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Item 7. Management’s Discussion and Analysis

2025-02-27 compared with 2024-03-07 · 414 added, 464 removed, 908 unchanged (49% of the section changed)

Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the “Selected Consolidated Financial Data” and our audited consolidated financial statements and related notes thereto included in this Form 10-K.

The following discussion and analysis should be read in conjunction with the "Selected Consolidated Financial Data" and our audited consolidated financial statements and related notes thereto included in the Group's Annual Report on Form 10-K (the "Form 10-K").

In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations.

Factors that could cause such differences are discussed in the sections entitled "Special Note Regarding Forward-Looking Statements" and "Risk Factors" in this Annual Report.

Factors that could cause such differences are discussed in the sections entitled "Special Note Regarding Forward-Looking Statements" and "Risk Factors" in the Form 10-K.

We do not undertake any obligation to update any forward-looking statements or other statements we may make in the following discussion or elsewhere in this document even though these statements may be affected by events or circumstances occurring after the forward-looking statements or other statements were made.

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Financial Strength Ratings

Reserve for Claims and Claim Expenses

Reserve for Losses and Loss Adjustment Expenses

Contractual Obligations and Commitments

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We harness multiple drivers to create shareholder value, including diverse underwriting operations supported by proprietary technology and a team of over 600 full-time employees, a strong balance sheet, and a unique investment management relationship with Two Sigma.

We operate globally, with underwriting operations in Lloyd’s, Ireland, Bermuda, and the United States.

We operate globally, with underwriting operations in London, Dublin, Bermuda and across the United States.

We operate three principal underwriting platforms (Hamilton Global Specialty, Hamilton Select and Hamilton Re) that are categorized into two reporting business segments (International and Bermuda):

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International consists of business written out of our Lloyd’s syndicate and subsidiaries based in the United Kingdom, Ireland, and the United States, and includes the Hamilton Global Specialty and Hamilton Select platforms.

• Hamilton Global Specialty focuses predominantly on commercial specialty and casualty insurance for

medium to large-sized accounts and specialty reinsurance products written by Lloyd’s Syndicate 4000

Syndicate 4000, a leading Lloyd’s syndicate, generates a significant portion of premium

from the U.S.

E&S market and has ranked among the most profitable and least volatile syndicates at

Lloyd’s over the last 10 years.

• Hamilton Select, our recently launched U.S.

domestic E&S carrier, writes casualty insurance for small

to mid-sized clients in the hard-to-place niche of the U.S.

We believe it presents

meaningful and profitable growth opportunities in the near to long term, further expanding our

footprint in the U.S.

• Hamilton Global Specialty focuses predominantly on commercial specialty and casualty insurance for medium to large-sized accounts and specialty reinsurance products written by Lloyd’s Syndicate 4000 and HIDAC.

Syndicate 4000, a leading Lloyd’s syndicate, generates a significant portion of premium from the U.S.

E&S market and has ranked among the most profitable and least volatile syndicates at Lloyd’s over the last 10 years.

• Hamilton Select, our U.S.

domestic E&S carrier, writes casualty insurance for small to mid-sized clients in the hard-to-place niche of the U.S.

We believe it presents meaningful and profitable growth opportunities in the near-to-long term, further expanding our footprint in the U.S.

Bermuda consists of the Hamilton Re platform, made up of Hamilton Re and Hamilton Re US.

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Hamilton Re US writes casualty and specialty reinsurance business on a global basis.

Our International segment includes both the Hamilton Global Specialty and Hamilton Select platforms.

Hamilton Global Specialty focuses predominantly on commercial specialty and casualty insurance products for medium to large-sized accounts and specialty reinsurance for a variety of global insurance companies.

Its business is distributed via Lloyd’s Syndicate 4000 and HIDAC in Ireland.

Hamilton Select, our recently launched U.S.

domestic E&S carrier, writes casualty insurance for small to midsized commercial clients in the hard-to-place niche of the U.S.

Hamilton Select does not write any property business.

Our Bermuda segment encompasses the Hamilton Re platform on which we write property, casualty and specialty reinsurance business on a global basis as well as high excess insurance products, predominantly to large U.S.-based commercial clients.

Hamilton Re US writes casualty and specialty reinsurance business predominantly for U.S.-domiciled insurers.

We seek to prudently manage our capital with the objective of effectively navigating different market conditions and generating strong underwriting margins throughout all market cycles.

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Leveraging our disciplined underwriting approach, balance sheet strength and flexibility and real-time technology prowess, we can respond dynamically to capture opportunities as markets evolve.

One of our key strategic priorities is sustainable underwriting profitability on the business we write.

Our data-driven and

disciplined underwriting processes position us to intelligently price and structure our products and our business portfolio.

One of our key strategic priorities is sustainable underwriting profitability across the business we write.

Our data-driven and disciplined underwriting processes position us to intelligently price and structure our products and our business portfolio.

We maintain trusted and long-standing relationships with our clients and brokers, who we believe will continue to provide us with increased access to attractive business.

We see growth opportunities in both the insurance and reinsurance markets in which we operate and intend to pursue disciplined growth across all our underwriting platforms.

In recent years the U.S.

E&S market has benefited from a strong rate environment and increased submissions as business has shifted into the non-admitted market from the admitted market.

We see growth opportunities in both the insurance and reinsurance markets in which we operate and intend to pursue disciplined growth across our underwriting platforms.

In recent years the E&S market has benefited from a strong rate environment and increased submissions as business has shifted into the non-admitted market from the admitted market.

Non-admitted insurers are able to cover unique and hard-to-place risks because they have flexibility of rate and form and can accommodate the unique needs of insureds who are unable to obtain coverage from admitted carriers.

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E&S insurance business will allow us to build a robust and diversified book of business and achieve our profitable growth objectives throughout various market cycles.

Reinsurance business offers a particularly attractive opportunity given the favorable rating environment and reduction of capacity at this time in the cycle and is expected to accelerate growth opportunities for us in the near term.

A number of factors, including economic and social inflation, combined with higher interest rates and increases in the frequency and severity of natural catastrophe events in recent years, have created a supply/demand imbalance and are driving the most favorable market conditions seen in decades.

We are a recognized market with deep client and broker relationships and have low counter-party credit concentration with many of our insurance partners, providing ample headroom for us to grow.

Reinsurance business continues to offer a particularly attractive opportunity given the strong rating environment and discipline in the market and is expected to accelerate growth opportunities for us in the near term in many areas.

A number of factors, including economic and social inflation and the frequency and severity of natural catastrophe events created the strongest market conditions seen in decades.

We are a recognized market with deep client and broker relationships, low counter-party credit concentration with many of our insurance partners and a recent rating upgrade to "A" from A.M.

Best, providing ample headroom for us to grow.

We are well positioned to deploy capital quickly, efficiently and profitably through writing more reinsurance business, as well as retaining more of our own business.

Our strong, sustainable underwriting operations are complemented by our unique investment portfolio, which consists of the Two Sigma Hamilton Fund, LLC, a Delaware limited liability company ("TS Hamilton Fund" or "TSHF"), and our investment grade fixed income portfolio which is currently benefiting from strong interest rates.

Our strong, sustainable underwriting operations are complemented by our unique investment portfolio, which consists of the Two Sigma Hamilton Fund, LLC ("TS Hamilton Fund" or "TSHF"), and our investment grade fixed income portfolio, which is currently benefiting from strong interest rates.

We plan to continue to optimize our investment portfolio through a balanced allocation of invested assets and maintain the flexibility to adjust this allocation as needed.

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We have a unique and long-term investment management relationship with Two Sigma.

Founded in 2001, Two Sigma aims to consistently generate alpha in liquid global markets across a range of conditions using a disciplined, scientific approach and managed approximately $60 billion of assets across affiliates at December 31, 2023.

Founded in 2001, Two Sigma is a premier investment manager with a strong track record, driven by a differentiated application of technology and data science.

The TS Hamilton Fund is a dedicated fund-of-one managed by Two Sigma with exposures to certain Two Sigma macro and equity strategies and is designed to provide low-correlated absolute returns, primarily by combining multiple hedged and leveraged systematic investment strategies with proprietary risk management investment optimization and execution techniques.

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Two Sigma has broad discretion to allocate invested assets to different opportunities.

Its current investments include FTV, STV and ESTV.

At December 31, 2024, its investments include Two Sigma Futures Portfolio, LLC ("FTV"), Two Sigma Spectrum Portfolio, LLC ("STV") and Two Sigma Equity Spectrum Portfolio, LLC ("ESTV").

The TS Hamilton Fund’s trading and investment activities are not limited to these strategies and techniques and the TS Hamilton Fund is permitted to pursue any investment strategy and/or technique that Two Sigma determines in its sole discretion to be appropriate for the TS Hamilton Fund from time to time.

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Historically, inflation has not had a material effect on the Company’s consolidated results of operations.

However, global economic inflation has recently increased and there is a risk that it will remain elevated for an extended period.

Inflation is subject to many macroeconomic factors beyond our control, including global banking policy, political risks, supply chain issues, and the continuing impact of the COVID-19 pandemic.

An inflationary economy may result in higher claims and claims expenses, negatively impact the performance of our fixed income security investment portfolio, or increase our operating expenses, among other unfavorable effects.

However, over the last several years, global economic inflation has increased, and there is a risk that it will remain elevated for an extended period.

Inflation is subject to many macroeconomic factors beyond our control, including global banking policy, political risks and supply chain issues.

An inflationary economy may result in higher losses and loss adjustment expenses, negatively impact the performance of our fixed income security investment portfolio, or increase our operating expenses, among other unfavorable effects.

The ultimate effects of an inflationary or deflationary period are subject to high uncertainty and cannot be accurately estimated until the actual costs are known.

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As with general economic inflation, the actual effects of inflation on reserves for losses and loss adjustment expenses and results of operations cannot be accurately known until all of the underlying claims are ultimately settled.

On December 27, 2023, the Bermuda Government enacted a 15% corporate income tax that will generally become effective for Bermuda domiciled entities on or after January 1, 2025.

On December 27, 2023, the Bermuda Government enacted a 15% corporate income tax that generally became effective for Bermuda domiciled entities on or after January 1, 2025.

The legislation defers the effective date until January 1, 2030 for so long as the consolidated group operates in six or fewer jurisdictions, has less than €50 million in tangible assets and none of its Bermuda entities are subject to the Income Inclusion Rule in any other jurisdiction.

The act is a response to the OECD Pillar 2 worldwide minimum tax that would otherwise require a top-up tax be paid on Bermuda-sourced income to non-Bermuda jurisdictions such that a 15% minimum effective tax rate is achieved for Hamilton Group’s Bermuda entities.

The act is a response to the OECD Pillar 2 worldwide minimum tax that would otherwise require a top-up tax be paid on Bermuda-sourced income to non-Bermuda jurisdictions such that a 15% minimum effective tax rate ("ETR") is achieved for Hamilton Group’s Bermuda entities.

Hamilton Group expects to be exempt from the worldwide minimum tax until January 1, 2030, pursuant to an exemption similar to that available in Bermuda.

The act includes a provision referred to as the economic transition adjustment, which is intended to provide a fair and equitable transition into the tax regime, and, as a result, the Company has recorded a deferred tax benefit of $35.1 million in the quarter ended December 31, 2023.

The act includes a provision referred to as the economic transition adjustment (“ETA”), which is intended to provide a fair and equitable transition into the tax regime.

As of December 31, 2024, the Company holds a deferred tax asset of $35.4 million on its balance sheet related to the ETA.

On January 15, 2025, the OECD issued additional guidance related to the calculation of income subject to taxation under Pillar 2.

Specifically, it provided that for purposes of calculating Pillar 2 taxes, a deduction for the ETA will not be allowed in years after 2026.

Accordingly, when Hamilton Group becomes subject to Pillar 2 taxation on its Bermuda earnings, expected in 2030, it is possible that a top-up tax liability will arise to the extent that it does not achieve a 15% minimum ETR on its Bermuda taxable earnings, excluding the ETA deduction.

If Hamilton were to incur a Pillar 2 top-up tax on its Bermuda earnings, the liability would be recorded in the period and jurisdiction in which it is incurred.

SELECTED CONSOLIDATED FINANCIAL DATA

In 2022, the Company changed its fiscal year from November 30 to December 31.

References to the current year in this document refer to the calendar year ended December 31, 2024.

In 2022, the Company changed its fiscal year from November 30 to December 31.

The following tables set forth our selected consolidated financial data and other financial information at the end of and for each of the years in the five-year period ended December 31, 2024.

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Results of Operations

($ in thousands, except shares and per share amounts) For the Years Ended

($ in thousands, except per share amounts) For the Years Ended

December 31, November 30,

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(2) Third party fee income is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K.

The reconciliation to other income (loss), the most comparable GAAP financial measure, also included other income (loss), excluding third party fee income of $0.4 million and $(0.3) million for the years ended December 31, 2023 and 2022, respectively, and less than $0.1 million for each of the years ended November 30, 2021, 2020 and 2019.

The reconciliation to other income (loss), the most comparable GAAP financial measure, also included other income (loss), excluding third party fee income of $Nil, $0.4 million and $(0.3) million for the years ended December 31, 2024, 2023 and 2022, respectively, and less than $0.1 million for each of the years ended November 30, 2021 and 2020.

Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measures' for further details.

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Summary of Critical Accounting Estimates

The Company’s audited consolidated financial statements have been prepared in accordance with U.S.

The accompanying audited consolidated financial statements have been prepared in accordance with U.S.

GAAP and include certain amounts that are inherently uncertain and judgmental in nature.

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The sensitivity estimates that follow are based on the Company’s assessment of reasonably likely outcomes.

These critical accounting estimates should be read in conjunction with the Notes to the audited consolidated financial statements, including Note 2, Summary of Significant Accounting Policies , for a full understanding of the Company’s accounting policies.

These critical accounting estimates should be read in conjunction with the notes to the accompanying audited consolidated financial statements, including Note 2, Summary of Significant Accounting Policies , for a full understanding of the Company’s accounting policies.

Reserve for Losses and Loss Adjustment Expenses

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Adjustments are recognized in the period in which they are determined and may impact that period's underwriting results either favorably (when current estimates are lower than previous estimates) or unfavorably (when current estimates are higher than previous estimates).

Gross loss reserves for each of the reportable segments, segregated between case reserves and IBNR, by reserve class, as at December 31, 2023 and 2022, respectively, are shown below:

Gross loss reserves for each of the reportable segments, segregated between case reserves and IBNR, by reserve class, are shown below:

As at December 31,

($ in thousands) International Bermuda Total International Bermuda Total

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Management’s Best Estimate

The Company’s recorded reserves at each reporting date reflect management’s best estimate of ultimate reserve for losses and loss adjustment expenses at that date.

Management completes quarterly reserve studies for each exposure group for its Bermuda and International segments.

The Company’s recorded reserves at each reporting date reflect management’s best estimate of the ultimate reserve for losses and loss adjustment expenses at that date.

Management completes quarterly reserve studies for each exposure group for its International and Bermuda segments.

Management analyzes significant variances between internal and external actuarial estimates, as well as any relevant additional market, underwriting or claims data that may be available and relevant for setting management’s best estimate of ultimate reserves.

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The Company’s best estimates are point estimates within a range of reasonable actuarial estimates.

To provide an indication of the possible size of this range, in the following table we have compared the point estimate for net losses and loss adjustment expenses recorded by each reportable segment with a range of reasonable actuarial estimates at December 31, 2023:

December 31, 2024

($ in thousands) Recorded Point Estimate High Low

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Year ended December 31, 2023 (22,498) 6,881 (15,617)

Year ended November 30, 2021 (1)

$ 12,600 $ (821) $ 11,779

(1) Includes the U.S.

GAAP accounting impact of a loss portfolio transfer purchased in 2020.

For a detailed discussion of net (favorable) unfavorable prior year reserve development by reportable segment for the years ended December 31, 2023 and 2022, and November 30, 2021 see Results of Operations .

