Latest news with #underwriting
Globe and Mail
2 days ago
- Business
- Globe and Mail
HCI Group (HCI) Q2 EPS Jumps 22%
HCI Group (NYSE:HCI), a property and casualty insurance company with a heavy focus on the Florida market, reported earnings for the second quarter of 2025 on August 7, 2025. In the latest Q2 2025 results, HCI Group beat expectations on both headline earnings (GAAP EPS of $5.18 vs. estimate of $4.52) and revenue (GAAP revenue of $302.6 million vs. estimate of $218.98 million). EPS (GAAP) reached $5.18, compared to the analyst estimate of $4.52. Gross premiums earned (GAAP) were $302.6 million, up from $263.6 million in Q2 2024. These results highlight substantial improvement in underwriting profitability and operational performance. The company also reaffirmed the pending separation of its technology affiliate Exio and maintained its quarterly dividend. Overall, the period reflects strong growth, margin expansion, and continued strategic progress. Source: Analyst estimates for the quarter provided by FactSet. About the Business and Recent Focus Areas HCI Group operates as a diversified insurance and technology business, with most revenue coming from property insurance policies in Florida and other states. Its portfolio spans homeowners, condominium, and specialty insurance, plus a growing footprint in technology and select real estate investments. The company has a strong focus on underwriting discipline and the use of its proprietary claims processing and risk assessment technology. Recently, the company has prioritized growing its technology division (Exio), strengthening risk management, and expanding its core insurance segments. Key success factors include effective catastrophe risk management, regulatory compliance, and leveraging technology for underwriting and operational efficiencies. Strategic expansion has included launching new products and entering fresh geographic markets. Quarter Review: Financial and Operational Performance Pre-tax income (GAAP) increased to $94.4 million, up from $76.0 million in Q2 2024, while net income after noncontrolling interests rose to $66.2 million from $54.1 million in Q2 2024. Book value per share reached $58.55 at June 30, 2025, up from $42.72 at June 30, 2024. This growth in equity reflects both earnings retention and the benefit of lower-than-average catastrophe claims experience. Core insurance operations showed premium growth and improved profitability. Total gross written premiums reached $356.5 million, up from $306.9 million in Q2 2024. Major contributors included Homeowners Choice at $227.1 million (from $191.8 million) in gross written premiums. and TypTap Insurance, HCI's technology-driven homeowners insurance product, which grew to $110.4 million (from $79.1 million) in gross written premiums. Tailrow Reciprocal Exchange, a new home insurance entity launched in February 2025, contributed $5.2 million in gross written premiums as it began its rollout. The gross loss ratio improved to 21.3%, down from 29.7% in Q2 2024. The gross loss ratio measures insurance losses and claims expenses as a percentage of premiums earned; a lower figure suggests higher underwriting profitability. Management credited the improvement to lower claims and litigation frequency. However, they cautioned that gross loss ratios could move back up to the 24–25% range if claim volumes normalize. Across segments, TypTap and Tailrow helped drive premium and revenue growth. Premiums ceded to reinsurance rose, reflecting both higher overall premium volume and continued risk mitigation for hurricane exposures. Policy acquisition and underwriting expenses increased in line with growth, reaching $30.6 million (from $23.5 million), while general and administrative expenses (GAAP) were $20.0 million (from $17.5 million in Q2 2024). There was no adverse development in insurance reserves, and ongoing compliance reviews by regulators, including a financial examination by the Florida Department of Financial Services, were noted. The quarter also saw a substantial reduction in long-term debt as the company converted its 4.75% convertible notes, strengthening the balance sheet by reducing leverage and improving capital flexibility. A major strategic initiative in the quarter was progress on the planned separation of Exio, the technology division. Exio is a software platform used to enhance efficiency in HCI's underwriting functions, and it operates a transaction-based revenue model. Exio's reported stand-alone revenue in Q1 2025 was $52 million, with $24 million in pre-tax income. The spin-off, which is targeted for completion by year end, is expected to unlock new opportunities for Exio to partner with third-party insurance carriers outside the HCI umbrella. The quarterly dividend was maintained at $0.40 per share, unchanged from the same period last year. Looking Ahead Management did not provide detailed numerical guidance for the remainder of fiscal 2025. Leadership commented that the company expects to continue making progress on its key initiatives, especially the Exio spin-off, which is on track for late in the year and seen as a way to support further capital growth and technological expansion. In the near term, investors should watch for developments related to the Exio spin-off and further expansion of TypTap and Tailrow. Catastrophe loss experience and reinsurance costs will also affect results, particularly as hurricane season progresses. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,046%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025
