Lloyd’s could become one of the legacy market’s next meaningful growth opportunities, as softening pricing conditions push managing agents to look for ways to release trapped capital from old years of account.
Despite Lloyd’s long-established reinsurance-to-close (RITC) framework, around 75% of syndicates have never undertaken a legacy transaction, according to Aon.
Rizwan Rahman, a partner at CMS, described Lloyd’s as an “untapped pool” for legacy deals, while other market executives said pressure on top-line growth and capital efficiency could encourage more syndicates to use run-off transactions as a routine capital management tool rather than a one-off solution.
