Assured Guaranty Re Ltd. has relieved PMI Guaranty Co. of its reinsurance portfolio related to downgraded bond insurer Financial Guaranty Insurance Co.

AG Re, the double-A rated reinsurance subsidiary of Assured Guaranty Ltd., will take on about $900 million of additional exposure to FGIC in the arrangement. Under the agreement, PMI Guaranty will also pay Assured about $9 million. This represents the unearned premiums already collected by the financial guaranty subsidiary of PMI Group, which is also part owner of FGIC.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.