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美國
證券交易委員會
華盛頓特區20549
__________________________________
表格 10-Q
__________________________________
☒
根據第13條或第15(d)條提交的季度報告
1934年證券交易所法
截至2024年6月30日季度結束 2024年9月30日
或
☐
根據第13或15(d)條交易所之過渡報告
1934年證券交易所法
在從 到 的過渡期間
委員會文件號碼： 001-41862
__________________________________
漢密爾頓保險集團有限公司。
(根據其章程指定的註冊人正式名稱)
__________________________________
百慕達
98-1153847
(成立地或組織其他管轄區)
（聯邦稅號）
Wellesley House North，一樓, 彭布羅克90號彼茨灣路
彭布羅克 Hm 08
百慕達
(主要行政辦公室地址及郵政編碼)

(441) 405-5200
註冊人電話號碼，包括區碼
根據1934年證券交易法案第12(b)條登記的證券：
每種類別的名稱
交易標的（s）
每個註冊交易所的名稱
b類普通股，每股面值$0.01
HG
紐約證券交易所
請勾選表明以下事項：(1)在過去12個月（或對於要求提交這類報告期間更短的情況）內，公司已提交交易所法案第13條或15(d)條要求提交的所有報告；並且 (2) 在過去90天內，公司一直受到這些提交要求的約束。 ☒ 是 ☐ 否


請以勾選符號表示，是否在過去12個月以來（或在註冊人被要求提交和發帖此類文件的更短期間內）根據《S-t法規》第405條第232.405條提交了每個交互數據文件。
☒ 是 ☐ 否
請勾選該申報人是否為大型快速申報人、快速申報人、非快速申報人、小型報告公司或新興成長型公司。有關「大型快速申報人」、「快速申報人」、「小型報告公司」和「新興成長型公司」的定義，請參閱交易所法案第1202條。
大型加速歸檔人
☐
加速歸檔人
☐
非加速歸檔人
☒
小型報告公司
☐
新興成長型企業
☐
如果是新興成長公司，請勾選，以示公司選擇不使用交易所法案第13(a)條所提供的任何新或修訂財務會計準則的延長過渡期。 ☐
用勾選表示是否申報人是空殼公司（依照法案規則120億2條定義）。☐ 是 ☒ 否
截至2024年10月31日，登記人持有的B類普通股數量為 64,196,974.


漢密爾頓保險集團有限公司。

目錄

頁面

1

有關前瞻性陳述的特別提示

漢密爾頓保險集團公司（"季度報告"）的10-Q表格包括根據美國1995年私人證券訴訟改革法案的安全港條款 "前瞻性陳述"。 可以通過使用"相信"、"預期"、"可能"、"將"、"目標"、"應該"、"能夠"、"將"、"尋求"、"打算"、"計劃"、"考慮"、"估計"或"預期"等表示法來識別前瞻性陳述，有關我們的策略、計劃、預測或意向。 這些前瞻性陳述出現在許多地方並涉及我們的行業板塊、成長策略、市場定位、未來運營、利潤率、盈利能力、資本支出、流動性和資本資源以及其他財務和運營信息。 根據其性質，前瞻性陳述：僅反映其發表之日的情況；並非歷史事實陳述或未來表現保證；並受到難以預測或量化的風險、不確定性、假設或環境變化的影響。 我們的期望、信仰和預測均表達出誠意，我們認為對其有合理基礎。 但是，不能保證管理層的期望、信仰和預測將會實現，實際結果可能與前瞻性陳述中表達或暗示的內容有很大差異。

本文中提到，有許多風險、不確定因素和其他重要因素可能導致我們的實際結果與此處包含的前瞻性陳述大不相同。這些風險、不確定因素和其他重要因素包括，但不限於，『風險因素』和『財務狀況和營運結果的管理層討論』中所述的風險、不確定因素和因素，這些均包含在截至2023年12月31日止年度的公司年度報告，即『10-K表格』中，以及公司隨後向證券交易委員會提交的其他後續定期報告及以下內容：

•我們的營運狀況和財務狀況可能受不可預測的災難性事件、全球氣候變化或新興索賠和索賠問題的不利影響。
•如果我們未能準確評估承保風險，我們的儲備不足以支付實際損失，我們對風險的模型或評估和價格設定不正確，或者我們失去重要的經紀人關係，我們的業務可能會受到重大不利影響。
•保險和再保險業務在歷史上是循環的，我們產品的定價和條款可能下降，這將影響我們的盈利能力和維護或增加保費的能力。
•我們擁有重要的海外業務，使我們承受著特定額外風險，其中包括外匯風險和政治風險。
•我們無法控制《Two Sigma Hamilton Fund, LLC（“TS Hamilton基金”）》投資組合的配置和/或表現，其表現取決於其投資經理Two Sigma Investments, LP（“Two Sigma”）選擇和管理適當的投資，我們的資本賬户提款能力有限。
•Two Sigma Principals, LLC，Two Sigma及其各自的聯屬公司存在潛在利益衝突可能對我們產生不利影響。
•Two Sigma的歷史表現未必預示TS Hamilton基金投資組合的未來結果或我們的未來結果。
•我們需要能夠管理宏觀經濟條件帶來的風險，這些風險來自地緣政治和全球經濟事件，包括公共衛生危機、當前或預期的軍事衝突、恐怖主義、制裁、能源價格上升、通脹和利率以及其他全球事件；
•我們能夠成功競爭更多的競爭對手，以及與再保險和保險行業合併相關的風險；
•評級機構可能對我們進行降級、潛在降級或其他負面行動的風險；
•我們依賴關鍵高管，包括受百慕大就業限制影響可能損失百慕大基地人員，以及無法吸引合適人才，特別是在競爭激烈的招聘環境中；
•我們依賴可能無法以商業上可接受的條件取得的信用證明之設施；
•我們未來可能需要額外資本，而這些資本可能對我們不利或根本無法取得；
•我們的子公司保險牌照可能會被暫停或撤銷的風險；
•我們的投資策略相關風險，這些風險可能比競爭對手面臨的風險更大；
2

•監管環境變化以及公司未來可能面對更嚴格的監管審查；
•再保險業務週期性下滑；
•運營失敗、信息系統故障或未能保護客戶信息保密，包括由服務業者，或由第三方或我們聯屬公司因違約、錯誤或遺漏而導致損失；
•我們是一家控股公司，沒有直接營運，我們的保險和再保險子公司支付給我們的分紅和其他分配受到法律限制；
•與我們識別和執行增長機會或完成交易，按計劃進行或實現我們收購或其他投資預期利益的風險；
•由於稅法變動或其他原因，我們有可能被美國聯邦所得稅、百慕大稅或其他稅收徵收；
•可能將我們和/或我們的任何附屬公司界定為被動外國投資公司，或PFIC；
•我們有可能根據美國外國帳戶稅收法案或FATCA規定成為美國扣繳和信息報告要求的對象；
•作為一家公開公司經營將增加我們的成本，我們的管理層將需要花費大量時間來遵守公開公司的規定;
•如果我們發現實質缺陷且無法補救此類實質缺陷，或無法實現並維持有效的內部控制，我們的營運結果和財務狀況可能受到影響，我們的B類普通股價格可能受到負面影響;
•我們的B類普通股沒有先前的公開市場，這意味著我們的股價可能波動，並且我們的組織文件中包含的反收購條款可能延遲管理變更;
•由於現有股東未來出售股份，我們的B類普通股市價可能下降的風險;
•適用的保險法可能使難以實現我們公司的控制權轉讓;
•投資者可能在美國對我們執行訴訟程序或強制執行判決會遇到困難;

