Blog

LDWICK, N.J.–(Business Wire)–In this A.M.BestTV episode, A.M. Best’s Senior Financial Analyst Robert Valenta and Senior Research Analyst David Blades review a new report that examines the growth of the U.S. surety insurance segment and the forces shaping it. Click on http://www.ambest.com/v.asp?v=surety218 to view the entire program. Bolstered by strong construction activity, surety underwriters continue to benefit from consistent premium...

In the State of the Union address, President Donald Trump called for $1.5 trillion in infrastructure spending from a combination of federal, state, and local government sources working along with the private sector. The funds are much-needed: America’s crumbling roads and threadbare broadband coverage have been well documented—as has the impact of this lack of investment on economic development...

Final payment being withheld until completion State officials are withholding millions of dollars in payment from the contractor of the new Broughton Hospital until the project is completed. The amount of the final payment will be around $6 million, said Mark Benton, North Carolina deputy secretary of health services for the Department of Health and Human Services. The state...

The Louisiana First Circuit recently held that a Private Works Act payment bond surety cannot raise a pay-if-paid provision in its principal’s contract as a defense to a claim against the bond. Bear Industries, Inc. v. Hanover Insurance Co. involved the construction of a Wal-Mart Supercenter in New Roads, Louisiana. The plaintiff, Bear Industries, Inc. (Bear), supplied materials for...

Trade credit insurers are expected to pay some £31 million to help firms in the supply chain recover from the collapse of UK construction company Carillion, according to the Association of British Insurers (ABI). And the collapse could also trigger legal action with potential claims for negligence and wrongful trading faced by Carillion’s directors from the liquidators, according to...

Summary: This Expert Insight looks at the case of Ziggurat (Claremont Place) v HCC International Insurance Company PLC and considers the implications of the case for the surety industry generally, particularly in the context of construction insolvency. I read the decision in Ziggurat with some incredulity. Overall I’d agree with the conclusion of Karen Spencer of Gateley that...

The potential boon to the US construction industry from the Trump administration’s infrastructure rebuilding plans poses benefits and risks for the surety sector, according to AM Best. The future of the US surety market “should remain bright” if plans to rebuild US bridges, highways and other infrastructure come to pass over the next year, the ratings agency said yesterday...

OLDWICK, N.J.–(BUSINESS WIRE)–The steady economic recovery of the last few years and the abundance of capital competing for construction business has led to a distinct buyer’s market in the U.S. surety sector. However, according to a new A.M. Best report, it remains to be seen whether the quality of the business written by some of the newer market entrants...

The states of Virginia and Oregon adopted new legislation in 2017 that introduced surety bond requirements for contractors. In Virginia, the new bond legislation reduced financial burdens on contractors which were otherwise required to demonstrate a certain amount of net worth. In Oregon, a surety bond requirement was introduced for all contractors and subcontractors working on public works projects...

U.S. Surety reinsurance risk adjusted rate reductions have continued into the start of 2018 with the market still characterised by abundant capacity, however, rate reductions were lower than those of previous years due to some price increases seen in loss affected programmes, according to Willis Re. Some loss affected treaties renewed with no real sign of genuine rate increases,...