Assured Guaranty to reinsure $13 billion of CIFG Assurance public finance business

By Sheri Kasprzak

New York, Oct. 24 - Assured Guaranty Ltd. said Friday its subsidiary, Assured Guaranty Corp., will reinsure $13 billion of net par insured from CIFG Assurance North America, Inc.'s public finance business line.

In the deal, Assured will get unearned premium reserves of $88 million, according to a statement released by Assured Friday.

"We are pleased to have the opportunity to provide CIFG NA's policyholders with the safety and security of Assured's financial strength," said Dominic Frederico, Assured Guaranty Ltd.'s chief executive officer, in a news release.

"Public finance investors will benefit from an upgrade of the rating on their investment if they agree to the novation of their current policy with CIFG NA, and we look forward to helping them make the novation process as quick and efficient as possible."

The transaction, the statement said, is expected to close in the fourth quarter.

"This agreement is another important step toward ensuring CIFG NA honors its obligations to its policyholders," said John Pizzarelli, CIFG's CEO, in a statement.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.