Demotech, Inc. has advised that five title underwriters have formed a reinsurance alliance with Lloyd's of London.
According to a release, the American Title Reinsurance Alliance was formed to ensure that the participating companies have a secure source of reinsurance for transactions. The participating Title underwriters are Agents National Title Insurance Company, Columbia, Missouri; Alliant National Title Insurance Company, Longmont, Colorado; Attorneys' Title Guaranty Fund of Colorado, Denver, Colorado; Connecticut Attorneys Title Insurance Company, Rocky Hill, Connecticut; and Security Title Guarantee Corp. of Baltimore, Baltimore, Maryland.
The Beazley Syndicate is the lead underwriter at Lloyd's. Three other Lloyd's Syndicates are participating in the coverage. Rich Patterson, President of Connecticut Attorneys Title Insurance Company, said, "We are pleased to have entered into this relationship with Lloyd's. 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, arranged the program with Lloyd's, the Company reported. According to Tomkins, "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."
Demotech President Joseph Petrelli, whose company has been reviewing and rating Title underwriters since 1992, agrees that the emergence of ATRA will be a benefit to regional insurers. He said, "Lloyd's of London has a legendary track record of backing up its promises. Members of ATRA will likely pass our reinsurance review with flying colors."
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