Market Capitalization

by Joshua Malone

Market capitalization is one of the go-to statistics for surety underwriters when evaluating a public corporation’s financial information. The market capitalization (commonly referred to as “market cap” for short) represents the value of the corporation’s outstanding shares and thus basically the value of the company. If an investor wanted to try and purchase a corporation […]

Business Entities and Limited Liability

by Joshua Malone

Underwriters must consider a principal’s structure of business when determining whether to approve the principal’s bonds. Businesses have different types of ownership, and thus underwriters must determine which owner, owners, or entities need to indemnify the surety. Depending on the structure of business, these indemnitors may have limited or unlimited liability. A single owner of […]

Financial Statements

by Joshua Malone

For litigation bonds, our underwriters may ask to see a principal’s financial statement as part of the application process. This is especially true if the principal is a business, organization, or corporation. Acceptable financial statements prepared by a Certified Public Accountant (CPA) include the following elements: a balance sheet, income statement, statement of retained earnings, […]