Year ended December 31, 2022 $ (26,833) $ 6,230 $ (20,603)

For a detailed discussion of net (favorable) unfavorable prior year reserve development by reportable segment for the years ended December 31, 2024, 2023 and 2022 see Results of Operations .

Claim Tail Analysis

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shortening the claim tail) results in lower ultimate losses, as the estimated proportion of losses already incurred would be higher, and vice versa.

Management believes that the illustrated sensitivities are indicative of the materiality of these key actuarial assumptions to management’s best estimate of loss and loss adjustment expense reserves.

Management believes that the illustrated sensitivities are indicative of the materiality of these key actuarial assumptions to management’s best estimate of losses and loss adjustment expense reserves.

The degree of stress applied to the expected loss ratio and loss development patterns were selected to be illustrative, and should not be considered to be "best case" or "worst case" for these assumptions.

As such, it is important to recognize that future variations may be more or less than the amounts shown in the following table.

The effect of reasonably likely changes in the two key assumptions used to estimate the gross reserve for losses and loss adjustment expenses at December 31, 2023 was as follows:

The effect of reasonably likely changes in the two key assumptions used to estimate the gross reserve for losses and loss adjustment expenses was as follows:

($ in thousands) Sensitivity of Gross Reserve for Losses and Loss Adjustment Expenses

December 31, 2023

As at December 31, 2024

Assumptions Higher Expected Loss Ratios Slower Loss Development Patterns Lower

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Management actively monitors underlying insured values and any resulting premium adjustments are recognized in the period in which they are determined.

Gross premiums written on a fixed premium basis accounted for 30.2%, 28.6% and 29.7% of the Company’s gross premiums written for the years ended December 31, 2023 and 2022, and November 30, 2021, respectively.

Gross premiums written on a fixed premium basis accounted for 26.9%, 30.2% and 28.6% of the Company’s gross premiums written for the years ended December 31, 2024, 2023 and 2022, respectively.

Some of this business is written through MGAs, third parties granted authority to bind risks on the Company’s behalf in accordance with defined underwriting guidelines.

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Management reviews these premium estimates on a quarterly basis and any premium estimate adjustments are recognized in the period in which they are determined.

Gross premiums written on a line slip or proportional basis accounted for 26.8%, 28.4% and 27.1% of the Company’s gross premiums written for the years ended December 31, 2023 and 2022, and November 30, 2021, respectively.

Gross premiums written on a line slip or proportional basis accounted for 25.8%, 26.8% and 28.4% of the Company’s gross premiums written for the years ended December 31, 2024, 2023 and 2022, respectively.

The Company’s reinsurance business, which comprises 47% of total gross premiums written, generally provides cover to cedants on an excess of loss or on a proportional basis.

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Changes in premium estimates could also be material to net premiums earned in the period in which they are determined as any adjustment may be substantially or fully earned.

Gross premiums written for proportional reinsurance contracts, including adjustments to premium estimates established in prior years, accounted for 20.7%, 19.0% and 18.1% of the Company’s gross premiums written for the years ended December 31, 2023 and 2022, and November 30, 2021, respectively.

Gross premiums written for proportional reinsurance contracts, including adjustments to premium estimates established in prior years, accounted for 24.4%, 20.7% and 19.0% of the Company’s gross premiums written for the years ended December 31, 2024, 2023 and 2022, respectively.

For excess of loss reinsurance contracts, the Company is typically exposed to loss events in excess of a predetermined dollar amount or loss ratio and receives a fixed or an initial minimum deposit premium.

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Any adjustments to minimum or deposit premiums are recognized in the period in which they are determined.

Gross premiums written for excess of loss reinsurance contracts accounted for 22.3%, 24.0% and 25.1% of the Company’s gross premiums written for the years ended December 31, 2023 and 2022, and November 30, 2021, respectively.

Gross premiums written for excess of loss reinsurance contracts accounted for 22.9%, 22.3% and 24.0% of the Company’s gross premiums written for the years ended December 31, 2024, 2023 and 2022, respectively.

Many of the Company’s excess of loss reinsurance contracts also include provisions for automatic reinstatement of coverage in the event of a loss that has exhausted the initial amount of cover provided.

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In the normal course of business, the Company seeks to reduce the potential amount of loss arising from claim events by reinsuring certain levels of risk with other reinsurers.

On a consolidated basis, reinsurance premiums ceded represented 24.1%, 25.8% and 25.0% of gross premiums written for the years ended December 31, 2023 and 2022, and November 30, 2021, respectively.

On a consolidated basis, reinsurance premiums ceded represented 20.7%, 24.1% and 25.8% of gross premiums written for the years ended December 31, 2024, 2023 and 2022, respectively.

Ceded reinsurance contracts do not relieve the Company of its primary obligation to policyholders.

In the event that the Company’s reinsurers are unable to meet their obligations under these reinsurance agreements or are able to successfully challenge losses ceded by the Company under the contracts, the Company will not be able to realize the full value of the unpaid losses and loss adjustment expense recoverable balance and will be liable for such defaulted amounts.

In the event that the Company’s reinsurers are unable to meet their obligations under these reinsurance agreements or are able to successfully challenge losses ceded by the Company under the contracts, the Company will not be able to realize the full value of the unpaid losses and loss adjustment expenses recoverable balance and will be liable for such defaulted amounts.

The Company enters into proportional or quota share treaties, whereby the Company cedes a portion of its premiums and losses related to a certain class or classes of business to a reinsurer, and into excess of loss or facultative reinsurance agreements, whereby the Company is reinsured for a specific event or exposure, often for amounts in excess of a predetermined dollar amount.

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Consequently, cumulative adverse development subsequent to the signing of the LPT may result in significant losses from operations until periods when the deferred gain is recognized as a benefit to earnings.

In December 2020, Hamilton Group sponsored an industry loss index-triggered catastrophe bond through the issuance of Series 2020-1 Class A Principal-at-Risk Variable Rate Notes by Singapore-domiciled Easton Re Pte, Ltd.

(“Easton Re”), which provided the Company's operating platforms with multi-year risk transfer capacity of $150 million to protect against named storm and earthquake risk in the United States.

The risk period for Easton Re was from January 1, 2021 to December 31, 2023.

The Company recorded reinsurance premiums ceded of $7.2 million, $6.3 million and $7.8 million during the years ended December 31, 2023 and 2022, and the year ended November 30, 2021, respectively.

In December 2023, Hamilton Group sponsored a new industry loss index-triggered catastrophe bond through the issuance of Series 2024-1 Class A Principal-at-Risk Variable Rate Notes by Bermuda-domiciled Easton Re Ltd.

(also “Easton Re”), which provide the Company's operating platforms with multi-year risk transfer capacity of $200 million to protect against named storm risk in the United States and earthquake risk in the United States and Canada.

("Easton Re"), which provide the Company's operating platforms with multi-year risk transfer capacity of $200 million to protect against named storm risk in the United States and earthquake risk in the United States and Canada.

The risk period for Easton Re is from January 1, 2024 to December 31, 2026.

See Note 1, Organization for further details.

Estimation methodology

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Fixed maturity and short-term investments trading portfolio

The Company elects the fair value option for all of the fixed maturity securities and short-term investments in its trading portfolio and certain other investments and recognizes the changes in net realized and unrealized gains (losses) on investments in its consolidated statements of operations.

The Company elects the fair value option for its fixed maturities and short-term investments trading portfolio and certain other investments and recognizes the changes in net realized and unrealized gains (losses) on investments in its consolidated statements of operations.

The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the "exit price").

Instruments that the Company owns are marked to bid prices.

Fair value measurements are not adjusted for transaction costs.

Fair value measurement accounting guidance also establishes a fair value hierarchy that prioritizes the inputs to the respective valuation techniques used to measure fair value.

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The three levels of the fair value hierarchy are:

• Level 1 – inputs that reflect unadjusted quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date;

• Level 1 - Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date;

• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active;

• Level 3 - Inputs that are both significant to the fair value measurement and unobservable.

The Company’s fixed maturity and short-term investments trading portfolio are primarily priced using pricing services, such as index providers and pricing vendors, as well as broker quotations.

The Company’s fixed maturities and short-term investments trading portfolio is primarily priced using pricing services, such as index providers and pricing vendors, as well as broker quotations.

In general, the pricing vendors provide pricing for a high volume of liquid securities that are actively traded.

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Securities which are priced by an index provider are generally included in the index.

In general, broker-dealers value

securities through their trading desks based on observable inputs.

In general, broker-dealers value securities through their trading desks based on observable inputs.

The methodologies used include mapping securities based on trade data, bids or offers, observed spreads, and performance on newly issued securities.

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All of the Company’s fixed maturities and short-term investments in its trading portfolio are considered to be valued using Level 2 inputs in the fair value hierarchy.

See Note 4, Fair Value in our audited consolidated financial statements for further detail.

Change in Financial Year

On January 17, 2022, the Company changed its fiscal year from November 30 to December 31.

References to the current year in this document refer to the calendar year ended December 31, 2023.

As a result, our comparative prior periods consist of the twelve month period from January 1, 2022 to December 31, 2022, the one-month transition period ended December 31, 2021, and the twelve month period from December 1, 2020 to November 30, 2021.

The one month transition period ended December 31, 2021 and the comparative one month period ended December 31, 2020 are presented in our results of operations tables under the header Change in Financial Year - Stub Period Results .

See Note 4, Fair Value in the accompanying audited consolidated financial statements for further detail.

Consolidated Results of Operations

The following is a comparison of selected data for our consolidated results of operations for the years ended December 31, 2023 and 2022, and November 30, 2021 and book value per share and balance sheet data as at December 31, 2023 and 2022 and November 30, 2021.

For the Years Ended

($ in thousands, except per share amounts) December 31, 2023 December 31, 2022 November 30, 2021

The following is a comparison of selected data for our consolidated results of operations:

For the Years Ended December 31,

($ in thousands, except per share amounts) 2024 2023 2022

Gross premiums written $ 2,422,582 $ 1,951,038 $ 1,646,673

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574,674 240,066 71,861

Net gain on sale of equity method investment 211 6,991 54,557

Other income (loss), excluding third party fee income (1)

397 (315) (11)

Net foreign exchange gains (losses) (3,231) (6,185) 6,137

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Return on average common shareholders' equity 18.3 % 13.9 % (5.7) %

Book Value December 31, 2023 December 31, 2022 November 30, 2021

The following table summarizes book value per share and balance sheet data:

As at December 31,

Book Value 2024 2023 2022

Tangible book value per common share $ 22.03 $ 17.75 $ 15.30

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(1) Third party fee income is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K.

The reconciliation to other income (loss), the most comparable GAAP financial measure, also included other income (loss), excluding third party fee income of $0.4 million, $(0.3) million and less than $0.1 million for the years ended December 31, 2023 and 2022, and November 30, 2021, respectively.

Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measures' for further details.

(2) Other underwriting expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K.

The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $76.7 million, $20.1 million, and $22.5 million for the years ended December 31, 2023 and 2022, and November 30, 2021, respectively.

The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $61.1 million, $76.7 million, and $20.1 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measures' for further details.

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Operating Highlights

The following significant items impacted the consolidated results of operations for the years ended December 31, 2023 and 2022 and November 30, 2021:

Gross Premiums Written

Gross premiums written were $2.0 billion, $1.6 billion and $1.4 billion for the years ended December 31, 2023 and 2022 and November 30, 2021, respectively.

The increase in gross premiums written in each successive year was primarily driven by expansion into additional classes, notably casualty reinsurance and specialty insurance, increased participation on existing business and rate increases across multiple classes of business.

Underwriting results

The combined ratio was 90.1% and 102.8% for the years ended December 31, 2023 and 2022, respectively.

The decrease was primarily driven by lower catastrophe losses as described further below under Losses and Loss Adjustment Expenses .

The decrease in the combined ratio from 106.0% for the year ended November 30, 2021 to 102.8% for the year ended December 31, 2022 was primarily driven by a lower percentage contribution from catastrophe losses as described further below under Losses and Loss Adjustment Expenses, and a decrease in our other underwriting expense ratio.

The following significant items impacted the consolidated results of operations for the years ended December 31, 2024, 2023 and 2022:

Gross premiums written Gross premiums written were $2.4 billion, $2.0 billion and $1.6 billion for the years ended December 31, 2024, 2023 and 2022, respectively.

The increase in gross premiums written for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily driven by our casualty reinsurance, property reinsurance, specialty reinsurance and casualty insurance business.

The growth was a result of new business, increased participations on existing business and a strong rate environment across multiple classes of business.

The increase in gross premiums written for the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily driven by expansion into additional classes, notably casualty reinsurance and specialty insurance, increased participation on existing business and rate increases across multiple classes of business.

Underwriting results The combined ratio was 91.3% and 90.1% for the years ended December 31, 2024 and 2023, respectively.

The modest increase was driven by an increase in the catastrophe loss ratio and attritional loss ratio, partially offset by a decrease in the other underwriting expense ratio and acquisition cost ratio.

The decrease in the combined ratio from 102.8% for the year ended December 31, 2022 to 90.1% for the year ended December 31, 2023 was driven by lower catastrophe losses as described further below under Losses and Loss Adjustment Expenses .

Losses and Loss Adjustment Expenses

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Total $ 730,220 55.4 % $ (15,617) (1.2) % $ 714,603 54.2 %

November 30, 2021

December 31, 2022

Attritional losses $ 592,676 51.8 % $ (3,216) (0.3) % $ 589,460 51.5 %

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Attritional loss ratio - current year for the year ended December 31, 2024 was 53.1%, compared to 52.2% for the year ended December 31, 2023, an increase of 0.9 percentage points.

The modest increase is attributable to certain large loss events in our specialty classes impacting both our International and Bermuda segments.

The attritional loss ratio - current year for the year ended December 31, 2022 was 51.8% compared to 51.1% for the year ended November 30, 2021, an increase of 0.7 percentage points.

The increase is largely attributable to changes in business mix during 2022.

Attritional loss ratio - prior year for the year ended December 31, 2023 was a favorable 0.8% compared to a favorable 0.3% for the year ended December 31, 2022, a decrease of 0.5 percentage points.

The decrease was primarily driven by favorable prior year development in both the Bermuda and International specialty classes and International property classes, partially offset by unfavorable development in Bermuda property classes and casualty classes in both our Bermuda and International segments.

The increase was primarily driven by losses of $37.9 million, or 2.2 points, arising from the Francis Scott Key Baltimore Bridge collapse, which impacted our insurance and reinsurance classes in both our International and Bermuda segments.

The attritional loss ratio - current year for the year ended December 31, 2023 was 52.2% compared to 51.8% for the year ended December 31, 2022, an increase of 0.4 percentage points.

The modest increase was attributable to certain large loss events in our specialty classes impacting both our International and Bermuda segments.

Attritional loss ratio - prior year for the year ended December 31, 2024 was flat at 0.0%, compared to a favorable 0.8% for the year ended December 31, 2023, an increase of 0.8 percentage points.

The increase was primarily driven by unfavorable development in both International and Bermuda casualty and specialty classes, largely offset by favorable development in both International and Bermuda property classes.

In addition, casualty business protected by the LPT discussed in Note 7, Reinsurance , benefited from favorable development in the underlying reserves of $15.3 million, which was partially offset by a change in the deferred gain of $9.4 million, for a total net positive earnings impact of $5.9 million.

The attritional loss ratio - prior year for the year ended December 31, 2023 was a favorable 0.8% compared to a favorable 0.3% for the year ended December 31, 2022, a decrease of 0.5 percentage points.

The decrease was primarily driven by favorable development in both the Bermuda and International specialty classes and International property classes, partially offset by unfavorable development in Bermuda property classes and casualty classes in both our Bermuda and International segments.

