Build America Mutual today published its 2014 first-quarter Statutory Financial Statements and Operating Supplement, showing that the municipal-bond insurer’s claims-paying ability rose to $583 million. As the first mutual bond insurer, BAM’s focus is on building its capital base, to support its ratings and to enhance the value of its guaranty among municipal bond investors and the issuer-members who hold BAM’s policies. BAM was the most-active insurer of municipal bonds in the primary market in the first quarter, both by number of transactions and par insured.
In addition to strong financial and new-business performance, BAM announced that it agreed with the holders of its Surplus Notes to change the interest rate on the notes from a fixed rate to a floating rate. The new terms reflect current market conditions, including the extended period of low interest rates and BAM’s progress in establishing its franchise as a market leader in the revitalized financial-guaranty insurance industry.
The financial statements were filed with the National Association of Insurance Commissioners and posted in the Financial Information section of BAM’s web site at: http://buildamerica.com/financialinformationhttp://buildamerica.com/financialinformation.
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