In recent years the retrospective market has evolved considerably, relieving (re)insurers of unwanted prior-year liabilities (PYL) in new ways and in greater volumes. Some recent transactions would not have been possible five years ago, yet the conditions now exist for further significant advances in the next two years.
While retrospective solutions are many and varied, they essentially fall into two categories. The first are the traditional M&A projects. These are often huge and resource-intensive for both client and retrospective provider, frequently involving discontinued lines following a strategic extrication from a market or territory.
