Investors will soon have an opportunity to ride the star of top Bermudian insurance executive, Brian Duperreault and his latest corporate venture.

The Hamilton Insurance Group may go public as early as next year, as the company continues to swiftly build a 21st century re/insurance franchise.

The group CEO stated: “Future plans for Hamilton Insurance Group include taking the company public, but this won’t happen before next year. There are a number of issues including operational as well as market conditions that would need to be taken into consideration before we’ll proceed with an IPO.”

The Bermuda domiciled company had over $800 million in capital as of March 31. Subsidiary, Hamilton Re, is a Bermuda-based Class 4 property and casualty reinsurer, rated “A-“ (Excellent) with a stable outlook by A.M. Best.

The uniqueness of Hamilton Re is partly due to the backing of Two Sigma, which also brings the technology and data analytic capabilities as asset manager. Two Sigma enhances the science of underwriting by applying data analytic capabilities.

Hamilton Re CEO Kathleen Reardon said: “At the heart of it is insurance and reinsurance, we can see an improvement in underwriting — improving risk selection, price accuracy, processing time. I think Two Sigma will even help us with product development, especially in the technology world, whether it is cyber or social media. There are risks that are not being protected right now and who better to help us with that but Two Sigma.

“The quality underwriting supplemented with some unique data analytics and an enhanced asset portfolio gives us a bit more balance and helps us navigate cycles such as this soft market. There is also great potential in helping us develop new products to offer to clients. It’s pretty exciting and people are watching.”

The IPO for Hamilton Insurance Group would be well received for these and other reasons, not the least of which is the strong director and executive teams.

They include group chairman Sandy Weil, who is also chairman emeritus of Citigroup. The former chairman and CEO of Travelers, he retired as CEO of Citigroup and served as non-executive chairman.

Mr Duperreault as group CEO also brings an array of globally recognised leadership qualities that were evidenced at AIG, ACE Ltd and the Marsh Group.

David Brown was formerly chief executive of Centre Solutions, and more recently, Flagstone Reinsurance Holdings Ltd.

In fact, the list of names on both the board and the executive team is a virtual who’s who in insurance and finance.

But after attracting these iconic executives, the Bermuda re/insurance company faces an industry under assault.

There are increasing regulatory pressures, a glut of competitive capital, augmented by a preponderance of alternative market financing and pricing that is virtually in free-fall.

But Ms Reardon said the strategic business plan employed by the company will set them apart. An actuary, turned underwriter and now in management, she said the skill sets brought to the company by the directors and officers of the companies are first class.

She observed, “The reinsurance market is challenging, the supply is in excess, and we have seen some pretty aggressive pricing, especially in the property catastrophe space. We are well positioned, because we are not just a property cat writer.

“We have a multi-line strategy and we have the benefit of the investment income working for us. So we have a better shot at navigating the cycles. And ultimately, those who have the right people, the best relationships and the quality products to offer, are going to get the business.

“In hard market or soft, there are people in the top quartile and some in the bottom. You can outperform in any market. We believe we can do that.

“We’re not just doing traditional underwriting. We are going to utilise the technology and data analytic capabilities of Two Sigma. We’re not just passively managing our assets. We’re going to actively manage our assets and get higher returns than our peers.

“We’ve got the knowledgeable group leadership, the experience and the right business plan — it is unique — for any market.”

Hamilton Re has over 200 clients, but look to expand their reach with the latest deal struck with Iron-Starr Excess Agency Ltd. (Iron-Starr), the managing general agency that underwrites on behalf of Ironshore Insurance Ltd. (Ironshore) and Starr Insurance & Reinsurance Limited (Starr).

The partnership gives them access to an established book of business and attractive lines in excess casualty, professional lines and healthcare.

It comes with first class underwriting and claims personnel and a partnership with Iron Shore and Starr.

Ms Reardon said: “So far, we’ve been a reinsurance shop, but in essence we are accessing a facility that has an established underwriting team and a book of business. It’s not too dissimilar to writing reinsurance and it’s exactly the portfolio that we would be targeting ourselves. So, we are an insurance partner.

“We’re equal parties, as far as the line sizes. We give them an increased capacity to offer their clients more limits. And we get two very good partners and an excellent team.”

Ms Reardon said: “We have built up a reinsurance portfolio of property, casualty and speciality business. This new business will be a meaningful part of our casualty portfolio. It already has motor and medical malpractice and some excess liability, but this will be a good way to broaden the scope of this portfolio.”

Hamilton Re has a property cat book of business, a speciality book which is multi-line, marine and energy, satellite, agriculture and terrorism. Long term, the company will target emerging markets — Asia, Latin America.

The group will seek to build a US and a Lloyd’s presence.