Travelers Partners With ASQ Underwriting

Travelers has partnered with ASQ Underwriting, a managing general underwriter, to offer transactional risk insurance in the US, as strategic and private equity investors increasingly turn to insurance to mitigate deal risk and compete for acquisition opportunities.

Under the agreement, ASQ Underwriting will underwrite transactional risk policies for Travelers, with an initial gross capacity of $50 million per transaction. Travelers will manage the claims process in close coordination with ASQ Underwriting.

Transactional risk insurance covers risks related to mergers and acquisitions (M&A), including representations and warranties insurance, tax liability insurance and contingent liability insurance. These policies can reduce the funds required to be held in escrow and provide risk transfer options for contingencies identified during due diligence, helping buyers and sellers close deals more efficiently and with more certainty.

“Transactional risk is an exciting segment of the insurance market that has seen significant growth over the past several years, and it’s a natural extension of our current suite of specialty offerings. We are pleased to have an exceptional partner in ASQ Underwriting. Their market-leading experience and expertise in this area will help our customers manage the unique and significant risks that come with M&A.” – EVP and President of Bond & Specialty Insurance at Travelers, Tom Kunkel.

ASQ Underwriting has offices in Atlanta and New York and is led by Directors and Co-founders Jeff Anderson and Wayne Datz. According to Anderson, “Our partnership will enable us to combine the ASQ Underwriting team’s M&A insurance experience with Travelers’ financial strength and expansive distribution network to offer competitive transactional risk insurance, with a particular focus on the active middle market segment.”