Liberty Global Transaction Solutions Briefing sheds light on key global M&A claims trends

boston, November 9, 2022 /PRNewswire/ — Liberty Global Transaction Solutions (GTS), part of Liberty Mutual Insurance, has released its third annual analysis of M&A claims, providing buyers, sellers and transaction advisors We offer an unparalleled understanding of different global M&A claims. cause.

of Liberty GTS 2022 Billing Briefing It provides detailed data on the types of M&A deals and industries where claims are most likely to occur, as well as highlighting other key trends gleaned from GTS claims data. January 1, 2019 When July 31, 2022.

Here’s the gist of the heading:

  • The frequency of reported claims has decreased slightly, with the risk bound now at 16% in 2019 compared to a historical average of about 21%, in line with the widely anticipated number of post-COVID claims. The surge never materialized.
  • End of megadeal billion dollars Lowest complaint notification frequency rate in both Europe, middle east When Africa (EMEA) as well as in the Americas.
  • In contrast, $250 million The following account for 64% of bills paid and reserved.
  • Instances of multiple notifications have more than doubled since 2019, rising from 10% to 24.5%. This trend is most pronounced in his EMEA region, largely due to the growing awareness of insured notification obligations.

Liberty GTS President Rowan Bamford “Our annual claims briefings always provide interesting insight into the development of the global M&A sector. Despite the uncertainty about the impact of the COVID-19 pandemic, we have seen an expected surge in claims post-pandemic. has not occurred, highlighting the strength of M&A dealmakers who have effectively determined the risk of individual M&A deals during the 18 months that COVID-19 has caused significant disruption to due diligence and pricing .

Cause of complaint

During our briefing, we explored the most common causes of complaints and discovered some interesting trends.

  • Tax-related matters continue to dominate the notices. Asia Pacific 34% in EMEA and 17% in the Americas. Most of these are preventive in nature and will be received within 24 months of policy initiation, but large ($10 million Plus) tax related issues.
  • Accounting and financial issues accounted for 29% of high severity claims and 32% of high severity claims, despite accounting for only 11% of all notifications over the past 18 months.
  • 48% of non-tax notices included a third party claim. Most of these involve disputes involving employees or intellectual property.
  • Economic headwinds, such as inflation, potential recession, and supply chain disruptions, can lead to increased risk for certain issues, such as undisclosed price increases, fraud, and accounts receivable.

Bamford commented: The threats companies face as they seek every means of generating revenue when faced with economic headwinds.

“Going forward, sellers will need to consider ESG-related issues, as buyers now expect to provide specific assurances on these issues. We also face challenges and our underwriters stand ready to help our clients navigate their deals in these turbulent times.”

About Liberty Kyosai

At Liberty Mutual, we believe progress happens when people feel safe. By protecting against the unexpected and delivering it with care, we help people and businesses embrace today and confidently pursue tomorrow.

Founded in 1912, head office location boston, today we are the 6th largest property and casualty insurer in the world based on gross premiums written in 2021. We are also ranked 78th on the Fortune 100 list of America’s largest companies based on 2021 revenue. Ranked.Current December 31, 2021we had $48.2 billion Annual consolidated sales.

We employ over 45,000 people in 29 countries and regions around the world. We offer a wide range of insurance products and services, including personal auto, homeowners, specialty insurance, reinsurance, commercial multiple perils, workers compensation, commercial auto, general liability, surety, and commercial property. I’m here.

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About Liberty Global Transaction Solutions

Liberty Global Transaction Solutions (GTS) is one of the industry’s largest global M&A insurance teams. With over 80 specialists, 1,500M&A averages one trade per year and has completed thousands of successful trades since its inception.

GTS has expertise in helping buyers and sellers facilitate M&A transactions, including representations and warranties (R&W)/warranty and indemnity (W&I) insurance, tax liability insurance, and one-off insurance tailored for specific risk contingencies. We provide unique products and services.

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The above is neither professional nor legal advice and is provided for informational purposes only and is not a substitute for professional consultation.

contact address:

US contact:

Richard Angevine, Liberty Mutual


[email protected]

Contacts outside the US:

Victoria Sisson, Luther Pendragon

+44 (0) 20 7618 9100

(Male) + 44 (0) 07941 294872

[email protected]

Source: Liberty Global Transaction Solutions (GTS)

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