Specialist insurance provider CFC, known for its expertise in emerging risks and leadership in cyber insurance, has unveiled its latest offering, an innovative solution to cover title to shares risks (TTS insurance).
The newly launched TTS insurance is designed to provide excess coverage for losses arising from breaches of title and ownership representations and warranties (R&Ws) in M&A transactions.
This insurance can be seamlessly integrated alongside CFC’s buy-side M&A insurance, streamlining the quote to bind process for brokers and clients.
Angus Marshall, Head of Transaction Liability at CFC, expressed enthusiasm about the new offering, emphasising that engaging with a single underwriter can secure both R&W and TTS coverage.
While TTS insurance will be available on an open market basis, CFC is particularly excited about its potential to provide coverage for small to mid-size deals, which have not traditionally benefitted from TTS insurance.
Additionally, the new insurance presents significant advantages for secondary investors. As a market leader in secondaries insurance, CFC now enables investors to experience a seamless process by obtaining both R&W and TTS coverages from their platform.
CFC’s title to shares policy provides comprehensive protection, encompassing standard fundamental R&Ws, such as ensuring that the seller is the legal or beneficial owner of shares in the target company or interests in a private equity fund.
The insurance also covers scenarios where target shares are subject to undisclosed mortgages, charges, or encumbrances, and where title to shares is found to be defective due to improper registration of previous documents or instruments. Non-compliance with shareholder consents is another aspect effectively addressed by the TTS insurance.
Having firmly established itself as a leader in the transaction liability market since its launch in 2016, CFC is known for catering to a wide range of areas, including lower mid-market buyouts, real estate M&A, portfolio buy-and-build strategies, secondaries investments (both GP-led and LP-to-LP transfers), and small and micro M&A.
