The third quarter of 2024 saw a significant rise in non-life insurance run-off deals, with 15 transactions—almost double the number in the first half of the year—bringing the total to 23 for the year so far, according to a recent PwC report.
PwC highlights that North America was the most active region in Q3, with 10 deals announced, six of which had disclosed deal values, transferring a total of $2.6 billion in gross reserves.
The UK and Ireland also saw four deals in Q3, marking increased activity in a region that had been quieter earlier in the year.
This increase in deal activity coincided with a generally positive outlook shared by market participants at Monte Carlo and more recently at the AIRROC event in New Jersey.
Rebecca Wilkinson, Director at PwC UK, said, “Our research shows there have been 15 publicly disclosed legacy deals involving $2.6bn in the third quarter, reflecting what appears to be a renewed level of optimism from market participants.
She added, “The sentiment from cedants, acquirers and brokers indicates a healthy supply of legacy deals while acquirers’ pricing remains disciplined. We expect this to translate into a more sustainable publicly disclosed deal volume of around 30 deals per annum being concluded, versus the 50+ deals the market was seeing two to three years ago.”
Following a quieter period for Lloyd’s legacy deals, PwC reports a resurgence in RITC activity heading into Q4 2024.
Additionally, Lloyd’s Q3 Market Message announced that from January 1, 2025, all new legacy deals will require pre-transactional review and approval by Lloyd’s.
