Volante Lloyd’s Syndicate 1699, managed by Asta Managing Agency, has launched Shareholder Activist Protection Insurance (SAPI), which provides standalone expense cover for shareholder activist activity and offers protection through its Lloyd’s Syndicate 1699 stamp.
Developed by Volante Global and the help of experts at Marsh, the policy provides insurance for costs incurred by a listed company to defend against a shareholder activist campaign, including fees relating to the appointment of legal, consulting and communications specialists, as well as any additional proxy costs.
SAPI is available to listed companies operating across all market sectors with a market cap between $5m and $10bn. SAPI is launching in the UK first and is available exclusively through Marsh for the UK market.
The product’s EU roll-out is planned for Q2 2022, with available insurance limits starting from $1m to $6m.
Hans Martin Døhlen, the Volante MD, said: “Many organisations assume that costs for shareholder activism is covered by a D&O policy – but this is rarely the case. SAPI is an industry first designed specifically to address this rapidly evolving corporate threat.
“By combining innovative insurance cover with mitigation via leading partners, we are encouraging clients to improve their activist defence strategy. In the new world of ‘ESG’ accountability, an insurer must support clients in innovating pro-active insurance solutions to manage emerging risk – SAPI does exactly that.”
Matt Terry, Head of FINPRO National, Marsh Specialty, said: “The costs associated with shareholder activism campaigns is a growing exposure for our clients, especially those in the UK where high-profile and well-funded action is increasingly linked to ESG matters.
“SAPI is an exciting innovation which provides UK clients with the critical risk mitigation services they need in today’s environment, while protecting their balance sheets and supporting their wider ESG strategies.”
The risk mitigation component of the coverage provides access to legal and consulting companies with expert knowledge in the field of shareholder activism.
Working directly with clients, the specialists help companies to develop robust activist strategies to assess their exposure to activist activity, mitigate associated risks and improve response capabilities in the event of an activist campaign.
Volante’s Founder and CEO, Talbir Bains added: “Innovation and differentiation are the fundamental pillars of our underwriting strategy and this new initiative launch keeps us neatly aligned to our principles.
“We are proud to bring both a new product with SAPI and a new office in Berlin from which Hans Dohlen will launch and manage this unique initiative. Hans brings a very dynamic approach to underwriting and risk assessment with industry data forming a majority component of the underwriting algorithm.
“This initiative epitomises Volante’s drive to innovate and achieve differentiated and enhanced outcomes for our capital, our broker network and our Assureds.”
