Allied Trust Insurance Company (ATI) has initial capital and surplus five times that required by the Texas Department of Insurance. Being an admitted and domiciled Texas carrier, ATI has $350,000 per risk coverage provided by the Texas Guaranty Association. That safety net is not expected to be needed as Allied Trust carries an “A” financial rating by Demotech. We take our financial stability very seriously to ensure that ATIC can meet its financial obligations to pay our claims.
Reinsurance is a critical component of Allied Trust’s financial stability. ATI is represented by the two largest reinsurance brokers in the world with Aon Benfield and Guy Carpenter. Our reinsurance program strategically spreads exposure among approximately fifty highly-rated, highly-capitalized reinsurers around the globe in the Bermuda, London, Europe, Asian and domestic markets that are rated “A-“ or better by A.M. Best. Allied Trust has purchased reinsurance well beyond accepted minimum standards in order to mitigate against both severe and frequent losses to protect ATIC’s capital and surplus.
Catastrophe reinsurance safeguards the Company from incurring massive losses sustained from catastrophic events such as hurricanes, tornados, hail and other severe convective storms. ATI carries coverage sufficient to sustain multiple storms of at least 110+ year magnitude. Retention is at only $2,450,000 net to ATI for its largest storm, $1,750,000 for its second largest and only $700,000 for additional events. Finally, the Company also carries excess of loss coverage to cover any single loss over $350,000.
This diversified, conservative approach ensures policyholders are always well protected.