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Ironshore expands mergers and acquisitions consortium capacity

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Ironshore Inc. on Wednesday said it is increasing its mergers and acquisitions consortium capacity to £100 million ($130.4 million) from its previous limit of £78.5 million ($102.3 million), effective immediately.

Ironshore’s M&A and tax insurance unit also announced a new tax consortium with initial capacity of £40 million ($52.1 million). Both consortia will be able to write in combination with Ironshore’s Bermudian platform for global risks in order to further increase total available capacity, the insurer said in a statement.

Ironshore said this will allow the company to provide total M&A capacity of up to £150 million ($195.6 million) and total tax insurance capacity of up to £65 million ($84.7 million) on any one risk.

Ironshore’s M&A consortium underwrites warranty and indemnity coverage for non-U.S. complex commercial risks. The tax consortium covers tax liability exposure for domestic and cross-border risks. It was formed to provide higher limits in response to greater market utilization of tax liability insurance for transactional protection, Ironshore said. 

“Ironshore recognized heightened M&A activities impacting virtually every sector throughout our global platform demanded an increase in available capacity to satisfy clients’ appetite for larger coverage limits and structured protection for tax liability risks,” Mark Wheeler, CEO of Ironshore International, said in the statement. “Our consortia offerings allow for consistent underwriting, assurance of transactional confidentiality, as well as streamlined claims management.”