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Segment Reporting | 9 Months Ended
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Sep. 30, 2024
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting The Company has determined its reportable business segments based on the information used by management in assessing performance and allocating resources to underwriting operations and has identified two reportable business segments - International and Bermuda. Each of the Company's identified reportable segments has a Chief Executive Officer who is responsible for the overall profitability of their segment and who regularly reports and is directly accountable to the chief operating decision maker: the Chief Executive Officer of the consolidated group. The Company evaluates the performance of reportable segments based on their respective underwriting income or loss. Underwriting income or loss is calculated as net premiums earned less losses and loss adjustment expenses, acquisition costs, and other underwriting expenses, net of third party fee income. General and administrative expenses not incurred by the reportable segments are included in corporate and other expenses as part of the reconciliation of net underwriting income or loss to net income or loss attributable to common shareholders. As the Company does not manage its assets by reportable segment, investment income and assets are not allocated to reportable segments. The Company's core business is underwriting and its underwriting results are reflected in its reportable segments: (1) International, which is comprised of property, casualty and specialty insurance and reinsurance classes of business originating from the Company’s London, Dublin, and Hamilton Select operations; and (2) Bermuda, which is comprised of property, casualty and specialty insurance and reinsurance classes of business originating from Hamilton Re, Bermuda and Hamilton Re US and subsidiaries. The Company considers many factors, including the nature of each segment’s products, client types, production sources, distribution methods and the regulatory environment, in determining the aggregated operating segments. Corporate includes net realized and unrealized gains (losses) on investments, net investment income (loss), other income (loss) not incurred by the reportable segments, net foreign exchange gains (losses), general and administrative expenses not incurred by the reportable segments, amortization of intangible assets, interest expense, and income tax expense (benefit).
($ in thousands) |  |  |  |  |  |  |
Three Months Ended September 30, 2024 | International |  | Bermuda |  | Corporate |  | Total
Gross premiums written | $ | 325,525 |  |  | $ | 227,876 |  |  | $ | — |  |  | $ | 553,401 |
Net premiums written | $ | 268,106 |  |  | $ | 209,790 |  |  | $ | — |  |  | $ | 477,896 |
Net premiums earned | $ | 225,244 |  |  | $ | 223,551 |  |  | $ | — |  |  | $ | 448,795 |
Third party fee income | 4,170 |  |  | 294 |  |  | — |  |  | 4,464 |
Losses and loss adjustment expenses | 130,135 |  |  | 143,497 |  |  | — |  |  | 273,632 |
Acquisition costs | 59,713 |  |  | 42,488 |  |  | — |  |  | 102,201 |
Other underwriting expenses | 34,143 |  |  | 14,189 |  |  | — |  |  | 48,332 |
Underwriting income (loss) | $ | 5,423 |  |  | $ | 23,671 |  |  | $ | — |  |  | $ | 29,094 |
Net realized and unrealized gains (losses) on investments |  |  |  |  | 48,228 |  |  | 48,228 |
Net investment income (loss) |  |  |  |  | 17,330 |  |  | 17,330 |
Net foreign exchange gains (losses) |  |  |  |  | (5,973) |  |  | (5,973) |
Corporate expenses |  |  |  |  | (14,060) |  |  | (14,060) |
Amortization of intangible assets |  |  |  |  | (5,204) |  |  | (5,204) |
Interest expense |  |  |  |  | (5,351) |  |  | (5,351) |
Income (loss) before income tax |  |  |  |  |  |  | 64,064 |
Income tax (expense) benefit |  |  |  |  | (3,029) |  |  | (3,029) |
Net income (loss) |  |  |  |  |  |  | 61,035 |
Net income (loss) attributable to non-controlling interest |  |  |  |  | (17,215) |  |  | (17,215) |
Net income (loss) attributable to common shareholders |  |  |  |  |  |  | $ | 78,250 |
Key Ratios |  |  |  |  |  |  |
Attritional loss ratio - current year | 55.3 | % |  | 51.0 | % |  |  |  | 53.2 | %
