The Impact of Covid-19 on R&W/W&I - Euclid Transactional April 2021 Update

In March 2021, Euclid Transactional closed out yet another a record-breaking quarter and month for R&W/W&I Insurance. Euclid Transactional received over 85% more submissions for R&W/W&I insurance than in March 2020. We bound a March record 95 policies, up more than 250% compared to March 2020 and up nearly 70% compared to our prior record March in 2019. March 2021 also had over three times more submissions and close to seven times more bound policies than April 2020, when Covid-19 slowed M&A considerably. For the past 8 months, average deal sizes each week have been nearly $300 million or more, significantly higher than April through June where the range was typically around $150 million to $250 million. The average cost of our US primary policies continued to rise and was 30% higher than in March 2020. We attribute this increase in rate to clients and brokers recognizing that Euclid Transactional and other established markets have paid hundreds of millions of dollars of claims, and valuing insurers that have a proven track record for deal execution and fairly and efficiently paying claims. 

Do these numbers line up with what you are seeing in the deal world and the quotes you are receiving for R&W insurance? Do you expect this high deal volume to continue in Q2 2021? Feel free to reach out to Euclid Transactional to discuss this data or anything else.

Euclid Transactional Global R&W/W&I 2019-2021

Euclid Transactional Global R&W/W&I Recent Weekly Submissions and Average Enterprise Values March 2020-March 2021