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PwC UK Predicts Global Insurance Run-Off Liabilities To Reach $864bn

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 announced since our last survey, consistent with the volume in the prior period.

Survey respondents predict legacy deal activity will remain at record highs, with the US and Lloyd’s markets continuing to be particularly busy. Respondents further indicated that they expect the sector to be heavily influenced by factors such as increased levels of capital availability and hardening live market conditions which will ensure a strong supply pipeline over the next two years. We would like to thank everyone who responded to our survey. Learn more about some of our key findings below.


Survey key findings 

  • The majority of survey respondents believe the global legacy market is growing 
  • Key restructuring drivers remain consistent with the deal flow that has been observed in the market over the past two years. 
  • Releasing capital continues to be the primary driver of run-off activity, followed closely by disposing of non-core business and achieving early finality.
  • 93% of respondents believe new capital will continue to be made available to legacy market players in the current hardening market.
  • 79% of respondents foresee consolidators pricing legacy deals at Internal Rates of Return (IRR) of between 10-20%.

Estimates of market size 

  • Overall, PwC estimates that the global non-life run-off reserve has increased to US$864bn, a 9% increase since the previous edition of the report.
  • The North America region continues to dominate, with reserves of US$402bn.
  • UK and Continental Europe markets have a combined reserve of US$302bn.
  • Run-off liabilities in other key territories, including Asia, the Middle East and South America, have combined liabilities of US$160bn.

Read the full report, click here.


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