Global M&A Insurance Index 2018

25 June 2018

Global Mergers & Acquisitions Insurance Index 2018Our fourth annual mergers and acquisitions (M&A) insurance index report covers transactions insured during 2017 by our expanding M&A teams around the world. This year we have broken down our premium, limit and retention data by deal size as well as by jurisdiction and business sector.

Overview

Premiums continued to fall in 2017 and, even despite an overall reduction in many of the insurers’ minimum premium levels driven by new market entrants and sheer capacity available, more of the policies taken up in small transactions triggered the minimum threshold. As a result, the premium rating for deals under GBP 10 million is now higher than the market average and so we have removed these deals from our main data pool and shown them separately.

Many of us in the M&A team have been involved with this class of insurance since it became established in the early 2000s. Enhancements to cover that go far beyond the traditional “standard” positions and the growth of specialist underwriting and broking expertise (in particular in the area of tax) represents the biggest change to the market in all of that time. It is exciting to consider where we will be in 12 months’ time.

Key jurisdictions map

KEY TRENDS IN M&A INSURANCE

The analysis of our data has revealed some key trends and we are starting to see some common themes in terms of the changes to the way the market will react to new requests at the submission stage. For example, more insurers are willing to adopt alternative measures of disclosure in policies and other enhancements to cover which are more commonly seen in the US market. Other trends are highlighted below:

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REPORT HIGHLIGHTS

Our clients look forward to the annual update of our M&A Insurance Index because it allows us to give real time premium, retention and limit benchmarking information by sector, jurisdiction and deal size as well as commentary on the state of the market. Ben Crabtree, Head of JLT Specialty's M&A team in London summarises the key findings from the index in this short video: