CFC, the specialist insurance provider, pioneer in emerging risk and market leader in cyber, announces the expansion of its suite of transaction liability products with the launch of a new solution to cover title to shares risks (TTS insurance).
TTS insurance provides excess coverage for loss arising out of a breach of title and ownership representations and warranties (R&Ws) in an M&A transaction and can be placed alongside CFC’s buy-side M&A insurance.
“We are delighted to offer TTS insurance as part of a single buy-side R&W placement, meaning the quote to bind process is seamless, with brokers and clients only having to engage with a single underwriter to secure both R&W and TTS coverage,” says Angus Marshall, Head of Transaction Liability at CFC.
“Whilst TTS insurance will be offered on an open market basis, we are excited by the prospects of insuring small to mid-size deals as part of our R&W offering as these deals have not previously benefited from TTS insurance. TTS also has particular benefits for secondaries investors. We’re the market leader in secondaries insurance and these investors will now be able to experience a seamless process by securing R&W and TTS coverages from us.”
CFC’s title to shares policy offers protection in respect of standard fundamental R&Ws including:
· The seller not being the legal or beneficial owner of shares in the target company or interests in a private equity fund
· Target shares being subject to an undisclosed mortgage, charge or encumbrance
· Title to shares being defective due to a previous document or instrument not being or not being properly registered
· Non-compliance with shareholder consents
Launched in 2016, CFC is a leader in the transaction liability market, with a particular focus on lower mid-market buyouts, real estate M&A, portfolio buy-and-build strategies, secondaries investments (both GP-led and LP-to-LP transfers) and small and micro M&A.
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