Finlex offers protection against shareholder activism

Shareholder activism is one of the fastest growing threats to publicly traded companies. Such campaigns cost the “attacked” company a lot of time and money. In cooperation with Volante, the innovative Shareholder Activist Protection Insurance can now be taken out.

Shareholder activists are mostly minority shareholders who want to effect change in a company. Their spectrum is broad, from environmental concerns to corporate governance and profit distribution to internal culture and the business model. To achieve this, they use a wide variety of tactics, from media pressure to threats of litigation. No publicly traded company is immune from shareholder activism; they target companies of all sizes and in all sectors of the economy.

Most companies are not prepared for these campaigns. Defending against potential reputational damage to companies and management costs a lot of time and money. This involves legal advice and targeted management consulting as well as public relations (PR) costs.

In Germany, shareholder activism has increased significantly in recent years. In 2021, 44 listed companies were affected by public activist campaigns.

World’s first insurance against shareholder activists

Volante’s Shareholder Activist Protection Insurance (SAPI) is the world’s first insurance solution to proactively help companies manage shareholder activist risk. This insurance covers the expenses necessary to defend against shareholder activists.

“This innovative and unique solution, and the collaboration of Volante and Finlex, allows us to better support our collaboration brokers in providing comprehensive client service and advice,” said Dr. Stephanie Belei, Head of Client Management – Global Corporates.

The key facts about “Shareholder Activist Protection Insurance” can be found here in a compact summary: