OTHER STORIES
NEWS IN BRIEF
Avatar Closes Its Book — Lloyd’s Property MGA in Run-Off After Just Over a Year
Avatar, the US property MGA that launched with Lloyd’s approval in August 2025 and added Markel to its panel in February, has entered run-off. It will no longer write new business or renew policies.
12 October 2026 • Page 3 • MGA & Run-Off
The Transaction
Avatar MGA has entered run-off just over a year after it started binding business. It will write no new business and renew no existing policies, and its in-force book will now run off.
Avatar began binding on 1 August 2025 as a Lloyd’s coverholder with FCA approval. It focused on US direct and facultative property for mid-market risks with total insured values between $25 million and $1 billion. Capacity came from three Lloyd’s syndicates, and South African insurer Santam took an investment in the business. Markel joined the capacity panel in February 2026.
12 October 2026 • Page 3 • MGA & Run-Off
Market Context
The MGA Run-Off Question. Avatar is not the first young MGA to stop writing, and it won’t be the last. The MGA model depends on capacity providers staying committed. When capacity is withdrawn or appetite changes, a start-up has little balance sheet of its own to fall back on, and run-off can come quickly. The trade press has long described run-off as a taboo subject for MGAs, something few plan for at launch.
For the carriers behind the paper, the liabilities remain. Policies already written will run to expiry, and claims will need handling for years after the last risk is bound.
12 October 2026 • Page 3 • MGA & Run-Off
JDC VIEW
A short-lived MGA leaves a small book but a long tail of administration. Claims data, bordereaux and policy records built for a business expected to grow now have to serve a book that only shrinks, and often after the original team has moved on. For the syndicates and carriers involved, the quality of that record decides how cheaply the run-off can be managed, or sold. Avatar’s book is modest, but it’s a reminder that every MGA launch should come with a plan for an orderly exit.
Sources: The Insurer, 2 Oct 2026; Insurance Business UK (launch, 2025); The Insurer (Markel addition, 9 Feb 2026)
MARKET INTELLIGENCE. EDITORIAL PERSPECTIVE. HISTORICAL CONTEXT.
GAZETTE WATCH – YOUR WINDOW ON THE LEGACY, RUN-OFF & REINSURANCE MARKETS.