October 10, 2019, LONDON – RSG Transactional Risks Europe and CLS Risk Solutions have formed a strategic partnership in the UK to offer a combination of Warranty and Indemnity Insurance (W&I) and Ownership and Use insurance (O&U) that offer buyers of Real Estate assets comprehensive transactional risks protection up to limits of £275m per transaction.
Warranties within sale and purchase agreements provide meaningful protection to a buyer for pre-completion risks but do not survive completion and any new issues arising in the period of ownership remain uninsured. O&U insurance can remedy this by providing a set of standard “loss events” that covers most concerns in relation to Real Estate risk. O&U provides assurances to the buyer that it will enjoy future ownership and use of the asset without interference.

Ian Theato, CEO, RSG Transactional Risks Europe, said, “The main driver behind the strategic partnership is to ensure that buyers of Real Estate assets are utilising the most efficient and relevant capacity for each set of risks that may arise from the purchase. RSG can now offer W&I and O&U under one solution while the limit of indemnity between the two products is separate. Therefore claims arising from a public law issue, for example, do not erode the indemnity limit for breaches of warranties.”

Laura Potamianos, Head of Real Estate at RSG Transactional Risks Europe, added, “Brokers prefer to negotiate with a single insurer and now RSG can provide up to £50m in Tax Liability insurance, £100m in W&I and now £275m in O&U protection. That is a compelling offering for our Real Estate clients.”

Commenting further, Jean Claude Domaingue, Director of CLS Risk Solutions, explained, “Cover for Real Estate risk needs to be clear. Whilst W&I perfectly addresses the “knowledge transfer risk” that is present in a transaction, O&U is the alternative to asking a seller to look into a crystal ball and warrant the future; O&U will protect buyers against a fully comprehensive list of future adverse events that could interrupt ownership or use, efficiently and effectively, without the need to construct or evidence a breach of the SPA. O&U will enable a more streamlined and transparent transfer of Real Estate risk which provides the buyer with a tangible advantage during the due diligence stage of the purchase.”

As the mergers and acquisitions insurance space become more competitive and innovative, RSG Transactional Risks Europe and CLS Risk Solutions stay ahead by continuing a track record of innovation in the transactional insurance market and bringing new products to this space that improve and enhance insurance cover for their insureds.

For more information, please contact:

• Ian Theato: D +44 (0) 208 068 2415, M +44 (0) 7970 222 114, ian.theato@ryansg.com
• Laura Potamianos: D +44 (0) 208 068 2419, M +44 (0) 781 421 5171, laura.potamianos@ryansg.com
• Jean Claude Domaingue: D +44 (0)20 3409 9520, M +44 (0)7899 753 939, jcdomaingue@clsrs.co.uk

About RSG Transactional Risks Europe

RSG Transactional Risks Europe is a specialised Managing General Underwriter (MGU), backed by A rated insurers, focused exclusively on providing transactional insurance solutions to the mergers & acquisitions community. RSG Transactional Risks Europe has a team of 19, comprising of lawyers from corporate M&A and Real Estate all trained in silver circle law firms.

RSG Transactional Risks Europe is a tradename of RSG Underwriting Managers Europe Limited, authorised and regulated by the Financial Conduct Authority, UK. RSG Underwriting Managers Europe Limited is a subsidiary of Ryan Specialty Group, LLC, specializing in underwriting management and other services for insurance products distributed through agents and brokers.

About CLS Risk Solutions

CLS Risk Solutions is a European MGU with secure A rated capacity, from some of the largest insurers in the world. It is fully regulated in the UK and Continental Europe, with a team of more than 40 underwriters. Its insurance products aim to remove uncertainty from Real Estate, infrastructure and renewable energy development projects and transactions.

Since 2009, CLS Risk Solutions has been an established partner to ERGO and Amtrust International and has insured €5bn of Real Estate in Continental Europe and over £100bn of Real Estate in the UK.