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

In June 2021, Euclid Transactional entered uncharted territory, receiving the most requests for R&W/W&I Insurance policies in its history. Additionally, for just the second time ever, Euclid Transactional bound over 100 policies in a single month. Due largely to the impact of Covid-19 last year, Euclid Transactional received over 185% more submissions for R&W/W&I insurance than in June 2020.  The 870 submissions we received in June 2021 were also 70% higher than our prior June record high in 2019.  We bound a June record 108 policies, up more than 370% compared to June 2020 and up 86% compared to our prior record June in 2019. For the past 7 months, average deal sizes each month have been $400 million or more, significantly higher than April through June 2020 where the monthly average was below $300 million. The average cost of our US primary policies continued to rise and was 37% higher than in June 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 into Q3? Feel free to reach out to Euclid Transactional to discuss this data or anything else.

One final note for Q2, Israel Rittberg passed away on June 30. He was instrumental in, and very proud of, Euclid Transactional’s growth. He will be missed.

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

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