Bermuda-based bond insurer Assured Guaranty Ltd. yesterday completed its acquisition of Financial Security Assurance Holdings Ltd. (FSA) from Dexia SA, boosting its claims-paying ability to around $12.5 billion.

In a statement yesterday, Assured said it paid around $546 million in cash and some 22.3 million Assured common shares for FSA. Dexia will own approximately 13.9 percent of Assured's issued common shares, as a result of the deal.

Assured now has two distinct and highly capitalised platforms to write direct business — FSA, serving the public finance business, and Assured Guaranty Corp., a diversified bond insurer.

"With this highly accretive acquisition, we have created a compelling value proposition for our customers, shareholders and employees with significant opportunity for growth," said Dominic Frederico, president and chief executive officer of Assured.

"Importantly, these are the two companies that have come through the financial crisis in strong capital positions due to their strict underwriting discipline.

"By continuing to operate them as two separate platforms, we can provide the financial strength, flexibility and product diversity that will help issuers achieve cost-efficient market access and provide investors with increased stability and liquidity.

Assured also announced that Sean McCarthy, president and chief operating officer of FSA Holdings, has taken the same titles at Assured Guaranty US Holdings Inc.

"We have assembled a great team of talented people from both Assured and FSA and are well on our way toward a smooth transition of staff and systems. Our customers can look forward to responsive service starting day one," Mr. McCarthy said.

In addition to its direct business headquarters in New York, the combined companies will have offices in San Francisco, London, Sydney, Tokyo and Bermuda.

Robert Cochran, former chairman and CEO of FSA Holdings, said: "I believe that joining the human and financial resources of these two companies will create a strong leader in the bond insurance industry. Both companies have kept their promises to insured bondholders through this unprecedented financial turmoil.