Outlook Negative for 2 Attorney-Linked Insurers

The insurer financial strength ratings of Connecticut Attorneys Title Insurance Co. and Attorneys' Title Insurance Fund Inc. have been affirmed at A-minus by Fitch Ratings, but the rating outlooks for both have been revised from stable to negative. CATIC is an attorney-owned title insurance company, while ATIF, the third-largest title insurer in Florida, is owned by a business trust that is in turn owned by attorneys who act as agents for the company, Fitch said. The rating agency said the outlook revision for CATIC is "consistent" with its view of the title insurance industry overall and reflects the company's "relatively lower tolerance to absorb operating losses in the current environment because it is a modestly-sized underwriter in a concentrated geographic area" with limited access to outside capital funds. In the case of ATIF, the revision reflects the company's "poor operating performance and slower response to cutting operating expenses relative to peers during this current difficult environment of reduced mortgage originations and greater title insurance claims." CATIC can be found online at http://www.caticaccess.com, and ATIF can be found at http://www.thefund.com.