Programme Features
- Financial capacity of up to US$70 million (€70 million / £50 million / AU$85 million / CHF 70 million) per TRI policy
- Primary or excess
Best For
- Companies involved in a mergers and acquisitions transaction
- Category: Transaction Risk
- Industry: Energy, Private Equity, Construction & Real Estate, Financial Institutions, Aerospace, Media & Technology
- Group: International Group
Transaction risk insurance (TRI) products are often employed to effectively bridge a gap between the deal parties’ positions (typically between buyer and seller) and at times can even enhance them. Mergers and acquisitions between companies come with a great deal of risk to both the purchasing and selling organisations. Warranty and indemnity (W&I) insurance provides significant advantages to both parties to safeguard against a loss from breach of warranty or a misrepresentation on behalf of the seller or to provide a strategic tool for buyers to gain a competitive edge against other bidders.
Summary of Coverage
Warranty and indemnity (W&I) insurance programmes facilitate the sale and purchase process. Both buyer-side and seller-side policies are available, and the policy is structured to meet the risk retention and recourse requirements of the deal parties.
W&I insurance provides a convenient solution to both buyers and sellers, and presents significant advantages, such as:
- A commercially viable alternative to security traditionally sought through costlier and less satisfactory means (such as an escrow account, bank guarantee or letter of credit)
- A simpler and more effective method of seeking indemnity against a loss resulting from a breach of warranty or tax deed / covenant in a sale and purchase agreement
- A tool to mitigate the vendor's risk for liabilities arising from innocent misrepresentations made by the vendor
- Coverage, afforded to the buyer, for any financial loss as a result of any misrepresentations (innocent or otherwise) made by the vendor
- A strategic tool to give the buyer a competitive edge against other bidders for the purchase or to make the vendor's offer more appealing, as the risk is transferred to a financially sound insurer
TRI Team Advantage
Our Financial Lines team includes a dedicated team of TRI specialists made up of underwriting, claims and legal professionals. The team's extensive experience and in-depth knowledge of worldwide transaction risk related issues, coupled with our "under one roof" strategy, ensure a high level of professionalism with fast and efficient service. Being internationally focused means we can offer tailor-made policy wordings in many languages and for multiple jurisdictions.
Available Coverages
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Our centralised and unified management structure promotes real-time interaction between our transnational teams of underwriting, claims and legal professionals. The fact that our assets are consolidated under “one roof” makes us institutionally quick: quick to respond; to provide intelligent advice, innovative solutions and efficient claims handling.