Yahoo
2 days ago
- Business
- Yahoo
Amphitrite Underwriting buys back minority shareholding from Arch Group
Amphitrite Underwriting, the marine insurance specialist, has attained complete autonomy by repurchasing a minority stake previously held by Arch Group. The establishment of Amphitrite in 2018 was initially supported by seed investment and capacity backing from Arch. Arch will retain its role as a key capacity provider and continue to lead Amphitrite's Marine Hull portfolio. Amphitrite Underwriting CEO Konstantinos Tampakakis said: "This is a significant milestone in our ongoing journey of transformative growth. Full independence will accelerate our ability to onboard market-leading underwriters who share our long-term vision of building a specialist, diversified marine MGA [managing general agent]. 'I would like to thank Arch for their belief in us from day one, and for their continued support as a key capacity provider." Amphitrite's portfolio includes a variety of marine insurance products such as coverage for hull and machinery, cargo and other marine-related risks. The company's clientele includes operators of diverse vessel types, ranging from general cargo ships to specialised vessels such as yachts and fishing boats. In addition to insurance offerings, Amphitrite provides risk management services, focusing on the implementation of strategies for loss prevention and mitigation across its product range. Amphitrite Underwriting CUO Daniel Boutcher stated: "Our technical approach and underwriting discipline have clearly differentiated us in the marine hull sector. As we grow, we will apply these same principles across other marine classes. For our clients, consistent underwriting and first-class claims service remain paramount." Meanwhile, Arch Insurance North America has appointed Jeff Kaufmann to the newly established position of executive vice-president, head of marine. Kaufmann will be responsible for the expansion of Arch's marine insurance offerings in the US, including both ocean and inland marine products. "Amphitrite Underwriting buys back minority shareholding from Arch Group " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
Hamilton (HG) Q2 EPS Jumps 46%
Key Points EPS (non-GAAP) of $1.55 far exceeded analyst estimates of $1.06, representing a 46.2% non-GAAP beat. The company's combined ratio increased to 86.8%, reflecting a slight uptick in loss and acquisition costs as Hamilton further leans into casualty and reinsurance lines. These 10 stocks could mint the next wave of millionaires › Hamilton Insurance Group (NYSE:HG), a specialty insurer and reinsurer with a focus on data-driven underwriting and diversified investments, delivered its second quarter 2025 results on August 6, 2025. The most important news was a significant earnings beat, with Non-GAAP earnings per share (EPS) coming in at $1.55, far above the $1.06 analyst consensus (non-GAAP), exceeding the $709.25 million GAAP revenue estimate and marking strong growth from the $603.3 million in gross premiums written posted in Q2 2024. Although underwriting income and growth momentum were robust, the company's combined ratio increased to 86.8% compared to 84.4% in Q2 2024, signaling a shift in the business mix and an uptick in certain expense ratios. Overall, Hamilton posted strong top- and bottom-line growth, with EPS and book value advancing on the back of both core insurance and investment results. