After significant rate reductions throughout 2023 and early 2024, median rates are no longer dropping as drastically as they have over the last 3 years which is in line with our expectations given the significant reductions that have already taken place. Nonetheless, our initial data for H1 2024 indicates 72% of our clients that renewed in Q2 saw their primary rates decrease … [Read more...] about GB D&O Market Update H1 2024
Latest Market Updates
Augment Risk hires legacy expert Paul Corver as Advisor
Reinsurance broker Augment Risk has announced that Paul Corver, formerly of R&Q Insurance Holdings (R&Q), will join the firm as an Advisor. Corver brings deep experience and insights in the reinsurance industry to the broker as it looks to strengthen its legacy build-out. He retired from his position as Group Head of Legacy M&A at R&Q in April 2023. He was … [Read more...] about Augment Risk hires legacy expert Paul Corver as Advisor
Best Practice Handling for Legacy Claims
KEY FINDINGS • 62% of carriers globally say that legacy claims challenge profitability and operational efficiency. • General liability claims managed by Gallagher Bassett saw a 34% lower duration to close in North America. • 69% of carriers in North America have increased premiums due to the impact of social inflation. Legacy claims and their impact Legacy claims … [Read more...] about Best Practice Handling for Legacy Claims
Global Insurance Run-Off Survey 2023
https://player.vimeo.com/video/928071878?h=a317416669 https://player.vimeo.com/video/928071342?h=fa7dc337db The PwC 2023 Global Insurance Run-Off Survey is here! The key takeaway is that the global non-life run-off reserves are estimated to exceed $1 trillion, yes that’s $1 trillion. Read Here... … [Read more...] about Global Insurance Run-Off Survey 2023
Congress Reflection
Success is best when shared. Check out IRLA’s flipbook reflection on this year’s Congress. Read More... … [Read more...] about Congress Reflection
Alternative capital flat at $100bn high at mid-year 2023: Aon
Alternative reinsurance capital, largely deployed in insurance-linked securities (ILS) formats, remained static at its $100 billion at the mid-point of 2023, according to insurance and reinsurance broker Aon. The latest analysis of global reinsurance capital from Aon’s Reinsurance Solutions division, presented just prior to the annual Monte Carlo Rendez-Vous reinsurance … [Read more...] about Alternative capital flat at $100bn high at mid-year 2023: Aon
Global Life and Health Insurance Mergers and Acquisitions (M&A)
Each year, Milliman studies the trends in mergers and acquisitions (M&A) of global health and life insurance companies, with a particular focus on data and deals in North America, Europe, and Asia. In 2022, life and health insurance transaction activity was down sharply. Our research points to the likely causes and projects the landscape for future life and health insurance … [Read more...] about Global Life and Health Insurance Mergers and Acquisitions (M&A)
Legacy Roundtable and Survey 2023
I have moderated our annual legacy roundtable for several years now, and there is a comforting familiarity which comes with it. Because in many ways, it is pretty much always the same. The occasion – the annual IRLA gathering – is the same. The venue – the Brighton Grand – is the same. And one thing you can always guarantee is that the conversation at this roundtable is … [Read more...] about Legacy Roundtable and Survey 2023
Non-life insurance run-off deals review Q1 2023
Q1 2023 saw a number of super-sized non-life runoff transactions being announced continuing the trend observed in our 2022 year-end Deals review. 11 deals in total were disclosed in this period, whilst an estimated combined US$6.7bn of gross reserves was transferred to legacy market participants. This estimate represents a record high for any one quarter and equates to 83% of … [Read more...] about Non-life insurance run-off deals review Q1 2023
Observations on the Banking Crisis of 2023
The unprecedented events of the last two weeks in the banking industry have been breathtaking. As the banking and capital markets turn their focus to the Federal Reserve and Washington, the crisis of confidence that has ping-ponged between California, New York and Switzerland has caused many clients and investors to change their relationships in the banking world. Let’s review … [Read more...] about Observations on the Banking Crisis of 2023
US NAIC Fall 2022 National Meeting Highlights
The US National Association of Insurance Commissioners (“NAIC”) held its National Fall Meeting from December 12 through December 16. Check out Mayer Brown’s updates from the US NAIC Fall 2022 National Meeting. Read More... … [Read more...] about US NAIC Fall 2022 National Meeting Highlights