In addition, casualty business protected by the LPT benefited from $4.2 million in amortization of the associated deferred gain and favorable development in the underlying reserves of $0.8 million, for a total net positive earnings impact of $5.0 million.

The attritional loss ratio - prior year for the year ended December 31, 2022 was a favorable 0.3% compared to a favorable 0.9% for the year ended November 30, 2021, an increase of 0.6 percentage points.

The increase was primarily driven by unfavorable prior year development in discontinued casualty classes in the Bermuda segment, partially offset by favorable development across all classes of business in the International segment.

In addition, casualty business protected by the LPT benefited from favorable development of $5.1 million and $1.9 million in amortization of the associated deferred gain, for a total net positive earnings impact of $7.0 million.

See Note 8, Reinsurance , in our audited consolidated financial statements for further discussion of the LPT.

Impact of catastrophe events Catastrophe losses - current and prior year development were $36.9 million, $168.9 million and $167.4 million for the years ended December 31, 2023 and 2022 and November 30, 2021, respectively.

See Note 7, Reinsurance , in the accompanying audited consolidated financial statements for further discussion of the LPT.

Catastrophe losses - current and prior year development were $87.6 million, $36.9 million and $168.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Catastrophe losses for the year ended December 31, 2024 were driven by Hurricane Helene ($52.6 million), Hurricane Milton ($37.8 million), the Calgary hailstorms ($12.9 million), and Hurricane Debby ($5.6 million), partially offset by favorable prior year development of $21.3 million.

Catastrophe losses for the year ended December 31, 2023 were driven by the Hawaii wildfires ($12.0 million), the wind and thunderstorm events which impacted states in both the Southern and Midwest U.S.

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Catastrophe losses - current and prior year development for the year ended December 31, 2022 were driven by the Ukraine conflict ($79.6 million), Hurricane Ian ($77.5 million), Australian East Coast floods ($16.6 million), KwaZulu-Natal floods ($8.3 million), and Typhoon Nanmadol ($4.3 million), partially offset by favorable prior year development of $17.4 million.

Catastrophe losses - current and prior year development for the year ended November 30, 2021 were driven by Hurricane Ida ($67.9 million), the Bernd European floods ($38.1 million), Winter Storm Uri ($34.4 million), and COVID-19 ($7.1 million), in addition to unfavorable prior year development of $19.9 million.

Total Net Realized and Unrealized Gains (Losses) on Investments and Net Investment Income (Loss)

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - TSHF (1)

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(1) Prior to non-controlling interest performance incentive allocation

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - TSHF, prior to non-controlling interest, returned income of $143.7 million, $145.2 million and $327.0 million for the years ended December 31, 2023 and 2022, and November 30, 2021, respectively.

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - TSHF , prior to non-controlling interest, returned income of $487.2 million, $143.7 million and $145.2 million for the years ended December 31, 2024, 2023 and 2022, respectively.

This includes the fund's returns, net of investment management fees.

Net investment income, net of non-controlling interest - TSHF , net of non-controlling interest, returned income of $122.1 million, $77.2 million and $265.4 million for the years ended December 31, 2023 and 2022, and November 30, 2021, respectively.

This includes the fund's returns, net of investment management fees as well as performance incentive allocations.

The aggregate incentive allocation to which the investment manager is entitled is included in “Net income attributable to non-controlling interests” in our GAAP financial statements.

TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of 7.6%, 4.6% and 17.7% for each of the years ended December 31, 2023 and 2022, and November 30, 2021, respectively.

TS Hamilton Fund, through its investments in Two Sigma Futures Portfolio, LLC (FTV), Two Sigma Spectrum Portfolio, LLC (STV) and Two Sigma Equity Spectrum Portfolio, LLC (ESTV), (together, the “Two Sigma Funds”), seeks to achieve absolute dollar-denominated returns on a substantial capital base, primarily by combining multiple hedged and leveraged systematic investment strategies with proprietary risk management and execution techniques.

These systematic strategies include, but are not limited to, technical and statistically-based, fundamental-based, event-based, market condition-based and spread-based strategies as well as contributor-based and/or sentiment-based strategies and blended strategies.

FTV primarily utilizes systematic strategies to gain broad macro exposure to FX, fixed income, equity and credit indices and commodities, predominantly by trading futures, spots, forwards, options, swaps, cash bonds and exchange traded products.

STV primarily utilizes systematic strategies to trade U.S.-listed equity securities and related instruments and derivatives.

ESTV primarily utilizes systematic strategies to trade non-U.S.-listed equity securities and related instruments and derivatives.

Net investment income, net of non-controlling interest - TSHF , returned income of $274.5 million, $122.1 million and $77.2 million for the years ended December 31, 2024, 2023 and 2022, respectively.

This includes the fund's returns, net of investment management fees and performance incentive allocations.

The aggregate incentive allocation to which the investment manager is entitled is included in "Net income (loss) attributable to non-controlling interests" in our GAAP financial statements.

TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of 16.3%, 7.6% and 4.6% for the years ended December 31, 2024, 2023 and 2022, respectively.

For the year ended December 31, 2024, gains in TS Hamilton Fund were led by single name U.S.

equities trading in STV.

The TS Hamilton Fund also saw positive contributions to gains from non-U.S.

equities trading in ESTV.

In ESTV, gains were experienced in all underlying regions.

The TS Hamilton Fund also experienced gains from macroeconomic trading in FTV.

In FTV, gains were led by equities, credit, and fixed income.

For the year ended December 31, 2023, TS Hamilton Fund generated positive returns in single name equities trading in STV and ESTV, partially offset by losses in macroeconomic trading in FTV.

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In macroeconomic activities, FTV generated positive results in equities trading, partially offset by losses from fixed income trading, commodities trading, and currencies trading.

For the year ended November 30, 2021, TS Hamilton Fund generated positive returns in each of the three underlying Two Sigma Funds.

Gains were led by trading in FTV, followed by U.S.

single name equities in STV, and then non-U.S.

equities in ESTV.

In FTV, positive returns were generated in commodities and equities trading, partially offset by losses in currencies and fixed income.

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other returned income of $96.2 million and a loss of $80.4 million and $18.1 million for the years ended December 31, 2023 and 2022, and November 30, 2021, respectively.

This is primarily comprised of returns on our fixed maturity securities trading portfolio.

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other returned income of $87.5 million and $96.4 million and a loss of $73.4 million for the years ended December 31, 2024, 2023 and 2022, respectively.

During the year ended December 31, 2024, the fixed maturity securities trading portfolio produced positive returns as the result of investment yield, partially offset by unrealized losses, primarily arising from U.S.

treasury interest rate increases.

During the year ended December 31, 2023, the fixed maturity securities trading portfolio produced positive returns as the rate of rising interest rates slowed and reinvested funds generated higher yields.

During the year ended December 31, 2022, the negative mark-to-market impact of rising interest rates and other macroeconomic factors offset investment yield, giving rise to non-credit related net investment losses.

During the year ended November 30, 2021, the fixed maturity securities trading portfolio also experienced net losses due to the negative mark-to-market impact of rising interest rates.

The year ended November 30, 2021 was also negatively impacted by a loss on equity method investment of $7.3 million related to our interest in Attune, recorded under the equity method of accounting, prior to its sale on September 20, 2021.

Net gain on sale of equity method investment On September 20, 2021, a purchaser acquired Attune, a joint venture in which the Company had a one-third interest.

Proceeds of sale were settled on closing, and the net gain on sale of equity method investment of $54.6 million was recorded in the statement of operations for year ended November 30, 2021.

In the years ended December 31, 2023 and 2022, escrow funds of $0.2 million and $7.0 million were received and recorded in the statement of operations, recognizing an incremental net gain on sale of equity method investment relating to the same transaction.

Impairment of goodwill

In the years ended December 31, 2023, December 31, 2022 and November 30, 2021, the Company recorded impairment charges of $Nil, $24.1 million and $0.9 million, respectively, primarily arising from the annual goodwill impairment assessment.

As at each of December 31, 2023 and 2022, there was $Nil goodwill on the balance sheet.

During the year ended December 31, 2022, the negative mark-to-market impact of rising U.S.

treasury interest rates and other macroeconomic factors offset investment yield, giving rise to non-credit related net investment losses.

Segment Information

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We have identified two reportable business segments - International and Bermuda.

Each of our identified reportable segments has a Chief Executive Officer who is responsible for the overall profitability of their segment and who regularly reports and is directly accountable to the chief operating decision maker:

the Chief Executive Officer of the consolidated group.

We evaluate reportable segment performance based on their respective underwriting income or loss.

The CODM's responsibilities include providing leadership to all levels of employees;

developing culture, values, and ethos;

setting the Company's strategy, vision and direction;

and overall responsibility for the success and profitability of the Company, including evaluating segment performance.

The CODM evaluates reportable segment performance based on the segment's respective underwriting income or loss.

Underwriting income or loss is calculated as net premiums earned less losses and loss adjustment expenses, acquisition costs, and other underwriting expenses, net of third party fee income.

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We consider many factors, including the nature of each segment’s products, client types, production sources, distribution methods and the regulatory environment, in determining the aggregated operating segments.

Corporate includes net realized and unrealized gains (losses) on investments, net investment income (loss), net gain on sale of equity method investment, other income (loss) not incurred by the reportable segments, net foreign exchange gains (losses), general and administrative expenses not incurred by the reportable segments, impairment of goodwill, amortization of intangible assets, interest expense, and income tax expense (benefit).

Corporate includes net realized and unrealized gains (losses) on investments, net investment income (loss), other income (loss) not incurred by the reportable segments, net foreign exchange gains (losses), general and administrative expenses not incurred by the reportable segments, impairment of goodwill, amortization of intangible assets, interest expense, and income tax expense (benefit).

International Segment

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Gross premiums written $ 1,308,460 $ 1,105,522 $ 933,241

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Gross Premiums Written

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Property $ 190,369 $ 134,450 $ 127,424

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Total $ 1,308,460 $ 1,105,522 $ 933,241

For the year ended December 31, 2023, gross premiums written increased by $172.3 million, or 18.5%, from $933.2 million for the year ended December 31, 2022 to $1.1 billion for the year ended December 31, 2023, primarily driven by growth and improved pricing across specialty insurance classes of business, with additional contributions from growth in casualty insurance and specialty reinsurance classes and hardening rates on property insurance classes.

For the year ended December 31, 2022, gross premiums written increased by $40.9 million, or 4.6%, from $892.3 million for the year ended November 30, 2021 to $933.2 million for the year ended December 31, 2022, primarily driven by growth and improved pricing across most casualty and specialty insurance classes of business.

This was partially offset by decreases in property reinsurance classes of business as a result of strategic withdrawals.

Gross premiums written increased by $202.9 million, or 18.4%, from $1.1 billion for the year ended December 31, 2023 to $1.3 billion for the year ended December 31, 2024, primarily driven by growth in both new and existing business and improved pricing in casualty and property insurance classes and specialty reinsurance and insurance classes.

Gross premiums written increased by $172.3 million, or 18.5%, from $933.2 million for the year ended December 31, 2022 to $1.1 billion for the year ended December 31, 2023, primarily driven by growth and improved pricing across specialty insurance classes, with additional contributions from growth in casualty insurance and specialty reinsurance classes and hardening rates on property insurance classes.

Net Premiums Earned

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Property $ 149,318 $ 104,789 $ 111,134

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Total $ 886,934 $ 703,508 $ 623,047

For the year ended December 31, 2023, net premiums earned increased by $80.5 million, or 12.9%, from $623.0 million for the year ended December 31, 2022 to $703.5 million for the year ended December 31, 2023, reflecting growth in our specialty insurance business, primarily as the result of increases in political risks and political violence from our war and terror product, as well as growth in marine and personal accident lines, and growth in our casualty insurance business, including professional lines.

For the year ended December 31, 2022, net premiums earned increased by $65.9 million, or 11.8%, from $557.1 million for the year ended November 30, 2021 to $623.0 million for the year ended December 31, 2022, reflecting growth in net premiums written on our casualty business, particularly for environmental and cyber books of business.

We also saw growth in our specialty business driven by growth in fine art & specie and marine & energy books.

This was partially offset by a decrease in our property reinsurance classes of business as a result of strategic withdrawals.

Net premiums earned increased by $183.4 million, or 26.1%, from $703.5 million for the year ended December 31, 2023 to $886.9 million for the year ended December 31, 2024.

The increase was driven by growth in our specialty, casualty and property insurance classes, in addition to growth in the specialty reinsurance class.

Specialty insurance growth was primarily driven by accident & health, fine art & specie, political violence, and marine & energy;

casualty insurance growth was primarily driven by U.S.

excess and surplus lines, professional lines, and cyber, partially offset by a decrease in mergers & acquisitions;

property insurance growth was primarily driven by property binders and D&F;

and specialty reinsurance growth was primarily driven by surety reinsurance and treaty reinsurance.

Net premiums earned increased by $80.5 million, or 12.9%, from $623.0 million for the year ended December 31, 2022 to $703.5 million for the year ended December 31, 2023, reflecting growth in our specialty insurance business, primarily as the result of increases in political risks and political violence from our war and terror product, as well as growth in marine and personal accident lines, and growth in our casualty insurance business, including professional lines.

Third Party Fee Income

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Third party fee income $ 16,317 $ 9,685 $ 11,430

Fee income of $9.7 million for the year ended December 31, 2023 decreased by $1.7 million, or 15.3%, compared to $11.4 million for the year ended December 31, 2022.

Third party fee income increased by $6.6 million, or 68.5%, from $9.7 million for the year ended December 31, 2023 to $16.3 million for the year ended December 31, 2024.

The increase was primarily due to favorable terms of a renewed syndicate management arrangement and an increase in consortium fees.

Third party fee income decreased by $1.7 million or 15.3%, from $11.4 million for the year ended December 31, 2022 to $9.7 million for the year ended December 31, 2023.

The decrease was primarily driven by a reduction in the number of third party syndicates under management and the discontinuation of certain consortium arrangements.

Fee income of $11.4 million for the year ended December 31, 2022 decreased by $9.2 million, or 44.7%, compared to $20.7 million for the year ended November 30, 2021.

The decrease was primarily comprised of $3.7 million related to a reduction in the number of third party syndicates under management, $1.4 million related to a decrease in consortium fees and an aggregate decrease of $4.7 million in one-off or discontinued fees relating to projects with a finite term.

Losses and Loss Adjustment Expenses

9 unchanged sentences

Total $ 384,635 54.7 % $ (22,498) (3.2) % $ 362,137 51.5 %

November 30, 2021

December 31, 2022

Attritional losses $ 317,199 50.9 % $ (29,800) (4.8) % $ 287,399 46.1 %

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Year Ended December 31, 2024 versus Year Ended December 31, 2023

The loss ratio for the year ended December 31, 2024 was 56.2%, compared to 51.5% for the year ended December 31, 2023, an increase of 4.7 percentage points.

The increase was primarily driven by higher current year catastrophe and attritional losses and a lower contribution from favorable prior year development.

Attritional loss ratio - current year for the year ended December 31, 2024 was 53.5% compared to 53.2% for the year ended December 31, 2023, an increase of 0.3 percentage points.

The increase was primarily driven by losses of $11.8 million, or 1.3 points, arising from the Baltimore Bridge collapse.

Attritional loss ratio - prior year for the year ended December 31, 2024 was a favorable 0.4% compared to a favorable 3.5% for the year ended December 31, 2023, an increase of 3.1 percentage points.

The favorable attritional loss ratio - prior year for the year ended December 31, 2024 was primarily driven by favorable development in our property insurance and reinsurance classes, partially offset by unfavorable development in specialty insurance classes, impacted by two large losses, and casualty insurance, impacted by one specific large loss.

Catastrophe losses - current year and prior year of $26.7 million for the year ended December 31, 2024 were driven by Hurricane Helene ($19.6 million), Hurricane Milton ($12.8 million), and Hurricane Debby ($1.5 million), partially offset by favorable prior year development of $7.2 million.

