Underwriting profitability remains resilient with a 70.9% combined ratio in 2026Q1, despite top-line revenue growth contracting by 3.5% during the same period.
| Revenue | 2.9B | 2.74B | 2.38B | 1.62B | 1.29B | 1.34B |
| Revenue Growth % | 42.73% | 15.29% | 47.03% | 25.67% | -3.64% | - |
| Medical Costs & Claims | 1.46B | 1.26B | 1.45B | 1.07B | 1.08B | 919.7M |
| Medical Cost Ratio % | 50.51% | 45.89% | 60.87% | 66.18% | 84.2% | 68.83% |
| Gross Profit | 1.43B | 1.48B | 930.82M | 547.29M | 203.51M | 416.49M |
| Gross Margin % | 49.49% | 54.11% | 39.13% | 33.82% | 15.8% | 31.17% |
| Gross Profit Growth % | - | 59.45% | 70.08% | 168.93% | -51.14% | - |
| Operating Expenses | 574.79M | 659.32M | 309.26M | 292.07M | 230.34M | 154.29M |
| OpEx / Revenue % | 19.83% | 24.04% | 13% | 18.05% | 17.89% | 11.55% |
| Depreciation & Amortization | 15.97M | 15.93M | 16.47M | 12.41M | 14.99M | 13.9M |
| Combined Ratio % | 70.34% | 69.92% | 73.87% | 84.23% | 102.08% | 80.38% |
| Operating Income | 859.79M | 824.9M | 621.56M | 255.22M | -26.83M | 262.2M |
| Operating Margin % | 29.66% | 30.08% | 26.13% | 15.77% | -2.08% | 19.62% |
| Operating Income Growth % | - | 32.72% | 143.54% | 1051.22% | -110.23% | - |
| EBITDA | 875.76M | 840.84M | 638.03M | 267.63M | -11.84M | 276.1M |
| EBITDA Margin % | 30.21% | 30.66% | 26.82% | 16.54% | -0.92% | 20.66% |
| Interest Expense | 19.36M | 20.19M | 22.62M | 21.43M | 15.74M | 14.9M |
| Non-Operating Income | -19.36M | -20.19M | -22.62M | -21.43M | -15.74M | -14.9M |
| Pretax Income | 859.79M | 824.9M | 621.56M | 255.22M | -26.83M | 262.2M |
| Pretax Margin % | 29.66% | 30.08% | 26.13% | 15.77% | -2.08% | 19.62% |
| Income Tax | -16.01M | -15.12M | 8.4M | -25.07M | 3.1M | 12.37M |
| Effective Tax Rate % | -1.86% | -1.83% | 1.35% | -9.82% | -11.57% | 4.72% |
| Net Income | 629.34M | 576.67M | 400.43M | 258.73M | -98M | 188.18M |
| Net Margin % | 21.71% | 21.03% | 16.83% | 15.99% | -7.61% | 14.08% |
| Net Income Growth % | 94.16% | 44.01% | 54.77% | 364.01% | -152.08% | - |
| EPS (Diluted) | 6.20 | 5.68 | 3.67 | 2.44 | -0.89 | -4.20 |
| EPS Growth % | 98.38% | 54.77% | 50.41% | 374.16% | 78.81% | - |
| EPS (Basic) | - | 5.68 | 3.81 | 2.47 | -0.89 | -4.20 |
| Diluted Shares Outstanding | 101.47M | 101.47M | 101.47M | 106.04M | 109.99M | 102.56M |
Casualty reserve development volatility
As reported in recent financial statements, Hamilton Insurance Group experienced significant top-line fluctuations, with revenue growth swinging from a 100.3% surge in 2024Q1 to a 3.5% contraction by 2026Q1, highlighting the inherent cyclicality and transactional nature of its specialty reinsurance and insurance underwriting platforms.
The dramatic variance in quarterly revenue growth suggests that the company's premium volume remains highly sensitive to the timing of large treaty renewals and market-wide pricing shifts. Investors should monitor whether this volatility reflects a strategic pivot toward more selective underwriting or an inability to maintain consistent market share in a competitive specialty landscape.
Based on the company's reported figures, Hamilton Insurance Group has maintained a disciplined combined ratio, which reached a low of 58.6% in 2024Q1 and remained well below the 100% threshold, indicating that the firm is successfully generating consistent underwriting profit despite periodic spikes in catastrophe-related loss ratios.
The ability to keep the combined ratio consistently below 80% in most periods suggests that the company's data-driven underwriting approach is effectively pricing risk. However, the jump to 103.1% in 2024Q3 serves as a reminder that even sophisticated models remain vulnerable to outsized loss events that can temporarily erode underwriting margins.
According to historical data, the transition to public markets in 2023 appears to have coincided with a period of intense volatility, as evidenced by the 2024Q1 EPS growth of 193.6% followed by a 72.2% decline in 2024Q4, reflecting the challenges of scaling a specialty book under public scrutiny.
This inflection point suggests that the company is still calibrating its growth strategy to meet the expectations of public market investors while managing the inherent lumpiness of its reinsurance book. Analysts should investigate whether the recent stabilization in 2026Q1 earnings indicates a more mature, predictable operating model or merely a temporary lull in large-scale loss activity.
As indicated by the quarterly loss ratio data, which peaked at 70.0% in 2024Q4, the company's reliance on specialty lines may expose it to significant tail risks, particularly if social inflation continues to drive up the severity of claims in the US casualty and liability markets.
While current underwriting margins appear strong, the potential for adverse reserve development in long-tail casualty lines remains a significant analytical concern. Investors should monitor whether the company's current loss reserves are sufficient to cover potential litigation-driven settlements that could emerge as these policies season over the coming years.
Quick answers to the most common questions about buying HG stock.
For fiscal year 2025, Hamilton Insurance Group, Ltd. (HG) reported total revenue of $2.74B. This represents a 105.3% increase compared to $1.34B in 2021.
Hamilton Insurance Group, Ltd. (HG) is profitable, generating $576.7M in net income for the fiscal year ending 2025 with a net profit margin of 21.0%.
Hamilton Insurance Group, Ltd. (HG) reported an operating income of $824.9M, resulting in an operating profit margin of 30.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Hamilton Insurance Group, Ltd. (HG) generated $1.48B in gross profit for the year, representing a gross profit margin of 54.1%. This demonstrates the company's core pricing power and production efficiency.