Hamilton Insurance Group (NYSE:HG) received two Outperform ratings on Tuesday, signaling a significant milestone following its recent IPO debut. The ratings come less than a month after the company went public.
Market Outperform ratings were assigned by JMP analyst Matthew Carletti who lauded Hamilton’s strong positioning amid the current robust conditions in the specialty and reinsurance lines of business. Carletti noted, “We believe Hamilton (HG) is well positioned to take full advantage of prevailing hard market conditions across the specialty and reinsurance lines of business.”
BMO Capital Markets analyst Michael Zaremski also bestowed an Outperform rating, highlighting Hamilton’s portfolio built during a period of “hard market/pricing power” and the low insurance claim frequency/volume in the pandemic years 2020 and 2021.
Zaremski, however, cautioned that investors might take time to overlook Hamilton’s pre-2023 low single-digit RoE track record, which mainly relied on investment income rather than a robust sub-100% combined ratio profit margin.