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP) $1.55 $1.06 $1.24 25.0% EPS (GAAP) $1.79 N/A N/A Revenue (GAAP) $740.8 million N/A $587.9 million 26.0% Operating Return on Average Equity (Non-GAAP) 26.1% 24.4% 1.7 pp Combined Ratio (GAAP) 86.8% 84.4% 2.4 pp Source: Analyst estimates for the quarter provided by FactSet. Company Overview and Key Success Factors Hamilton Insurance Group is recognized for its global specialty insurance and reinsurance operations. Its business spans two primary platforms: International and Bermuda, offering products such as property, casualty, and specialty insurance, as well as reinsurance solutions in core global markets. The company leverages proprietary technology like the Hamilton Analytics and Risk Platform (HARP) for improved risk modeling and decision making. This enables precise pricing, strong risk selection, and efficiency, all of which drive profitability. Recent focus areas for Hamilton include enhancing its competitive edge in underwriting through disciplined risk selection, deepening technology integration, and maintaining a diversified investment strategy anchored by its partnership with the Two Sigma Hamilton Fund. The company's success hinges on its ability to balance rapid premium growth with prudent risk control, using technology and data analytics to adapt its business mix in the face of evolving market trends, regulatory environments, and emerging industry risks. Quarterly Highlights and Segment Performance For the quarter, Hamilton reported operating EPS of $1.55, which was 46.2% ahead of analyst expectations for non-GAAP EPS with top-line gains seen across both the International and Bermuda segments. The company's annualized return on average equity reached 30.2%, an improvement of 6.6 percentage points from the prior year period, reflecting strong profitability and capital management. Gross premiums written (GAAP) increased to $712.0 million, up 18% from the related period last year. The International Segment contributed $344.8 million in gross premiums written, a 10.6% increase while the Bermuda Segment grew faster, adding $367.2 million in gross premiums written, up 25.9%. Net premiums earned (GAAP) rose 22.1% overall, supported by new casualty and specialty reinsurance business, especially in Bermuda. The International Segment posted net premiums earned of $253.2 million and delivered an underwriting income of $27.1 million. The combined ratio—a key insurance industry measure that compares claims and expenses to premiums, with numbers below 100% typically indicating underwriting profitability—improved to 89.3% from 91.0% in Q2 2024. Conversely, Bermuda's underwriting income was $40.3 million, with its combined ratio increasing to 84.3%. The Bermuda result reflected more exposure to casualty reinsurance, which drove an increase in both loss and acquisition expense ratios. Across the company, the consolidated combined ratio edged up to 86.8%, compared to 84.4% in Q2 2024, pointing to the impact of business mix changes and a modest rise in underlying costs. Investment income continued to play a crucial role in boosting bottom-line results. Net investment income came in at $148.7 million, with the Two Sigma Hamilton Fund delivering $87.1 million and traditional fixed income, short-term, and cash investments adding $61.6 million. This performance reflects effective diversification and continued momentum in both managed and market-based investment assets. Share buybacks also featured, with $35.0 million of shares repurchased. Look Ahead and Management Guidance Hamilton management did not provide updated or explicit quantitative financial guidance for the next quarter or for the remaining fiscal year. The leadership affirmed a focus on maintaining double-digit top-line growth and continuing share repurchases if capital conditions permit, but did not release clear targets for EPS or revenue. Recent trends suggest that investors should monitor shifts in Hamilton's loss and acquisition cost ratios, especially as business grows in higher-risk areas such as casualty and specialty reinsurance. Increased catastrophe losses in Q1 2025 and changes in business mix create potential for volatility in future quarters. HG does not currently pay a dividend. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,026%* — a market-crushing outperformance compared to 180% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of August 4, 2025
Yahoo
3 days ago
- Business
- Yahoo
Liberty Mutual Insurance Reports Second Quarter 2025 Results
BOSTON, Aug. 6, 2025 /PRNewswire/ -- Liberty Mutual Holding Company Inc. and its subsidiaries (collectively "LMHC" or the "Company") reported net income attributable to LMHC of $1.845 billion and $2.870 billion for the three and six months ended June 30, 2025, versus income of $717 million and $2.252 billion for the same periods in 2024. "We delivered strong second quarter results, with net income attributable to LMHC of $1.8 billion driven by disciplined underwriting and excellent investment performance," said Tim Sweeney, Liberty Mutual Chairman & Chief Executive Officer. "Our combined ratio improved by 12.4 points to 87.2%, reflecting the impact of our underwriting actions and strategic choices made over the past two years. These results demonstrate meaningful progress toward our 95% combined ratio target and create confidence in our path to sustainable, profitable growth." The tables below outline highlights of LMHC's consolidated financial results for the three and six months ended June 30, 2025. Net Written Premium ("NWP") by