Bermuda-domiciled holding company Syncora Holdings has announced that its New York financial guarantee subsidiary Syncora Guarantee Inc (SGI) has closed the previously announced reinsurance transaction with Assured Guaranty Corp (AGC).
As consideration for the transaction – totalling approximately $13 billion in net par amount – AGC received approximately $360 million in cash plus assigned future instalment premiums totalling close to $59 million – on a present value basis.
Included in these amounts are GAAP expected losses to be paid of approximately $130 million for RMBS transactions.
AGC will be providing administrative services such as claims processing, surveillance, risk management services for the reinsured portfolio on behalf of (SGI).
“We are pleased to have brought another legacy bond insurance portfolio onto the Assured Guaranty balance sheet to generate additional future premium revenue. Like our previous acquisitions of financial guarantors or of their insured portfolios, this transaction helps to strengthen Assured Guaranty in terms of both financial strength and profitability”, commented Dominic Frederico, President and Chief Executive Officer (CEO) of Assured Guaranty.
