Hamilton Insurance Group, Ltd. (NYSE: HG; "Hamilton" or "The Company") today announced financial results for the fourth quarter ended December 31, 2023.
Consolidated Highlights ? Fourth Quarter
Consolidated Highlights ? Full Year
Commenting on the financial results, Pina Albo, CEO of Hamilton, said:
"2023 was a year that truly exemplified the transformation of Hamilton's business. Our talented team demonstrated our ability to deliver strong results and grow at the right time and in the right lines, all while strengthening our relationships with brokers and clients."
|
For the Three Months Ended |
||||||||||
($ in thousands, except for per share amounts and percentages) |
December 31,
|
|
December 31,
|
|
Change |
||||||
Gross premiums written |
$ |
433,791 |
|
|
$ |
341,252 |
|
|
$ |
92,539 |
|
Net premiums written |
|
363,666 |
|
|
|
283,376 |
|
|
|
80,290 |
|
Net premiums earned |
|
366,135 |
|
|
|
312,247 |
|
|
|
53,888 |
|
Underwriting income (loss) |
$ |
36,028 |
|
|
$ |
38,605 |
|
|
$ |
(2,577 |
) |
Combined ratio |
|
90.2 |
% |
|
|
87.6 |
% |
|
|
2.6 |
% |
|
|
|
|
|
|
||||||
Net income (loss) attributable to common shareholders |
$ |
126,865 |
|
|
$ |
(59,017 |
) |
|
$ |
185,882 |
|
Income (loss) per share attributable to common shareholders - diluted |
$ |
1.15 |
|
|
$ |
(0.57 |
) |
|
|
||
Book value per common share |
$ |
18.58 |
|
|
$ |
16.14 |
|
|
|
||
Change in book value per share |
|
7.1 |
% |
|
|
(3.4 |
%) |
|
|
||
|
|
|
|
|
|
||||||
Return on average common equity - annualized |
|
26.4 |
% |
|
|
(13.9 |
%) |
|
|
|
For the Three Months Ended |
|||||||
Key Ratios |
December 31,
|
|
December 31,
|
|
Change |
|||
Attritional loss ratio - current year |
53.2 |
% |
|
57.8 |
% |
|
(4.6 |
%) |
Attritional loss ratio - prior year |
(1.7 |
%) |
|
(4.7 |
%) |
|
3.0 |
% |
Catastrophe loss ratio - current year |
1.9 |
% |
|
(0.7 |
%) |
|
2.6 |
% |
Catastrophe loss ratio - prior year |
(0.1 |
%) |
|
(0.8 |
%) |
|
0.7 |
% |
Loss and loss adjustment expense ratio |
53.3 |
% |
|
51.6 |
% |
|
1.7 |
% |
Acquisition cost ratio |
24.2 |
% |
|
24.5 |
% |
|
(0.3 |
%) |
Other underwriting expense ratio |
12.7 |
% |
|
11.5 |
% |
|
1.2 |
% |
Combined ratio |
90.2 |
% |
|
87.6 |
% |
|
2.6 |
% |
|
For the Years Ended |
||||||||||
($ in thousands, except for per share amounts and percentages) |
December 31,
|
|
December 31,
|
|
Change |
||||||
Gross premiums written |
$ |
1,951,038 |
|
|
$ |
1,646,673 |
|
|
$ |
304,365 |
|
Net premiums written |
|
1,480,438 |
|
|
|
1,221,864 |
|
|
|
258,574 |
|
Net premiums earned |
|
1,318,533 |
|
|
|
1,143,714 |
|
|
|
174,819 |
|
Underwriting income (loss) |
$ |
129,851 |
|
|
$ |
(31,717 |
) |
|
$ |
161,568 |
|
Combined ratio |
|
90.1 |
% |
|
|
102.8 |
% |
|
|
(12.7 |
%) |
|
|
|
|
|
|
||||||
Net income (loss) attributable to common shareholders |
$ |
258,727 |
|
|
$ |
(97,999 |
) |
|
$ |
356,726 |
|
Income (loss) per share attributable to common shareholders - diluted |
