Rosh Capital Management is to set up a new reinsurer in Bermuda, backed by $600 million of family office capital.

Reports in trade publications suggest Rosh Re Ltd will have an investment-oriented approach.

Rosh Re’s lead investor, providing $600 million of backing, is WM Holding AG, a family office of industrial investor Ajay Kumar.

Michael Jacobs, chief executive officer of Rosh Capital Management LP, was quoted by risk transfer website as saying: “I’m delighted to have the support and backing of Ajay and his team. We are ideally positioned to create exceptional shareholder value with modest risk and volatility while diligently managing risk on both sides of the balance sheet.”

Rosh Re will underwrite global and diverse specialty casualty lines of reinsurance business, the company said.

It will also provide “bespoke rehabilitative solutions” designed to “help insurers leverage surplus relief and free their capital to deploy in the hardening market”.

Mr Kumar said: “I am excited to invest in Rosh Capital Management LP’s differentiated reinsurer and to partner with Michael and his team.

“I have been seeking to capitalise on the exceptional opportunity this hardening market brings and found Michael’s unique strategy compelling and unlike any I have seen in the reinsurance space.

“His strategy benefits from the hardening market while managing insurance and investment risk to generate optimal value throughout the cycle. We are cautious in how we deploy our capital and felt strongly that Rosh’s strategy strikes the right balance.”

Maamoun Rajeh, an Arch Capital reinsurance executive, estimated the capital influx into re/insurance this year at about $12 billion, most of it being invested in existing platforms.

Re/insurers are seeing opportunities to capitalise on rising rates, while some want capital to shore up their balance sheets amid uncertainty over the extent of pandemic-related claims.