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Global Transactional Risks review and outlook

February 17, 2022

What are the patterns and trends seen in 2021, how will this reflect on the market in 2022?
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2021 saw an upsurge in global levels of Merger & Acquisition (M&A) activity, with record transaction levels fuelled by the economic bounce-back as the first grip of the COVID-19 pandemic began to loosen.

According to figures from Refinitiv, M&A activity in 2021 was up 64% on the previous year with total deal value reaching USD 5.9 trillion1.

This was underlined by the fact that the same number of large global deals were completed in Q1 2021 as in the whole of 2020 (58 deals in the range of USD 1billion-10billion). This was the highest Q1 result since 2008 and one which set the tone for what proved to be the most active ever recorded.

Activity in the WTW Global Transactional Risk team followed this trend, as they advised on a combined total of over 1,500 Warranty and Indemnity (W&I) / Representations and Warranties and Tax / Contingent risk policies (which we group together as Transactional Risks insurance (TR)) in 2021.

It is expected that deal activity will continue to be strong into the first half of 2022 driven by a combination of macroeconomic factors, significant unspent investor dry powder and corporates refocussing following the ongoing impact of the pandemic.

We have assembled this review with contributions from our TR experts around the globe demonstrating:

  • The broader themes at play.
  • Patterns and trends seen in 2021.
  • Expectations for 2022.

Please download the full document on the link below:

Reference

1 https://www.refinitiv.com/perspectives/market-insights/dealmakers-ring-out-2021-as-the-year-of-ma/

Disclaimer

Willis Towers Watson offers insurance-related services through its appropriately licensed and authorised companies in each country in which Willis Towers Watson operates. For further authorisation and regulatory details about our Willis Towers Watson legal entities, operating in your country, please refer to our WTW website. It is a regulatory requirement for us to consider our local licensing requirements.

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