215)$9,065 
(1) Prior to non-controlling interest performance incentive allocation

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - TSHF, prior to non-controlling interest, returned a loss of $28.3 million and income of $60.4 million for the three months ended September 30, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees.

Net investment income, net of non-controlling interest - TSHF, returned a loss of $11.1 million and income of $51.3 million for the three months ended September 30, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees and performance incentive allocations. The aggregate incentive allocation to which the investment manager is entitled is included in "Net income (loss) attributable to non-controlling interests" in our GAAP financial statements.

TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of (0.6)% and 3.1% for the three months ended September 30, 2024 and 2023, respectively.

For the three months ended September 30, 2024, losses in TSHF were led by macroeconomic trading in FTV. Within FTV, losses were experienced in equities, currencies, and fixed income. In single name equities trading, TSHF saw positive contributions from non-U.S. equities within ESTV, which were partially offset by losses from U.S. equities within STV. Within ESTV, gains were led by Europe, East Asia, and Pan-America, in decreasing order.

For the three months ended September 30, 2023, TSHF generated positive returns in single name equities trading and macroeconomic trading. Gains were led by U.S. single name equities within STV, followed by macroeconomic trading in FTV, and then non-U.S. equities within ESTV. FTV gains primarily related to fixed income securities and commodities, while losses were driven by equities, credit and currencies. In ESTV, trading was profitable in East Asia and Pan-America, but not in Europe or China.

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other, returned income of $93.8 million and a loss of $5.0 million for the three months ended September 30, 2024 and 2023, respectively. Income for the three months ended September 30, 2024 was primarily driven by investment income on higher yielding assets and positive mark-to-market returns as a result of decreasing U.S. treasury interest rates in the period. Losses for the three months ended September 30, 2023 were primarily driven by the negative mark-to-market impact of rising U.S. treasury interest rates and other macroeconomic factors offsetting investment yield.


52

Other Income (Loss)

Three Months Ended
September 30,
($ in thousands)20242023
Other income (loss), excluding third party fee income$— $85 

Other income (loss), excluding third party fee income, consists of varying insignificant items in each period. There was no other income (loss) for the three months ended September 30, 2024.

Net Foreign Exchange Gains (Losses)

Three Months Ended
September 30,
($ in thousands)20242023
Net foreign exchange gains (losses)$(5,973)$1,432 

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 $6.0 million and gains $1.4 million for the three months ended September 30, 2024 and 2023, respectively, primarily related to the remeasurement of insurance-related assets and liabilities denominated in British Pounds, Euro, Japanese Yen, and Australian and Canadian Dollars.

Corporate Expenses

Three Months Ended
September 30,
($ in thousands)20242023
Corporate expenses$14,060 $18,678 

Corporate expenses for the three months ended September 30, 2024 were $14.1 million, compared to $18.7 million for the three months ended September 30, 2023, a decrease of $4.6 million. The decrease was primarily driven by $1.9 million of Value Appreciation Pool ("VAP") expense recorded for the three months ended September 30, 2024, compared to $11.2 million of VAP expense recorded for the three months ended September 30, 2023, partially offset by certain variable performance based compensation costs, an increased headcount and an increase in professional fees associated with operating as a public company.

Amortization of Intangible Assets

Three Months Ended
September 30,
($ in thousands)20242023
Amortization of intangible assets$5,204 $2,794 

Amortization of intangible assets of $5.2 million and $2.8 million for the three months ended September 30, 2024 and 2023, respectively, relates to internally developed software and intangible assets acquired in a business combination. Amortization expense increased due to the incremental expense associated with additional technology projects.

53

Interest Expense

Three Months Ended
September 30,
($ in thousands)20242023
Interest expense$5,351 $5,288 

Interest expense of $5.4 million and $5.3 million for the three months ended September 30, 2024 and 2023, respectively, relates to interest payments and certain administrative fees associated with our term loan and letter of credit facilities.

Income Tax Expense (Benefit)

Three Months Ended
September 30,
($ in thousands)20242023
Income tax expense (benefit)$3,029 $2,387 

Income tax expense for the three months ended September 30, 2024 was $3.0 million, compared to $2.4 million for the three months ended September 30, 2023, an increase of $0.6 million. Tax expense for both the three months ended September 30, 2024 and 2023 was primarily driven by withholding taxes on investment income from TS Hamilton Fund.


54

Consolidated Results of Operations

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

Nine Months Ended
September 30,
($ in thousands, except per share amounts)20242023
Gross premiums written$1,878,645 $1,517,247 
Net premiums written$1,467,843 $1,116,772 
Net premiums earned$1,252,862 $952,398 
Third party fee income(1)
17,934 7,753 
Claims and Expenses
Losses and loss adjustment expenses720,478 519,554 
Acquisition costs283,059 220,532 
Other underwriting expenses(2)
140,339 126,242 
Underwriting income (loss)(3)
126,920 93,823 
Net realized and unrealized gains (losses) on investments454,851 101,881 
Net investment income (loss)(4)
43,667 17,719 
Total net realized and unrealized gains (losses) on
   investments and net investment income (loss)
498,518 119,600 
Other income (loss), excluding third party fee income(1)
— 85 
Net foreign exchange gains (losses)(9,883)(3,953)
Corporate expenses(2)
41,825 31,833 
Amortization of intangible assets11,773 7,869 
Interest expense17,090 16,007 
Income tax expense (benefit)6,118 6,908 
Net income (loss)538,749 146,938 
Net income (loss) attributable to non-controlling interest(5)
172,240 15,076 
Net income (loss) attributable to common shareholders$366,509 $131,862 
Diluted income (loss) per share attributable to common shareholders$3.33 $1.26 
Key Ratios
Attritional loss ratio - current year53.9 %51.8 %
Attritional loss ratio - prior year development0.6 %(0.4)%
Catastrophe loss ratio - current year4.1 %3.7 %
Catastrophe loss ratio - prior year development(1.1)%(0.5)%
Loss and loss adjustment expense ratio57.5 %54.6 %
Acquisition cost ratio22.6 %23.2 %
Other underwriting expense ratio9.8 %12.4 %
Combined ratio89.9 %90.2 %
Return on average common shareholders' equity16.8 %7.6 %



55

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

As at
Book ValueSeptember 30,
2024		December 31,
2023
Tangible book value per common share$21.89 $17.75 
Change in tangible book value per common share23.3 %
Book value per common share$22.82 $18.58 
Change in book value per common share22.8 %
Balance Sheet Data
Total assets$7,826,547 $6,671,355 
Total shareholders' equity$2,313,626 $2,047,850 

(1) Third party fee income is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to other income (loss), the most comparable GAAP financial measure, also included other income (loss), excluding third party fee income of $Nil and $0.1 million for the nine months ended September 30, 2024 and 2023. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Measures' for further details.
(2) Other underwriting expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $41.8 million and $31.8 million for the nine months ended September 30, 2024 and 2023, respectively. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Measures' for further details.
(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 nine months ended September 30, 2024 and 2023:

Gross premiums written Gross premiums written were $1.9 billion and $1.5 billion for the nine months ended September 30, 2024 and 2023, respectively. The increase in gross premiums written was primarily driven by our property reinsurance, casualty reinsurance, specialty reinsurance and casualty insurance business. The growth was a result of new business, increased participations on existing business and a strong rate environment across multiple classes of business.

Underwriting results The combined ratio was 89.9% and 90.2% for the nine months ended September 30, 2024 and 2023, respectively. The decrease was largely driven by a decrease in the other underwriting expense ratio, acquisition cost ratio, and catastrophe loss ratio, partially offset by an increase in the attritional loss ratio.

56

Losses and Loss Adjustment Expenses

For the Nine Months Ended
($ in thousands)Current
year		% of net premiums earnedPrior year development% of net premiums earnedLosses and loss adjustment expenses% of net premiums earned
September 30, 2024
Attritional losses$674,903 53.9 %$7,091 0.6 %$681,994 54.5 %
Catastrophe losses51,699 4.1 %(13,215)(1.1)%38,484 3.0 %
Total$726,602 58.0 %$(6,124)(0.5)%$720,478 57.5 %
September 30, 2023
Attritional losses$493,224 51.8 %$(4,049)(0.4)%$489,175 51.4 %
Catastrophe losses35,233 3.7 %(4,854)(0.5)%30,379 3.2 %
Total$528,457 55.5 %$(8,903)(0.9)%$519,554 54.6 %

Attritional loss ratio - current year for the nine months ended September 30, 2024 was 53.9% compared to 51.8% for the nine months ended September 30, 2023, an increase of 2.1 percentage points. The increase was primarily driven by losses of $37.9 million, or 3.0 points, arising from the Francis Scott Key Baltimore Bridge collapse, which impacted our insurance and reinsurance classes in both our International and Bermuda segments.

Attritional loss ratio - prior year for the nine months ended September 30, 2024 was an unfavorable 0.6% compared to favorable 0.4% for the nine months ended September 30, 2023, an increase of 1.0 percentage point. The attritional loss ratio - prior year for the nine months ended September 30, 2024 was primarily driven by unfavorable development in casualty classes in both our International and Bermuda segments and specialty insurance classes in our International segment, partially offset by favorable development in our International and Bermuda property classes. In addition, casualty business protected by the LPT discussed in Note 7, Reinsurance, benefited from favorable development in the underlying reserves of $1.4 million and $1.3 million in amortization of the associated deferred gain, for a total net positive earnings impact of $2.7 million. The attritional loss ratio - prior year for the nine months ended September 30, 2023 was primarily driven by favorable prior year development in specialty classes in the International and Bermuda segments, partially offset by unfavorable development in our Bermuda property and casualty classes. In addition, casualty business protected by the LPT discussed in Note 7, Reinsurance, benefited from $2.5 million in amortization of the associated deferred gain and favorable development in the underlying reserves of $1.5 million, for a total net positive earnings impact of $4.0 million.