Attritional loss ratio - prior year development | (1.5) | % |  | 0.0 | % |  |  |  | (0.7) | %
Catastrophe loss ratio - current year | 6.4 | % |  | 16.7 | % |  |  |  | 11.5 | %
Catastrophe loss ratio - prior year development | (2.4) | % |  | (3.5) | % |  |  |  | (3.0) | %
Loss and loss adjustment expense ratio | 57.8 | % |  | 64.2 | % |  |  |  | 61.0 | %
Acquisition cost ratio | 26.5 | % |  | 19.0 | % |  |  |  | 22.8 | %
Other underwriting expense ratio | 13.3 | % |  | 6.2 | % |  |  |  | 9.8 | %
Combined ratio | 97.6 | % |  | 89.4 | % |  |  |  | 93.6 | %
($ in thousands) |  |  |  |  |  |  |
Three Months Ended September 30, 2023 | International |  | Bermuda |  | Corporate |  | Total
Gross premiums written | $ | 307,140 |  |  | $ | 166,983 |  |  | $ | — |  |  | $ | 474,123 |
Net premiums written | $ | 234,621 |  |  | $ | 148,945 |  |  | $ | — |  |  | $ | 383,566 |
Net premiums earned | $ | 178,632 |  |  | $ | 158,404 |  |  | $ | — |  |  | $ | 337,036 |
Third party fee income | 2,115 |  |  | 186 |  |  | — |  |  | 2,301 |
Losses and loss adjustment expenses | 97,820 |  |  | 93,757 |  |  | — |  |  | 191,577 |
Acquisition costs | 47,236 |  |  | 31,301 |  |  | — |  |  | 78,537 |
Other underwriting expenses | 31,634 |  |  | 12,723 |  |  | — |  |  | 44,357 |
Underwriting income (loss) | $ | 4,057 |  |  | $ | 20,809 |  |  | $ | — |  |  | $ | 24,866 |
Net realized and unrealized gains (losses) on investments |  |  |  |  | 47,343 |  |  | 47,343 |
Net investment income (loss) |  |  |  |  | 8,069 |  |  | 8,069 |
Other income (loss), excluding third party fee income |  |  |  |  | 85 |  |  | 85 |
Net foreign exchange gains (losses) |  |  |  |  | 1,432 |  |  | 1,432 |
Corporate expenses |  |  |  |  | (18,678) |  |  | (18,678) |
Amortization of intangible assets |  |  |  |  | (2,794) |  |  | (2,794) |
Interest expense |  |  |  |  | (5,288) |  |  | (5,288) |
Income (loss) before income tax |  |  |  |  |  |  | 55,035 |
Income tax (expense) benefit |  |  |  |  | (2,387) |  |  | (2,387) |
Net income (loss) |  |  |  |  |  |  | 52,648 |
Net income (loss) attributable to non-controlling interest |  |  |  |  | 9,065 |  |  | 9,065 |
Net income (loss) attributable to common shareholders |  |  |  |  |  |  | $ | 43,583 |
Key Ratios |  |  |  |  |  |  |
Attritional loss ratio - current year | 54.6 | % |  | 55.1 | % |  |  |  | 54.8 | %
Attritional loss ratio - prior year development | (5.3) | % |  | 5.7 | % |  |  |  | (0.1) | %
Catastrophe loss ratio - current year | 5.1 | % |  | 2.6 | % |  |  |  | 3.9 | %
Catastrophe loss ratio - prior year development | 0.4 | % |  | (4.2) | % |  |  |  | (1.8) | %
Loss and loss adjustment expense ratio | 54.8 | % |  | 59.2 | % |  |  |  | 56.8 | %
Acquisition cost ratio | 26.4 | % |  | 19.8 | % |  |  |  | 23.3 | %
Other underwriting expense ratio | 16.5 | % |  | 7.9 | % |  |  |  | 12.5 | %
Combined ratio | 97.7 | % |  | 86.9 | % |  |  |  | 92.6 | %
($ in thousands) |  |  |  |  |  |  |
Nine Months Ended September 30, 2024 | International |  | Bermuda |  | Corporate |  | Total
Gross premiums written | $ | 957,981 |  |  | $ | 920,664 |  |  | $ | — |  |  | $ | 1,878,645 |
Net premiums written | $ | 687,444 |  |  | $ | 780,399 |  |  | $ | — |  |  | $ | 1,467,843 |
Net premiums earned | $ | 637,700 |  |  | $ | 615,162 |  |  | $ | — |  |  | $ | 1,252,862 |
Third party fee income | 11,557 |  |  | 6,377 |  |  | — |  |  | 17,934 |
Losses and loss adjustment expenses | 359,181 |  |  | 361,297 |  |  | — |  |  | 720,478 |
Acquisition costs | 160,589 |  |  | 122,470 |  |  | — |  |  | 283,059 |
Other underwriting expenses | 99,317 |  |  | 41,022 |  |  | — |  |  | 140,339 |
Underwriting income (loss) | $ | 30,170 |  |  | $ | 96,750 |  |  | $ | — |  |  | $ | 126,920 |
Net realized and unrealized gains (losses) on investments |  |  |  |  | 454,851 |  |  | 454,851 |
Net investment income (loss) |  |  |  |  | 43,667 |  |  | 43,667 |
Net foreign exchange gains (losses) |  |  |  |  | (9,883) |  |  | (9,883) |
Corporate expenses |  |  |  |  | (41,825) |  |  | (41,825) |
Amortization of intangible assets |  |  |  |  | (11,773) |  |  | (11,773) |
Interest expense |  |  |  |  | (17,090) |  |  | (17,090) |
Income (loss) before income tax |  |  |  |  |  |  | 544,867 |
