Non-Life Run-Off Deal Momentum Remained Strong in Q1’26, Says PwC

Key Takeaways

• Nine non-life run‑off deals announced in Q1 2026.
• Deal liabilities total about $730 million across five disclosed transactions.
• Europe accounted for $383 million of disclosed liabilities, highest region.
• Legacy acquirers expanded into ILS partnerships and new markets like Australia.
• PwC expects more large‑scale run‑off transactions throughout 2026.

Pulse Analysis

The first quarter of 2026 has cemented the non‑life insurance run‑off market as a focal point for capital reallocation. PwC’s data reveals nine deals involving $730 million of gross liabilities, underscoring a steady pipeline of legacy portfolios transitioning out of traditional balance sheets. The mix of sub‑$50 million and over‑$250 million transactions illustrates a breadth of deal sizes, catering to both niche specialty investors and larger institutional players seeking exposure to legacy risk assets.

Geographically, Europe dominates the disclosed liability volume with $383 million, reflecting the continent’s mature insurance landscape and the appetite of European acquirers to consolidate legacy blocks. North America’s $67 million and the $280 million from the rest of the world highlight a diversifying market, while strategic moves—such as RiverStone International’s entry into Australia and Enstar’s collaboration with Artex Capital Solutions—signal a blurring of lines between traditional run‑off and alternative capital structures. These partnerships are expanding the investor base, offering streamlined exit solutions for ILS vehicles and integrating prospective and retrospective risk capacities.

Looking ahead, PwC anticipates a continuation of this momentum, with more sizable transactions expected as legacy owners seek liquidity and investors pursue higher‑yielding, non‑correlated assets. The convergence of legacy reinsurance and ILS platforms could accelerate innovation in transaction structures, potentially lowering barriers to entry for new market participants. For insurers, reinsurers, and capital managers, staying attuned to these trends will be critical for optimizing portfolio risk, capital efficiency, and long‑term profitability.