HAMILTON, Bermuda--(BUSINESS WIRE)--Municipal Assurance Corp. (MAC), a bond insurer within the Assured Guaranty group of companies (Assured Guaranty), today began providing real-time bond insurance quotes, as well as the ability to request the purchase of MAC insurance, on secondary market trades placed through the electronic trading platform of TMC Bonds LLC (TMC). In providing this service, MAC joins its affiliate Assured Guaranty Municipal Corp. (AGM), which introduced secondary market municipal bond insurance to TMC in 2011.
“We are pleased to offer TMC users the ability to attach MAC bond insurance to eligible trades with just a mouse-click,” said William B. O’Keefe, Senior Managing Director for Municipal Marketing. “While MAC only began writing direct bond insurance earlier this year, it has the characteristics of a well-established financial guaranty company, with built-in earnings and all the experience and human capital of Assured Guaranty, the leading provider of muni bond insurance.”
MAC was launched in July 2013 to guarantee only U.S. municipal bonds in the most well-understood bond sectors, such as general obligations, tax-backed issues and public electric, water, sewer and transportation revenue bonds. At September 30, 2013, MAC had $1.5 billion in claims-paying resources and a $108 billion direct and assumed insured portfolio, which generates predictable revenue from its $688 million of unearned premiums.
Rated AA+ (stable outlook) by Kroll Bond Rating Agency and AA- (stable outlook) by Standard & Poor’s Ratings Services, MAC may insure primary offerings in 42 states and the District of Columbia under its current licenses. Through TMC, registered TMC users may obtain secondary market MAC insurance on approved municipal bonds issued in all 50 states.
MAC currently has secondary market insurance capacity available for over 9,500 municipal credits. Registered users of TMC's electronic trading platform can obtain MAC or AGM bond insurance quotes on approved issues by entering the CUSIP number of bonds they want to insure.
“TMC’s broad market reach makes MAC insurance highly accessible,” said Mr. O’Keefe. “It is particularly efficient for executing smaller size trades, with MAC and AGM insuring par amounts of $100,000 or more.”
MAC is owned jointly by its affiliates AGM and Assured Guaranty Corp. (AGC), the only two companies that have continued to write municipal bond insurance before, during and since the global financial crisis of 2008. MAC shares their management, underwriting discipline, experience in surveillance and remediation, and established accounting, legal and information technology infrastructure.
Assured Guaranty Ltd., the ultimate holding company for the Assured Guaranty group, including MAC, AGM and AGC, is a publicly traded Bermuda-based holding company. Its operating subsidiaries provide credit enhancement products to the U.S. and international public finance, infrastructure and structured finance markets. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com and MACmunibonds.com.
Municipal Assurance Corp. License Status: MAC is not licensed and authorized to transact insurance business in Alabama, California, New Mexico, North Carolina, Oregon, Washington and Wyoming, and the insurance products and services described in this communication may not be available to all potential customers or investors. This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any insurance product or service in any jurisdiction where MAC is not licensed and authorized to write insurance.
Cautionary Statement Regarding Forward-Looking Statements:
Any forward-looking statements made in this press release reflect the current views of Assured Guaranty Ltd. (together with its subsidiaries, Assured Guaranty) with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. For example, MAC may not be able to execute its strategy of increasing demand for municipal bond insurance and expanding its position in the industry; losses on MAC’s insured and/or investment portfolio may be greater than expected; MAC may not be able to obtain the additional licenses it seeks; and the rating agencies may take rating action on the financial strength ratings of any of MAC, AGM and/or AGC at any time. Other risk factors are identified in Assured Guaranty's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of December 9, 2013, and Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.