|
Our customers are the seven primary monoline financial guaranty insurers. The four largest primary insurers are MBIA Insurance Corporation, or MBIA, Financial Security Assurance Inc., or FSA, Financial Guaranty Insurance Company, or FGIC, and Ambac Assurance Corporation, or Ambac, representing a majority of the financial guaranty industry's capitalization and insurance in force. Other primary insurers include CDC IXIS Financial Guaranty North America, Inc., or CIFG, XL Capital Assurance Inc., or XLCA, and Assured Guaranty Corp., or Assured Guaranty, who compete directly with the four major primary insurers.
We have quota share reinsurance treaties in place with Ambac, FSA, MBIA and XL Financial Assurance Ltd. Under our quota share reinsurance treaties, our customers are required to cede, and we are required to assume, specific obligations underwritten by our customers over a period of time, typically one year. For the years ended December 31, 2005, approximately 89% of our written premiums were derived from MBIA, FSA and Ambac under our treaties. We also have facultative arrangements with each of the seven above-mentioned primary insurers. In facultative transactions we assume, and the primary insurer cedes, part or all of one or more specific financial guarantees on a case-by-case basis. Under our facultative arrangements, we have the ability to accept or reject individual transactions submitted to us by our customers.
|
