Bermuda-based holding company Assured Guaranty has launched a new municipal bond insurance company, Municipal Assurance Corp. (MAC), to insure only select categories of US municipal bonds.
With $1.5bn of claims-paying resources, insurance licenses in 37 states and the District of Columbia, MAC has been capitalized to approximately $800m through cash and securities.
The capitalization has been contributed by Assured Guaranty Municipal Corp. (AGM) and Assured Guaranty Corp. (AGC), which own MAC jointly through a holding company.
Assured Guaranty president and chief executive officer Dominic Frederico said the launch of MAC provides an additional choice to municipal bond investors and issuers.
"MAC will complement the municipal bond insurance businesses of AGM and AGC, which continue their U.S. public finance activity and bring their own particular strengths to the market," Frederico added.
"We believe MAC will help build greater overall demand for municipal bond insurance and that, with our three platforms, Assured Guaranty will expand its leadership in the industry."
The National Association of Insurance Commissioners’ Review of Electronic Application Coordination and Processing (REACAP) Program is offering the expedited approval process to help MAC in pursuing licenses in the remaining states.
MAC is not licensed to transact insurance business in all jurisdictions, including California.