Allianz Global Corporate & Specialty (AGCS) has launched a transactional liability unit in North America, to assist commercial clients against risks in dealmaking.

The new unit will help clients face inherent risks presented by M&A transactions.

It will provide financial protection against inaccuracies made about target companies or businesses with respect to mergers, acquisitions and divestitures.

The company is also planning to launch the units in Asia and Europe in the near future.

AGCS, in collaboration with several other carriers, has appointed Euclid Transactional as its managing general agent (MGA).

Euclid is specialized in the underwriting of representations and warranties, tax liability, contingent liability and other transaction insurance coverages.

AGCS North America financial lines regional head Paul Schiavone said: “Given the continuously active and strong M&A landscape, we are excited to build a long-term partnership with some of the most respected underwriters in the industry and look forward to expanding our transactional and private equity related offerings.

“As a carrier partner with Euclid, we will be able to provide the specialized services needed to meet today’s competitive climate.”

AGCS financial lines global head Bernard Poncin said: “The appetite for transactional liability has increased tremendously over the past couple of years with a global market penetration of 20%.”

Earlier this year, AGCS launched its North American financial lines unit that offers coverages, including financial institutions coverage, commercial management liability and professional indemnity liability (errors and omissions).

With operations in around 160 countries, AGCS offers insurance and risk consultancy services for its customers.

Image: Allianz has launched transactional liability unit in North America. Photo: courtesy of Allianz.