PwC’s sixteenth September 2025 Global Insurance Run-Off Survey pegs non-life run-off reserves at $1.129 trillion, reflecting growth of 11% since the previous survey, as 25 publicly announced deals from January to August 2025 involved the transfer of an estimated $1.1 billion in gross reserves.
The firm’s analysis of the global non-life legacy marketplace reveals that deal momentum is strong, although the trend of increasing average deal sizes has reversed since the final quarter of last year and throughout 2025.
PwC’s analysis identifies 25 publicly announced run-off transactions since January 2025, with total disclosed gross reserves of $1.31 billion. Throughout the entirety of 2024, PwC identified 33 publicly disclosed deals with $6.6 billion in gross liabilities transferred, highlighting increased comparable volume year-on-year.
So, while 2025 has been active in terms of deal activity, this has largely focused on the midsized or smaller end of the space, with fewer large transactions when compared with more recent years.
However, it’s worth highlighting that respondents to PwC’s survey project a potential return of larger legacy deals, with 47% identifying $250 million to $1 billion as the transaction size range (by estimated gross liabilities) with the greatest opportunity for deals in the next 18 months.
29% of respondents see deal sizes of $50 million to $250 million as the biggest opportunity for deals, and 19% selected sub-$50 million deal sizes, with only 5% choosing a deal size of more than $1 billion.
In terms of global deal activity, the majority of survey respondents expect this to remain stable or increase over the next 18 months, with 44% and 62% expecting greater activity in North America and the Rest of the World, respectively. In contrast, just 8% forecast more deal activity in the UK and Ireland, which PwC says is a reflection of increased market maturity.
“The legacy sector is cementing its position as a sector for all seasons, adapting to deliver strong and stable returns no matter the weather. As the live insurance market shows signs of softening, the legacy sector is well placed to meet future deal flow. Its ability to consistently create value through different market cycles shows why it is increasingly central to the wider insurance value chain,” said Andy Ward, Corporate Liability Restructuring Partner, PwC UK.
Taking a look at the bigger picture, of the estimated $1.129 trillion in global non-life run-off reserves estimated by PwC, North America accounts for $558 billion, Europe $367 billion, and the Rest of the World $204 billion.
General liability and motor remain the dominant lines of business, accounting for a combined 71% in North America, 41% in Europe, and 47% in the Rest of the World.
PwC expects casualty to remain the most actively traded line of business in the legacy world, followed by motor and financial professional lines.
Survey respondents are optimistic about the legacy sector, with 87% expecting new capital inflows into the market over the next three years, largely driven by the replacement of existing capital rather than backing for new market entrants.
“There is now a high bar to entry, with capital providers looking for very experienced management teams and clear, achievable pipelines before backing new platforms. However, survey respondents indicate that legacy deal pricing remains targeted for mid teen returns which continues the solid and stable long term returns that the market can generate,” said PwC.
In terms of new risks, PwC’s report highlights PFAS (per- and polyfluoroalkyl substances) as the emerging risk to watch, noting that claims are emerging across multiple lines and unknown PFAS liabilities, which may delay deals or affect pricing.
“We’re seeing signs of a new trend emerging: more publicly disclosed transactions, but at the smaller or midsized end of the market. Our survey shows that, while some well-established players have the capacity to execute very large deals, megadeals will continue to be significantly outnumbered by deals at the lower range,” said Rebecca Wilkinson, Corporate Liability Restructuring Director, PwC UK. “One emerging risk the market increasingly has its eye on is PFAS claims, which are still in their infancy but growing in prominence. Our survey shows the market is not dissuaded from deals including PFAS portfolios, but we should expect deal structures to be adapted to cater for these exposures.”
Earlier this year, around the annual IRLA conference in Brighton, we held our inaugural legacy market roundtable, in partnership with reinsurance industry giant Swiss Re.
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