American Overseas Group Enters Agreement
Bermuda-based American Overseas Group Limited announced on Friday [Aug 24] that its operating subsidiary, American Overseas Reinsurance Company Limited, has entered into a Settlement, Commutation and Release Agreement, dated as of August 20, 2012, which, if consummated, would commute the entire portfolio of financial guaranty reinsurance business it has assumed from Financial Guaranty Insurance Company.
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, 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.
Who are the Directors of American Overseas Reinbsurance Company?