Rising reinsurance M&A activity in 2026 is likely to open fresh opportunities in the run-off market, as insurers carve out non-core portfolios before and after transactions, according to PwC.
Dealmaking across reinsurance and insurance is set to pick up amid a tougher rate environment and sustained pressure on earnings and growth.
That backdrop, the firm argues, pushes groups to simplify operations and shed legacy books, creating steady flow for run-off specialists.
PwC tracked 42 publicly announced non-life run-off transactions in 2025, up from 33 in 2024 and 31 in 2023. Activity surged late in the year. Fourteen deals were announced in Q4 alone.
Despite the higher deal count, total disclosed liabilities transferred reached $5.4 bn, below the $6–8 bn range seen in recent years. PwC said this reflects a shift in deal composition rather than weaker demand, with a growing share of smaller transactions.
Roughly 70% of announced deals disclosed values. 40% involved liabilities below $50 mn. In those cases, sellers rarely cited capital relief as the main driver.
Operational simplification and disposal of non-core lines dominated the rationale.
Another large cluster sat in the $50–250 mn range, accounting for about half of fully disclosed transactions.
PwC noted no publicly announced deals of that size closed in 2025, though market discussions point to activity emerging in early 2026.
Two transactions exceeding $1 bn each propped up total liabilities transferred during the year.
North America remained the centre of gravity for run-off activity, with 18 deals and $3.6 bn of disclosed liabilities. PwC expects continued engagement from insurers, reinsurers, and corporates.
Europe showed a sharper year-on-year rise. Seven deals closed in 2025, compared with two in 2024. PwC said momentum should carry into 2026 as legacy solutions gain wider acceptance.
PwC expects higher live-market M&A to feed run-off volumes. While the established run-off buyer landscape appears more settled, new entrants backed by fresh capital continue to surface, adding competition, especially in small and mid-sized deals.
Beinsure flagged ongoing innovation in deal structures, including greater use of prospective and hybrid underwriting approaches.
How traditional legacy players respond, whether through competition or collaboration with structured solutions providers, remains an open question.
