The Impact of Covid-19 on R&W/W&I - Euclid Transactional January 2021 Update
2020 M&A activity reached a crescendo in December. Euclid Transactional had a record month with more deals signing and closing using R&W/W&I than ever before. We bound 125 policies, nearly twice as many as in December 2019, and submissions for insurance were up over 30% vs. December 2019. December had three times more submissions and ten times more bound policies than April 2020, when Covid-19 slowed M&A considerably. For the past 20 weeks, average deal sizes have been nearly $300 million or more, significantly higher than April through June where the range was typically around $150 million to $250 million. The average cost of our US primary policies continued to rise and was over 30% higher than in December 2019. We attribute this increase in rate to clients and brokers recognizing that Euclid Transactional and other established markets have paid hundreds of millions of dollars of claims over the last 12 months, and valuing insurers that have a proven track record for deal execution and fairly and efficiently paying claims.
Do these numbers line up with what you are seeing in the deal world and the quotes you are receiving for R&W insurance? Do you expect this high deal volume to continue in 2021? Feel free to reach out to Euclid Transactional to discuss this data or anything else.
Euclid Transactional Global R&W/W&I 2020 vs. 2019
Euclid Transactional Global R&W/W&I Recent Weekly Submissions and Average Enterprise Values
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M&A/Securities Partner at Holland & Knight LLP
4 年Incredible. Congrats to all participants/survivors!
Chief Revenue and Customer Officer, Board Member, Advisor, and Consulting Executive || Entrepreneur & Startup Investor
4 年Congrats Jay and the Euclid Transactional team!
Partner & SVP, Transactional Insurance | M&A, IPO & SPAC Risk Insurance Solutions at Woodruff Sawyer | Executive Editor - SPAC Notebook | Managing Editor - ABA Business Law Today (M&A) | ACG NJ Advisory Board
4 年Always great info Jay Rittberg! Thank you for sharing. And congrats on the numbers. I hope your team got at least some rest over the holidays and is ready to go for 2021 (and partner with us on some deals of course).
Chief Operating Officer
4 年Congratulations to you and the Euclid team. Thank you for sharing
Mergers & Acquisitions | Corporate Law
4 年Right up there with what Q4 of 2012 felt like. I will probably stop work tonight at 9pm or so tonight. I was thinking to myself earlier today that I honestly don’t remember the last non-holiday I stopped working before midnight. It’s good to see data to confirm this isn’t just a COVID distortion / delusion.