The following is a LinkedIn Article written by Jay Rittberg, Managing Principal at Euclid Transactional.
Our April 2025 representation and warranty/warranty and indemnity insurance (RWI) data reveals only a slight cooling of robust M&A activity as participants absorb the implications of recent US tariff actions and continued volatility. Global submissions and average enterprise values remained relatively flat, while policy bindings declined from the record levels in March and were just below the record levels of April 2024, perhaps indicating a cautious but still very active market. Our data also indicates that buyers and sellers may be focusing more on potentially tariff-resilient sectors such as software, domestic-focused manufacturing, transportation/logistics, and advisory services.
Euclid Transactional received 830 RWI submissions globally in April, totaling our highest April on record for submissions but down 2% from the prior month and up 10% from April of last year. The average enterprise value of global RWI submissions for April was $433.53M, up 2% from the prior month but down 20% from December 2024’s record of $540M. We bound 101 RWI policies globally in April, our second highest ever for April, just 6% below our record April 2024.
Looking ahead, we expect buyers to continue their measured approach amid shifting macroeconomic conditions and trade uncertainty. However, the strength of submission activity suggests that many are well-positioned and ready to act on high conviction deals when the right conditions emerge.
Euclid Transactional remains focused on increasing and maintaining 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 Studyhighlights 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.
