In addition to Build America Mutual Assurance Company, the first and only mutual municipal bond insurance company
in the United States--which White Mountain kicked off through its subsidiary HG Global in 2012--it has acquired NSM Insurance HoldCo for $274 million and, indirectly, the British Fresh Insurance Service Group for nearly $50 million and DavidShield for $41.8 million.
Eventually, their analysis led them to the conclusion that creating a mutual bond insurance company
100% owned by policyholders was a financial model that would enable a monoline company to sustain itself without relying on insuring nonmunicipal debt.
Results in the year-ago quarter were hurt by a settlement with a bond insurance company
. Adjusting for that settlement, bond trading revenue fell 15 percent in the first quarter of 2014, the company said.
As a mutual bond insurance company
, BAM is operated for the benefit of its members--the cities, states and other municipal entities--that use BAM's financial guaranty to lower their cost of borrowing.
The bond insurance company
, Developers Surety and Indemnity Co.
Last year, the bond insurance company
ACA Financial Guaranty Corp.
NLC has played a lead role in the effort to meet the insurance needs of municipal bond issuers since it convened a Blue Ribbon Commission on Municipal Credit Enhancement that issued a report in 2009 urging NLC to investigate the feasibility of creating a mutual bond insurance company
Earlier she has served as a managing director at Financial Security Assurance (FSA), a bond insurance company
, and has also worked with American Capital Access and Enhance Reinsurance/Asset Guaranty; in government at New York City's Office of Management and Budget, and at Moody's Investors Service.
Christine Richard recounts the efforts of William Ackman, a controversial hedge fund manager who passionately, perhaps obsessively, advocated the theory that Municipal Bond Insurance Company
(MBIC), a company that insured government and corporate debt from default, was not as secure as it and the credit rating companies claimed.
He alluded to the "new, healthy guarantors"--notably Berkshire's new bond insurance company
, already licensed in 31 states--as potentially stepping in to take over "at least [the] municipal bond portfolio" of smaller insurers that cannot be stabilized.
Any rent Massport collects from airlines and reserve funds will go toward repaying the bonds; the remainder will be covered by Ambac Assurance Corp., a Wall Street bond insurance company
the airline hired to repay the bonds in the event of bankruptcy.