NEW YORK--(BUSINESS WIRE)--Build America Mutual today announced that S&P Global Ratings completed its annual review of the company and affirmed BAM’s AA rating and Stable outlook, the strongest rating S&P assigns to any active insurer.
In a Research Update published today, S&P said the action reflects BAM’s “strong market acceptance in the U.S. municipal sector, prudent underwriting discipline, and proven year-over-year growth in terms of par insured, premiums written, and risk-based pricing.” In addition, S&P recognized that BAM’s structure as a mutual insurer that is owned by the public-sector issuers whose bonds it guarantees is important because it means that “BAM and its owners are focused on a stable, low-cost source of financial guarantee support, rather than a high return on investment.”
“S&P’s analysis is an important independent confirmation of BAM’s exceptional financial strength,” said BAM Chief Executive Officer Seán McCarthy. “That is anchored in our low-risk, low-volatility insured portfolio that only includes bonds sold by U.S. municipal issuers who fund essential public services, and supported by the substantial financial resources that we have grown organically and through innovative approaches like our reinsurance agreement with Fidus Re earlier this year.”
About Build America Mutual
BAM is a mutual bond insurance company operated for the benefit of its members – the cities, states and other municipal entities that use BAM’s financial guaranty to lower their cost of borrowing. BAM is sponsored by the National League of Cities, and was launched in 2012 with initial capital provided by subsidiaries of White Mountains Insurance Group, Ltd. (NYSE:WTM)
Through June 22, 2018, BAM has insured more than $49 billion of municipal securities for more than 2,900 municipal issuers nationwide. Learn more at http://buildamerica.com/mission/