October 2007 

The KPMG /ARC Run-Off Survey - Non-Life Insurance 

This Run-Off Survey analyses the status of the UK non-life insurance market as at the end of 2006, as well as highlighting the latest developments in tools used by run-off specialists: schemes of arrangement and Part VII transfers.

For the first time in this year's Run-Off Survey, a series of interviews were conducted with with leading figures in the UK run-off market, who comment on the recent developments in the sector as well as some of the challenges ahead.

The Survey reveals that 2006 was a year of significant change for the UK non-life run-off market.:

1. The size of the market measured by total liabilities reduced by approximately £5.5 billion (15%) during the period;
2. Total capital tied up in solvent UK non-life companies in run-off is now approximately £4.9 billion;
3. By the end of 2006, total liabilities of UK companies whose entire non-life business was subject to a solvent scheme of arrangement were £418 million, representing more than a threefold increase since 2005;
4. By the end of 2006, a total of 63 solvent schemes by entity had become effective (36 by pool or portfolio taking into account schemes for underwriting pools) and another 27 solvent schemes have so far been sanctioned in 2007 (10 by pool or portfolio);
5. Use of Part VII transfers has increased exponentially, and by the end of 2006 a total of 54 Part VII transfers have been affected for non-life insurance companies since the procedure was introduced in 2001. 

Download Survey PDF