Kroll Bond Rating Agency (KBRA) Upgrades Rating for CATIC to A- with Stable Outlook

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Jul 27, 2022, 13:01 ET

ROCKY HILL, Conn., July 27, 2022 /PRNewswire/ -- CATIC has received an upgraded rating of "A-" from the Kroll Bond Rating Agency (KBRA). According to KBRA, an "A-" rating indicates the insurer's financial condition is sound and the entity is likely to meet its policyholder obligations under difficult economic, financial and business conditions. The outlook is stable. KBRA also upgraded the rating for CATIC Financial, Inc. and affirmed the rating on CATIC Title Insurance Company. Both outlooks are stable.

CATIC's rating upgrade was influenced by the ongoing execution of its strategic plans, which has resulted in favorable premium trends and strong growth in earnings and surplus in recent years. This rating also reflects CATIC's dominant market position in New England, particularly its leading presence in Connecticut, Massachusetts, and Vermont. CATIC, along with its sister company, CATIC Title Insurance Company, has had a significant growth in direct premiums over the past seven years. This has resulted in The CATIC Family of Companies becoming the 5^th largest independent title insurance provider in the U.S., based on direct premiums written.

In response to CATIC's new rating, James M. Czapiga, Esq., President and CEO of The CATIC Family of Companies, stated, "This rating upgrade to an A- is the result of all the hard work and tireless efforts of our associates. The last few years have been challenging and we have met those challenges, head on. I am grateful to work with such outstanding and dedicated individuals each and every day. Our growth, geographic expansion, operating results, and strong balance sheet have gotten us to this point. We are pleased with this rating increase as it helps validate that our vision for the CATIC Family of Companies remains in focus."

According to KBRA, CATIC's investment portfolio is generally conservative with the majority of holdings in bonds with an average credit quality of "AA." The rating agency also noted that CATIC's management team has an extensive legal background and is aligned with the company's core business strategy to maintain the involvement of real estate attorneys and independent agents in every real estate closing transaction.

Based on this new upgraded rating and stable outlook, KBRA expects adequate surplus growth at CATIC over the next few years driven by projected profitability.

ABOUT CATIC:

CATIC, along with its sister company CATIC Title Insurance Company, is currently licensed in every state east of the Mississippi and in Texas and is currently doing business through an independent agent network in 15 states. The Company is an underwriting member of the American Land Title Association (ALTA) and the North American Bar-Related^® Title Insurers. For more information about the Company, or to become a CATIC agent, please visit us at www.CATIC.com, or follow us on LinkedIn, Facebook, and Instagram.

SOURCE CATIC