The following is a LinkedIn Article written by Jay Rittberg, Managing Principal at Euclid Transactional.
June 2025 representation and warranty/warranty and indemnity insurance (RWI) data shows an exceptionally strong month for M&A activity, wrapping up a record Q2 2025 for RWI submissions. Despite expectations of M&A headwinds heading into Q2 2025 from U.S. tariff announcements and related market volatility, a resilient M&A market instead grew to higher levels than Q1 2025. Dealmakers are likely closely watching how tariffs announced by the U.S. administration to begin on August 1st this year may have an impact on an otherwise surging M&A market going into in Q3 2025.
Euclid Transactionalreceived 1,021 global RWI submissions in June, our highest June on record and the second highest monthly total in Euclid’s history (9% lower than our record October 2021). Q2 2025 finished with 2,765 RWI submissions, not only a record Q2 for submission activity but the most global RWI submissions we have ever received in any quarter, beating our previous quarterly record from Q4 2024 by almost 11%.
In June 2025, Euclid Transactional bound 124 RWI policies globally, up 19% from the prior month and the most for any June in Euclid’s history. The average enterprise value of June 2025 global RWI submissions was $411.53M, down 16% from the particularly high average enterprise value of RWI submissions in the prior month, but still representing the second highest average enterprise value of RWI submissions for any June in our history.
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 second half of 2025? Feel free reach out to Euclid Transactional to discuss these or any other topics.
