Legacy and run-off: The natural home for legacy risk?
Legacy and run-off are becoming a strategic release valve for insurers. With global demand, is Bermuda the right fit for expansion?
Not every insurance portfolio remains an active business forever. As insurers evolve, they might choose to transfer or manage discontinued books of business through specialist run-off and legacy solutions, allowing capital to be released while ensuring existing policyholder obligations continue to be managed.
The following data highlights the scale of the global legacy market, recent transaction activity and the role run-off continues to play within Bermuda’s insurance sector.
Legacy and run-off have become increasingly important components of the global insurance market, enabling insurers to manage discontinued portfolios, optimise capital and focus on future business. The scale of the sector is reflected in global run-off reserves, which now total an estimated $1.129 tn.
Transaction activity remained steady during the five-year period presented, although the value of transferred reserves fluctuated. Publicly disclosed non-life run-off transactions increased from 33 in 2024 to 42 in 2025, while estimated transferred gross reserves totalled $5.4 bn. Although lower than the levels reported between 2021 and 2024, the figures demonstrate continued demand for legacy transactions across the market.
Re/insurance transactions accounted for just over half of all publicly announced deals in 2025, making them the dominant form of legacy activity. Corporate transactions represented around one-fifth of deals, while captive transactions accounted for a further 14%, highlighting the breadth of organisations using run-off solutions to manage legacy liabilities.
Regional activity remained concentrated in North America, where publicly announced transactions represented $3.6 bn of estimated transferred gross reserves. The UK and Ireland accounted for a further $1.1 bn, while Continental Europe contributed $0.7 bn, illustrating the continued importance of mature insurance markets in driving legacy activity.
The legacy and run-off sector is dominated by a few key players, with AM Best rating just seven companies in total. Of these, two are Bermuda-based companies, Enstar and Compre, and others, including Premia and Riverstone, boast a strong Bermuda presence. Enstar is the world’s largest independent legacy and run-off specialist and is reported to have accounted for roughly 20% of all North American non-life run-off transactions over the past decade.
In addition, at the end of 2023, the Bermuda Monetary Authority (BMA) reported that 14% of Bermuda’s captives were in run-off. The figure illustrates that run-off is an established component of the captive sector, reflecting the natural evolution of captive programmes as organisations restructure, divest businesses or change their risk financing strategies.
The Bermuda market remains active and strategically important. As insurers continue to reshape portfolios and redeploy capital, legacy and run-off transactions remain an established mechanism for managing existing liabilities while supporting future business objectives by releasing trapped capital.
*Figures displayed are the latest available at the time of press.
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