Poindexter Surety Group Completes Capitalization of Janus Assurance Re

Tue Jan 13, 2009 2:39pm EST

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HAMILTON, Bermuda--(Business Wire)--
The Poindexter Surety Group has completed capitalization of its offshore captive
Janus Assurance Re. "I am on cloud nine," says Carlyle Poindexter, President and
CEO of Poindexter Surety. "Not only have we managed to do this in a domicile
that is very hospitable to self-insurance vehicles, but we have also completed
the project with more cash than anticipated. All of that is going into loss
reserve. It just makes us stronger." 

Originally planned as a reinsurance facility for Poindexter`s surety bail bond
program, Janus Assurance Re`s bylaws were recently modified to authorize direct
writing of standard surety and fidelity risks. The expansion, a result of
frustration with carrier`s overly tight underwriting of surety products, will
provide the Poindexter Surety Group with an alternative to large, primary surety
markets. "I am just really tired of bonding companies that don`t want to write
bonds. Supposedly, one of the "three Cs" is collateral. Half of the big western
hemisphere players will tell you flatly, "we are not a collateral market." The
other half that will look at collateral accept only letters of credit. They
won`t even take cash! That really makes no sense. I can understand writing
conservatively but these sureties are leaving a lot of money on the table
unnecessarily, and there are people that need bonds that are being ignored by
the mainstream sureties." 

Given the `less than stellar` loss ratios reported by surety/fidelity carriers
over the past ten years, the "no collateral/conservative underwriting" model may
not be the answer. "I am a bondsman,` says Poindexter. "I will bond that the
Atlantic Ocean is going to catch on fire if you pay me my premium and give me
enough collateral. It`s a `no-brainer`." 

Critics opine that looser underwriting standards will inevitably create
increased adjustment expenses and that efforts to liquidate collateral can also
be very costly. Poindexter responds, "That`s what a premium deviation is for.
The higher risk principals have to pay a little more. As long as your producers
are forthright with the consumer about the reasons for higher premium, the
consumer is going to be `ok` with that. Its just like paying more premium on
your auto coverage because you have a half dozen traffic tickets on your
record." 

Janus Assurance Re may eventually be a valuable friend to principals considered
`less than prime`, affording them the opportunity to obtain bonds based on their
ability to indemnify rather than solely on their credit score. "We are a bonding
company. We want to write bonds," says Poindexter. "In my opinion indemnity
should be the determining factor. Collateral should not merely be an enhancement
to an already underwritable bond." 

Surety One, a member of the Poindexter Surety Group, is the exclusive
representative of Janus Assurance Re. For further information you may call
919-859-5294 or e-mail Underwriting@SuretyOne.org. 



The Poindexter Surety Group
Carlyle Poindexter, 919-859-5294
Underwriting@SuretyOne.org



Copyright Business Wire 2009

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