M&A Insurance Comes of Age

Global mergers and acquisitions activity continues at a significant level – and this activity often translates into competition for attractive assets.  As that deal-making continues, Representations and Warranties Insurance (also known as Warranty and Indemnity Insurance) will continue to provide sophisticated buyers and sellers with a tool that reduces risk and assists them in reaching their transaction goals faster – and with far fewer headaches.

M&A Insurance Comes of Age, AIG’s recently released global representations and warranties claims study, provides interesting insights to buyers, sellers, and M&A advisors. Based on the review of AIG claims data between 2011 and 2015, M&A Insurance Comes of Age explores the following:

• What trends are we seeing in the development of representations and warranties insurance?
• Does the probability of a claim being filed vary by the size of the deal covered?
• What are the most common forms of breaches reported?
• How long after a deal closes will difficulties arise?
       
  

AIG has been assisting buyers and sellers close over 2,500 deals globally since the late 1990s. The number of deals and the breadth of the portfolio, spanning across geographies, industries, and sectors, uniquely places AIG to share insights into mergers and acquisitions based on observations about the claims made on those policies.