JLT M&A Global Review

Transcription

1 JLT M&A Global Review

2 Over $4bn 800 (650 excluding USA) JLT have placed insurance in 2012 on deals with a combined value of over $4 billion. Estimated global M&A insurance policy count in 2012: 800 (650 excluding USA). Top 5 territories by premium US, UK, Australia, Germany, Sweden Over 80% $350 to 400m 4 Top sectors Over 80% of policies listed the buyer as the insured party. Current insurance market capacity of $ million. Real estate, tech, healthcare and infrastructure are the top 4 sectors that use M&A insurance Top 5 Uses 1Buyer W&I policy to enable the seller s clean exit 4Seller W&I to back private seller s warranty cap 2Buyer W&I to stand behind seller cap if solvency is in doubt or when investing in a new territory 3Seller W&I to wrap up historic liabilities from sales when winding up a fund or liquidating a company 5Specific issue policy to deal with tax, litigation or other uncertainties

3 South Africa 2012 M&A value of South African transactions: USD12.2bn Increasing investment into South Africa as a launch pad for growing sub-saharan economies. Canada JLT specialist expertise in mining, energy and natural resources Local offices in Toronto, Vancouver, Calgary, Montreal, Edmonton and Surrey. South America Local JLT offices in Brazil, Colombia, Chile, Peru and Mexico Brazil now 6th largest global economy (based on IMF statistics) Total value of announced M&A deals in Brazil USD71bn for 2012 (809 reported deals) M&A insurance policies pending regulatory approval for Brazil-Brazil domiciled M&A M&A Hubs International M&A involving South American targets frequently insured. UK Sweden USA Southern Europe Australia Singapore & PRC 1.5bn real estate deal Additional warranty protection secured with the use of a buyer s W&I policy Insurance satisfied the buyer s warranty requirements and enabled the deal to sign. 125M EUR merger of two Nordic industrials Requirement to cap future liability for retroactive and unknown liabilities to secure future value of JV and collaboration between respective owners Two separate buyers representations and warranties insurances covered all retroactive liability, whilst enabling a clean entrance and providing the necessary indemnification level to allow the deal to sign. $50m sale of a care in the home franchise business Buyer s policy placed to protect PE investor Increased financial protection available helped the deal over the line. Development of a renewable energy plant stalled by spurious challenge to planning permission Lending banks would not release further funding until issue resolved Policy placed to protect against the negative outcomes associated with the challenge Lending banks given the required comfort and released the next tranche of funding. AUD 70m purchase by a major ASX listed corporate of a long established private business from a complex family trust Buyer concerned with ability to recover from the seller for breaches of warranty due to nature and complexity of selling entity Buyer W&I policy paid for by seller for 50% of the EV gave buyer comfort to invest and seller a clean exit. Sale of large commercial real estate development in Beijing Buyer gained insurance to protect their investment in an unfamiliar jurisdiction Comfort taken from the ability to claim against an A+ rated international insurance company.

4 About us JLT s Global M&A Practice was created in response to the emergence of insurance products offering faster and more creative solutions to closing deals. Our focus is within clearly defined industry and risk sectors where we have become a leading global market performer, providing our clients with insurance and risk management services. We offer a genuine alternative in the M&A insurance market for both buyers and sellers around the globe. Regardless of the geographical dynamics of the deal, we will commit our specialists where and when you need them. Ultimately, it is our ability to evolve with every deal and stay ahead of the game that gives you the advantage. Our 20-strong global M&A team is based in London, Stockholm, Singapore, Hong Kong and Sydney. Since the emergence of M&A insurances, our specialists have put in place insurance solutions for deals across the world.

5 JLT Australia Level 11, 66 Clarence Street Sydney NSW 2000 Tel +61 (0) Fax +61 (0) Jardine Lloyd Thompson Pty Ltd ABN AFS Licence Level 11, 66 Clarence Street, Sydney NSW 2000 (02)