AIRROC Update

Insurance & Reinsurance News

Latest Market Updates

Alternative capital flat at $100bn high at mid-year 2023: Aon

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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)

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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

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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

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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

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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

Estimated global non-life run-off reserves rise 11% to US$960bn

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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

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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

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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

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 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

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“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

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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

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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

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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

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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

NAIC Adopts New Rule Allowing Rebating

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The NAIC Executive Committee unanimously adopted an amendment to the NAIC Unfair Trade Practices Model Act (Model Law #880) on December 9, 2020.  This amendment will allow insurers and producers to “rebate” consumers.  With the exception of California and Florida, and until most recently, states have enforced strict anti-rebating laws, considering non-compliance as a serious … [Read more...] about NAIC Adopts New Rule Allowing Rebating

Finality at Last. The First U.S. IBT is Complete

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By On October 15th, 2020, the Oklahoma County District Court entered a Judgment and Order approving the first ever Insurance Business Transfer (“IBT”) in the United States.1 Much has been written and debated about the fledgling IBT process in the U.S.; concerns have been raised; perceived risks have been articulated, but now that a transaction has actually been completed, it is … [Read more...] about Finality at Last. The First U.S. IBT is Complete

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