Chubb announced the launch of a suite of three transactional risk liability insurance products for clients in the UK, across Europe and other international markets outside North America.
In addition, Richard Britain has been appointed head of Transactional Risk Insurance Solutions for its Overseas General Insurance division in continuation of Chubb’s strategy to expand its global platform in this sector.
The launch is designed to respond to increasing client demand for risk protection to help facilitate merger and acquisition (M&A) activity and other transactional risks, Chubb said in a statement.
“This launch marks a step change in Chubb’s global transactional risk capabilities in the international markets,” said Timothy O’Donnell, executive vice president, Financial Lines, for Overseas General Insurance. “Transactional risk is an area that has risen in profile and significance and the launch of these products reflects the increasing demand we are seeing from corporate clients and their brokers across the UK and beyond.”
Citing statistics supporting the need for such products, the company said that overall M&A deal value in Europe was $1.10 trillion in 2015, up 22 percent, compared with 2014, with the UK accounting for $425.3 billion of the total, the company added.
Chubb said its products are designed to help companies “increase deal value and maximize returns, enhance buyers’ bids in competitive auctions and bridge gaps in deals with significant obstacles in closing.”
Its target market includes dealmakers such as strategic buyers and sellers, private equity sponsors and business owners and their respective advisors and managers. The products are:
- Warranties and indemnities insurance. Chubb will offer policies for buyers and sellers, providing cover for financial losses in the event of an unknown breach of a seller’s warranties made in connection with an acquisition or merger.
- Contingent tax indemnity insurance.Chubb provides cover against known contingent tax exposures resulting from the tax treatment of a past transaction, investment or other legitimate business activity.
- Contingent liability insurance.Chubb provides cover for known exposures that may arise after the close of a transaction, such as successor liability, open-ended indemnities and/or potential litigation.
Chubb is targeting buyers and sellers with medium-to-large-sized transactions and will offer policy limits of up to US$50 million/ £32.5 million/€47.5 million.
As head of the Transactional Risk Insurance Solutions team, Britain will be responsible for managing the performance and profitable growth of Chubb’s international transactional risk portfolio outside North America, acting as the company’s underwriter in the London and UK markets and its product and underwriting expert for Asia and other international markets.
He is based in London and reports to Timothy O’Donnell, executive vice president, Financial Lines, for Overseas General Insurance. A qualified lawyer, Britain has extensive experience in both the insurance and financial services sectors, as well as in UK and international mergers and acquisitions and capital markets transactions.
He has worked extensively on the use of warranty and indemnity insurance to facilitate transactions, including working alongside underwriting teams for over ten years on the review and underwriting of risks across different sectors and geographies as well as new product development and policy wordings. He joined Chubb from DWF LLP in London where he served as a partner in the corporate department.
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