Global non-life insurance run-off reserves have reached a record US$1.129 trillion, according to PwC’s latest Global Insurance Run-Off Survey.
The findings, released at the Reinsurance Rendez-Vous de Septembre in Monte Carlo, indicate an 11% increase in reserves since the previous edition of the survey. PwC attributes this growth to both new business entering run-off and an increase in existing reserves.
The survey, now in its 16th year, highlights the sector’s expanding role in international insurance. Respondents described the legacy market as “stable,” “evolving,” and “dynamic,” with 87% expecting new capital inflows over the next three years. Capital providers are reported to be seeking experienced management teams and robust deal pipelines before supporting new platforms, while deal pricing continues to target mid-teen returns.
Dan Schwarzmann (pictured above), partner at PwC, commented on the Bermuda insurance market’s continued activity, citing its reputation for innovation and effective regulation.
“The Bermuda insurance market continues to thrive, not least because of its reputation of driving innovation for the benefit of policyholders and other stakeholders through high-quality and thoughtful regulation. As global run-off reserves increase, the Bermuda market will continue to play its part in legacy sector deals and delivering value,” Schwarzmann said.
PwC tracked 25 publicly announced non-life run-off transactions since January, representing US$1.13 billion in gross reserves. While the number of deals is consistent with last year, the average transaction size has been smaller, mostly in the US$50 million to US$1 billion range.
Nearly half of survey respondents anticipate that larger transactions may return within the next 18 months, particularly in North America and other international markets. Activity in Britain and Ireland is expected to remain steady.
Run-off activity in North America has expanded beyond asbestos, with 33 transactions globally in 2024 transferring US$6.6 billion of liabilities, and 25 more deals in the first eight months of 2025. Industry experts note that transaction structures are increasingly designed to address not just immediate capital needs but also future exits, as acquirers become trusted partners for managing long-tail reserve risk.
The legacy sector is also facing new litigation risks, with perfluoroalkyl and polyfluoroalkyl substances (PFAS) chemicals and sports-related head injuries emerging as significant concerns. The NFL has already paid about US$1 billion to more than 4,500 former players in concussion-related settlements, signaling the potential scale of future liabilities.
PFAS litigation is mounting against manufacturers and their insurers, with ripple effects expected across multiple liability lines.
PwC reports that 55% of respondents expect consolidators to adapt deal structures by introducing exclusions or sublimits in response to these risks, and more than a third foresee higher risk premiums as a result.
“While some well-established players have the capacity to execute very large deals, megadeals will continue to be significantly outnumbered by transactions at the lower range," said Rebecca Wilkinson, corporate liability restructuring director at PwC UK. "PFAS exposures are growing in prominence, but the market is adapting to manage these risks.”
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