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

Happy New Year!?In December and Q4 2022, Euclid Transactional saw deal makers continue to use representation and warranty/warranty and indemnity (R&W/W&I) insurance to close a very large number of transactions globally. ?Inflation and financing concerns persisted, and we saw the average transaction value for submissions for insurance fall to $305 million, the lowest since Q2 2020, when Covid fears severely impacted deal making. Overall submission volumes for R&W/W&I insurance policies remained at high levels, with the second most December submissions in history. ?Policy bindings were 28% lower than our December record set in 2021, and 10% less than in December 2020, but December was still our sixth highest month ever from a policy binding perspective. ??We bound 112 R&W/W&I insurance policies worldwide in December and received 455 R&W/W&I insurance policy submissions.

Consistent with the drop in volume of deals with larger transaction values, our aggregate primary R&W policy rate in North America decreased in December compared to November and was also lower than the December record high rate of 2021. ?Primary rates are still significantly 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 – December 2022

Euclid Transactional Global R&W/W&I Insurance Monthly Submission, Bound Deals and Average Transaction Values March 2020 – December 2022

Euclid Transactional Global R&W/W&I Insurance Quarterly Submissions, Bound and Average Transaction Values 2020 –2022