Hamilton Insurance Group, the Bermuda-based specialty insurer and reinsurer, posted net income of US$577 million for 2025, a 44% increase over the prior year, as reinsurance growth and disciplined underwriting helped the company weather one of the costliest catastrophe years on record.
Gross premiums written rose 20.7% to US$2.9 billion for the full year, with the Bermuda segment contributing US$292 million of that growth and the international segment adding US$208.6 million.
Net premiums earned climbed 21.6% to US$2.1 billion, while return on average equity came in at 22%.
The growth rate significantly outpaced that of AXIS Capital, a close Bermuda-headquartered peer. AXIS reported full-year gross premiums written of US$9.6 billion, up 7%, with a combined ratio of 89.8% and an 18% operating return on equity, its fourth-quarter earnings release showed.
Hamilton Insurance, though roughly a third of AXIS's size, delivered higher returns and faster premium expansion.
Hamilton's year unfolded in distinct phases. The first quarter was heavily affected by California wildfire losses of US$142.8 million, pushing the combined ratio to 111.6% and limiting net income to US$81 million, company filings showed.
A sharp rebound followed in the second quarter, with net income of US$187.4 million and a combined ratio of 86.8%. The third quarter continued that momentum, with net income of US$136.2 million and zero catastrophe losses.
The fourth quarter produced the highest net income of the year at US$172.2 million, though the attritional loss ratio rose 5.3 points to 56.5%, reflecting increased large losses and a shift toward casualty reinsurance.
Full-year catastrophe losses totaled US$159 million, dominated by the California wildfires. Net favorable prior year reserve development of US$46.4 million partially offset unfavorable development in certain casualty classes.
Pina Albo (pictured above), chief executive of Hamilton, said the results reflected the organization the company had built. Book value per share rose 24% in the year and has grown 64% since the 2023 listing, she noted.
"Gross premiums written grew 21% to US$2.9 billion, our combined ratio was 92.9%, and book value per share increased 24%," Albo said, adding that the company had entered a transitioning reinsurance market from a position of strength.
AXIS Capital's management flagged a more cautious stance, warning that its reinsurance premiums could decline by up to double digits in 2026 if pricing failed to meet adequacy thresholds, its earnings call transcript showed.
Hamilton's board declared a special dividend of US$2.00 per common share on February 18, totaling approximately US$206 million and payable March 30 to shareholders of record March 6.
