Best's Market Segment Report: Motivated Sellers and Active Buyers Fuel Buoyant Market for Non-Life Run-Off Reserves

According to a new Bests Market Segment Report, titled, Motivated Sellers and Active Buyers Fuel Buoyant Market for Non-Life Run-Off Reserves, (re)insurers are increasingly using the legacy insurance segment as part of their capital and risk management strategies, often for long-tailed insurance liabilities.

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Business Wire, Inc.Business Wire, Inc.
Retrieved on: 
Wednesday, June 8, 2022
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Tags: 
Insurance, Professional Services, Risk management, Industry, AM Best, IFRS, News, IFRS 17, Insurance, ALL, Adoption, Bank
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UNITED KINGDOM, EUROPE, LONDON, SINGAPORE, UNITED STATES
Summary
Key Points: 
  • According to a new Bests Market Segment Report, titled, Motivated Sellers and Active Buyers Fuel Buoyant Market for Non-Life Run-Off Reserves, (re)insurers are increasingly using the legacy insurance segment as part of their capital and risk management strategies, often for long-tailed insurance liabilities.
  • The report identifies a variety of motivations for insurers to sell books of business and points to an influx of capital into the segment in recent periods, along with new market entrants, which together are driving high levels of activity in the legacy insurance market.
  • The legacy segment also faces challenges in the form of reserving uncertainties driven by inflationary trends, a shifting regulatory landscape and impacts arising from the adoption of IFRS 17.
  • AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry.


Activity in the global non-life legacy (i.e., run-off) insurance market is buoyant, and run-off is no longer seen as an option of last resort and indicative of failed operations, analysis by AM Best shows.

According to a new Best’s Market Segment Report, titled, “Motivated Sellers and Active Buyers Fuel Buoyant Market for Non-Life Run-Off Reserves,” (re)insurers are increasingly using the legacy insurance segment as part of their capital and risk management strategies, often for long-tailed insurance liabilities.

The report identifies a variety of motivations for insurers to sell books of business and points to an influx of capital into the segment in recent periods, along with new market entrants, which together are driving high levels of activity in the legacy insurance market. Conditions remain competitive, which may weigh on deal pricing and prospective profitability.

The legacy segment also faces challenges in the form of reserving uncertainties driven by inflationary trends, a shifting regulatory landscape and impacts arising from the adoption of IFRS 17.

To access a complimentary copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=320576.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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