Compre Group has entered into a loss portfolio transfer (LPT) agreement with French insurer Wakam S.A., in a deal aimed at supporting Wakam’s capital management and legacy liabilities strategy.
Compre, a Bermuda-domiciled specialist reinsurance group focused on legacy business, said that the LPT covers about €140 million in reserves as of Dec. 31, 2024. The portfolio relates mainly to UK and French motor and property insurance liabilities for underwriting years 2024 and prior.
In addition to the initial transfer, the agreement includes a forward-flow mechanism under which Compre will have the opportunity to reinsure subsequent years. The structure is intended to provide ongoing capital management support as Wakam continues to write new business while managing older exposures in a more predictable way.
Will Bridger (pictured above), CEO of Compre, said the Wakam transaction fits with the group’s growth plans in Europe.
“The forward-flow element demonstrates Compre’s ability to provide long-term, capital-efficient solutions to our partners, reflecting the strength and flexibility of our reinsurance platform,” Bridger said.
For Wakam, the LPT forms part of a broader strategy to use legacy solutions to support its digital-led expansion across Europe. By ceding older-year motor and property exposures, the insurer aims to release resources that can be redirected toward technology, distribution and product development.
“By entrusting legacy liabilities to a specialist partner, we free up resources to invest in what matters most: scaling our digital insurance platform across Europe and delivering innovative solutions to our partners,” said Catherine Charrier-Leflaive, Wakam Group CEO.
The deal comes at a time when loss portfolio transfers are being used more widely by insurers to reshape balance sheets and redeploy capital.
In one of the larger recent examples, AXIS Capital completed an LPT with Enstar covering about US$3.1 billion of reinsurance segment reserves tied mainly to pre-2022 casualty portfolios, following an earlier announcement of a US$2.3 billion agreement.
Market observers note that this approach is consistent with a broader trend, where carriers transfer reserves to legacy specialists to streamline portfolios and improve capital efficiency.
Recent transactions, including multi-billion-dollar casualty LPTs, have been cited as examples of companies using these structures to exit discontinued or mature lines while focusing management attention on core underwriting activities.
