Oct 30, 2026 earnings call — Strong quarter despite geopolitical catastrophe losses
Hamilton reported net income of $81 million and operating income of $180 million for the quarter.
Revenue $0.8B (est $0.7B) · EPS $1.78 (est $0.91)
Key quotes
"First and foremost, we will continue to prioritize underwriting profitability over top line growth even if this means walking away from business."
"This was largely due to catastrophe losses, specifically 8.0 prior year loss ratio points from the Ukraine conflict and 1.1 current year loss ratio points from the Middle East conflict."
"Hamilton Select also continued to invest in proprietary technology, wholesale distribution relationships and underwriting talent."
Analyst Q&A 7
Buybacks and underlying loss ratio
Q (Elyse Greenspan · Wells Fargo): She asked about buyback activity in the quarter and whether buybacks resumed in October, and whether Q3 slowdown was due to wind season or blackouts. She also asked about large losses in Bermuda, any Middle East marine premium effects, and if a mid-50s underlying loss ratio still applies.
A: Management said they bought back $3 million in the quarter and another $2 million after quarter end, and have repurchased about $45 million year-to-date while paying a $200 million dividend in Q1; they said they can do buybacks and special dividends and were cautious during wind season. On losses, they said the Ras Laffan event was $17 million to the group, $13 million in Bermuda (about 4.5 points), and removing it puts Bermuda back to a 56% attritional loss ratio. They also said Middle East-related lines have seen rate uplift but were not the majority of growth this quarter.
"Yes, we bought back $3 million in the quarter." — Craig Howie (CFO)
Acquisition costs and E&S competition
Q (Michael Zaremski · BMO): He asked whether acquisition expense ratio should continue to trend as business mix changes and whether there is any change to the group's underlying loss ratio guidance. He also asked about competition in the smaller E&S space and casualty loss cost trend.
A: Management said there is no change to prior guidance: 55% group, 54.5% international, and 56% Bermuda. They said acquisition expense moves with business mix and noted $30 million of favorable specialty reserve development and resulting profit commissions. On E&S, they said the space is attractive but Hamilton Select has a well-understood value proposition with rising submission intake; on casualty they separate insurance and reinsurance — they are selective on insurance lines (stopped medical professional in Select) and will grow casualty reinsurance only in a measured, targeted way.
"To be clear, yes, no change in the guidance that we had originally given earlier this year." — Craig Howie (CFO)
Cat ratio and Two Sigma fund access
Q (Thomas Mcjoynt-Griffith · KBW): He asked how the mix shift affects the property catastrophe ratio for next year and whether the outsized returns in the Two Sigma Hamilton Fund can be withdrawn for shareholder returns or other uses.
A: They said property catastrophe business continues but is less pronounced and they plan a cat loss ratio of roughly 6% to 7% for the year. On the Two Sigma fund, they said they have an investment management agreement that allows them to take funds out if they want or need to, and noted the fund returned 6.1% in the quarter and 16.3% year-to-date.
"But essentially, we have a cat loss ratio of roughly 6% to 7% in our plan for the year." — Craig Howie (CFO)
AI for brokers, asset duration, Ukraine exposure
Q (Matthew Heimermann · Citi): He asked how technology and AI change what wholesale brokers want and how Hamilton Select compares. He also asked about any ceiling on asset duration and what would trigger increases, and whether there are limits still exposed from Ukraine aviation.
A: Management said wholesale brokers value ease of doing business and responsiveness; Hamilton Select uses in-house AI-assisted intake and a smart queue plus digital connectivity to speed responses and brokers are pleased. On duration, they said the goal is matching asset and liability durations; asset duration has ticked up to 3.8 years and is slightly below liability duration, and they will monitor liabilities and reserves to set duration (portfolio YTM 5.6%, new money over 5%). On Ukraine aviation, they reviewed all exposures and said aviation reinsurance and retro carry the most uncertainty and longest reporting lag, and they set management's best estimate given available information.
"So I would say it's really more about matching the asset and the liability durations." — Craig Howie (CFO)
Business mix shift and duration effects
Q (Jian Huang · Morgan Stanley): He asked if there is a sustained shift to casualty and specialty away from property and whether that will change thinking on asset/liability duration and overall returns. He also asked for the share count of the buyback.
A: Management confirmed there is a shift: more specialty and casualty and less property in Bermuda and internationally, and that liability duration will change over time; asset duration moved from about 3.1/3.2 years to about 3.8 years. They agreed that investing in higher-duration assets while writing where returns are best is a reasonable way to think about offsetting higher loss ratios. They said the $3 million buyback was about 70,000 shares.
"I think that is a good way to look at this because we are writing where we get the best risk-adjusted returns on the business, and that's where we want to allocate our capital." — Craig Howie (CFO)
1/1 renewal outlook and growth plans
Q (Taylor Scott · Barclays): He asked what gives the company optimism that 1/1 renewals could be a little better than 2026 and how much they can deploy and grow in the coming period.
A: Management said they expect some pricing pressure but not as severe as past renewals because the traditional market has been disciplined and terms, conditions, and attachment points should remain largely intact; they will focus on key clients, casualty with strong retention, and selected specialty classes. They said they still expect low double-digit premium growth for the full year but emphasized capital allocation for best risk-adjusted, bottom-line profit rather than chasing top-line growth; pockets of targeted growth include reinsurance key client shares, new specialty lines, and Hamilton Select expansion aided by technology.
"We still expect to have low double-digit growth in premium for the full year." — Craig Howie (CFO)
Ukraine aviation: lag versus new information
Q (Matthew Carletti · Citizens Bank): He asked whether the quarter's charge was driven by reporting lag in reinsurance/retro or by new information such as court actions, and for any color on claim development.
A: Management said a high court ruling clarified liability would be on war risk policies, and they had seen few reported claims until recently. They noted they write aviation reinsurance and retro so information is reported with a lag and further constrained by confidentiality, and that at the beginning of the year over 70% of their original loss estimate was IBNR; the specialty reserve deep dive required taking additional information and extrapolating it across the portfolio.
"Essentially, at the beginning of this year, we still had over 70% of our original loss estimate as IBNR." — Craig Howie (CFO)