$ |
2.44 |
|
|
$ |
(0.95 |
) |
|
|
||
Book value per common share |
$ |
18.58 |
|
|
$ |
16.14 |
|
|
|
||
Change in book value per share |
|
15.1 |
% |
|
|
(5.6 |
%) |
|
|
||
|
|
|
|
|
|
||||||
Return on average common equity |
|
13.9 |
% |
|
|
(5.7 |
%) |
|
|
|
For the Years Ended |
|||||||
Key Ratios |
December 31,
|
|
December 31,
|
|
Change |
|||
Attritional loss ratio - current year |
52.2 |
% |
|
51.8 |
% |
|
0.4 |
% |
Attritional loss ratio - prior year |
(0.8 |
%) |
|
(0.3 |
%) |
|
(0.5 |
%) |
Catastrophe loss ratio - current year |
3.2 |
% |
|
16.3 |
% |
|
(13.1 |
%) |
Catastrophe loss ratio - prior year |
(0.4 |
%) |
|
(1.5 |
%) |
|
1.1 |
% |
Loss and loss adjustment expense ratio |
54.2 |
% |
|
66.3 |
% |
|
(12.1 |
%) |
Acquisition cost ratio |
23.4 |
% |
|
23.7 |
% |
|
(0.3 |
%) |
Other underwriting expense ratio |
12.5 |
% |
|
12.8 |
% |
|
(0.3 |
%) |
Combined ratio |
90.1 |
% |
|
102.8 |
% |
|
(12.7 |
%) |
Segment Underwriting Results ? Fourth Quarter
International Segment |
For the Three Months Ended |
||||||||||
($ in thousands, except for percentages) |
December 31,
|
|
December 31,
|
|
Change |
||||||
Gross premiums written |
$ |
273,472 |
|
|
$ |
234,273 |
|
|
$ |
39,199 |
|
Net premiums written |
|
216,712 |
|
|
|
189,195 |
|
|
|
27,517 |
|
Net premiums earned |
|
198,725 |
|
|
|
172,846 |
|
|
|
25,879 |
|
Underwriting income (loss) |
$ |
1,867 |
|
|
$ |
15,650 |
|
|
$ |
(13,783 |
) |
|
|
|
|
|
|
||||||
Key ratios |
|
|
|
|
|
||||||
Attritional loss ratio - current year |
|
54.5 |
% |
|
|
60.0 |
% |
|
|
(5.5 |
%) |
Attritional loss ratio - prior year |
|
(1.4 |
%) |
|
|
(8.1 |
%) |
|
|
6.7 |
% |
Catastrophe loss ratio - current year |
|
0.0 |
% |
|
|
(1.2 |
%) |
|
|
1.2 |
% |
Catastrophe loss ratio - prior year |
|
0.4 |
% |
|
|
(1.2 |
%) |
|
|
1.6 |
% |
Loss and loss adjustment expense ratio |
|
53.5 |
% |
|
|
49.5 |
% |
|
|
4.0 |
% |
Acquisition cost ratio |
|
27.7 |
% |
|
|
27.8 |
% |
|
|
(0.1 |
%) |
Other underwriting expense ratio |
|
17.9 |
% |
|
|
13.6 |
% |
|
|
4.3 |
% |
Combined ratio |
|
99.1 |
% |
|
|
90.9 |
% |
|
|
8.2 |
% |
Bermuda Segment |
For the Three Months Ended |
||||||||||
($ in thousands, except for percentages) |
December 31,
|
|
December 31,
|
|
Change |
||||||
Gross premiums written |
$ |
160,319 |
|
|
$ |
106,979 |
|
|
$ |
53,340 |
|
Net premiums written |
|
146,954 |
|
|
|
94,181 |
|
|
|
52,773 |
|
Net premiums earned |
|
167,410 |
|
|
|
139,401 |
|
|
|
28,009 |
|
Underwriting income (loss) |
$ |
34,161 |
|
|
$ |
22,955 |
|
|
$ |
11,206 |
|
|
|
|
|
|
|
||||||
Key ratios |
|
|
|
|
|
||||||
Attritional loss ratio - current year |
|
51.8 |
% |
|
|
55.1 |
% |
|
|
(3.3 |
%) |
Attritional loss ratio - prior year |
|
(2.2 |
%) |
|
|
(0.5 |
%) |
|
|
(1.7 |
%) |
Catastrophe loss ratio - current year |
|
4.1 |
% |
|
|
0.0 |
% |
|
|
4.1 |
% |
Catastrophe loss ratio - prior year |
|
(0.7 |
%) |
|
|
(0.3 |
%) |
|
|
(0.4 |
%) |
