Middle East conflict losses pushed Hamilton Insurance Group's combined ratio to 95.0% in the second quarter ending in June 30, an 8.2-point deterioration from 86.8% a year earlier. Gross premiums written rose 16.7% to US$831 million, with growth concentrated in casualty and specialty lines across both operating segments.
The deterioration in underwriting performance was driven by catastrophe losses of US$49.9 million net of reinsurance. The Middle East conflict accounted for US$45.7 million of that total, with the catastrophe loss ratio rising from 1.9% in Q2 2025 to 7.8%. For specialty reinsurers, Hamilton's quarterly figure sits within a wider market loss story: Howden Re estimated that insured losses from the conflict across the political violence and terrorism market could exceed US$3 billion, with capacity tightening at the July 1 renewal.
Net premiums earned rose 14.6% to US$586 million, while underwriting income fell to US$29.1 million from US$67.5 million in Q2 2025. Net investment income of US$141.3 million supported net income of US$143.8 million for the quarter. That investment total comprised US$115.5 million from the Two Sigma Hamilton Fund and US$25.8 million from fixed income and cash.
Both operating segments reported a business mix shift toward casualty reinsurance. At the consolidated level, the attritional loss ratio (current year) rose to 53.3%, up 0.3 points year on year.
The Bermuda segment recorded a current-year attritional loss ratio of 55.7%, up 1.5 points, attributed to higher casualty reinsurance volume. The segment also posted US$13 million of net unfavourable attritional prior-year reserve development, driven by casualty classes and partly offset by property.
On a year-to-date basis, the Bermuda segment's unfavourable prior-year development widened to US$23 million. Hamilton cited additional loss information from the Baltimore Bridge collapse alongside adverse casualty movements. The total insured loss from the March 2024 collision has risen to US$2.8 billion, an 87% increase from the US$1.5 billion working assumption that shaped pricing at the January 2026 renewals, with most of the additional development expected to fall on reinsurers and retrocessionaires.
Property reinsurance within the Bermuda segment also contracted in the period. Gross premiums written grew only 11.9%, against 21.8% in the international segment. Hamilton attributed the slower pace to lower reinstatement premiums and rate pressure in property lines.
Hamilton's international segment, which operates through the London-based Hamilton Global Specialty platform, grew gross premiums written by 21.8% to US$420.1 million. The growth was driven by casualty and specialty insurance, with net premiums written rising 25.1% to US$322.8 million.
The segment's combined ratio was 97.0%, against 89.3% in Q2 2025. Catastrophe losses of US$33.6 million from the Middle East conflict accounted for 11.1 points of the cat loss ratio, against 0.6 points a year earlier.
CEO Pina Albo noted the quarter required "strong broker and client relationships and disciplined underwriting." The board separately announced an extension of her employment agreement through December 31, 2029.
Hamilton's consolidated combined ratio improved to 92.5% in the first half, from 99.1% for the same period in 2025. The improvement was driven by lower catastrophe activity in the first quarter, which contrasted with elevated losses in H1 2025, including the Los Angeles wildfires.
Gross premiums written for the first half reached US$1.8 billion, up 13.9%. Year-to-date underwriting income of US$86.7 million compared with US$9.2 million in H1 2025, though the comparison reflects the heavy catastrophe load in the prior-year period. The Bermuda segment's H1 combined ratio of 87.4% represented a 16.2-point improvement from 103.6%.
Net income for the first half was US$277.3 million against US$268.3 million in H1 2025, supported by net investment income of US$234.9 million. Total cash and invested assets stood at US$6.1 billion as of June 30, up from US$5.9 billion at year-end 2025.
