Additionally, Pobieglo says a number of new sureties
have entered Alaska, creating a "contractor's market.
Employing the various underwriting and claims handling measures can assist sureties
in minimizing potential losses.
From a financial reporting standpoint these contractors are held to a higher standard of financial accounting by their sureties
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.
Reinsurers are now more focused on exposure than experience rating, and that change will impact the middle-market sureties
This is an old "new" trap for creditors because individual suretyship was not unusual in the past, before corporate sureties
developed near the turn of the century.
In 2007, SBA established a more flexible pricing structure, allowing Preferred Surety Bond Sureties
to charge current state rates rather than being locked into rates that were established several years ago.
Further, Pesce is chairman of the National Association of Independent Sureties
and a frequent speaker at construction industry conferences.
We hear anecdotally from our members that sureties
require periodic financial statements, whether every 6 months or every quarter, and small contractors especially are seeing more losses.
We probably went from 50 sureties
to 300," said Bill Cheatham, president of Zurich North America Surety.
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.