Non-life run-off 2.0 – a new perception and acceptance

Philipp C. Kleyser (LL.M, Head of Business Generation Germany and Austria of Compre Gruppe, Country Manager of Bothnia International Insurance Company German Branch) |

Why legacy solutions are finally acknowledged as a capital efficiency instrument

Run-off, or its more recent neutral term “legacy”, has been considered historically mainly as a result of insufficient management or even failure in the past business. And it is fair to say, that there are still many people in some markets who have this thinking. But there is a turnover of mind setting to be identified, which is not only related to strategic considerations defined by executive boards of insurance companies. The relative importance of capital management, return on capital and the opportunity cost of capital relating to prior reserves, is intensifying in the current market environment. We, at Compre, a leading non-life legacy provider operating for more than 30 years, are facing an increasing