Highlights

  • Hamilton shows 58.61% one-year basic EPS growth, a P/E of 6.34 and PEG of 0.00.
  • Second quarter basic EPS was $1.45 against $1.85; six-month basic EPS was $2.79 against $2.64.
  • Second quarter combined ratio was 95.0% against 86.8%; Middle East conflict losses were $45.7 million.
  • Hamilton repurchased 720,310 Class B shares in the quarter; $136.7 million of authorization remains.

One-year earnings growth of 58.61%, paired with a trailing twelve-month P/E of 6.34 and an expected-basis PEG of 0.00, puts Hamilton Insurance Group (NYSE:HG) among undervalued growth stocks, with shares trading at USD 35.16 on October 28, 2026, down 0.90%. In its latest disclosures, the specialty insurance and reinsurance group declared a $2.00 per share special dividend in February, entered a new investment agreement with Two Sigma on April 1, and reported second quarter 2026 net income attributable to common shareholders of $143,782 thousand in its Form 10-Q filed in August.

Hamilton states that it is a global specialty insurance and reinsurance company founded in Bermuda in 2013, with principal executive offices in Pembroke and incorporation in Bermuda. It reports two segments: International, which includes the Hamilton Global Specialty and Hamilton Select platforms, and Bermuda, which consists of the Hamilton Re platform. It has underwriting operations in London, Dublin, Bermuda and the United States, and over 600 full-time employees.

Growth: Second Quarter Earnings, Premiums and Underwriting

Net income attributable to common shareholders was $143,782 thousand in the second quarter against $187,415 thousand a year earlier, and $277,320 thousand for the six months against $268,288 thousand. Second quarter basic earnings per share were $1.45 against $1.85, and diluted earnings per share were $1.42 against $1.79. Six-month basic earnings per share were $2.79 against $2.64, and diluted were $2.73 against $2.56.

Gross premiums written were $831.0 million against $712.0 million, which the company attributed primarily to casualty and specialty classes, partly offset by a decrease in property classes on rate decreases. Net premiums earned were $586,007 thousand against $511,163 thousand.

Underwriting income, a non-GAAP measure, was $29,112 thousand against $67,459 thousand in the quarter, and $86,695 thousand against $9,199 thousand for the six months. The six-month combined ratio was 92.5% against 99.1%.

Valuation: P/E of 6.34, PEG of 0.00 and Book Value

The P/E ratio of 6.34 is measured on trailing twelve-month earnings, and the PEG ratio of 0.00 on an expected basis. Book value per common share was $28.91 at June 30, 2026, against $28.50 at December 31, 2025 and $30.91 including accumulated dividends of $2.00. Tangible book value per common share was $28.07. Return on average common shareholders' equity was 5.2% for the quarter against 7.6%, and 9.8% for six months against 11.0%.

The TS Hamilton Fund, managed by Two Sigma, returned 5.1% net of fees and incentive allocations in the quarter against 4.4%.

Capital Returns and Balance Sheet: Repurchases, Special Dividend and Debt

Hamilton repurchased 720,310 Class B shares for $22,096 thousand in the quarter and 1,394,783 shares for $41,802 thousand in the six months. A $150.0 million authorization was approved on November 4, 2025, and $136.7 million remained at June 30, 2026. The $2.00 per share special dividend was declared on February 18, 2026 and paid on March 30, 2026.

Shareholders' equity was $2,850,836 thousand against $2,822,099 thousand at December 31, 2025. Unrestricted cash and cash equivalents were $717.3 million against $1.1 billion. The outstanding balance on the $150 million term loan was $150,000 thousand; the facility matures on June 9, 2028.

Disclosed Risks and Outlook for 2026

The second quarter combined ratio was 95.0% against 86.8%, which the company attributed primarily to a higher catastrophe loss ratio and acquisition cost ratio. Catastrophe losses were $49.9 million, of which $45.7 million came from the Middle East conflict. Six-month prior-year development in the attritional loss ratio reflected additional information on large losses, including the Baltimore Bridge collapse, and certain Bermuda casualty classes.

The company said it has observed more competitive conditions in property and some specialty classes, and that property gross premiums written decreased on rate decreases. It reported $786.1 million of restricted cash and investments supporting non-admitted carrier obligations and $255.5 million supporting letter of credit facilities. It has agreed to use reasonable best efforts to keep an investment in the TS Hamilton Fund of not less than the lesser of $1.8 billion or 60% of net tangible assets. Legal proceedings are incorporated by reference to its Form 10-K.

On the call, management said it expects low double-digit premium growth for full-year 2026, against 14% growth in the first half. It reiterated attritional loss ratio expectations of about 54.5% for International, 55% for the group and 56% for Bermuda, and said it expects to run the book in the low to mid nineties on a combined ratio on average through the cycle.