Aegon sells US run-off businesses
Aegon is to sell its two largest US run-off businesses, its payout annuity business and the bank owned / corporate owned life insurance business, to Wilton Re. The transaction is in line with the company's strategic objective to reduce the amount of capital allocated to its run-off businesses. READ MORE
FCA publishes draft guidance for Part VII transfers
The UK Financial Conduct Authority (FCA) has published its draft guidance for Part VII Transfers and is inviting comments during a three month consultation period. The FCA says 'this guidance may assist and reduce the compliance costs to firms for around 20 transactions a year (the remainder being transactions where the practitioners already fully take into account our requirements).' The deadline for submitting comments is 15 August 2017. https://www.fca.org.uk/publications/guidance-consultations/gc17-5-review-part-vii-insurance-business-transfers
Abuse, asbestos and Brexit – IRLA Congress report 2017
Another sell-out year for the IRLA Congress in Brighton – an event which proved to be highly productive and thought-provoking.
A panel discussion on UK legacy and long tail claims examined what market practitioners viewed as the most troublesome and worrying trends now, and going forward. Abuse claims were seen as something to watch – particularly in the wake of the Northern Ireland inquiry which has suggested that the remit of READ MORE
Asbestos claims near peak but plenty more to come – Clyde Global Legacy Claims Conference 2017
UK asbestos claims will continue long into the future despite reaching a plateau on the bell curve. In the US asbestos plaintiff lawyers are moving on to talc and lung cancer claims while in the developing world asbestos use is still rife. Attendees at Clyde & Co's Legacy Claims Conference 2017 heard some familiar laments, chiefly that asbestos is still 'the new asbestos' but there was also some good news on advances in medical treatment. READ MORE
The Run Off & Restructuring Yearbook & Directory
Inside the print edition:
Finality Mechanisms - Exit deals of 2016
US Legacy Options - One size does not fit all
Training & Education - Learning about legacy
Claims Management - A European view of run-off claims
To read an e-version of the print edition, including feature articles, click here
Search the online Directory of Service Providers here
US legacy options
One size does not fit all
Andrew Rothseid, of RunOff Re.Solve LLC, explores the diverse and evolving options for legal and financial finality of US legacy risks
A combination of new legislation, implementing regulations and innovative application are coming together to broaden the opportunities for accelerated closure of US-domiciled legacy liabilities and the invaluable capital this would release. What has changed and what are the key issues to consider when weighing up the evolving options? The available options are diverse. No one jurisdiction provides a single answer for all types of exposures. As a result, carriers seeking to implement these solutions must weigh up the attributes of all, rather than focusing solely on one. READ MORE
Rhode Island IBT set to drive US restructuring
Managers of US run-off business are focused on finality and ready to take up new tools for restructuring in order to achieve it, says the first survey of the US run-off market conducted by AIRROC and Ernst & Young (EY). A majority (73 per cent) expect it will take ten years or more for them to achieve finality but they are ready to consider new approaches, including the possibilities offered by the Rhode Island Insurance Business Transfer (IBT) legislation. Many respondents view that regulation as the most significant development impacting the US run-off market over the next three to five years. The maturation of the UK market is also felt likely to drive some acquisitions of US-based run-off portfolios. READ MORE
The case for expanding the Rhode Island IBTLuann Petrellis of Ernst & Young* says the Rhode Island Insurance Business Transfer should be opened to other lines of business besides P&C
Entire industries are being challenged like never before to open up, innovate and reinvent themselves. In a world where everything is changing, the biggest risk is standing still. This is as true for the insurance industry as it is for any other industry seeking to stay competitive in a growing global economy.
The global game of re/insurance is evolving at an accelerating pace. There are significant restructuring activities going on in the global and US market. In 2013, Fitch Ratings, when referring to accelerating READ MORE
European run-off survey
More restructuring in Europe
The high levels of activity seen in the European run-off market over the past 12 months show no signs of slowing; 77 per cent of respondents to PwC’s 10th annual Survey of Discontinued Insurance Business in Europe say they expect to engage in exit or restructuring activity by 2019.
Sales of legacy liabilities to specialist run-off acquirers and group restructurings through business transfers (UK Part VII transfers and European equivalents) will be the key tools deployed; 81 per cent of respondents predict that READ MORE
Special report from Run Off & Restructuring
Fracking - Risks and Rewards
A game-changing energy revolution or a risk-filled dash for gas? Fracking, the controversial technique of hydraulic fracturing to extract shale gas, has become one of the most divisive issues of the 21st century.
Fracking: Risks & Rewards takes a detailed look at the issues and hype surrounding the fracking industry. What does hydraulic fracturing really involve and what are the risks arising from shale gas exploitation? Are the proposed economic benefits realistic? What regulations apply to fracking activities and are they sufficiently stringent? Who is responsible and who will pay in the event of an accident?
With a major class action lawsuit being lodged in Oklahoma against five energy companies for fracking induced earthquake damage, and now over 250 anti-fracking groups fighting against the anticipated fracking boom in the UK, the explosion of fracking insurance claims looms closer.
NEW LOWER PRICE!
Hard copy plus free PDF, now only £29.99
(was £39.99), PDF only £14.99
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'Asbestos is not just a problem of the past, nor is there an identifiable point in the future by which we can stop worrying about its legacy'
Special reports from Run Off & Restructuring
An Updated Guide to
PART VII TRANSFERS
Over a dozen Part VII transfers were successfully completed during 2016 and several more are currently waiting approval. ‘We expect the proportion of portfolio transfers compared to share sales to grow as the number of available run-off subsidiaries continue to decrease and vendors increasingly identify the opportunity to offload portfolios from within their wider balance sheet to reduce volatility and release capital,’ says Ernst & Young.
This newly revised e-book gives an up to date review of the Part VII process, including current legislation and regulation, court procedures and decisions, implementation issues, and the role of the independent expert. It also includes details of completed Part VII transfers since 2002 as well as recent case studies.
Available as a PDF, only £55 (was £95).
For more information and to order go to www.iskaboo.co.uk
Recent actuarial research suggests that asbestos-related claims in the UK are yet to peak in terms of numbers, size and cost. Read Asbestos – The Future Risk to see why asbestos continues to cause so many deaths despite being banned in over 50 countries during the last century.
Asbestos - The Future Risk is a comprehensive guide to all the issues arising from the fallout of asbestos use in the developed world and its ongoing use in the developing world. Providing a complete overview of the entire asbestos industry and its complicated claims legacy, Asbestos - The Future Risk is a must read for anyone involved with asbestos at any level.
NEW LOWER PRICE!
Hard copy with free PDF £29.99 (was £39.99)
PDF format only £14.99
Full list of contents, sample pages and details of how to order click here