Hamilton Insurance Group is redirecting capital toward casualty reinsurance and sidecar structures, with a planned $300 million deployment over several years, in line with pricing trends in property lines.
According to The Royal Gazette, the first-quarter disclosures from Hamilton Insurance Group show a change in where premium growth is originating. The company’s Bermuda platform recorded a 5% increase in gross premiums, driven mainly by casualty reinsurance, while property business was broadly flat when adjusted for prior-year catastrophe impacts.
At the group level, gross premiums written reached $940.1 million, up 11.5% year over year, while net premiums earned rose 14.3% to $570.5 million. Net income totaled $133.5 million, with operating income of $166.7 million and an annualized operating return on average equity of 24%. The combined ratio improved to 89.8% from 111.6% in the prior-year period, with no catastrophe losses recorded in the quarter compared with $150.5 million a year earlier.
The underwriting profile changed during the period, with increased casualty and specialty exposure contributing to a higher attritional loss ratio, while catastrophe loss activity declined.
The company recently introduced a casualty-focused reinsurance sidecar expected to deploy about $300 million of capacity across multiple years.
“This structure allows Hamilton to support targeted casualty reinsurance growth while providing us with an additional source of fee income,” said Pina Albo (pictured), group chief executive.
Property catastrophe reinsurance conditions have shifted after several years of rate increases. Available capital and relatively mild catastrophe losses have placed pressure on pricing. In North America, property catastrophe reinsurance rates declined 20% year over year on April 1.
On the company’s earnings call, Albo said: “While pricing levels deteriorated, they were still risk adequate and structures, terms and conditions remained largely intact.”
The company reduced participation in areas where returns did not meet internal thresholds and applied greater selectivity across lines. Albo said the company is “disciplined in binding only those risks that met our underwriting and pricing requirements” and is “being more selective in many lines”.
Other reinsurers have reported similar underwriting adjustments. RenaissanceRe said it has reduced exposure in areas where pricing is under pressure while maintaining terms and conditions. The company also reported higher-than-expected demand for reinsurance protection ahead of mid-year renewals, including increased demand from core personal lines clients.
Industry discussion at ABIR Risk Forum 2026 pointed to the role of globally mobile capital in supporting capacity and claims-paying ability, particularly in the US market. Bermuda-based reinsurers account for a significant share of certified and reciprocal reinsurers operating within US regulatory frameworks, supporting cross-border risk transfer.
Market participants are assessing alternative capital structures beyond catastrophe bonds. Gallagher Re said that while cat bonds remain the dominant format within insurance-linked securities, investor interest is extending to sidecars and similar vehicles.
“Significant numbers of investors are now exploring vehicles such as reinsurance and insurance sidecars,” the broker said in a recent statement. It added that these structures are “of growing interest to cedants as an alternative route to reinsuring casualty lines … in contrast to bond markets that remain largely focused on property catastrophe risk.”
From an investment standpoint, Gallagher Re said sidecars are less liquid than catastrophe bonds but may attract investors seeking a “complexity premium”.
Bermuda’s reinsurance market is moving toward casualty lines and alternative capital structures, while property catastrophe pricing enters a softer phase.
