US Appeals Court’s M&A ‘Bump-Up’ Ruling Deepens Insurance Fight

A federal appeals panel handed a win to insurance giants when it ruled a widely used “bump-up” exclusion bars coverage for post-M&A shareholder settlements, but all eyes are on Delaware’s high court to see how the broader fight plays out.

In its May 28 opinion, the US Court of Appeals for the Fourth Circuit largely set aside Willis Towers Watson Plc’s arguments that its directors and officers insurers—including units of American International Group Inc. and Chubb Ltd.—were on the hook for a $90 million settlement with shareholders following a 2016 deal.

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