Run-off refers to the management of insurance liabilities after a firm has stopped writing new policies in a given class of business. Instead of seeking new premiums, the insurer focuses on handling existing claims until all obligations are settled. Run-off can take the form of an internal unit that manages closed books or, more often today, the transfer of liabilities to a specialist acquirer. For insurers, it is a tool to release capital, shed volatile risks, and simplify operations.
