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Specialty Surety Solutions

To provide you with the highest level of service, we have dedicated specialty surety teams that are intimately familiar with the nuances of your industry.

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Private equity and M&A

We also provide a dedicated surety team devoted to private equity (PE) transactions. Our many years of experience in the industry enables the team to accurately project how the surety markets are likely to respond so private equity firms can properly forecast their acquisition model.

Our dedicated Private Equity Surety team ensures you receive the best available expertise, regardless of your location. The concentrated deal flow allows for the cultivation of underwriters that have the sophistication to put these unique deals together. Otherwise you may be subject to geographical limitations and varying levels of expertise.

Public-private partnership (P3 or PPP)

We recognize the growing importance of public-private partnerships (P3 or PPP) around the world as it becomes the pre-eminent means of procuring economic and social infrastructure by the public sector.

One of the key principles of PPP is that risks are allocated to the party best placed to manage them most cost effectively. The inherent flexibility of the PPP model enables responsibility for the key risks to be distributed on a bespoke basis between the key stakeholders. Such flexibility enables the key stakeholders to negotiate and agree to the optimal allocation of risk and responsibilities and to deliver the best value for money solution.

To provide you with a high level of service, in line with your PPP investment requirements, we have a dedicated team of experts who are intimately involved in all aspects of the specialist services that you require for your project’s unique needs.

Surety bonds vs letters of credit

As surety bonds remain the most cost effective form of credit, a growing number of companies are now maximizing their surety capacity to replace letters of credit and release restricted capital at preferred terms. Surety bonds not only reduce risk to your balance sheet, but also provide valuable working capital by freeing up bank facilities.

Surety Bond Bank Letter of Credit
Security
  • Surety bonds issued mainly on an unsecured basis
  • No effect on your credit line
  • Sometimes viewed as credit enhancement
  • Causes reductions in existing credit lines
  • Increase borrowings reflected as liability on financial statement
  • Bank requires:
    • Indemnity
    • Potential personal guarantees
    • Pledged assets
Service
  • Wording flexibility available to allow personalization to client needs
  • Dedicated and specialized service
  • No wording flexibility
  • Little or no dedicated service regarding the bank guarantee itself
  • Small product bundled with packaged financing

Disclaimer

Willis Towers Watson hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, Willis Towers Watson offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).

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