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Mergers & Acquisitions 2024 Transactional Risk Report

Download the M&A Transactional Risk Report to get the latest trends and insights in Asia and globally.

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Marsh globally placed transactional risk insurance limits of US$67.8 billion (up 38% from 2023) on over 2,750 policies (up 33% from 2023) across nearly 1,600 unique transactions (up 31% from 2023), representing over US$342 billion in aggregate enterprise value.

Another record year for Asia

Marsh Private Equity and Mergers & Acquisitions Services team in Asia placed a record 318 transactional risk policies – both primary and excess – across 148 completed deals. This represented a 30% increase in policy placements compared with 2023, providing over US$7.8 billion in protection limits for our clients and insuring transactions with an aggregate enterprise value exceeding US$32.5 billion. 

Asia claims volume remained stable 

In 2024, Asia recorded 20 notifications across 19 standalone deals. While the number of notifications was similar to 2023, there was a 46% increase in the number of standalone deals impacted. Tax claims outnumbered other drivers of losses in the region, accounting for 47% of all breaches notified in 2024, which represents a 15% increase compared to 2023. Financial statement breaches, absent in 2023, rose to represent 27% of all claims notified in 2024. 

Read the full report for trends on Asia and the region’s individual markets.

Key Asia highlights:

  • W&I Insurance market: 
    • Competition among W&I insurers remained robust, with businesses benefiting from more competitive pricing, improved policy terms, enhanced coverage, and less burdensome information requirements during underwriting.
    • Impact on insurance pricing: The average premium rate for Asia fell by 24%, from 1.7% in 2023 to 1.3% in 2024.
    • Impact on policy parameters: Many insurers have offered more favourable retention (e.g. 0.25% of enterprise value) and de minimis options for their policies. 
    • Impact on policy terms and conditions: Insureds continue to benefit, as some insurers agreed to remove common jurisdiction-specific exclusions. 
    • Impact on process: Insurers continued to focus on streamlining the underwriting process as a key differentiator, such as minimising underwriting questions, eliminating underwriting calls and more.
    • Rise in deal sizes: The proportion of deals valued between US$100 million to US$250 million increased significantly, from 20% to 33%. Conversely, the proportion of deals valued at US$50 million and below dropped from 25% to 15%.     
  • Tax liability insurance:
    • Demand for the product has increased due to greater client awareness and expanded insurer appetite, with premium rates for Asian tax risks ranging from 2% to 5%. 
    • Key risks insured include those related to the double tax avoidance agreement (DTAA) and coverage of domestic tax risks.
    • The use of tax insurance has expanded across the region, notably in China, Indonesia, Japan, South Korea, Singapore, and Vietnam. 
  • Top industries: 
    • Real estate overtook manufacturing as the top industry utilising transactional risk insurance in the region, followed by healthcare and communications, media, and technology.
  • Geography trends:
    • Japan: Outbound M&A activity experienced a resurgence, particularly towards the US, with these transactions comprising over 20% of the completed deal portfolio. Average premium rates fell by around 18%, from 2% in 2023 to just under 1.6% in 2024.
    • Southeast Asia: M&A activity in Southeast Asia recovered in 2024, with strong deal flow throughout the year. Average premium rates fell by 21%, from 1.4% in 2023 to 1.1% in 2024.
    • South Korea: An upturn in dealmaking later in 2023 saw the number of deals completed by our team increase by 75%. Average premium rates declined by 20%, from 1.8% in 2023 to just under 1.4% in 2024. 

Navigate the complexities of today’s M&A market with actionable insights to mitigate risks and seize opportunities. Download your copy of the M&A Transactional Risk Report here.

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Please note that Marsh PB Co., Ltd and Marsh McLennan are not engaged by nor involved in any manner with Bonus Ranch and its promotion, and has not placed any insurance for nor insured any of its businesses or operations. Marsh as a licensed insurance broker will not request customers to make payment via non-standard methods, such as the transfer of money to any individual’s bank account.