Income tax (expense) benefit |  |  |  |  | (6,118) |  |  | (6,118) |
Net income (loss) |  |  |  |  |  |  | 538,749 |
Net income (loss) attributable to non-controlling interest |  |  |  |  | 172,240 |  |  | 172,240 |
Net income (loss) attributable to common shareholders |  |  |  |  |  |  | $ | 366,509 |
Key Ratios |  |  |  |  |  |  |
Attritional loss ratio - current year | 54.6 | % |  | 53.1 | % |  |  |  | 53.9 | %
Attritional loss ratio - prior year development | 0.3 | % |  | 0.8 | % |  |  |  | 0.6 | %
Catastrophe loss ratio - current year | 2.2 | % |  | 6.1 | % |  |  |  | 4.1 | %
Catastrophe loss ratio - prior year development | (0.8) | % |  | (1.3) | % |  |  |  | (1.1) | %
Loss and loss adjustment expense ratio | 56.3 | % |  | 58.7 | % |  |  |  | 57.5 | %
Acquisition cost ratio | 25.2 | % |  | 19.9 | % |  |  |  | 22.6 | %
Other underwriting expense ratio | 13.8 | % |  | 5.6 | % |  |  |  | 9.8 | %
Combined ratio | 95.3 | % |  | 84.2 | % |  |  |  | 89.9 | %
($ in thousands) |  |  |  |  |  |  |
Nine Months Ended September 30, 2023 | International |  | Bermuda |  | Corporate |  | Total
Gross premiums written | $ | 832,049 |  |  | $ | 685,198 |  |  | $ | — |  |  | $ | 1,517,247 |
Net premiums written | $ | 553,687 |  |  | $ | 563,085 |  |  | $ | — |  |  | $ | 1,116,772 |
Net premiums earned | $ | 504,784 |  |  | $ | 447,614 |  |  | $ | — |  |  | $ | 952,398 |
Third party fee income | 7,417 |  |  | 336 |  |  | — |  |  | 7,753 |
Losses and loss adjustment expenses | 255,787 |  |  | 263,767 |  |  | — |  |  | 519,554 |
Acquisition costs | 131,688 |  |  | 88,844 |  |  | — |  |  | 220,532 |
Other underwriting expenses | 89,635 |  |  | 36,607 |  |  | — |  |  | 126,242 |
Underwriting income (loss) | $ | 35,091 |  |  | $ | 58,732 |  |  | $ | — |  |  | $ | 93,823 |
Net realized and unrealized gains (losses) on investments |  |  |  |  | 101,881 |  |  | 101,881 |
Net investment income (loss) |  |  |  |  | 17,719 |  |  | 17,719 |
Other income (loss), excluding third party fee income |  |  |  |  | 85 |  |  | 85 |
Net foreign exchange gains (losses) |  |  |  |  | (3,953) |  |  | (3,953) |
Corporate expenses |  |  |  |  | (31,833) |  |  | (31,833) |
Amortization of intangible assets |  |  |  |  | (7,869) |  |  | (7,869) |
Interest expense |  |  |  |  | (16,007) |  |  | (16,007) |
Income (loss) before income tax |  |  |  |  |  |  | 153,846 |
Income tax (expense) benefit |  |  |  |  | (6,908) |  |  | (6,908) |
Net income (loss) |  |  |  |  |  |  | 146,938 |
Net income (loss) attributable to non-controlling interest |  |  |  |  | 15,076 |  |  | 15,076 |
Net income (loss) attributable to common shareholders |  |  |  |  |  |  | $ | 131,862 |
Key Ratios |  |  |  |  |  |  |
Attritional loss ratio - current year | 52.6 | % |  | 50.8 | % |  |  |  | 51.8 | %
Attritional loss ratio - prior year development | (4.3) | % |  | 4.0 | % |  |  |  | (0.4) | %
Catastrophe loss ratio - current year | 2.2 | % |  | 5.4 | % |  |  |  | 3.7 | %
Catastrophe loss ratio - prior year development | 0.2 | % |  | (1.3) | % |  |  |  | (0.5) | %
Loss and loss adjustment expense ratio | 50.7 | % |  | 58.9 | % |  |  |  | 54.6 | %
Acquisition cost ratio | 26.1 | % |  | 19.8 | % |  |  |  | 23.2 | %
Other underwriting expense ratio | 16.3 | % |  | 8.1 | % |  |  |  | 12.4 | %
Combined ratio | 93.1 | % |  | 86.8 | % |  |  |  | 90.2 | %
The following table presents gross premiums written by the geographical location of the Company's subsidiaries:
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
($ in thousands) | 2024 |  | 2023 |  | 2024 |  | 2023
International |  |  |  |  |  |  |
Lloyd's of London | $ | 192,380 |  |  | $ | 189,155 |  |  | $ | 590,339 |  |  | $ | 507,326 |
Ireland | 99,650 |  |  | 96,272 |  |  | 283,776 |  |  | 271,002 |
U.S. | 33,495 |  |  | 21,713 |  |  | 83,866 |  |  | 53,721 |
Total International | 325,525 |  |  | 307,140 |  |  | 957,981 |  |  | 832,049 |
Bermuda | 227,876 |  |  | 166,983 |  |  | 920,664 |  |  | 685,198 |
Total | $ | 553,401 |  |  | $ | 474,123 |  |  | $ | 1,878,645 |  |  | $ | 1,517,247 |

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- Definition The entire disclosure for reporting segments including data and tables. 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