Loss and loss adjustment expense ratio |
|
53.0 |
% |
|
|
54.3 |
% |
|
|
(1.3 |
%) |
Acquisition cost ratio |
|
20.1 |
% |
|
|
20.4 |
% |
|
|
(0.3 |
%) |
Other underwriting expense ratio |
|
6.5 |
% |
|
|
8.9 |
% |
|
|
(2.4 |
%) |
Combined ratio |
|
79.6 |
% |
|
|
83.6 |
% |
|
|
(4.0 |
%) |
Segment Underwriting Results ? Full Year
International Segment |
For the Years Ended |
||||||||||
($ in thousands, except for percentages) |
December 31,
|
|
December 31,
|
|
Change |
||||||
Gross premiums written |
$ |
1,105,522 |
|
|
$ |
933,241 |
|
|
$ |
172,281 |
|
Net premiums written |
|
770,399 |
|
|
|
635,773 |
|
|
|
134,626 |
|
Net premiums earned |
|
703,508 |
|
|
|
623,047 |
|
|
|
80,461 |
|
Underwriting income (loss) |
$ |
36,956 |
|
|
$ |
20,183 |
|
|
$ |
16,773 |
|
|
|
|
|
|
|
||||||
Key ratios |
|
|
|
|
|
||||||
Attritional loss ratio - current year |
|
53.2 |
% |
|
|
50.9 |
% |
|
|
2.3 |
% |
Attritional loss ratio - prior year |
|
(3.5 |
%) |
|
|
(4.8 |
%) |
|
|
1.3 |
% |
Catastrophe loss ratio - current year |
|
1.5 |
% |
|
|
7.2 |
% |
|
|
(5.7 |
%) |
Catastrophe loss ratio - prior year |
|
0.3 |
% |
|
|
0.5 |
% |
|
|
(0.2 |
%) |
Loss and loss adjustment expense ratio |
|
51.5 |
% |
|
|
53.8 |
% |
|
|
(2.3 |
%) |
Acquisition cost ratio |
|
26.5 |
% |
|
|
27.4 |
% |
|
|
(0.9 |
%) |
Other underwriting expense ratio |
|
16.7 |
% |
|
|
15.5 |
% |
|
|
1.2 |
% |
Combined ratio |
|
94.7 |
% |
|
|
96.7 |
% |
|
|
(2.0 |
%) |
Bermuda Segment |
For the Years Ended |
||||||||||
($ in thousands, except for percentages) |
December 31,
|
|
December 31,
|
|
Change |
||||||
Gross premiums written |
$ |
845,516 |
|
|
$ |
713,432 |
|
|
$ |
132,084 |
|
Net premiums written |
|
710,039 |
|
|
|
586,091 |
|
|
|
123,948 |
|
Net premiums earned |
|
615,025 |
|
|
|
520,667 |
|
|
|
94,358 |
|
Underwriting income (loss) |
$ |
92,895 |
|
|
$ |
(51,900 |
) |
|
$ |
144,795 |
|
|
|
|
|
|
|
||||||
Key ratios |
|
|
|
|
|
||||||
Attritional loss ratio - current year |
|
51.1 |
% |
|
|
52.9 |
% |
|
|
(1.8 |
%) |
Attritional loss ratio - prior year |
|
2.3 |
% |
|
|
5.1 |
% |
|
|
(2.8 |
%) |
Catastrophe loss ratio - current year |
|
5.1 |
% |
|
|
27.1 |
% |
|
|
(22.0 |
%) |
Catastrophe loss ratio - prior year |
|
(1.2 |
%) |
|
|
(3.9 |
%) |
|
|
2.7 |
% |
Loss and loss adjustment expense ratio |
|
57.3 |
% |
|
|
81.2 |
% |
|
|
(23.9 |
%) |
Acquisition cost ratio |
|
19.9 |
% |
|
|
19.3 |
% |
|
|
0.6 |
% |
Other underwriting expense ratio |
|
7.7 |
% |
|
|
9.4 |
% |
|
|
(1.7 |
%) |
Combined ratio |
|
84.9 |
% |
|
|
109.9 |
% |
|
|
(25.0 |
%) |
Investments and Shareholders' Equity as of December 31, 2023
Conference Call Details and Additional Information
Conference Call Information
Hamilton will host a conference call to discuss its financial results on Thursday, March 7, 2024, at 10:00 a.m. ET. The conference call can be accessed by dialing 1-855-761-5600 (US toll free), or 1-646-307-1097, and entering the conference ID 6439207.
