Vantage Partnership Capital (AdVantage) generated $23m of fee income in Q2 2026

The third-party reinsurance capital platform of Bermuda headquartered re/insurer Vantage Risk, recently acquired by the Bill Ackman linked Howard Hughes Holdings, generated $23 million of fee income from its insurance-linked securities style partnerships with investors in the second-quarter of 2026.

It’s the first visibility of the profitability of the Vantage Partnership Capital operation, which undertakes its business through the AdVantage platform of companies.

This part of the business operates utilising Bermuda based collateralized reinsurance company AdVantage Reinsurance Bermuda Ltd., while licensed insurance agent AdVantage Capital Advisors Ltd. underwrites the risks alongside Class 4 re/insurer Vantage Risk Ltd. for the strategies it offers to third-party institutional investors.

Recall that, the first signs of Vantage Risk’s entry into third-party reinsurance capital management for investors came in early 2021, after the company established AdVantage Retro I Ltd. as a collateralized insurer class of company in Bermuda.

That structure is now the AdVantage Reinsurance Bermuda Ltd. collateralized reinsurer after a name update and operates as the main risk-bearing structure for the quota share and other arrangements it facilitates through segregated accounts supported by third-party capital.

The AdVantage platform provides a way for Vantage Risk to partner with investors and share in the risks and returns of its underwriting with them.

When Howard Hughes Holdings announced its acquisition of Vantage Risk, its senior executives explained that AdVantage and the Vantage Partnership Capital business is seen as an attractive “high-margin, asset-light fee stream.”

Bill Ackman himself stated on AdVantage that it is appealing because it is “an asset management business, you have third-party capital, and you get a management fee and a piece of the upside.”

Ackman further said, “That’s a very high ROE business, and that’s a business that today has about a billion and a half of third party capital. You know, one of the things that we’re good at is raising third-party capital.

“That business has been run very, very effectively by Vantage’s team, and it could deploy a lot more capital.

“That’s one of the ways we can help make Vantage a more valuable company, is by growing the third-party assets in that operation.”

AdVantage deployed $1.5 billion of third-party investor capital through its reinsurance strategies and partnerships in 2024 and 2025.

Now, we’ve learned, that for the 2026 calendar year, the Vantage Partnership Capital business, operating through the AdVantage structures, has a higher $1.6 billion of capital to deploy.

Up to now, we haven’t had an visibility of the profitability of the AdVantage Partnership Capital business for its owners, but Howard Hughes Holdings has now disclosed some fee income data, perhaps a further signal of the fact it sees this as an important component of the Vantage group operations and one it wants to grow.

For the second-quarter of 2026, the first quarter where Vantage results have been more clearly reported on, Howard Hughes Holdings disclosed $23 million of net fee income earned under the insurance-linked securities (ILS) business of Vantage’s Partnership Capital operations, where it underwrites insurance and reinsurance risks for third-party investors.

For the first-half of the year, net fee income is reported as $34 million, suggesting a meaningful acceleration in Q2 compared to the first three months of the year.

It seems there could be some prior-year fees that have been recognised in the second-quarter of 2026 though, as Howard Hughes Holdings reported, “Higher variable fee income of $26m on 2024-2026 underwriting years drove ILS related fee income significantly above prior year.”

With plans to grow the business and available third-party capital to deploy rising to $1.6 billion for 2026, it’s going to be interesting to see how any future fee income disclosures compare.

A scaled AdVantage Partnership Capital business has the potential to drive meaningful additional earnings for Howard Hughes Holdings over-time, especially if it can attract more third-party investor capital to enable it to share in more risk from Vantage’s underwriting.

That would help Vantage elevate its relevance in the insurance and reinsurance market, by tapping investor appetite to participate in the relatively uncorrelated returns of its underwriting businesses.

These activities can drive the asset-light stream of fee income, that are found so attractive, while also increasing Vantage’s underwriting capacity at the same time and enabling it to optimise its portfolios, with the help of third-party capital investors.