Daniel Cohen

Daniel Cohen sought more details on Hamilton's reserve movements, specifically the years and classes contributing to property and specialty favorability, and any changes in casualty reserves or loss trends. He also asked about the characteristics differentiating Hamilton's preferred casualty reinsurance clients and the company's approach to embedding conservative margins. Additionally, he inquired about the future trajectory of corporate expenses following the expiration of Value Appreciation Pool expenses.

Answer

Craig Howie, Group Chief Financial Officer, reported overall favorable reserve development, primarily from property and specialty classes (mostly property) from reserves matured over two years, with casualty reserves remaining flat. He noted that Hamilton consistently remains above the midpoint of external actuarial estimates. Pina Albo, Group Chief Executive Officer, explained that Hamilton targets casualty reinsurance clients known for robust data and strong in-house claims handling, fostering resilient relationships. Craig Howie confirmed the Value Appreciation Pool expired in November 2025, and corporate expenses are expected to tick down, guided to be between $45 million and $59 million for 2026.

Daniel Cohen asked for more color on Hamilton's reserve development, specifically the years and classes contributing to property and specialty favorability in the quarter, and any movement or loss trend changes in casualty reserves. He also inquired about what differentiates Hamilton's preferred casualty reinsurance clients, specifically those with good data and in-house claims handling, and whether Hamilton embeds its own conservative margin on top of cedents' picks. Finally, he sought clarification on the corporate expense line, specifically if it is expected to continue decreasing in 2026 following the expiration of the Value Appreciation Pool (VAP) expenses and the tailwind from the Bermuda tax credit.

Answer

Craig Howie (CFO and Chief Investment Officer, Hamilton Insurance Group) stated that overall reserves were favorable, with no movement in casualty (flat for the quarter), and favorability mostly from property and specialty, particularly property reserves matured over two years. Pina Albo (CEO, Hamilton Insurance Group) explained that preferred clients provide robust data on limits management, pricing, and trends, coupled with strong in-house claims handling. Mr. Howie confirmed that the VAP expired in November 2025, and corporate expenses are expected to be in the range of $45-$50 million for 2026, indicating a decrease.