Mitrovic Consulting

I pioneered the representation and warranty (“R&W”) insurance business in the early 1980’s by responding to private equity asset sellers and their large law firm counsel, seeking an insurance solution to eliminate the seller escrow holdbacks required by acquirers to assure cash was available to compensate for breaches of seller R&W in the sale transaction, thus preventing a full cash distribution of sale proceeds. The alternative was a deep buyer discount to the cash purchase

Finite insurance is an insurance contract lasting several years in which the insured pays a premium into a fund managed by the insurer. If losses are low at the end of the term, the insured gets a refund. If losses exceed the limit, the insured pays an additional premium or the deal ends. In essence, it is a combination of self insurance and capped, limited risk transfer. AIG wrote a finite risk policy for Phil Ritson, a well known South African golf professional, instructor,