Facts About Municipal Assurance Corp.
MAC is a U.S. Muni-Only Bond Insurer with a Proven Business Model
- A subsidiary of Assured Guaranty - the leader in municipal bond insurance.
- $1.4 billion in claims-paying resources, consisting of $1.1 billion of cash and marketable securities and a $360 million excess-of-loss reinsurance facility.1
- Established with a substantial book of reinsured business and embedded unearned premium reserve that will generate predictable future earnings.
- Unconditionally and irrevocably guarantees timely payment of principal and interest when due.
- Protects investors from municipal defaults and bankruptcies.
- Licensed to insure municipal bonds in all 50 states and the District of Columbia.
MAC Practices Conservative Underwriting and Risk Management
- Guarantees primarily small and medium-size issues in select categories, such as G.O. and tax-backed bonds and public electric, water, sewer and transportation revenue bonds.
- 100% U.S. municipal exposures diversified across all 50 states (including reinsured portfolio).
- Insures only U.S. municipal transactions that meet its disciplined underwriting criteria and diversification requirements.
- Size limits on individual transactions as well as risk concentration limits.
- Domiciled in New York and subject to insurance regulation in all states where it is licensed.
- Provides continuous surveillance of every credit in its insured portfolio.
Facts About Assured Guaranty
- Claims-paying resources of approximately $12 billion across the group.
- Three decades of experience.
- Committed to protecting debt holders from payment defaults and to helping issuers obtain cost efficient access to capital.
- Proven record of timely payment of investors' debt service claims as contractually obligated. Investors in Assured Guaranty-wrapped obligations of Harrisburg, Pennsylvania; Jefferson County, Alabama; Stockton, California; and Detroit, Michigan have all received timely debt service payments.
MAC Benefits from Assured Guaranty's:
- Seasoned executive officers and senior managers.
- Disciplined underwriting and enterprise risk management.
- Experience in surveillance and remediation.
- Established accounting, legal, and information technology infrastructure.
MAC Provides Transparency
- Subsidiary of a public company that is subject to New York Stock Exchange and SEC regulation and therefore held to higher legal standards of disclosure, oversight and transparency than non-public companies.
- Credit Summaries on its website provide financial and economic data on insured new-issue obligations.
1 Represents an aggregate $360 million excess-of-loss reinsurance facility for the benefit of MAC, Assured Guaranty Municipal Corp. and Assured Guaranty Corp., which became effective January 1, 2016. The facility terminates on January 1, 2018, unless MAC, Assured Guaranty Municipal Corp. and Assured Guaranty Corp. choose to extend it.
© Assured Guaranty Ltd. 2017. Published April 25, 2017. Data as of December 31, 2016. The information in this fact sheet should be read in conjunction with the Securities and Exchange Commission (SEC) filings of Assured Guaranty Ltd. (AGL or, together with its subsidiaries, Assured Guaranty), including the risk factors set forth therein, all of which speak only as of the dates indicated therein. Any forward-looking statements made in this fact sheet reflect Assured Guaranty's current views 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, Assured Guaranty's financial strength and ratings, and its financial performance and condition, could deteriorate and it may be unable to execute its business model and strategies. The materials in this fact sheet do not constitute advice with respect to any municipal financial products, or the issuance of any municipal securities, including with respect to the structuring, timing or terms of any such financial products or issuances. You should not rely on such material to make any decision with respect to these topics. Neither we nor any of our affiliates is acting as an advisor in connection with any municipal financial product or any offering of municipal securities. We encourage you to consult your own financial and legal advisors and to make your own independent investigation regarding any municipal financial product and the structure, timing and terms of any offering of municipal securities. Municipal financial product includes any municipal derivative, guaranteed investment contract, plan or program for the investment of the proceeds of municipal securities, or the recommendation and brokerage of municipal escrow investments.