Legacy carriers integral to the insurance landscape, says IRLA Chairman

The legacy insurance market is evolving, with the strongest players continuing to adapt and thrive, reinforcing their critical role in the global re/insurance industry, says Kevin Gill, Chairman of the Insurance & Reinsurance Legacy Association (IRLA).

Speaking ahead of the Monte Carlo Rendez-Vous, Gill emphasised that legacy carriers are becoming essential partners in the broader insurance ecosystem.

He stated, “Legacy carriers are now integral to the insurance landscape.

“Their ability to grow and adapt has positioned them as key partners, offering vital support to the live market.”

While some less robust players have faced setbacks, those that have demonstrated strength through scale or specialisation have prospered.

Gill cited Enstar, the largest run-off player, as a prime example of success. Enstar’s recent endorsement by alternative asset manager Sixth Street, along with a $5.1 billion investment, underscores its leading position.

RiverStone, another major player, has also shown strong growth following its acquisition by CVC, demonstrating the benefits of scaled operations.

Gill also noted the recent collaboration between Enstar, RiverStone, and QBE on a $1.6 billion loss portfolio transfer. This partnership reflects a growing maturity in the market, where legacy firms work together to provide comprehensive solutions.

He pointed out that the legacy market “has come a long way” since IRLA’s formation 25 years ago and emphasised that recent struggles of a few players should not overshadow the sector’s overall strength.

“We can’t ignore the reality of the marketplace, where some players have struggled or exited for their own reasons, but these have been idiosyncratic and at a macro level the sector has become larger and stronger,” Gill said.

Gill also observed that historical owners of legacy businesses are refining their approaches to managing discontinued lines, adopting various run-off strategies. Despite a recent slowdown, the market’s disciplined pricing strategies contribute to a positive outlook.

Overall, the outlook remains optimistic as more clients recognise the benefits of the legacy sector.

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