Assured Guaranty combines subsidiary portfolios
Assured Guaranty has announced the successful combination of the portfolios and operations of its four international financial guarantee insurance companies. Assured Guaranty (London), Assured Guaranty (UK) and CIFG Europe, which were previously acquired by Assured Guaranty Europe, have been merged with and into AGE, with AGE as the surviving entity.
According to the company as a result, all obligations and bonds insured by AGLN, AGUK and CIFG EU are now insured obligations of AGE and are expected to receive AGE’s financial strength ratings. AGE will continue as an active underwriter of financial guarantees.
“We are pleased to have completed this business combination. Policyholders of the combined company benefit from the security and enhanced liquidity provided by AGE, whose financial strength is rated AA by Standard and Poor’s,” said Nick Proud, chief executive officer of AGE. “In particular, this combination is significant for holders of bonds formerly guaranteed by AGLN, as they are expected to benefit from a significant ratings upgrade.”
Before being acquired by AGE, AGLN was the European operating subsidiary of MBIA Insurance Corporation. The 30 issuers whose insured bonds are expected to be affected by the AGLN upgrade have an aggregate net par insured amount of $12.5 billion. For a list of AGLN, AGUK and CIFG EU transactions that have become direct obligations of AGE due to the combination, visit the Assured Guaranty website at assuredguaranty.com/investor-information/by-company/european-subsidiaries.
“This combination of companies gives us a simplified, more easily understandable profile in the international market, while also reducing the operational cost associated with maintaining multiple companies,” said Dominic Frederico, CEO of Assured Guaranty. “Additionally, the combined company’s increased economic size and investor reach will enhance its visibility in the international markets.”