Inquiries and applications submitted through SuretyPH are endorsed to the relevant duly licensed insurance company. Approval is subject to verification of submitted information, eligibility requirements, and the underwriting guidelines of that insurance company.

Corporate

Underwriting Basics

How surety underwriters evaluate a submission: the classic three Cs and what they look at.

Published Aug 1, 2026

The three Cs

Character

Management integrity, payment history, litigation record, and how the applicant handled past difficulties. Surety is relationship credit; reputation is underwritten.

Capacity

Can the principal actually perform? Underwriters look at technical qualification, licences, equipment, personnel, and current backlog against the new obligation.

Capital

Working capital, net worth, leverage, and liquidity determine how much exposure the balance sheet supports.

The obligation itself

Bond type and what it actually guarantees.
Bond amount relative to the applicant's size.
Validity period and how long exposure runs.
Who the obligee is and how it administers claims.

Pricing

The premium reflects the insurer's approved rates, the bond amount, the validity period, and its assessment of risk. Documentary stamp tax and other statutory charges are added. Pricing is set by the insurer, not by the intermediary.

Possible outcomes

Approval on the requested terms.
Approval subject to collateral or a reduced amount.
A request for additional requirements.
Decline.

What accelerates a decision

Complete documents, consistent figures, a clear explanation of the obligation, and realistic sizing. Underwriting is a judgement exercise; give the underwriter enough to reach a comfortable one.

Every decision, including pricing and collateral, rests with the authorized issuing insurance company.