Business: Consolidated NWP by business was as follows:Three Months Ended June 30, Six Months Ended June 30, $ in Millions 2025 2024 Change 2025 2024 Change USRM $6,909 $7,415 (6.8 %) $12,970 $13,960 (7.1 %) GRS 4,290 4,062 5.6 8,995 8,438 6.6 Corporate and Other 13 (50) NM 6 (13) NM Total NWP $11,212 $11,427 (1.9 %) $21,971 $22,385 (1.8 %) Foreign exchange effect on growth - (0.1) NWP growth excluding foreign exchange1 (1.9 %) (1.7 %) 1 Determined by assuming constant foreign exchange rates between = Not Meaningful Consolidated Results of Operations:Three Months Ended June 30, Six Months Ended June 30, $ in Millions 2025 2024 Change 2025 2024 Change Revenues $12,499 $12,798 (2.3 %) $24,985 $25,273 (1.1 %) Underlying PTOI before limited partnerships income 2,667 2,444 9.1 5,378 4,373 23.0 Catastrophes (808) (1,742) (53.6) (2,629) (2,569) 2.3 Net incurred losses attributable to prior years: - Asbestos and environmental1 - - - - - - - All other2 241 (24) NM 437 (18) NM Pre-tax operating income before limited partnerships income 2,100 678 NM 3,186 1,786 78.4 Limited partnerships income3 410 466 (12.0) 777 625 24.3 Pre-tax operating income 2,510 1,144 119.4 3,963 2,411 64.4 Net realized losses (123) (162) (24.1) (193) (254) (24.0) Acquisition & integration costs (28) (19) 47.4 (52) (40) 30.0 Restructuring costs (8) (19) (57.9) (23) (25) (8.0) Pre-tax income 2,351 944 149.0 3,695 2,092 76.6 Income tax expense 501 232 115.9 816 502 62.5 Consolidated net income from continuing operations 1,850 712 159.8 2,879 1,590 81.1 Discontinued operations, net of tax - 10 (100.0) - 673 (100.0) Consolidated net income 1,850 722 156.2 2,879 2,263 27.2 Less: Net income attributable to non-controlling interest 5 5 - 9 11 (18.2) Net income attributable to LMHC 1,845 717 157.3 2,870 2,252 27.4 Net income attributable to LMHC excluding unrealized impact4 1,847 717 157.6 2,988 2,260 32.2 Cash flow provided by continuing operations $1,765 $1,414 24.8 % $2,204 $2,315 (4.8 %) 1 Asbestos and environmental is gross of the related adverse development reinsurance (the "NICO Reinsurance Transaction", which is described further in Reinsurance). 2 Net of earned premium and reinstatement premium attributable to prior years of $2 million and $93 million for the three and six months ended June 30, 2025, and $104 million and $112 million for the same periods in 2024. 3 Limited partnerships income includes LP, LLC and other equity method income within net investment income in the accompanying Consolidated Statements of Operations and revenue and expenses from direct investments in natural resources. 4 Excludes unrealized gains on equity securities and the corresponding tax = Not Meaningful Combined Ratio:Three Months Ended June 30, Six Months Ended June 30, CONSOLIDATED 2025 2024 Change(Points) 2025 2024 Change(Points) Combined ratio Claims and claim adjustment expense ratio 53.8 % 57.6 % (3.8) 53.9 % 59.8 % (5.9) Underwriting expense ratio 28.3 26.4 1.9 28.1 26.4 1.7 Underlying combined ratio 82.1 84.0 (1.9) 82.0 86.2 (4.2) Catastrophes 7.3 15.4 (8.1) 12.0 11.3 0.7 Net incurred losses attributable to prior years: - Asbestos and environmental - - - - - - - All other1 (2.2) 0.2 (2.4) (2.1) 0.2 (2.3) Total combined ratio 87.2 % 99.6 % (12.4) 91.9 % 97.7 % (5.8) 1 Net of earned premium and reinstatement premium attributable to prior years. 2 The combined ratio, expressed as a percentage, is a measure of underwriting profitability. This measure should only be used in conjunction with, and not in lieu of, underwriting income and may not be comparable to other performance measures used by the Company's competitors. The combined ratio is computed as the sum of the following property and casualty ratios: the ratio of claims and claim adjustment expense less managed care income to earned premium; the ratio of insurance operating costs plus amortization of deferred policy acquisition costs less third-party administration income and fee income (primarily related to the Company's involuntary market servicing carrier operations) and installment charges to earned premium; and the ratio of policyholder dividends to earned premium. Provisions for uncollectible premium and reinsurance are not included in the combined ratio unless related to an asbestos and environmental commutation and certain other run off. Restructuring and acquisition and integration costs are not included in the combined ratio. Equity:As of June 30, As ofDecember 31,$ in Millions 2025 2024 Change Unassigned equity $37,244 $34,374 8.3 % Accumulated other comprehensive loss (2,602) (3,928) (33.8) Non-controlling interest 211 206 2.4 Total equity $34,853 $30,652 13.7 % Subsequent Events Management has assessed material subsequent events through August 6, 2025, the date the financial statements were available to be issued. Financial Information The Company's financial results, management's