Press Release - MARCH 20, 2020

AM Best Affirms Credit Ratings of Connecticut Attorneys Title Insurance Company; Revises Outlooks to Negative

 Kourtnie Beckwith
Financial Analyst
+1 908 439 2200, ext. 5124

Fred Eslami
Associate Director
+1 908 439 2200, ext. 5406

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644


OLDWICK - MARCH 20, 2020
AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating B++ (Good) and the Long-Term Issuer Credit Rating “bbb” of Connecticut Attorneys Title Insurance Company (CATIC) (South Burlington, VT).

These Credit Ratings (ratings) reflect CATIC’s balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The revised outlooks are driven by the company’s five-year average operating returns and AM Best’s expectation that future returns may be constrained by the recent macroeconomic environment, which could shift CATIC’s operating performance assessment to “marginal” from “adequate”, depending on CATIC’s year-end 2020 operating results. AM Best believes headwinds caused by weaker than expected macroeconomic conditions potentially could slow growth in the latter part of 2020, which could be problematic for CATIC if its business activity diminishes. On a positive note, low interest rates have prompted a steep acceleration in refinancing activity during the first quarter of 2020, which could help offset the effects of a recession and economic slowdown.

CATIC’s balance sheet is considered strong, and supported by its level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best is somewhat concerned with CATIC’s rapid expansion over the past five years and management’s ability to effectively control this growth as it expands into new states and appoints new agents. The company has minimal exposure to common equities and therefore limited exposure to the recent downturn in the equities markets. CATIC benefits from its specialty niche business orientation but is considered to have a limited business profile due to its heavy product and geographic concentration. Lastly, AM Best views CATIC’s ERM as appropriate as management has identified its key risks, established risk tolerances and is actively pursuing ways to minimize risk and to formalize the underlying risk management components.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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AMB# Company Name
010038 Connecticut Attorneys Title Insurance Co