Press Release|Insurance
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KBRA Affirms Ratings for CATIC Financial, Inc. and Insurance Subsidiaries

1 Jun 2026   |   New York

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KBRA affirms the insurance financial strength rating (IFSR) of BBB+ for Connecticut Attorneys Title Insurance Company (CATIC), the lead operating subsidiary of CATIC Financial, Inc. (CATIC Financial), the IFSR of BB+ for CATIC Title Insurance Company (CATIC Title) and the BB+ issuer rating for CATIC Financial. The Outlook for all ratings is Stable. CATIC Financial and its subsidiaries provide title insurance and related services on residential and commercial properties in New England, with a growing presence in the eastern half of the U.S. and operate exclusively through a network of independent and attorney-agents.

The rating for Connecticut Attorneys Title Insurance Company (CATIC) reflects its continued strong presence in New England title insurance markets, and differentiated attorney-agent distribution model which supports continued premium growth and customer retention. CATIC continues to maintain a leading market presence in Connecticut and Vermont and has gained market share nationwide, with direct written premium increasing approximately 20.4% year-over-year in 2025 and nationwide market share increasing for a tenth consecutive year. Premium growth was driven by continued expansion in newer markets including Florida, Georgia, North Carolina, and Texas, while CATIC also maintained a strong position in its core New England markets. Additionally, CATIC protects its balance sheet with a strong, comprehensive reinsurance program with low retentions and a conservatively positioned investment portfolio, largely comprised of cash and liquid investment grade fixed income securities. CATIC’s experienced management team has an extensive title insurance and legal background and is well aligned with the company’s business strategy to maintain the involvement of real estate attorneys and independent agents in real estate closing transactions.

Tempering these strengths are CATIC’s elevated expense ratio, recent net operating losses, and potential execution risk regarding its geographic expansion efforts. CATIC has reported operating losses in each of the last three years, although losses narrowed in 2025 as expense reduction initiatives were implemented. Policyholder surplus improved in 2025, supported by an $8 million capital contribution from parent company CATIC Financial, Inc (CATIC Financial) but organic surplus growth remains constrained by the company’s still-negative operating results. KBRA expects CATIC to maintain adequate capitalization and return to profitability in line with management projections.

The rating for CATIC Title reflects continued financial and operational support from CATIC Financial, improved 2025 operating results, and positive net income for the year. Policyholder surplus improved to approximately $4.2 million at year-end 2025. Tempering these strengths are CATIC Title’s limited capital base, unfavorable net premium leverage, geographic concentration, low market share in its operating states, and consistently weak underlying operating profitability.

Factors that could positively impact the rating include sustained improvement in the expense ratio and operating profitability promoting organic surplus growth or continued growth in fee-based earnings. Factors that could negatively impact the rating include a trend in earnings deterioration causing surplus decline, material investment losses, departure of key members of the management team without suitable replacement, material negative change in reserves or loss of available reinsurance, a change in capital support from CATIC Financial, or a sustained deterioration in holding company financial leverage, or inability to service financial obligations.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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