Brit Insurance Employs First American's U.S. Flood Catastrophe Model
—London-Based Insurer Also to License Flood Risk Score as Part of Flood Risk Solution—
June 16, 2008, AUSTIN, Texas
First American Spatial Solutions, a member of The First American Corporation (NYSE: FAF) family of companies and a leader in spatial and natural hazard risk solutions, announced today that it has licensed key components of its Advanced Flood Risk Solutions to the United Kingdom’s Brit Insurance Holdings (Brit Insurance), a member of Lloyd’s of London and an international insurer and underwriter of flood policies in the United States.
Under the licensing agreement, London-based Brit Insurance will employ First American’s Advanced Flood Risk Solutions, a suite of products designed to meet the underwriting, portfolio management, risk transfer and hazard monitoring needs of the insurance industry.
Of the products in the suite, Brit Insurance will utilize First American’s Flood Risk Score, which combines comprehensive flood hazard data, such as levee and dam inventory and conditions, historical flooding patterns and advanced hydrological science, to provide an exceptionally accurate underwriting compliance and management tool.
Brit Insurance will also utilize First American’s U.S. Flood Catastrophe Model to enable comprehensive analysis of both riverine and coastal flood risk exposure at the portfolio and policy level for locations throughout the continental United States.
“Over the last decade, the United States has experienced a significant increase in flood exposure and losses. Consequently, the insurance industry has communicated the need for an innovative solution to profitably manage flood risk,” stated Kevin Madden, vice president of business development for First American Spatial Solutions. “Brit Insurance’s forward-looking decision to manage flood risk actively through the use of our underwriting and portfolio management tools provides them with the ability not only to manage their existing portfolio but also to take advantage of opportunities to write additional business that is favorably priced and fits their risk profile.”
“Combined, First American’s Flood Risk Score and Flood Model represent an exceptional solution to comprehensive flood risk management. These tools provide a distinct competitive advantage through improved risk selection, pricing and the unparalleled ability to measure financial exposure to the flood peril,” said Matthew Wilson, chief executive officer of Brit Insurance’s Global Markets strategic business unit, a division that has grown into a multi-disciplined, diverse operation with a mix of catastrophe and non-catastrophe business in both general and niche classes.
About Brit Insurance
Brit Insurance's operations comprise three strategic business units: Brit Global Markets, Brit Reinsurance and Brit UK. All three have access to the two regulatory vehicles through which Brit Insurance underwrites. These include Brit Insurance Limited, which is a UK FSA-regulated insurance company and Lloyd's Syndicate 2987 managed by Brit Syndicates Limited. Brit Insurance has UK underwriting offices in London, Reading, Birmingham, Bristol, Glasgow, Leeds, Darlington, Ilford and Manchester. More information about the company can be found at www.britinsurance.com.
About First American
The First American Corporation (NYSE: FAF) is a FORTUNE 500® company that traces its history to 1889. With revenues of approximately $8.2 billion in 2007, it is America’s largest provider of business information. First American combines advanced analytics with its vast data resources to supply businesses and consumers with valuable information products to support the major economic events of people’s lives, such as getting a job, renting an apartment, buying a car or house, securing a mortgage and opening or buying a business. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within five primary business segments, including: Title Insurance and Services, Specialty Insurance, Information and Outsourcing Solutions, Data and Analytic Solutions, and Risk Mitigation and Business Solutions. More information about the company and an archive of its press releases can be found at www.firstam.com.