discussion and analysis of operating results and financial condition, accompanying financial statements and other supplemental financial information for the three and six months ended June 30, 2025 are available on the Company's Investor Relations website at Conference Call Information On August 7, 2025, at 10:00 a.m. Eastern Time, Tim Sweeney, Liberty Mutual Insurance Chairman and CEO, will host a conference call to discuss the Company's second quarter financial results. To participate in the event via telephone and to ask a question, please dial 844-481-2837 and request to join into the Liberty Mutual Insurance call. To listen to the call online via PC and view a presentation on financial performance, please log into Following the call, a recording of the event will be available on the Investor Relations section of Liberty Mutual's website, About Liberty Mutual Insurance At Liberty Mutual, we believe progress happens when people feel secure. For more than 110 years we have helped people and businesses embrace today and confidently pursue tomorrow by providing protection for the unexpected and delivering it with care. A Fortune 100 company with more than 40,000 employees in 28 countries and economies, we are the ninth largest global property and casualty insurer and generate more than $50 billion in annual consolidated revenue. We operate through three strategic business units: US Retail Markets, providing auto, home, renters and other personal and small commercial lines property and casualty insurance to individuals and small businesses countrywide; Global Risk Solutions, delivering a full range of comprehensive commercial and specialty insurance, reinsurance and surety solutions to mid-size and large businesses worldwide; and Liberty Mutual Investments, deploying more than $100 billion of long-term capital globally across its integrated platform to drive economic growth, power innovation and secure Liberty Mutual's promises. For more information, visit Cautionary Statement Regarding Forward Looking Statements This report contains forward looking statements that are intended to enhance the reader's ability to assess the future financial and business performance of the Company. Forward looking statements include, but are not limited to, statements that represent the Company's beliefs concerning future operations, strategies, financial results, investment market fluctuations, or other developments, and contain words and phrases such as "may," "expects," "should," "believes," "anticipates," "estimates," "intends" or similar expressions. Because these forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond the Company's control or are subject to change, actual results could be materially different. Contact: Investor Relations Media RelationsRobert Pietsch Rich Angevine857-224-6655 617-833-0926 View original content to download multimedia: SOURCE Liberty Mutual Insurance Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Insurer AIG posts higher quarterly profit on underwriting strength
(Reuters) -American International Group reported a higher second-quarter profit on Wednesday, powered by strong underwriting gains and higher returns on investments. Insurers like AIG and Travelers Cos are benefiting as businesses and individuals have maintained spending on insurance against the backdrop of economic uncertainty. "We continued to make significant progress on our long-term strategic, operational and financial objectives while navigating a dynamic macroeconomic environment," CEO Peter Zaffino said in a statement. General insurance net premiums written, on a comparable basis, rose to $6.88 billion in the three months ended June 30. General insurance underwriting income soared 46% to $626 million. AIG's general insurance combined ratio came in at 89.3% on an adjusted basis, compared with 92.5% a year earlier. A ratio below 100 signifies that the insurer earned more from premiums than it paid out in claims. A rebound in the stock markets following tariffs-related volatility has also helped insurers boost their investment income. Net investment income jumped 48% to $1.47 billion in the second quarter, driven by a change in the fair value of AIG's equity in Corebridge and higher income on available for sale fixed maturity securities. The company retains a stake in Corebridge, the life and retirement insurer it spun off in 2022. AIG posted catastrophe-related charges of $170 million in the quarter, down from $330 million in the year-ago period. The company - one of the world's largest commercial insurers - reported adjusted after-tax income attributable to common shareholders of $1.04 billion, or $1.81 per share, compared with $771 million, or $1.16 per share, a year earlier. Shares of the company have gained nearly 8% in 2025, outperforming the broader Dow Jones U.S. Select Insurance Index.
