Hamilton Insurance Group, Ltd., a Bermuda based specialty insurance and reinsurance company, has reported higher third-party capital fee income generated by activities under its Ada Capital Management unit in the first-quarter of 2026, while the income may continued to rise this year thanks to the recent casualty sidecar launch from the firm.
Ada Re is a Bermuda based special purpose insurer funded by third-party investors, that provides fully-collateralized reinsurance and retrocession to both Hamilton Group and third party cedants.
Hamilton launched its first venture into casualty insurance-linked securities last month, as it revealed a partnership with investment firm Sixth Street and a plan to cede around $300 million of premium to its first casualty reinsurance sidecar over the multi-year duration of the structure.
It’s not clear how much of a factor that new sidecar was in the first-quarter of the year, having only been announced in mid-April.
But, whether this casualty sidecar was active or not, Hamilton’s activities under Ada Capital Management and Ada Re still drove much higher income in Q1 2026.
The company reported that third party fee income generated through management and performance based fees recognised by Ada Capital Management Limited for its services to Ada Re, Ltd. rose by $3.9 million in the first-quarter, from $0.3 million for the three months ended March 31st 2025 to $4.2 million for the three months ended March 31st 2026.
Total third-party capital fee income, which also includes fees related to third-party syndicate activities and consortia, rose from almost $4.7 million in Q1 2025 to almost $6.8 million in Q1 2026. It’s clear Ada Capital activities were the main driver of rising fee income for Hamilton.
The fee income helps to offset the other underwriting expense ratio for Hamilton and this decreased by 3.6 points for its Bermuda underwriting operation in Q1, which again seems likely to have largely seen benefits from Ada Capital flowing through for the company.
Given the recent launch of Hamilton’s first casualty sidecar structured under Ada Re, it’s likely we’ll see the fee income continuing to rise over coming quarters and it will be interesting to see how meaningful this can become for the re/insurer.
