Morgan Stanley Raises Hamilton Insurance Group (HG) PT to $21 Amid Optimistic Outlook

Hamilton Insurance Group Ltd. (NYSE:HG) is one of the most profitable new stocks to buy now. On July 14, Morgan Stanley raised its price target for Hamilton Insurance from $20 to $21 per share, while maintaining an Equal Weight rating on the shares. This indicates a slightly more optimistic outlook for the company’s valuation.

Despite global catastrophe losses, the company reported a net income of $81 million in Q1 2025. Gross premiums written increased by 17% due to growth in both its Bermuda and International segments. The company also saw strong investment returns, which totaled $167 million and helped offset catastrophe losses.

However, the company experienced a high catastrophe loss ratio of 30.2% primarily due to the California wildfires. The combined ratio increased to 111.6% from 91.5% in the previous year, mainly attributed to these catastrophe losses. The expense ratio also rose by 1.2 points to 32.4%, driven by higher acquisition costs and changes in business mix. The Bermuda segment specifically incurred an underwriting loss of $59 million, which resulted in a combined ratio of 122.8% due to catastrophe losses.

Hamilton Insurance Group Ltd. (NYSE:HG) is a specialty insurance and reinsurance company in Bermuda and internationally.

While we acknowledge the potential of HG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.