Tuesday, January 25, 2011

The first one domestic M & A to ensure that the insurance was born late last year quietly

 As the global economic recovery and the Chinese government to accelerate the And how to prevent, such as regulatory risks, legal risks, asset risks, labor risks, taxation and environmental risks and other risks of mergers and acquisitions, corporate mergers and acquisitions have become common problems.

to private equity funds, for example, it often immediately after closing the sale proceeds to its investors, distribution of M & A targets or new investment, reluctant to assume any liability under the warranty or the funds established the existence of a third party escrow account. At this time, you need a private equity M & A policy. It is reported that private equity funds have played an important role in M & A market, published in 2010 related to acquisition of private equity funds close to 580 the number of transactions, representing an increase of approximately 66% in 2009.

rapid growth of mergers and acquisitions

the so-called M & Guarantee Insurance (In 2009, AIU Insurance Regulatory Commission the filing of the first acquisitions of domestic insurance policy buyer, the seller of a 2010 report prepared by first policies, the end of 2010, the domestic

2010 by the end of Marsh broker in 2011 released the six elements of risk management in one of them is the Marsh suggested that Chinese companies involved in the transaction and private equity funds entrusted to professional risk management company to complete its risk and insurance due diligence, to discover hidden liability that may exist. deliberately concealed (only for the buyer insurance policy), or omitted to state company information, or violation of the merger contract guarantees the statements listed in the loss to the buyer, or liability to the buyer. The terms of a single policy for the buyer, the seller also cover defense costs incurred. The object is the protection of insurance products, mergers and acquisitions transactions in the acquirer (or buyer) or purchaser (or seller).

M Insurance can do

(This article Source: Report of China Insurance: Dr Liu)
and the other to operate successfully in the international insurance market for many years before being introduced into China's insurance is different from insurance in overseas mergers and acquisitions is only 10 years. Stubbings said, from a global point of view, M & A insurance coverage rate is relatively low, also about 1% -2%.


insurance broker Marsh, senior vice president, commented Wei Steel, M & Guarantee Insurance from an objective solution to the controversial restrictions on the degree of compensation for breach of contract, bond or escrow account and dispute the adverse conditions dispute resolution under the occurrence of the economic and time costs. With this product, the buyer can improve the competitive bidding chips to ensure the safety of debt financing the acquisition; seller may bidet peel, remove the legacy of continuing obligation.

rate was not high for this emerging insurance products, Chartis reason to promote its power from the

AIU Insurance Beijing branch, told reporters the person concerned, the first acquisition of the guarantees set out insurance policies to ensure the statement reached hundreds.

according to data recently released by PricewaterhouseCoopers in 2010 China M & A transactions (including mergers and acquisitions of domestic enterprises, foreign mergers and acquisitions of domestic enterprises and Chinese enterprises overseas M & A) disclosure of the amount of quantity and record high. M & A deals announced in 2010 a record number of 4251, the disclosure of the transaction amount has been reached 202.9 billion U.S. dollars, compared with 2009 grew by 16% and 27%. The Thomson Reuters data released since the first half of 2010, the M & A transactions in Asia grew more than 67% in 2009, only to surge 275% in Hong Kong.

1 18, AIG General Insurance Company Limited (M & Insurance

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