In response to growing demand for mergers and acquisitions (M&A) risk transfer solutions, Travelers Europe has announced a new partnership with London-based transactional risk and tax liability underwriters, Robert Brown and Dawn Bhoma.
The new partnership is expected to significantly enhance Travelers Europe’s transactional risk insurance offering in the UK and Europe. The arrangement sees Brown and Bhoma provide their expertise exclusively to a Travelers-led transactional risk consortium of insurance companies, which currently offers a total capacity of £80 million per transaction.
At the same time, Travelers is to assist Brown and Bhoma with the establishment of a new managing general agency (MGA) to write transactional risk on behalf of the insurer consortium.
Travelers Europe’s Chief Executive Officer (CEO), Matthew Wilson, commented: “Transactional risk insurance is a growing segment of the market, as buyers and sellers increasingly turn to risk transfer solutions to mitigate deal risk and release capital quickly. Our customers will benefit from the decades of experience that Robert Brown, Dawn Bhoma and their team bring as they navigate the complex risks that come with M&A.”
Transactional risk cover offers protection against M&A-related risks, such as representations and warranties insurance, tax liability insurance, and contingent liability insurance. This type of cover can lower the funds required to be held in escrow and also provide risk transfer options for contingencies identified during due diligence, ultimately helping all parties involved close a deal more efficiently and with greater certainty.
Brown added: “We are excited to be partnering with Travelers, which has an excellent reputation in London for specialist expertise, financial strength and innovation. We are actively underwriting transactions on behalf of the Travelers-led consortium and look forward to establishing a new market-leading MGA dedicated to transactional risk in the coming months.”