Despite reduced legacy deal activity in 2024 and 2025 amid relatively benign catastrophe activity and the strong performance of the broader re/insurance market, broking group Aon expects activity to accelerate at the specialist Lloyd’s marketplace as capital allocation becomes more disciplined.
Insurance and reinsurance broker Aon’s April 2026 Lloyd’s Legacy Report states that current market dynamics, including a softer reinsurance cycle, heightened M&A activity, and greater focus on addressing historic risk, support a positive outlook for legacy business at Lloyd’s, the world’s oldest insurance and reinsurance marketplace.
Since 2010, legacy specialists RiverStone International, Enstar, Premia, Compre, and Marco Capital have, according to Aon, together assumed nearly $15 billion of reserves via dedicated Reinsurance-to-Close (RITC) syndicates. This highlights the growing scale and capability of the RITC market at Lloyd’s as the aforementioned syndicates bring additional capacity, enhanced claims expertise, and increasingly data-driven reserving and portfolio management capabilities.
“For cedants, this deepening market capability can translate into reduced volatility, more efficient operations and the ability to unlock value for well-reserved portfolios through competitive deal dynamics and specialist run-off execution,” said Aon.
The report reveals that between 2015 and 2025, legacy deal sizes at Lloyd’s have increased as the market has expanded, a trend Aon has also witnessed in the wider legacy market. In fact, at Lloyd’s, over the past decade, the average deal size stands at just under $300 million, with 50% of deals between the $100 million and $300 million historic “sweet spot”.
Nevertheless, there’s still a place for smaller transactions, which remain an important part of the broader legacy space, with 25% of Lloyd’s deals transacted for portfolios of less than $100 million of reserves, according to Aon.
In terms of larger deals, 20% of transactions during the 10 year period were $400 million or larger, with the largest single transaction being the £1.2 billion MS Amlin and RiverStone deal, which completed in 2023.
As market conditions shift, Aon expects to see more legacy transactions at Lloyd’s in the months ahead, explaining that in the current operating landscape, “carriers typically take a more granular view of underperforming segments, while longtail uncertainty remains a key consideration across classes such as U.S. casualty and aviation.”
Interestingly, Aon’s report finds that more than 75% of syndicates at Lloyd’s are yet to complete a legacy deal, suggesting significant untapped potential. At the same time, repeat sellers account for roughly 66% of reserves transacted since 2015, which shows that many insurers are using retrospective solutions as a recurring strategic lever.
“The Lloyd’s legacy market has evolved from a specialist rectification solution into a mainstream tool for managing balance sheets, capital and earnings. As insurers operate in a more competitive environment and prepare for a potential softening of rates across multiple classes, Aon expects legacy transactions to play an increasingly important role in helping managing agents and capital providers protect performance, recycle capital and maintain underwriting appetite. We provide a range of legacy solutions to our clients as part of a broader toolkit for strategic capital management,” said Rob Margetts, legacy reinsurance broker at Aon.
Aon’s comprehensive Lloyd’s legacy report also explores how run-off deals can help carriers release capital tied up in prior-year reserve risk, protect current-year performance, and support underwriting capacity, as well as numerous other benefits.
Additionally, the report states that cedent confidence in the Lloyd’s legacy market is being reinforced by the market’s ongoing focus on oversight and discipline, highlighting the introduction of the Legacy Oversight Framework, including early engagement via a Legacy Review Panel, and formal approval through the Capital and Planning Group.
“With specialist capacity, governance and execution capabilities continuing to strengthen, insurers that use legacy proactively are well positioned to optimise capital, reduce volatility and maintain strategic flexibility as the cycle evolves,” said Mike Cane, head of capital advisory UK for Aon.
The broker concludes that a more mature and competitive legacy landscape will be supported by numerous factors, including sustained carrier M&A activity, an increasing number of new entrants, as well as alternative capital and continued product innovation such as forward exit options.
For a list of recent and historic legacy transactions at Lloyd’s and beyond, see our Legacy and run-off reinsurance transaction page.