Catastrophe losses - current year and prior year of $12.6 million for the year ended December 31, 2023 were driven by the Vermont floods ($4.5 million), Hurricane Idalia ($2.9 million), Hawaii wildfires ($2.8 million), and other wind events ($0.5 million), in addition to unfavorable prior year development of $1.9 million.

Year Ended December 31, 2023 versus Year Ended December 31, 2022

The loss ratio for the year ended December 31, 2023 was 51.5%, compared to 53.8% for the year ended December 31, 2022, a decrease of 2.3 percentage points.

The decrease was primarily driven by a lower level of catastrophe losses in the current year.

The attritional loss ratio - current year for the year ended December 31, 2023 was 53.2% compared to 50.9% for the year ended December 31, 2022, an increase of 2.3 percentage points.

The decrease was primarily driven by a lower level of catastrophe losses for the year ended December 31, 2023.

Attritional loss ratio - current year for the year ended December 31, 2023 was 53.2% compared to 50.9% for the year ended December 31, 2022, an increase of 2.3 percentage points.

The increase in the current year attritional loss ratio primarily arose from three specific large losses in our specialty classes compared to fewer comparable events in the prior year.

The attritional loss ratio - prior year for the year ended December 31, 2023 was a favorable 3.5% compared to a favorable 4.8% for the year ended December 31, 2022, an increase of 1.3 percentage points.

We experienced favorable prior year development for the year ended December 31, 2023 of $24.4 million, primarily driven by property and specialty lines.

Attritional loss ratio - prior year for the year ended December 31, 2023 was a favorable 3.5% compared to a favorable 4.8% for the year ended December 31, 2022, an increase of 1.3 percentage points.

We experienced favorable prior year development for the year ended December 31, 2023 of $24.4 million, primarily driven by property and specialty classes.

This compared to favorable prior year development for the year ended December 31, 2022 of $29.8 million across most classes of business.

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Catastrophe losses - current year and prior year of $48.1 million for the year ended December 31, 2022 were primarily driven by the Ukraine conflict ($22.5 million), Hurricane Ian ($15.3 million), the KwaZulu-Natal floods ($4.6 million), and the Australian East Coast floods ($2.7 million), in addition to unfavorable prior year development of $3.0 million.

Year Ended December 31, 2022 versus Year Ended November 30, 2021

The loss ratio for the year ended December 31, 2022 was 53.8%, compared to 63.3% for the year ended November 30, 2021, a decrease of 9.5 percentage points.

The decrease was driven by favorable prior year development on attritional losses and a lower level of catastrophe losses.

The attritional loss ratio - current year for the year ended December 31, 2022 was 50.9% compared to 50.4% for the year ended November 30, 2021, an increase of 0.5 percentage points.

The modest increase in the current year attritional loss ratio primarily arose from changes in business mix.

The attritional loss ratio - prior year for the year ended December 31, 2022 was a favorable 4.8% compared to an unfavorable 0.1% for the year ended November 30, 2021, a decrease of 4.9 percentage points.

We experienced favorable prior year development for the year ended December 31, 2022 of $29.8 million across most classes of business.

This compared to unfavorable prior year development for the year ended November 30, 2021 of $0.7 million, primarily driven by casualty business protected by the LPT, which experienced unfavorable development of $32.6 million, partially offset by $18.0 million in amortization of the associated deferred gain (for a total net negative earnings impact of $14.6 million) and favorable prior year development on the remainder of the book of business.

See Note 8, Reinsurance , in our audited consolidated financial statements for further discussion of the LPT.

Catastrophe losses - current year and prior year development of $71.3 million for the year ended November 30, 2021 were primarily driven by Hurricane Ida ($32.3 million), Winter Storm Uri ($13.5 million), COVID-19 ($7.1 million), and the Bernd European Floods ($6.4 million), in addition to unfavorable prior year development of $11.9 million.

Acquisition Costs

($ in thousands) For the Years Ended

Acquisition Costs % of Net Premiums Earned

December 31, 2023 December 31, 2022 November 30, 2021 December 31, 2023 December 31, 2022 November 30, 2021 '23 vs '22

($ in thousands) Acquisition Costs % of Net Premiums Earned

For the Years Ended December 31, For the Years Ended December 31,

2024 2023 2022 2024 2023 2022 '24 vs '23

Property $ 48,623 $ 34,968 $ 39,606 32.6% 33.4% 35.6% (0.8) (2.2)

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Total $ 216,971 $ 186,698 $ 170,571 24.5% 26.5% 27.4% (2.0) (0.9)

For the year ended December 31, 2023, the acquisition cost ratio was 26.5%, compared to 27.4% for the year ended December 31, 2022, a decrease of 0.9 percentage points.

The decrease was primarily driven by higher volumes of business written in casualty insurance and property insurance lines that benefit from favorable overriding commission offset or lower acquisition costs, and other changes in the business mix.

For the year ended December 31, 2022, the acquisition cost ratio was 27.4% compared to 27.8% for the year ended November 30, 2021, a decrease of 0.4 percentage points.

The modest decrease was primarily driven by changes in the mix of business.

The acquisition cost ratio for the year ended December 31, 2024 was 24.5%, compared to 26.5% for the year ended December 31, 2023, a decrease of 2.0 percentage points.

The decrease was primarily driven by specialty, casualty and property insurance classes as a result of a change in business mix, reduced profit commission costs and favorable ceded commission income.

The acquisition cost ratio for the year ended December 31, 2023 was 26.5% compared to 27.4% for the year ended December 31, 2022, a decrease of 0.9 percentage points.

The decrease was primarily driven by higher volumes of business written in casualty insurance and property insurance classes that benefit from favorable overriding commission offset or lower acquisition costs, and other changes in the business mix.

Other Underwriting Expenses and Other Underwriting Expense Ratios

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Other underwriting expenses $ 148,824 $ 127,402 $ 108,239

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Other underwriting expenses were $148.8 million for the year ended December 31, 2024, an increase of $21.4 million, or 16.8%, compared to $127.4 million for the year ended December 31, 2023.

The increase was primarily driven by increases in headcount as we continued to build out underwriting teams supporting the corresponding increase in premium volume, and certain growth related professional and IT costs.

Other underwriting expenses were $127.4 million for the year ended December 31, 2023, an increase of $19.2 million, or 17.7%, compared to $108.2 million for the year ended December 31, 2022.

The increase was primarily driven by increases in headcount as we built out underwriting teams supporting the corresponding increase in premium volume and certain variable performance based compensation costs.

Other underwriting expenses were $108.2 million for the year ended December 31, 2022, a decrease of $3.8 million, or 3.4%, compared to $112.1 million for the year ended November 30, 2021.

The decrease was primarily driven by a reduction in professional service fees and technology costs related to systems implementation and integration, as consulting fees declined with the completion of various projects.

The other underwriting expense ratios for the years ended December 31, 2023 and 2022, and the year ended November 30, 2021, remained stable over the same period at 16.7%, 15.5% and 16.4% respectively, as a result of the growth in our premium base.

The other underwriting expense ratios for the years ended December 31, 2024, 2023 and 2022 remained stable over the same period at 14.9%, 16.7% and 15.5%, respectively, as a result of the growth in our premium base.

Bermuda Segment

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Gross premiums written $ 1,114,122 $ 845,516 $ 713,432

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Gross Premiums Written

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Property $ 423,747 $ 318,297 $ 309,051

2 unchanged sentences

Total $ 1,114,122 $ 845,516 $ 713,432

For the year ended December 31, 2023, gross premiums written increased by $132.1 million, or 18.5%, from $713.4 million for the year ended December 31, 2022 to $845.5 million for the year ended December 31, 2023.

Gross premiums written increased by $268.6 million, or 31.8%, from $845.5 million for the year ended December 31, 2023 to $1.1 billion for the year ended December 31, 2024.

The increase was primarily driven by new business, expanded participations and rate increases in casualty and property reinsurance classes.

Specialty reinsurance also increased, primarily driven by new business and non-recurring reinstatement premiums.

Gross premiums written increased by $132.1 million or 18.5% from $713.4 million for the year ended December 31, 2022 to $845.5 million for the year ended December 31, 2023.

The increase was driven by new business, volume growth and rate increases in casualty reinsurance and property insurance classes of business, partially offset by non-recurring specialty reinsurance reinstatement premiums recorded in the prior year and the strategic decision to exit certain property reinsurance business.

For the year ended December 31, 2022, gross premiums written increased by $159.2 million or 28.7% from $554.3 million for the year ended November 30, 2021 to $713.4 million for the year ended December 31, 2022.

The increase was primarily driven by volume growth and rate increases in casualty reinsurance classes of business.

Net Premiums Earned

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Property $ 308,444 $ 220,659 $ 233,426

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Total $ 847,795 $ 615,025 $ 520,667

For the year ended December 31, 2023, net premiums earned increased by $94.4 million, or 18.1% from $520.7 million for the year ended December 31, 2022 to $615.0 million for the year ended December 31, 2023, reflecting growth in net premiums written in our casualty reinsurance classes, driven by continued growth across the majority of our casualty reinsurance classes, primarily general liability and professional liability.

Net premiums earned increased by $232.8 million, or 37.8% from $615.0 million for the year ended December 31, 2023 to $847.8 million for the year ended December 31, 2024, primarily driven by new business, volume growth and rate increases in our casualty and property reinsurance classes.

The most significant drivers of this increase were general liability, professional lines and property treaty and quota share classes.

Net premiums earned increased by $94.4 million, or 18.1%, from $520.7 million for the year ended December 31, 2022 to $615.0 million for the year ended December 31, 2023, reflecting growth in net premiums written in our casualty reinsurance classes, driven by continued growth across the majority of our casualty reinsurance classes, primarily general liability and professional liability.

This was partially offset by strategic withdrawals from certain property reinsurance classes of business and non-recurring reinstatement premiums recorded in the prior year.

For the year ended December 31, 2022, net premiums earned increased by $135.3 million, or 35.1%, from $385.4 million for the year ended November 30, 2021 to $520.7 million for the year ended December 31, 2022, reflecting increases in casualty reinsurance classes of business including professional liability, general liability and umbrella & excess casualty.

We also saw additional business and a hardening market in our property classes.

Third Party Fee Income

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Third party fee income (expense) $ 7,435 $ 8,549 $ 201

Fee income of $8.5 million for the year ended December 31, 2023 increased by $8.3 million, compared to $0.2 million for the year ended December 31, 2022 and $0.4 million for the year ended November 30, 2021.

The current year increase was primarily driven by certain performance based management fees recognized by Ada Capital Management Limited for services provided to Ada Re, Ltd.

Third party fee income of $7.4 million for the year ended December 31, 2024 decreased by $1.1 million or 13.0%, compared to $8.5 million for the year ended December 31, 2023 and was generated by certain performance based management fees recognized by Ada Capital Management Limited for services provided to Ada Re, Ltd.

Third party fee income of $8.5 million for the year ended December 31, 2023 increased by $8.3 million, compared to $0.2 million for the year ended December 31, 2022.

The increase was primarily driven by certain performance based management fees recognized by Ada Capital Management Limited for services provided to Ada Re, Ltd.

Losses and Loss Adjustment Expenses

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Total $ 345,585 56.2 % $ 6,881 1.1 % $ 352,466 57.3 %

November 30, 2021

December 31, 2022

Attritional losses $ 275,477 52.9 % $ 26,584 5.1 % $ 302,061 58.0 %

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Year Ended December 31, 2024 versus Year Ended December 31, 2023

The loss ratio for the year ended December 31, 2024 was 60.4%, compared to 57.3% for the year ended December 31, 2023, an increase of 3.1 percentage points.

The increase was primarily driven by both a higher current year catastrophe loss ratio and current year attritional loss ratio, partially offset by a favorable prior year development loss ratio.

Attritional loss ratio - current year for the year ended December 31, 2024 was 52.7% compared to 51.1% for the year ended December 31, 2023, an increase of 1.6 percentage points.

The increase was primarily driven by losses of $26.1 million, or 3.1 points, arising from the Baltimore Bridge collapse.

Attritional loss ratio - prior year for the year ended December 31, 2024 was an unfavorable 0.5% compared to an unfavorable 2.3% for the year ended December 31, 2023, a decrease of 1.8 percentage points.

The unfavorable attritional loss ratio - prior year for the year ended December 31, 2024 was primarily driven by unfavorable development in certain casualty reinsurance classes, partially offset by favorable development in property reinsurance and insurance classes.

This compared to unfavorable attritional loss prior year development for the year ended December 31, 2023 of $14.0 million, primarily driven by unfavorable development in property and casualty classes of business, partially offset by favorable development in specialty classes of business.

Catastrophe losses - current year and prior year of $60.9 million for the year ended December 31, 2024 were driven by Hurricane Helene ($33.0 million), Hurricane Milton ($25.0 million), the Calgary hailstorms ($12.9 million), and Hurricane Debby ($4.1 million), partially offset by favorable prior year development of $14.1 million.

Catastrophe losses - current year and prior year of $24.3 million for the year ended December 31, 2023 were primarily driven by wind and thunderstorm events which impacted states in both the Southern and Midwest U.S.

during March 2023 ($11.0 million), the Hawaii wildfires ($9.2 million), severe convective storms in June 2023 ($7.1 million), Hurricane Idalia ($3.6 million) and various flood events ($0.5 million), partially offset by favorable prior year development of $7.1 million.

Year Ended December 31, 2023 versus Year Ended December 31, 2022

The loss ratio for the year ended December 31, 2023 was 57.3%, compared to 81.2% for the year ended December 31, 2022, a decrease of 23.9 percentage points.

The decrease was primarily driven by a lower level of catastrophe losses in the current year.

The attritional loss ratio - current year for the year ended December 31, 2023 was 51.1% compared to 52.9% for the year ended December 31, 2022, a decrease of 1.8 percentage points.

The decrease in the current year attritional loss ratio was primarily driven by a generally lower level of current year attritional losses, partially offset by certain specific losses affecting casualty and property insurance and casualty and specialty reinsurance lines.

The attritional loss ratio - prior year for the year ended December 31, 2023 was an unfavorable 2.3% compared to an unfavorable 5.1% for the year ended December 31, 2022, a decrease of 2.8 percentage points.

We experienced unfavorable prior year development for the year ended December 31, 2023 of $14.0 million, primarily driven by unfavorable prior year reserve development in property and casualty classes of business, partially offset by favorable development in specialty classes of business.

This compared to unfavorable attritional loss prior year development for the year ended December 31, 2022 of $26.6 million, primarily driven by unfavorable prior year reserve development across discontinued casualty classes of business.

Attritional loss ratio - current year for the year ended December 31, 2023 was 51.1% compared to 52.9% for the year ended December 31, 2022, a decrease of 1.8 percentage points.

Attritional loss ratio - prior year for the year ended December 31, 2023 was an unfavorable 2.3% compared to an unfavorable 5.1% for the year ended December 31, 2022, a decrease of 2.8 percentage points.

We experienced unfavorable prior year development for the year ended December 31, 2023 of $14.0 million, primarily driven by unfavorable development in property and casualty classes of business, partially offset by favorable development in specialty classes of business.

This compared to unfavorable attritional loss prior year development for the year ended December 31, 2022 of $26.6 million, primarily driven by unfavorable development across discontinued casualty classes of business.

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Catastrophe losses - current year and prior year of $120.8 million for the year ended December 31, 2022 were primarily driven by Hurricane Ian ($62.2 million), the Ukraine conflict ($57.1 million), Australian East Coast floods ($13.9 million), Typhoon Nanmadol ($4.3 million) and KwaZulu-Natal floods ($3.7 million), partially offset by favorable prior year development of $20.4 million.

Year Ended December 31, 2022 versus Year Ended November 30, 2021

The loss ratio for the year ended December 31, 2022 was 81.2%, compared to 74.6% for the year ended November 30, 2021, an increase of 6.6 percentage points.

