"This is the second survey of the UK non-life run-off market which the Association of Run-Off Companies (ARC) commissioned and are proud to be associated with. Now the benchmark for our industry, the survey has been prepared by KPMG LLP (UK) and can only enhance the understanding of the increasingly important amount of run-off in the company and Lloyd’s markets."

David McGuigan, Chairman of ARC

There are approximately 500 firms currently authorised to carry on general insurance business in the UK, including composite insurers who write both life and non-life insurance. Of this number, there are approximately 450 companies for which publicly held information is available.

This is the first year that details of the syndicates at Lloyd’s which are in run-off (for 1993 and subsequent years of account), have been included in the survey. UK non-life business of companies from other EU countries has not been included in the survey.

Executive Summary :

• The total liabilities of the UK non-life run-off market, including business written at Lloyd’s, are estimated at £41.1 billion;
• The liabilities of the non-life run-off market in the UK represent approximately 25 percent of the non-life market as a whole;
• The UK non-life run-off market has increased by 6.2 percent over the year;
• The net assets or shareholders’ funds of UK non-life business in run-off total some £3.8 billion;
• Over 1,700 people (2,200 including Equitas) are employed in dedicated run-off vehicles alone;
• Since 1990 the UK insurance compensation scheme has paid a total of approximately £700 million in compensation to policyholders of failed UK insurers;
• Despite the growing trend for solvent companies to finalise their run-off liabilities via schemes of arrangement, this has not, to date, had a significant impact on the size of the UK non-life run-off market.

You can access the survey by clicking here