Surety executives were certain 2014 would be fraught with financial problems for contractors which obviously impacts surety results. They were, and are, particularly concerned about companies that showed prior signs of stress and then started to ramp up during the year. While it has not been a wholesale slaughter, the industry has experienced some damage locally and the pattern is similar countrywide. However, the loss ratio results for the industry are still running in the 20% range which is totally acceptable.
Please read the below article written by Lynne W. Cook , Senior Vice President of Surety here at EC&S for some observations and suggestions that may help you to make wise business decisions with regard to your surety program in 2015.
Happy New Year everyone!