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.

American Overseas Reinsurance Company, American Overseas Group

Bermuda Re