Profile: Assured Guaranty Ltd (AGO.N)
15 Jul 2019
Assured Guaranty Ltd., incorporated on August 21, 2003, is a holding company. The Company, through its subsidiaries, provides credit protection products to the United States and international public finance, including infrastructure, and structured finance markets. The Company applies its credit underwriting judgment, risk management skills and capital markets experience primarily to offer financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments. The Company markets its financial guaranty insurance directly to issuers and underwriters of public finance and structured finance securities, as well as to investors in such obligations. The Company guarantees obligations issued principally in the United States and the United Kingdom and also guarantees obligations issued in other countries and regions, including Australia and Western Europe. The Company also provides other forms of insurance that are in line with its risk profile and benefit from its underwriting experience.
The Company conducts its financial guaranty business on a direct basis from companies: Assured Guaranty Municipal Corp. (AGM), Municipal Assurance Corp. (MAC), Assured Guaranty Corp. (AGC), and Assured Guaranty (Europe) Ltd. (AGE). It also conducts business through Assured Guaranty Re Ltd. (AG Re) and Assured Guaranty Re Overseas Ltd. (AGRO), Bermuda-based reinsurers. AGM provides financial guaranty insurance on debt obligations issued in the United States public finance and global infrastructure markets, including bonds issued by United States or Governmental authorities or notes issued to finance infrastructure projects. MAC offers insurance and reinsurance on bonds issued by United States or municipal Governmental authorities, focusing on investment grade obligations in select sectors of the municipal market. AGC provides insurance and reinsurance on debt obligations in the global structured finance market and also offers guarantees on obligations in the United States public finance and international infrastructure markets. AGE offers financial guarantees in both the international public finance and structured finance. AG Re owns, indirectly, Assured Guaranty Re Overseas Ltd. (AGRO), which is a Class 3A and Class C insurer. AG Re and AGRO underwrite financial guaranty reinsurance. They write business as reinsurers of third-party primary insurers and of certain affiliated companies.
The Company insures and reinsures various types of the United States public finance obligations, which include general obligation bonds, tax-backed bonds, municipal utility bonds, transportation bonds, healthcare bonds, higher education bonds, infrastructure bonds, housing revenue bonds, investor-owned utility bonds and other public finance bonds. The general obligation bonds include credit bonds issued by states, their political subdivisions and other municipal issuers, and are supported by the general obligation of the issuer to pay from available funds and by a pledge of the issuer to levy ad valorem taxes in an amount sufficient to provide for the payment of the bonds. The tax-backed bonds include tax-backed revenue bonds, general fund obligations and lease revenue bonds. The municipal utility bonds, which are obligations of forms of municipal utilities, including electric, water and sewer utilities and resource recovery revenue bonds. The transportation bonds include a range of revenue-supported bonds, such as bonds for airports, ports, tunnels, municipal parking facilities, toll roads and toll bridges. The healthcare bonds are obligations of healthcare facilities, including community-based hospitals and systems, as well as of health maintenance organizations and long-term care facilities.
The Company's higher education bonds are obligations secured by revenue collected by either public or private secondary schools, colleges and universities. The infrastructure bonds include obligations issued by a range of entities engaged in the financing of infrastructure projects, such as roads, airports, ports, social infrastructure and other physical assets delivering services supported by long-term concession arrangements with a public sector entity. The housing revenue bonds are obligations relating to both single and multi-family housing, issued by states and localities, and in some cases, insurance from entities, such as the federal housing administration. The investor-owned utility bonds are obligations backed by investor-owned utilities, mortgage bond obligations of for-profit electric or water utilities providing retail, industrial and commercial service, and also include sale-leaseback obligation bonds supported by such entities. The other public finance bonds include other debt issued, guaranteed or otherwise supported by United States national or local Governmental authorities, as well as student loans, revenue bonds and obligations of some not-for-profit organizations.
The Company insures and reinsures various types of non-United States public finance obligations, which consist of both infrastructure projects and other projects for municipal function, such as regulated utilities. The non-United States public finance securities include infrastructure finance obligations, which are obligations issued by a range of entities engaged in the financing of international infrastructure projects, such as roads, airports, ports, social infrastructure, and other physical assets; regulated utilities obligations, which are issued by Government-regulated providers of essential services and commodities, including electric, water and gas utilities; pooled infrastructure obligations, which are synthetic asset-backed obligations that take the form of credit default swap (CDS) obligations or credit-linked notes that reference either infrastructure finance obligations or a pool of such obligations, with a deductible to cover credit risks associated with the referenced obligations, and other public finance obligations, which include obligations of local, municipal, regional or national Governmental authorities or agencies. The Company also insures and reinsures various United States and non-United States structured finance obligations.
The Company insures and reinsures various the United States and non- United States structured finance obligations. The Company's Pooled Corporate Obligations are securities primarily backed by various types of corporate debt obligations, such as secured or unsecured bonds, bank loans or loan participations and trust preferred securities (TruPS). Its Residential Mortgage-Backed Securities (RMBS) are obligations backed by closed-end and open-end first and second lien mortgage loans on one- to four- family residential properties, including condominiums and cooperative apartments. Its Insurance Securitization Obligations are obligations secured by the future earnings from pools of various types of insurance/reinsurance policies and income produced by invested assets.
The Company's Consumer Receivables Securities are obligations backed by non-mortgage consumer receivables, such as student loans, automobile loans and leases, manufactured home loans and other consumer receivables. Its Commercial Receivables Securities are obligations backed by equipment loans or leases, aircraft and aircraft engine financings, business loans and trade receivables. Its Commercial Receivables Securities are obligations backed by equipment loans or leases, aircraft and aircraft engine financings, business loans and trade receivables. Its Commercial Mortgage-Backed Securities (CMBS) are obligations backed by pools of commercial mortgages on office, multi-family, retail, hotel, industrial and other specialized or mixed-use properties. Its Other Structured Finance Obligations are obligations backed by assets not generally described in any of the other described categories.
The Company competes with Build America Mutual Assurance Company and National Public Finance Guarantee Corporation.
Assured Guaranty Ltd
5th Floor, 30 Woodbourne Avenue
PEMBROKE HM 08