As BAM wraps up its fifth full year of operations, BAM Co-Founders Bob Cochran and Seán McCarthy wrote to thank the issuers, investors, underwriters, and municipal advisors who have helped prove the value that BAM’s focused, municipal-only, AA/Stable-rated guaranty provides to issuers and investors.

Build America Mutual today published its third quarter 2017 financial results and operating supplement, Statutory Comprehensive Income was $1.1 million in the quarter and BAM’s claims-paying resources grew $10.8 million to $686.7 million.

Build America Mutual published its second quarter 2017 financial results and operating supplement, reporting a $13.7 million gain in claims paying resources in the second quarter of 2017, 36% higher than the same period in 2016. Par outstanding rose 7% to $37.6 billion. Statutory Comprehensive Income was $1.4 million in the quarter, versus $2.3 million in the same period of 2016.

In completion of a long-term strategic initiative, Build America Mutual, the largest active municipal-only bond insurer, announced today that White Mountains Insurance Group will contribute $203 million of BAM surplus notes as permanent capital for HG Re, the captive reinsurer that provides first-loss protection for BAM’s insured portfolio. In addition, BAM and HG Re have made changes to their reinsurance treaty that will accelerate the growth in BAM’s statutory capital in future years.

Build America Mutual today announced that S&P Global Ratings affirmed BAM’s AA rating and Stable outlook and removed BAM from CreditWatch. S&P’s decision marks the end of an intensive review of BAM’s first five years of performance and reflects the company’s transition from a “startup” to a “mature company” under S&P’s rating criteria for financial guaranty insurers.

S&P Global Ratings’ decision to place BAM’s rating on CreditWatch Negative represents a departure from their stated criteria and previous communications to the market. BAM’s managing directors said they intend to engage with S&P during the CreditWatch period to demonstrate that BAM’s financial strength and low-risk, low-volatility strategy of insuring only U.S. municipal bonds from essential public purpose issuers supports BAM’s current rating.

Gross Par Outstanding Increases to $35.2 Billion as Demand for Insured Bonds Outpaces Overall Municipal Market Volume

Build America Mutual announced record results for growth in claims paying resources, statutory comprehensive income,1 pricing, and total premiums in the first quarter of 2017. The results were driven by high investor demand for BAM’s insured municipal bonds, which offset a broad decline in new- issue municipal bond volume. Par outstanding rose 7% to $35.2 billion.

Thomson Reuters’ Municipal Market Data has revised the criteria for its generic insured yield curves to include bonds guaranteed by Build America Mutual, reflecting the increasing institutional demand for BAM-insured bonds and providing municipal market participants with a more complete way to gauge the relative value of insured and uninsured municipal bonds.
“The MMD insured yield curve is an important, independent tool issuers, investors, and advisors use to monitor market conditions and estimate the value insurance adds to their transaction,” said Rick Holzinger, BAM’s Head of Investor Relations. “BAM guaranteed approximately 45% of all insured municipal bond transactions over the last year, so a large segment of the market will benefit from having access to a reference point that is relevant to their sales.”

Build America Mutual today filed its Fourth Quarter and Full Year 2016 Statutory Financial Statements, showing total claims- paying resources increased 7% on the year to $643.7 million. Gross par outstanding rose to $33.1 billion. The $14.7 million fourth quarter increase in claims-paying resources is the largest quarterly increase since the company was founded in 2012.
Build America Mutual’s Statutory Financial Statements and Operating Supplements are available in the Financial Information section of BAM’s web site at: https://live-bambondscom.pantheonsite.io/financialinformation. The financial statements have also been filed with the National Association of Insurance Commissioners and the 50 state insurance regulators that license BAM.
For more information, contact Michael Stanton, Head of Corporate Strategy and Communications, at mstanton@buildamerica.com or 212-235-2575, or Richard Holzinger, Head of Investor Relations, at rholzinger@buildamerica.com or 212-235- 2518.

Build America Mutual, the first mutual municipal bond insurer, today announced that John White, Chairman of the PFM Group, has been elected to join its Board of Directors. As CEO of PFM for more than 30 years, Mr. White played a key role in building its municipal advisory division, Public Financial Management, into the largest independent financial advisor to municipal bond issuers in the United States.

Like you, we at BAM are ready to hit the ground running, supporting municipal issuers when they access the market to finance essential public infrastructure. More than 2,200 issuers have already become members of BAM, and we’ve now insured almost $35 billion, after another record year in 2016 ($11.4 billion par insured, including more than $950 million in the secondary market). In a challenging market,
our insured bonds are a valuable source of liquidity: More than $500 million of BAM insured bonds trade hands in the secondary market in a typical week, and insurance was used more frequently on AA-category credits when interest rates rose during the fourth quarter.

Build America Mutual today filed its Third Quarter 2016 Statutory Financial Statements and published its Operating Supplement, reporting a 9.6% increase in gross par outstanding to $30.5 billion. Claims-paying resources rose $11.8 million to $629 million, the largest quarterly increase since the company was founded in 2012.
Build America Mutual’s Statutory Financial Statements and Operating Supplements are available in the Financial Information section of BAM’s web site at: https://live-bambondscom.pantheonsite.io/financialinformation. The financial statements have also been filed with the National Association of Insurance Commissioners and the 50 state insurance regulators that license BAM.
For more information, contact Michael Stanton, Head of Corporate Strategy and Communications, at mstanton@buildamerica.com or 212- 235-2575, or Richard Holzinger, Head of Investor Relations, at rholzinger@buildamerica.com or 212-235-2518