everyone to and Robert you, joining today’s welcome call. Thank
essential for all and providers extend by on frontline. our First, and horrible courage providers, and the affected the I those healthcare admiration of also other responders this our first would heartfelt sympathies service pandemic to to thanks the like
running without and to have are many we continuity Guaranty’s interruption, implementing plans Assured remote place by business also operations I their years. put from stepped keep people of up have tested their entirely grateful for am in work. homes We for the our all the hard and regularly dedication proud way technology almost and
to new issuance new the We business in write secondary have continued both markets.
to will than shareholders, time issuers efficient support insurance function of has a more bond when policyholders value been and at continue never We its of for provide important the markets.
Guaranty’s market market first During a production. reaction the turbulence though quarter, PVP was the XX% environment XX% very $XX was worldwide. first public pandemic. even the Assured PVP propelled XXXX the million production insurance of the limited during by first to by municipal finance overall market increase U.S. good than of quarter higher was in market quarter in bifurcated
economy and close February, were Until the credit at was of tight. end near interest spreads the rates our extremely were strong, historic
of than more The funds, points funds XX% robust during basis XXXX. yields selling a poor because closed municipal March was out weeks $XX.X leading jumped which X.XX% March, There at at pulled XX, of and and the investors low net February example, equity cover by municipal mutual the during estimated XXX benchmark municipal X. X major first March mutual billion to strong fell in record collapsed to our up demand by the almost Then took liquidations. yield through indices on bonds XX months X inflows billion an XX-year point. bond the of liquidity market, long-term $XXX from net funds in to For March XX XX-year on municipal
halt. New temporarily ground the to U.S. a finance issuance public market in
of new were million meant this issues to mandated that us, quarter For par $XXX past postponed ensure quarter during were end. of the
with increasing yields and and issuance we of first by generally uninterrupted. during during low Even continued sold succeeded the lack the quarter’s markets, insurance in have part has period. municipal issues however All bonds and business market secondary year’s our spreads March, insured of and told, XX% we primary of with tight amount secondary billion quarter municipal last the across $X.X the Our compared new production. with the first par
the for driven result have both turned risk. be This of investors quarter to market results in that both is believe attention disruption Guaranty has to investors created these we Assured more markets. secondary credit future reflected circumstances that One and primary and will in opportunities have the orders, quarter U.S. And finance, also a notably by second be value our energy French to public solar international of infrastructure first new business the the our guarantee. finance, Outside most subsidiary. through came which in of transaction issue our most our guaranteed new was from transaction Spain, in home
our as well continued Spain, Germany further our production France, international have strategy include as diversifying Ireland, of markets We Australia. target
Although the see some continue strong product. COVID-XX widened in credit spreads we delayed have been and relatively current environment, for have appetite transactions investor to our
response £XXX and relationships recent we growing We incoming in the investor seeing continue working and in In a housing railroad, and UK, of billion to have achieved infrastructure, and visibility expanding greater budget including market the investment next of over affordable the into the new maintaining on we years enquiries are the diversified stream in proposes years. also a chance broadband. X
details have no vessel We this into will program. private where fit on
supports government investments. We infrastructure that significant are encouraged the current
little environment in guaranty, new of business the this our in investors While our the – issuers we the while on have reasons are keep all financial for our collect this upfront that and of mind XXXX This premiums because of we each there utilize over markets new many business them we majority will transaction. to is earned good life in earning. impact have current
of For related example, guaranteed earned financial XXXX. in premiums policies to new rode approximately in XXXX X% only
good track was municipal of environments. to quarters bonds, a weather insured shape sector portfolio very disruption. in our Three this exposures U.S. has insured record to economic economic stressed Our that in a strong
asset that business well, ultimate During Similarly, ensuing leading of losses. to declined claims few new very we transaction mitigating market Great in loss more core. and classes Guaranty Recession in international In settlements from XXXX financial to only losses finance into crisis. with the that be structured defaults infrastructure the X Recession, Great U.S. of ensure Assured and obtained the in structures only paid severity XXXX, some years to turned out our what highly municipal the we the a performed
from structured XX% our finance of portfolio XXXX XXXX, billion And first from insured $X.X decreased to $XXX.X going quarter to billion.
