Assured Guaranty Completes Merger, Shares Dip

By Tamara Parker • Friday, August 02 08:04 • Permanent Link

Assured Guaranty Ltd. (NYSE: AGO) has announced the completion of the merger of Assured Guaranty Municipal Corp. (AGM) into Assured Guaranty Inc. (AG), with AG becoming the surviving company. The merger, effective as of August 1, 2024, brings all obligations of AGM under AG and makes Assured Guaranty UK Limited and Assured Guaranty (Europe) SA subsidiaries of AG.

At the time of the merger, both AG and AGM held identical financial strength ratings with stable outlooks: AA+ at Kroll Bond Rating Agency, AA at S&P Global Ratings, and A1 at Moody’s Ratings. All three rating agencies have indicated no change to Assured Guaranty’s financial strength as a result of the merger.

Kroll Bond Rating Agency views the merger as creating capital, operational, and regulatory efficiencies, as well as enhancing Assured Guaranty Ltd.'s overall global platform and scale. Dominic Frederico, President and CEO, emphasized that the merger creates a larger scale company with a greater capital base to support insured obligations and a more diversified insured portfolio. Additionally, it simplifies administrative processes and brand marketing, positioning the company for industry leadership and future growth.

Following the merger, AG will continue to be domiciled in Maryland, with the Maryland Insurance Administration (MIA) as its primary regulator. In connection with the merger, the MIA approved a $300 million stock redemption, expected to be effectuated shortly following the merger.

For further information on the merger, including a presentation, a Q&A, and rating agency comments, visit the homepage of assuredguaranty.com. Following these announcements, the company's shares moved -1.7%, and are now trading at a price of $81.01. If you want to know more, read the company's complete 8-K report here.

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