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Why choose AIG Representations and Warranties Insurance?

Helps protect buyers or sellers in merger and acquisitions (M&A) transactions from financial loss in the event of a breach of representations and warranties made by the sellers.

  • Deal size: $25M to approximately $4B+
  • Available limits up to $100M for any single transaction
  • Retention typically 1.0% of the enterprise value, dropping to 0.5% after 12 months
  • Coverage available for risks on a 100%, shared, layered or excess basis from AIG’s non-admitted carriers only

The AIG Advantage

Prompt Solutions for Transactions

AIG M&A solutions help clients to effectively close transactions in a timely manner.

Multinational Capabilities

AIG’s multinational and local M&A expertise helps clients address risk across the globe.

Collaborative Claims Expertise

AIG’s dedicated and experienced claims team specializes in disputes surrounding complex transactions and processes client claims swiftly  with proven claims paying ability.

Prompt Solutions for Transactions

  • Employs an experienced team of accomplished M&A professionals—many of whom are former lawyers and tax experts
  • Empowers dedicated underwriters with decision-making authority to ensure clients receive appropriate and timely solutions
  • Provides tailored programs that facilitate transaction execution

Multinational Capabilities

  • Leverages expertise of underwriters based in financial centers across 14 countries to support transactions around the globe
  • Enables dedicated regional underwriters with local M&A market knowledge to be creative problem solvers and provide dynamic, client-specific solutions 
  • Provides clients consistent, seamless multinational expertise and solutions in approximately 70 countries and jurisdictions

Collaborative Claims Expertise

  • Employs specialized, in-house claims professionals who partner with clients to handle complex transactional claims
  • Leverages decades of M&A claims experience as one of the industry’s transactional risk pioneers 
  • Customizes transactional solutions utilizing our broad underwriting and claims expertise across industries, geographies, and sectors

Real-World Problem Solving

Benefit from our proven experience in working with customers and their brokers and agents to deliver successful outcomes.

Challenge

A client with a diverse range of investments in different sectors sought a single insurance carrier for all of its acquisitions.

Solution

AIG’s broad appetite enabled us to deliver solutions for the client on multiple deals, including deals with very different profiles.

AIG Benefit

AIG has a broad appetite for various deal sizes and sectors and underwrites deals from across the board regularly. AIG has also built strong relationships with many clients who continue to come back to AIG for their transactions.

Challenge

A client was acquiring a company that had various multinational exposures, with operations in North America, Europe and Asia Pacific.

Solution

AIG leveraged its local teams’ expertise to underwrite the risk in the various jurisdictions.

AIG Benefit

AIG regularly delivers on multinational deals. We have a global team with underwriters in hubs across the world and expertise in deals in many geographies.

Challenge

A corporate buyer purchased an R&W policy for the acquisition of a manufacturing company. After the deal closed, federal inspectors shut down the factory of the acquired company for three days on account of regulatory violations.

Solution

The buyer submitted a claim under the policy for its direct losses. AIG confirmed that a breach of the compliance with laws representation had occurred and agreed that the amount of direct losses suffered by the buyer on a multiplied basis was the correct measure of damage.

AIG Benefit

AIG’s dedicated and experienced claims team specializes in disputes surrounding complex transactions and in processing customer claims in an expedient manner with proven claims paying ability.

Brokers: Meet Your AIG Team

View contact information for AIG’s national product and distribution teams.

Downloadable Materials

Download PDF [130.9 kb]

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M&A Representations & Warranties Highlight Sheet

The scenarios described herein are offered only as examples. Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy. Anyone interested in the above product(s) should request a copy of the standard form of policy for a description of the scope and limitations of coverage.

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