The first quarter of 2024 saw a significant uptick in the bond insurance industry, with municipal bond insurance growing by 24.4% year-over-year. The top two municipal bond insurers wrapped a total of $7.132 billion in deals during this period, compared to $5.735 billion in the first quarter of 2023. Assured Guaranty, a major player in the industry, accounted for $3.782 billion in 152 deals, securing a solid 53% market share in Q1 2024. This was a slight decrease from the 59.5% market share they held in the same period of 2023. Despite the dip in market share percentage, the $3.782 billion in new-issue par Assured insured during Q1 2024 represented a 10.7% increase year-over-year.
Build America Mutual (BAM) also saw growth in the first quarter of 2024, insuring $3.350 billion in 166 deals, capturing a 47% market share. This was an increase from the $2.320 billion insured in 136 deals in the first quarter of the previous year. BAM’s par amount surged by 44.4% year-over-year, outpacing the overall market growth rate. The firm attributes its success to several large transactions that drew strong institutional investor demand.
The growth of Assured and BAM has prompted both firms to make strategic expansions. Assured recently promoted two employees, Marc Livolsi and Evan Boulukos, and hired former Citi employee Paige Litten to strengthen its new-issue and secondary market business. Livolsi and Boulukos, each with over 20 years of experience in the muni market, have already made significant contributions to Assured’s growth. Additionally, Melissa Gribble was hired to expand Assured Guaranty’s presence in the Australian market.
BAM, on the other hand, welcomed John Miller, a seasoned banker and advisor, as a senior advisor focused on growing the use of bond insurance in the primary market for large infrastructure projects. These strategic hires reflect the firms’ commitment to expanding their market reach and solidifying their positions as industry leaders.
Looking ahead, both Assured Guaranty and Build America Mutual are positioned for continued growth and success in the bond insurance industry. As they capitalize on increased market demand and strategically expand their operations, these firms are poised to maintain their market leadership positions and drive further industry growth. With a focus on innovation and strategic partnerships, Assured and BAM are well-equipped to navigate the evolving landscape of the bond insurance market and capitalize on emerging opportunities.
The bond insurance industry’s growth in the first quarter of 2024 underscores the importance of insurance in the municipal bond market. With a steady increase in market share and strategic expansions, firms like Assured Guaranty and Build America Mutual are paving the way for sustained growth and success in the bond insurance sector.