Euclid Transactional R&W/W&I Insurance February 2023 Update

January was a record month at Euclid Transactional, despite persistent inflation and financing concerns.?We bound the most representation and warranty/warranty and indemnity (R&W/W&I) insurance policies of any January in our history. ?Larger sized deals, particularly with transaction values over $1 billion, were down significantly and we saw the average transaction value for submissions for insurance fall to $223 million, the lowest since May 2020, when Covid fears severely impacted deal making.?Overall submission volumes for R&W/W&I insurance policies remained at high levels, and we received the third most January submissions ever.?Policy bindings were 17% higher than our January record set in 2021, and 37% higher than in January 2022.??We bound 67 R&W/W&I insurance policies worldwide in January and received 516 R&W/W&I insurance policy submissions.

With the continuing trend of fewer larger deals, our aggregate primary R&W policy rate in North America decreased slightly in January vs. December. Primary rates are still higher than rates in pre-Covid periods, and we believe the rates for our policies reflects our clients’ and brokers’ recognition of Euclid Transactional’s and other established markets’ proven track record for deal execution and fair and efficient payouts of over a billion dollars in claims.?Rates also reflect significant additional underwriting and claims-handling resources required to address the unprecedented increase in M&A volume and demand for transactional insurance services as noted in our recent claims focused post- https://www.dhirubhai.net/posts/phil-casper-22885bb_warrantyandindemnity-mergersandacquisitions-activity-6967546635828482049-qB1n?utm_source=share&utm_medium=member_desktop .

Do our numbers align with your experiences in the M&A and R&W insurance markets? What are your deal expectations for 2023? ?Feel free reach out to Euclid Transactional to discuss these or any other topics.??

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Euclid Transactional Global R&W/W&I Insurance January 2019 – January 2023

Euclid Transactional Global R&W/W&I Insurance Monthly Submissions and Average Transaction Values March 2020 – January 2023