可能有其他因素可能導致我們的實際結果與前瞻性陳述有實質差異，包括在10-k表格的〝風險因素〞部分和本季度報告中的〝管理討論及財務狀況和營運結果分析〞中披露的因素。您應該在這些風險和不確定性的背景下評估此處所作的所有前瞻性陳述。

您應充分閱讀並理解這些資訊，並了解實際未來結果可能與期望大不相同。我們提醒您，上述風險、不確定性和其他因素可能並未包含所有對您重要的風險、不確定性和其他因素。此外，我們無法保證我們將實現我們期望或預期的結果、利益或發展，甚至如果實現，也可能不會產生預期的後果或影響我們或我們的業務的方式。這裡包含的所有前瞻性陳述僅適用於本日期，並且已完全被這些警語陳述明確限制。我們不承諾公開更新或修改任何前瞻性陳述以反映隨後事件或情況。



3


第一部分. 財務信息
項目1. 基本報表

未經審核之總體財務基本報表指數

頁面


4

漢密爾頓保險集團有限公司。
未經審核的簡化合併資產負債表
($ 以千計，每股信息除外)
九月三十日
2024		十二月三十一日
2023
資產
固定到期投資，以公平價值計算
（2024 年攤銷成本：$2,306,168; 2023: $1,867,499)
$2,320,184 $1,831,268 
短期投資，以公平價值計算（2024 年攤銷成本：$506,244; 2023: $427,437)
507,947 428,878 
投資於兩個西格瑪基金，以公平價值計算（成本 2024 年：$829,606; 2023: $770,191)
932,787 851,470 
投資總額
3,760,918 3,111,616 
現金及現金等值
957,372 794,509 
限制現金及現金等值
93,883 106,351 
應收保費
885,744 658,363 
已繳損失可回收
146,008 145,202 
延期收購成本
205,953 156,895 
未償還的損失及損失調整開支可回收
1,190,465 1,161,077 
已售出投資的應收帳款
39,079 42,419 
預付再保險
260,174 194,306 
無形資產
94,441 90,996 
其他資產
192,510 209,621 
總資產
$7,826,547 $6,671,355 
負債、非控制權益及股東權益
負債
保留損失及損失調整開支
$3,434,800 $3,030,037 
未賺取的保費
1,192,071 911,222 
應付再保險餘額
334,511 272,310 
購買投資的應付帳款
172,905 66,606 
定期貸款，扣除發行成本
149,916 149,830 
應付帳款及累計費用
168,658 186,887 
對相關人士的應付帳款
— 6,480 
負債總額
5,452,861 4,623,372 
非控制權益 — TS 漢密爾頓基金
60,060 133 
股東權益
普通股：
A 類，授權（2024 年： 26,944,807 和二零二三年： 28,644,807），面值 $0.01;
已發行及未償還 (2024 年: 17,820,078 和二零二三年： 28,644,807)
178 286 
B 類，授權（2024 年： 79,677,932 和二零二三年： 72,337,352），面值 $0.01;
已發行及未償還 (2024 年: 63,668,995 和二零二三年： 56,036,067)
637 560 
C 類，授權（2024 年： 19,903,649 和二零二三年： 25,544,229），面值 $0.01;
已發行及未償還 (2024 年: 19,903,649 和二零二三年： 25,544,229)
199 255 
額外支付資本
1,172,331 1,249,817 
累積其他綜合損失
(4,441)(4,441)
保留盈利
1,144,722 801,373 
股東權益總額
2,313,626 2,047,850 
負債總額、非控制權益及股東權益
$7,826,547 $6,671,355 

請參閱附註資料 未經審核的簡明報告 合併基本報表。
5
漢密爾頓保險集團有限公司。
未經核數的簡明 綜合損益表及綜合損益（虧損）表
截至2024年和2023年9月30日的三個月和九個月








結束於三個月的期間九個月結束了
九月三十日，九月三十日，
（以千元為單位，除每股信息外）
2024202320242023
收益
已核寫保費$553,401 $474,123 $1,878,645 $1,517,247 
再保險保費轉出(75,505)(90,557)(410,802)(400,475)
已發出的淨保費477,896 383,566 1,467,843 1,116,772 
未賺得保費淨變化(29,101)(46,530)(214,981)(164,374)
已贏取保費淨額448,795 337,036 1,252,862 952,398 
投資方面實現和未實現的收益（虧損）48,228 47,343 454,851 101,881 
淨投資收益(損失)17,330 8,069 43,667 17,719 
投資獲利（虧損）淨額及投資收益淨額65,558 55,412 498,518 119,600 
其他收入（損失）4,464 2,386 17,934 7,838 
凈外匯收益（虧損）(5,973)1,432 (9,883)(3,953)
總收益512,844 396,266 1,759,431 1,075,883 
費用
虧損及損失調整費用273,632 191,577 720,478 519,554 
收購成本102,201 78,537 283,059 220,532 
總部及行政費用62,392 63,035 182,164 158,075 
營業無形資產攤銷5,204 2,794 11,773 7,869 
利息費用5,351 5,288 17,090 16,007 
總支出448,780 341,231 1,214,564 922,037 
應稅前收益（虧損）64,064 55,035 544,867 153,846 
所得稅費用（利益） 3,029 2,387 6,118 6,908 
凈利潤（損失）61,035 52,648 538,749 146,938 
歸屬於非控股利益的凈利潤（虧損）(17,215)9,065 172,240 15,076 
歸屬於普通股股東的凈利潤（虧損）及其他綜合收益（虧損）$78,250 $43,583 $366,509 $131,862 
每股數據
歸屬於普通股股東的每股基本收益（虧損）
$0.77 $0.42 $3.45 $1.27 
歸屬於普通股股東的每股稀釋收益（虧損）
$0.74 $0.41 $3.33 $1.26 





