Trump's $454M bond for civil trial case not appealing to insurers
Nearly 30 insurance companies declined to underwrite the bond
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Court documents filed this week reveal the "insurmountable difficulties" former President Trump, the presumptive 2024 GOP presidential nominee, is having in obtaining an appeal bond for the New York civil matter brought by Attorney General Letitia James.
Lawyers for Trump say nearly 30 insurance companies declined to underwrite a $454 million bond for Trump and his co-defendants because real estate would not be accepted as collateral.
Bond experts say a possible second headwind is headline risk, the chance issuing the bond will create a negative reaction for an insurance company.
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Former President Trump addresses the press at Mar-a-Lago in West Palm Beach, Florida, on Feb. 16. (Joe Raedle/Getty Images / Getty Images)
"It's somebody that everybody seems to have a strong opinion for, whether you're for or against," says Neil Pedersen, owner of Pedersen & Sons Surety Bond Agency Inc.
Earlier this month, insurance company Chubb posted a nearly $92 million appeal bond for Trump in the federal defamation case involving E. Jean Carroll.
After investor concern, Chubb’s CEO Evan Greenberg spoke in defense of issuing the bond in a letter to investors.
"We don’t take sides," Greenberg wrote. "I fully realize how polarizing and emotional this case and the defendant [Donald Trump] are and how easy it would be for Chubb to just say no. However, we support the rule of law and our role in it. We considered this the right thing to do, and we frankly left our own personal feelings aside."
New York Attorney General Letitia James speaks during a press conference in New York City on Sept. 21, 2022. (Michael M. Santiago/Getty Images / Getty Images)
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Greenberg’s letter may illustrate the headline risk other insurance companies now seek to avoid, said Pedersen.
"It's obviously not helping the case. It's not a positive," he said.
"Given the blowback Chubb has experienced, it’s unlikely another surety will take this on," added Alex Hanley, CEO of Jurisco Surety Bonds.
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Speaking outside a Palm Beach, Florida, polling site on Tuesday, Trump addressed Monday’s deadline for his $454 million bond.
"I built a great company, one of the greatest companies anywhere in the country, especially when it comes to real estate. Have some of the greatest assets in the world," Trump said.
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Trump’s lawyers have asked the court to reduce the amount of the bond required to stay enforcement of the judgment.