BAM Announces 2020 Statutory Financial Results
February 17 2021 - 4:43PM
Business Wire
Claims-Paying Resources Grow Past $1.1
Billon
Build America Mutual, the only mutual, U.S. municipal-only bond
insurer, today published its 2020 statutory financial results,
reporting record par insured and total premiums. In addition to
strong organic growth in capital during 2020, BAM completed a $150
million, fully collateralized reinsurance agreement with Fidus Re
Ltd in the first quarter of 2021 that expands its claims-paying
resources to more than $1.1 billion.
“The substantial growth in claims-paying resources is the result
of the continued execution of our long-term capital plan, which
allows BAM to build unparalleled financial strength both through
organic growth and periodically accessing the capital markets,”
said Seán W. McCarthy, Chief Executive Officer of BAM.
Fidus Re is a special-purpose insurer created solely to provide
reinsurance protection to BAM, and previously provided $100 million
of claims-paying resources to BAM through a similar transaction in
2018, which remains in force. Both agreements were funded by the
sale of insurance-linked notes by Fidus Re, which carry AA ratings
from Kroll Bond Rating Agency.
BAM’s Statutory Financial Statements and Operating Supplements
are available in the Financial Information section of BAM’s
website. The financial statements have also been filed with the
National Association of Insurance Commissioners and the 50 state
insurance regulators that license BAM. The latest Fidus Re
transaction will be reflected in BAM’s first quarter results, which
will be published in May.
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
– and BAM is the preferred provider of bond insurance for members
of the National League of Cities. As of December 31, 2020, there
were more than $75 billion of BAM-insured municipal bonds
outstanding for more than 4,200 member-issuers.
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version on businesswire.com: https://www.businesswire.com/news/home/20210217006009/en/
Michael Stanton, Head of Corporate Strategy and Communications
212-235-2575; mstanton@buildamerica.com
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