Insurer Responds to Increasing Demand for Insurance Coverage to Help Facilitate M&A Deals
PHILADELPHIA, March 17, 2016 /PRNewswire/ -- Chubb today announced that it is strengthening its transactional risk leadership team in response to increasing demand for risk protection to help facilitate merger and acquisition (M&A) activity and other transactional deals throughout North America and abroad.
"Strategic buyers are increasingly acquiring businesses from private equity firms; U.S. companies reportedly spent a record $142 billion to buy 252 businesses from private equity investors in 2015 alone," said Steven Goldman, Executive Vice President, Financial Lines. "The demand for transactional risk products continues to rise as deal participants increasingly recognize that these coverages offer the high degree of sophistication and flexibility that complex transactions require. To meet the increasing demand for this coverage, we are growing our team, and plan to add several additional M&A attorneys with significant experience in this area to our high-caliber staff."
The following individuals will lead this initiative for Chubb, working with a team of colleagues worldwide who have deep industry knowledge and expertise in the transactional space:
- Edward Markovich, Senior Vice President, and Randy Hein, Senior Vice President, will be responsible for managing underwriting, growth and profitability in North America. Mr. Markovich and Mr. Hein will report to Mr. Goldman and will be based in New York.
- Richard Britain, Vice President, will be responsible for managing underwriting, growth and profitability in Asia and Europe. Mr. Britain will report to Tim O'Donnell, Executive Vice President, Financial Lines, and will be based in London.
"Ed, Randy and Richard have extensive experience in both the insurance and financial services sectors, providing a deep understanding of how transactional risk coverage can help deal principals and their advisors resolve difficult negotiations and execute upon the deal," said Mr. Goldman.
Transactional risk products enable parties to efficiently transfer certain deal-related risks, strategically enhancing a party's position in competitive auctions and bridging gaps in transactions that might not otherwise close. Chubb's transactional risk product line is comprised of three key offerings, each with maximum limits of $50 million:
- Representations & Warranties Insurance protects the insured for financial losses in the event of unknown breaches of a seller's representations and warranties made in connection with the sale or merger of a business.
- Tax Indemnity Insurance protects the insured against known contingent tax exposures resulting from the tax treatment of a transaction, investment or other legitimate business activity.
- Contingent Liability Insurance protects the insured against known exposures that may arise after the close of a transaction, such as successor liability, open-ended indemnities and/or other potential risks.
Transactional risk products are offered within Chubb's Financial Lines group, through a specialized unit focused on the unique and complex challenges that organizations face in today's ever-changing economic environment. This includes dealmakers such as strategic buyers and sellers, private equity sponsors and business owners and their respective advisors and managers.
Product highlights are summaries only; please see the actual policy for terms and conditions. Product offerings may vary by location.
Chubb is the world's largest publicly traded property and casualty insurance company. With operations in 54 countries, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. The company is distinguished by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength, underwriting excellence, superior claims handling expertise and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London and other locations, and employs approximately 30,000 people worldwide. Additional information can be found at: new.chubb.com.