New Players Continue to Eye R&W Insurance Market Despite Recent Exits

Aaron Slavens, chair of Holland & Knight's national Private Equity practice, was quoted in an The Insurer article on the U.S. representations and warranties (R&W) insurance market as it rebounds from pricing softening in 2023 and 2024 and recent carrier exits. The article noted that although the market remains robust and competitive, with insured-friendly deal terms, premiums are climbing amid a gradual recovery in mergers and acquisitions (M&A) and accompanying rise in claims activity. It also highlighted that new entrants, including European players, are exploring opportunities to enter the space. Mr. Slavens commented that the transactional liability market remains susceptible to external factors such as geopolitical policy that can derail deals but also predicted an uptick in claims as the industry catches up from the high-volume years of 2021 and 2022 and more companies look to initiate or close transactions.

"[P]ressure on private equity funds to both deploy capital and exit existing businesses (is) going to push a lot of M&A into this year," he said.

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