Catastrophe losses - current year and prior year development were $38.5 million and $30.4 million for the nine months ended September 30, 2024 and 2023, respectively. Catastrophe losses for the nine months ended September 30, 2024 were driven by Hurricane Helene ($33.9 million), the Calgary hailstorms ($12.3 million), and Hurricane Debby ($5.5 million), partially offset by favorable prior year development of $13.2 million. Catastrophe losses for the nine months ended September 30, 2023 were driven by the Hawaii wildfires ($8.4 million), severe convective storms in June 2023 ($7.7 million), the wind and thunderstorm events which impacted states in both the Southern and Midwest U.S. during March 2023 ($7.6 million), Hurricane Idalia ($6.6 million), and the Vermont floods ($5.0 million), partially offset by favorable prior year development of $4.9 million.


57

Total Net Realized and Unrealized Gains (Losses) on Investments and Net Investment Income (Loss)

Nine Months Ended
September 30,
($ in thousands)20242023
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - TSHF(1)
$379,712 $100,448 
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other118,806 19,152 
$498,518 $119,600 
Net income (loss) attributable to non-controlling interest - TSHF$172,240 $15,076 
(1) Prior to non-controlling interest performance incentive allocation

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - TSHF, prior to non-controlling interest, returned income of $379.7 million and $100.4 million for the nine months ended September 30, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees.

Net investment income, net of non-controlling interest - TSHF, returned income of $207.5 million and $85.4 million for the nine months ended September 30, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees and performance incentive allocations. The aggregate incentive allocation to which the investment manager is entitled is included in "Net income (loss) attributable to non-controlling interests" in our GAAP financial statements.

TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of 12.2% and 5.3% for the nine months ended September 30, 2024 and 2023, respectively.

For the nine months ended September 30, 2024, gains in TSHF were led by macroeconomic trading in FTV. Within FTV, gains were achieved in equities, commodities, fixed income, and credit, while losses were experienced in currencies. TSHF also saw gains from single name equities trading within STV and ESTV. In single name equities trading, gains were led by U.S. equities within STV, followed by non-U.S. equities within ESTV. Within ESTV, East Asia, Europe, Pan-America and China all made positive contributions to gains, in decreasing order.

For the nine months ended September 30, 2023, TSHF generated positive returns in single name equities trading, partially offset by losses in macroeconomic trading. In single name equities trading, U.S. equities within STV and non-U.S. equities within ESTV both made positive contributions. Within ESTV, trading was most profitable in East Asia, followed by Europe, China and Pan-America. Within FTV, gains were driven by currencies, equities and credit, while losses related to commodities and fixed income.

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other returned income of $118.8 million and $19.2 million for the nine months ended September 30, 2024 and 2023, respectively. Income for the nine months ended September 30, 2024 was primarily driven by investment income on higher yielding assets and positive mark-to-market returns as a result of decreasing U.S. treasury interest rates in the period. Income for the nine months ended September 30, 2023 was primarily driven by investment income on higher yielding assets, partially offset by negative price returns as a result of rising U.S. treasury interest rates.


58

International Segment

Nine Months Ended
September 30,
($ in thousands)20242023
Gross premiums written$957,981 $832,049 
Net premiums written$687,444 $553,687 
Net premiums earned$637,700 $504,784 
Third party fee income11,557 7,417 
Claims and Expenses
Losses and loss adjustment expenses359,181 255,787 
Acquisition costs160,589 131,688 
Other underwriting expenses99,317 89,635 
Underwriting income (loss)$30,170 $35,091 
Attritional losses - current year$348,117 $265,706 
Attritional losses - prior year development1,972 (21,734)
Catastrophe losses - current year14,384 10,669 
Catastrophe losses - prior year development(5,292)1,146 
Losses and loss adjustment expenses$359,181 $255,787 
Attritional loss ratio - current year54.6 %52.6 %
Attritional loss ratio - prior year development0.3 %(4.3)%
Catastrophe loss ratio - current year2.2 %2.2 %
Catastrophe loss ratio - prior year development(0.8)%0.2 %
Losses and loss adjustment expense ratio56.3 %50.7 %
Acquisition cost ratio25.2 %26.1 %
Other underwriting expense ratio13.8 %16.3 %
Combined ratio95.3 %93.1 %

Gross Premiums Written

Nine Months Ended
September 30,
($ in thousands)20242023
Property$142,685 $107,706 
Casualty397,400 358,431 
Specialty417,896 365,912 
Total$957,981 $832,049 

Gross premiums written increased by $125.9 million, or 15.1%, from $832.0 million for the nine months ended September 30, 2023 to $958.0 million for the nine months ended September 30, 2024, primarily driven by growth, improved pricing and new business in casualty and property insurance classes and specialty reinsurance and insurance classes.


59

Net Premiums Earned

Nine Months Ended
September 30,
($ in thousands)20242023
Property$104,697 $76,398 
Casualty234,760 190,355 
Specialty298,243 238,031 
Total$637,700 $504,784 

For the nine months ended September 30, 2024, net premiums earned increased by $132.9 million, or 26.3%, from $504.8 million for the nine months ended September 30, 2023 to $637.7 million for the nine months ended September 30, 2024. The increase was driven by growth in our specialty, casualty and property insurance classes, in addition to growth in the specialty reinsurance class. Specialty insurance growth was primarily driven by accident & health, political violence, fine art & specie, and marine & energy; casualty insurance growth was primarily driven by U.S. excess and surplus lines, professional lines and excess casualty; property insurance growth was driven by property binders and D&F; and specialty reinsurance growth was primarily attributable to surety reinsurance and treaty reinsurance.

Third Party Fee Income

Nine Months Ended
September 30,
($ in thousands)20242023
Third party fee income$11,557 $7,417 

For the nine months ended September 30, 2024, fee income increased by $4.1 million, or 55.8%, from $7.4 million for the nine months ended September 30, 2023 to $11.6 million for the nine months ended September 30, 2024. The increase was primarily due to favorable terms of a renewed syndicate management arrangement and an increase in consortium fees.


60

Losses and Loss Adjustment Expenses

For the Nine Months Ended
($ in thousands)Current
year		% of net premiums earnedPrior year development% of net premiums earnedLosses and loss adjustment expenses% of net premiums earned
September 30, 2024
Attritional losses$348,117 54.6 %$1,972 0.3 %$350,089 54.9 %
Catastrophe losses14,384 2.2 %(5,292)(0.8)%9,092 1.4 %
Total$362,501 56.8 %$(3,320)(0.5)%$359,181 56.3 %
September 30, 2023
Attritional losses$265,706 52.6 %$(21,734)(4.3)%$243,972 48.3 %
Catastrophe losses10,669 2.2 %1,146 0.2 %11,815 2.4 %
Total$276,375 54.8 %$(20,588)(4.1)%$255,787 50.7 %

The loss ratio for the nine months ended September 30, 2024 was 56.3%, compared to 50.7% for the nine months ended September 30, 2023, an increase of 5.6 percentage points. The increase was driven by a lower contribution from favorable prior year development and higher current year attritional losses for the nine months ended September 30, 2024.

Attritional loss ratio - current year for the nine months ended September 30, 2024 was 54.6% compared to 52.6% for the nine months ended September 30, 2023, an increase of 2.0 percentage points. The increase was primarily driven by losses of $11.8 million, or 1.9 points, arising from the Baltimore Bridge collapse.

Attritional loss ratio - prior year for the nine months ended September 30, 2024 was an unfavorable 0.3% compared to a favorable 4.3% for the nine months ended September 30, 2023, an increase of 4.6 percentage points. The unfavorable attritional loss ratio - prior year for the nine months ended September 30, 2024 was primarily driven by unfavorable development in specialty insurance classes, impacted by two large losses, and casualty insurance classes, impacted by one specific large loss, partially offset by favorable development in our property insurance and reinsurance classes. In addition, casualty business protected by the LPT discussed in Note 7, Reinsurance, benefited from favorable development in the underlying reserves of $1.4 million and $1.3 million in amortization of the associated deferred gain, for a total net positive earnings impact of $2.7 million.

Catastrophe losses - current year and prior year were $9.1 million and $11.8 million for the nine months ended September 30, 2024 and 2023, respectively. Catastrophe losses for the nine months ended September 30, 2024 were driven by Hurricane Helene ($12.9 million) and Hurricane Debby ($1.5 million), partially offset by favorable prior year development of $5.3 million. Catastrophe losses for the nine months ended September 30, 2023 were primarily driven by the Vermont floods ($4.5 million), Hurricane Idalia ($3.0 million), the Hawaii wildfires ($2.7 million) and certain other wind events ($0.5 million), in addition to unfavorable prior year development of $1.1 million.


61

Acquisition Costs

Nine Months Ended
Acquisition Costs% of Net Premiums Earned
($ in thousands)September 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
'24 vs '23
point r
Property$35,658 $26,405 34.1 %34.6 %(0.5)
Casualty37,616 34,066 16.0 %17.9 %(1.9)
Specialty87,315 71,217 29.3 %29.9 %(0.6)
Total$160,589 $131,688 25.2 %26.1 %(0.9)

The acquisition cost ratio for the nine months ended September 30, 2024 was 25.2%, compared to 26.1% for the nine months ended September 30, 2023, a decrease of 0.9 percentage points. The decrease was primarily driven by casualty insurance, as a result of a change in the business mix and non-recurring profit commissions recorded in the nine months ended September 30, 2023.