請參閱附註資料 未經審核的簡明報告 合併基本報表。
6
漢密爾頓保險集團有限公司。
未經核數的簡明 股東權益合併報表
截至2024年和2023年9月30日的三個月和九個月
結束於三個月的期間九個月結束了
九月三十日，九月三十日，
（以千元為單位）2024202320242023
普通股
期初餘額
$1,019 $1,036 $1,101 $1,031 
發行普通股份
— 1 11 8 
普通股份的回購
(5)— (98)(2)
期末餘額
1,014 1,037 1,014 1,037 
資本公積額額外增資
期初餘額
1,171,585 1,124,566 1,249,817 1,120,242 
發行普通股份
— (1)386 (8)
普通股回購
(6,092)— (100,136)(1,776)
股份報酬支出
6,838 3,988 22,264 10,095 
期末餘額
1,172,331 1,128,553 1,172,331 1,128,553 
其他綜合損益（損失）累積額
期初與期末結餘
(4,441)(4,441)(4,441)(4,441)
保留收益
期初餘額
1,070,384 630,993 801,373 547,352 
凈利潤（損失）
61,035 52,648 538,749 146,938 
歸屬於非控股利益的凈利潤（虧損）
17,215 (9,065)(172,240)(15,076)
股份報酬支出— — — (4,169)
普通股回購
(3,912)— (23,160)(469)
Balance, end of period
1,144,722 674,576 1,144,722 674,576 
股東權益總額
$2,313,626 $1,799,725 $2,313,626 $1,799,725 

查看附註以獲得更多資訊 未經審核的簡明基本報表 合併基本報表。
7
漢密爾頓保險集團有限公司。
未經審核之現金流量表
截至2024年9月30日和2023年九個月結束時

九個月結束了
（以千元為單位）九月三十日，
2024		九月三十日，
2023
營運活動
凈利潤（損失）
$538,749 $146,938 
調整以便調和 凈利潤相對於營運活動現金提供者:
折舊與攤提
13,081 8,990 
股份報酬支出
22,264 10,095 
投資方面凈實現（盈利）損失
(382,646)(32,363)
投資方面凈未實現（盈利）損失變動
(72,205)(69,518)
其他事項
(11,786)1,330 
變動：
應收的保險費
(227,381)(166,372)
已支付損失可收回
(806)(47,659)
推迟的获得成本
(49,058)(36,167)
預付再保險
(65,868)(67,898)
未支付的損失和損失調整費可收回
(29,388)20,740 
其他資產
17,111 3,253 
儲備用於損失和損失調整費用
404,763 92,547 
未赚保费
280,849 233,408 
應付再保險結餘
62,201 123,634 
應付帳款、應付費用及其他
(24,667)26,711 
營運活動之淨現金提供（使用）量
475,213 247,669 
投資活動
來自Two Sigma基金贖回的款項
2,129,185 1,821,046 
捐款給Two Sigma基金
(1,836,664)(1,954,119)
購買固定到期投資
(1,466,805)(809,646)
來自固定到期投資的銷售、贖回和到期退還款項
1,032,664 418,677 
購買短期投資
(1,335,003)(1,078,631)
來自短期投資的銷售收益
1,288,278 1,032,091 
投資售出應收款項的變動
3,340 (18,673)
購買投資的應付款項變動
106,299 69,741 
其他
(16,570)(11,425)
投資活動提供的（使用的）淨現金
(95,276)(530,939)
融資活動
發行普通股份
11 8 
普通股回購
(123,394)(2,247)
額外实收资本的贡献
386 (8)
撤回非控制權益
(112,313)(15,066)
籌資活動提供的淨現金
(235,310)(17,313)
匯率變動對現金及現金等價物及受限現金及現金等價物的影響
5,768 (3,093)
現金及現金等價物及受限現金及現金等價物的淨增加（減少）
150,395 (303,676)
現金及現金等價物及受限現金及現金等價物，期初
900,860 1,207,203 
現金及現金等價物及受限現金及現金等價物，期末
$1,051,255 $903,527 
查看附註以獲得更多資訊 未經審核的簡明基本報表 合併基本報表。
8
漢密爾頓保險集團有限公司。
附註：未經查核之縮表合併財務報表注釋。
1. 組織

漢密爾頓保險集團有限公司（「漢密爾頓集團」、「集團」或「公司」）為旗下控股公司，在2013年9月4日根據百慕達法律成立。2023年11月14日，該公司完成了其B類普通股初始公開發行（「IPO」），並在紐交所上市。

我們的百慕達業務由Hamilton Re, Ltd. ("Hamilton Re") 主導，該公司是在百慕達註冊的第四級保險公司。Hamilton Re 在全球範圍內提供財產、意外和專業保險和再保險。

Hamilton Re US是一個稅務合夥關係，是根據Hamilton Re和其百慕達子公司Hamilton ILS Holdings Limited之間的安排而形成的。稅務合夥關係被視為美國公司，用於美國稅務目的，並向美國國內稅務局註冊，從分配給Hamilton Re US的資本所獲得的承包和投資收入受到美國稅務規定。

Ada Capital Management Limited（「ACML」），一家在百慕達成立並受監管的全資保險代理，被授權代表Ada Re, Ltd.（「Ada Re」）承保。

我們倫敦業務由漢密爾頓管理機構有限公司（"HMA"）組成，該公司是勞埃德保險公司（Lloyd’s）的管理機構，負責管理我們完全對齊的Syndicate 4000和第三方資助的Lloyd’s辦事處。Syndicate 4000在勞埃德市場運營，以訂閱的形式承保財產、意外和專業保險和再保險業務。

我們的都柏林業務由Hamilton Insurance Designated Activity Company ("HIDAC")構成，這是位於都柏林的一家保險公司，擁有一家在英國的分支機構，並在美國所有50個州皆擁有豐富的執照，包括超額和剩餘保險以及再保險。

Hamilton Managing General Agency Americas LLC（"HMGA 美洲"）已在美國全境獲得許可，並代表集團的倫敦、都柏林和百慕達業務進行承保，僅涉及Hamilton Re US部分，在美國提供通往倫敦市場、集團評級的愛爾蘭承運人以及集團的百慕達資產負債表的渠道。

Hamilton Select 保險公司（「Hamilton Select」）是一家美國國內的超額和殘餘保險業務運營商，成立於特拉華州，並獲准在所有50個州撰寫超額和殘餘業務。

Two Sigma Hamilton Fund, LLC（"TS Hamilton Fund"）是一家特拉华有限責任公司。2013年，Hamilton Re與TS Hamilton Fund和Two Sigma Principals, LLC（"管理成員"）簽署了一份有限責任公司協議，其中Two Sigma Principals, LLC是TS Hamilton Fund的管理成員。自2023年7月1日起，Hamilton Re已承諾對TS Hamilton Fund進行投資，金額最高為（i）$1.8十億或（ii） 60％的Hamilton Group净有形资产（之前等於Hamilton Group的综合净有形资产最低的 95％）。TS Hamilton Fund已聘請了Two Sigma Investments, LP（"Two Sigma"），一家特拉华有限合伙公司，作為其投資經理。Two Sigma是一家註冊於美國證券交易委員會的投資顧問，專門從事定量分析（請參見備註3， 投資 了解更多詳細信息）。

