Hamilton Insurance Group’s third-quarter net income fell 40 per cent year over year, as additional provisions for Ukraine conflict claims weighed on underwriting results.

The Bermudian-based insurer and reinsurer earned $81.5 million, down from $136.2 million in the third quarter of 2025. The earnings broke down to 81 cents per diluted share, compared with $1.32 last year.

Underwriting income fell to $15.5 million from $64.1 million, while the combined ratio deteriorated to 97.3 per cent from 87.8 per cent. A ratio below 100 per cent indicates an underwriting profit.

Hamilton recorded $53.9 million in catastrophe losses, net of reinsurance, comprising $47.1 million of adverse development on prior-year Ukraine conflict claims and $6.8 million relating to the Middle East conflict.

These were partly offset by $27.2 million of favourable development on prior-year attritional claims, primarily in certain specialty classes.

Gross premiums written rose 17.3 per cent to $819.7 million, with growth across both operating segments. Net premiums earned increased 13.1 per cent to $591.3 million.

Operating income was $179.9 million, or $1.78 per diluted share, generating an annualised operating return on average equity of 24.9 per cent. The annualised return on average equity based on net income was 11.3 per cent.

Pina Albo, Hamilton’s chief executive, said: “Gross premiums written increased 17 per cent, reflecting our ability to find attractive opportunities that contribute to the bottom line.”

She added: “Despite a transitioning market and ongoing geopolitical tensions, Hamilton continues to deliver consistent performance, reflecting the benefits of our diversified platform and our team's ability to navigate the current dynamic market conditions.”

Underwriting income at Hamilton Re, the company’s Bermuda segment, declined to $6.6 million from $52.3 million, as its combined ratio rose to 97.7 per cent from 80.7 per cent.

The segment absorbed $42.6 million in additional Ukraine conflict losses and reported a change in business mix, with a shift towards casualty reinsurance.

Bermuda gross premiums written increased 13.9 per cent to $363.4 million, driven by casualty and specialty reinsurance.

The international segment grew gross premiums written by 20.1 per cent to $456.3 million. Its underwriting income slipped to $9 million from $11.8 million, with a combined ratio of 97.1 per cent.

Net investment income totalled $88.4 million, comprising $144.7 million in Two Sigma Hamilton Fund returns, offset by $56.3 million in losses from fixed-income, short-term and cash investments.

For the first nine months, net income fell to $358.8 million from $404.5 million, although underwriting income increased to $102.2 million from $73.3 million.

Book value per share reached $29.80, up 4.6 per cent this year. Including the $2 special dividend paid in March, growth was 11.6 per cent.

Hamilton repurchased $44.9 million of common shares during the first nine months of the current financial year.

• This story was generated by machine and edited by The Royal Gazette newsroom