As Charles Taylor exits the ownership of non-life run-off companies, but remains in the managed run-off space, it poses the question 'is there room for alternative capital, looking for uncorrelated risk, to enter into the ownership of run-off business, in partnership with professional service providers?'
Charles Taylor has made its position clear that we prefer to be clear of any conflict created by ownership of non-life run-off but are active in managing this for third parties. There is an abundance of capacity seeking opportunities for investment in insurance but few which will not add significant pricing pressure on lines of business where competition is already rife. Run-off is one area where a few consolidators dominate the market and perhaps now is the time for new capital to join with professional managers?
Charles Taylor said it is still also committed to providing run-off management services to insurers and reinsurers