Bigger M&A deals mean more insurance claims, AIG finds | Financial Times

M&A insurance, also known as warranty and indemnity cover, has been a booming market over the past few years, as buyers and sellers seek protection against the chance that problems arise after the deal closes.

The main causes of claims on this type of insurance are problems with financial statements, tax, and compliance with laws.

AIG, which sells M&A cover, analysed 580 claims covering 2,900 deals, and found that larger deals lead to more claims.

via Bigger M&A deals mean more insurance claims, AIG finds | Financial Times.