This page includes Regulatory news filings supplied by issuers listed on the BSX. Please note the BSX is not responsible for the content, accuracy or completeness of announcements filed by issuers and disclaims all liability for any loss arising from reliance on information contained within issuer announcements.
American Overseas Group Limited Announces Potential Commutation of $4.5 Billion Par FGIC Portfolio
Hamilton, Bermuda - 24 August, 2012 - American Overseas Group Limited (the “Company” or "AOG"; BSX Ticker: AORE.BH; Pink Sheets: AORE.PK) today announced that its operating subsidiary, American Overseas Reinsurance Company Limited (“AORE”), has entered into a Settlement, Commutation and Release Agreement, dated as of August 20, 2012 (the “Agreement”), which, if consummated, would commute (the “Commutation”) the entire portfolio of financial guaranty reinsurance business it has assumed from Financial Guaranty Insurance Company (“FGIC”).
A rehabilitation proceeding for FGIC pursuant to Article 74 of the New York Insurance Law is currently pending before the Supreme Court of the State of New York (the “Court”), and the effectuation of such Commutation is subject to approval of the Agreement by the Court. Approval of the Agreement is within the Court’s discretion, and no assurance can be given that such approval will be granted or when it will be granted. If the Court approves the Agreement, AORE will make a commutation payment to FGIC in the amount of $64.8 million and the Commutation will become effective upon FGIC’s receipt of such payment. The aggregate outstanding par value of the reinsurance portfolio proposed to be commuted was $4.5 billion as of March 31, 2012. The Commutation, if effectuated, would have resulted in a GAAP loss of approximately $14.1 million if it had been completed at March 31, 2012, the most recent date as of which AOG has published financial results.
American Overseas Group Limited is a Bermuda-based holding company. Its operating subsidiary, American Overseas Reinsurance Company Ltd., has historically provided financial guaranty reinsurance for U.S. and international public finance and structured finance transactions. More information can be found at www.aoreltd.com.
SOURCE:
American Overseas Group Limited
Schroders House, 1st Floor
131 Front Street
Hamilton, HM 12
Bermuda
Contact:
Attention: David Steel
Telephone: 441-296-6501
Email: info@aoreltd.com