Assured Guaranty Ltd. Discloses Exposure to Areas Affected by Hurricane Katrina.HAMILTON Hamilton, city, Bermuda Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. , Bermuda -- Assured Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Ltd. (NYSE NYSE See: New York Stock Exchange :AGO) today disclosed information regarding the net par outstanding exposure of its financial guaranty direct and financial guaranty reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. segments to the areas most affected by Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. . The Company's public
finance exposure in FEMA-designated counties or parishes within
Louisiana, Mississippi and Alabama is $155.0 million (Table 1). The
Company's exposure to investor-owned utilities in the affected
states totals $65.9 million (Table 2). The majority of the
Company's exposure is in its financial guaranty reinsurance
segment. Hurricane Katrina's impact on the credit quality of these
exposures cannot be determined at this point in time.The Company's review of its structured finance portfolio shows no significant concentrations in the areas affected by Hurricane Katrina, as these transactions are generally backed by geographically diverse pools of assets.
Table 1
Assured Guaranty Ltd.
Public Finance Exposure in FEMA-Designated Counties
Net Par Outstanding as of June 30, 2005
($ in Thousands)
New Other
Bond Type Alabama Orleans Louisiana Mississippi Total
------------------- ------- -------- ---------- ----------- ---------
General obligation $5,101 $14,772 $3,550 $1,250 $24,673
Healthcare 1,500 - 38,493 5,792 45,786
Higher education - - 4,645 - 4,645
Housing - 114 711 112 937
Investor-owned
utilities (IOUs) 5 - - - 5
Municipal utility 1,144 8,634 185 1,060 11,022
Other public
finance - 769 - - 769
Tax backed 307 29,733 13,468 68 43,577
Transportation - 23,616 - - 23,616
------- -------- ---------- ----------- ---------
Total $8,056 $77,638 $61,054 $8,282 $155,029
------- -------- ---------- ----------- ---------
Table 2
Assured Guaranty Ltd.
Investor-Owned Utility Exposure in Alabama, Louisiana and Mississippi
Net Par Outstanding as of June 30, 2005
($ in Thousands)
Alabama Louisiana Mississippi Total
-------- --------- ----------- --------
Investor-owned utilities $50,004 $4,352 $11,500 $65,856
Assured Guaranty Ltd. is a Bermuda-based holding company. Its operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. provide credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing products to the U.S. and international public finance, structured finance and mortgage markets. More information can be found at http://www.assuredguaranty.com. Any forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made in this press release reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The forward-looking statements could be affected by rating agency action such as a ratings downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. , difficulties with the execution of the business strategy, developments in the world's financial and capital markets, more severe losses or more frequent losses associated with products affecting the adequacy of the company's loss reserve, changes in tax laws, loss of key personnel, changes in accounting policies or practices, and changes in general economic conditions, as well as management's response to these factors, and other risk factors identified in Assured Guaranty Ltd.'s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. Assured Guaranty Ltd. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. |
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