Ironshore International's mergers and acquisitions unit now will provide coverage for political risk exposure.
The company said that it will enhance its current representations and warranties insurance for merger and acquisition transactions by providing supplemental coverage for certain political risks that may arise in a number of volatile territories.
According to Ironshore, the program is designed for those transactions where the buyer faces key asset risk, such as loss of extraction rights or operating licenses, or other natural resource risks that pose potential obstacles for completion of the transaction. It will offer protection for buyers and lenders against confiscation, nationalism, and loss of rights to or license of the underlying investment, the company noted.
“Until now, there has been limited access to political risk cover specifically designed for merger and acquisition activities,” said Robert Brown, the global head of the M&A unit. “Buyers can be assured that a commercially attractive business, while confronted with unknown political risk scenarios, can now obtain representation and warranties protection with political risk event coverage enhancements to facilitate investment committee approval and transaction financing.”
Ironshore said that its political risk programs protect international and domestic trade flows and foreign investment strategies for manufacturing and trading companies and financial institutions. Traditional “failure to pay” insurance is underwritten for private obligors, as well as public sector sovereign and non-sovereign entities. Political risk insurance products also can be designed to address a range of risk perils, such as currency inconvertibility, non-transfer risk, expropriation, and deprivation, among others.
Learn more: www.ironshore.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].