Until 2007, no monoline insurer
had ever been downgraded or failed to make a payment, according to a 2008 Wells Fargo white paper, Deterioration of Monoline Insurance Companies and the Repercussions for Municipal Bonds.
According to the new norms, an individual can act as an insurance agent for only one life insurer, one general insurer, one health insurer and one monoline insurer
These positive factors are somewhat offset by the areas of adverse reserve development in Stonetrust's previous accident years, its concentrated market profile operating as a monoline insurer
writing mainly in a single state and the execution risk stemming from premium growth in neighbouring states while maintaining pricing adequacy.
A monoline insurer
's business is limited to one line of insurance, in this case mortgage guaranty insurance on prime single-family first mortgages.
had ever experienced a single ratings downgrade.
However, there has been some debate and the most interesting area has been in monolines and the concept of using Takaful to hedge against the possibility of a Sukuk default, in effect an Islamic monoline insurer
. <p>"As the Sukuk market evolves, there could be room for such a product," Nick Frei, Chief Executive of Bahrain-based t'azur told Reuters, while Allianz Takaful's boss, Abdul Rahman Tolefat said they were "in close contact with Islamic investment banks to sell them this idea." <p>Conventional monolines bore the brunt of the credit crunch and many are still reeling from the battering they received.
In a letter dated April 30, the insurer, which was once the second-largest monoline insurer
of bonds, gave no reason for the withdrawal.
22, Members United recorded a $7.5 million profit on a Syncora Guaranty-insured bond that had been previously been written down to a book value of zero after the monoline insurer
had suspended claims payments earlier this year.
The December losses include an OTTI of $87.1 million due to monoline insurer
Ambac's forced restructuring.
The $3.7 billion Corporate One FCU did not record any OTTIs against $35.5 million worth of securities wrapped by monoline insurer
Ambac Assurance Corp., according to its March 2010 financials.
Many of these transactions are wrapped by a financial guaranty purchased from a monoline insurer
. If the underlying transaction was rated aa, then by purchasing a credit wrap the rating on the transaction could rise to aaa because the timely payment of principal and interest is guaranteed by the monoline writer, Brockwell said.