For more information, contact:
Richard J. Patterson, President
Phone: 860-257-0606
rpatterson@caticaccess.com
On August 22, 2008 Fitch affirmed the A- Insurer Financial Strength (IFS) rating of CATIC. Consistent with Fitch's view of the title insurance industry as a whole, Fitch revised its rating outlook to negative.
In its rationale for affirming the rating, Fitch stated:
The company's strong balance sheet fundamentals include an above average Fitch risk adjusted capital (RAC) ratio of 326% at year-end 2007. CATIC's RAC ratio is the highest in Fitch's rating universe and a key consideration behind its financial strength rating. Operating leverage, measured by the ratio between net written premium and policyholders' surplus was 1.2x, which is considerably better than the 5.6x average for Fitch's title insurance rating universe.
Fitch also noted that CATIC had done a good job in holding onto surplus (CATIC was one of the few title insurers to realize surplus growth in 2007). It once again noted a conservative balance sheet and a strong capital position as factors supporting the IFS rating.
Fitch did renew its comments about CATIC's geographic concentration in New England and its ability to access outside capital. These concerns have been ongoing for Fitch since the inception of its IFS program for title insurers and apply to both CATIC and Attorneys' Title Insurance Fund. These companies are privately held, regional title insurers.
Richard J. Patterson, President of CATIC, stated that, "We are pleased that Fitch affirmed our A- rating and recognized CATIC's strong capital position. Our 326 Risk Adjusted Capital (RAC) ratio is the highest ever achieved by a Fitch-rated title insurer. I am proud of the efforts of the CATIC staff in achieving this record during a difficult period for the title industry and the entire housing sector of the economy."
About CATIC
CATIC is the major operating subsidiary of its parent holding company, CATIC Financial, Inc. CATIC is New England's largest domestic and only Bar-Related® title insurance underwriter. The Company has seven offices throughout New England and issues its policies through a network of more than 3,000 attorney agents.
CATIC is currently licensed in Connecticut, Massachusetts, Rhode Island, Vermont, Maine, New Hampshire and New Jersey. The Company is an underwriting member of the American Land Title Association (ALTA) and the North American Bar-Related® Title Insurers. Through an affiliate, the Company also provides services in connection with tax-deferred exchanges of like-kind property.