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BAM Reports Second Quarter Financial Results

NEW YORK, August 11, 2017

Gross Par Outstanding Increases to $37.6 Billion;
Claims Paying Resources Grow $13.3 Million

Build America Mutual today published its second quarter 2017 financial results and operating supplement, reporting a $13.7 million gain in claims paying resources in the second quarter of 2017, 36% higher than the same period in 2016. Par outstanding rose 7% to $37.6 billion. Statutory Comprehensive Income[1] was $1.4 million in the quarter, versus $2.3 million in the same period of 2016.

“BAM recorded a strong quarter in our financial results and continued to build our financial strength with steady growth in capital,” said BAM Chief Executive Officer Seán McCarthy. “BAM insured more than 200 new-issue transactions, and strong investor demand for our guaranty allowed us to post our 11th consecutive quarter of growth in claims-paying resources.”

The growth in claims paying resources and par outstanding occurred despite a temporary disruption in primary-market origination activity starting June 6th, when S&P Global Ratings placed BAM’s rating on CreditWatch. The rating agency subsequently affirmed BAM’s AA rating on June 26th and BAM has since resumed active bidding on municipal market new issues.

“The affirmation kept BAM's ratings at the highest level S&P assigns to any active bond insurer, and was a positive resolution to the CreditWatch process. Investors and underwriters were outspoken in their support for BAM’s mutual structure and municipal-only insured portfolio during the CreditWatch period, and that support has allowed us to resume our role as a market utility serving issuers, underwriters and investors who are seeking to improve their bonds’ credit quality and market access,” Mr. McCarthy said.

Build America Mutual’s Statutory Financial Statements and Operating Supplements are available in the Financial Information section of BAM’s web site at: http://buildamerica.com/financialinformation. The financial statements have also been filed with the National Association of Insurance Commissioners and the 50 state insurance regulators that license BAM.

For more information, contact Michael Stanton, Head of Corporate Strategy and Communications, at mstanton@buildamerica.com or 212-235-2575, or Richard Holzinger, Head of Investor Relations, at rholzinger@buildamerica.com or 212-235-2518.

Posted: August 11, 2017


[1] Statutory Comprehensive Income is defined as statutory net income plus member surplus contributions collected, reflecting the change in BAM’s Qualified Statutory Capital over the period.