The following is a LinkedIn Article written by Jay Rittberg, Managing Principal at Euclid Transactional.
Submission volume maintained positive momentum in February despite daily headline risk within the broader economy. Euclid Transactional received 744 representation and warranty/warranty and indemnity insurance (RWI) submissions globally in February, our highest February on record, showing a 26% increase over last February (our previous highest February total). These numbers are coming off our highest number of January submissions on record, as referenced in our prior post. This submission activity suggests that the cautious optimism that opened the year persisted into February, despite potential headwinds from ongoing inflationary pressures, sticky interest rates, and heightened political-economic uncertainty. While the appetite for M&A remains—particularly in sectors like software, AI, and financial services—dealmakers are navigating a more selective investment environment, and may be opting to wait for more clarity from the Fed, potential tariffs, and broader macro signals before pursuing large-scale transactions to spark the M&A surge that many expected going into this year.
We bound a record 97 RWI policies globally in February, up 20% from last February’s results and up 26% from January, making it the most active February in our history. The global average enterprise value of submissions in February increased 10% from last month to $418m, coming off our highest average monthly enterprise value on record in December.
We are excited to announce we have eclipsed $1 billion of RWI claims paid. This number demonstrates our commitment to fair and efficient claims handling. In 2024 alone, we paid over $300 million in claims. While aggregate premium rates have been rising, they remain well 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. In 2025, Euclid will continue advocating for necessary rate increases while remaining dedicated to providing exceptional underwriting execution and claims handling for our partners in the M&A ecosystem.
Do our numbers align with your experiences in the M&A and RWI markets? What are your expectations for M&A in 2025? Feel free reach out to Euclid Transactional to discuss these or any other topics.
