Risk capital and reinsurance intermediary Augment Risk and asset manager Cohen & Company have formed a joint venture aimed at improving the connection between reinsurance clients and insurance-linked securities (ILS) capital.
The initiative seeks to increase efficiency in the reinsurance sector by integrating ILS capacity with traditional reinsurance practices.
The new venture is structured to provide cedants with access to secure ILS capacity for casualty business, with terms designed to accommodate a range of insurance portfolios. The arrangement also facilitates capacity alignment with traditional placements and claims processes, which is expected to improve both the speed and reliability of placements.
The launch of this joint venture comes at a time when the global reinsurance industry is experiencing a significant increase in available capital. According to Gallagher Re, reinsurance industry capital reached US$805 billion at mid-year 2025, marking a 4.8% increase from the revised full-year 2024 figure.
This growth in capital has occurred even as the underlying return on equity (ROE) for a group of 16 reinsurers declined to 12.6%, compared to 15.2% for the same period last year. The reported ROE remained at 17.7%, down from 19.6% at the 2024 half-year mark.
The broader reinsurance market has also seen a surge in catastrophe bond issuance, reaching record levels in the first half of 2025. This influx of new sponsors and alternative capital has expanded the risk transfer options available to both insurers and reinsurers.
Andrew Matson (pictured above), CEO of Augment Risk, said the collaboration with Cohen & Company represents a significant development for the industry.
“This joint venture unlocks new capital sources for our clients while providing Cohen’s insurance strategy access to a diversified portfolio of low-volatility business,” Matson said. He noted that the model aims to improve outcomes for clients and deliver value for investors through portfolio diversification.
Initial efforts for the joint venture are concentrated in the US, Bermuda, and Europe. The companies plan to expand into additional markets as demand increases.
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