KBRA Affirms Ratings for Hamilton Re and Hamilton Insurance Group

KBRA affirms the A Insurance Financial Strength Rating (IFSR) of Hamilton Re, Ltd. (Hamilton Re) and the BBB+ Issuer Rating of Hamilton Insurance Group, Ltd. (NYSE: HG) (Hamilton Group). Collectively, the companies are referred to as Hamilton. The Outlook for both ratings is Stable.

Key Credit Considerations

The ratings reflect Hamilton’s high quality capital base and strong risk based capitalization, modest financial leverage and ample access to additional capital, very strong liquidity profile, embedded ERM framework in front line decision making, and experienced management team. As of December 31, 2024, Hamilton Re, the flagship company for Hamilton Group, reported total capital of $2.2 billion which consisted entirely of common equity. At yearend 2024, Hamilton Re’s BSCR coverage ratio of 212% was in line with KBRA expectations at the current rating level and provided a solid buffer against severe stress scenarios. Hamilton benefits from diversified bank facilities that were recently upsized and renewed as well as demonstrated access to public equity markets at the holding company level. KBRA believes that Hamilton’s liquidity profile is very strong, supported by significant unrestricted cash on the balance sheet, ample unused liquidity facilities, and a high credit quality, liquid fixed income investment portfolio. Hamilton’s embedded enterprise risk management framework, anchored by proprietary analytics, supports disciplined, data-driven underwriting and aligns subsidiary risk appetites with group tolerances. In addition, a seasoned management team and orderly leadership succession announced in June 2025 further reinforce the group’s resilience in a dynamic reinsurance market.

Balancing these strengths are potential future volatility in underwriting results, reliance on returns from the TS Hamilton Fund to balance shortfalls in underwriting results, and exposure to event risk. While Hamilton Re’s underwriting earnings have recently trended favorably, the company has been susceptible to catastrophe events, with only three of the past five years reporting combined ratios below 100%. The company's attritional loss ratios over the past three years do not reflect a sufficient cushion to absorb underwriting volatility, in KBRA’s opinion. With Hamilton expanding its risk tolerances as of January 1, 2025, to capture continuing hard market margins, KBRA believes this could potentially amplify catastrophe and earnings volatility going forward. Hamilton Re has reported net income of $831 million over the past five years, driven by $1,062 million in net investment income predominantly from the TS Hamilton Fund, modestly supported by underwriting income of $216 million, largely from 2023 and 2024. Hamilton is exposed to liability, market and interest rate event risks that are inherent in its business model, although these risks are actively managed through retrocession, asset–liability duration matching and rigorous stress testing.

Rating Sensitivities

Demonstrable, sustained improvement in underwriting metrics (underlying combined ratio, attritional loss ratio, expense ratio), reduction in the TS Hamilton Fund as a percentage of total invested assets and as a driver of net income, and/or any other actions that dampen earnings volatility could result in positive rating action.

Conversely, significant deterioration in regulatory or internal risk-based solvency ratios without a credible remediation plan, increase in gross risk appetite without commensurate retrocessional protection, multiple consecutive years with combined ratios above 100%, sustained adverse loss reserve development, significant increase in financial leverage and/or material deterioration in liquidity could result in a negative rating action.

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Methodologies