The IPO Buzz: Hamilton Insurance Group (HG) Sets Terms for $255 Million IPO

Bermuda-based Hamilton Insurance Group, Ltd. (HG proposed) launched its $255 million IPO early today (Wednesday, Nov. 1, 2023) by disclosing terms: 15.0 million Class B common shares at $16.00 to $18.00. (Source: S-1/A filing dated Nov. 1, 2023) The IPO is scheduled for pricing next week – on Thursday night, Nov. 9, to trade Friday, Nov. 10, on the New York Stock Exchange.

Barclays and Morgan Stanley are the global coordinators of the joint book-running team, which includes Citigroup and Wells Fargo Securities.

If the IPO is priced at the $17.00 mid-point of its range, Hamilton Insurance Group would have a valuation – or market capitalization – of $1.87 billion.

Of the 15.0 million shares in the IPO, the company is offering 6.25 million shares and selling stockholders are offering 8.75 million shares. Hamilton Insurance Group will not receive any proceeds from the sale of the selling stockholders’ shares.

Hopkins Holdings, LLC, a shareholder, and certain directors of Hamilton Insurance Group have given non-binding indications of interest that they may buy up to about 260,000 Class B common shares.

Hamilton Insurance Group is a global specialty insurance and reinsurance company founded in Bermuda in 2013.

The company is profitable: Net income of $87.42 million on revenue of $1.2 billion for the 12 months that ended June 30, 2023, according to the prospectus.

In the prospectus, Hamilton Insurance Group describes its business as follows:

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):

“*International: Accounting for 57% of gross premiums written for the year ended Dec. 31, 2022, 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 and Hamilton Insurance DAC (“HIDAC”). Syndicate 4000, a leading Lloyd’s syndicate, generates a significant portion of premium from the U.S. Excess & Surplus (“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. E&S market. We believe it presents meaningful and profitable growth opportunities in the near to long term, further expanding our footprint in the U.S. E&S market.

“*Bermuda: Accounting for 43% of our gross premiums written for the year ended Dec. 31, 2022, Bermuda consists of the Hamilton Re platform, made up of Hamilton Re, Ltd. (“Hamilton Re”) and Hamilton Re US. Hamilton Re writes property, casualty and specialty reinsurance business on a global basis and also offers high excess Bermuda market specialty insurance products, predominantly for large U.S. commercial risks. Hamilton Re US writes casualty and specialty reinsurance business on a global basis.”

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