BAM Increases Claims-Paying Resources, Takes Statutory Loss

Build America Mutual reported a record increase in claims-paying resources. As of Sept. 30, BAM's total CPR were $629 million on total par insured of $30.5 billion. According to the release, the total CPR increased $28 million from December 31, 2015, reflecting positive cashflow.

"BAM enjoyed another strong quarter, driven by solid issuance of new-issue municipal bonds and broadening investor demand for our guaranty," said Bob Cochran, Chairman of BAM.

"Interest from institutional buyers drove a continued increase in BAM's average new-issue transaction size and strong secondary market insurance activity."

On Nov. 2, White Mountains Insurance Group LTD., the insurance holding company that loaned the municipal bond insurer its startup investment in 2012, reported $14 million and $30 million of GAAP pre-tax losses related to BAM in the third quarter and first nine months of 2016, compared with GAAP pre-tax loss of $11 million and $34 million in the same periods of last year. BAM's affairs are managed on a statutory accounting basis, and it does not report stand-alone GAAP financial results. BAM's statutory net loss was $8 million in both the third quarter of 2016 and the third quarter of last year.