Press Release |
Poindexter Surety Group Completes Capitalization of Janus Assurance Re
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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