Hamilton will use IPO proceeds on property cat and quota share business for 1.1: CEO Albo
Hamilton Insurance Group CEO Pina Albo said the company will lean into the reinsurance market with its IPO proceeds starting with January 1 renewals, predominantly in the property catastrophe and quota share business.
The company raised net proceeds of $80.6mn from its public offering last month, which priced its stock at $15 per share.
On a call with analysts, Albo noted that the Bermudian has expanded its reinsurance business over the past 12 months and will continue to do so, especially in the property cat space where market terms and conditions remain favorable.
In other lines of reinsurance, Albo noted the company is also growing its casualty and specialty books.
Some of the larger players who were heavily involved in the US casualty reinsurance space have pulled back, she said, after seeing developments from years 2019 and prior. Hamilton, on the other hand, was not very involved in the market during those years.
“As they pull back, it’s an opportune time for us to show up and provide solutions for those clients,” Albo said, adding the same applies for the specialty reinsurance business, where several players have pulled back in different classes after the Ukraine war losses.
The commentary follows Hamilton’s Q3 earnings release, which was its first set of results disclosed as a public company.
It reported a combined ratio of 92.6%, down 29.9 points year-on-year, for the quarter. In particular, the company’s Bermuda segment, which offers reinsurance to global clients, reported a 59.8-point decline on its Q3 combined ratio, bringing it to 86.9%.
Comparing results to last year, CFO Craig Howie noted that 2022 results were heavily impacted by the Ukraine conflict and Hurricane Ian, whereas this year’s underwriting performance was driven by stable investment income and low catastrophe losses.
Year-to-date, Hamilton’s business mix stands at 55% insurance and 45% reinsurance. By line of business, the company’s portfolio comprises of 42% casualty, 31% specialty and 27% property.
“Hamilton is now at the size, and importantly has the line of business diversification to effectively adapt to the market and manage the underwriting cycles as they arise,” Albo said.