A live, audio webcast of the conference call will also be available through the Investors portal of the Company's website at investors.hamiltongroup.com.
A replay of the audio conference call will be available at investors.hamiltongroup.com or by dialing 1-800-770-2030 (U.S. toll free) and entering the conference ID 6439207.
Additional Information
In addition to the information provided in the Company's earnings release, we have also made available supplementary financial information and an investor presentation which may be referred to during the conference call and will be available on the Company's website at investors.hamiltongroup.com.
About Hamilton Insurance Group, Ltd.
Hamilton is a Bermuda-headquartered company that underwrites specialty insurance and reinsurance risks on a global basis through its wholly owned subsidiaries. Its three underwriting platforms: Hamilton Global Specialty, Hamilton Re and Hamilton Select, each with dedicated and experienced leadership, provide us with access to diversified and profitable markets around the world.
For more information about Hamilton Insurance Group, visit our website at www.hamiltongroup.com or on LinkedIn at Hamilton.
Consolidated Balance Sheet
($ in thousands) |
December 31,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Fixed maturity investments, at fair value (amortized cost 2023: $1,867,499; 2022: $1,348,684) |
$ |
1,831,268 |
|
|
$ |
1,259,476 |
|
Short-term investments, at fair value (amortized cost 2023: $427,437; 2022: $285,130) |
|
428,878 |
|
|
|
286,111 |
|
Investments in Two Sigma Funds, at fair value (cost 2023: $770,191; 2022: $731,100) |
|
851,470 |
|
|
|
740,736 |
|
Total investments |
|
3,111,616 |
|
|
|
2,286,323 |
|
Cash and cash equivalents |
|
794,509 |
|
|
|
1,076,420 |
|
Restricted cash and cash equivalents |
|
106,351 |
|
|
|
130,783 |
|
Premiums receivable |
|
658,363 |
|
|
|
522,670 |
|
Paid losses recoverable |
|
145,202 |
|
|
|
90,655 |
|
Deferred acquisition costs |
|
156,895 |
|
|
|
115,147 |
|
Unpaid losses and loss adjustment expenses recoverable |
|
1,161,077 |
|
|
|
1,177,863 |
|
Receivables for investments sold |
|
42,419 |
|
|
|
371 |
|
Prepaid reinsurance |
|
194,306 |
|
|
|
164,313 |
|
Intangible assets |
|
90,996 |
|
|
|
86,958 |
|
Other assets |
|
209,621 |
|
|
|
167,462 |
|
Total assets |
$ |
6,671,355 |
|
|
$ |
5,818,965 |
|
|
|
|
|
||||
Liabilities, non-controlling interest, and shareholders' equity |
|
|
|
||||
Liabilities |
|
|
|
||||
Reserve for losses and loss adjustment expenses |
$ |
3,030,037 |
|
|
$ |
2,856,275 |
|
Unearned premiums |
|
911,222 |
|
|
|
718,188 |
|
Reinsurance balances payable |
|
272,310 |
|
|
|
244,320 |
|
Payables for investments purchased |
|
66,606 |
|
|
|
48,095 |
|
Term loan, net of issuance costs |
|
149,830 |
|
|
|
149,715 |
|
Accounts payable and accrued expenses |
|
186,887 |
|
|
|
138,050 |
|
Payables to related parties |
|
6,480 |
|
|
|
20 |
|
Total liabilities |
|
4,623,372 |
|
|
|
4,154,663 |
|
|
|
|
|
||||
Non-controlling interest ? TS Hamilton Fund |
|
133 |
|
|
|
119 |
|
|
|
|
|
||||
Shareholders' equity |
|
|
|
||||
Common shares: |
|
|
|
||||
Class A, authorized (2023: 28,644,807 and 2022: 53,993,690), par value $0.01; issued and outstanding (2023: 28,644,807 and 2022: 30,520,078) |
|
286 |
|
|
|
305 |
|
Class B, authorized (2023: 72,337,352 and 2022: 50,480,684), par value $0.01; issued and outstanding (2023: 56,036,067 and 2022: 42,042,155) |
|
560 |
|
|
|
420 |
|
Class C, authorized (2023: 25,544,229 and 2022: 30,525,626), par value $0.01; issued and outstanding (2023: 25,544,229 and 2022: 30,525,626) |