未合併的相關方

Ada Re是一家由第三方投資者資助的特殊用途保險人，旨在為Hamilton集團和第三方轉分保人提供完全抵押再保險和迴溯再保險。

東信再保險發行了一項行業損失指數觸發的災難債券，為公司的營運平台提供多年風險轉移能力，以保護美國和加拿大的颶風和地震風險。請參見附註7。 再保險，以獲得更多詳細信息。


9
漢密爾頓保險集團有限公司。
附註：未經查核之縮表合併財務報表注釋。
2. 重要會計政策摘要

公司在2023年12月31日結束的年度報告Form 10-K中描述的重要會計政策未有任何實質變更，除非下文另有說明。
a.報告基礎

這些未經審計的簡明綜合基本報表已根據美國普遍公認會計原則（"GAAP"）和《S-X法規第10條》的規定編製，用於揭示中期財務信息。因此，它們並不包括GAAP要求的完整基本報表中所需的所有信息和註腳。此外，年底資產負債表數據源自經審計的基本報表，但並未包含所有GAAP要求的披露。在管理層的意見中，這些未經審計的簡明綜合基本報表反映出根據普通循環性應計負債組成的所有調整，被認為對公司財務狀況和營運結果的公平呈現於呈現的期末及相應期間是必要的。
這些基本報表包括漢密爾頓集團、漢密爾頓再保險、漢密爾頓英國控股有限公司、漢密爾頓選擇、HMGA美洲、ACML和TS漢密爾頓基金（以下簡稱“公司”）的賬戶。所有重大公司內部交易和餘額在合併時已被消除。某些比較信息已重新分類以符合當前年度的呈現。
b.估計的使用

根據GAAP準則編制基本報表，管理層需就資產及負債的申報金額、揭露金額以及基本報表日期時點上的條件資產和負債的揭露，以及報告期間內的收入和費用金額進行估計和假設。 實際結果可能與這些估計不同。 公司基本報表中的重要估計包括但不限於已獲承保的費用、估計未來信用損失的準備金、損失備付及損失調整費用，以及投資公平價值。

c.近期會計宣告

最近公佈的會計準則

在2023年11月，FASB發布了ASU 2023-07。 板塊報告該指南增強了與可報告部門相關的定性和定量披露。該指引將於2023年12月15日後開始的年度期間和2024年12月15日後開始的中期期間生效。允許提前採納。這項指引將不會對公司的營運結果、財務狀況或現金流量產生實質影響。

2023年12月，FASB發布了ASU 2023-09（第740號課題） 改進所得稅披露。ASU 2023-09要求公司每年披露有效稅率協調中的具體類別，並提供有關滿足定量門檻的協調項目的額外資訊。此外，ASU 2023-09要求公司披露更多關於所支付所得稅的信息。ASU 2023-09將從2025年1月1日開始的年度週期生效，並將採用前瞻性基礎，並選擇性地回顧性地應用該標準。公司正在評估ASU 2023-09的披露影響。 所得稅 ，該增強了與稅率協調有關的定量年度披露和所支付的所得稅的要求，並要求對適用稅收司轄區的性質和某些協調項目性質進行額外的定性討論。該指引適用於2024年12月15日後開始的年度時期。允許提前採用。該指引不會對公司的營運結果、財務狀況或現金流量產生實質影響。


10
漢密爾頓保險集團有限公司。
附註：未經查核之縮表合併財務報表注釋。
3. 投資

固定到期日和短期投資-交易

公司的定期和短期投資如下：

2024年9月30日
（以千元為單位）
攤銷後成本毛未實現收益未實現虧損總額合理價值
固定到期日:
美國政府債務券$761,334 $9,273 $(5,679)$764,928 
美國各州、地區和政府機構13,528 114 (175)13,467 
非美國主權政府和超國家機構74,679 3,029 (532)77,176 
公司股份1,118,605 24,677 (9,485)1,133,797 
居住抵押支持證券 - 代理機構258,788 3,069 (10,343)251,514 
居住抵押支持證券 - 非代理機構5,790 109 (540)5,359 
商業抵押支持證券 - 非代理機構33,189 535 (615)33,109 
其他資產支持證券40,255 660 (81)40,834 
總固定到期資產2,306,168 41,466 (27,450)2,320,184 
短期投資
506,244 1,709 (6)507,947 
總計$2,812,412 $43,175 $(27,456)$2,828,131 

2023年12月31日
（以千元為單位）
攤銷後成本毛未實現收益未實現虧損總額合理價值
固定到期日:
美國政府債券$717,134 $5,137 $(14,021)$708,250 
美國各州、各地區和市政府4,656 — (286)4,370 
非美國主權政府和超國家機構55,662 2,175 (1,591)56,246 
公司股份877,493 8,443 (22,060)863,876 
住宅按揭證券 - 機構180,661 435 (12,583)168,513 
住宅按揭證券 - 非機構5,639 16 (671)4,984 
商業按揭證券 - 非機構11,473 — (1,050)10,423 
其他資產支持證券14,781 20 (195)14,606 
總固定到期資產1,867,499 16,226 (52,457)1,831,268 
短期投資
427,437 1,441 — 428,878 
總計
$2,294,936 $17,667 $(52,457)$2,260,146 


11
漢密爾頓保險集團有限公司。
附註：未經查核之縮表合併財務報表注釋。
合約到期摘要

以下表格顯示固定到期證券的合約到期日。預期到期日可能與合約到期日不同，因為借款人可能有看漲或預約權，而不論是否有看漲或預約罰款。

2024年9月30日
（以千元為單位）
攤銷後成本合理價值
不足一年
$149,305 $148,136 
一到五年後到期
1,590,516 1,607,936 
五到十年後到期
224,518 229,859 
十年後到期的
3,807 3,437 
抵押支持證券
297,767 289,982 
資產支持證券
40,255 40,834 
總計
$2,306,168 $2,320,184 

投資於兩個Sigma基金

公司對Two Sigma基金的投資如下所示:

2024年9月30日2023年12月31日
（以千元為單位）
成本未實現利益（損失）合理價值成本未實現利益（損失）合理價值
Two Sigma 期貨 投資組合, LLC (FTV)
$352,138 $7,017 $359,155 $433,911 $(38,105)$395,806 
Two Sigma Spectrum 投資組合, LLC (STV)
337,247 55,581 392,828 193,299 88,228 281,527 
Two Sigma Equity Spectrum 投資組合, LLC
（ESTV）
140,221 40,583 180,804 142,981 31,156 174,137 
總計
$829,606 $103,181 $932,787 $770,191 $81,279 $851,470 

