AIRROC Update

Insurance & Reinsurance News

Runoff

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

Where AI Can Make Dramatic Impacts in Run-Off Transactions

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The 2023 Spring Membership Meeting education program included a presentation on the hot topic of artificial intelligence.  Rooney Gleason, Chief Insurance Officer at Evolution IQ and Adam Fisher, Chief Data Officer at Sedgwick served as panelist with Marcus Doran, Senior Director Commutations at AIG as the moderator. A video replay of this presentation is available in the … [Read more...] about Where AI Can Make Dramatic Impacts in Run-Off Transactions

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

“Strong momentum in run-off sector continues”- PWC

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Strong momentum in the non-life run-off sector last year continued into 2022 with the announcement of eleven deals, says a new report from PWC. The professional services firm said that while the number of deals announced was slightly lower than Q1 2021, the total estimated value of executed deals during Q1 2022 exceeded that of the same period in 2021 ($4.2bn vs $3.3bn), … [Read more...] about “Strong momentum in run-off sector continues”- PWC

Another Sunshine State Insurer Falls: Southern Fidelity Enters Receivership

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Southern Fidelity Insurance Company has entered into receivership and is being liquidated, according to the Florida Office of Insurance Regulations (FLOIR). The state’s insurance office made the move on the basis that the insurer was impaired, insolvent or likely to become insolvent and that further transactions would be potentially hazardous to policyholders, creditors, … [Read more...] about Another Sunshine State Insurer Falls: Southern Fidelity Enters Receivership

Oklahoma Insurance Department Announces Inaugural Captive & Insurance Business Transfer Conference in August

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OKLAHOMA CITY – Risk managers, business owners, regulators, financial executives and insurance professionals are invited to attend the Oklahoma Insurance Department’s (OID) first Captive & Insurance Business Transfer (IBT) Conference in Oklahoma City. The event will be held at the Omni Oklahoma City Hotel on August 24-25. This two-day conference will provide in-depth … [Read more...] about Oklahoma Insurance Department Announces Inaugural Captive & Insurance Business Transfer Conference in August

Uncertainty > Risk: Lessons for Legal Thought from the Insurance Runoff Market

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Abstract: Insurance ideas inform legal thought: from tort law, to health law, to theories of distributive justice. Within legal thought, insurance is often conceived as an ideal type in which insurers distribute determinable risks through contracts that fix the parties’ obligations in advance. This ideal type has normative appeal because, among other reasons, it explains how … [Read more...] about Uncertainty > Risk: Lessons for Legal Thought from the Insurance Runoff Market

The Non-InsurTechs – How Technology Focused InsurTechs Are Changing the Face of the Industry Without Selling a Single Policy

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The 2021 AIRROC Spring Meeting was kicked off by the rise of the InsurTechs presentation given by Brian T. Casey and Benjamin P. Sykes of Locke Lord LLP, Cole Winans of Flyreel and Brent Williams of Benekiva. Many of the InsurTechs making headlines today are directly involved in one or more of the traditional segments of the insurance industry – selling, adjusting or … [Read more...] about The Non-InsurTechs – How Technology Focused InsurTechs Are Changing the Face of the Industry Without Selling a Single Policy

Market Capacity – What Does it Mean for the Legacy Market?

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The Panelists for the first education session of day two of our virtual Spring Membership Meeting included Michelle Harnick, Managing Director, Guy Carpenter David Luce, Partner, DLA Piper and Ed Torres, Executive Vice President, Willis Towers Watson.  AIRROC Executive Director Carolyn Fahey who served as moderator facilitated the discussion.  Michelle kicked off the … [Read more...] about Market Capacity – What Does it Mean for the Legacy Market?

Creating Value in Runoff through Collaboration with Insurtech

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In 2020 over $7 billion was invested globally in insurtechs as cited by Paul Chen, Partner at Mayer Brown, who moderated the educational session, “Creating Value in Runoff through Collaboration with Insurtechs.”  Fellow Mayer Brown partner Stephanie Duchene joined the panel along with Nick Daley of Plug and Play, Nicos Vekiaridies of Attestiv and Andrew Naoum of EvolutionIQ. … [Read more...] about Creating Value in Runoff through Collaboration with Insurtech

Global Insurance Run-off Survey 2021

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Welcome to the thirteenth edition of PwC’s Global Insurance Run-off Survey, which has been produced in conjunction with IRLA and AIRROC. The growth in legacy activity predicted in the last edition of this survey has materialised, boosted by significant investment in both new and existing legacy players. The market has maintained its momentum, with over 100 legacy deals publicly … [Read more...] about Global Insurance Run-off Survey 2021

Insights on Legacy in 2020

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The Panelists for the first education session of our virtual Transactions & Networking Forum included: Paul Corver, Group Head of M&A, R&Q, Marcus Doran, EVP, Group Complex Claims Officer, Armour Risk Management (Moderator), Paul Ginnett, CEO, Allianz Reinsurance America, Inc., Linda Johnson, Head of Legacy Practice, TigerRisk and Matt Kunish, Chief Business … [Read more...] about Insights on Legacy in 2020

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

Enstar Plan marks milestone proof of concept for US insurance business transfers

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Court approval of an insurance business transfer (IBT) between two Enstar Group Limited affiliates provides a useful proof of concept for this legacy solution in the US. IBT provides insurers with an expanding regulatory toolkit alongside sale, reinsurance, and accelerated closure. So, what new doors does the first application of the Oklahoma IBT statute open and what does it … [Read more...] about Enstar Plan marks milestone proof of concept for US insurance business transfers

Inflection Point: COVID-19 and resulting balance sheet pressures spur hunt for lasting legacy solutions

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With mounting novel coronavirus (COVID-19) liabilities straining insurers’ and reinsurers’ balance sheets, the pressing need to free the capital tied up in legacy portfolios can no longer be ignored. Sorting out legacy risk would not only relieve reserve pressure, but also release much needed capital to support growth. So, what are the options for tackling the legacy … [Read more...] about Inflection Point: COVID-19 and resulting balance sheet pressures spur hunt for lasting legacy solutions

Captives Can Benefit From Run-off In The COVID-19 World

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AIRROC's Executive Director, Carolyn Fahey and Steve McElhiney of Artex pen article for Captive International. Notice COVID-19 has destabilised the global economy and increased risk across all types of business. Run-off solutions can help captives better manage these risks, say Steve McElhiney of Artex and Carolyn Fahey of AIRROC. The concept of insurance “run-off” … [Read more...] about Captives Can Benefit From Run-off In The COVID-19 World

No Tort Liability in Reinsurance Contract Dispute Under California Law

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California federal court addressing an issue of the first impression holds that tort liability for breach of the implied covenant of good faith and fair dealing was not a valid cause of action under California law in a reinsurance dispute. A typical reinsurance dispute is essentially a breach of a contract dispute. A reinsurance agreement is a contract between two insurance … [Read more...] about No Tort Liability in Reinsurance Contract Dispute Under California Law

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