Other Underwriting Expenses and Other Underwriting Expense Ratios

Nine Months Ended
September 30,
($ in thousands)20242023
Other underwriting expenses$99,317 $89,635 
Other underwriting expense ratio13.8 %16.3 %

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

Other underwriting expenses were $99.3 million for the nine months ended September 30, 2024, an increase of $9.7 million, or 10.8%, compared to $89.6 million for the nine months ended September 30, 2023. The increase was primarily driven by increases in headcount as we built out underwriting teams supporting the corresponding increase in premium volume, and certain growth related professional and IT costs.

The other underwriting expense ratios for the nine months ended September 30, 2024 and 2023 decreased over the same period from 16.3% to 13.8%, primarily as a result of growth in the premium base.


62

Bermuda Segment

Nine Months Ended
September 30,
($ in thousands)20242023
Gross premiums written$920,664 $685,198 
Net premiums written$780,399 $563,085 
Net premiums earned$615,162 $447,614 
Third party fee income6,377 336 
Claims and Expenses
Losses and loss adjustment expenses361,297 263,767 
Acquisition costs122,470 88,844 
Other underwriting expenses41,022 36,607 
Underwriting income (loss)$96,750 $58,732 
Attritional losses - current year$326,786 $227,518 
Attritional losses - prior year development5,119 17,685 
Catastrophe losses - current year37,315 24,564 
Catastrophe losses - prior year development(7,923)(6,000)
Losses and loss adjustment expenses$361,297 $263,767 
Attritional loss ratio - current year53.1 %50.8 %
Attritional loss ratio - prior year development0.8 %4.0 %
Catastrophe loss ratio - current year6.1 %5.4 %
Catastrophe loss ratio - prior year development(1.3)%(1.3)%
Losses and loss adjustment expense ratio58.7 %58.9 %
Acquisition cost ratio19.9 %19.8 %
Other underwriting expense ratio5.6 %8.1 %
Combined ratio84.2 %86.8 %

Gross Premiums Written

Nine Months Ended
September 30,
($ in thousands)20242023
Property$394,053 $295,962 
Casualty383,117 285,038 
Specialty143,494 104,198 
Total$920,664 $685,198 

Gross premiums written for the nine months ended September 30, 2024 increased by $235.5 million, or 34.4%, from $685.2 million for the nine months ended September 30, 2023 to $920.7 million for the nine months ended September 30, 2024. The increase was primarily driven by new business, expanded participations and rate increases in property and casualty reinsurance classes. Specialty reinsurance also increased, primarily driven by new business and non-recurring reinstatement premiums.


63

Net Premiums Earned

Nine Months Ended
September 30,
($ in thousands)20242023
Property$230,331 $162,374 
Casualty293,535 205,634 
Specialty91,296 79,606 
Total $615,162 $447,614 

Net premiums earned for the nine months ended September 30, 2024 increased by $167.5 million, or 37.4%, from $447.6 million for the nine months ended September 30, 2023 to $615.2 million for the nine months ended September 30, 2024. The increase was primarily driven by new business, volume growth and rate increases in our casualty and property reinsurance classes. The most significant drivers of this increase were general liability, professional lines and property treaty classes.

Third Party Fee Income

Nine Months Ended
September 30,
($ in thousands)20242023
Third party fee income$6,377 $336 

Third party fee income increased by $6.0 million, from $0.3 million for the nine months ended September 30, 2023 to $6.4 million for the nine months ended September 30, 2024. The increase was primarily driven by certain performance based management fees recognized by Ada Capital Management Limited for services provided to Ada Re, Ltd.

64

Losses and Loss Adjustment Expenses

For the Nine Months Ended
($ in thousands)Current
year		% of net premiums earnedPrior year development% of net premiums earnedLosses and loss adjustment expenses% of net premiums earned
September 30, 2024
Attritional losses$326,786 53.1 %$5,119 0.8 %$331,905 53.9 %
Catastrophe losses37,315 6.1 %(7,923)(1.3)%29,392 4.8 %
Total$364,101 59.2 %$(2,804)(0.5)%$361,297 58.7 %
September 30, 2023
Attritional losses$227,518 50.8 %$17,685 4.0 %$245,203 54.8 %
Catastrophe losses24,564 5.4 %(6,000)(1.3)%18,564 4.1 %
Total$252,082 56.2 %$11,685 2.7 %$263,767 58.9 %

The loss ratio for the nine months ended September 30, 2024 was 58.7%, compared to 58.9% for the nine months ended September 30, 2023, a decrease of 0.2 percentage points. The modest decrease was primarily driven by lower prior year attritional loss development, partially offset by a higher current year attritional loss ratio for the nine months ended September 30, 2024.

Attritional loss ratio - current year for the nine months ended September 30, 2024 was 53.1% compared to 50.8% for the nine months ended September 30, 2023, an increase of 2.3 percentage points. The increase was primarily driven by losses of $26.1 million, or 4.2 points, arising from the Baltimore Bridge collapse.

Attritional loss ratio - prior year for the nine months ended September 30, 2024 was an unfavorable 0.8% compared to an unfavorable 4.0% for the nine months ended September 30, 2023, a decrease of 3.2 percentage points. The unfavorable attritional loss ratio - prior year for the nine months ended September 30, 2024 was primarily driven by a modest increase in certain casualty classes, partially offset by favorable development in property reinsurance and insurance classes.

Catastrophe losses - current year and prior year were $29.4 million and $18.6 million for the nine months ended September 30, 2024 and 2023, respectively. Catastrophe losses for the nine months ended September 30, 2024 were driven by Hurricane Helene ($21.0 million), the Calgary hailstorms ($12.3 million), and Hurricane Debby ($4.0 million), partially offset by favorable prior year development of $7.9 million. Catastrophe losses for the nine months ended September 30, 2023 were primarily driven by wind and thunderstorm events which impacted states in both the Southern and Midwest U.S. during March 2023 ($7.6 million), severe convective storms in June 2023 ($7.2 million), the Hawaii wildfires ($5.7 million), Hurricane Idalia ($3.6 million), and smaller flood events ($0.5 million), partially offset by favorable prior year development of $6.0 million.


65

Acquisition Costs

Nine Months Ended
Acquisition Costs% of Net Premiums Earned
($ in thousands)September 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
'24 vs '23
point r
Property$28,019 $20,924 12.2 %12.9 %(0.7)
Casualty72,875 46,681 24.8 %22.7 %2.1 
Specialty21,576 21,239 23.6 %26.7 %(3.1)
Total$122,470 $88,844 19.9 %19.8 %0.1 

The acquisition cost ratio for the nine months ended September 30, 2024 was 19.9%, compared to 19.8% for the nine months ended September 30, 2023. The modest increase was primarily driven by a change in the mix of business, including more proportional business written in our casualty reinsurance classes.

Other Underwriting Expenses and Other Underwriting Expense Ratios

Nine Months Ended
September 30,
($ in thousands)20242023
Other underwriting expenses$41,022 $36,607 
Other underwriting expense ratio5.6 %8.1 %

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

Other underwriting expenses for the nine months ended September 30, 2024 increased by $4.4 million, or 12.1%, from $36.6 million for the nine months ended September 30, 2023 to $41.0 million for the nine months ended September 30, 2024. The increase was primarily driven by an increase in salary and compensation costs, an increased headcount, and professional fees.

The other underwriting expense ratios for the nine months ended September 30, 2024 and 2023 decreased over the same period from 8.1% to 5.6%, as a result of the growth in premium base and certain performance based management fees recognized by Ada Capital Management Limited in the current period for services provided to Ada Re, Ltd.


66

Corporate and Other

Total Net Realized and Unrealized Gains (Losses) on Investments and Net Investment Income (Loss)

The components of total net realized and unrealized gains (losses) on investments and net investment income (loss) are as follows:

Nine Months Ended
September 30,
($ in thousands)20242023
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - TSHF(1)
$379,712 $100,448 
Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other118,806 19,152 
$498,518 $119,600 
Net income (loss) attributable to non-controlling interest - TSHF$172,240 $15,076 
(1) Prior to non-controlling interest performance incentive allocation

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - TSHF, prior to non-controlling interest, returned income of $379.7 million and $100.4 million for the nine months ended September 30, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees.

Net investment income, net of non-controlling interest - TSHF, returned income of $207.5 million and $85.4 million for the nine months ended September 30, 2024 and 2023, respectively. This includes the fund's returns, net of investment management fees and performance incentive allocations. The aggregate incentive allocation to which the investment manager is entitled is included in "Net income (loss) attributable to non-controlling interests" in our GAAP financial statements.

TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of 12.2% and 5.3% for the nine months ended September 30, 2024 and 2023, respectively.

For the nine months ended September 30, 2024, gains in TSHF were led by macroeconomic trading in FTV. Within FTV, gains were achieved in equities, commodities, fixed income, and credit, while losses were experienced in currencies. TSHF also saw gains from single name equities trading within STV and ESTV. In single name equities trading, gains were led by U.S. equities within STV, followed by non-U.S. equities within ESTV. Within ESTV, East Asia, Europe, Pan-America and China all made positive contributions to gains, in decreasing order.

For the nine months ended September 30, 2023, TSHF generated positive returns in single name equities trading, partially offset by losses in macroeconomic trading. In single name equities trading, U.S. equities within STV and non-U.S. equities within ESTV both made positive contributions. Within ESTV, trading was most profitable in East Asia, followed by Europe, China and Pan-America. Within FTV, gains were driven by currencies, equities and credit, while losses related to commodities and fixed income.

