HAMILTON, Bermuda–(BUSINESS WIRE)–Assured Warranty Ltd. (NYSE:AGO) (along with its subsidiaries, Assured Warranty), the main monetary warranty insurance coverage firm, has begun additional enlargement of its footprint in continental Europe by issuing new monetary ensures by way of its French subsidiary, Assured Warranty (Europe) SA (AGE). AGE is rated AA+ by Kroll Bond Ranking Company and AA by S&P World Rankings, each with steady outlooks.
Moreover, Assured Warranty’s UK monetary assure subsidiary has been renamed Assured Warranty UK Restricted (AGUK) from Assured Warranty (Europe) plc to mirror the shift of European operations to AGE. AGUK will proceed executing Assured Warranty’s enterprise in the UK and internationally.
AGE was established in Paris in mid-2019 to organize for the affect of Brexit on AGUK. AGUK had beforehand been the entity writing Assured Warranty’s enterprise in Europe. While Brexit served as a catalyst, Assured Warranty was already contemplating having an operational presence in Paris, per the corporate’s goal to additional develop its enterprise in Europe.
“We had been seeing rising demand for our product within the European market and, no matter Brexit, believed that establishing a brand new subsidiary in continental Europe would assist us to pursue new enterprise in that market,” stated Nick Proud, Assured Warranty’s Senior Managing Director for Worldwide Infrastructure and World Structured Finance. “With AGE changing into the first platform for Assured Warranty’s European operations, altering the UK subsidiary’s title to Assured Warranty UK Restricted was a pure step to mirror its headquarters in London and to distinguish the businesses going ahead.”
In 2020, AGUK transferred 79 monetary warranty insurance policies to AGE, representing roughly €6.1 billion of par publicity, which consisted nearly completely of insurance policies referring to dangers within the infrastructure, power and public debt sectors.
To this point, AGE has been energetic within the main and secondary markets. Within the main market, AGE has closed three new Spanish photo voltaic transactions with an mixture authentic insured par quantity of €972 million.
Raphaël de Tapol, Deputy Managing Director of AGE, stated, “Having already assured nearly €1 billion of recent bonds and established our base in Paris, we look ahead to working with issuers on options to cut back their financing prices and to offering high-quality, long-term credit score safety for the beneficiaries of our monetary ensures in Europe. Our main focus will proceed to be Europe’s infrastructure and structured finance markets. Discovering alternatives to make use of our capabilities in these areas for the good thing about our shoppers is a key a part of Assured Warranty’s technique going ahead.” AGE just lately moved to new headquarters positioned at 71 rue du Faubourg Saint-Honoré 75008, Paris, France.
AGUK and AGE assure well timed cost of scheduled principal and curiosity to collectors comparable to banks or buyers in bonds and different varieties of investment-grade financings. These ensures, or “wraps,” typically increase the credit standing of the underlying debt instrument and will permit issuers to borrow at decrease rates of interest. The ensures could stay in pressure for so long as 30 years, and longer in some circumstances. Assured Warranty believes that monetary ensures could make the wrapped debt engaging for institutional buyers, comparable to insurance coverage corporations, that need to maintain long-term belongings which might be properly matched to their long-term liabilities. Assured Warranty’s merchandise may additionally assist banks in search of credit score safety for a spread of asset lessons as a way for them to optimise the capital related to their portfolios.
Assured Warranty’s monetary assure subsidiaries have a mixed $11 billion in claims-paying assets* and robust liquidity supplied by $10 billion of investable belongings. The corporate has supplied monetary ensures for greater than three many years in developed nations of Europe, the Americas and Asia.
*Mixture information for insurance coverage corporations inside the Assured Warranty Ltd. (AGL) group. Claims on every insurance coverage subsidiary’s ensures are paid from that subsidiary’s separate claims-paying assets. Particulars within the newest AGL Monetary Complement at assuredguaranty.com/AGLdata.
AGE is a joint inventory firm ruled by the Insurance coverage Code, with capital of €110.900.000 registered within the Paris Commerce and Corporations Register beneath quantity 852 597 384, whose registered workplace is positioned at 71, rue du Faubourg Saint Honoré – 75008 Paris, France.
AGUK is authorised by the Prudential Regulation Authority and controlled by the Prudential Regulation Authority and the Monetary Conduct Authority.
Cautionary Assertion Concerning Ahead-Trying Statements:
Any forward-looking statements made on this press launch mirror AGL’s present views with respect to future occasions and are made pursuant to the protected harbour provisions of the Non-public Securities Litigation Reform Act of 1995. Such statements contain dangers and uncertainties that will trigger precise outcomes to vary materially from these set forth on this press launch. These dangers and uncertainties embrace, however will not be restricted to, these ensuing from the shortcoming of AGE and AGUK to execute their methods, together with AGE’s deliberate enlargement in Europe; the demand for his or her monetary ensures; hostile developments within the assured or funding portfolios of AGE, AGUK or their affiliated co-insurers and reinsurers; actions that the score companies could take with respect to the monetary energy scores of AGE and AGUK or their affiliated co-insurers or reinsurers; adjustments on the earth’s credit score markets, segments thereof, rates of interest, credit score spreads or common financial situations; the event, course and period of the COVID-19 pandemic and the governmental and personal actions taken in response, and the worldwide penalties of the pandemic and such actions; and different dangers and uncertainties that haven’t been recognized presently, administration’s response to those elements, and different danger elements recognized in AGL’s filings with the U.S. Securities and Change Fee. Readers are cautioned to not place undue reliance on these forward-looking statements, that are made as of 18 March 2021. Assured Warranty undertakes no obligation to publicly replace or revise any forward-looking statements, whether or not on account of new info, future occasions or in any other case, besides as required by legislation.