The increase was primarily driven by unfavorable attritional prior year development on discontinued classes of business.

The attritional loss ratio - current year for the year ended December 31, 2022 was 52.9% compared to 52.0% for the year ended November 30, 2021, an increase of 0.9 percentage points.

The modest increase in the current year attritional loss ratio primarily arose from a greater relative volume of casualty business, which has a relatively higher attritional loss ratio but lower volatility, compared to other classes of business.

The attritional loss ratio - prior year for the year ended December 31, 2022 was an unfavorable 5.1% compared to a favorable 2.3% for the year ended November 30, 2021, an increase of 7.4 percentage points.

We experienced unfavorable prior year development for the year ended December 31, 2022 of $26.6 million, primarily driven by unfavorable prior year reserve development across discontinued casualty classes of business.

This compared to favorable prior year attritional loss development for the year ended November 30, 2021 of $8.8 million, primarily driven by favorable prior year reserve development in specialty and property classes of business.

Catastrophe losses - current year and prior year of $96.1 million for the year ended November 30, 2021 were driven by Hurricane Ida ($35.6 million), the Bernd European floods ($31.7 million), and Winter Storm Uri ($20.9 million), in addition to unfavorable prior year development of $8.0 million.

Acquisition Costs

($ in thousands) For the Years Ended

Acquisition Costs % of Net Premiums Earned

December 31, 2023 December 31, 2022 November 30, 2021 December 31, 2023 December 31, 2022 November 30, 2021 '23 vs '22

For the Years Ended December 31, For the Years Ended December 31,

($ in thousands) 2024 2023 2022 2024 2023 2022 '24 vs '23

Property $ 38,896 $ 26,947 $ 36,686 12.6% 12.2% 15.7% 0.4 (3.5)

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Total $ 171,960 $ 122,450 $ 100,618 20.3% 19.9% 19.3% 0.4 0.6

For the year ended December 31, 2023, the acquisition cost ratio increased to 19.9%, compared to 19.3% for the year ended December 31, 2022, reflecting the impact of higher reinstatement premiums earned by specialty reinsurance lines in the prior period and a change in business mix in casualty insurance and reinsurance lines.

For the year ended December 31, 2022, the acquisition cost ratio remained flat at 19.3% compared to 19.3% for the year ended November 30, 2021, reflecting offsetting factors, such as a change in the mix of business and the impact of reinstatement premiums.

The acquisition cost ratio for the year ended December 31, 2024 increased to 20.3%, compared to 19.9% for the year ended December 31, 2023.

The modest increase was primarily driven by a change in the mix of business, including more proportional business written in our casualty reinsurance and property reinsurance classes.

The acquisition cost ratio for the year ended December 31, 2023 increased to 19.9%, compared to 19.3% for the year ended December 31, 2022, reflecting the impact of higher reinstatement premiums earned by specialty reinsurance classes in the prior period and a change in business mix in casualty insurance and reinsurance classes.

Other Underwriting Expenses and Other Underwriting Expense Ratios

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Other underwriting expenses $ 61,189 $ 55,763 $ 49,301

2 unchanged sentences

Other underwriting expenses were $61.2 million for the year ended December 31, 2024, an increase of $5.4 million, or 9.7%, compared to $55.8 million for the year ended December 31, 2023.

The increase was primarily driven by an increase in salary and compensation costs, an increased headcount as we continued to build out underwriting teams supporting the corresponding increase in premium volume, and professional fees.

Other underwriting expenses were $55.8 million for the year ended December 31, 2023, an increase of $6.5 million, or 13.1%, compared to $49.3 million for the year ended December 31, 2022.

The increase was primarily driven by increases in certain variable performance based compensation costs.

Other underwriting expenses were $49.3 million for the year ended December 31, 2022, an increase of $11.5 million, or 30.5%, compared to $37.8 million for the year ended November 30, 2021, primarily as a result of additional headcount supporting the increase in premium volume driven by our expansion into new classes of business.

The other underwriting expense ratios for the years ended December 31, 2023, December 31, 2022 and November 30, 2021 decreased over the same period at 7.7%, 9.4% and 9.7% as a result of the growth in premium base and our continued focus on expense management.

The other underwriting expense ratios for the years ended December 31, 2024, 2023 and 2022 decreased over the same period at 6.3%, 7.7% and 9.4% as a result of the growth in premium base and certain performance based management fees recognized by Ada Capital Management Limited for services provided to Ada Re, Ltd.

Corporate and Other

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The components of total net realized and unrealized gains (losses) on investments and net investment income (loss) are as follows:

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - TSHF (1)

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(1) Prior to non-controlling interest performance incentive allocation

This includes the fund's returns, net of investment management fees.

This includes the fund's returns, net of investment management fees as well as performance incentive allocations.

The aggregate incentive allocation to which the investment manager is entitled is included in “Net income attributable to non-controlling interests” in our GAAP financial statements.

Net investment income, net of non-controlling interest - TSHF , returned income of $274.5 million, $122.1 million and $77.2 million for the years ended December 31, 2024, 2023 and 2022, respectively.

This includes the fund's returns, net of investment management fees and performance incentive allocations.

The aggregate incentive allocation to which the investment manager is entitled is included in "Net income (loss) attributable to non-controlling interests" in our GAAP financial statements.

TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of 16.3%, 7.6% and 4.6% for each of the years ended December 31, 2024, 2023 and 2022, respectively.

For the year ended December 31, 2024, gains in TS Hamilton Fund were led by single name U.S.

equities trading in STV.

The TS Hamilton Fund also saw positive contributions to gains from non-U.S.

equities trading in ESTV.

In ESTV, gains were experienced in all underlying regions.

The TS Hamilton Fund also experienced gains from macroeconomic trading in FTV.

In FTV, gains were led by equities, credit, and fixed income.

For the year ended December 31, 2023, TS Hamilton Fund generated positive returns in single name equities trading in STV and ESTV, partially offset by losses in macroeconomic trading in FTV.

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In macroeconomic activities, FTV generated positive results in equities trading, partially offset by losses from fixed income trading, commodities trading, and currencies trading.

For the year ended November 30, 2021, TS Hamilton Fund generated positive returns in each of the three underlying Two Sigma Funds.

Gains were led by trading in FTV, followed by U.S.

single name equities in STV, and then non-U.S.

equities in ESTV.

In FTV, positive returns were generated in commodities and equities trading, partially offset by losses in currencies and fixed income.

Total net realized and unrealized gains (losses) on investments and net investment income (loss) - other, returned income of $96.2 million, and a loss of $80.4 million and $18.1 million for the years ended December 31, 2023 and 2022, and November 30, 2021, respectively.

This is primarily comprised of returns on our fixed maturity securities trading portfolio.

treasury interest rate increases.

During the year ended November 30, 2021, the fixed maturity securities trading portfolio also experienced net losses due to the negative mark-to-market impact of rising interest rates.

The year ended November 30, 2021 was also negatively impacted by a loss on equity method investment of $7.3 million, related to our interest in Attune, recorded under the equity method of accounting, prior to its sale on September 20, 2021.

Net Gain on Sale of Equity Method Investment

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

Net gain on sale of equity method investment $ 211 $ 6,991 $ 54,557

On September 20, 2021, a purchaser acquired Attune, a joint venture in which the Company had a one-third interest.

Proceeds of sale were settled on closing and the net gain on sale of equity method investment of $54.6 million was recorded in the statement of operations for year ended November 30, 2021.

In the years ended December 31, 2023 and 2022, escrow funds of $0.2 million and $7.0 million, respectively, were received and recorded in the statement of operations, recognizing an incremental net gain on sale of equity method investment relating to the same transaction.

During the year ended December 31, 2022, the negative mark-to-market impact of rising U.S.

Treasury interest rates and other macroeconomic factors offset investment yield, giving rise to non-credit related net investment losses.

Other Income (Loss)

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Other income (loss), excluding third party fee income $ — $ 397 $ (315)

1 unchanged sentence

Net Foreign Exchange Gains (Losses)

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Net foreign exchange gains (losses) $ (3,231) $ (6,185) $ 6,137

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Consequently, we may incur foreign exchange gains and losses in our results of operations.

Foreign exchange losses of $6.2 million for the year ended December 31, 2023 primarily arose from the weakening of the U.S.

dollar against the British pound, Euro and Yen.

Foreign exchange gains of $6.1 million and $6.4 million for the years ended December 31, 2022 and November 30, 2021, respectively, primarily arose from the strengthening of the U.S.

dollar against the same currencies.

Foreign exchange losses of $3.2 million and $6.2 million and gains of $6.1 million for the years ended December 31, 2024, 2023 and 2022, respectively, were primarily driven by the remeasurement of insurance-related assets and liabilities denominated in British Pounds, Euro, Japanese Yen, and Australian and Canadian Dollars.

Corporate Expenses

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Corporate expenses $ 61,111 $ 76,691 $ 20,142

Corporate expenses are general and administrative costs incurred outside of our reportable segments.

We may periodically reassess allocations between corporate and other underwriting expenses to better reflect the nature of the underlying expense.

Corporate expenses for the years ended December 31, 2023 and 2022, and November 30, 2021, were $76.7 million, $20.1 million and $22.5 million, respectively, and typically consist of certain executive and Board compensation costs and professional fees.

Corporate expenses for the year ended December 31, 2023 increased by $56.5 million over the prior year, primarily driven by $30.4 million of share based compensation expense related to the Value Appreciation Pool ("VAP").

Corporate expenses for the years ended December 31, 2024, 2023 and 2022, were $61.1 million, $76.7 million and $20.1 million, respectively, and typically consist of certain executive and Board compensation costs and professional fees.

Corporate expenses for the year ended December 31, 2024 were $61.1 million compared to $76.7 million for the year ended December 31, 2023, a decrease of $15.6 million.

The decrease was primarily driven by $9.2 million of Value Appreciation Pool ("VAP") expense recorded for the year ended December 31, 2024, compared to $30.4 million of VAP expense recorded for the year ended December 31, 2023, partially offset by certain variable performance based compensation costs, an increased headcount and an increase in professional fees and insurance costs associated with operating as a public company.

Corporate expenses for the year ended December 31, 2023 were $76.7 million compared to $20.1 million for the year ended December 31, 2022, an increase of $56.6 million.

The increase was primarily driven by $30.4 million of share based compensation expense related to the VAP.

An additional $4.2 million of expense was recorded as an adjustment to retained earnings in "Share compensation expense" in the second quarter of 2023, for a total year to date VAP expense of $34.5 million at December 31, 2023.

1 unchanged sentence

Impairment of Goodwill

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Impairment of goodwill $ — $ — $ 24,082

In the years ended December 31, 2023 and 2022, and November 30, 2021, the Company recorded impairment charges of $Nil, $24.1 million and $0.9 million, respectively, primarily arising from the annual goodwill impairment assessment.

In the years ended December 31, 2024, 2023 and 2022, the Company recorded impairment charges of $Nil, $Nil and $24.1 million, respectively, primarily arising from the annual goodwill impairment assessment.

As of December 31, 2024 and 2023, there was $Nil goodwill recorded on the balance sheet.

Amortization of Intangible Assets

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Amortization of intangible assets $ 15,520 $ 10,783 $ 12,832

Amortization of intangible assets of $10.8 million, $12.8 million and $13.4 million for the years ended December 31, 2023 and 2022, and November 30, 2021, respectively, relates to internally developed software and intangible assets acquired in a business combination.

Amortization expense decreased as there have been no subsequent additions to acquired assets and the shorter-lived assets become fully amortized.

Amortization of intangible assets of $15.5 million, $10.8 million and $12.8 million for the years ended December 31, 2024, 2023 and 2022, respectively, relates to internally developed software and intangible assets acquired in a business combination.

The increase in amortization expense is primarily driven by the incremental expense associated with additional technology projects.

Interest Expense

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Interest expense $ 22,616 $ 21,434 $ 15,741

Interest expense of $21.4 million, $15.7 million and $14.9 million for the years ended December 31, 2023 and 2022, and November 30, 2021, respectively, relates to interest payments and certain administrative fees associated with our term loan and letter of credit facilities.

The increase in interest expense is primarily driven by the increase in the Secured Overnight Financing Rate (“SOFR”), which underlies the floating rate associated with the term loan.

Interest expense of $22.6 million, $21.4 million and $15.7 million for the years ended December 31, 2024, 2023 and 2022, respectively, relates to interest payments and certain administrative fees associated with our term loan and letter of credit facilities.

The movement in interest expense is primarily driven by the increase in the Secured Overnight Financing Rate ("SOFR"), which underlies the floating rate associated with the term loan.

Income Tax Expense (Benefit)

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Income tax expense (benefit) $ 8,402 $ (25,066) $ 3,104

2 unchanged sentences

Hamilton Group and its Bermuda domiciled subsidiaries were not subject to income tax in Bermuda in 2023 and prior.

On December 27, 2023, Bermuda enacted a 15% corporate income tax that will generally become effective on January 1, 2025.

On December 27, 2023, Bermuda enacted a 15% corporate income tax that generally became effective on January 1, 2025.

The legislation defers the effective tax date until 2030 for Bermuda companies that meet certain requirements.

1 unchanged sentence

The legislation included a provision referred to as the economic transition adjustment, which is intended to provide a fair and equitable transition into the tax regime with respect to which the Company has recorded a deferred tax asset.

The tax benefit of $25.1 million for the year ended December 31, 2023 is driven by the economic transition adjustment, with respect to which the Company has recorded a deferred tax asset in the fourth quarter of 2023 of $35.1 million, partially offset by withholding taxes on investment income from the TS Hamilton Fund.

Tax expense of $3.1 million and $12.4 million for the years ended December 31, 2022, and November 30, 2021, respectively, primarily relates to withholding taxes on investment income from the TS Hamilton Fund.

Change in Financial Year - Stub Period Results

The following is a comparison of selected data for our consolidated results of operations for the one month periods ended December 31, 2021 and 2020 and book value per share and balance sheet data as at December 31, 2021 and 2020.

For the One Month Ended

($ in thousands, except per share amounts) December 31, 2021 December 31, 2020

Gross premiums written $ 121,813 $ 88,521

Net premiums written $ 97,921 $ 74,126

Net premiums earned $ 98,631 $ 67,498

Third party fee income 1,349 1,849

Claims and Expenses

Losses and loss adjustment expenses 56,650 44,925

Acquisition costs 23,992 17,534

Other underwriting expenses 13,857 12,107

Underwriting income (loss) $ 5,481 $ (5,219)

Net realized and unrealized gains (losses) on investments (33,526) 91,813

Net investment income (loss) (3,222) (4,570)

Total net realized and unrealized gains (losses) on investments and

net investment income (loss) $ (36,748) $ 87,243

Net income (loss) (35,890) 78,616

Net income (loss) attributable to non-controlling interest (3) 15,195

Net income (loss) attributable to common shareholders $ (35,887) $ 63,421

Diluted income (loss) per share attributable to common shareholders $ (0.35) $ 0.61

Attritional loss ratio - current year 48.0 % 42.5 %

Attritional loss ratio - prior year development — % — %

Catastrophe loss ratio - current year 9.4 % — %

Catastrophe loss ratio - prior year development — % 24.0 %

Loss and loss adjustment expense ratio 57.4 % 66.5 %

Acquisition cost ratio 24.3 % 26.0 %

Other underwriting expense ratio 12.7 % 15.2 %

Combined ratio 94.4 % 107.7 %

Return on average common shareholders' equity (2.0) % 3.9 %

Book Value December 31, 2021 December 31, 2020

Tangible book value per common share $ 15.95 $ 15.11

Book value per common share $ 17.09 $ 16.23

Balance Sheet Data

Total assets $ 5,442,674 $ 4,858,096

Total shareholders' equity $ 1,752,601 $ 1,660,949

The following significant items impacted the consolidated results of operations for the one month periods ended December 31, 2021 and 2020:

Gross premiums written Gross premiums written were $121.8 million and $88.5 million for the one month ended December 31, 2021 and 2020, respectively.