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other, returned income of $118.8 million and $19.2 million for the nine months ended September 30, 2024 and 2023, respectively. Income for the nine months ended September 30, 2024 was primarily driven by investment income on higher yielding assets and positive mark-to-market returns as a result of decreasing U.S. treasury interest rates in the period. Income for the nine months ended September 30, 2023 was primarily driven by investment income on higher yielding assets, partially offset by negative price returns as a result of rising U.S. treasury interest rates.


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Other Income (Loss)

Nine Months Ended
September 30,
($ in thousands)20242023
Other income (loss), excluding third party fee income$— $85 

Other income (loss), excluding third party fee income, consists of varying insignificant items in each period. There was no other income (loss) for the nine months ended September 30, 2024.

Net Foreign Exchange Gains (Losses)

Nine Months Ended
September 30,
($ in thousands)20242023
Net foreign exchange gains (losses)$(9,883)$(3,953)

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 $9.9 million and $4.0 million for the nine months ended September 30, 2024 and 2023, respectively, primarily related to the remeasurement of insurance-related assets and liabilities denominated in British Pounds, Euro, Japanese Yen, and Australian and Canadian Dollars.

Corporate Expenses

Nine Months Ended
September 30,
($ in thousands)20242023
Corporate expenses$41,825 $31,833 

Corporate expenses for the nine months ended September 30, 2024 were $41.8 million compared to $31.8 million for the nine months ended September 30, 2023, an increase of $10.0 million. The increase was primarily driven by certain variable performance based compensation costs, an increased headcount and an increase in professional fees associated with operating as a public company, partially offset by a decrease in VAP expense.

Amortization of Intangible Assets

Nine Months Ended
September 30,
($ in thousands)20242023
Amortization of intangible assets$11,773 $7,869 

Amortization of intangible assets of $11.8 million and $7.9 million for the nine months ended September 30, 2024 and 2023, respectively, relates to internally developed software and intangible assets acquired in a business combination. Amortization expense increased due to the incremental expense associated with additional technology projects.

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Interest Expense

Nine Months Ended
September 30,
($ in thousands)20242023
Interest expense$17,090 $16,007 

Interest expense of $17.1 million and $16.0 million for the nine months ended September 30, 2024 and 2023, respectively, relates to interest payments and certain administrative fees associated with our term loan and letter of credit facilities. The increase in interest expense was primarily driven by the increase in the Secured Overnight Financing Rate ("SOFR"), which underlies the floating rate associated with the term loan.

Income Tax Expense (Benefit)

Nine Months Ended
September 30,
($ in thousands)20242023
Income tax expense (benefit)$6,118 $6,908 

Income tax expense for the nine months ended September 30, 2024 was $6.1 million, compared to $6.9 million for the nine months ended September 30, 2023, a decrease of $0.8 million. Tax expense for both the nine months ended September 30, 2024 and 2023 was primarily driven by withholding taxes on investment income from TS Hamilton Fund.

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Key Operating and Financial Metrics

The Company has identified the following metrics as key measures of the Company’s performance:

Book Value per Common Share

Management believes that book value is an important indicator of value provided to common shareholders and aligns the Company’s and most investors’ long term objectives. We calculate book value per common share as total common shareholders’ equity divided by the total number of common shares outstanding at the point in time.

As at
($ in thousands, except per share amounts)September 30,
2024		December 31,
2023
Closing common shareholders' equity$2,313,626 $2,047,850 
Closing common shares outstanding101,392,722 110,225,103 
Book value per common share$22.82 $18.58 

Book value per common share was $22.82 at September 30, 2024, a $4.24 or 22.8% increase from the Company’s book value per common share of $18.58 at December 31, 2023. The increase was primarily driven by the Company’s net income attributable to common shareholders of $366.5 million and the accretive impact of share repurchases (see Note 11, Share Capital in the accompanying unaudited condensed financial statements for further details).

Tangible Book Value per Common Share

Management believes that tangible book value is an important indicator of value provided to common shareholders and aligns the Company’s and most investors’ long term objectives. We calculate tangible book value per common share as total common shareholders’ equity less intangible assets, divided by the total number of common shares outstanding at the point in time.

As at
($ in thousands, except per share amounts)September 30,
2024		December 31,
2023
Closing common shareholders' equity$2,313,626 $2,047,850 
Intangible assets94,441 90,996 
Closing common shareholders' equity, less intangible assets$2,219,185 $1,956,854 
Closing common shares outstanding101,392,722 110,225,103 
Tangible book value per common share
$21.89 $17.75 

Tangible book value per common share was $21.89 at September 30, 2024, a $4.14 or 23.3% increase from the Company’s tangible book value per common share of $17.75 at December 31, 2023. The increase was primarily driven by the Company’s net income attributable to common shareholders of $366.5 million and the accretive impact of share repurchases (see Note 11, Share Capital in the accompanying unaudited condensed financial statements for further details).


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Return on Average Common Shareholders' Equity

Management believes that return on average common shareholders’ equity or ("ROACE") is an important indicator of the Company’s profitability and financial efficiency. We calculate it by dividing net income (loss) attributable to common shareholders by average common shareholders' equity for the corresponding period.

Three Months EndedNine Months Ended
September 30,September 30,
($ in thousands)2024202320242023
Net income (loss) attributable to common shareholders$78,250 $43,583 $366,509 $131,862 
Average common shareholders' equity for the period$2,276,087 $1,775,940 $2,180,739 $1,731,954 
Return on average common shareholders' equity3.4 %2.5 %16.8 %7.6 %

ROACE was 3.4% for the three months ended September 30, 2024, compared to 2.5% for the three months ended September 30, 2023. The increase was primarily driven by the higher net income attributable to common shareholders for the three months ended September 30, 2024 compared to the three months ended September 30, 2023.

ROACE was 16.8% for the nine months ended September 30, 2024, compared to 7.6% for the nine months ended September 30, 2023. The increase was primarily driven by the higher net income attributable to common shareholders reported for the nine months ended September 30, 2024 compared to nine months ended September 30, 2023.


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Non-GAAP Measures

We present our results of operations in a way that we believe will be the most meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. Some of the measurements are considered non-GAAP financial measures under SEC rules and regulations. In this Form 10-Q, we present underwriting income (loss), a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. We believe that non-GAAP financial measures, which may be defined and calculated differently by other companies, help explain and enhance the understanding of our results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with U.S. GAAP. Where appropriate, reconciliations of our non-GAAP measures to the most comparable GAAP figures are included below.

Underwriting Income (Loss)

We calculate underwriting income (loss) on a pre-tax basis as net premiums earned less losses and loss adjustment expenses, acquisition costs and other underwriting expenses (net of third party fee income). We believe that this measure of our performance focuses on the core fundamental performance of the Company’s reportable segments in any given period and is not distorted by investment market conditions, corporate expense allocations or income tax effects.

The table below reconciles underwriting income (loss) to net income (loss), the most comparable GAAP financial measure:

Three Months EndedNine Months Ended
September 30,September 30,
($ in thousands)2024202320242023
Underwriting income (loss)$29,094 $24,866 $126,920 $93,823 
Total net realized and unrealized gains (losses)
on investments and net investment income (loss)		65,558 55,412 498,518 119,600 
Other income (loss), excluding third party fee income— 85 — 85 
Net foreign exchange gains (losses)(5,973)1,432 (9,883)(3,953)
Corporate expenses(14,060)(18,678)(41,825)(31,833)
Amortization of intangible assets(5,204)(2,794)(11,773)(7,869)
Interest expense (5,351)(5,288)(17,090)(16,007)
Income tax (expense) benefit(3,029)(2,387)(6,118)(6,908)
Net income (loss), prior to non-controlling interest$61,035 $52,648 $538,749 $146,938 

Third Party Fee Income

Third party fee income includes income that is incremental and/or directly attributable to our underwriting operations. It is primarily comprised of fees earned by the International segment for management services provided to third party syndicates and consortia and by the Bermuda segment for performance based management fees generated by our third party capital manager, Ada Capital Management Limited. We believe that this measure is a relevant component of our underwriting income (loss).

The table below reconciles third party fee income to other income, the most comparable GAAP financial measure:

Three Months EndedNine Months Ended
September 30,September 30,
($ in thousands)2024202320242023
Third party fee income$4,464 $2,301 $17,934 $7,753 
Other income (loss), excluding third party fee income— 85 — 85 
Other income (loss)$4,464 $2,386 $17,934 $7,838 


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Other Underwriting Expenses

Other underwriting expenses include those general and administrative expenses that are incremental and/or directly attributable to our underwriting operations. While this measure is presented in Note 9, Segment Reporting, it is considered a non-GAAP financial measure when presented elsewhere.

Corporate expenses include holding company costs necessary to support our reportable segments. As these costs are not incremental and/or directly attributable to our underwriting operations, these costs are excluded from other underwriting expenses, and therefore, underwriting income (loss). General and administrative expenses, the most comparable GAAP financial measure to other underwriting expenses, also includes corporate expenses.

The table below reconciles other underwriting expenses to general and administrative expenses, the most comparable GAAP financial measure:

Three Months EndedNine Months Ended
September 30,September 30,
($ in thousands)2024202320242023
Other underwriting expenses$48,332 $44,357 $140,339 $126,242 
Corporate expenses14,060 18,678 41,825 31,833 
General and administrative expenses$62,392 $63,035 $182,164 $158,075 

Other Underwriting Expense Ratio

Other Underwriting Expense Ratio is a measure of the other underwriting expenses (net of third party fee income) incurred by the Company and is expressed as a percentage of net premiums earned.

