Frequently Asked Questions
What is IAT Reinsurance's Underwriting model?
IAT Reinsurance's genesis is rooted in the dual notions that 1.) Reinsurers should write premium when proper risk pricing is evident and 2.) Underwriters that should be incented to restrain production when such evidence is absent. Underwriters and key staff in the business have direct and specific long-term exposure to the outcome of their risk decisions. This is the keystone of IAT Reinsurance's business strategy; regardless of the program, premium is not written unless the underwriter has personal financial risk attached to that decision.
Where is the traditional reinsurance business written?
Harco National, given its broad licensing, will originate and underwrite most of the traditional assumed reinsurance business. Harco is a participant in a pooling arrangement between seven affiliated companies (the Pool). The Pool is rated A- by A.M. Best and has an A.M. Best Financial Size Category of XI.
Why keep IAT private?
IAT Reinsurance's foundational business mandate is that of capital preservation. Protection of capital and surplus at the expense of growth in premium, market share and earnings are paramount. The luxury of adopting this policy is directly derived from its private company status, a commensurate disinterest in courting capital market access and its shareholders' indifference to public and industry visibility for its own sake. IAT Reinsurance believes further that this business policy will engender among its clients and prospective clients a long-term and positive image of sustained capacity and financial strength. While its market pricing requirements could make IAT Reinsurance less competitive in a soft market, many clients will want (and some will need) to do business with firms whose capacity is certain in difficult markets where capital available for underwriting may otherwise contract.