Assured Guaranty Ltd. has agreed to reinsure $13 billion of CIFG Assurance NA's U.S. public finance book in return for unearned premium reserves of $88 million, the companies announced Thursday night.

The move comes as part of CIFG's broader plan to reduce its exposures and could provide a boost to those holding CIFG-insured bonds. After closing, the companies plan to novate the CIFG policies, essentially canceling them to replace with policies from Assured Guaranty.

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