Hamilton's Q3 fees from the Ada Capital third-party platform saw continued growth.

Hamilton, the Bermuda-based insurance and reinsurance holding company, continued to generate positive performance fees in Q3 2024 through its Ada Capital Management platform and Ada Re collateralized reinsurance vehicle.

Performance fees have been steadily rising throughout the year, with total fee income from the Bermuda segment reaching nearly $6.4 million for the first nine months of 2024, a significant increase from $336,000 during the same period in 2023.

Hamilton launched Ada Capital Management in 2020 as a retro-focused collateralized underwriting agent, with Ada Re Ltd. serving as the Bermuda-registered special purpose insurer (SPI) for these strategies. The Ada Capital platform partners with institutional investors to share underwriting performance, forming the backbone of Hamilton’s third-party capital management and insurance-linked securities (ILS) business.

In 2023, Hamilton disclosed $8.55 million in third-party fee income from the Bermuda segment, up from just $200,000 in 2022, largely driven by performance-based management fees from Ada Capital. This momentum has continued into 2024, with $3.9 million in fees recorded in Q1, $2.2 million in Q2, and $294,000 in Q3. While the Q3 figure reflects some impact from catastrophe activity, the overall performance remains robust.

Hamilton also noted that Ada Capital performance fees helped offset underwriting expenses, reducing its expense ratio slightly for the quarter, further highlighting the platform’s contribution to the company’s financial performance.