Employing the various underwriting and claims handling measures can assist sureties
in minimizing potential losses.
Recent interviews with several surety executives indicate that, among the major sureties
, premium growth will continue to be strong in 2006.
While all bonds have a financial guarantee aspect, sureties
consider any bond obligation that does not have any kind of performance component to be a "pure" financial guarantee.
Some of the regional sureties
may join forces--for example, a group of Western and Midwestern surety companies, Safeco's Peters said.
These were all being written on the same day except that the sureties
were guaranteeing delivery under one of them, and those guarantees were being used by Mahonia (J.
The frequency and severity of losses has increased in the past six months, a trend that began with smaller regional sureties
more than a year ago, said Randal Temple, senior vice president and managing director of Aon Re's Surety and Fidelity Practice Group, Philadelphia.
-- F & D, USF&G and Fidelity & Guaranty Insurance Co.