In our previous briefing note from December 2023, we discussed the significant decline in the number of non-life Part VII transfers sanctioned in recent years and considered whether this trend was likely to continue. This update highlights the key developments from 2024 and anticipates future trends for 2025.
Developments in 2024
As discussed previously, 2023 saw just two non-life Part VII transfers sanctioned, the fewest since the early 2000s. Similarly, 2024 also saw two transfers sanctioned. However, recent months have shown a marked increase in inquiries concerning Part VIIs, with several potential transfers currently in preparation. We anticipate that 2025 will see a significant uptick in non-life Part VII transfers.
The two transfers that that were sanctioned in 2024 were:
- FM Global UK company transfer: This transferred the business of FM Global’s UK company into a new UK branch of its Luxembourg-based entity. The primary motivation was to achieve operating efficiencies across Europe, enabling FM Global to operate as a single European entity, similar to its pre-Brexit structure.
- Pinnacle Insurance non-pet transfer: Pinnacle Insurance transferred its non-pet business to EIFlow, an insurance company managed by the Quest Group. This strategic move allowed Pinnacle to refocus its business entirely on pet insurance.
