Bermuda-based Assured Guaranty Ltd. announced that two of its operating subsidiaries have reached an agreement with Financial Security Assurance Inc. (FSA) to renew FSA's reinsurance contracts effective January 1, 2005.

“Assured Guaranty Re (AGR), the company's principal reinsurance subsidiary, will reinsure the majority of the FSA business, which is in accordance with Assured Guaranty's strategic plan to operate its reinsurance business in Bermuda. In 2004, FSA's reinsurance contracts were split about equally between AGR and Assured Guaranty Corp. (AGC), a U.S.-based financial guaranty insurance company,” said the bulletin.

It also noted that “the contracts are subject to final documentation, which is expected to be completed in January 2005, and will take effect as of January 1, 2005. The terms and conditions of the contracts are confidential but are similar to the 2004 contracts. The actual premiums that will be assumed by AGR and AGC will depend on a variety of factors, including market conditions, pricing and the volume and types of business written by FSA in 2005.”

Excel Maritime to sell ship for $5.1m

Shipping company Excel Maritime Carriers Ltd. reported that it agreed to sell its one of its oldest ships, the MV “Petalis,” for $5.1 million to an unnamed buyer.

The Bermuda-based company expects the sale to add about $3.9 million, or 28 cents per share, to its earnings, but did not disclose in a press release when it expects to record the gain.

Excel said the 36,000 ton dry bulk vessel was built in 1975 and acquired by Excel in 1999.

“The agreement for the potential sale of MV ‘Petalis,' together with the recent acquisitions of three Handymax and two Panamax bulk carriers, will result in a reduction of the average age of our fleet from 24.6 years to 18.5 years,” said chief executive Christopher Georgakis in a statement.

Shares of Excel Maritime fell 31 cents, or 1.2 percent to $25.50 in afternoon trading on the American Stock Exchange.