The increase in gross premiums written was primarily driven by expansion into additional classes, increased participation on existing business and rate increases across multiple classes of business.

Underwriting results The combined ratio was 94.4% and 107.7% for the one month ended December 31, 2021 and December 31, 2020, respectively.

The decrease was primarily driven by a lower level of catastrophe losses and a decrease in our other underwriting expense ratio.

($ in thousands) Current year % of net premiums earned Prior year development % of net premiums earned Losses and loss adjustment expenses % of net premiums earned

December 31, 2021

Attritional losses $ 47,327 48.0 % $ — — % $ 47,327 48.0 %

Catastrophe losses 9,323 9.4 % — — % 9,323 9.4 %

Total $ 56,650 57.4 % $ — — % $ 56,650 57.4 %

December 31, 2020

Attritional losses $ 28,698 42.5 % $ — — % $ 28,698 42.5 %

Catastrophe losses — — % 16,227 24.0 % 16,227 24.0 %

Total $ 28,698 42.5 % $ 16,227 24.0 % $ 44,925 66.5 %

The loss ratio for the month ended December 31, 2021 was 57.4%, compared to 66.5% for the month ended December 31, 2020, a decrease of 9.1 percentage points.

The decrease was primarily driven by a lower level of catastrophe losses, partially offset by a higher level of current year attritional losses.

Catastrophe losses - current year and prior year of $9.3 million for the month ended December 31, 2021 were primarily driven by windstorm event PCS 2176 ($7.9 million) and COVID-19 ($1.5 million).

Catastrophe losses - current year and prior year of $16.2 million for the month ended December 31, 2020 were primarily driven by Hurricanes Laura, Sally and Zeta ($16.0 million).

Total net realized and unrealized gains (losses) on investments and net investment income (loss) consisted of a loss of $36.7 million and income of $87.2 million for the one month ended December 31, 2021 and 2020, respectively.

TS Hamilton Fund produced returns, net of investment management fees and performance incentive allocations, of (2.1%) and 4.3% for the one month ended December 31, 2021 and 2020, respectively.

Income tax expense of $8.4 million for the year ended December 31, 2024 is primarily driven by withholding taxes on investment income from TS Hamilton Fund and income tax expense on earnings from our London, Dublin, and U.S.

operations, partially offset by a decrease in valuation allowance.

Income tax benefit of $25.1 million for the year ended December 31, 2023 is primarily driven by the economic transition adjustment discussed above, partially offset by withholding taxes on investment income from the TS Hamilton Fund and income tax expense on earnings from our U.K.

operations which was offset by a decrease in valuation allowance.

Income tax expense of $3.1 million for the year ended December 31, 2022, is primarily driven by withholding taxes on investment income from the TS Hamilton Fund and an increase in valuation allowance, partially offset by an income tax benefit from losses in our U.K., U.S.

and Ireland operations.

Key Operating and Financial Metrics

3 unchanged sentences

We calculate book value per common share as total common shareholders’ equity divided by the total number of common shares outstanding at the point in time.

($ in thousands, except for share and per share amounts) December 31, 2023 December 31, 2022

As at December 31,

($ in thousands, except for share and per share amounts) 2024 2023

Closing common shareholders' equity $ 2,328,709 $ 2,047,850

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Book value per common share was $22.95 at December 31, 2024, a $4.37 or 23.5% increase from the Company’s book value per common share of $18.58 at December 31, 2023.

The increase in book value per common share was primarily driven by the Company’s net income attributable to common shareholders.

The increase was primarily driven by the Company’s net income attributable to common shareholders of $400.4 million and the accretive impact of share repurchases (see Note 11, Share Capital in the accompanying audited consolidated financial statements for further details).

Tangible Book Value per Common Share

Management believes that tangible book value is an indicator of value provided to common shareholders and aligns the company’s and most investors’ long term objectives.

Management believes that tangible book value is an important indicator of value provided to common shareholders and aligns the Company’s and most investors’ long term objectives.

We calculate tangible book value per common share as total common shareholders’ equity less intangible assets, divided by the total number of common shares outstanding at the point in time.

($ in thousands, except for share and per share amounts) December 31, 2023 December 31, 2022

As at December 31,

($ in thousands, except for share and per share amounts) 2024 2023

Closing common shareholders' equity $ 2,328,709 $ 2,047,850

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Tangible book value per common share was $22.03 at December 31, 2024, a $4.28 or 24.1% increase from the Company’s tangible book value per common share of $17.75 at December 31, 2023.

The increase in tangible book value per common share was primarily driven by the Company’s net income attributable to common shareholders.

The increase in tangible book value per common share was primarily driven by the Company’s net income attributable to common shareholders and the accretive impact of share repurchases (see Note 11, Share Capital in the accompanying audited consolidated financial statements for further details).

Return on Average Common Shareholders' Equity

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We calculate it by dividing net income (loss) attributable to common shareholders by average common shareholders' equity for the corresponding period.

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Net income (loss) attributable to common shareholders 400,429 258,727 (97,999)

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Return on average common shareholders' equity 18.3 % 13.9 % (5.7) %

ROACE was 13.9% for the year ended December 31, 2023, compared to (5.7)% and 11.1% for the years ended December 31, 2022 and November 30, 2021, respectively.

ROACE for the year ended December 31, 2023 was primarily driven by the Company's net income attributable to common shareholders.

The change in ROACE for the years ended December 31, 2022 and November 30, 2021 was primarily driven by the Company's net income or loss attributable to common shareholders in the period.

ROACE was 18.3% for the year ended December 31, 2024, compared to 13.9% for the year ended December 31, 2023.

The increase was primarily driven by the higher net income attributable to common shareholders for the year ended December 31, 2024.

ROACE was 13.9% for the year ended December 31, 2023, compared to (5.7)% for the year ended December 31, 2022.

The increase was primarily driven by the higher net income attributable to common shareholders for the year ended December 31, 2023.

Non-GAAP Measures

We present our results of operations in a way that we believe will be the most meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate its performance.

Some of the measurements are considered non-GAAP financial measures under SEC rules and regulations.

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We believe that this measure of our performance focuses on the core fundamental performance of the Company’s reportable segments in any given period and is not distorted by investment market conditions, corporate expense allocations or income tax effects.

The following table reconciles underwriting income (loss) to net income (loss), the most comparable GAAP financial measure:

For the Years Ended

December 31, November 30,

The table below reconciles underwriting income (loss) to net income (loss), the most comparable GAAP financial measure:

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

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Total net realized and unrealized gains (losses) on investments and net investment income (loss) 574,674 240,066 71,861

Net gain on sale of equity method investment 211 6,991 54,557

Other income (loss), excluding third party fee income — 397 (315)

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We believe that this measure is a relevant component of our underwriting income (loss).

The table below reconciles third party fee income to other income, the most comparable GAAP financial measure:

For the Years Ended

December 31, November 30,

The table below reconciles third party fee income to other income (loss), the most comparable GAAP financial measure:

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

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The following table reconciles other underwriting expenses to general and administrative expenses, the most comparable GAAP financial measure:

For the Years Ended

December 31, November 30,

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

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Other Underwriting Expense Ratio is a measure of the other underwriting expenses (net of third party fee income) incurred by the Company and is expressed as a percentage of net premiums earned.

Catastrophe Loss Ratio – current year is the catastrophe losses incurred by the company relating to the current year divided by net premiums earned.

Catastrophe Loss Ratio – prior year development is the catastrophe losses incurred by the company relating to prior years divided by net premiums earned.

Attritional Loss Ratio – current year is the attritional losses incurred by the company relating to the current year divided by net premiums earned.

Attritional Loss Ratio – prior year development is the attritional losses incurred by the company relating to prior years divided by net premiums earned.

Catastrophe Loss Ratio – current year is the catastrophe losses incurred by the company relating to the current year divided by net premiums earned.

Catastrophe Loss Ratio – prior year development is the catastrophe losses incurred by the company relating to prior years divided by net premiums earned.

Combined Ratio

Combined Ratio is a measure of our underwriting profitability and is expressed as the sum of the losses and loss adjustment expense ratio, acquisition cost ratio and other underwriting expense ratio.

Combined Ratio is a measure of our underwriting profitability and is expressed as the sum of the loss and loss adjustment expense ratio, acquisition cost ratio and other underwriting expense ratio.

A combined ratio under 100% indicates an underwriting profit, while a combined ratio over 100% indicates an underwriting loss.

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The Company maintains two segregated investment portfolios:

a fixed maturity and short-term investments trading portfolio and an investment in TS Hamilton Fund.

The Company's high quality and liquid fixed maturity and short-term investments portfolio is structured to focus primarily on the preservation of capital and the availability of liquidity to meet the Company’s claims obligations, to be well diversified across market sectors, and to generate relatively attractive returns on a risk-adjusted basis over time.

a fixed maturities and short-term investments trading portfolio and an investment in Two Sigma Hamilton Fund ("TS Hamilton Fund").

The Company's high quality and liquid fixed maturities and short-term investments portfolio is structured to focus primarily on the preservation of capital and the availability of liquidity to meet the Company’s claims obligations, to be well diversified across market sectors, and to generate relatively attractive returns on a risk-adjusted basis over time.

The Company’s investments are subject to market-wide risks and fluctuations, as well as to risks inherent in particular securities.

The Company also invests in the TS Hamilton Fund, a Delaware limited liability company.

Hamilton Re has a commitment with TS Hamilton Fund to maintain an amount up to the lesser of (i) $1.8 billion or

(ii) 60% of Hamilton Insurance Group’s net tangible assets in TS Hamilton Fund, such lesser amount, the “Minimum Commitment Amount”, for a three-year period (the "Initial Term") and for rolling three-year periods thereafter (each such three-year period the "Commitment Period"), subject to certain circumstances and the liquidity options described below, with the Commitment Period ending on June 30, 2026.

The Commitment Period consists of a three-year rolling term that automatically renews on an annual basis unless Hamilton Re or the Managing Member provide advance notice of non-renewal.

Two Sigma is an SEC registered investment adviser specializing in quantitative analysis.

The Company also invests in TS Hamilton Fund, a Delaware limited liability company.

Hamilton Re has a commitment with TS Hamilton Fund to maintain an amount up to the lesser of (i) $1.8 billion or (ii) 60% of Hamilton Insurance Group’s net tangible assets in TS Hamilton Fund, such lesser amount, the "Minimum Commitment Amount", for a three-year period (the "Initial Term") and for rolling three-year periods thereafter (each such three-year period the "Commitment Period"), subject to certain circumstances and the liquidity options described below, with the Commitment Period ending on June 30, 2027.

The Commitment Period consists of a 3-year rolling term that automatically renews on an annual basis unless Hamilton Re or the Managing Member provide advance notice of non-renewal.

Two Sigma is a United States Securities and Exchange Commission registered investment adviser specializing in quantitative analysis.

The TS Hamilton Fund investment strategy is focused on delivering non-market correlated investment income and total return through all market cycles while maintaining appropriate portfolio liquidity and credit quality to meet the requirements of customers, rating agencies and regulators.

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However, a significant portion of the total cash and investments balances held were invested in TS Hamilton Fund as collateral for the investments held by the underlying trading vehicles, as shown in the tables under the "TS Hamilton Fund" discussion.

($ in thousands) December 31, 2023 December 31, 2022

As at December 31,

($ in thousands) 2024 2023

Fixed maturity investments, at fair value

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Total cash and investments increased from $4.0 billion at December 31, 2023 to $4.9 billion at December 31, 2024.

The increase was primarily driven by increases in both the fixed maturity investments as we deployed more cash into the fixed maturity portfolio to take advantage of higher interest rates, and in the TS Hamilton Fund, primarily due to positive investment returns for the year ended December 31, 2023.

The TS Hamilton Fund represents $1.8 billion of the total cash and investments at both December 31, 2023 and 2022.

The increase was primarily driven by positive investment returns on both the fixed maturities and short-term investments trading portfolio and the TS Hamilton Fund, for the year ended December 31, 2024.

The Company also continued to deploy more cash into the fixed maturity trading portfolio to take advantage of higher U.S.

treasury interest rates.

The TS Hamilton Fund represents $2.0 billion and $1.8 billion of the total cash and investments at December 31, 2024 and 2023, respectively.

Fixed Maturity and Short-term Investments - Trading

The Company’s fixed maturity portfolio and short-term investments at December 31, 2023 and 2022 are as follows:

The Company’s fixed maturity trading portfolio and short-term investments are as follows:

December 31, 2024

($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair

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Total $ 2,918,547 $ 9,545 $ (53,120) $ 2,874,972

December 31, 2023

($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair

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Residential mortgage-backed securities - Non-agency 5,639 16 (671) 4,984

Commercial mortgage-backed securities - Agency — — — —

Commercial mortgage-backed securities - Non-agency 11,473 — (1,050) 10,423

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Total $ 2,294,936 $ 17,667 $ (52,457) $ 2,260,146

The fair value of the Company’s fixed maturity portfolio and short-term investments increased from $1.5 billion at December 31, 2022 to $2.3 billion at December 31, 2023.

The increase was driven by an increase in our fixed maturity portfolio as we continued to deploy excess cash into the fixed maturity portfolio to take advantage of higher interest rates.

$428.9 million and $264.1 million of the short-term investments balance at December 31, 2023 and 2022, respectively, is held within TS Hamilton Fund.

The fair value of the Company’s fixed maturity trading portfolio and short-term investments increased from $2.3 billion at December 31, 2023 to $2.9 billion at December 31, 2024, due to increases in both the fixed maturity trading portfolio and the short-term investments held by TS Hamilton Fund.

Short-term investments at December 31, 2024 and 2023 of $497.1 million and $428.9 million, respectively, include $496.0 million and $428.9 million, respectively, held within TS Hamilton Fund.

The cash and short-term investment balances within TS Hamilton Fund are not managed by the Company, nor can they be removed from TS Hamilton Fund as they support the underlying investment strategies within the three trading vehicles.

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See discussion below for further details on assets within TS Hamilton Fund.

The fair values and weighted-average credit ratings of our fixed maturity trading portfolio and short-term investments by type at December 31, 2023 and 2022 were as follows:

The fair values and weighted-average credit ratings of our fixed maturity trading portfolio and short-term investments by type were as follows:

As at December 31,

($ in thousands) Fair Value % of Total Weighted average credit rating Fair Value % of Total Weighted average credit rating

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Residential mortgage-backed securities - Non-agency 16,754 1 % Aaa 4,984 0 % Aaa

Commercial mortgage-backed securities - Non-agency 10,423 1 % Aa1 9,219 1 % Aa1

Other asset-backed securities 14,606 1 % Aaa 12,885 1 % Aa3

Commercial mortgage-backed securities - Non-agency 39,686 1 % Aaa 10,423 1 % Aa1

Other asset-backed securities 113,890 4 % Aaa 14,606 1 % Aaa

Total fixed maturities 2,377,862 83 % Aa3 1,831,268 81 % Aa3

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Total fixed maturities and short-term investments $ 2,874,972 100 % Aa2 $ 2,260,146 100 % Aa2

Fixed maturity and short-term investment credit quality summary:

Fixed maturity and short-term investments credit quality summary:

Investment grade 100 % 100 %

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Total 100 % 100 %

The average credit quality, the average yield to maturity and the expected average duration of the Company’s fixed maturities and short-term investments trading portfolio, excluding short-term investments held by the TS Hamilton Fund, at December 31, 2023 and 2022 were as follows:

As at December 31,

Average credit quality Aa3 Aa3

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Expected average duration (in years) 3.4 3.3

At December 31, 2023 and 2022, approximately 100% of the Company’s fixed maturity and short-term investments trading portfolio were rated investment grade (Baa2 or higher) by third party rating services.

There were no non-investment grade securities in the fixed maturity and short-term trading portfolio.

