Transaction Risk

London Market and Europe Insurance Products
Transaction Risk

Overview

Sompo International’s Transaction Risk Insurance team provides coverage to protect parties on either side of a merger or acquisition (M&A) transaction against losses arising from Warranties & Indemnities (W&I) breaches and other risks.

Common transactional risks relate to ownership of equity and assets, tax liabilities, financial statement accuracy, intellectual property, employee benefits and regulatory compliance. Our coverages include:

  • Third party liability for sellers, defense costs and losses resulting from claims by the buyer for a breach of an insured warranty or a claim under an insured indemnity; misrepresentations in W&I relating to ownership, infringement, inaccuracies, etc.
  • First party damage insurance to recover losses and defense costs, enabling buyers to enhance their negotiating position by reducing the indemnity ceiling and escrow requirements.

Target Classes

All industry sectors:

  • Clients domiciled or conducting their key target business in Continental Europe
  • Publicly traded, private and not-for-profit entities
  • Large and Small/Medium Enterprise (SME) companies

Products

  • Buyer-side W&I Insurance
  • Seller-side W&I Insurance
  • Seller-induced Buyer-side W&I Insurance
  • Tax Liability Insurance (TLI)

Capacity

  • €40M ($50M or equivalent in other European currencies) in capacity for W&I Insurance

Coverage Features

  • Primary and excess attachments considered across all products
  • Local products in local language (French, German, Italian and Spanish) and English
  • Worldwide coverage for European and global risks
  • A pragmatic and flexible underwriting approach
  • A locally empowered underwriting team
  • Market leading wordings with a limited catalogue of mandatory exclusions

Claims Capabilities

  • Dedicated TRI claims team, assisted by a European panel of renowned M&A lawyers
  • International and European claims handling expertise
  • Confidential, result-oriented and speedy claims resolution

Leadership

Thomas Mannsdorfer
EVP, Head of European Specialty Insurance Underwriting
Tel. +44 (0) 74 0886 7866

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