Mergers & Acquisitions: Representations & Warranties

What is AIG M&A Representations & Warranties?

Helps protect buyers or sellers in merger and acquisition transactions from financial loss in the event of a breach of representations and warranties made by the sellers.

  • Deal size: $25M to approximately $4B+.
  • $100M maximum line size for any single transaction.
  • Retention typically 1.0% of the enterprise value, dropping to 0.5% after 12 months.

Commercial Execution in a Timely Manner

Capabilities in 215+ Countries and Jurisdictions

Decades of Claims Insights and Expertise 

The AIG Advantage

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


Why is this important?

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

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 215+ countries and jurisdictions
     

Why is this important?

AIG’s global capabilities help enable clients to close transactions around the world.

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
     

Why is this important?

AIG M&A claims professionals manage one of the industry’s largest, most varied claims portfolios to deliver expert claims counsel and outcomes.

Why AIG

Prompt Solutions for Transactions

Issue: A company with a diverse range of investments in different sectors sought a single insurance carrier for all of its acquisitions, including a transaction set to close quickly.

Solution: AIG promptly delivered a coverage solution to the client for the transaction.

Benefit: The client completed its transaction on time and established AIG as a long-term partner for their diverse range of future deals.


Why is this important?

AIG responds promptly with solutions that help clients close time-sensitive deals across multiple company sizes, industries, and geographies.

Multinational Capabilities

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

Solution: AIG delivered a seamless solution that helped cover their multinational exposures, supported by teams based in financial centers across 14 countries.

Benefit: The client completed its complex multinational transaction utilizing one carrier partner.


Why is this important?

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

Collaborative Claims Expertise

Issue: A corporate buyer purchased an R&W policy for the acquisition of a manufacturing company. After the deal closed, federal inspectors shut down the acquired company’s factory for three days due to regulatory violations.

Solution: 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.

Benefit: The R&W policy helped protect the client from certain financial loss due to unknown exposures resulting from the acquisition.


Why is this important?

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

North America Leadership

Anna Rozin

North America Head of M&A

Mary Duffy

Global Head of M&A

 

Allison Barrett Cooper

Head of North America Financial Lines

Rita Perez

Head of FI, Fidelity & M&A Claims

Downloadable Materials

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.