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New Transaction Liability MGA secures deal with CBL Insurance

Capital Risks Limited (Capital Risks), a new Managing General Agency (MGA), has secured an agreement with CBL Insurance Ltd (CBL), of New Zealand to enable it to underwrite Transaction Liability Insurance.

With a specific focus on small and medium sized deals that are currently underserved in the market, Capital Risks will be offering capacity of up to GBP10 million on any one risk.  
 
The Transaction Insurance market has evolved significantly in recent years, with a higher number of merger and acquisition (M&A) deals being insured as capacity has increased and premiums become more attractive for purchasers. Extensive market research carried out by Capital Risks identified that this increase in business opportunity has led to many focusing on larger transactions, leading to increased minimum premiums and fewer options for small and medium sized transactions.
 
Having signed their partnership agreement with CBL, Capital Risks will initially offer Buyers and Sellers Warranty & Indemnity Insurance. CBL is the largest and oldest provider of credit surety and financial risk in New Zealand with a financial rating of A- (Excellent) from A.M. Best, and is owned by public company CBL Corporation Ltd which is listed on the Australian (ASX) and New Zealand (NZX) stock exchanges. 
 
Capital Risks has been founded by Nathan Sewell and Jason Edwards.  Nathan has managed Transaction Insurance Teams at Aon and Willis, establishing the first dedicated London broking team for Transaction Insurance at Aon in 1998. Jason’s experience dates back to 2004 when he was a member of the Willis M&A Practice.
 
Nathan Sewell (pictured), CEO of Capital Risks, says: “We have designed our insurance products to fill a void in the market. It offers an opportunity for regional and specialist M&A Insurance Brokers to develop a new revenue stream. At the same time, it solves an issue that often frustrates stakeholders involved in small to mid-market M&A transactions, such as Lawyers and Corporate Financiers. With our minimum premiums being lower than the market norm, we will be particularly attractive for M&A transactions which require insured limits of GBP2 to GBP10 million.”

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