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The run-off market is hitting new highs as large insurers execute their post-Solvency II strategies—and more deals and innovation are in the pipeline for this growing market, as Intelligent Insurer discovers.
After years of waiting, the market for run-off or discontinued business is heating up in Europe as Solvency II prompted insurers and reinsurers to take a close look at their operations.
Arndt Gossmann, chief executive of specialty run-off insurer DARAG, says the run-off market in Europe has undergone a seismic shift in 2016, with both the number of deals and their size increasing exponentially.
In total, Gossmann predicts a transaction volume of over €4 billion ($4.5 billion) in 2016 and the first in a series of run-off deals worth more than €1 billion ($1.12 billion) as the market reaches a new peak.
Solvency II, Arndt Gossmann, UK, Europe, M&A