Build America Mutual Announces S&P Global Ratings Affirms BAM’s AA Rating and Stable Outlook
June 25 2018 - 4:20PM
Business Wire
Build America Mutual today announced that S&P Global Ratings
completed its annual review of the company and affirmed BAM’s AA
rating and Stable outlook, the strongest rating S&P assigns to
any active insurer.
In a Research Update published today, S&P said the action
reflects BAM’s “strong market acceptance in the U.S. municipal
sector, prudent underwriting discipline, and proven year-over-year
growth in terms of par insured, premiums written, and risk-based
pricing.” In addition, S&P recognized that BAM’s structure as a
mutual insurer that is owned by the public-sector issuers whose
bonds it guarantees is important because it means that “BAM and its
owners are focused on a stable, low-cost source of financial
guarantee support, rather than a high return on investment.”
“S&P’s analysis is an important independent confirmation of
BAM’s exceptional financial strength,” said BAM Chief Executive
Officer Seán McCarthy. “That is anchored in our low-risk,
low-volatility insured portfolio that only includes bonds sold by
U.S. municipal issuers who fund essential public services, and
supported by the substantial financial resources that we have grown
organically and through innovative approaches like our reinsurance
agreement with Fidus Re earlier this year.”
About Build America Mutual
BAM is a mutual bond insurance company operated for the benefit
of its members – the cities, states and other municipal entities
that use BAM’s financial guaranty to lower their cost of borrowing.
BAM is sponsored by the National League of Cities, and was launched
in 2012 with initial capital provided by subsidiaries of White
Mountains Insurance Group, Ltd. (NYSE:WTM)
Through June 22, 2018, BAM has insured more than $49 billion of
municipal securities for more than 2,900 municipal issuers
nationwide. Learn more at http://buildamerica.com/mission/
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version on businesswire.com: https://www.businesswire.com/news/home/20180625006246/en/
Build America MutualMichael Stanton, 212-235-2575Head of
Corporate Strategy and Communicationsmstanton@buildamerica.com
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