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Runoff

Non-life insurance run-off deals – 2024 year-end review

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The final quarter of 2024 saw 9 publicly announced deals, transferring $2.4bn in disclosed liabilities – capping off a significantly more active second half of the year for the insurance legacy market. 2024 deal activity by region North America again dominated with 58% of disclosed transactions in 2024, followed by the UK & Ireland at 27%. … [Read more...] about Non-life insurance run-off deals – 2024 year-end review

Non-life insurance run-off deals review Q3 2024

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Q3 2024 saw 15 deals disclosed, almost double the number of deals in the first half of the year, bringing the total deal numbers to 23 year to date. North America was the most active territory in Q3, with ten deals disclosed and the six with disclosed deal values transferring a combined $2.6bn of gross reserves. The UK and Ireland also saw four deals announced in Q3 … [Read more...] about Non-life insurance run-off deals review Q3 2024

U.S. Runoff Industry

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MULREADY MINUTES PODCAST Mulready Minutes Podcast series examines key topics in the insurance industry from a regulator’s point of view. Featured guests are top executives in insurance and private sector companies. Get inspired by professionals from around the globe and in all sectors as they share their challenges, triumphs, and successes. Expand your knowledge and learn … [Read more...] about U.S. Runoff Industry

Transactions, Transactions, Transactions – What is New and Notable in Runoff Structures?

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The closing educational session of the July 2024 AIRROC Summer Membership Meeting was led by panelists Dareen Amireh, SVP, QBE North America, Charles Collis, Director, Conyers Dill & Pearson Ltd., Allison Tam, Partner, Willkie Farr & Gallagher LLP, Michael Terelmes, Managing Director USA, Compre Group and PK Paran, Partner, Willkie Farr & Gallagher. This session … [Read more...] about Transactions, Transactions, Transactions – What is New and Notable in Runoff Structures?

Legacy P&C Runoffs and Insolvency Challenges

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Roger Schmelzer, President and CEO of the National Conference of Insurance Guaranty Funds (“NCIGF”), and Rowe Snider, partner at Locke Lord LLP, provided insight on how a runoff company might smooth a transition to insolvency, including ways in which the NCIGF could assist in the process. A replay of the presentation is available in the AIRROC On Demand library. To provide … [Read more...] about Legacy P&C Runoffs and Insolvency Challenges

Bankruptcies and the Runoff Market

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Kathleen Ehrhart, Partner, Smith Gambrell Russell, LLP, moderated a panel on “Bankruptcies and the Insurance Runoff Market: Impact and Implications” at AIRROC’s Chicago Regional Education Day on June 6, 2024. Panelists included Anthony Mormino, Senior Legal Counsel, Swiss Reinsurance America, and Shelly DeRousse, Partner, Smith Gambrell Russell, LLP. The panelists discussed the … [Read more...] about Bankruptcies and the Runoff Market

NextGen Council Corner

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The insurance industry is often seen as a realm of numbers and policies, but behind every successful insurance professional is often a surprising journey. To shed light on these inspiring stories, AIRROC NextGen launched a new video series titled: "NextGen Asks: How Did You Get Your Start in Runoff/Legacy?" This series delves into the careers of new and seasoned insurance … [Read more...] about NextGen Council Corner

Augment Risk hires legacy expert Paul Corver as Advisor

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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

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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

New Trends in Workers Comp Drugs: Unintended Consequences of the Changing Opioid Laws and Policies

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The opioid epidemic has had a devastating impact on society and a profound toll on public health and opioid-involved deaths. The multifaceted aspects of the opioid crisis have had an effect clinically, financially and negatively influence workers compensation.   While there has been a significant decline in opioid prescribing, new medications are diversifying the drivers of … [Read more...] about New Trends in Workers Comp Drugs: Unintended Consequences of the Changing Opioid Laws and Policies

The Use of AI in Workers Compensation Legacy Transactions

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Michael Terelmes, Managing Director-USA, Compre Group, moderated a panel on “The Use of AI in Workers Compensation Legacy Transactions” at the AIRROC Spring Membership Meeting. Panelists included Rooney Gleason, Chief Insurance Officer, Evolution IQ, Travis Grulkowski, Principal & Consulting Actuary, Milliman, and Justin Herring, Partner, Mayer Brown. The panelists … [Read more...] about The Use of AI in Workers Compensation Legacy Transactions

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

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

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