MAC Offers Bond Insurance OverTMC Electronic Trading Platform
Real-Time Quotes and Execution Available for Over 9,500 Approved Municipal
HAMILTON, Bermuda -- December 9, 2013
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 ofTMC Bonds LLC (TMC). In providing this service, MAC joins its
affiliate Assured Guaranty Municipal Corp. (AGM), which introduced secondary
market municipal bond insurance toTMC in 2011.
“We are pleased to offerTMC 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
ofmuni 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,registeredTMC users mayobtain 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 ofTMC's electronic trading platform can
obtain MAC orAGM bond insurance quotes on approved issues by entering
theCUSIP 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 andAGM insuring par amounts of $100,000 or more.”
MAC is owned jointly by its affiliatesAGM 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
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 atAssuredGuaranty.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 onMAC’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/orAGC 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.
Assured Guaranty Ltd.
Robert Tucker, 212-339-0861
Managing Director, Investor Relations and Corporate Communications
Ashweeta Durani, 212-408-6042
Vice President, Corporate Communications
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