Non-life insurance run-off deals Q1 2018

The global non-life insurance run-off market has remained very active in Q1 2018, following the 38 publicly announced deals involving 13 different buyers in 2017.  This run rate is currently outpacing what the respondents to our Global Insurance Run-off Survey 2018 predicted would be seen over two years. 

The deal landscape has featured a varied mix of business, with underwriting years as recent as 2017 being transacted across multiple lines, including:

• Motor third party liability
• Speciality construction
• Legal expenses
• Captives and risk retention groups

Perhaps the biggest surprise is that in Q1 2018 there was not a single deal announced involving a material amount of asbestos, pollution and other health hazards (“APH”) liabilities that have been the traditional lines associated with legacy deals.

This is further evidence of the willingness of sellers to look at legacy business more widely, as disposals are seen as an attractive option to improve capital and operational efficiencies.  With 20-plus active buyers of run-off business globally, and many deals being completed on portfolios rather than whole companies, the non-life run-off acquisition environment is as active as ever.  This underlines that disposal can be a vital and valuable part of the insurance life-cycle.

If you have any questions about what we've discussed, please get in touch.