Volante Lloyd’s Syndicate 1699 has launched a new insurance product known as Shareholder Activist Protection Insurance (SAPI), which provides standalone, A+ rated expense cover for shareholder activist activity.
The product, which was developed by Volante Global in collaboration with Marsh, provides insurance for costs incurred by a listed company to defend against a shareholder activist campaign, including fees relating to the appointment of legal, consulting and communications specialists, as well as any additional proxy costs.
Listed companies with market caps between US$5 million and US$10 billion can purchase SAPI. It is initially available in the UK, exclusively through Marsh, and will be rolled out in the EU in the second quarter of this year. Available insurance limits range from US$1 million to US$6 million.
According to Insightia, Volante’s data partner for the product, 2019 saw shareholder activist campaigns in Europe reach a record high of 200 campaigns, before cooling off in 2020 due to COVID-19. From 2014 to 2018, activist investing rose substantially in Europe, with the number of companies publicly targeted almost doubling in that period, Insightia said.
The UK remains the most active market for shareholder activists in Europe, representing 37 of 192 European public campaigns in 2020. Activist campaigns are picking up again, with activists also targeting smaller listed companies.
“Many organisations assume that costs for shareholder activism is covered by a D&O policy – but this is rarely the case,” said Hans Martin Døhlen, managing director of Volante. “SAPI is an industry first, designed specifically to address this rapidly evolving corporate threat. By combining innovative insurance cover with mitigation via leading partners, we are encouraging clients to improve their activist defence strategy. In the new world of ESG accountability, an insurer must support clients in innovating proactive insurance solutions to manage emerging risk. SAPI does exactly that.”
