Hamilton’s M&A insurance team provides bespoke and innovative insurance solutions that facilitate deal execution and enable all transaction parties to mitigate risk and uncertainty.
Our team of underwriters have a wealth of experience both in underwriting and broking M&A insurance policies, combined with expertise gained in previous roles as corporate lawyers advising on domestic and cross-border M&A transactions. The team’s underwriting approach is based on technical and detailed analysis, sensible and commercial underwriting judgment, together with quality-driven service.
We fully understand the dynamics and pressures of M&A transactions, hence we strive to ensure a smooth underwriting process by collaborating with deal teams and their advisers.
What is M&A Insurance?
M&A insurance typically protects insureds against transactional risk, by transferring certain risks arising out of a deal from the transaction parties to the insurer. The use of insurance capital provides a credible, secure and cost-effective alternative to the more traditional means of addressing and balancing transaction risks, such as price adjustments, escrows, retentions and parental/bank guarantees.
In particular, M&A insurance enables:
- sellers to secure a clean exit with no overhanging liabilities
- proceeds of sale to be distributed immediately to shareholders/investors
- buyers to enhance the competitiveness of their bids by reducing or eliminating holdbacks
Warranty & Indemnity Insurance
Covers any unknown and unforeseen loss arising from breaches of the warranties provided under an acquisition agreement.
Contingent Risk Insurance
Covers known and quantifiable loss arising out of specific (low risk) issues identified during a transaction diligence process.
We work with private equity houses, financial institutions, global corporates and management teams of all sizes and have a broad appetite for all target companies, businesses or assets.
Our preferred range of transaction EVs for primary terms is between £50 million / US$70 million and £500 million / US$700 million.
We have the global presence and capabilities to underwrite cross-border transactions and deals with operations in various international jurisdictions, with a focus on the UK, Europe and Asia Pacific.
Maximum Line Size
£30 million / US$40 million per risk.
As a risk-bearing direct carrier, we maintain full control over our claims process and handling. In the event of a claim, our underwriters remain heavily involved alongside Hamilton’s dedicated in-house claims specialists.
A diversified multi-line insurance and reinsurance syndicate at Lloyd’s (A.M. Best: A; Fitch: AA-; Standard & Poor’s: A+), combining the global scale, security and longevity of Lloyd’s with industry experience and specialist underwriting expertise.