The following is a LinkedIn Article written by Jay Rittberg, Managing Principal at Euclid Transactional.
May 2025 representation and warranty/warranty and indemnity insurance (RWI) data showed continued momentum in the M&A market, with strong submission and bound policy activity. The market remains resilient, supported by rising average enterprise values and growing optimism for a potentially active summer and second half of 2025. It appears that buyers and sellers have stayed focused on new or previously sidelined opportunities in the dealmaking environment while navigating macroeconomic and geopolitical headwinds.
Euclid Transactional received 914 global RWI submissions in May, our highest May on record and the highest monthly total in 2025, up 8% from April. The average enterprise value of these submissions was $490.55M, a 13% increase from the prior month and the highest monthly average this year. We bound 104 RWI policies globally in May, up 3% from April, marking both the second-highest monthly total in 2025 and the second-highest May bound deal count on record.
Euclid Transactional remains focused on increasing and maintaining sustainable RWI rates on line to continue to deliver the exceptional underwriting service and fair and efficient claims process for which we are known. We proudly announced earlier this year that we eclipsed $1 billion in RWI claims paid in less than 9 years of operation, including $300 million in RWI claims paid in 2024 alone. While aggregate premium rates have been rising in 2025, they remain below the levels most industry experts consider profitable and sustainable. Our 2024 Global RWI Claims Study highlights the increasing severity of loss payments, underscoring the urgent need for meaningful and lasting upward rate movement.
Do our numbers align with your experiences in the M&A and RWI markets? What are your expectations for M&A in the remaining three quarters of 2025? Feel free reach out to Euclid Transactional to discuss these or any other topics.
