KBRA Affirms Assured Guaranty AA+ Insurance Financial Strength Ratings with Stable Outlook
Kroll Bond Rating Agency (KBRA) has affirmed the AA+ insurance financial strength ratings with Stable Outlooks for Assured Guaranty Inc. (AG) and its U.K. and European subsidiaries, Assured Guaranty UK (AGUK) and Assured Guaranty (Europe) SA (AGE). KBRA highlighted AG's strong capital position, substantial claims-paying resources, and diversified underwriting platform focused on public finance, international infrastructure, and structured finance.
The agency noted that AG's expertise in surveillance and work-outs helps mitigate credit risk and limit losses while growing its insured portfolio. KBRA views new business opportunities for AG as strong, citing increased awareness of financial guaranty products due to high-profile municipal defaults and events like the COVID-19 pandemic. The recent merger of Assured Guaranty Municipal Corp. into Assured Guaranty Inc. was seen as streamlining the organizational structure and improving efficiencies.
Kroll Bond Rating Agency (KBRA) ha confermato i rating di solidità finanziaria assicurativa AA+ con prospettive Stabili per Assured Guaranty Inc. (AG) e le sue filiali nel Regno Unito e in Europa, Assured Guaranty UK (AGUK) e Assured Guaranty (Europe) SA (AGE). KBRA ha evidenziato la solida posizione patrimoniale di AG, sostanziali risorse per il pagamento dei sinistri e una piattaforma di sottoscrizione diversificata focalizzata sul finanziamento pubblico, le infrastrutture internazionali e la finanza strutturata.
L'agenzia ha notato che l'esperienza di AG nella sorveglianza e nella gestione dei crediti aiuta a mitigare il rischio di credito e limitare le perdite mentre si espande il proprio portafoglio assicurato. KBRA considera le nuove opportunità commerciali per AG come solide, citando una maggiore consapevolezza dei prodotti di garanzia finanziaria a causa di default municipali di alto profilo e eventi come la pandemia di COVID-19. La recente fusione di Assured Guaranty Municipal Corp. in Assured Guaranty Inc. è stata vista come un modo per semplificare la struttura organizzativa e migliorare l'efficienza.
Kroll Bond Rating Agency (KBRA) ha afirmado las calificaciones de fortaleza financiera aseguradora AA+ con Perspectivas Estables para Assured Guaranty Inc. (AG) y sus filiales en el Reino Unido y Europa, Assured Guaranty UK (AGUK) y Assured Guaranty (Europe) SA (AGE). KBRA destacó la fuerte posición de capital de AG, recursos sustanciales para el pago de reclamos y una plataforma de suscripción diversificada enfocada en finanzas públicas, infraestructura internacional y finanzas estructuradas.
La agencia señaló que la experiencia de AG en vigilancia y reestructuraciones ayuda a mitigar el riesgo crediticio y limitar las pérdidas mientras crece su cartera asegurada. KBRA considera que las nuevas oportunidades de negocio para AG son fuertes, citando una mayor conciencia sobre los productos de garantía financiera debido a los defaults municipales de alto perfil y eventos como la pandemia de COVID-19. La reciente fusión de Assured Guaranty Municipal Corp. en Assured Guaranty Inc. se vio como una simplificación de la estructura organizativa y una mejora en la eficiencia.
Kroll Bond Rating Agency (KBRA)는 신용 보강의 재정적 강인함 AA+을 Assured Guaranty Inc. (AG) 및 그 자회사인 Assured Guaranty UK (AGUK)와 Assured Guaranty (Europe) SA (AGE)에 대해 안정적인 전망과 함께 확인했습니다. KBRA는 AG의 강력한 자본 위치, 상당한 청구 지급 자원 및 공공 금융, 국제 인프라 및 구조화 금융에 중점을 둔 다양화된 언더라이팅 플랫폼을 강조했습니다.
