Mergers & Acquisitions insurance services

Transactions can be time critical and may leave you with unforeseen risks post completion. We can assist in deal facilitation, mitigating risk and enhancing investment return.

Insurance due diligence

Due diligence provides an understanding of the targets’ insurable and uninsurable hazard risks and enables the deal team to make informed decisions. Key aspects of the report typically include; the integrity of the insurance program with post completion recommendations, total cost of risk (premiums & self-insured retentions), opportunities for savings and efficiencies, claims analysis (current and historic liabilities), one-off insurance costs (run-off, retroactive cover, risk surveys, occupational health and safety), and allocation of risk within the Sale & Purchase Agreement (SPA).

Transaction protection - warranty & indemnity insurance

Insurers have an established and growing appetite for the provision of transactional insurance products. The most significant of which is Warranty and Indemnity (W&I) insurance, where the vendor’s warranties within an SPA are insured. This helps facilitate a clean exit (i.e. the buyer can claim directly from the policy in their name) and can bridge any expectation or value gaps between the contracting parties.

Additionally, we place a wide range of M&A products with insurers, including tax liability (known issues); loss mitigation / litigation buyouts; escrow buy downs; opinion based contingent risks; loss portfolio transfers; environmental impairment and prospectus liability.

Portfolio company insurance

We design, place and service insurance programs for individual portfolio companies and offer risk management support. A structured, planned approach across all areas is managed by a single relationship manager to maximise value at a fund and portfolio level.

For more information on how we can provide you with mergers and acquisitions insurance solutions, please get in touch with one of the team.

 

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