Loss Ratio

Attritional Loss Ratio – current year is the attritional losses incurred by the company relating to the current year divided by net premiums earned.

Attritional Loss Ratio – prior year development is the attritional losses incurred by the company relating to prior years divided by net premiums earned.

Catastrophe Loss Ratio – current year is the catastrophe losses incurred by the company relating to the current year divided by net premiums earned.

Catastrophe Loss Ratio – prior year development is the catastrophe losses incurred by the company relating to prior years divided by net premiums earned.

Combined Ratio

Combined Ratio is a measure of our underwriting profitability and is expressed as the sum of the loss and loss adjustment expense ratio, acquisition cost ratio and other underwriting expense ratio. A combined ratio under 100% indicates an underwriting profit, while a combined ratio over 100% indicates an underwriting loss.


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Financial Condition, Liquidity and Capital Resources

Financial Condition

Investment Philosophy

The Company maintains two segregated investment portfolios: a fixed maturities and short-term investments trading portfolio and an investment in Two Sigma Hamilton Fund ("TS Hamilton Fund").

The Company's high quality and liquid fixed maturities and short-term investments portfolio is structured to focus primarily on the preservation of capital and the availability of liquidity to meet the Company’s claims obligations, to be well diversified across market sectors, and to generate relatively attractive returns on a risk-adjusted basis over time. The Company’s investments are subject to market-wide risks and fluctuations, as well as to risks inherent in particular securities.

The Company also invests in TS Hamilton Fund, a Delaware limited liability company. Hamilton Re has a commitment with TS Hamilton Fund to maintain an amount up to the lesser of (i) $1.8 billion or (ii) 60% of Hamilton Insurance Group’s net tangible assets in TS Hamilton Fund, such lesser amount, the "Minimum Commitment Amount", for a three-year period (the "Initial Term") and for rolling three-year periods thereafter (each such three-year period the "Commitment Period"), subject to certain circumstances and the liquidity options described below, with the Commitment Period ending on June 30, 2027. The Commitment Period consists of a 3-year rolling term that automatically renews on an annual basis unless Hamilton Re or the Managing Member provide advance notice of non-renewal. Two Sigma is a United States Securities and Exchange Commission registered investment adviser specializing in quantitative analysis. The TS Hamilton Fund investment strategy is focused on delivering non-market correlated investment income and total return through all market cycles while maintaining appropriate portfolio liquidity and credit quality to meet the requirements of customers, rating agencies and regulators.

Cash and Investments

At September 30, 2024 and December 31, 2023, total cash and investments was $4.8 billion and $4.0 billion, respectively. However, a significant portion of the total cash and investments balances held were invested in TS Hamilton Fund as collateral for the investments held by the underlying trading vehicles, as shown in the tables under the "TS Hamilton Fund" discussion.

As at
($ in thousands)September 30, 2024December 31, 2023
Fixed maturity investments, at fair value
$2,320,184 48 %$1,831,268 46 %
Short-term investments, at fair value
507,947 11 %428,878 11 %
2,828,131 59 %2,260,146 57 %
Investments in Two Sigma Funds, at fair value
932,787 19 %851,470 21 %
Total investments
3,760,918 78 %3,111,616 78 %
Cash and cash equivalents
957,372 20 %794,509 20 %
Restricted cash
93,883 2 %106,351 2 %
Total cash
1,051,255 22 %900,860 22 %
Total cash & investments
$4,812,173 100 %$4,012,476 100 %

Total cash and investments increased from $4.0 billion at December 31, 2023 to $4.8 billion at September 30, 2024. The increase was driven by positive returns for the nine months ended September 30, 2024 on both the TS Hamilton Fund and fixed maturity investments. Fixed maturity investments also increased with the deployment of more cash into the fixed maturity trading portfolio to take advantage of higher U.S. treasury interest rates. The TS Hamilton Fund represents $2.0 billion and $1.8 billion of the total cash and investments as at September 30, 2024 and December 31, 2023, respectively.


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Fixed Maturity and Short-term Investments - Trading

The Company’s fixed maturity trading portfolio and short-term investments are as follows:

September 30, 2024
($ in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair
Value
Fixed maturities:
U.S. government treasuries$761,334 $9,273 $(5,679)$764,928 
U.S. states, territories and municipalities13,528 114 (175)13,467 
Non-U.S. sovereign governments and supranationals74,679 3,029 (532)77,176 
Corporate1,118,605 24,677 (9,485)1,133,797 
Residential mortgage-backed securities - Agency258,788 3,069 (10,343)251,514 
Residential mortgage-backed securities - Non-agency5,790 109 (540)5,359 
Commercial mortgage-backed securities - Non-agency33,189 535 (615)33,109 
Other asset-backed securities40,255 660 (81)40,834 
Total fixed maturities2,306,168 41,466 (27,450)2,320,184 
Short-term investments
506,244 1,709 (6)507,947 
Total$2,812,412 $43,175 $(27,456)$2,828,131 

December 31, 2023
($ in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair
Value
Fixed maturities:
U.S. government treasuries$717,134 $5,137 $(14,021)$708,250 
U.S. states, territories and municipalities4,656 — (286)4,370 
Non-U.S. sovereign governments and supranationals55,662 2,175 (1,591)56,246 
Corporate877,493 8,443 (22,060)863,876 
Residential mortgage-backed securities - Agency180,661 435 (12,583)168,513 
Residential mortgage-backed securities - Non-agency5,639 16 (671)4,984 
Commercial mortgage-backed securities - Non-agency11,473 — (1,050)10,423 
Other asset-backed securities14,781 20 (195)14,606 
Total fixed maturities1,867,499 16,226 (52,457)1,831,268 
Short-term investments
427,437 1,441 — 428,878 
Total
$2,294,936 $17,667 $(52,457)$2,260,146 

The fair value of the Company’s fixed maturity trading portfolio and short-term investments increased from $2.3 billion at December 31, 2023 to $2.8 billion at September 30, 2024, due to increases in the fixed maturity trading portfolio and the short-term investments held by TS Hamilton Fund.

Short-term investments of $507.9 million and $428.9 million at September 30, 2024 and December 31, 2023, respectively, are held within TS Hamilton Fund. The cash and short-term investment balances within TS Hamilton Fund are not managed by the Company, nor can they be removed from TS Hamilton Fund as they support the underlying investment strategies within the three trading vehicles. The balance may fluctuate significantly from period to period as a result of movements in the underlying funds. See discussion below for further details on assets within TS Hamilton Fund.


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The fair values and weighted-average credit ratings of our fixed maturity trading portfolio and short-term investments by type were as follows:

September 30, 2024December 31, 2023
($ in thousands)Fair Value% of TotalWeighted average credit ratingFair Value% of TotalWeighted average credit rating
Fixed maturities:
U.S. government treasuries$764,928 27 %Aaa$708,250 31 %Aaa
U.S. states, territories and municipalities13,467 0 %Aa24,370 0 %Aa2
Non-U.S. sovereign governments and supranationals77,176 3 %Aa256,246 2 %Aa2
Corporate1,133,797 41 %A3863,876 39 %A3
Residential mortgage-backed securities - Agency251,514 9 %Aaa168,513 7 %Aaa
Residential mortgage-backed securities - Non-agency5,359 0 %Aaa4,984 0 %Aaa
Commercial mortgage-backed securities - Non-agency33,109 1 %Aaa10,423 1 %Aa1
Other asset-backed securities40,834 1 %Aaa14,606 1 %Aaa
Total fixed maturities2,320,184 82 %Aa31,831,268 81 %Aa3
Short-term investments507,947 18 %Aaa428,878 19 %Aaa
Total fixed maturities and short-term investments$2,828,131 100 %Aa2$2,260,146 100 %Aa2
Fixed maturity and short-term investments credit quality summary:
Investment grade100 %100 %
Non-investment grade0 %0 %
Total100 %100 %

The average credit quality, the average yield to maturity and the expected average duration of the Company’s fixed maturities and short-term investments trading portfolio, excluding short-term investments held by the TS Hamilton Fund, were as follows:

September 30, 2024December 31, 2023
Average credit qualityAa3Aa3
Average yield to maturity4.2 %4.5 %
Expected average duration (in years)3.13.3

At September 30, 2024 and December 31, 2023, approximately 100% of the Company’s fixed maturities and short-term investments trading portfolio was rated investment grade (Baa2 or higher) by third party rating services. There were no non-investment grade securities in the fixed maturities and short-term investments trading portfolio. The average credit quality of the Company’s fixed maturities and short-term investments trading portfolio at September 30, 2024 and December 31, 2023, excluding short-term investments held by the TS Hamilton Fund, was Aa3.

The average yield to maturity on the Company’s fixed maturities and short-term investments trading portfolio decreased to 4.2% at September 30, 2024 from 4.5% at December 31, 2023.

The expected average duration of the Company’s fixed maturities and short-term investments trading portfolio was 3.1 years at September 30, 2024, compared to 3.3 years at December 31, 2023.


