Operating cash flow of $125.3M in Q2 2026 covered capital returns of $22.3M, with an OCF/NI ratio of 0.87, reflecting robust premium collections and disciplined claims management.
Hamilton Insurance Group, Ltd. (HG) cash flow statement — 5-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Nov'21 |
|---|
| Cash from Operations | 815.18M | 842.35M | 759.3M | 283.15M | 190.93M | 226.53M |
| Operating CF Growth % | 233.66% | 10.94% | 168.16% | 48.31% | -15.72% | - |
| Operating CF / Revenue % | 27.26% | 30.71% | 31.92% | 17.5% | 14.83% | 16.95% |
| Net Income | 585.71M | 840.03M | 613.16M | 258.73M | -98M | 249.84M |
| Depreciation & Amortization | 15.67M | 15.93M | 16.47M | 12.41M | 14.99M | 13.9M |
| Stock-Based Compensation | 28.21M | 29.26M | 30.38M | 44.38M | 10.78M | 8.88M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 49.61M | 0 |
| Other Non-Cash Items | -608.63M | -715.78M | -507.58M | -194.58M | 273.93M | -398.71M |
| Working Capital Changes | 517.11M | 672.91M | 606.87M | 162.22M | -60.4M | 352.62M |
| Cash from Investing | -460.02M | -414.09M | -184.16M | -652.09M | 133.1M | 137.82M |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 57.43M |
| Purchase of Investments | -5.85B | -3.59B | -3.76B | -5.3B | -4.79B | -4.56B |
| Sale/Maturity of Investments | 5.54B | 3.13B | 3.19B | 4.67B | 4.86B | 4.66B |
| Other Investing | -156.54M | 40.17M | 391.61M | -17.93M | 67.05M | -15.64M |
| Cash from Financing | -588.22M | -376.17M | -362.69M | 59.02M | -69.62M | -68M |
| Dividends Paid | -199.5M | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -115.93M | -112.54M | -150.35M | -2.44M | -1.52M | -7.38M |
| Stock Issued | 28K | 25K | 396K | 83M | 315K | 1.01M |
| Debt Issuance (Net) | 0 | -311K | 0 | 0 | -345K | 0 |
| Other Financing | -272.82M | -263.34M | -212.73M | -21.55M | -68.07M | -61.63M |
| Net Change in Cash | -242.33M | 71.24M | 199.99M | -306.34M | 243.08M | 294.85M |
| Exchange Rate Effect | -9.28M | 19.14M | -12.46M | 3.57M | -11.34M | -1.51M |
| Cash at Beginning | 955.52M | 1.1B | 900.86M | 1.21B | 964.13M | 660.08M |
| Cash at End | 828.97M | 1.17B | 1.1B | 900.86M | 1.21B | 954.93M |
| Free Cash Flow | 815.18M | 842.35M | 759.3M | 283.15M | 190.93M | 226.53M |
| FCF Growth % | 16.79% | 10.94% | 168.16% | 48.31% | -15.72% | - |
| FCF Margin % | 27.26% | 30.71% | 31.92% | 17.5% | 14.83% | 16.95% |
| FCF per Share | 8.03 | 8.3 | 7.48 | 2.67 | 1.74 | 2.21 |
Quick answers to the most common questions about buying HG stock.
Hamilton Insurance Group, Ltd. (HG) generated $842.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hamilton Insurance Group, Ltd. (HG) generated $842.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Hamilton Insurance Group, Ltd. (HG) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Hamilton Insurance Group, Ltd. (HG) spent $112.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Social inflation in casualty lines
Metrics are mathematically derived from official filings.
Underwriting Cash Generation Remains Strong
Hamilton's operating cash flow averaged $125M per quarter in 2026, with Q2 2026 OCF/NI at 0.87, indicating robust premium collections outpacing claims payments, as per recent financial statements.
The consistent positive operating cash flow, even in quarters with lower net income, suggests that the company's underwriting operations are generating cash efficiently. The Q2 2026 OCF/NI ratio of 0.87, while below the 1.70 in Q4 2025, still reflects strong cash conversion, with claims payments of $361.5M being well covered by premium inflows. This indicates a healthy float generation, which is critical for a reinsurer's investment income.
Claims Payments Reflect Stable Loss Experience
Claims paid in Q2 2026 were $361.5M, up from $324.8M in Q1, but the combined ratio improved to 69.6%, suggesting disciplined underwriting and favorable loss development, based on reported figures.
The increase in claims payments quarter-over-quarter is modest and aligns with the growth in premiums written. The low loss ratio of 42.7% in Q2 2026 indicates that current accident year losses are well controlled. However, the prior statement analysis notes reserve releases contributing to earnings, which may mask underlying loss trends. Investors should monitor whether paid losses trend in line with incurred losses, as any divergence could signal reserve inadequacy.
Investment Portfolio Cash Flows Signal Active Management
In Q2 2026, Hamilton purchased $308.1M in investments and sold $265.2M, resulting in net purchases of $42.9M, reflecting a strategy to maintain liquidity while seeking yield, as disclosed in cash flow statements.
The investment portfolio activity shows a pattern of significant purchases and sales each quarter, with net flows varying. In Q1 2026, net purchases were minimal, while in Q2 2026, net purchases were $42.9M. This suggests active portfolio management, possibly to adjust duration or take advantage of market conditions. With $1.06B in cash and fixed-income, the company appears to be positioning for higher yields in a rising rate environment, which could support future investment income.
Capital Return Modest but Sustainable
Hamilton paid $129K in dividends and repurchased $22.2M of shares in Q2 2026, totaling $22.3M, which is well covered by operating cash flow of $125.3M, according to recent SEC filings.
The capital return program is conservative, with buybacks being the primary vehicle. The total capital returned in Q2 2026 represents only about 18% of operating cash flow, indicating ample coverage. This suggests that the company is retaining capital to support growth and maintain financial flexibility, which is prudent for a specialty reinsurer. The low payout ratio also implies that dividends and buybacks are unlikely to strain liquidity.
Cash Conversion Varies with Reserve Releases
Hamilton's OCF/NI ratio fluctuated from 0.43 in Q1 2025 to 8.38 in Q4 2024, indicating that net income is not always matched by cash generation, as per reported cash flow data.
The wide variation in OCF/NI suggests that non-cash items, such as reserve releases, can significantly impact net income without corresponding cash inflows. For instance, Q4 2024's OCF/NI of 8.38 implies that net income was low relative to cash flow, possibly due to reserve strengthening or other non-cash charges. Conversely, Q1 2025's OCF/NI of 0.43 indicates that net income was high relative to cash flow, likely due to favorable reserve development. This highlights the importance of analyzing cash flow alongside earnings to assess the quality of underwriting results.
Cash Flow Obscures Reserve Adequacy Risks
While operating cash flow appears robust, the reliance on reserve releases to boost earnings may obscure underlying reserve adequacy, especially given social inflation pressures in casualty lines, as per industry analysis.
The cash flow statement does not directly reveal the adequacy of loss reserves. The prior income statement analysis noted that reserve releases contributed to strong combined ratios, but this could be a sign that initial reserves were redundant. However, if social inflation leads to higher-than-expected claims severity, future cash outflows for claims could exceed current estimates, potentially straining liquidity. Investors should monitor the development of prior-year reserves and the ratio of paid to incurred losses to assess this risk.