Form 4: Hamilton Insurance Group Executive Receives Stock Grants and Performance-Based Shares

Megan Jane Thomas, CEO of Hamilton Re, received restricted stock units and performance stock units in Hamilton Insurance Group, Ltd.

Summary

• Megan Jane Thomas, CEO of Hamilton Re, received 29,319 restricted stock units (RSUs) and 34,575 performance stock units (PSUs) in Hamilton Insurance Group, Ltd.
• The RSUs vest in equal installments on March 1, 2026, 2027, and 2028.
• Each RSU represents the right to receive one share of HG Class B Common Shares upon vesting.
• The PSUs were earned based on Hamilton Insurance Group's annualized underwriting return on capital of 6.1% for the 3-year performance period ending December 31, 2024, resulting in a payout at 146.4% of target.
• Following these transactions, Thomas beneficially owns 248,355 Class B Common Shares directly and 282,930 Class B Common Shares directly.

Sentiment

Score: 7

Explanation: The document indicates positive performance (6.1% return on capital) and standard executive compensation practices, suggesting a moderately positive outlook.

Positives

• The vesting of RSUs and PSUs aligns the executive's interests with the long-term performance of Hamilton Insurance Group.
• The achievement of a 6.1% annualized underwriting return on capital demonstrates strong performance by Hamilton Insurance Group.

Future Outlook

The RSUs will vest over the next three years, aligning the executive's compensation with the company's future performance.

Industry Context

Equity grants are a common practice in the insurance industry to incentivize executives and align their interests with those of shareholders. Performance-based equity awards, like the PSUs, are designed to reward executives for achieving specific financial goals.

Comparison to Industry Standards

• Companies like Chubb, AIG, and Travelers also utilize equity-based compensation for their executives.
• The specific vesting schedules and performance metrics vary by company, but the general principle of aligning executive compensation with shareholder value is consistent across the industry.
• A 6.1% annualized underwriting return on capital is a solid performance metric, but it would need to be compared against the peer group average to determine if it is above or below industry standards.

Stakeholder Impact

• Shareholders benefit from the alignment of executive compensation with company performance.
• Employees may be motivated by the company's achievement of performance targets.

Key Dates