The number and size of insurance claims against mergers and acquisitions is on the rise, underscoring the risk companies can take when negotiating deals. Insurer American International Group Inc. said a study of M&A claims filed between 2011 and 2015 found that 23% of deals with a value of more than $1 billion end in a claim. “The bigger and more complicated a deal is, the more likely there is an unknown liability lingering,” said Mary Duffy, Global Head of M&A Insurance, AIG. “We are paying sizeable claims, sometimes writing eight-figure checks in different geographies.” AIG shares are down 9% in 2017 so far, while the S&P 500 has gained 4.4%.
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