The divergence between strong operating income (driven by Two Sigma fund returns) and deteriorating underwriting results (combined ratio 97.3%, catastrophe losses) creates a mixed picture. Monitor the Q4 2026 earnings call for commentary on casualty reinsurance pricing trends and the sustainability of Two Sigma fund performance, as well as any further Ukraine conflict reserve development.
Price Chart
Executive Summary
Hamilton Insurance Group reported Q3 2026 operating income of $179.9M ($1.78 per diluted share), well above the $0.91 consensus estimate, driven by strong Two Sigma Hamilton Fund returns and 17.3% gross premium growth. However, GAAP net income fell 40% YoY to $81.5M ($0.81 per share) due to catastrophe losses of $53.9M and a fixed income investment loss of $56.3M, while the combined ratio deteriorated to 97.3% from 87.8% a year ago.
Key Financial Metrics
Key Facts
- Operating income of $179.9M ($1.78 per diluted share) vs consensus EPS of $0.91
- GAAP net income of $81.5M ($0.81 per diluted share) vs $136.2M ($1.32) in Q3 2025, down 40%
- Combined ratio of 97.3% vs 87.8% in Q3 2025, a deterioration of 9.5 points
- Gross premiums written of $819.7M, up 17.3% YoY
- Net premiums earned of $591.3M, up 13.1% YoY
- Underwriting income of $15.5M vs $64.1M in Q3 2025, down 76%
- Catastrophe losses of $53.9M (including $47.1M from Ukraine conflict prior year development)
- Two Sigma Hamilton Fund return of $144.7M (net of non-controlling interest) vs $54.2M in Q3 2025
- Fixed income, short term and cash investment loss of $56.3M vs a gain of $43.4M in Q3 2025
- Book value per share of $29.80, up 4.6% from Dec 31, 2025
- Book value per share plus accumulated dividends of $31.80, up 11.6% from Dec 31, 2025
- Repurchased $3.1M in common shares during Q3 2026
Financial Impact
Operating income of $179.9M ($1.78/diluted share) significantly exceeded the $0.91 consensus EPS estimate, but GAAP net income declined 40% YoY to $81.5M. Underwriting income fell 76% to $15.5M due to a 9.5 point deterioration in the combined ratio to 97.3%.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| International | $309.3M | +22.6% |
| Bermuda | $282.0M | +4.2% |
Risk Factors
- Combined ratio deteriorated 9.5 points YoY to 97.3%, approaching unprofitable territory
- Catastrophe losses of $53.9M, including $47.1M in unfavorable prior year development from Ukraine conflict
- Fixed income portfolio generated a $56.3M loss in the quarter vs a $43.4M gain a year ago
- Underwriting income fell 76% to $15.5M from $64.1M in Q3 2025
- GAAP net income declined 40% YoY to $81.5M
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001593275-26-000119 |
| Document: hg_992finsuppq326.htm | 0001593275-26-000119 |
| Document: hg-20261029.htm | 0001593275-26-000119 |
| Document: hg_993invdeckq326.htm | 0001593275-26-000119 |
| Document: 0001593275-26-000119-index-headers.html | 0001593275-26-000119 |
| Document: 0001593275-26-000119-index.html | 0001593275-26-000119 |
| Document: 0001593275-26-000119.txt | 0001593275-26-000119 |
| 8-K Data (Synthetic) | 0001593275-26-000119 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $35.22 | awaiting T+20 | awaiting T+20 | $35.06 (−0.45%) |
Oct 27, 2026 5d ago | 8-K | $34.68 | awaiting T+20 | awaiting T+20 | $35.06 (+1.10%) |
Sep 14, 2026 6w ago | Insider Cluster | $35.26 $34.92 | ▼ −0.96% | ▼ −3.69% | $35.06 (−0.57%) |
May 20, 2026 23w ago | Insider Cluster | $31.86 $31.69 | ▼ −0.53% | ▼ −0.87% | $35.06 (+10.04%) |
May 19, 2026 23w ago | Insider Cluster | $32.39 $31.38 | ▼ −3.12% | ▼ −3.86% | $35.06 (+8.24%) |
May 15, 2026 24w ago | 144 | $32.15 $31.72 | ▼ −1.34% | ▼ −2.92% | $35.06 (+9.05%) |
May 7, 2026 25w ago | 3 | $30.86 $30.49 | ▼ −1.20% | ▼ −1.22% | $35.06 (+13.61%) |
May 5, 2026 25w ago | Insider Cluster | $30.43 $28.63 | ▼ −5.92% | ▼ −10.87% | $35.06 (+15.22%) |
Mar 24, 2026 31w ago | DEFA14A | $29.06 $32.68 | ▲ +12.46% | ▲ +4.60% | $35.06 (+20.65%) |
Feb 25, 2026 35w ago | 8-K | $29.69 $29.22 | ▼ −1.58% | ▲ +4.82% | $35.06 (+18.09%) |
US Market Status
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