本公司通過投資於 FTV、STV 和 ESTV，致力於在大量資本基礎上實現美元計價的絕對回報，主要通過結合多種對沖和槓桿系統性投資策略與專有風險管理和執行技術。這些系統化策略包括但不限於基於技術和統計的、基本基礎、以事件為基礎，基於市場條件和基於點差的策略，以及基於貢獻者和/或情感的策略和混合策略。FTV 主要利用系統化策略，以獲得廣泛的外匯、固定收益、股票和信貸指數以及商品的宏觀曝光率，主要通過交易期貨、期貨、遠期、期權、交換、現金債券和交易所交易產品。STV 主要利用系統化策略交易美國上市股票證券及相關工具及衍生工具。ESTV 主要利用系統化策略交易非美國上市股票證券及相關工具和衍生工具。於二零二四年九月三十日，該公司擁有一個 18.5%, 17.9百分比和 9.8分別對 FTV、STV 和 ESTV 基金的百分比權益。

下表概述FTV、STV和ESTV的某些投資情況，其中TS漢密爾頓基金對該投資的公平價值所佔TS漢密爾頓基金成員權益的比例超過5%：

2024年9月30日
（以千元為單位）
本金 / 股份 (1)
公平
價值 (1)
會員權益百分比
道富銀行金融機構貨幣型基金185,175 $185,175 9.9 %
美國國庫證券，0.0000% - 4.2500%，到期日為10/29/2024 - 8/15/20442,049,275 $2,073,372 110.3 %
道富銀行機構財務+貨幣型基金98,599 $98,599 5.3 %
美國國庫券，3.5000% - 4.2500%，截至2026年9月30日 - 2054年8月15日(852,058)$(850,202)(45.2)%
(1) TS Hamilton Fund的價值代表對FTV、STV和ESTV總持股比例。

12
漢密爾頓保險集團有限公司。
附註：未經查核之縮表合併財務報表注釋。
2 Sigma 和管理成員為本公司的關係人，如附註 1 進一步所述。 組織。由 2023 年 7 月 1 日起，與雙西格瑪簽訂的修訂投資管理協議要求 TS 漢密爾頓基金支付管理費 2.5TS 漢密爾頓基金每年資產淨值中非管理成員股權的百分比（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個月的管理費為美元11.8 百萬和美元10.4截至二零二四年九月三十日和 2023 年 9 月 30 日止九個月的管理費分別為百萬元35.0 百萬和美元34.4 分別是百萬。

根據Hamilton Re與管理成員之間修訂後的有限責任公司協議條款，管理成員仍有權獲得等於其激勵分配的獎勵分配，相等於所 30TS Hamilton基金的凈利潤的%（受高水位條款約束），並根據提取款項和分配給管理成員的任何激勵分配進行調整。如果在一個季度內出現凈虧損，而在隨後的任何季度出現凈利潤，則管理 50成員有權獲得修改後的激勵分配，其中常規激勵分配將減少%，直到後續累計凈利潤金額相當於之前分配的凈虧損的% 200。管理成員還有資格在每個財政年度結束時（或Hamilton Re提取其資本的全部或部分資金時），根據新的額外激勵分配金額獲得修訂後的額外激勵分配，其金額相等於 25 Excess Profits的%，先前為 20）。對於任何給定的財政年度（或其他同樣的會計期間），"超額利潤"指的是扣除管理費用和開支和激勵分配前的凈利潤超過% 10 為止的净利润，然后扣除管理费用和支出以及激勵分配，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分別為2023年6月30日和2024年結束的三個月，淨所得稅（收益）支出分別為 $9.1分别為3,000萬美元和2,000萬美元，截至2024年和2023年9月30日為止的九個月內的總激勵分配（包括額外的激勵分配）為$172.2 百萬美元和15.1 百萬美元。

Hamilton Re對TS Hamilton Fund有一項承諾，保持一定金額，不超過（i）$基金的較低者，即1.8十億或
(ii) 60Hamilton Insurance Group的淨有形資產在TS Hamilton Fund中的百分比，控股的較小金額為"最低承諾金額"，為 三年期間相對於S＆P 500 IT板塊指數進行度量，有潛在購股%的帶有TSR數據量度的PSUs 一段時間 ("初始期") 以及滾動 三年 期間，此後的每個 三年 期間為"承諾期間"，受特定情況和下面描述的流動性期權的影響，承諾期間將於2027年6月30日結束。承諾期間包括 3年 每年自動續約的滾動期限，除非Hamilton Re或管理成員提前通知不續約。

TS Hamilton基金一般有兩種流動性期權，受Hamilton Re的最低投資承諾所限，分別如下:

•每月流動性-滿足特定條件，漢密爾頓再保險可能要求全部或部分提取其賬戶資金，但必須在該日歷月份結束之前最遲提出。 十五天 在日歷月份結束之前的前十五天，即當月最後一天生效。

•日常流動性-根據一定的有限條件，包括需要滿足Hamilton Re根據其承保業務所產生的義務，Hamilton Re可能要求撤回所有或部分資本賬戶，需至少提前一個工作日以書面形式通知作出撤回申請日期與經理成員。 一年。 業務日的書面通知後，在至少1個工作日的通知請求日期後，管理成員可能要求撤回其全部或部分資金帳戶。

根據自身判斷，管理成員可以允許或要求Hamilton Re在其他時間撤回其全部或部分資本賬戶，或者免除或減少某些通知期限，或者允許通知被撤回。管理成員可以隨時撤回其全部或部分資本賬戶。


13
漢密爾頓保險集團有限公司。
附註：未經查核之縮表合併財務報表注釋。
投資總淨實現及未實現收益（損失）及淨投資收益（損）

總投資淨實現與未實現利益（損失）及淨投資收益（損失）的元件如下：

結束於三個月的期間九個月結束了
九月三十日，九月三十日，
（以千元為單位）
2024202320242023
投資的淨實現和未實現的收益（損失）：
投資的淨實現收益（損失）$93,711 $42,403 $382,646 $32,363 
投資未實現收益（損失）變動(45,483)4,940 72,205 69,518 
投資方面實現和未實現的收益（虧損）48,228 47,343 454,851 101,881 
淨投資收入（虧損）：
定期債券22,067 12,208 58,025 31,178 
短期投資10 38 50 287 
TS Hamilton 基金3,108 3,121 9,040 13,033 
現金及現金等價物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 
管理費(12,207)(10,958)(36,640)(35,806)
其他費用(338)(265)(875)(740)
淨投資收益(損失)
17,330 8,069 43,667 17,719 
投資獲利（虧損）淨額及投資收益淨額$65,558 $55,412 $498,518 $119,600 

投資淨實現利損

投資之淨實現收益（虧損）的元件如下：

結束於三個月的期間九個月結束了
九月三十日，九月三十日，
（以千元為單位）
2024202320242023
固定到期日和短期投資$2,769 $(7,688)$(1,866)$(10,796)
TS Hamilton基金 90,942 50,091 384,228 42,948 
其他 — — 284 211 
投資的淨實現收益（損失）$93,711 $42,403 $382,646 $32,363 

