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 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.
Harco National, given its A.M. Best A- rating and broad licensing, will originate and underwrite most of the traditional assumed reinsurance business. Some of this business may be retroceded to IAT Reinsurance Company Ltd under circumstances where the latter's capital strength can relieve premium growth pressure.
Business can also be written on IAT Reinsurance Company Ltd paper where clients may desire to have a more highly capitalized reinsurer with an A.M. Best rating of A-.
Under special circumstances, we also have access to A.M. Best A rated paper.
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 amongst 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.