이 기관은 AG의 감시 및 워크아웃 전문성이 신용 위험을 완화하고 손실을 제한하는 데 도움을 주면서 보장 포트폴리오를 성장시키고 있다고 언급했습니다. KBRA는 높은 프로필의 지방자치체 디폴트와 COVID-19 팬데믹과 같은 사건으로 인해 금융 보증 제품에 대한 인식이 높아짐에 따라 AG에 대한 새로운 비즈니스 기회가 강력하다고 평가하고 있습니다. Assured Guaranty Municipal Corp.의 Assured Guaranty Inc.로의 최근 합병은 조직 구조를 간소화하고 효율성을 개선하는 것으로 보였습니다.
Kroll Bond Rating Agency (KBRA) a confirmé les notations de solidité financière assurantielle AA+ avec des perspectives Stables pour Assured Guaranty Inc. (AG) et ses filiales au Royaume-Uni et en Europe, Assured Guaranty UK (AGUK) et Assured Guaranty (Europe) SA (AGE). KBRA a mis en évidence la forte position de capital d'AG, des ressources substantielles pour le paiement des sinistres et une plateforme de souscription diversifiée axée sur le financement public, l'infrastructure internationale et la finance structurée.
L'agence a noté que l'expertise d'AG en matière de surveillance et de restructuration aide à atténuer le risque de crédit et à limiter les pertes tout en développant son portefeuille assuré. KBRA considère que les nouvelles opportunités commerciales pour AG sont solides, citant une sensibilisation accrue aux produits de garantie financière en raison de défauts municipaux très médiatisés et d'événements tels que la pandémie de COVID-19. La récente fusion de Assured Guaranty Municipal Corp. dans Assured Guaranty Inc. a été perçue comme une rationalisation de la structure organisationnelle et une amélioration de l'efficacité.
Die Kroll Bond Rating Agency (KBRA) hat die AA+ Rating für die finanzielle Stabilität der Versicherung mit stabilen Ausblicken für Assured Guaranty Inc. (AG) und ihre Tochtergesellschaften im Vereinigten Königreich und Europa, Assured Guaranty UK (AGUK) und Assured Guaranty (Europe) SA (AGE), bestätigt. KBRA hob die starke Kapitalausstattung von AG, erhebliche Ressourcen zur Schadensregulierung und eine diversifizierte Zeichnungsplattform hervor, die sich auf öffentliche Finanzen, internationale Infrastruktur und strukturierte Finanzen konzentriert.
Die Agentur stellte fest, dass AGs Expertise in Überwachung und Restrukturierungen hilft, das Kreditrisiko zu mindern und Verluste zu begrenzen, während das versicherte Portfolio wächst. KBRA betrachtet die neuen Geschäftsmöglichkeiten für AG als stark, da das Bewusstsein für Finanzgarantieprodukte durch hochkarätige kommunale Ausfälle und Ereignisse wie die COVID-19-Pandemie gestiegen ist. Die kürzlich erfolgte Fusion von Assured Guaranty Municipal Corp. in Assured Guaranty Inc. wurde als eine Vereinfachung der Organisationsstruktur und als Verbesserung der Effizienz angesehen.
- KBRA affirmed AA+ insurance financial strength ratings with Stable Outlooks for AG and its European subsidiaries
- Strong capital position and substantial claims-paying resources highlighted
- Diversified underwriting platform strengthening market presence
- Expertise in surveillance and work-outs helps mitigate credit risk and limit losses
- Increased demand for financial guaranty products, including more insured transactions exceeding $100 million in par
- Merger of Assured Guaranty Municipal Corp. into Assured Guaranty Inc. improved efficiencies and strengthened market position
- None.
Insights
The affirmation of Assured Guaranty's AA+ insurance financial strength ratings with a stable outlook by KBRA is a positive signal for investors. This high rating reflects the company's strong capital position, substantial claims-paying resources and diversified underwriting platform across public finance, international infrastructure and structured finance.
