News Releases

PHILADELPHIA--(BUSINESS WIRE)--ACE Group today announced the introduction of three new transactional risk insurance products that offer protection to buyers and sellers participating in Mergers and Acquisitions (M&A) and other transactional deals throughout North America and in international markets. These products -- Representations and Warranty Insurance, Tax Indemnity Insurance and Contingent Liability Insurance -- enable parties to efficiently transfer transactional risk, increase deal value and maximize returns, thus strategically enhancing a party’s position in competitive auctions and bridging gaps in deals that might not otherwise close.

The demand for transactional risk coverage has risen significantly in recent years, and has rapidly become a critical tool for both buyers and sellers. Deal participants’ appreciation and understanding of the risk transfer elements provided by these products, as well as their ability to use this coverage strategically to facilitate the negotiation and execution of transactions, is largely responsible for driving this growth.

ACE recently appointed Edward Markovich as Vice President, Transactional Risk, to lead this new global ACE initiative. Based in New York, Mr. Markovich reports to Steven Goldman, Senior Vice President, Professional Risk, ACE USA, and will focus on underwriting transactional risk in North America. Mr. Markovich has extensive experience in both the insurance and financial services sectors, and he brings to this position a deep understanding of how this coverage can be useful to deal principals and their advisors in today’s transactional environment. As ACE expands its transactional risk capabilities overseas, Mr. Markovich will coordinate with colleagues worldwide to set policy and execute ACE’s global strategy in the transactional space.

“We have seen a significant increase in placement requests for transactional risk products over the past couple of years. In some instances, these have doubled from one year to the next,” said Mr. Goldman. “Deal participants recognize that these coverages offer the high degree of sophistication that complex transactions require.”

“ACE’s clients will further benefit from our financial strength and global presence, as these policies typically extend coverage for several years and oftentimes encompass risks on a worldwide basis. I’m excited to lead this initiative at ACE, where we can immediately support our clients in North America and, ultimately, in many jurisdictions around the world,” said Mr. Markovich.

ACE’s transactional risk product line is comprised of three key offerings:

• Representations & Warranties Insurance protects the insured for financial losses in the event of unknown breaches of a seller’s representations and warranties made in connection with an acquisition or merger.
• Tax Indemnity Insurance protects the insured against known contingent tax exposures resulting from the tax treatment of a past transaction, investment or other legitimate business activity.
• Contingent Liability Insurance protects the insured against known exposures that may arise after the close of a transaction, such as successor liability, open-ended indemnities and/or potential litigation.

Transactional risk products are offered within ACE’s Professional Risk group, through a specialized unit focused on the unique and complex challenges that financial institutions, including dealmakers such as strategic buyers and sellers, private equity sponsors and business owners and their respective advisors and managers, face in today’s ever-changing economic environment.

Product highlights are summaries only; please see the actual policy for terms and conditions. Product offerings may vary by ACE location.

About ACE Group

ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 54 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance to a diverse group of clients. ACE Limited, the parent company of ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index. Additional information can be found at www.acegroup.com, or follow ACE on Twitter,https://twitter.com/ACEGroupNA.