Bond Insurers Show Strong Gains
NU Online News Service, May 15, 4:15 p.m. EST--Despite a "challenging" corporate credit environment and the events of Sept. 11, the bond insurance industry had a record year in 2001, with highs set by most companies in par originated and premiums written, according to a new report published today by Fitch Ratings.
In 2001, bond insurers' total par originated was up 37.6 percent and adjusted gross premiums written were up 38.4 percent, Fitch said.
"Bond insurers emerged generally unscathed by the events of Sept. 11 as well as the many corporate defaults suffered during last year's recession, and may have benefited from the uncertain economic environment," said Greg Stofega, associate director of Fitch Ratings in New York. "The combination of low interest rates, substantial issuer capital needs, and investor flight to quality has served to keep debt issuance high and premium rates stable."
The new report breaks out the outstanding growth in bond insurance across all business lines, including U.S. municipal, U.S. structured finance and international. Additionally, the report includes a summary of company-specific developments as well as an analysis of how bond insurers fared in the wake of events that challenged the financial markets during 2001.
The report--"Bond Insurers' See Strong Growth Ahead"--can be found online at www.fitchratings.com by clicking on the "U.S. Public Finance" sector. The report is available by linking to "Criteria Reports" and then scrolling down to the section headed "Financial Guaranties."
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