ACMAT Corporation
Climate Impact & Sustainability Data (2015)
Reporting Period: 2015
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Difficulty growing premium due to slow growth in the construction industry and fierce competition.
- Risk of defaulting contractors due to weakened contractors during economic downturn.
- Risk of bank defaults on letters of credit used to partially securitize high-risk surety bonds.
- Risk of defaults in payment of interest and/or principal by municipalities or states on debt securities.
- Exposure to inflated and unreasonable plaintiff judgments pertaining to surety business and casualty business runoff.
- Asbestos-related third-party bodily injury claims (most dismissed or settled for nominal payments).
Mitigation Strategies
- Conservative and disciplined underwriting standards.
- Reliance on bank letters of credit to partially securitize high-risk associated with writing surety bonds.
- Unique underwriting methods and 60+ years of experience in the construction industry.
- Charging more than standard markets and securitizing a portion of risk to hedge bets.