A buyer of real estate was acquiring a piece of commercial real estate in Hamburg which was multi-tenanted.

Where a buyer acquires an entire business or business unit from a seller, the buyer also acquires legal liabilities for business related taxes and withholding tax on a secondary tax basis under Section 75 of the German General Fiscal Code.

We issued a policy for in excess of EUR 25m to protect the buyer against an unexpected tax charge which was a risk the buyer was unable to take and had limited recourse to the seller so the insurance policy provided a neat solution to managing risk for the buyer, a large institution.