On September 18^th, Steve Coward, President of Berkley Surety Group based in Florham Park, NJ spoke to our local chapter of the CFMA at the Muddy Rudder restaurant in Yarmouth, Maine. The large group enjoyed a wonderful meal and Steve Coward, in a relaxed and friendly manner spoke to us about the outlook for the surety industry in Maine and across the nation.

With several handouts available detailing the performance of the industry over the past decade we learned that the Surety Industry has come through a rough period of record high losses, but trending better over the past couple of years with loss ratios returning in 2006 to levels that allow for profitable growth. Direct Written Premium has steadily climbed over the past decade to the point of doubling the 1995 numbers. Steve also spoke about the consolidation that is occurring across the board in the Surety industry. Most notably the Travelers acquisition of St. Paul wedded the number one ranked surety to the number six ranked based on the 1999 report and of the 15 top sureties in 1999 only 8 are still active in 2007 as some withdrew, others merged and a few failed over this time period.

Steve Coward has added another “C” to the old adage of character, capacity and capital by including “Change” to the now four C’s. Change can effect the results that a contractor experiences. Whenever a contractor makes a change in the work they perform, the people who do the work, the size of the projects or any other major factor affecting the organization it is time to take a serious look and make certain that everything is in order. Change can take the form of influences from outside forces for example the government, material costs or interest rates. Change can be managed and the anticipation of change will limit the adverse affects of change.

Mr. Coward concluded the evening by answering questions and he took a great deal of time afterward to renew old friendships and share a story or two. We were pleased and flattered that Steve took time from his otherwise busy schedule to come back to Maine, where it all began and spend the evening with us.

Respectfully submitted by Brent Cross, CPCU