BAM Announces Q3 2022 Statutory Financial Results
NEW YORK, November 10, 2022 – Build America Mutual, the only mutual, U.S. municipal-only bond insurer, today published its Third Quarter 2022 statutory financial results, showing $13.5 billion par insured and $109 million in total premiums, BAM’s strongest nine-month results on record. BAM also announced that it completed a $150 million, fully collateralized reinsurance agreement with Fidus Re Ltd. this week. Following that transaction, BAM’s claims-paying resources total more than $1.4 billion.
“Volatile market conditions are continuing to drive strong demand for BAM-insured bonds from investors who are focused on liquid bonds with durable, high-quality ratings,” said Seán W. McCarthy, Chief Executive Officer of BAM. “The latest Fidus Re transaction demonstrates BAM’s focus on serving our member issuers and investor stakeholders by maintaining excellent financial strength.”
Fidus Re is a special-purpose insurer that solely provides reinsurance protection to BAM and represents an innovative tool for mutual insurers to access the capital markets. The Fidus Re trusts are fully collateralized by assets held in money market funds, and were funded by the sale of insurance-linked notes by Fidus Re, which carry AA ratings from Kroll Bond Rating Agency. The Fidus notes are non-recourse to BAM; principal payments on the notes will be funded from assets in the trusts.
BAM’s Statutory Financial Statements and Operating Supplements are available in the Financial Information section of BAM’s website. The latest Fidus Re transaction will be reflected in BAM’s year-end results, which will be published in February.
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 September 30, 2022, there were more than $95 billion of BAM-insured municipal bonds outstanding for more than 5,300 member-issuers.
For more information, please contact:
Michael Stanton, Head of Corporate Strategy and Communications