S&P Global Ratings has highlighted the very strong competitive position of Assured Guaranty Ltd, the publicly traded holding company based in Bermuda.

The rating agency has also pointed to the company’s excellent capital and earnings, exceptional liquidity, well-defined and diverse underwriting strategy and very strong business risk profile.

The commentary came as Assured Guaranty’s AA financial strength rating was affirmed with a stable outlook.

Through its subsidiaries, Assured Guaranty provides credit enhancement products to the United States and international public finance, infrastructure and structured finance markets, and also provides asset management services.

S&P affirmed the AA financial strength ratings on US bond insurers Assured Guaranty Municipal Corp and Assured Guaranty Corp; UK financial guarantor Assured Guaranty UK Limited and European financial guarantor Assured Guaranty (Europe) SA; and Bermuda insurers Assured Guaranty Re Ltd and Assured Guaranty Re Overseas Ltd.

The outlooks of all the Assured Guaranty entities are stable.

In a press statement, the company quoted S&P: “In 2020, Assured most likely reached an inflection point where the amount of new insured par written is greater than the runoff of the legacy exposure.”

In addition, S&P assessed “Assured's liquidity as exceptional resulting from a conservative investment strategy that we believe adequately supports its liquidity needs.

“The company is sufficiently covered for loss and loss adjustment expenses payable in the next 12 months, and we do not foresee any longer-term material liquidity risks at this time.

“Given Assured's investment strategy, we believe the company maintains sufficient liquidity to cover unexpected stress in the insured portfolio.”

In response to the report, Dominic Frederico, president and CEO of Assured Guaranty, said: “The affirmation of our AA S&P financial strength ratings reflects S&P’s continued recognition of our very strong capital position, excellent capital and earnings, exceptional liquidity, very strong business risk profile and vigilant approach to our global underwriting strategy.

“We concur with S&P’s observation that trends in the US public finance market combined with Assured Guaranty's growing global structured finance business afford strong growth opportunities for our company.”