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TS Hamilton Fund

Although Two Sigma has broad discretion to allocate invested assets to different opportunities, the current strategy is focused on highly diversified liquid positions in global equities, futures and foreign exchange markets. Through its investments in Two Sigma Futures Portfolio, LLC ("FTV"), Two Sigma Spectrum Portfolio, LLC ("STV") and Two Sigma Equity Spectrum Portfolio, LLC ("ESTV"), we seek to achieve absolute dollar denominated returns on a substantial capital base primarily by combining multiple hedged and leveraged systematic investment strategies with proprietary risk management and execution techniques. These systematic strategies include, but are not limited to, technical and statistically-based, fundamental-based, event-based, market condition-based and spread-based strategies as well as contributor-based and/or sentiment-based strategies and blended strategies. FTV primarily utilizes systematic strategies to gain broad macro exposure to FX, fixed income, equity and credit indices, and commodities, predominantly by trading futures, spots, forwards, options, swaps, cash bonds and exchange traded products. STV primarily utilizes systematic strategies to trade U.S.-listed equity securities and related instruments and derivatives. ESTV primarily utilizes systematic strategies to trade non-U.S.-listed equity securities and related instruments and derivatives. At September 30, 2024, the Company owns an 18.5%, 17.9% and 9.8% interest in each of the FTV, STV and ESTV funds, respectively.

TS Hamilton Fund invests in Two Sigma Funds ("Two Sigma Funds"), which are stated at their estimated fair values, which generally represent the Company’s proportionate interest in the members’ equity of the Two Sigma Funds as reported by the respective funds based on the net asset value ("NAV") provided by the fund administrator. The Company accounts for its investment in Two Sigma Funds under the variable interest model at NAV as a practical expedient for fair value in the consolidated balance sheets.

The Company’s investments in Two Sigma Funds are as follows:

September 30, 2024December 31, 2023
($ in thousands)CostNet
Unrealized Gains (Losses)		Fair
Value		CostNet
Unrealized Gains (Losses)		Fair
Value
Two Sigma Futures Portfolio, LLC (FTV)
$352,138 $7,017 $359,155 $433,911 $(38,105)$395,806 
Two Sigma Spectrum Portfolio, LLC (STV)
337,247 55,581 392,828 193,299 88,228 281,527 
Two Sigma Equity Spectrum Portfolio, LLC (ESTV)
140,221 40,583 180,804 142,981 31,156 174,137 
Total
$829,606 $103,181 $932,787 $770,191 $81,279 $851,470 

The increase in the total fair value of the Company’s investments in Two Sigma Funds from $851.5 million at December 31, 2023 to $932.8 million at September 30, 2024 is primarily driven by investment gains and collateral management within TS Hamilton Fund. The total net assets managed in TS Hamilton Fund represent our investment in and exposure to Two Sigma Funds’ investment strategies. However, as part of Two Sigma’s collateral management processes, any capital not required to be held within one of the specific trading vehicles is held in cash or short-term investments within TS Hamilton Fund as shown in the following table. The cash and short-term investment balances are not managed by the Company, nor can they be removed from TS Hamilton Fund as they support the underlying investment strategies within the three trading vehicles.


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The following table represents the total assets and total liabilities of TS Hamilton Fund. Creditors or beneficial interest holders of TS Hamilton Fund have no recourse to the general credit of the Company as the Company’s obligation is limited to the amount of its committed investment.

($ in thousands)September 30,
2024		December 31,
2023
Assets
Cash and cash equivalents
$560,757 $479,255 
Short-term investments
507,947 428,878 
Investments in Two Sigma Funds, at fair value
932,787 851,470 
Receivables for investments sold
28,977 41,087 
Interest and dividends receivable
1,184 966 
Total assets
2,031,6521,801,656
Liabilities
Accounts payable and accrued expenses
190 191 
Withdrawal payable
— 6,480 
Payable for investments purchased
151,75462,440
Total liabilities
151,94469,111
Total net assets managed by TS Hamilton Fund
$1,879,708$1,732,545

Total net assets in TS Hamilton Fund were $1.9 billion and $1.7 billion at September 30, 2024 and December 31, 2023, respectively.

Liquidity and Capital Resources

Liquidity

Liquidity is a measure of a company’s ability to generate cash flows sufficient to meet the short-term and long-term cash requirements of its business operations. The Company manages liquidity at the holding company and operating subsidiary level.

Management believes that its significant cash flows from operations and high quality liquid investment portfolio will provide sufficient liquidity for the foreseeable future. At September 30, 2024 and December 31, 2023, total unrestricted cash and cash equivalents were $1.0 billion and $794.5 million, respectively, and total restricted cash and cash equivalents were $93.9 million and $106.4 million, respectively.

Holding Company

As a holding company, Hamilton Insurance Group, Ltd. has no operations of its own and its assets consist primarily of investments in its subsidiaries. Accordingly, Hamilton Insurance Group, Ltd.’s future cash flows depend on the availability of dividends or other statutorily permissible distributions, such as returns of capital, from its subsidiaries. The ability to pay such dividends and/or distributions is limited by the applicable laws and regulations of the various countries and states in which the Company’s subsidiaries operate (refer to Note 18, Statutory Requirements in the audited consolidated financial statements included in our Form 10-K for the year ended December 31, 2023 for further details), as well as the need to maintain capital levels to adequately support insurance and reinsurance operations, and to preserve financial strength ratings issued by independent rating agencies.


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During the nine months ended September 30, 2024 and 2023, Hamilton Insurance Group, Ltd. received $157.5 million and $44.0 million, respectively, of distributions from its subsidiaries. Hamilton Insurance Group, Ltd.’s primary use of funds is interest payments on debt and credit facilities, common share repurchases, capital investments in subsidiaries, and payment of corporate operating expenses. Common share repurchases may be conducted through open market repurchases and/or privately negotiated transactions. See Note 11, Share Capital, in the accompanying unaudited condensed financial statements for further detail of common share repurchases in the nine months ended September 30, 2024. Management believes the dividend distribution capacity of Hamilton Insurance Group, Ltd.’s subsidiaries, which was estimated at $471.6 million at December 31, 2023, will provide Hamilton Insurance Group, Ltd. with sufficient liquidity for the foreseeable future.

Operating Subsidiaries

Hamilton Insurance Group, Ltd.’s operating subsidiaries primarily derive cash from the net inflow of premiums less claim payments related to underwriting activities and from net investment income. Historically, these cash receipts have been sufficient to fund the operating expenses of these subsidiaries, as well as to fund dividend payments to Hamilton Insurance Group, Ltd. The subsidiaries’ remaining cash flows are generally invested into the investment portfolio. The remaining cash flows have also been used to fund common share repurchases and to fund acquisitions.

The operating subsidiaries’ insurance and reinsurance business inherently provides liquidity, as premiums are received in advance (sometimes substantially in advance) of the time losses are paid. However, the amount of cash required to fund loss payments can fluctuate significantly from period to period, due to the low frequency and high severity nature of certain types of business written. As such, cash flows from operating activities may vary significantly between periods.

The payment of dividends by operating subsidiaries is, under certain circumstances, limited by the applicable laws and regulations in the various jurisdictions in which the subsidiaries operate. In addition, insurance laws require the insurance subsidiaries to maintain certain measures of solvency and liquidity. Management believes that each of the Company’s insurance subsidiaries and branches exceeded the minimum solvency, capital and surplus requirements in their applicable jurisdictions at December 31, 2023. Certain of the subsidiaries and branches are required to file Financial Condition Reports ("FCR"), with their regulators, which provide details on solvency and financial performance. Where required, these FCRs are posted on the Company’s website.

The regulations governing the Company’s principal operating subsidiaries’ ability to pay dividends and to maintain certain measures of solvency and liquidity are discussed in Note 18, Statutory Requirements in the Company’s audited consolidated financial statements as included in our Form 10-K for the year ended December 31, 2023.

Consolidated Cash Flows

Consolidated cash flows from operating, investing and financing activities were as follows:

For the Nine Months Ended
($ in thousands)September 30, 2024September 30, 2023
Total cash provided by (used in):
Operating activities$475,213 $247,669 
Investing activities(95,276)(530,939)
Financing activities(235,310)(17,313)
Effect of exchange rate changes on cash5,768 (3,093)
Net increase (decrease) in cash and cash equivalents$150,395 $(303,676)

Net cash provided by (used in) operating activities was $475.2 million and $247.7 million in the nine months ended September 30, 2024 and 2023, respectively. Cash inflows from insurance and reinsurance operations typically include premiums, net of acquisition costs, and reinsurance recoverables. Cash outflows principally include payments of losses and loss expenses, payments of premiums to reinsurers and operating expenses. Cash provided by operating activities fluctuates due to timing differences between the collection of premiums and reinsurance recoverables and the payment of losses and loss adjustment expenses, and the payment of premiums to reinsurers.


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Net cash provided by (used in) investing activities was $(95.3) million and $(530.9) million in the nine months ended September 30, 2024 and 2023, respectively, primarily driven by the timing of investing activities and the net proceeds of turnover in our fixed maturities and short-term investments.

Net cash provided by (used in) financing activities was $(235.3) million and $(17.3) million in the nine months ended September 30, 2024 and 2023, respectively. Net cash used in financing activities for the nine months ended September 30, 2024 was driven by share repurchases (see Note 11, Share Capital in the accompanying unaudited condensed financial statements for further details) and incentive allocations paid to TS Hamilton Fund. Net cash used in financing activities for the nine months ended September 30, 2023 was primarily driven by incentive allocations paid to TS Hamilton Fund.

The Company believes that annual positive cash flows from operating activities will be sufficient to cover claims payments, absent a series of additional large catastrophic losses. However, should claim payment obligations accelerate beyond the Company’s ability to fund payments from operating cash flows, the Company would utilize cash and cash equivalent balances and/or liquidate a portion of the Company’s fixed maturities and short term investments trading portfolio and/or access certain credit facilities. The Company’s fixed maturities and short term investments trading portfolio is heavily weighted towards conservative, high quality and highly liquid securities.

