Title Insurers Form Reinsurance Alliance with Lloyd's of London
|June 19, 2012|
Five title insurance underwriters have formed a reinsurance alliance with Lloyd's of London, which is AM Best Rated A XV (Excellent), S&P rated A+ (Strong), and Fitch rated A+ (Strong).
The alliance, which is called the American Title Reinsurance Alliance (ATRA), was formed in order to ensure that the participating companies have a secure source of reinsurance for large transactions on favorable terms. The companies participating in ATRA are: Agents National Title Insurance Co., which is based in Columbia, Mo.; Alliant National Title Insurance Co., which is based in Longmont, Co.; Attorneys' Title Guaranty Fund of Colorado, which is based in Denver; CATIC, which is based in Rocky Hill, Conn.; and Security Title Guarantee Corporation of Baltimore, which is based in Baltimore. It is anticipated that other insurers will be joining the alliance, according to Lloyds of London.
The Beazley Syndicate is the lead underwriter at Lloyd's. Three other Lloyd's Syndicates are participating in the coverage. All have an AM Best Rating of A or better.
"We are pleased to have entered into this relationship with Lloyd's,” said Rich Patterson, president of CATIC. “This program enhances our ability to insure large transactions while reducing our exposure to loss. In addition, it allows us to obtain reinsurance on very favorable terms. This will enable us to be more competitive for multi-million dollar transactions."
Richard Tomkins of Integro, an international insurance broker and risk management firm that arranged the program with Lloyd's, said "Lloyd’s has had a long association with reinsuring large ‘family’ title insurers and we are delighted to have provided a long term and cost effective solution for the regional companies. With reinsurance now on a secure footing and favorable limits available, these regional companies will go up against their competition from a strength to strength basis."
Thompson, Flanagan & Company insurance brokers based in Chicago played a pivotal role in bringing the parties together.