While ATGF is smaller than some other underwriters, there is much more behind an ATGF policy than meets the eye. ATGF retains only a maximum of $250,000 of risk on any one policy. Additional risk is reinsured with Lloyds of London, the oldest and most respected insurance organization in the world. This reinsurance is backed by several Lloyds syndicates which individually have greater financial resources than the four biggest U.S. title underwriters combined. ATGF maintains insurance coverage for fidelity and defalcation losses through Lloyds as well.
The leading rating agency for title insurers, Demotech, states on its website that “(s)mall, well-managed Title underwriters often can be more financially stable than larger, highly leveraged underwriters.” ATGF is a perfect example of how this is true. ATGF’s industry-leading software systems provide unprecedented controls which eliminate risk and errors. These controls, ATFG’s 50 years of issuing and honoring policies, and the financial backing of Lloyd’s through insurance and reinsurance, make an ATGF policy a choice of unsurpassed security.
In 2012 ATGF joined with four other title underwriters, Agents National Title Insurance Company, Alliant National Title Insurance Company, CATIC®, and Security Title Guarantee Corporation of Baltimore to form the American Title Reinsurance Alliance (ATRA). ATRA provides all the participants with reinsurance underwritten by Lloyd’s of London. This program provides ATGF with the backing of Lloyd’s on all transactions in excess of $250,000. Lloyd’s of London is AM Best Rated A XV (Excellent), S&P rated A+ (Strong), and Fitch rated A+ (Strong). Five Lloyd's Syndicates participate in the coverage. All have an AM Best Rating of A or better. The Title Reinsurance Alliance program enhances ATGF’s ability to insure large transactions while minimizing exposure to loss.
ATGF’s financial stability is further ensured with $3 million of coverage through a fidelity bond also obtained from Lloyd’s of London. This policy includes coverage for ATGF not only in the event of a theft by an employee, but also for a defalcation by any of its agents.
Attorneys Title Guaranty Fund (ATGF) is a full service title insurance company with more than 50 years of history as an underwriter in Colorado and Utah. Our professionals have been providing quality title insurance products, services and support since 1960. Additionally, ATGF currently acts as a Managing Title Agent for attorneys and title agents in Minnesota and North Dakota.
Since 2010, despite the economic downturn, ATGF has been assigned the Financial Stability Rating® (FSR) of A, Exceptional from Demotech, Inc. The significance of this FSR is illustrated by its definition from Demotech:
“Regardless of the severity of a general economic downturn or deterioration in the insurance cycle, insurers earning a Financial Stability Rating® of A possess Exceptional financial stability related to maintaining surplus as regards policyholders at an acceptable level.”
Demotech, Inc. is an independent financial analysis firm specializing in evaluating the financial stability of specialty insurers. Demotech’s Financial Stability Analysis Model involves a tactile review as well as computation and analysis of financial ratios to determine the current and future financial stability of the title underwriter.
ATGF’s automated title insurance distribution and underwriting platform known as EPIC (Electronic Policy Issuance Capability) provides ATGF with more real-time knowledge and control over agent activities than any other title insurer in the United States. The capabilities of the EPIC system include functionality which:
- Protects consumers from illegal issuance of insurance products
- Is easily adjustable for compliance with future lender or regulatory parameters
- Provides real-time Agent/Policy control and
- Streamlines claims handling and increases back-office efficiency
EPIC also provides ATGF with controls that ensure agent compliance with state and federal laws and therefore protects lenders from CFPB liability.
ATGF recently reported an annual profit for 2013 despite a drastically declining refinance market. The company’s assets substantially exceed the amounts required of it by regulators in the jurisdictions where it operates. In 2013, ATGF had over $15 million in gross revenues. Over the last 24 months, ATGF has further strengthened its position by growing its policyholder surplus by 33% to $1.5m. ATGF’s 2013 ratio of premium written to policyholder surplus is less than 7:1 which is superior to the ratios of many larger underwriters, including Alliant National Title Insurance (11:1), Westcor Land Title Insurance (15:1) and Title Resources Guaranty (9:1).
ATGF is domiciled in the state of Colorado and regulated there by the Colorado Division of Insurance in addition to its activities being regulated in the other states where it conducts business (Utah, Minnesota and North Dakota). ATGF recently underwent a regular market conduct by the Colorado Division of Insurance. ATGF was found to have achieved superior compliance performance to that of any other title underwriter recently subjected to a Colorado market conduct exam.
For more information, please contact:
Eric Morgan, President