In addition, if necessary, the Company generally has two options related to liquidating a portion of the investment portfolio in the TS Hamilton Fund, subject to Hamilton Re’s minimum investment commitment, which are as follows:

•Monthly liquidity - Subject to certain conditions, Hamilton Re may request a whole or partial withdrawal of its capital account, no later than fifteen days prior to the end of a calendar month, effective as of the last day of such calendar month.

•Daily liquidity - Subject to certain limited circumstances, including the need to meet obligations pursuant to Hamilton Re’s underwriting operations, Hamilton Re may request a withdrawal of all or a portion of its capital account upon at least one business day’s written notice of such withdrawal request date to the Managing Member. Claim payments pertaining to any such large catastrophic event would be paid out over a period spanning many months.

Management expects that, if necessary, the full value of cash, fixed income and short-term investments at September 30, 2024 could be available in one to three business days under normal market conditions, except for $465.8 million of restricted cash and investments which primarily support the Company’s obligations in regulatory jurisdictions where it operates as a non-admitted carrier (refer to Note 3, Investments in the accompanying unaudited condensed consolidated financial statements) and $264.0 million of restricted cash and investments which primarily support the Company’s letter of credit facilities (refer to Note 10, Debt and Credit Facilities in the accompanying unaudited condensed consolidated financial statements).

Capital Resources

Management monitors the Company’s capital adequacy on a regular basis and seeks to adjust its capital according to the needs of the business. In particular, the Company requires capital sufficient to meet or exceed the capital adequacy ratios established by rating agencies for maintenance of appropriate financial strength ratings and the capital adequacy tests performed by regulatory authorities. From time to time, rating agencies and regulatory authorities may make changes in their models and methodologies, which could increase the amount of capital the Company requires. The Company may seek to raise additional capital or return capital to shareholders through some combination of common share repurchases and cash dividends. In the normal course of operations, management may from time to time evaluate additional share or debt issuances given prevailing market conditions and capital management strategies. In addition, the Company enters into agreements with financial institutions to obtain letter of credit facilities for the benefit of its operating subsidiaries to support their business operations. Management believes that the Company holds sufficient capital to allow it to take advantage of market opportunities and to maintain its financial strength ratings and comply with various local statutory regulations.


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The following table summarizes our consolidated total capital:

As at
($ in thousands)September 30, 2024December 31, 2023
Shareholders' equity$2,313,626 $2,047,850 

The Company’s total capital was $2.3 billion at September 30, 2024, a 13.0% increase compared to $2.0 billion at
December 31, 2023. The primary driver of the increase in total capital was the Company’s net income attributable to common shareholders of $366.5 million for the nine months ended September 30, 2024, partially offset by share repurchases (see Note 11, Share Capital in the accompanying unaudited condensed financial statements for further details).

Debt

On June 23, 2022, the Company renewed its unsecured $150 million term loan credit arrangement, as amended from time to time (the "Facility"), with various lenders as arranged by Wells Fargo Securities, LLC. All or a portion of the loan issued under the Facility bears interest at either (a) the Base Rate plus the Applicable Margin or (b) the Adjusted Term Secured Overnight Financing Rate ("SOFR") plus the Applicable Margin, at the Company's discretion. In the event of default, an additional 2% interest in excess of (a) or (b) will be levied, not to exceed the highest rate permissible under applicable law, and certain types of loans may not be available for borrowing by the Company under the Facility. The Facility matures on June 23, 2025, unless accelerated pursuant to the terms of the Facility, and it contains usual and customary representations, warranties, conditions and covenants for bank loan facilities of this type. The Facility also contains certain financial covenants which cap the ratio of consolidated debt to capital and require that the Company maintain a certain minimum consolidated net worth. The net worth requirement is recalculated effective as of the end of each fiscal quarter. As at September 30, 2024, the Company was in compliance with all covenants.

As at
($ in thousands)September 30,
2024		December 31, 2023
Outstanding loan balance$150,000 $150,000 
Loan fair value150,623 150,981 
Unamortized loan issuance costs$84 $170 

Debt issuance costs are amortized over the period during which the Facility is outstanding, as an offset to net investment income (loss). The Company amortized debt issuance costs of less than $0.1 million in each of the three and nine months ended September 30, 2024 and 2023.


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Common Shares

The Company’s authorized and issued share capital at September 30, 2024 and December 31, 2023 is comprised as follows:

($ in thousands, except share and per share amounts)
Authorized:
Common shares of $0.01 par value each (2024 and 2023: 150,000,000)
Issued, outstanding and fully paid:September 30, 2024December 31, 2023
Class A common shares (2024: 17,820,078 and 2023: 28,644,807)
$178 $286 
Class B common shares (2024: 63,668,995 and 2023: 56,036,067)
637 560 
Class C common shares (2024: 19,903,649 and 2023: 25,544,229)
199 255 
Total$1,014 $1,101 

On May 8, 2024, the Company entered into an agreement to repurchase 9.1 million Class A common shares at $12.00 per share (the "Share Repurchase"). The total purchase price was $109.5 million. The common shares purchased by the Company were cancelled following the repurchase transaction.

On August 7, 2024, the Board of Directors authorized a repurchase of the Company's common shares in the aggregate amount of $150 million (the “Authorization”), under which the Company may repurchase shares through open market repurchases and/or privately negotiated transactions. The Authorization will expire when the Company has repurchased the full value of shares authorized, unless terminated earlier by the Board of Directors. As of September 30, 2024, 0.5 million Class B common shares at an aggregate cost of $10.0 million and an average price of $18.87 per common share were repurchased and cancelled and $140.0 million remained available for purchase under the Authorization.

In general, holders of Class A common shares and Class B common shares have one vote for each common share held while the Class C common shares have no voting rights, except as required by law. However, each holder of Class A common shares and Class B common shares is limited to voting (directly, indirectly or constructively, as determined for U.S. federal income tax purposes) that number of common shares equal to 9.5% of the total combined voting power of all classes of shares of the Company (or, in the case of a class vote by the holders of our Class B common shares, such as in respect of the election or removal of directors other than for directors who are appointed by certain shareholders pursuant to the Shareholders Agreement and our Bye-laws, a maximum of 14.92% of the total combined voting power). In addition, the Board of Directors may limit a shareholder’s voting rights when it deems it appropriate to do so to avoid certain material adverse tax, legal or regulatory consequences to the Company or any direct or indirect shareholder or its affiliates.

On September 13, 2024, 1.7 million Class A common shares were converted into Class C common shares at the request of the Class A Members and as approved by the Board.

During the three and nine months ended September 30, 2024, 6.8 million and 7.3 million, respectively, Class C common shares were converted into Class B common shares at the request of the respective Class C Members and as approved by the Board.


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Credit Facilities

The Company has several available letter of credit facilities and a revolving loan facility provided by commercial banks. The letter of credit facilities are utilized to provide collateral to reinsureds of Hamilton Re and its affiliates to the extent required under insurance and reinsurance agreements and to support capital requirements at Lloyd’s.

On December 5, 2018 and December 27, 2018, Hamilton Re Ltd entered into a Master Agreement for Issuance of Payment Instruments and a Facility Letter for Issuance of Payment Instruments respectively, with CitiBank Europe Plc ("CitiBank Europe"), under which CitiBank Europe agreed to provide an uncommitted secured letter of credit facility for the issuance of standby letters of credit or similar instruments in multiple currencies. On August 8, 2023, letter of credit capacity under this facility was increased to $200 million. At all times during which it is a party to the facility, Hamilton Re is obligated to pledge to CitiBank Europe cash and/or securities with a value that equals or exceeds the aggregate face amount of its then-outstanding letters of credit. The Master Agreement contains events of default customary for facilities of this type. In the facility letter, Hamilton Re makes representations and warranties that are customary for facilities of this type and agrees that it will comply with certain informational and other undertakings.

On June 23, 2022, the Company and Hamilton Re amended and restated their unsecured credit agreement with a syndication of lenders (the "Unsecured Facility"). Under the Unsecured Facility, the lenders have agreed to provide up to an aggregate of $415 million of letter of credit capacity for Hamilton Re, up to $150 million of which may be utilized for revolving loans to be issued to the Company. At September 30, 2024, there were no loan amounts outstanding under this facility. Margin rates reflect contractually agreed rates, which are based on Hamilton Re’s current Financial Strength Rating as assigned by A.M. Best. As of April 30, 2024, letters of credit issued under the facility bear interest at a rate of 137.5 basis points (previously 150 basis points), while revolving loans if issued are subject to a fee of SOFR plus a margin of 162.5 basis points (previously 185 basis points). To the extent such loans are issued, the available letter of credit capacity shall decrease proportionally, such that the aggregate credit exposure for the lenders under the credit agreement is $415 million. Amounts unutilized under the facility are subject to a fee of 17.5 basis points (previously 22.5 basis points). Capacity is provided by Wells Fargo, National Association, Truist Bank, BMO Harris Bank N.A., Commerzbank AG, New York Branch, HSBC Bank USA, N.A., and Barclays Bank PLC. Unless renewed or otherwise terminated in accordance with its terms, the Unsecured Facility is scheduled to terminate on June 23, 2025.

On August 12, 2024, Hamilton Re and HIDAC amended their committed letter of credit facility agreement with Bank of Montreal ("BMO"), with the Company as guarantor, under which BMO agreed to make available a secured letter of credit facility of $50 million for a term that will expire on August 13, 2025. The facility bears a fee of 40 basis points for letters of credit issued and 15 basis points on any unutilized portion of the facility.