Estimated global non-life run-off reserves rise 11% to US$960bn
Global non-life run-off reserves estimated to have reached US$960bn An additional estimated US$68bn of legacy liabilities are held on the balance sheets of non-insurance corporations Loss portfolio transfers and adverse development covers predicted to be at the heart of future transaction activity Run-off activity at Lloyd’s and US insurance business transfers also … [Read more...] about Estimated global non-life run-off reserves rise 11% to US$960bn
Number of completed mergers and acquisitions rose in 2021: Clyde & Co
The number of completed merger and acquisition deals in the insurance sector last year leaped from 407 to 418, according to Clyde & Co’s latest Insurance Growth Report. The report said that the surge was driven by a particularly strong second half of the year, which saw 221 deals, up from 197 in the first six months. The Americas remained the most active region for … [Read more...] about Number of completed mergers and acquisitions rose in 2021: Clyde & Co
2022 insurance industry forecast: trends and future risks
Resilience will be the overarching theme for 2022. However, whilst last year necessitated a faster pace of change than was perhaps ideal, looking forward, insurers will want to continue to adapt to protect their operations, market and promote customer retention. Customer demand for more interactive and efficient digital platforms and products is set to continue, which will … [Read more...] about 2022 insurance industry forecast: trends and future risks
Arkansas Insurance Department Lauds New Insurance Business Transfer Law
LITTLE ROCK, Ark. – Earlier this spring, Arkansas joined a handful of U.S. states in adopting the new insurance business transfer model called the Insurance Business Transfer (IBT) Act. The law provides insurance companies an organized and efficient process to transfer blocks of insurance business from any jurisdiction to another insurance company in Arkansas, benefiting … [Read more...] about Arkansas Insurance Department Lauds New Insurance Business Transfer Law
Insurance M&A deals reach $24.6B in first-half 2021
“The pace and magnitude of insurance dealmaking continued to accelerate in the first half of the year as sellers look to capitalize on the high valuations driven by strong demand for insurance businesses,” Mark Friedman, PwC insurance deals leader, said in a statement. (Photo: nespixt/Adobe Stock) Five megadeals in the first half of 2021 are just the beginning of what’s … [Read more...] about Insurance M&A deals reach $24.6B in first-half 2021
States introduce changes to promote legacy deals for insurance sector
Mergers and acquisitions among ongoing insurance sector companies are triggering more interest in runoff transactions to seal off old liabilities, and the trend has been boosted by legislation in various states seeking to simplify the process. Legislation passed in 2018 in Oklahoma led to the first transaction being approved in the state last year and several other states … [Read more...] about States introduce changes to promote legacy deals for insurance sector
Buoyant insurance M&A market rolls on amid abundant capital, hardening rates
Mergers and acquisitions activity in the insurance sector was strong in 2020 despite COVID-19 and is expected to remain robust in 2021 as rising commercial insurance rates bolster earnings, making insurers attractive targets, and “deployable capital” remains abundant, analysts and others say. Insurance technology investments have also grown, providing another avenue to enter … [Read more...] about Buoyant insurance M&A market rolls on amid abundant capital, hardening rates
DeepOcean: The UK’s First Cross Class Cram Down Restructuring Plan
On 28 January, the English High Court handed down the first ever judgment sanctioning a restructuring plan under Part 26A of the Companies Act 2006 (“CA 2006”) (“Plan”) invoking the new cross class cram down procedure introduced into UK law in June 2020. Trower J’s judgment in the DeepOcean restructuring has been highly anticipated, and is the first time the court has set … [Read more...] about DeepOcean: The UK’s First Cross Class Cram Down Restructuring Plan
New German Restructuring Regime (StaRUG): An Introductory Guide
The new German stabilizing and out of court restructuring regime came into effect on 1 January 2021. The “Stabilization and Restructuring Framework of Companies Act”, known as StaRUG1 , heralds a new phase in the German restructuring landscape, introducing a framework of tools including a new restructuring plan, which will enable debtors to restructure and cram down minority … [Read more...] about New German Restructuring Regime (StaRUG): An Introductory Guide
