Assured Guaranty Ltd. (AGO) announced Monday that it has reached a settlement with UBS resolving the company's claims related to specified residential mortgage-backed securities or RMBS transactions that were issued, underwritten or sponsored by UBS and insured by Assured Guaranty under financial guaranty insurance policies.
As per the settlement, Assured Guaranty will receive an initial cash payment of $358 million. In addition, UBS will reimburse Assured Guaranty for a portion of all future losses on certain transactions under a collateralized loss-sharing reinsurance agreement to be put in place by the third quarter of 2013.
Assured Guaranty said the settlement resolves all RMBS claims that the company has asserted against UBS, including those that have been in litigation.
Assured Guaranty noted that the financial impact of the settlement and other related information will be described in its first quarter earnings press release, which is scheduled to be released on May 9, 2013.
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