Macquarie Insurance Facility (MIF) has announced plans to launch Longbrook Insurance, a multi-line underwriting business headquartered in London and backed by highly rated carriers.
The new entity is set to begin operations in early 2026, focusing on transaction liability insurance and energy insurance.
MIF, part of Macquarie Asset Management, acts as a global insurance aggregator, managing approximately US$1.8 billion in premium spend annually from private equity, infrastructure, energy, and real estate firms. Longbrook will leverage this platform to provide insurance solutions to clients worldwide.
Longbrook’s transaction liability insurance business will offer mergers and acquisitions insurance, including warranty and indemnity as well as tax liability coverage. The energy insurance division will focus on property damage and business interruption for the construction and operation of energy assets, with an emphasis on supporting the energy transition.
Read more: M&A insurance demand could surge as cross-border deals get riskier
Shaun Reynolds (pictured above) has been appointed as head of transaction liability at Longbrook. Reynolds brings over 20 years of experience in M&A and underwriting, having previously held roles at AIG and Volante Global, where he managed a portfolio of transaction liability risks.
Nick Wilski, global head of Macquarie Insurance Facility, said, “Effective risk management is a crucial element to delivering value on investments, and Longbrook is the next step in MIF’s strategy to offer diversified solutions to our clients.”
The timing of Longbrook’s launch aligns with a period of rising demand for M&A insurance globally, as dealmakers face increased complexity and risk in cross-border transactions. Market participants are turning to warranty and indemnity insurance as a practical solution to manage exposures arising from geopolitical and economic volatility, particularly as transactions span multiple jurisdictions.
Recent years have seen warranty and indemnity insurance rates fall, driven by new entrants seeking to capture market share. However, this trend may be reversing, as reinsurance markets call for stronger underwriting discipline and improved returns.
Read more: Mergers and acquisitions heat up with AI, insurance, private equity moves
Industry observers anticipate that some providers may exit the market, leading to a stabilisation in pricing and a renewed focus on sustainable growth.
The use of representations and warranties insurance – known as warranty and indemnity insurance outside North America – is also expected to expand.
Nearly two-thirds of global M&A executives anticipate increased adoption of these products in 2025, with many buyers and sellers relying on insurance to facilitate smoother deal closures and manage post-transaction risks in a shifting deal environment.