will each Importantly, in profitable earning a and from XXXX, we $X.X XXXX operating to have total profitably billion we income more cheer of been than year. adjusted
newly Puerto at years of we This year. $XX issuers that latter public period. less through of the was XXXX acquired the million XXXX, XX on claims the per in losses average finance than bonds the paid states Looking AGM net U.S. from Rico excludes our in
territory, a U.S. a Rico As situation. Puerto unique represents
to their balance activity. receipts municipal this appeared operating in their positions, will of resolve their improve which are and on of longest COVID-XX We after significant still XXXX legal we of rating reacted our and generally economic the exercise U.S. significantly, economic prepared we in recorded financial expansion the liquidity negotiation ride to them believe and based sheets the bonds. municipalities improving our municipal which based losses. successful tax government’s to and recoveries crisis out right, allowing in better which even grew the by pause history them experience has market’s mitigating during process strong of believe
not reduced municipalities have are downgrades than occur, these themselves downgrades course do us Of are losses. the cause greater less others in could and situations some to materially where revenues
risk, occupancy closely applied individual at those we has have test likelihood in most surveillance believe affected we considered being to are transportation Our student certain bonds and portfolio at taxes, by Among by the highest hotel department examined the certain sectors sectors, the housing. sectors, and transactions stress backed insured the that of stadiums pandemic. largest
debt a increase containing rates, ensure that protect but most that fees class, issuers are to service requirements. adequate to to funds that are structured well As bondholders, there or bonds changes municipal our require there charges of transactions are ensure covenants to to meet
maintenance many debt capacity. service also a required, years’ a the reserve fund While to up debt service worth with are of of
as on likely the have us of guaranteed additional we municipal at are granular While currently the unrecoverable long-term portfolio unprecedented economic determining structural reimburse We damage limit The bond of and – including and our the ready meet municipalities, policyholders our and steps to Federal programs taken credit for stages material order based pandemic the The do from on crisis, this short in stand to we transactions. result capital anticipate based specific the to insured point, protections damage market on on to not obligations expected. ratings issuers Reserve any state, liquidity our for access. economic claims are of the excess actions Congress reputation, and to we if liquidity, the financial are market a losses still pandemic. to the capital, review our in impact early this issuers, limit
keep the payroll federal economic to would the and issued The of states federal to safe issues. police, employees infrastructure current until generating for government states among public to activity. to municipalities professionals, medical is circumstance, and to and share certainly In major economic and school teachers those almost help being lead firefighters, would sensible and municipal we municipalities policy find keep the bonds expect costs opportunities is build restore on to it the other state government it cash
resolved as on through Rico, down economic the process lock the Promesa this Puerto the the island has in core delayed the activity consensual negotiations how have to In long all again III could Title postponed health been revealing has putting ago. path
The this national the One it Puerto is to a stage Puerto whose can economy help significant of pharmaceuticals economic global economic island had in renewals Rico Puerto set challenge of manufacturing exposed by for to because learned American tax and lessons chain, U.S. crisis an sale. security incentives medical own producing in the opportunity history stimulus that supported does for and supply while pandemic federal the by years the its and address. Puerto bringing health decline. ago a has Rico Rico, for medical stimulates public has long help nation, the on potential It Rico’s suggest vulnerabilities the
a down uncapped electricity the that still crisis to is by medical U.S. available the advantage dramatically prices the come been federal also this policymakers pharmaceutical fuel the on decreases industry. that PREPA already foreign provide reinvigorate capacity announced large incentives Puerto of rates. to government that in reliance how PREPA immediate appropriate Oversight operate can recraft and XX has take Also, strength costs could by and Puerto report result important at help This force address in recognize. and XX has tasked May domestic facilities the Almost the Rico significant reduced Board work to oil development. reduce can the to on U.S. is have manufacturers. will If experienced both should there Rico long-term an industry,
