NEW YORK, May 11, 2018 – Build America Mutual today published its financial results for the first quarter of 2018, showing continued growth in par outstanding and claims-paying resources.
“BAM had a solid first quarter, with strong pricing partially offsetting a market-wide drop in new-issue volume and allowing us to continue to generate organic growth in claims paying resources, said Chief Executive Officer Seán McCarthy. “Pricing on primary market transactions, in particular, reflected the impact of more favorable interest rate spreads and growing investor demand for BAM’s guaranty.”
BAM guaranteed $1.4 billion of primary market insured transactions priced in the quarter, down 30% from Q1 2017 and in line with the 28% drop in total municipal bond supply. Primary market premiums on those transactions declined 8.6%, to $9.7 million.
Subsequent to the end of the quarter, BAM announced the completion of a collateralized reinsurance agreement with Fidus Re Ltd., which will have the effect of increasing BAM’s claims-paying resources by $100 million in the second quarter.
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 firstname.lastname@example.org or 212-235-2575, or Richard Holzinger, Head of Investor Relations, at email@example.com or 212-235-2518.