July 20, 2016 by Canadian Underwriter
Allianz Global Corporate & Specialty (AGCS) SE announced Wednesday its new transactional liability unit in North America.
“This new practice will offer financial protection specifically to protect against inaccuracies made about target companies or businesses in connection with mergers, acquisitions and divestitures,” Munich-based AGCS stated in a press release.
In Canada, AGCS has offices in Toronto and Vancouver. In North America, AGCS writes commercial property, liability, aviation and marine insurance, well as financial lines. Its financial lines coverages in North America includes financial institutions coverage, commercial management liability and professional indemnity liability (errors & omissions).
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For transactional liability, AGCS announced Wednesday it is one carrier partner with managing general agent Euclid Transactional LLC, which underwrites representations & warranties and other coverages. Swiss Re Corporate Solutions is Euclid’s other carrier partner, Euclid Transactional states on its website.
“As buyers and sellers are not always forthcoming about business operations and inherent risks, however, post-sale disputes are common and financial issues surface,” AGCS stated. “To help alleviate such matters and facilitate the process for a merger, acquisition, divestiture, or other business transaction, parties are increasingly purchasing transactional liability insurance.”
Euclid Insurance Services Inc., of Itasca, Ill., announced April 22 the formation of Euclid Transactional, whose other offerings include tax liability and contingent liability. Euclid is owned by the Colis family.
Representations and warranties insurance “protects the insured from unknown breaches of representations and warranties made by sellers in an acquisition agreement,” New York City-based Euclid Transactional states on its website.
AGCS’s announcement came a day after Boston-based Berkshire Hathaway Specialty Insurance (BHSI) announced it is offering R&W coverage in the United States and Canada.
BHSI is owned by Omaha, Neb.-based Berkshire Hathaway Inc., whose chairman is Warren Buffet. Berkshire Hathaway also owns National Indemnity Company, Government Employees Insurance Company (GEICO) and General Re. In Canada, BHSI – which has a Toronto office – underwrites on the paper of National Liability & Fire Insurance Company.