News Releases

ACE Progress Report Examines Mergers & Acquisitions and Related Insurance Considerations
Apr 12, 2011

PHILADELPHIA--(BUSINESS WIRE)--The number of mergers and acquisitions is rising, and analysts expect this trend to continue, as businesses demonstrate greater confidence in economic recovery and prepare for a return to growth. Recognizing that the legal and regulatory environment is changing and responding with practical solutions, ACE USA, the U.S.-based retail operating division of the ACE Group, today made available a new white paper developed by ACE USA’s Mergers & Acquisitions Insurance Underwriting unit.

“M&A Risk Management: Avoiding Pitfalls, Finding Solutions,” was authored by Seth Gillston, Senior Vice President of ACE USA’s Mergers & Acquisitions Insurance Practice, with contributions from ACE product specialists who explain the potential for unseen or underappreciated risks and clarify the process for selecting appropriate insurance coverages.

“This white paper is a roadmap that will assist these parties in the risk-identification process with M&A insurance solutions,” said Mr. Gillston. “This report argues that a coordinated approach to managing the inherited risks and liabilities of a merger, acquisition, or divestiture is a best practice.”

In the white paper, Mr. Gillston outlines questions dealmakers should consider prior to closing an M&A transaction to help identify potential liabilities. He explains critical functions of the deal and advocates working with an insurance partner that is equipped to handle unique challenges as they emerge.

Mr. Gillston is joined by other ACE product executives who discuss keys to success in an M&A transaction and how to obtain protection from a range of transactional insurance products, including environmental, property, casualty, successor liabilities, directors’ and officers’, as well as claims servicing issues to consider.

In addition, Mr. Gillston discusses the post-closing process and guides dealmakers through the post-mortem analysis of the transaction. A retrospective view of the program structure can prove invaluable in the future if and when the business changes and grows, as in the case of product line or geographic expansion.

This new report is presented as part of ACE Progress Reports SM, a collection of articles, executive reports, and white papers on current and emerging risk management issues.

The ACE USA Mergers & Acquisitions Underwriting unit is part of ACE Risk Management, which offers comprehensive risk management programs and services that are uniquely designed and customized to assist companies in any industry deal with the significant costs of financing and managing risks. To learn more about ACE Risk Management’s products and services, and those of the ACE USA Mergers & Acquisitions Underwriting unit, please visit www.aceusa.com.

ACE USA is the U.S.-based retail operating division of the ACE Group, and is rated A+ (Superior) by A.M. Best Company and AA- (Very Strong) by Standard & Poor’s. ACE USA, through its underwriting companies, provides insurance products and services throughout the U.S. Additional information on ACE USA and its products and services can be found at www.aceusa.com. Celebrating 25 years of insuring progress, the ACE Group is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE:ACE), a component of the S&P 500 stock index, the ACE Group conducts its business on a worldwidebasis with operating subsidiaries in more than 50 countries. Additional information can be found at:www.acegroup.com.

 

Contact:

ACE North America Communications
Carla Ferrara, 215-640-4744
carla.ferrara@acegroup.com