Hamilton Insurance Group Debuts with $1.68 Billion Valuation

The Bermuda-based firm's stock commenced trading at $15.25, slightly above the initial public offering (IPO) price of $15.

Hamilton Insurance Group (HG.N) achieved a valuation of $1.68 billion as its shares eked out a 1.7% gain in a lukewarm market debut on Friday, highlighting subdued investor interest in new listings.

The Bermuda-based firm’s stock commenced trading at $15.25, slightly above the initial public offering (IPO) price of $15. The IPO involved the sale of 15 million shares, generating $225 million in proceeds.

Hamilton’s IPO launch came on the heels of a wave of significant market debuts in September and October, sparking optimism for a rebound compared to the previous year, when escalating interest rates and geopolitical tensions had weighed down new listings.

Several prominent companies, including British chipmaker Arm Holdings, grocery delivery app Instacart (CART.O), marketing automation firm Klaviyo (KVYO.N), and luxury sandal maker Birkenstock (BIRK.N), entered the market, all aiming for generous valuations.

Nevertheless, financial experts and legal advisors interviewed by Reuters had suggested that companies should adopt more conservative valuations in their IPOs to attract investors with attractive offers, as many major listings were trading below their IPO prices.

Avery Spear, senior data analyst at Renaissance Capital, remarked, “Recent large listings have shown that there is still some contention over valuation, and their receptions have made it clear that premium multiples aren’t a given like they were in 2021.”

Hamilton Insurance, founded in 2013, specializes in underwriting specialty insurance and reinsurance risks on a global scale through its wholly owned subsidiaries.

This year, investors have displayed a keen interest in insurance and reinsurance firms, with shares of Skyward Specialty Insurance (SKWD.O) soaring since its January debut. Reinsurer Everest Group (EG.N) also successfully raised approximately $1.5 billion.

This heightened optimism in the insurance sector has driven the S&P Insurance Select Industry index (.SPSIINS) up by 5% this year.

Additionally, the Renaissance IPO index (.FTIPOUSA), tracking major listings’ performance, has surged by about 24%.

Barclays and Morgan Stanley have been appointed as the lead underwriters for Hamilton Insurance’s offering.