The Baldwin Group has launched Azimuth Re Ltd., a member-owned group captive developed in partnership with Innovative Captive Strategies.
Azimuth is structured to bring together high-performing contractors seeking greater control and long-term stability in managing risk. It targets construction companies that pay $250,000 or more annually in workers' comp, general liability and commercial auto premiums. The captive includes a $350,000 retention level, aligning member interests around safety performance and long-term financial outcomes.
The move reflects growing interest among contractors in alternative risk financing as traditional markets adjust pricing and capacity amid persistent loss pressures.
The construction sector has faced sustained underwriting challenges in recent years, with escalating loss costs in workers’ compensation and liability lines, supply chain-related delays in property repairs, and increased litigation activity cited as drivers of higher premiums and tighter capacity.
As brokers and carriers recalibrate pricing to account for these trends, some insureds have turned to captives and other alternative risk financing strategies to lock in more predictable cost structures and participate in underwriting results.
Industry data showed that construction accounts for a disproportionate share of commercial insurance loss costs, partly due to the high severity of liability claims and the complex risk landscape for large worksites. Group captives have grown in popularity as carriers and brokers seek to address these pressures, with the number of captive formations in the US and Bermuda increasing among insured groups that meet rigorous underwriting and risk management requirements.
“In today’s ultra-competitive construction environment, the strongest contractors are those who can most effectively balance growth, risk, and profitability with precision and discipline,” said Andy O'Brien, partner at The Baldwin group. “As we move forward through 2026 and beyond, we anticipate volatility across many critical sectors of the construction insurance market. By creating a peer group of best-in-class contractors and equipping them with industry-leading risk management, claims, and safety advisory, we’re building a model designed to outperform the standard insurance market while empowering our clients to transform risk management discipline into a competitive advantage.”
Azimuth Re's launch highlights a broader trend toward alternative risk solutions as traditional markets navigate volatility in pricing and capacity.
Captives offer sophisticated insureds not only potential cost savings but also enhanced engagement in loss prevention and claims management. This may be particularly appealing in sectors like construction, where large losses and frequency spikes can challenge standard market coverage.
Group captives also reflect an industry shift toward data-driven risk selection and performance benchmarking, enabling members to share best practices in safety and claims mitigation. As construction activity fluctuates with economic cycles, brokers that can integrate captive solutions with traditional placement and risk consulting services may be better positioned to retain key accounts and differentiate their offerings.
By introducing Azimuth Re, The Baldwin Group said it aims to help contractors navigate ongoing market pressures while building long-term stability and performance visibility across their insurance portfolios.
