Mergers and Acquisitions (M&A): Representations and Warranties (R&W)
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 more than 200 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
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.
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.
*Through AIG operations, licenses, authorizations, and network partners
