For more information, contact:
Richard J. Patterson, President
Phone: 860-257-0606
rpatterson@caticaccess.com
Rocky Hill, CT (August 11, 2008) CATIC, New England's largest domestic and only Bar-Related® title insurance underwriter, is pleased to announce that it has once again earned the highest "RAC Ratio" among rated companies in the title insurance industry from Fitch Ratings, the industry's premier financial rating agency. The RAC Ratio ("risk adjusted capital") is a measure of a company's financial strength, and takes into account the relationship between a company's assets and the risks which it has assumed.
CATIC's RAC Ratio for year-end 2007 is set at 326, an increase from the previous year's RAC of 298. CATIC and Attorneys' Title Insurance Fund (The Florida Fund) are the only Fitch-rated title companies that managed to improve their RAC ratios for calendar year 2007.
In announcing its latest RAC ratios, Fitch stated that, despite the decline in the housing market, the title insurance industry as a whole remains adequately capitalized, with a strong capacity to meet policyholder and contract obligations.
When advised of CATIC's strong showing in the ratings, CATIC's President, Richard J. Patterson, noted that the Company's quick response to the market downturn in reducing expenses, along with its reliance on independent agents, permitted the Company to enhance its RAC ratio. "We do not believe that it is a coincidence that the two companies that improved their ratios are the only two companies that do business exclusively through independent agents. Unlike direct or affiliated operations, independent agents have low carrying costs to their underwriters. 2007 reminds anyone who has forgotten, of the value of independent agents." While CATIC has been forced to pare back the size of its staff and operating budget, Patterson emphasized the Company's continuing pledge to provide the best service in the industry.
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.