Non-life insurance run-off deals continue to increase, with the announcement of 18 deals and an estimated $5.4bn disclosed gross liabilities transacted through the first half of 2022.
The sector has continued to see a variety of deal sizes with deals ranging in the first half of the year from $10m to $3.1bn and 10 acquirers having closed transactions.
Compared to 2021’s figures, the estimated gross liabilities transacted are up by $1.6bn.
In the first half of 2022, Property and Casualty remained the predominant class transacted with General Liability and Worker’s Compensation also featuring prominently.
The North American market continued to be the most active in terms of transaction activity and magnitude, said PWC, with 11 publicly disclosed deals completed, with $4.7bn disclosed liabilities transacted. 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. 28 disclosed Lloyd’s legacy deals have been concluded since 2019.
PWC notes that 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. Stating that we will continue to see unexpired risk presented in deals as 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.
