Whilst this is the first survey of life insurance back book management to be published by PwC, management of discontinued life insurance is not new. This report looks at some of the tools and techniques available to manage back books and includes summaries of the level of M&A activity in those European markets where activity is likely to be greatest.
The results of our survey indicate that management of the back books of life insurance firms is expected to become an increasingly active strategy. Restructuring solutions, including exit transactions, are already happening in the market, with new entrants from non-traditional backgrounds entering to provide additional solutions or capacity.
Our survey includes responses from industry, advisor and private equity participants across Europe, and suggests that over 50% of respondents are anticipating some form of restructuring activity in the next 18 months. This restructuring activity is likely to lead to further closures of lines of business, leading to more transactions to divest discontinued products and businesses, and to exit markets completely.
We are extremely grateful to everyone who has took part in this survey and has provided their insights. We encourage you to contact us to discuss the outcomes of the survey and the market. We look forward to continuing to support you in the future.