|
255 |
|
|
|
305 |
|
Additional paid-in capital |
|
1,249,817 |
|
|
|
1,120,242 |
|
Accumulated other comprehensive loss |
|
(4,441 |
) |
|
|
(4,441 |
) |
Retained earnings |
|
801,373 |
|
|
|
547,352 |
|
Total shareholders' equity |
|
2,047,850 |
|
|
|
1,664,183 |
|
|
|
|
|
||||
Total liabilities, non-controlling interest, and shareholders' equity |
$ |
6,671,355 |
|
|
$ |
5,818,965 |
|
Consolidated Statement of Operations
|
Three Months Ended
|
|
Years Ended
|
||||||||||||
($ in thousands, except per share information) |
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
Gross premiums written |
$ |
433,791 |
|
|
$ |
341,252 |
|
|
$ |
1,951,038 |
|
|
$ |
1,646,673 |
|
Reinsurance premiums ceded |
|
(70,125 |
) |
|
|
(57,876 |
) |
|
|
(470,600 |
) |
|
|
(424,809 |
) |
Net premiums written |
|
363,666 |
|
|
|
283,376 |
|
|
|
1,480,438 |
|
|
|
1,221,864 |
|
|
|
|
|
|
|
|
|
||||||||
Net change in unearned premiums |
|
2,469 |
|
|
|
28,871 |
|
|
|
(161,905 |
) |
|
|
(78,150 |
) |
Net premiums earned |
|
366,135 |
|
|
|
312,247 |
|
|
|
1,318,533 |
|
|
|
1,143,714 |
|
|
|
|
|
|
|
|
|
||||||||
Net realized and unrealized gains (losses) on investments |
|
107,517 |
|
|
|
(60,280 |
) |
|
|
209,399 |
|
|
|
86,357 |
|
Net investment income (loss) |
|
12,737 |
|
|
|
695 |
|
|
|
30,456 |
|
|
|
(21,487 |
) |
Total net realized and unrealized gains (losses) on investments and net investment income (loss) |
|
120,254 |
|
|
|
(59,585 |
) |
|
|
239,855 |
|
|
|
64,870 |
|
|
|
|
|
|
|
|
|
||||||||
Net gain on sale of equity method investment |
|
211 |
|
|
|
6,991 |
|
|
|
211 |
|
|
|
6,991 |
|
Other income (loss) |
|
10,792 |
|
|
|
2,199 |
|
|
|
18,631 |
|
|
|
11,316 |
|
Net foreign exchange gains (losses) |
|
(2,230 |
) |
|
|
(9,245 |
) |
|
|
(6,185 |
) |
|
|
6,137 |
|
Total revenues |
|
495,162 |
|
|
|
252,607 |
|
|
|
1,571,045 |
|
|
|
1,233,028 |
|
|
|
|
|
|
|
|
|
||||||||
Expenses |
|
|
|
|
|
|
|
||||||||
Losses and loss adjustment expenses |
|
195,049 |
|
|
|
161,318 |
|
|
|
714,603 |
|
|
|
758,333 |
|
Acquisition costs |
|
88,615 |
|
|
|
76,394 |
|
|
|
309,148 |
|
|
|
271,189 |
|
General and administrative expenses |
|
101,781 |
|
|
|
42,392 |
|
|
|
259,856 |
|
|
|
177,682 |
|
Impairment of goodwill |
|
? |
|
|
|
24,082 |
|
|
|
? |
|
|
|
24,082 |
|
Amortization of intangible assets |
|
2,914 |
|
|
|
2,957 |
|
|
|
10,783 |
|
|
|
12,832 |
|
Interest expense |
|
5,428 |
|
|
|
4,485 |
|
|
|
21,434 |
|
|
|
15,741 |
|
Total expenses |
|
393,787 |
|
|
|
311,628 |
|
|
|
1,315,824 |
|
|
|
1,259,859 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income tax |
|
101,375 |
|
|
|
(59,021 |
) |
|
|
255,221 |
|
|
|
(26,831 |
) |
Income tax expense (benefit) |
|
(31,974 |
) |
|
|
1 |
|
|
|
(25,066 |
) |
|
|
3,104 |
|
Net income (loss) |
|
133,349 |
|
|
|
(59,022 |
) |
|
|
280,287 |
|
|
|
(29,935 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to non-controlling interest |
|
6,484 |
|
|
|
(5 |
) |
|
|
21,560 |
|
|
|
68,064 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) and other comprehensive income (loss) attributable to common shareholders |
$ |
126,865 |
|
|
$ |
(59,017 |
) |
|
$ |
258,727 |
|
|
$ |
(97,999 |
) |
|
|
|
|
|
|
|
|
||||||||
Per share data |
|
|
|
|
|
|
|
||||||||
Basic income (loss) per share attributable to common shareholders |
$ |
1.18 |
|
|
$ |
(0.57 |
) |
|
$ |
2.47 |
|
|
$ |
(0.95 |
) |
Diluted income (loss) per share attributable to common shareholders |
$ |
1.15 |
|
|
$ |
(0.57 |
) |
|
$ |
2.44 |
|
|
$ |
(0.95 |
) |
