--- title: "✅ What is run-off? | Reinsurance tutorials #40" description: Understand what is run-off - easily explained with a video. 📌These tutorials will offer you all the basics you need to master reinsurance image: https://blog.arundore.com/hubfs/run-off%20LN.jpg --- [![Arundo_Logo_RVB-1](https://blog.arundore.com/hs-fs/hubfs/Arundo_Logo_RVB-1.png?width=115&height=76&name=Arundo_Logo_RVB-1.png)](https://www.ccr-re.com/en/home) - [News](https://blog.arundore.com/en) - [Reinsurance Tutorials](https://info.arundore.com/reinsurance-tutorials) - [Women of Power](https://info.arundore.com/women-of-power) - [MTPL Losses France Study](https://info.arundore.com/assessing-the-losses-of-severe-personal-injury-victims-in-motor-liability-cases) - [Arundo Re Talks](https://www.arundore.com/en/arundo-re-talks) - [français-FRANCE](https://blog.arundore.com/fr/qu-est-ce-qu-un-run-off) [Home](https://blog.arundore.com/) [The reinsurance and insurance blog of Arundo Re](https://blog.arundore.com/en) What is run-off? 21 June 2021 1 min read # What is run-off? ## Reinsurance tutorials #40 ## What is run-off? There is no official definition of run-off. So what is run-off? Run-off portfolio refers to insurance policies or reinsurance contracts terminated but for which the Insurer or the Reinsurer remains liable for until the final settlement and payment of the claims. It may be a business or a territory for which the Insurer or Reinsurer is no longer operating but where contracts or liabilities are still in force.   Due to these outstanding claims or the potential claims to be notified, the Insurer or Reinsurer must set up reserves; especially for long tail businesses (such as motor liability, medical malpractice, and general third party liability). These risks are highly volatile. Moreover, discontinued run-off businesses must respect Solvency 2 rules. Their management requires resources. Run-off liabilities may require significant equity at the expense of the development of new businesses.   Run-off management is strategic. The Reinsurer and insurer can decide to: - Manage the run-off portfolio until the settlement of all related claims (by its own team or by a service provider). It is recommended to have a dedicated team. - Release either by commuting with the Insured of the Reinsured or by transferring the business to another company, which would be a novation. According to the PWC 2019 Run-off Survey, run-off businesses represent 292 billion USD (up to 30% of reserves).   Some companies are specialized in this legacy market management. Their objective is to reduce the liabilities amount and generate income. To do so, they purchase liabilities and corresponding assets and set up an active management of the claims.   Transferring run-off portfolio is interesting when: - There is a low rate framework, - To optimize capital management required by Solvency 2, - To enhance operations efficiency. If you are interested in learning more about run-off, please read the dedicated note published in 2019 by the French Association of Reinsurance Professionals, available on its website: [https://www.apref.org/contributions/note-apref-gestion-du-run-off-en-reassurance-fevrier-2019/](https://www.apref.org/contributions/note-apref-gestion-du-run-off-en-reassurance-fevrier-2019/)   ---     ## 📺 More episodes to come... Subscribe now to receive them in advance before their public release! 📥   [mailto:?subject=What%20is%20run-off?&BODY=I%20found%20this%20article%20interesting%20and%20thought%20of%20sharing%20it%20with%20you.%20Check%20it%20out:%20https://blog.arundore.com/en/what-is-run-off](mailto:?subject=What%20is%20run-off?&BODY=I%20found%20this%20article%20interesting%20and%20thought%20of%20sharing%20it%20with%20you.%20Check%20it%20out:%20https://blog.arundore.com/en/what-is-run-off) ## Latest articles #### 7 October 2025 ### [🌞 Local features seen by our LATAM Underwriters](https://blog.arundore.com/en/local-features-seen-by-our-latam-underwriters) Another meeting with The Reinsurance Tutorials, episode #9 - Season 4 ### [+](https://blog.arundore.com/en/local-features-seen-by-our-latam-underwriters) #### 16 September 2025 ### [🌎 LATAM Non-Life Reinsurance: A 24-Market Masterclass](https://blog.arundore.com/en/latam-non-life-reinsurance-a-24-market-masterclass) Penultimate meeting with The Reinsurance Tutorials, episode #8 - Season 4 ### [+](https://blog.arundore.com/en/latam-non-life-reinsurance-a-24-market-masterclass) #### 27 August 2025 ### [🦠 LATAM Life/ Non-Life Reinsurance: Assessing Pandemic Impacts Masterclass](https://blog.arundore.com/en/latam-life/-non-life-reinsurance-assessing-pandemic-impacts-masterclass) Seventh meeting with The Reinsurance Tutorials, episode #7 - Season 4 ### [+](https://blog.arundore.com/en/latam-life/-non-life-reinsurance-assessing-pandemic-impacts-masterclass) #### 5 August 2025 ### [🏜️ Local features seen by our MENA Underwriters](https://blog.arundore.com/en/️-local-features-seen-by-our-mena-underwriters) Sixth meeting with The Reinsurance Tutorials, episode #6 - Season 4 ### [+](https://blog.arundore.com/en/️-local-features-seen-by-our-mena-underwriters) [View all articles](https://blog.arundore.com/en) **Arundo Re** 6 RUE FAVART 75002 PARIS - FRANCE [Contact us](https://www.arundore.com/en/contact) [Job opportunities](https://www.welcometothejungle.com/en/companies/arundo-re) [![Arundo_Logo_RVB-1](https://blog.arundore.com/hs-fs/hubfs/Arundo_Logo_RVB-1.png?width=202&height=133&name=Arundo_Logo_RVB-1.png)](https://www.arundore.com/en/)   [Terms of use & legal notice](https://www.arundore.com/en/legal-notice) I[Personal data protection](https://www.arundore.com/en/gdpr) I © - Arundo Re 2026 All rights reserved ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Sylvie Chanh", "url" : "https://blog.arundore.com/en/author/sylvie-chanh" }, "dateModified" : "2021-06-21T16:00:01.049Z", "datePublished" : "2021-06-21T16:00:00.000Z", "headline" : "✅ What is run-off? | Reinsurance tutorials #40", "image" : [ "https://blog.arundore.com/hubfs/run-off%20LN.jpg" ], "mainEntityOfPage" : { "@id" : "https://blog.arundore.com/en/what-is-run-off", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.arundore.com/hubfs/Arundo_Logo_RVB-2.png" }, "name" : "Arundo Re" } } ```