American Overseas Reinsurance commutes part of its reinsurance portfolio
American Overseas Reinsurance Company (AORC), the operating subsidiary of American Overseas Group (AOG), has entered a commutation, reassumption and release agreement with Assured Guaranty Municipal Corporation (AGM).
The arrangement commuted a portion of financial guaranty reinsurance business AORC had assumed from AGM, with an aggregate statutory par value outstanding of $1.065 billion as of May 31. This brought the total statutory par value outstanding down to $373 million, as of June 1 2019, the date of the commutation.
The commutation included all of AORC's remaining par outstanding relating to Puerto Rico credits, and had no material impact to AOG’s net GAAP income.