Key positives highlighted by KBRA include:
- Strong capital position relative to stress scenario losses
- Diversified platform strengthening market presence
- Expertise in surveillance and work-outs mitigating credit risk
- Increased demand for financial guaranty products
- Improved operational efficiencies from recent merger
For investors, this rating affirmation suggests stability and financial strength in Assured Guaranty's core business. The company's ability to handle stress scenarios and its growing market presence indicate potential for sustainable long-term performance. The increased demand for large insured transactions (
However, investors should note that while the outlook is stable, external factors like market volatility and credit spread changes could impact demand for Assured Guaranty's products. Overall, this rating affirmation supports a positive outlook for Assured Guaranty's financial stability and market position.
In its October surveillance report affirming the AA+ ratings of AG and its
- “AG’s rating reflects its strong capital position and substantial claims-paying resources relative to conservative stress scenario losses.”
- “AG’s diversified underwriting platform, focused on public finance, international infrastructure, and structured finance continues to strengthen its market presence.”
- “The platform-wide expertise of Assured Guaranty Ltd. (AGL) and its subsidiaries (collectively, Assured) in surveillance and work-outs helps mitigate credit risk and limit losses while growing its insured portfolio. The portfolio consists mainly of long-term obligations, reducing loss exposure during downturns.”
- “KBRA views new business opportunities for AG’s diversified underwriting platform as strong, noting its solid market position. High-profile municipal defaults and events like the COVID-19 pandemic and severe hurricanes have heightened awareness of the benefits of financial guaranty products.”
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“Further market volatility or a sustained widening of credit spreads may further increase demand as issuers seek lower borrowing costs or investors explore other forms of regulatory capital relief. Institutional demand has increased, evidenced by more insured transactions exceeding
$100 million
Commenting on the August 1, 2024, merger of Assured Guaranty Municipal Corp. into Assured Guaranty Inc., KBRA stated, “The merger streamlined the organizational structure, improved operational and regulatory efficiencies, and strengthened AG’s market position across its public finance, infrastructure, and structured finance businesses.”
“We are pleased with KBRA’s affirmation of our AA+ (Stable Outlook) rating for AG and its European subsidiaries, recognizing our strong capital position and claims-paying resources,” said Dominic Frederico, President and CEO of Assured Guaranty. “Over the last four years, we have seen a greater awareness in the market of the benefits of our financial guaranty product. Demand for our insurance has grown as issuers seek to reduce their borrowing costs, investors increasingly look for additional protection from known and unforeseen circumstances, and institutions seek more efficient ways to manage their risk and capital. As KBRA stated, ‘with our experienced management team and robust risk management platform,’ we are well positioned for future growth.”
Any forward-looking statements made in this press release, including those regarding growth opportunities for Assured Guaranty, demand for its product, and sustained economic conditions for increased new business, reflect Assured Guaranty’s current views with respect to future events 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. These risks and uncertainties include, but are not limited to, difficulties executing Assured Guaranty’s business strategy; those risks and uncertainties resulting from changes in rating agency models or opinions; Assured Guaranty’s continued capital adequacy; adverse credit developments in Assured Guaranty’s insured portfolio and the impact of those developments on rating agency models and opinions; reduction in the amount of available insurance opportunities and/or in the demand for Assured Guaranty’s insurance; other risks and uncertainties that have not been identified at this time, management’s response to these factors, and other risk factors 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 October 22, 2024. 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.
About Assured Guaranty Ltd.
Assured Guaranty Ltd. is a publicly traded (NYSE: AGO),
View source version on businesswire.com: https://www.businesswire.com/news/home/20241022744361/en/
Robert Tucker, 212-339-0861
Senior Managing Director, Investor Relations and Corporate Communications
rtucker@agltd.com
Media:
Ashweeta Durani, 212-408-6042
Director, Corporate Communications
adurani@agltd.com
Source: Assured Guaranty Ltd.
FAQ
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