Effective October 25, 2024, Hamilton Re amended its letter of credit facility agreement with UBS AG ("UBS") under which UBS and certain of its affiliates agreed to make available to Hamilton Re a secured letter of credit facility of $100 million for a term that will expire on October 25, 2025. The facility bears a fee of 140 basis points on the total available capacity.

In addition, on October 28, 2024, Hamilton Re amended the unsecured letter of credit facility agreement that it utilizes to provide Funds at Lloyd's ("FAL") ("FAL LOC Facility") to support the FAL requirements of Syndicate 4000. Capacity is provided by Barclays Bank PLC, ING Bank N.V., London Branch, and Bank of Montreal, London Branch. The FAL LOC Facility of $230 million was renewed for an additional one year term that expires on October 28, 2025. The facility bears a fee of 162.5 basis points on the borrowed amount.

The Company’s obligations under its credit facilities require the Company, Hamilton Re and the other parties thereto to comply with various financial and reporting covenants. All applicable entities were in compliance with all such covenants at September 30, 2024.


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Certain of the Company's credit facilities are secured by pledged interests in the TS Hamilton Fund or the Company's fixed income security portfolio or cash. The Company’s credit facilities and associated securities pledged, were as follows:

($ in thousands)September 30, 2024
Available letter of credit and revolving loan facilities - commitments
$995,000
Available letter of credit and revolving loan facilities - in use
746,786

Security pledged under letter of credit and revolving loan facilities:
   Pledged interests in TS Hamilton Fund
$229,376
   Pledged interests in fixed income portfolio
258,701
   Cash5,271

Financial Strength Ratings

The Company’s principal insurance and reinsurance operating subsidiaries are assigned financial strength ratings from internationally recognized rating agencies A.M. Best, Fitch Ratings and Kroll Bond Rating Agency. These ratings are publicly announced and are available directly from the agencies' websites.

Financial strength ratings represent the independent opinions of the rating agencies as to the relative creditworthiness of a company and its capacity to meet the obligations of its insurance and reinsurance contracts. Independent ratings are one of the important factors that establish a competitive position in insurance and reinsurance markets. These ratings are based on factors considered by the rating agencies to be relevant to policyholders, agents and intermediaries and are not directed toward the protection of investors. Ratings are not recommendations to buy, sell or hold securities.

On April 30, 2024, A.M. Best, a Nationally Recognized Statistical Rating Organization ("NRSRO"), upgraded the Financial Strength Rating to "A" (Excellent) from "A-" (Excellent) and the Long-Term Issuer Credit Ratings ("ICR") of "a" (Excellent) from "a-" (Excellent) of Hamilton Re and HIDAC, each a wholly owned subsidiary of Hamilton. Also, the outlook on these ratings was revised to "stable" from "positive".

On July 2, 2024, Fitch Ratings (“Fitch”), an NRSRO, published Hamilton Re’s Issuer Financial Strength Rating of "A-" (Strong) and Hamilton Insurance Group’s Issuer Default Rating of "BBB+". The rating outlook is "stable".

On July 23, 2024, Kroll Bond Rating Agency, an NRSRO, affirmed the insurance financial strength rating of "A" of Hamilton Re and the "BBB+" issuer rating of Hamilton Insurance Group. The outlook on these ratings was changed to "stable" from "positive", also on July 23, 2024.

On August 7, 2024, A.M. Best increased its financial strength rating of the Lloyd's market from "A" to "A+" with a stable outlook, and on December 13, 2023, S&P Global, an NRSRO, increased its financial strength rating of the Lloyd's market from "A+" to "AA-" with a stable outlook. Our Lloyd’s syndicate benefits from financial strength ratings of “A” (Excellent) from A.M. Best and “AA-” from each of S&P Global, Kroll Bond Rating Agency, or KBRA and Fitch Ratings Inc. ("Fitch").

Reserve for Losses and Loss Adjustment Expenses

Reserve for unpaid losses and loss adjustment expenses

The Company establishes loss reserves using actuarial models, historical insurance industry loss ratio experience and loss development patterns to estimate its ultimate liability of all losses and loss adjustment expenses incurred with respect to premiums earned on the contracts at a given point in time. Loss reserves do not represent an exact calculation of the liability. Estimates of ultimate liabilities are contingent on many future events and the eventual actual outcome of these events may be substantially different from the assumptions underlying the reserve estimates. The Company believes that the recorded reserve for losses and loss adjustment expenses represents management’s best estimate of the cost to settle the ultimate liabilities based on information available at September 30, 2024.


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See Note 9, Reserve for Losses and Loss Adjustment Expenses to the audited consolidated financial statements as included in our Form 10-K for the year ended December 31, 2023 for the reconciliation of the gross and net reserve for losses and loss adjustment expenses and for a discussion of prior year reserve development.

Paid and unpaid losses and loss adjustment expenses recoverable

In the normal course of business, the Company seeks to reduce the potential amount of loss arising from claim events by reinsuring certain levels of risk with other reinsurers. See Summary of Critical Accounting Estimates – Ceded reinsurance and unpaid losses and loss adjustment expenses recoverable in our Form 10-K for the year ended December 31, 2023 for a detailed discussion of the Company’s risks related to ceded reinsurance agreements and the Company’s process to evaluate the financial condition of its reinsurers.

See Summary of Critical Accounting Estimates — Reserve for Losses and Loss Adjustment Expenses in our Form 10-K for the year ended December 31, 2023 for a detailed discussion of losses and loss adjustment expenses.

Recent Accounting Pronouncements

At September 30, 2024, there were no recently issued accounting pronouncements that have not yet been adopted that management expects could have a material impact on the Company’s results of operations, financial condition or liquidity. See Note 2, Summary of Significant Accounting Policies in the audited consolidated financial statements included in our Form 10-K for the year ended December 31, 2023.

Item 3. Quantitative and Qualitative Disclosures About Market Risk 

We are principally exposed to four types of market risk: interest rate risk, credit spread risk, equity price risk, and foreign currency risk. Our investment guidelines permit, subject to approval, investments in derivative instruments such as futures, options, foreign currency forward contracts and swap agreements, which may be used to assume risks or for hedging purposes. There were no material changes to these market risks, as disclosed in "Part II, Item 7A. Quantitative and Qualitative Disclosures about Market Risk" in our Form 10-K for the year ended December 31, 2023. See "Part II, Item 7A. Quantitative and Qualitative Disclosures about Market Risk," in our Form 10-K for the year ended December 31, 2023 for a discussion of our exposure to these risks.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(b) and 15d-15(b) of the Exchange Act, as of the end of the period covered by this report. Based upon that evaluation, our management, including our Chief Executive Officer and Chief Financial Officer, concluded that, at November 7, 2024, our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in Company reports filed or submitted under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended September 30, 2024, which were identified in connection with our evaluation required pursuant to Rules 13a-15 or 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


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Part II. Other Information

Item 1. Legal Proceedings
There have been no material changes to the legal proceedings previously disclosed in our Form 10-K for the year ended December 31, 2023.

Item 1A. Risk Factors 
There have been no material changes to the risk factors previously disclosed in our Form 10-K for the year ended December 31, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table presents share repurchases during the current quarter.

($ in thousands, except per share information)
Shares purchased under publicly announced repurchase program(1)
Other shares purchased(2)
Total shares purchasedMaximum $ amount still available under repurchase program
SharesAverage price per shareSharesAverage price per shareSharesAverage price per share
Available for repurchase$150,000 
July 1 - 31, 2024— $— — $— — $— $— 
August 1 - 31, 2024— $— — $— — $— $150,000 
September 1 - 30, 2024530,049 $18.87 — $— 530,049 $— $139,998 
Total530,049 — 530,049 $139,998 
(1) On August 7, 2024, the Board of Directors authorized the repurchase of the Company's common shares in the aggregate amount of $150 million (the “Authorization”). The Company may repurchase shares through open market repurchases and/or privately negotiated transactions. The Authorization will expire when the Company has repurchased the full value of shares authorized, unless terminated earlier by the Board of Directors. To the extent there is any repurchase activity under the Authorization, it is disclosed in Note 11, Share Capital, and Note 13, Subsequent Events. Repurchases under the Authorization totaled $10.0 million for the three months ended September 30, 2024.
(2) Other shares purchased represents common shares repurchased and cancelled in the Share Repurchase transaction and in respect of withholding tax obligations on the exercise of warrants. See Note 11, Share Capital, to the unaudited condensed consolidated financial statements as included in our Form 10-Q for the three months ended September 30, 2024 for further details of the Share Repurchase.

Item 3. Defaults Upon Senior Securities
None.

Item 4. Mine Safety Disclosures 
Not applicable.

Item 5. Other Information

On September 13, 2024, Mr. Alex Baker, Group Chief Risk Officer and an officer of the Company as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, adopted a trading arrangement for the sale of securities of the Company’s common stock (a “Rule 10b5-1 Trading Plan”), as defined in Regulation S-K, Item 408. Mr. Baker’s Rule 10b5-1 Trading Plan, which has a plan end date of September 2, 2025, provides for the sale of up to 24,000 Class B common shares pursuant to the terms of the plan.



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Item 6. Exhibits

Exhibit No.Description
31.1
31.2
32.1
32.2
101
Interactive Data File for the period ended September 30, 2024. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
104
Cover Page Interactive Data File. The cover page XBRL tags are embedded within the inline XBRL document and are included in Exhibit 101.




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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


Dated: November 7, 2024
HAMILTON INSURANCE GROUP, LTD.
By: /s/ Craig Howie
Craig Howie
Group Chief Financial Officer
(Principal Financial Officer)
By:/s/ Brian Deegan
Brian Deegan
Group Chief Accounting Officer
(Principal Accounting Officer)










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