PwC found a significant increase in publicly announced deals in Q3 2019 compared to the previous quarter, with deals doubling from seven to 14.
The report explained that the number “remains steady” when compared to Q3 2018 which had 15 deals and indicates the continued momentum of the non-life insurance run-off deals market.
However, the figures showed that estimated gross liabilities transacted have dropped significantly as there were “no mega-deals announced in the quarter”.
The average estimated value of transactions in Q2 was $444 million, but this figure decreased to $58 million in Q3.
The results found that a range of liabilities have been transacted in Q3, from general liability to engineering and captive insurance, continuing the trend of run-off solutions becoming part of ‘business as usual’ for (re)insurers.
Three of the captive transactions were acquired by R&Q and a fourth was from SOBC Darag.
Similar to Q2, the report showed a mixture of activity across the globe in Q3, with the most activity seen in the US with six deals, followed by the UK and Ireland with four deals.