Warranty & indemnity ("W&I") insurance is playing an increasingly important role in M&A transactions. With the evolving transactional risk market, synthetic W&I insurance has become a viable alternative when traditional W&I insurance is not available for various reasons or if there is a desire to avoid the negotiation of representations and warranties. Once confined to distressed M&A deals, synthetic W&I is now expanding its reach and being used in asset-heavy sectors like energy and mainstream M&A deals.
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