The financial lines division of Liberty International Underwriters Europe (LIU Europe), part of the Global Specialty unit of Liberty Mutual Insurance Group, has launched two new products: a warranty and indemnity (W&I) policy and a litigation buy-out (LBI) policy.
The two new products mark a significant expansion of LIU Europe’s financial lines offering under the management of Guy Williams, Head of D&O and Financial Institutions. Williams, who joined LIU Europe in 2011, is a lawyer by background and was formerly head of one of the European market’s largest warranty and indemnity insurance teams.
Guy Williams said LIU Europe, which has to date focused on excess line W&I business, will cover the full range of W&I deals seeking insurance.
Both products are targeted at companies engaged in the sale of businesses. W&I cover protects either the buyer or seller against breaches in representations and warranties given during a sale. Sellers can cover themselves to prevent sale proceeds being tied up in escrow accounts while buyers can ensure the warranties have real value, even if the seller is unable to pay a warranty claim which arises in the future.
LBI cover provides protection to the buyer of a business should losses result from outstanding litigation against the seller. Both W&I and LBI will be underwritten in London but will be available to LIU Europe’s network of regional offices both in the UK and throughout continental Europe and Dubai.
Sean Rocks, President and Managing Director of LIU Europe said: “In recent years, LIU Europe has provided insurance for a number of carefully selected Mergers & Acquisition (M&A) deals in the UK and Europe. The products have become increasingly popular and sophisticated and we are pleased with the way our book has grown. LBI and W&I are a natural extension to our staple offerings and complement our other financial and professional product range.
“Although European M&A activity has been relatively muted since 2008, interest in these products is increasing as private equity houses, corporate buyers and their advisers have become more familiar with and more comfortable using W&I insurance. We have judged that now is the right time to invest further resources in these products.”
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