by caused the still Our business, affect This be our legacy pace asset and relatively issuance which was XXXX CLO will wind of down segment, affected likely pandemic. new management dislocation capital for funds part raising. in the small the by plans near-term will which is a our liquidated the of market
experience in in However, and value we believe advantage structured Assured finance returns in believe the and this for us will opportunities long-term our long-term medium Guaranty. to of market business to allow the we of take
assets in As in originator of a environment currently both CLO the attractive and manager find well positioned XX large globally, markets. U.S. in CLO top and to CLO the both and the asset-backed current opportunities are a we
currently excellent credit and are downturns. that liquid shown more asset focused We severe have on classes the resiliency
assistance we value. believe level, capital extreme government at some to appropriate the and other the of management excess need strength our we is our sheet, through most continue program. At continue buyback current discount book we and have no the prudently balance experience Unlike to decision of position the shares our given adjusted corporate companies, the for capital look to
assess we share economic our model, level which potentially As current challenge of is to to prove confident the will economic global again our that I this disruptions. and program. adjust withstand always, repurchase continue Assured will designed of weather and resiliency am business the
capital sector, exposure great a more investment of what X% was half financial fact, than years well-performing XXXX, than of to In XX with it better ago, in distribution a or than risk XX-year position and strength into smaller in our including less with structured of far far below we necessary conservative portfolio leverage, finance the liquidity par a financial came insured more our an net ratings. consider and insured sector I less outstanding XXXX low maintain of and what with strongest of history and
structured $XX and paying XXXX, recovered From at $XX that Meanwhile, insurance consolidated higher. XXXX through finance finance through of those paid claims of subsidiaries remained reinsurance loss billion or billion our and payments public mitigation nearly but claims, efforts. resources time, gross half our throughout
Assured years, million net has including X $XXX average earned each of $XXX income. investment Guaranty the income at of adjusted over an million annual Looking last average year, of operating
provides than shortfalls and totaled enough portfolio are billion Our we they liquidity, far and cash and because in due. cover obligated $X.X high-quality when interest investment are to only more principal
for in liquidity report, We bond of the insurance giving macroeconomic was the insured’s I was expected transactions for to industry year. for finance plan potential are wrote impact about and service They on seconded went position. debt by of stress of U.S. our insurers the for fiscal robust markets. said X the significant at the insured as But expected on the our S&P widespread. insured needs pandemic not on not had insurer’s challenges and bond to to issues. can be to adequacy ratings insured when SAP anticipate and April of environment, capital across market to view current some this sectors, volatility migration time released available the we for capital somewhat our insurers have put rest issues disrupted read bond low already company I said, funds Everything many public encourage our this the about the ahead of notwithstanding fault note designated the the Acknowledging pandemic all potential report. you U.S. the the strength
by today’s important call. to conclude reviewing me Let takeaway four from points
pleased First, the market increased quarter with year-over-year we first are disruption. despite which production, our
municipal driving create demand credit and opportunities for resulting products. higher interest more the spreads credit our environment Second, may over widening concerns rates, well with
availability our think the subject the losses claims remain program Third, we year unrecoverable we by this individual carefully manage. likely the at management we we be and insured that at affected have from impact transactions sectors looked most to not do funds economic And company. to our of finally, to liquidity cannot holding expect committed in the pandemic permanent easily capital currently
on have its done For on spotlight unique that I value our company times a and more we the a will to the building That business than the guarantee protect shot exactly three decades, in and even we model. current our is unconditional benefits shareholders provides are and will these. irrevocable strength focused like what and environment of policyholders believe of
I over now the Rob. will the turn call