Non-GAAP Financial Measures Reconciliation
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 press release, 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 following table reconciles underwriting income (loss) to net income (loss), the most comparable GAAP financial measure:
|
For the Three Months Ended |
|
For the Years Ended |
||||||||||||
($ in thousands) |
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||
Underwriting income (loss) |
$ |
36,028 |
|
|
$ |
38,605 |
|
|
$ |
129,851 |
|
|
$ |
(31,717 |
) |
Total net realized and unrealized gains (losses) on investments and net investment income (loss) |
|
120,254 |
|
|
|
(59,585 |
) |
|
|
239,855 |
|
|
|
64,870 |
|
Net gain on sale of equity method investment |
|
211 |
|
|
|
6,991 |
|
|
|
211 |
|
|
|
6,991 |
|
Other income (loss), excluding third party fee income |
|
312 |
|
|
|
(55 |
) |
|
|
397 |
|
|
|
(315 |
) |
Net foreign exchange gains (losses) |
|
(2,230 |
) |
|
|
(9,245 |
) |
|
|
(6,185 |
) |
|
|
6,137 |
|
Corporate expenses |
|
(44,858 |
) |
|
|
(4,208 |
) |
|
|
(76,691 |
) |
|
|
(20,142 |
) |
Impairment of goodwill |
|
? |
|
|
|
(24,082 |
) |
|
|
? |
|
|
|
(24,082 |
) |
Amortization of intangible assets |
|
(2,914 |
) |
|
|
(2,957 |
) |
|
|
(10,783 |
) |
|
|
(12,832 |
) |
Interest expense |
|
(5,428 |
) |
|
|
(4,485 |
) |
|
|
(21,434 |
) |
|
|
(15,741 |
) |
Income tax (expense) benefit |
|
31,974 |
|
|
|
(1 |
) |
|
|
25,066 |
|
|
|
(3,104 |
) |
Net income (loss), prior to non-controlling interest |
$ |
133,349 |
|
|
$ |
(59,022 |
) |
|
$ |
280,287 |
|
|
$ |
(29,935 |
) |
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 following table reconciles third party fee income to other income, the most comparable GAAP financial measure:
|
For the Three Months Ended |
|
For the Years Ended |
||||||||||
($ in thousands) |
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||
Third party fee income |
$ |
10,480 |
|
$ |
2,254 |
|
|
$ |
18,234 |
|
$ |
11,631 |
|
Other income (loss), excluding third party fee income |
|
312 |
|
|
(55 |
) |
|
|
397 |
|
|
(315 |
) |
Other income (loss) |
$ |
10,792 |
|
$ |
2,199 |
|
|
$ |
18,631 |
|
$ |
11,316 |
|
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 10, Segment Reporting in the consolidated financial statements, 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 following table reconciles other underwriting expenses to general and administrative expenses, the most comparable GAAP financial measure:
|
For the Three Months Ended |
|
For the Years Ended |
||||||||
($ in thousands) |
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||
Other underwriting expenses |
$ |
56,923 |
|
$ |
38,184 |
|
$ |
183,165 |
|
$ |
157,540 |
Corporate expenses |
|
44,858 |
|
|
4,208 |
|
|
76,691 |
|
|
20,142 |
General and administrative expenses |
$ |
101,781 |
|
$ |
42,392 |
|
$ |
259,856 |
|
$ |
177,682 |
Special Note Regarding Forward-Looking Statements
This information may contain forward-looking statements which reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on management's current expectations and beliefs concerning future developments and their potential effects upon Hamilton. There can be no assurance that future developments affecting Hamilton will be those anticipated by management. Forward-looking statements include, without limitation, all matters that are not historical facts. These forward-looking statements are not a guarantee of future performance and involve risk and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including the following:
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