CFC launches R&W solution for transatlantic M&A deals

CFC launches R&W solution for transatlantic M&A deals | Insurance Business Canada

CFC launches R&W solution for transatlantic M&A deals

Specialist insurance provider CFC Underwriting is expanding its transaction liability services with the launch of a new solution designed to support North American companies purchasing a UK or European targeted business.

In a statement, CFC said that its new suite of transaction liability products aims to fill the gap for brokers in the transatlantic mergers and acquisitions (M&A) space by offering North American buyers the representations and warranty (R&W) coverage and processes they are familiar with.

“Parties undertaking M&A transactions across different jurisdictions can often face discrepancies in terminology, drafting, insurance cover, and underwriting processes,” said Adam Martin, transaction liability team leader at CFC.

“For example, a North American buyer purchasing a UK, European, or international target may expect the transaction documents to take a customary North American form and require a typical R&W policy and underwriting process, with which they are familiar,” he said. “Advisers for the target and sellers, however, may prefer a more typical UK, European, or international approach and the transaction may be structured and documented as such.”

Martin noted that is important for brokers to understand the nuances of both North American, and UK and European deals to facilitate a transatlantic underwriting process.  

He added that through the new solution, CFC can understand and accommodate the “complexities and asymmetries” that arise in the transatlantic M&A processes and provide “enhanced coverage under a North American-style R&W policy in respect of a UK, European or international target.

“Thanks to the expertise and experience our team has in issuing both North American R&W and UK, European, and international warranty and indemnity policies,” he said, “CFC can do the heavy lifting for the client and the broker.”