投資的未實現收益（損失）

投資的未實現收益（損失）的元件如下所示：

結束於三個月的期間九個月結束了
九月三十日，九月三十日，
（以千元為單位）
2024202320242023
定期到期債務和短期投資$64,903 $(12,818)$50,304 $(9,800)
TS漢密爾頓基金 (110,386)17,758 21,901 79,318 
投資中的未實現損益$(45,483)$4,940 $72,205 $69,518 


14
漢密爾頓保險集團有限公司。
附註：未經查核之縮表合併財務報表注釋。
質押資產

2024年9月30日和2023年12月31日，按照公允價值計算的抵押投資分別為$250.3百萬和$232.2百萬，用於為在Lloyd's進行的業務所需的部分資本需求提供保證，分別為$89.1百萬和$54.1百萬，作為為美國州監管機構設立的信託賬戶的利益，分別為$32.5百萬和$37.2百萬，用於保護其他承保義務的分別擔保。此外，某些投資被用作信用證保證設施的抵押品，詳情請參見附註10， 債務和信用設施.

在2024年9月30日和2023年12月31日，受限制的現金及現金等價物餘額分別為$89.6百萬和$97.4百萬，分別用於其他承銷義務擔保，$2.7百萬和$7.2百萬，分別撥作於Lloyd的業務所需的部分資本要求，$1.6百萬和$1.5百萬，分別存入信託帳戶，以供監管機構受益，並$Nil 15.10.3分別為托管基金的數百萬及數百萬美元。

資金流量表中報告的現金及現金等價物和受限制現金及現金等價物總額為$1.1 十月三十日負債表中現金及現金等價物為$1.0 十月三十日負債表中受限制現金及現金等價物為$93.9 2024年9月30日資金流量表中報告的現金及現金等價物和受限制現金及現金等價物總額為$900.9 2023年12月31日負債表中現金及現金等價物為$794.5 2023年12月31日負債表中受限制現金及現金等價物為$106.4 負債表中現金及現金等價物為$

4. 合理價值

金融工具需按公允價值計量

根據會計指引，對於公平價值衡量需要反映市場參與者基於最佳可得資訊對資產或負債定價所使用的假設。假設包括特定估值技術（例如價格模型）中固有的風險和/或模型輸入中存在的風險。金融工具的公平價值是在測量日期（「退出價格」）之間市場參與者之間進行交易時將獲得的資產銷售金額，或轉移負債時將支付的金額。公司所擁有的工具是按照買盤價格標記的。

公平值計量基礎

公允價值衡量會計指引還設立了一個公允價值層次結構，用於排定用於衡量公允價值的估值技術的輸入優先順序。此層次將最高優先順位賦予於活躍市場中對應資產或負債的未調整報價價格（一級衡量）和將最低優先順位賦予於不可觀察的輸入（三級衡量）。 資產或負債在公允價值層次中的分類基於其估值中的重要輸入的最低級別。公允價值層次的三個層級為：

•一級 公司在計量日期可以取得的反映未調整報價的相同資產或負債的活躍市場資料；

•第二級 - 層級1中包括資產或負債的可觀察價格以外的其他輸入，這些輸入可以直接或間接地觀察到，包括在非活躍市場中被認為不活躍的市場中的輸入；和

•等級 3 對公允價值計量既重要又不可觀察的輸入。

資產記錄於公平值 - 定期和短期投資

以下部分描述了用於判斷公司固定到期和短期投資按資產類別確定公平價值的估值方法：

•美國政府債券： 根據觀察市場輸入的公平價值，例如報價、已報交易、類似發行的報價和基準收益率；

•美國各州、地區和市政府： 根據觀察市場輸入，如報價市場價格、類似證券的報價價格、基準收益率和信貸利差，進行公平價值評估；


15
漢密爾頓保險集團有限公司。
附註：未經查核之縮表合併財務報表注釋。
•非美國主權政府和超國家機構： 根據可觀察的市場輸入，如報價市場價格、類似證券的報價價格和具有可觀察輸入的模型（如基準收益率和信貸價差），然後（如適用）使用從國際認可的來源獲取的匯率轉換為美元；

•企業： 根據可觀察市場輸入的公允價值，如報價市場價格、類似證券的報價價格、基準收益率和信貸利差；

•資產抵押證券和按揭抵押證券： 公平價值基於可觀察的輸入，如報價、報告的交易、類似發行的報價或基準收益率以及使用可觀察的輸入的現金流模型，如預償速度、擔保品表現和違約差額；和

•短期投資： 根據可觀察市場輸入，例如報價、報告的交易、類似發行的報價和基準收益率，評估公允價值。

以下表格列出了按照重複性基礎計量公平價值的金融工具：

二零二四年九月三十日
(千美元)
等級一第二級等級 3總計
固定到期：
美國政府庫$— $764,928 $— $764,928 
美国州、地区和市政区划— 13,467 — 13,467 
非美國主權政府和超國家— 77,176 — 77,176 
企業— 1,133,797 — 1,133,797 
住宅按揭抵押證券-代理— 251,514 — 251,514 
住宅按揭抵押證券-非代理— 5,359 — 5,359 
商業按揭抵押證券-非代理— 33,109 — 33,109 
其他資產抵押證券— 40,834 — 40,834 
固定到期總期— 2,320,184 — 2,320,184 
短期投資— 507,947 — 507,947 
總計$— $2,828,131 $— $2,828,131 

二零三年十二月三十一日
(千美元)
等級一第二級等級 3總計
固定到期：
美國政府庫$— $708,250 $— $708,250 
美国州、地区和市政区划— 4,370 — 4,370 
非美國主權政府和超國家— 56,246 — 56,246 
企業— 863,876 — 863,876 
住宅按揭抵押證券-代理— 168,513 — 168,513 
住宅按揭抵押證券-非代理— 4,984 — 4,984 
商業按揭抵押證券-非代理— 10,423 — 10,423 
其他資產抵押證券— 14,606 — 14,606 
固定到期總期— 1,831,268 — 1,831,268 
短期投資— 428,878 — 428,878 
總計$— $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類B級股C類總計
Balance - June 30, 202330,520,078 42,638,190 30,525,626 103,683,894 
董事獲得的股票獎勵— 20,112 — 20,112 
賬目餘額 - 2023年9月30日30,520,078 42,658,302 30,525,626 103,704,006 

A類B級股C類總計
餘額-2023年12月31日28,644,807 56,036,067 25,544,229 110,225,103 
股份類別轉換(1,700,000)7,340,580 (5,640,580)— 
獎勵分配— 761,261 — 761,261 
行使認股權— 245,779 — 245,779 
董事分享獎項授予— 20,383 — 20,383 
股份回購(9,124,729)(735,075)— (9,859,804)
截至2024年9月30日的結餘17,820,078 63,668,995 19,903,649 101,392,722 

