Legacy and ILS Collaboration Opportunities Take Center Stage at IRLA Event

At the Insurance & Reinsurance Legacy Association (IRLA) annual Congress in Brighton, speakers emphasized the growing opportunity for the legacy market to collaborate with the insurance-linked securities (ILS) sector and alternative capital sources. The focus is on delivering innovative solutions for exit liquidity and supporting the development of casualty ILS transactions.

During a media briefing, industry leaders discussed the evolving landscape of the legacy and retrospective reinsurance markets, noting a steady shift toward capital-light business models. Increased engagement with alternative capital and ILS structures was cited as a key sign of the sector's ongoing transformation.

Kevin Gill, IRLA Chairman and Partner at EY, opened the discussion by acknowledging the sector's progress:

"We’re seeing real maturity in the legacy market. It’s now offering creative capital solutions, demonstrating how much the market has evolved, both in response to new opportunities and increasing competition."

Nick Crossley, CEO of Enstar EU, agreed, stating:

"We’ve come a long way in providing scalable solutions for some of the world's largest insurers. Innovation has driven our growth—from restructuring in the past to today’s complex capital strategies."

He added that the sector’s core strength lies in its ability to adapt through trial and error, entering new markets and developing tailored solutions.

Will Bridger, Group CEO of Compre Group, emphasized the legacy sector’s growing role as a partner to the ILS market:

"Legacy businesses are responding to client demands, particularly around managing long-tail risks. As more alternative capital enters the reinsurance space, investors are demanding clear exit strategies—and legacy providers are key to delivering that."

He pointed to recent developments like Fractal Re as examples of how legacy solutions are aligning with ILS innovations, and predicted more growth as alternative and traditional capital converge.

Speakers also predicted continued expansion of the legacy market, particularly through renewable retrospective deals and increased investor interest in insurance as an asset class. Legacy specialists are well-positioned to guide capital into these areas.

Tom Dixon, Head of Legacy – UK, Lloyd’s & Bermuda at Gallagher Re, highlighted the role of legacy providers in helping bring casualty ILS vehicles like sidecars to market:

"Casualty sidecars are gaining traction. With partners like Enstar and Fractal Re, we’ve developed forward exit solutions that give investors greater certainty—encouraging more interest in the casualty space."

He questioned whether the casualty market could mirror the growth seen in property sidecars, with legacy players driving structure and support from the outset.

Crossley later reiterated the importance of the capital-light model:

"There’s a clear opportunity for legacy providers to help insurers manage capital and volatility more effectively—finding the right balance on the risk-return curve."

For investors interested in longer-tail insurance risks, the legacy market’s focus on liquidity and exit certainty is becoming increasingly attractive. This collaboration with ILS and alternative capital sources is a vital part of the sector’s growth story.

Kevin Gill concluded the briefing by underscoring the market’s evolution:

"The legacy market is more relevant and aligned with the live insurance sector than ever before. With its mix of relevance, resilience, and innovation, the future looks very promising."