Assured Guaranty Municipal (AGM), a provider of municipal bond insurance, has received the green light from the New York State Department of Financial Services to implement a stock redemption plan.
Under the plan, AGM will repurchase shares worth $300 million from its direct parent Assured Guaranty Municipal Holdings.
AGM is an indirect subsidiary of Assured Guaranty Ltd (AGL), which will in turn use the funds mainly to repurchase publicly traded common shares. Share repurchases are allowed in the open market or through privately negotiated transactions.
As of close of business on November25, AGL had around $325 million worth of shares remaining under its current repurchase authorizations.
At the end of September 2016, AGM’s claims paying resources added up to $5.7 billion, excluding its investment in its affiliate Municipal Assurance Corp.
AGM is an operating subsidiary of AGL, which is a publicly traded holding company based in Bermuda. Its operating subsidiaries provide credit based products to the US and international public finance, infrastructure and structured finance markets.
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