Article: Trouble ahead: with the construction slump expected to linger, surety insurers ponder their next moves.(Property/Casualty: Surety and Fidelity)(Statistical table)(Company rankings)

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* The News: Surety writers are bracing for a slowdown in construction.

* The Background: The surety line notched a 30% improvement in incurred losses in 2008 versus 2007.

* What It Means: Fewer construction projects may leave surety insurers more vulnerable to losses and surety bond defaults.

A strong 2008 performance in terms of incurred losses may not be the best indicator of what lies ahead for the $5.3 billion surety industry.

A deeper pool of bidders vying for fewer construction projects threatens to add a layer of vulnerability in an industry already known by surety writers for running on thin ...

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