RALEIGH, N.C. - FMI Corporation has released the results of its first annual survey of surety providers in a report titled, "Surety Firms Weigh in on Construction Markets and Contractors: FMI Surety Providers Survey." The brief survey, conducted by FMI's Investment Banking Group, examined respondents' views regarding current market conditions, risk management practices of construction firms, and issues surrounding the transfer of ownership for construction firms. Taken together, the respondents to FMI's survey represent approximately 60 percent of the total underwriting capacity for the overall surety industry.

Tim Sznewajs, a principal with FMI's InvestmentBanking Group, and co-author of the survey, noted, "As providers of essential credit instruments for the construction industry, surety providers possess a unique perspective on the health of the industry and its key players. We believe it is critical to understand how changes in the market for risk management products will impact construction firms."

Surety providers are no strangers to bad times. In the early 2000s, the industry experienced largefinancial losses. Since that time, however, the industry has taken a "back to basics" approach, tightening its belt along with the bonding standards for contractors. Consequently, the surety industry has enjoyed a period of above average profitability and remains relatively strong even in today's tepid construction market.......read more