Non-life insurance run-off deals H1 2022

Throughout the first half of 2022, the North American market continued to be the most active in terms of transaction activity and magnitude with 11 publicly disclosed deals completing. The period included two LPTs and two property and casualty transactions announced by Fortitude Re. The UK & Ireland saw 5 deals disclosed including a further 4 Lloyd’s transactions. This means that some 28 disclosed Lloyd’s legacy deals have been concluded since 2019.

The sector has continued to see a variety of deal sizes with deals ranging in H1 from $10m to $3.1bn and 10 acquirers having closed transactions. Property and Casualty remained the predominant class transacted with General Liability and Worker’s Compensation also featuring prominently.

Inflation has been a significant talking point in the first half of 2022 and will continue to be an important factor in deal pricing in the second half of the year. We continue to see unexpired risk presented in deals as being another issue that acquirers are seeking solutions for and as previously predicted the number of corporate asbestos deals in play is increasing which is attracting new entrants and causing insurance legacy acquirers to contemplate new structures too.

How we can support our clients

The non-life insurance run-off deals team has access to more than 200 specialists who can provide expert support throughout the deal lifecycle, including:

Commercial, financial, regulatory and operational due diligence
Deal feasibility studies and strategic options analyses
Transaction structuring advice
Preparation of marketing materials and running of disposal process
Bidder identification and deal negotiation support
Actuarial support including deal pricing, reserving and capital optimisation
Post-transaction separation and migration advice

About the data

The data used in this publication has been sourced from company announcements and other publicly available information from date of publication rather than from completion date.

A further breakdown of the deals in the period split by acquirer and deal type can be found in the linked download below.