Hamilton Insurance CEO Albo unfazed by market cycle and remains bullish on E&S 

CEO Pina Albo has hailed the ‘phenomenal market reception’ to their excess and surplus lines platform, believing there is much more to come from Hamilton Insurance Group in that part of the market. 

In a Voice of Insurance podcast interview, host Mark Geoghegan questioned whether the E&S market was ‘past its peak’.

Geoghegan speculated: “Perhaps at a very, very macro level the market’s past its peak.

“And oftentimes in the past, that has meant that E&S might be past its peak – the admitted lines market might start getting stronger and start retaining more business.”

However, Albo said this was not just a cyclical shift to the E&S market, but a structural one. 

Importantly, Hamilton had the range to serve the E&S market through all three of its main platforms. 

She said: “Although the amount of growth may have slowed down just in recent quarters, the trend line is only in one direction, and that direction is to not admit it, where you have certain benefits, like the freedom of rate and form.”

Hamilton Insurance Group background 

Founded in 2013, Hamilton Insurance Group is based in Bermuda. It underwrites specialty insurance and reinsurance risks worldwide through its subsidiaries.

It has three main platforms: Hamilton Global Specialty, Hamilton Select and Hamilton Re.

Global speciality focuses on a broad range of risks ranging from space insurance to accident and health.

Launched in 2022, Hamilton Select targets small to mid-sized risks, which Albo highlighted when praising the ‘phenomenal market reception’ within that segment of the E&S space.

Hamilton Re serves the reinsurance market, again covering a broad range of risks including property, casualty, financial lines and specialty lines.

The company has five offices in the UK & Ireland, Bermuda and the United States. 

Strategy is based on several pillars: data-driven and disciplined underwriting; strategic growth via its three platforms; tech enablement through proprietary ownership and partner collaboration; attracting and retaining top talent. 

On talent, Albo said Hamilton aimed at ‘providing them a culture where they have responsibility, accountability and an ownership’.

Last year, Hamilton received a boost when AM Best upgraded the financial strength rating of the group’s key subsidiaries to “A” (Excellent) from “A-” (Excellent).

The rating will underpin Hamilton as it seeks to grow. 

Hamilton likes to support clients with small shares on the risk, gradually increasing over time. It only supports ‘a very small number of MGAs’ through its speciality platform, Albo stated. 

Albo added: “Lloyds gives us global access, Bermuda gives us global access. And we’re in the very important market in the US. 

“Our strategy will be to continue adding product to these platforms, as we have done historically.”

Another feature to the group is its Ada Re, which provides fully collateralised reinsurance and retrocessional capacity.

Geoghegan asked whether it was fair to call it as something that ‘doesn’t look like it’s a big priority strategically’.

But Albo batted away that notion: “It’s allowed us to service a very broad need of our clients without placing that business on our balance sheet.”

Successful stock market story

A striking feature to the Hamilton story is the success it has enjoyed since going public two years ago.

The share price has increased 75% since the launch.

Albo explained how the preparation before the listing helped get the firm into shape. 

Before the IPO, the company underwent a multi-year transformation, enhancing talent, refining underwriting, and expanding business. 

Key steps included the acquisition of Pembroke Managing Agency, reducing legacy exposures and expenses, and investing in technology. 

Albo concluded: “All of that led to us having a much stronger balance sheet, having reduced earnings volatility, having improved profitability and growth prospects, and that led to the successful IPO, and also the success in our share price since we did go public.”

AI words of wisdom 

The conversation moved onto artificial intelligence. Hamilton is piloting tasks. 

AI has shown usefulness in automating tasks, extracting data, summarising data, assisting and making operations more efficient, Ablo summarised. 

She opined: “You’ve got to make sure that your AI strategy is completely aligned with your business strategy, otherwise you can get lost in possibilities and, quite frankly, also in cost. 

“So, it’s very important to prioritise. It’s important to bring your people along, make sure that they are part of the journey, as opposed to fearing what’s coming for them. 

“And then I think the third thing that we look at, as well are what are potential pitfalls that we have to think about.”