4 June 2018News

Assured Guaranty closes Syncora deal

Assured Guaranty has completed its previously announced reinsurance transaction with Syncora Guarantee, a wholly owned subsidiary of Syncora Holdings.

Under the terms of the transaction, Assured Guaranty Corp. (AGC) is reinsuring, generally on a 100 percent quota share basis, SGI-insured financial guaranty insurance policies. The transaction also included the commutation of a book of business previously ceded to SGI by Assured Guaranty Municipal Corp. (AGM).

The transaction totalled approximately $13 billion. As consideration for the transaction, AGC received approximately $360 million in cash plus assigned future instalment premiums estimated to total $59 million on a present value basis. Included in those amounts are GAAP expected losses to be paid of approximately $130 million for RMBS transactions.

Additionally, on behalf of SGI, AGC is providing administrative services that include claims processing, surveillance, risk management services and certain other functions for the reinsured portfolio.

"We are pleased to have brought another legacy bond insurance portfolio onto the Assured Guaranty balance sheet to generate additional future premium revenue," said Dominic Frederico, president and chief executive officer of Assured Guaranty. "Like our previous acquisitions of financial guarantors or of their insured portfolios, this transaction helps to strengthen Assured Guaranty in terms of both financial strength and profitability."

The reinsured portfolio consists predominantly of public finance and infrastructure obligations that meet AGC's new business underwriting criteria, and it includes no Puerto Rico exposure. AGC is contractually obligated to administer transactions and pay claims on SGI’s behalf, but AGC has no direct obligation to bondholders. As a result, ratings of the reinsured transactions will continue to reflect only SGI’s financial strength.




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More on this story

News
27 June 2018   Assured Guaranty has announced that S&P Global Ratings (S&P) has affirmed the AA financial strength ratings on US bond insurers Assured Guaranty Municipal (AGM), Municipal Assurance Corp. (MAC) and Assured Guaranty Corp. (AGC); UK financial guarantor Assured Guaranty (Europe) (AGE); and Bermuda insurers Assured Guaranty Re (AGRe) and Assured Guaranty Re Overseas (AGRO).
News
2 August 2018   Assured Guaranty has announced that it made a second quarter 2018 profit of $75 million, less than half the $153 million it made for the same period of 2017.
News
17 August 2018   Assured Guaranty Europe (AGE), a subsidiary of Bermuda-based Assured Guaranty, has announced that it has guaranteed principal and interest payments on approximately £90 million of bonds issued by Mount Oswald Colleges.