The surety bond industry has gone through some major changes in the past couple years. Bonding companies had consecutive years of substantial losses. Bonds are now harder to qualify for and rates for some classes of business have skyrocketed. Sureties have returned to more traditional underwriting methods which are proving to work just as they always have.
The CNA AM best rating & outlook changed from negative to stable. The surety and it’s subsidiaries remain at an A rating.
What does all of this mean to someone looking to obtain a bond? It means that you can expect to see the same stringent standards for suretyship underwriting for quite some time. The market as a whole grew too hungry for business and the losses incurred will be a lesson not soon forgotten.