ASSURED GUARANTY TO ACQUIRE CIFG HOLDINGS

Bermudian financial guaranty insurer Assured Guaranty Ltd, through its Assured Guaranty Corp (AGC) unit, has agreed to acquire CIFG Holding and its financial guaranty operating company CIFG Assurance North America for $450m in cash. The deal is expected to close by mid-year, subject to anti-trust and other regulatory approvals and satisfaction of certain closing conditions. Under the deal, CIFG NA will merge into AGC, with all CIFG NA assets and obligations becoming AGC’s and all bonds insured by CIFG NA becoming insured obligations of AGC. Any policies tied to a 2009 reinsurance contract between CIFG NA and AGC that have not been novated to AGC will become direct obligations of AGC. The deal marks AGC’s third purchase of a legacy bond insurer, following the acquisitions of Financial Security Assurance in 2009 and Radian Asset Assurance in 2015.