A類B級股C類總計
2022年12月31日的資產負債表30,520,078 42,042,155 30,525,626 103,087,859 
獎勵分成— 735,013 — 735,013 
董事分享獎勵獲得— 44,892 — 44,892 
股份回購— (163,758)— (163,758)
賬目餘額 - 2023年9月30日30,520,078 42,658,302 30,525,626 103,704,006 

2024年5月8日，公司達成協議，以每股$__向外界回購_百萬A類普通股（「股份回購」）。總購買價為$__百萬。公司回購交易後回購的普通股已被取消。 9.1 2024年5月8日，公司達成協議，以每股$__向外界回購_百萬A類普通股（「股份回購」）。總購買價為$__百萬。公司回購交易後回購的普通股已被取消。12.00 2024年5月8日，公司達成協議，以每股$__向外界回購_百萬A類普通股（「股份回購」）。總購買價為$__百萬。公司回購交易後回購的普通股已被取消。109.52024年5月8日，公司達成協議，以每股$__向外界回購_百萬A類普通股（「股份回購」）。總購買價為$__百萬。公司回購交易後回購的普通股已被取消。

2024年8月7日，董事會授權回購公司的普通股，金額合計為$150.0百萬（「授權」），根據該授權，公司可以通過公開市場回購和/或私下協商交易回購股份。該授權將在公司回購已授權股份的全部價值後到期，除非由董事會提前終止。截至2024年9月30日止三個月內， 0.5百萬B類普通股，總成本為$10.0百萬美元，平均價格為每普通股$18.87 股份已被回購並取消，剩餘$140.0百萬可用於授權下的購買。

一般而言，持有A類普通股和B類普通股的股東每持有一股普通股即擁有一票表決權，而C類普通股則沒有表決權，除非法律要求。然而，每位持有A類普通股和B類普通股的股東在表決權（直接、間接或視為為美國聯邦所得稅目的而定）上有限制，限制次數等於所持有的普通股數量。 9.5所有板塊的總投票權中的%（或者，對於我們的B類普通股股東進行類別表決時，例如選出或罷免非由某些股東根據股東協議和我們的章程指派的董事以外的董事，最多為總合投票權的%）。此外，董事會可能限制股東的表決權，當認為有必要避免對公司或任何直接或間接股東或其聯屬公司造成某些重大不利稅務、法律或監管後果時。 14.92董事會可能會限制股東的表決權，以避免對公司或任何直接或間接股東或其聯屬公司造成某些重大不利稅務、法律或監管後果。


31
漢密爾頓保險集團有限公司。
附註：未經查核之縮表合併財務報表注釋。
公司章程規定，任何轉讓（無論是否有價值）從（i）A類普通股到B類普通股和（ii）C類普通股到B類普通股，股份將自動重新指定。當A類成員向公司發出通知指稱某些B類普通股由A類成員或其被允許的受讓人持有，如果經董事會簡單多數批准，則這些B類普通股應自動轉換為相同數量的A類普通股。已發行的B類普通股數量將減少，使轉換為A類普通股的已發行B類普通股之總數，並相應地增加A類普通股的已發行及授權數量。當A類成員和/或B類成員向公司發出通知，經董事會簡單多數批准，不得出於不合理的原因拒絕或遲滯，這些A類普通股和/或B類普通股將被重新指定為C類普通股。在這種情況下，A類普通股和/或B類普通股的授權及已發行數量將減少，使轉換為C類普通股的這些股份之總數，並相應地增加C類普通股的已發行及授權數量。當C類成員向公司發出通知，經董事會簡單多數批准，不得出於不合理的原因拒絕或遲滯，這些C類普通股將被重新指定為B類普通股。在這種情況下，C類普通股的授權及已發行數量將減少，使轉換為B類普通股的這些C類普通股之總數，並相應地增加B類普通股的已發行及授權數量。

於2024年9月13日， 1.7根據A級會員的要求，經董事會批准，將100萬股A級普通股轉換為C級普通股。

截至2024年9月30日止的三個月和九個月內，已分別售出百萬股。 6.8百萬股和 7.3分別有100萬及200萬股C級普通股根據各自C級股東的要求轉換為B級普通股並獲董事會批准。

12. 每股盈利

下表列出基本和稀釋每股普通股收益（損失）的計算，分別如下：

結束於三個月的期間九個月結束了
九月三十日，九月三十日，
（以千美元為單位，每股信息除外）2024202320242023
分子:
凈利潤（淨虧損）歸屬於普通股股東
$78,250 $43,583 $366,509 $131,862 
分母:
$101,934 103,704 106,240 103,711 
稀釋證券的影響4,425 1,720 3,986 1,260 
$106,359 105,424 110,226 104,971 
每股基本盈（虧）利歸屬於
普通股東		$0.77 $0.42 $3.45 $1.27 
每股稀釋盈（虧）利歸屬於
普通股東		$0.74 $0.41 $3.33 $1.26 

在2024年9月30日結束的每個三個月和九個月中，有 無 股票認股權計劃下可供發行的普通股被排除在稀釋每股盈利（虧損）的計算之外，因為假定行使或發行這些股份將對稀釋有抗稀釋效應。

截至2023年9月30日止的每個三個和九個月，都有普通股可供發行的薪酬計劃，該等股份未納入稀釋每股收益（損失）的計算中，因為假定行使或發行該等股份將對股份稀釋產生反效應。 無 普通股可供發行的股份都未納入稀釋每股收益（損失）的計算，因為假定行使或發行這些股份將對稀釋產生反效應。


32
漢密爾頓保險集團有限公司。
附註：未經查核之縮表合併財務報表注釋。
13. 隨後的事件

颶風米爾頓

2024年10月，颶風米爾頓在佛羅里達州西埃斯塔基附近登陸，向東北方向橫跨整個州，進入大西洋。公司估計，颶風米爾頓造成的損失在未經再保險扣除後將在美金範圍內。30$百萬70公司對於颶風米爾頓的損失估計存在較大不確定性，這是由於最近事件發生以及可用資訊的初步性質等因素。將報告此次事件的損失數字將在公司2024年第四季度的財務結果中。




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) 第三方費用收入是根據SEC Regulation S-k第10(e)條規定的非GAAP財務指標。 與其他收入（虧損）進行調解，最相近的GAAP財務指標，同時也包括另外的收入（虧損），不包括截至2024年和2023年9月30日的三個月中每個$10萬或以下的第三方費用收入。更多詳細信息請參考「財務狀況和營運成果管理層討論與分析 - 非GAAP措施」。
(2) 其他承銷費用是SEC《S-K條例》第10(e)項中定義的非GAAP財務指標。對於最相應的GAAP財務指標——一般及行政費用的調解，還包括了2024年第三季度結束時的企業費用1410萬美元，分別是2018年和2019年的1870萬美元。詳情請參閱「管理層討論與財務狀況分析及運作結果——非GAAP指標」。
(3) 承銷收入（損失）是根據SEC S-k條例第10（e）項所定義的非GAAP財務指標。有關詳細信息，請參閱《管理層財務狀況與營運業績討論－非GAAP措施》。
(4) 净投资收益（损失）已扣除投资管理费后呈现。
(5) 詳細內容請參閱《管理層討論及分析—財務狀況和營運成果—綜合營運成果—企業和其他》。