At December 31, 2024 and 2023, approximately 100% of the Company’s fixed maturities and short-term investments trading portfolio was rated investment grade (Baa2 or higher) by third party rating services.

There were no non-investment grade securities in the fixed maturities and short-term investments trading portfolio.

The average credit quality of the Company’s fixed maturities and short-term investments trading portfolio, excluding short-term investments held by the TS Hamilton Fund, at December 31, 2024 and 2023 was Aa3.

The average yield to maturity on the Company’s fixed maturities and short-term investments trading portfolio decreased modestly to 4.5% at December 31, 2023 from 4.7% at December 31, 2022.

The average yield to maturity on the Company’s fixed maturities and short-term investments trading portfolio increased to 4.7% at December 31, 2024 from 4.5% at December 31, 2023.

The expected average duration of the Company’s fixed maturities and short-term investments trading portfolio increased modestly to 3.4 years at December 31, 2024 from 3.3 years at December 31, 2023.

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At December 31, 2024, the Company owns a 14.3%, 17.8% and 9.8% interest in each of the FTV, STV and ESTV funds, respectively.

Effective January 1, 2025, the Company amended its existing investment in Two Sigma Funds to include an allocation to the following portfolios:

Two Sigma Absolute Return Portfolio, LLC ("ATV"), Two Sigma Horizon Portfolio, LLC ("HTV"), Two Sigma Navigator Portfolio, LLC ("NTV"), and Two Sigma Kuiper Portfolio, LLC ("KTV").

• ATV primarily utilizes a global equity market neutral systematic strategy, predominantly trading equity securities, equity-related derivatives, and foreign exchange contracts.

• KTV primarily utilizes non-systematic, discretionary strategies that combine human discretion with quantitative analysis to trade futures, futures options, foreign currency spot, forward and option contracts, exchange-traded products ("ETPs") and ETP options, debt securities, and various types of derivatives and other instruments.

• HTV utilizes systematic strategies and non-systematic, discretionary strategies to trade futures, futures options, foreign currency spot, forward and option contracts, ETPs and ETP options, debt securities, and various types of derivatives and other instruments.

• NTV utilizes non-systematic, discretionary macro strategies that combine human discretion with quantitative analysis for purposes of trading globally across various asset classes.

TS Hamilton Fund invests in Two Sigma Funds ("Two Sigma Funds"), which are stated at their estimated fair values, which generally represent the Company’s proportionate interest in the members’ equity of the Two Sigma Funds as reported by the respective funds based on the net asset value ("NAV") provided by the fund administrator.

The Company accounts for its investment in Two Sigma Funds under the variable interest model at NAV as a practical expedient for fair value in the consolidated balance sheets.

The Company’s investments in Two Sigma Funds at December 31, 2023 and 2022 are as follows:

The Company’s investments in Two Sigma Funds are as follows:

December 31, 2024 December 31, 2023

($ in thousands) Cost Net

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Two Sigma Futures Portfolio, LLC (FTV) $ 308,061 $ (15,520) $ 292,541 $ 433,911 $ (38,105) $ 395,806

$ 433,911 $ (38,105) $ 395,806 $ 438,625 $ (95,213) $ 343,412

Two Sigma Spectrum Portfolio, LLC (STV) 360,997 102,267 463,264 193,299 88,228 281,527

193,299 88,228 281,527 171,135 57,982 229,117

Two Sigma Equity Spectrum Portfolio, LLC (ESTV) 136,565 47,011 183,576 142,981 31,156 174,137

$ 805,623 $ 133,758 $ 939,381 $ 770,191 $ 81,279 $ 851,470

$ 770,191 $ 81,279 $ 851,470 $ 731,100 $ 9,636 $ 740,736

The increase in the total fair value of the Company’s investments in Two Sigma Funds from $740.7 million at December 31, 2022 to $851.5 million at December 31, 2023 is primarily driven by collateral management within TS Hamilton Fund, along with an overall increase in the TS Hamilton Fund market value due to positive returns.

The increase in the total fair value of the Company’s investments in Two Sigma Funds from $851.5 million at December 31, 2023 to $939.4 million at December 31, 2024 is primarily driven by investment gains and collateral management within TS Hamilton Fund.

The total net assets managed in TS Hamilton Fund represent our investment in and exposure to Two Sigma Funds’ investment strategies.

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The cash and short-term investment balances are not managed by the Company, nor can they be removed from TS Hamilton Fund as they support the underlying investment strategies within the three trading vehicles.

The following table represents the total assets and total liabilities of TS Hamilton Fund at December 31, 2023 and 2022.

The following table represents the total assets and total liabilities of TS Hamilton Fund.

Creditors or beneficial interest holders of TS Hamilton Fund have no recourse to the general credit of the Company as the Company’s obligation is limited to the amount of its committed investment.

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Receivables for investments sold

Interest and dividends receivable

73,322 41,087

Accounts payable and accrued expenses

Withdrawal payable

Interest and dividends receivable

2,087,886 1,801,656

Payable for investments purchased 100,469 62,440

Withdrawal payable

100,420 6,480

Accounts payable and accrued expenses

Total liabilities

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Liquidity is a measure of a company’s ability to generate cash flows sufficient to meet the short-term and long-term cash requirements of its business operations.

The Company manages liquidity at the holding company and operating subsidiary levels.

The Company manages liquidity at the holding company and operating subsidiary level.

Management believes that its significant cash flows from operations and high quality liquid investment portfolio will provide sufficient liquidity for the foreseeable future.

At December 31, 2023 and 2022, total unrestricted cash and cash equivalents were $794.5 million and $1.1 billion, respectively, and total restricted cash and cash equivalents were $106.4 million and $130.8 million, respectively.

At December 31, 2024 and 2023, total unrestricted cash and cash equivalents were $996.5 million and $794.5 million, respectively, and total restricted cash and cash equivalents were $104.4 million and $106.4 million, respectively.

Holding Company

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Accordingly, Hamilton Insurance Group, Ltd.’s future cash flows depend on the availability of dividends or other statutorily permissible distributions, such as returns of capital, from its subsidiaries.

The ability to pay such dividends and/or distributions is limited by the applicable laws and regulations of the various countries and states in which the Company’s subsidiaries operate (refer to Note 18, Statutory Requirements in the audited consolidated financial statements for further details), as well as the need to maintain capital levels to adequately support insurance and reinsurance operations, and to preserve financial strength ratings issued by independent rating agencies.

During the years ended December 31, 2023 and 2022, and the year ended November 30, 2021, Hamilton Insurance Group, Ltd.

The ability to pay such dividends and/or distributions is limited by the applicable laws and regulations of the various countries and states in which the Company’s subsidiaries operate (refer to Note 17, Statutory Requirements in the accompanying audited consolidated financial statements for further details), as well as the need to maintain capital levels to adequately support insurance and reinsurance operations, and to preserve financial strength ratings issued by independent rating agencies.

During the years ended December 31, 2024, 2023 and 2022, Hamilton Insurance Group, Ltd.

received $197.5 million, $44.0 million, and $137.0 million, respectively, of distributions from its subsidiaries.

Hamilton Insurance Group, Ltd.’s primary use of funds is interest payments on debt and credit facilities, capital investments in subsidiaries, and payment of corporate operating expenses.

Hamilton Insurance Group, Ltd.’s primary use of funds is interest payments on debt and credit facilities, common share repurchases, capital investments in subsidiaries, and payment of corporate operating expenses.

Common share repurchases may be conducted through open market repurchases and/or privately negotiated transactions.

See Note 11, Share Capital in the accompanying audited consolidated financial statements for further detail of common share repurchases in the year ended December 31, 2024.

Management believes the dividend distribution capacity of Hamilton Insurance Group, Ltd.’s subsidiaries, which was estimated at $547.0 million at December 31, 2024, will provide Hamilton Insurance Group, Ltd.

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Historically, these cash receipts have been sufficient to fund the operating expenses of these subsidiaries, as well as to fund dividend payments to Hamilton Insurance Group, Ltd.

The subsidiaries’ remaining cash flows are generally invested into the investment portfolio.

The remaining cash flows have also been used to fund common share repurchases and to fund acquisitions in recent years.

The subsidiaries’ remaining cash flows are generally invested into the investment portfolio and used to fund common share repurchases or acquisitions.

The operating subsidiaries’ insurance and reinsurance business inherently provides liquidity, as premiums are received in advance (sometimes substantially in advance) of the time losses are paid.

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Where required, these FCRs are posted on the Company’s website.

The regulations governing the Company’s principal operating subsidiaries’ ability to pay dividends and to maintain certain measures of solvency and liquidity and requirements to file FCRs are discussed in Note 18, Statutory Requirements to the Company’s audited consolidated financial statements in this Form 10-K.

The regulations governing the Company’s principal operating subsidiaries’ ability to pay dividends and to maintain certain measures of solvency and liquidity are discussed in Note 17, Statutory Requirements in the Company's audited consolidated financial statements as included in this Form 10-K.

Consolidated Cash Flows

Consolidated cash flows from operating, investing and financing activities in the years ended December 31, 2023 and 2022, and November 30, 2021 were as follows:

For the Years Ended

($ in thousands) December 31, 2023 December 31, 2022 November 30, 2021

Consolidated cash flows from operating, investing and financing activities were as follows:

For the Years Ended December 31,

($ in thousands) 2024 2023 2022

Total cash provided by (used in):

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Net increase (decrease) in cash and cash equivalents $ 199,992 $ (306,343) $ 243,077

Net cash provided by (used in) operating activities was $283.2 million, $190.9 million and $226.5 million in the years ended December 31, 2023 and 2022, and November 30, 2021, respectively.

Net cash provided by (used in) operating activities was $759.3 million, $283.2 million and $190.9 million for the years ended December 31, 2024, 2023, and 2022, respectively.

Cash inflows from insurance and reinsurance operations typically include premiums, net of acquisition costs, and reinsurance recoverables.

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Cash provided by operating activities fluctuates due to timing differences between the collection of premiums and reinsurance recoverables and the payment of losses and loss adjustment expenses, and the payment of premiums to reinsurers.

Net cash provided by (used in) investing activities was $(652.1) million, $133.1 million and $137.8 million in the years ended December 31, 2023 and 2022, and November 30, 2021, respectively, primarily driven by the timing of investing activities and the net proceeds of both turnover and new investment in our fixed maturity and short-term investments.

Net cash provided by (used in) financing activities was $59.0 million, $(69.6) million and $(68.0) million in the years ended December 31, 2023 and 2022, and November 30, 2021, respectively.

Net cash inflows for the year ended December 31, 2023 were driven by the proceeds of shares issued in connection with the Company's Initial Public Offering ("IPO"), partially offset by incentive allocations paid to TS Hamilton Fund.

Allocations paid to TS Hamilton Fund were the primary drivers of the net financing cash outflows in each of the years ended December 31, 2022 and November 30, 2021.

The Company believes that annual positive cash flows from operating activities will be sufficient to cover claims payments, absent a series of additional large catastrophic loss activity.

However, should claim payment obligations accelerate beyond the Company’s ability to fund payments from operating cash flows, the Company would utilize cash and cash equivalent balances and/or liquidate a portion of the Company’s trading investment portfolio and/or access certain credit facilities.

The Company’s trading portfolio is heavily weighted towards conservative, high quality and highly liquid securities.

Net cash provided by (used in) investing activities was $(184.2) million, $(652.1) million and $133.1 million in the years ended December 31, 2024, 2023 and 2022, respectively, primarily driven by the timing of investing activities and the net proceeds of both turnover and new investment in our fixed maturity and short-term investments.

Net cash provided by (used in) financing activities was $(362.7) million, $59.0 million and $(69.6) million for the years ended December 31, 2024, 2023 and 2022, respectively.

Net cash used in financing activities for the year ended December 31, 2024 was primarily driven by incentive allocations paid to TS Hamilton Fund and share repurchases.

See Note 11, Share Capital in the accompanying audited consolidated financial statements for further detail of common share repurchases in the year ended December 31, 2024.

Net cash provided by financing activities for the year ended December 31, 2023 was primarily driven by the proceeds of shares issued in connection with the Company's Initial Public Offering ("IPO"), partially offset by incentive allocations paid to TS Hamilton Fund.

Net cash used in financing activities for the year ended December 31, 2022 was primarily driven by incentive allocations paid to TS Hamilton Fund.

The Company believes that annual positive cash flows from operating activities will be sufficient to cover claims payments, absent a series of additional large catastrophic losses.

However, should claim payment obligations accelerate beyond the Company’s ability to fund payments from operating cash flows, the Company would utilize cash and cash equivalent balances and/or liquidate a portion of the Company’s fixed maturities and short-term investments trading portfolio and/or access certain credit facilities.

The Company’s fixed maturities and short-term investments trading portfolio is heavily weighted towards conservative, high quality and highly liquid securities.

In addition, if necessary, the Company generally has two options related to liquidating a portion of the investment portfolio in the TS Hamilton Fund, subject to Hamilton Re’s minimum investment commitment, which are as follows:

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Claim payments pertaining to any such large catastrophic event would be paid out over a period spanning many months.

Management expects that, if necessary, the full value of cash, fixed income and short-term investments at December 31, 2024 could be available in one to three business days under normal market conditions, except for $470.6 million of restricted cash and investments which primarily support the Company’s obligations in regulatory jurisdictions where it operates as a non-admitted carrier (refer to Note 3, Investments in the accompanying audited consolidated financial statements) and $301.2 million of restricted cash and investments which primarily support the Company’s letter of credit facilities (refer to Note 10, Debt and Credit Facilities in the accompanying audited consolidated f inancial statements).

Capital Resources

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Management believes that the Company holds sufficient capital to allow it to take advantage of market opportunities and to maintain its financial strength ratings and comply with various local statutory regulations.

The following table summarizes consolidated shareholders' equity:

(Expressed in thousands of U.S.

Dollars) December 31, 2023 December 31, 2022

The following table summarizes our consolidated total capital:

As at December 31,

($ in thousands) 2024 2023

Shareholders' equity $ 2,328,709 $ 2,047,850

The Company’s consolidated shareholders' equity was $2.3 billion at December 31, 2024, an increase of 13.7% compared to $2.0 billion at December 31, 2023.

The major factors contributing to the increase in consolidated shareholders' equity during the period ended December 31, 2023 were:

• $258.7 million of net income (loss) and other comprehensive income (loss) attributable to common shareholders for the year ended December 31, 2023;

• $80.6 million of additional paid-in capital related to the net proceeds of shares issued in connection with the Company's fourth-quarter IPO;

• $44.4 million of additional paid-in capital related to the Company's share based compensation program.

The primary driver of the increase in total capital was the Company's net income attributable to common shareholders of $400.4 million for the year ended December 31, 2024, partially offset by share repurchases (see Note 11, Share Capital in the accompanying audited consolidated financial statements for further details).

On June 23, 2022, the Company renewed its unsecured $150 million term loan credit arrangement, as amended from time to time (the "Facility"), with various lenders as arranged by Wells Fargo Securities, LLC.

All or a portion of the loan issued under the renegotiated Facility bears interest at either (a) the Base Rate plus the Applicable Margin or (b) the Adjusted Term Secured Overnight Financing Rate (“SOFR”) plus the Applicable Margin, at the Company's discretion.

All or a portion of the loan issued under the Facility bears interest at either (a) the Base Rate plus the Applicable Margin or (b) the Adjusted Term Secured Overnight Financing Rate ("SOFR") plus the Applicable Margin, at the Company's discretion.

In the event of default, an additional 2% interest in excess of (a) or (b) will be levied, not to exceed the highest rate permissible under applicable law, and certain types of loans may not be available for borrowing by the Company under the Facility.

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The net worth requirement is recalculated effective as of the end of each fiscal quarter.

As of December 31, 2023, the outstanding loan balance was $150.0 million, the fair value was $151.0 million, the unamortized issuance costs were $0.2 million, and the Company was in compliance with all covenants.

