|Robert Slavin/The Bond Buyer|
Operating income for the quarter increased 13.6% from fourth-quarter 2010. The operating income was
The improvement was mainly based on a 62% decrease in loss expenses, according to
“In its principal target market, bond issues with single-A underlying credit quality, the company guaranteed … 12.9% of par sold in fourth quarter 2011, compared with 10.2% in fourth-quarter 2010,” the company reported.
This is an encouraging trend considering that Standard and Poor’s only released its new rating of
“Our near-record operating income results were impressive in 2011, a year marked by uncertainty about our ratings, persistent problems in the economy, a steep decline in municipal issuance, and delayed recovery in structured and international infrastructure finance markets,” said
“In 2011 we strengthened our rating agency capital position, developed new business opportunities and mitigated a substantial amount of losses through our [rep and warrant] recoveries.”
Not all the numbers released Tuesday evening were positive.
The insurer reported a net loss of
The net loss is not particularly significant, according to
The present value of new business production in fourth-quarter 2011 was
On an annual basis, the trends with operating and net income were reversed. For 2011 operating income at
The recent economic downturn pushed the other credit enhancers out of the business of insuring new bonds.
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