營運亮點

以下重要事項影響了截至2024年9月30日和2023年9月30日結束的三個月內的合併營運結果:

已收取的保險費 截至2024年9月30日止三個月，已收取的保險費分別為55340萬和47410萬美元，較2023年相應增加。已收取的保險費增加主要是由我們的傷亡、特別及財產再保險和財產保險業務所推動。此增加乃是由新業務、現有業務參與度增加以及跨多個業務類別的強勁價格環境所引起的。

承保結果 綜合損益比率分別為2024年9月30日和2023年的93.6%和92.6%。增加主要是由於災害損失比率上升，部分抵消了其他承保費用比率、逐年損失比率和收購成本比率的下降。


40

損失及損失調整費用

截至三個月結束
（以千元為單位）當前
1月		已賺取淨保費的%往年發展已賺取淨保費的%虧損及損失調整費用淨保費收入佔比%
2024年9月30日
因意外事件引起的損失$238,554 53.2 %$(3,209)(0.7)%$235,345 52.5 %
災害性損失51,699 11.5 %(13,412)(3.0)%38,287 8.5 %
總計$290,253 64.7 %$(16,621)(3.7)%$273,632 61.0 %
2023年9月30日
因意外事件引起的損失$184,774 54.8 %$(413)(0.1)%$184,361 54.7 %
災害性損失13,226 3.9 %(6,010)(1.8)%7,216 2.1 %
總計$198,000 58.7 %$(6,423)(1.9)%$191,577 56.8 %

固有損失比率 - 當年 截至2024年9月30日的三個月內，合併比率為53.2％，較2023年9月30日的三個月內的54.8％下降了1.6個百分點。此下降主要是由於2024年9月30日結束的三個月沒有大幅損失，部分抵銷了由於社會通貨膨脹導致某些意外傷亡類別的損失率略微增加。

前一年的損失率 截至2024年9月30日的三個月，我們業績比截至2023年9月30日的三個月好0.7%，自2023年9月30日結束的三個月的0.1%增加了0.6個百分點。2024年9月30日的三個月的故障損失率-前一年，主要受到國際和百慕達業務中財產和特種類別的有利發展的推動，部分抵消了國際和百慕達業務中事故類別的不利發展。此外，依據附註7中討論的損失組合轉移（"LPT"）所保護的事故業務，報告了110萬美元的收益。截至2023年9月30日的三個月的故障損失率-前一年，在國際和百慕達業務中，主要受到特種類別的有利前一年發展的推動。這在各國際和百慕達業務中的事故類別以及百慕達業務中的財產類別中得到部分抵消。 再保險業務， 在2023年9月30日結束的三個月，國際和百慕達業務中的故障損失率-前一年主要受到特種類別的有利前一年發展的推動。這在各國際和百慕達業務中的事故類別以及百慕達業務中的財產類別中得到部分抵消。

災害損失-當年及前年發展 截至2024年9月30日三個月結束時，災害損失為3830萬美元和720萬美元，分別為2024年和2023年。截至2024年9月30日三個月結束時的災害損失由颶風海倫（3390萬美元）、卡爾加里冰雹暴雨（1230萬美元）和颶風黛比（550萬美元）驅動，部分抵消了1340萬美元的有利前年發展。截至2023年9月30日三個月結束時的災害損失主要由夏威夷野火（840萬美元）、颶風伊黛莉亞（660萬美元）、佛蒙特洪水（500萬美元）和某些較小的風暴事件（0.2萬美元）驅動，部分抵消了2023年6月嚴重對流風暴的有利發展（690萬美元）和600萬美元的有利前年發展。


41

投資淨實現及未實現收益（損失）和淨投資收益（損）

結束於三個月的期間
九月三十日，
（以千元為單位）20242023
投資方面的總淨實現及未實現收益（損失）和淨投資收入（損失）- TSHF(1)
$(28,291)$60,404 
投資方面的總淨實現及未實現收益（損失）和淨投資收入（損失）- 其他93,849 (4,992)
$65,558 $55,412 
歸屬非控股權益的淨利潤（損失）- TSHF$(17,215)$9,065 
(1) 在非控股利益表現激勵津貼分派之前

投資實現及未實現收益（虧損）淨總計及投資收入淨額（虧損） - 中華人民共和國，在非控股權益之前，截至二零二四年九月三十日止三個月分別回報了 28.3 百萬美元的虧損和 60.4 百萬美元的收入。這包括基金的回報（扣除投資管理費用）。

基金投資收入，扣除非控制利益 - TSHF截至2024年9月30日和2023年的三個月，賺取1110萬美元虧損和5130萬美元收入。這包括基金的收益，扣除投資管理費用和績效激勵分配。投資經理有資格獲得的總激勵分配包含在我們的基本報表中的“歸屬於非控股利益的淨利潤（虧損）”中。

TS Hamilton基金在截至2024年9月30日和2023年的三個月內，扣除投資管理費用和績效激勵分配後，實現了(0.6)%和3.1%的回報。

截至2024年9月30日的三個月，TSHF的虧損是由Two Sigma Futures Portfolio, LLC (“FTV”)的宏觀經濟交易所引領的。在FTV內，股票、貨幣和固收均遭遇損失。在單一股票交易中，TSHF從Two Sigma Equity Spectrum Portfolio, LLC (“ESTV”)的非美國股票中看到了正面貢獻，部分被Two Sigma Spectrum Portfolio, LLC ("STV")的美國股票的損失抵消。在ESTV內，歐洲、亞洲和泛美洲最先獲利，依次降低。

截至2023年9月30日，TSHF從單支股票交易和宏觀經濟交易中獲得正收益。收益主要來自STV的美國單支股票，其次是FTV的宏觀經濟交易，再者是ESTV的非美國股票。FTV的收益主要來自固收證券和商品，而損失主要來自股票、信貸和貨幣。在ESTV中，東亞和泛美交易獲利，但歐洲和中國並未獲利。

投資項目的總實現及未實現收益（虧損）和淨投資收入（虧損）- 其他分別為2024年9月30日及2023年9月30日三個月結束時的收入回報為$9380萬和$500萬的虧損。2024年9月30日三個月結束時的收入主要來自於具較高收益的資產的投資收入，以及由於美國國庫利率下降而產生的確定市價回報。而2023年9月30日三個月結束時的虧損主要來自於美國國庫利率上升及其他宏觀經濟因素的負面確定市價影響，抵消了投資收益。


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.


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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.


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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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