As of December 31, 2024, the Company was in compliance with all covenants.

The following table presents the gross outstanding loan balance, loan fair value and unamortized loan issuance costs:

($ in thousands) 2024 2023

Outstanding loan balance $ 150,000 $ 150,000

Loan fair value 150,463 150,981

Unamortized loan issuance costs $ 55 $ 170

Debt issuance costs are amortized over the period during which the Facility is outstanding, as an offset to investment income.

The Company amortized debt issuance costs of $0.1 million or less in each of the years ended December 31, 2023 and 2022, and the year ended November 30, 2021.

The Company amortized debt issuance costs of $0.1 million or less in each of the years ended December 31, 2024, 2023 and 2022.

Common Shares

The Company’s authorized and issued share capital at December 31, 2023 and 2022 is comprised as follows:

($s in thousands, except share and per share amounts)

Common shares of $0.01 par value each (2023:

150,000,000 and 2022:

The Company’s authorized and issued share capital is comprised as follows:

($ in thousands, except share information)

Common shares of $0.01 par value each (2024 and 2023:

Issued, outstanding and fully paid:

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Total $ 1,015 $ 1,101

On May 8, 2024, the Company entered into an agreement to repurchase 9.1 million Class A common shares at $12.00 per share (the "Share Repurchase").

The total purchase price was $109.5 million.

The common shares purchased by the Company were cancelled following the repurchase transaction.

On August 7, 2024, the Board of Directors authorized a repurchase of the Company's common shares in the aggregate amount of $150 million (the “Authorization”), under which the Company may repurchase shares through open market repurchases and/or privately negotiated transactions.

The Authorization will expire when the Company has repurchased the full value of shares authorized, unless terminated earlier by the Board of Directors.

For the year ended December 31, 2024, 1.5 million Class B common shares at an aggregate cost of $28.1 million and an average price of $18.89 per common share were repurchased and cancelled and $121.9 million remained available for purchase under the Authorization.

In general, holders of Class A common shares and Class B common shares have one vote for each common share held while the Class C common shares have no voting rights, except as required by law.

However, each holder of Class A common shares and Class B common shares is limited to voting (directly, indirectly or constructively, as determined for U.S.

federal income tax purposes) that number of common shares equal to 9.5% of the total combined voting power of all classes of shares of the Company (or, in the case of a class vote by the holders of the Class B common shares, such as in respect of the election or removal of directors other than for directors who are appointed by certain shareholders pursuant to the Shareholders Agreement and the Bye-laws, a maximum of 14.92% of the total combined voting power).

In addition, the Board of Directors may limit a shareholder’s voting rights when it deems it appropriate to do so to avoid certain material adverse tax, legal or regulatory consequences to the Company or any direct or indirect shareholder or its affiliates.

federal income tax purposes) that number of common shares equal to 9.5% of the total combined voting power of all classes of shares of the Company (or, in the case of a class vote by the holders of our Class B common shares, such as in respect of the election or removal of directors other than for directors who are appointed by certain shareholders pursuant to the Shareholders Agreement and our Bye-laws, a maximum of 14.92% of the total combined voting power, calculated by multiplying (a) 9.5% and (b) the quotient of dividing (x) the total number of directors by (y) the number of directors elected by holders of Class B common shares).

In addition, the Board of Directors may, in its absolute discretion, limit a shareholder’s voting rights when it deems it appropriate to do so to avoid certain material adverse tax, legal or regulatory consequences to the Company, any subsidiary of the Company, or any direct or indirect shareholder or its affiliates.

On September 13, 2024, 1.7 million Class A common shares were converted into Class C common shares at the request of the Class A Members and as approved by the Board.

During the year ended December 31, 2024, 7.9 million Class C common shares were converted into Class B common shares at the request of the respective Class C Members and as approved by the Board.

Credit Facilities

The Company has several available letter of credit facilities and a revolving loan facility provided by commercial banks.

The letter of credit facilities are utilized to provide collateral to reinsureds of Hamilton Re and its affiliates to the extent required under reinsurance agreements and to support capital requirements at Lloyd’s.

On December 5, 2018 and December 27, 2018, Hamilton Re Ltd entered into a Master Agreement for Issuance of Payment Instruments and a Facility Letter for Issuance of Payment Instruments respectively, with CitiBank Europe Plc ("CitiBank Europe"), under which CitiBank Europe agreed to provide an uncommitted secured letter of credit facility for the issuance of standby letters of credit or similar instruments in multiple currencies.

On August 8, 2023, letter of credit capacity under this facility was increased to $200 million.

The letter of credit facilities are utilized to provide collateral to reinsureds of Hamilton Re and its affiliates to the extent required under insurance and reinsurance agreements and to support capital requirements at Lloyd’s.

On December 5, 2018 and December 27, 2018, Hamilton Re, Ltd.

entered into a Master Agreement for Issuance of Payment Instruments and a Facility Letter for Issuance of Payment Instruments respectively, with CitiBank Europe Plc ("CitiBank Europe"), under which CitiBank Europe agreed to provide an uncommitted secured letter of credit facility for the issuance of standby letters of credit or similar instruments in multiple currencies.

On November 15, 2024, letter of credit capacity under this facility was increased to $250 million.

At all times during which it is a party to the facility, Hamilton Re is obligated to pledge to CitiBank Europe cash and/or securities with a value that equals or exceeds the aggregate face amount of its then-outstanding letters of credit.

The Master Agreement contains events of default customary for facilities of this type.

In the facility letter,

Hamilton Re makes representations and warranties that are customary for facilities of this type and agrees that it will comply with certain informational and other undertakings.

On June 23, 2022, the Company and Hamilton Re amended and restated their unsecured credit agreement with a syndication of lenders (the “Unsecured Facility").

Under the Unsecured Facility, the lenders have agreed to provide up to an aggregate of $415 million of letter of credit capacity for Hamilton Re, up to $150 million of which may be utilized for revolving loans to be issued to the Company.

In the facility letter, Hamilton Re makes representations and warranties that are customary for facilities of this type and agrees that it will comply with certain informational and other undertakings.

On June 23, 2022, Hamilton Group and Hamilton Re amended and restated their unsecured credit agreement with a syndication of lenders (the "Unsecured Facility").

At December 31, 2024, there were no loan amounts outstanding under this facility.

Margin rates reflect contractually agreed rates, which are based on Hamilton Re’s current Financial Strength Rating as assigned by A.M.

As of April 30, 2024, letters of credit issued under the facility bear interest at a rate of 137.5 basis points (previously 150 basis points), while revolving loans if issued are subject to a fee of SOFR plus a margin of 162.5 basis points (previously 185 basis points).

To the extent such loans are issued, the available letter of credit capacity shall decrease proportionally, such that the aggregate credit exposure for the lenders under the credit agreement is $415 million.

Amounts unutilized under the facility are subject to a fee of 17.5 basis points (previously 22.5 basis points).

Capacity is provided by Wells Fargo, National Association, Truist Bank, BMO Harris Bank N.A., Commerzbank AG, New York Branch, HSBC Bank USA, N.

1 unchanged sentence

Unless renewed or otherwise terminated in accordance with its terms, the Unsecured Facility is scheduled to terminate on June 23, 2025.

At December 31, 2023, there were no loan amounts outstanding under this facility.

On August 12, 2024, Hamilton Re and HIDAC amended their committed letter of credit facility agreement with Bank of Montreal ("BMO"), with the Company as guarantor, under which BMO agreed to make available a secured letter of credit facility of $50 million for a term that will expire on August 13, 2025.

2 unchanged sentences

The facility bears a fee of 140 basis points on the total available capacity.

In addition, on October 27, 2023, Hamilton Re amended the $230 million unsecured letter of credit facility agreement that it utilizes to provide Funds at Lloyd's ("FAL") ("FAL LOC Facility") to support the FAL requirements of Syndicate 4000.

In addition, on October 28, 2024, Hamilton Re amended the unsecured letter of credit facility agreement that it utilizes to provide Funds at Lloyd's ("FAL") ("FAL LOC Facility") to support the FAL requirements of Syndicate 4000.

Capacity is provided by Barclays Bank PLC, ING Bank N.V., London Branch, and Bank of Montreal, London Branch.

The FAL LOC Facility was increased to $230 million for an additional one year term that expires on October 27, 2024.

The FAL LOC Facility of $230 million was renewed for an additional one year term that expires on October 28, 2025.

The facility bears a fee of 162.5 basis points on the borrowed amount.

1 unchanged sentence

All applicable entities were in compliance with all such covenants at December 31, 2024.

The Company anticipates renewing its existing credit facilities at their stated expiry dates on materially similar terms to the expiring.

Certain of the Company's credit facilities are secured by pledged interests in the TS Hamilton Fund or the Company's fixed income security portfolio or cash.

The Company’s credit facilities at December 31, 2023, and associated securities pledged, were as follows:

($s in thousands) 2023

The Company’s credit facilities and associated securities pledged, were as follows:

($ in thousands) December 31,

Available letter of credit and revolving loan facilities - commitments

4 unchanged sentences

Financial Strength Ratings

The Company’s principal insurance and reinsurance operating subsidiaries are assigned financial strength ratings from internationally recognized rating agencies, including A.M.

Best and Kroll Bond Rating Agency.

These ratings are publicly announced, are available directly from the agencies' websites, and are also published on the Company’s website.

The Company’s principal insurance and reinsurance operating subsidiaries are assigned financial strength ratings from internationally recognized rating agencies A.M.

Best, Fitch Ratings and Kroll Bond Rating Agency.

These ratings are publicly announced, and are available directly from the agencies' websites.

Financial strength ratings represent the independent opinions of the rating agencies as to the relative creditworthiness of a company and its capacity to meet the obligations of its insurance and reinsurance contracts.

Independent ratings are one of the important factors that establish a competitive position in insurance and reinsurance markets.

The rating agencies consider many factors in determining the financial strength rating of an insurance company, including the relative level of statutory surplus necessary to support the business operations of the company.

These ratings are based on factors considered by the rating agencies to be relevant to policyholders, agents and intermediaries and are not directed toward the protection of investors.

Ratings are not recommendations to buy, sell or hold securities.

On May 26, 2023, A.M.

Best, an internationally recognized agency, affirmed its financial strength rating of “A-” (Excellent) and Long-Term Issuer Credit Ratings of “a-” (Excellent) of Hamilton Re and Hamilton Insurance DAC, each a wholly owned subsidiary of Hamilton.

The outlooks on these ratings were changed to "positive" from "stable" on April 22, 2022.

On July 25, 2023, Kroll Bond Rating Agency, an internationally recognized agency, affirmed its insurance financial strength rating of “A” of Hamilton Re and the “BBB+” issuer rating of Hamilton Insurance Group, Ltd.

The outlook on these ratings was changed to "positive" from "stable" on July 6, 2022.

On December 13, 2023, S&P Global, an internationally recognized agency, increased its financial strength rating of the Lloyd's market from "A+" to "AA-" with a stable outlook.

Reserve for Claims and Claim Expenses

Paid and unpaid losses and loss adjustment expenses recoverable

In the normal course of business, the Company seeks to reduce the potential amount of loss arising from claim events by reinsuring certain levels of risk with other reinsurers.

See Critical Accounting Estimates – Ceded reinsurance and unpaid losses and loss adjustment expenses recoverable in the audited consolidated financial statements and related notes thereto included in this Form 10-K for a detailed discussion of the Company’s risks related to ceded reinsurance agreements and the Company’s process to evaluate the financial condition of its reinsurers.

On March 14, 2024, A.M.

Best, an NRSRO, affirmed the Financial Strength Rating of "A-" (Excellent) and the Long-Term Issuer Credit Ratings ("ICR") of "a-" (Excellent) of Hamilton Select.

The rating outlook is "Stable".

On April 30, 2024, A.M.

Best, an NRSRO, upgraded the Financial Strength Rating to "A" (Excellent) from "A-" (Excellent) and the ICR of "a" (Excellent) from "a-" (Excellent) of Hamilton Re and HIDAC, each a wholly owned subsidiary of Hamilton Insurance Group.

The outlook on these ratings was revised to "Stable" from "Positive", also on April 30, 2024.

On July 2, 2024, Fitch, an NRSRO, published Hamilton Re’s Issuer Financial Strength Rating of "A-" (Strong) and Hamilton Insurance Group’s Issuer Default Rating of "BBB+".

The rating outlook is "Stable".

On July 23, 2024, Kroll Bond Rating Agency, ("KBRA"), an NRSRO, affirmed the insurance financial strength rating of "A" of Hamilton Re and the "BBB+" issuer rating of Hamilton Insurance Group.

The outlook on these ratings was changed to "Stable" from "Positive", also on July 23, 2024.

On August 7, 2024, A.M.

Best increased its financial strength rating of the Lloyd's market from "A" to "A+" with a stable outlook.

Our Lloyd’s syndicate benefits from financial strength ratings of "A+" (Superior) from A.M.

Best and "AA-" from each of S&P Global, KBRA and Fitch.

All outlooks on these ratings are "Stable".

On February 7, 2025, Fitch Ratings ("Fitch"), a Nationally Recognized Statistical Rating Organization ("NRSRO"), assigned an Issuer Financial Strength Rating of "A-" (Strong) to HIDAC.

The rating outlook is "Stable".

Reserve for Losses and Loss Adjustment Expenses

Reserve for unpaid losses and loss adjustment expenses

4 unchanged sentences

See Critical Accounting Estimates — Reserve for Losses and Loss Adjustment Expenses for a detailed discussion of losses and loss adjustment expenses.

See Note 9, Reserve for Losses and Loss Adjustment Expenses to the audited consolidated financial statements for the reconciliation of the gross and net reserve for losses and loss adjustment expenses and for a discussion of prior year reserve development.

See Note 8, Reserve for Losses and Loss Adjustment Expenses in the accompanying audited consolidated financial statements for the reconciliation of the gross and net reserve for losses and loss adjustment expenses and for a discussion of prior year reserve development.

Paid and unpaid losses and loss adjustment expenses recoverable

In the normal course of business, the Company seeks to reduce the potential amount of loss arising from claim events by reinsuring certain levels of risk with other reinsurers.

See Critical Accounting Estimates – Ceded reinsurance and unpaid losses and loss adjustment expenses recoverable in the accompanying audited consolidated financial statements and related notes thereto included in this Form 10-K for a detailed discussion of the Company’s risks related to ceded reinsurance agreements and the Company’s process to evaluate the financial condition of its reinsurers.

Contractual Obligations and Commitments

At December 31, 2023, contractual obligations and commitments by period due were:

Payment Due by Year

(Expressed in thousands of U.S.

Dollars) Total Less than 1 year 1-3 years 3-5 years More than 5 years

Contractual obligations and commitments by period due were:

($ in thousands) Payment Due by Year

December 31, 2024 Total Less than 1 year 1-3 years 3-5 years More than 5 years

$ 150,000 $ 150,000 $ — $ — $ —

8 unchanged sentences

(1) Estimated debt payments have been calculated in the above table with reference to the interest rate in effect at December 31, 2024.

Refer to Note 11, Debt and Credit Facilities in the audited consolidated financial statements for further details.

Refer to Note 10, Debt and Credit Facilities in the accompanying audited consolidated financial statements for further details.

(2) Losses and loss adjustment expenses are presented gross of estimated recoveries.

1 unchanged sentence

Refer to Critical Accounting Estimates, Losses and Loss Adjustment Expenses for further detail.

(3) Refer to Note 16, Commitments and Contingencies for further detail on our lease commitments.

(3) Refer to Note 15, Commitments and Contingencies in our audited consolidated financial statements for further detail on our lease commitments.

Transactions with Related Parties

The discussion of transactions with related parties is included in Note 17, Related Party Transactions in the Company’s audited consolidated financial statements.

The discussion of transactions with related parties is included in Note 16, Related Party Transactions in the accompanying audited consolidated financial statements.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis