Financial Guaranty Insurance Company

What Financial Guaranty Insurance Company does

Financial Guaranty Insurance Company (FGIC) is a New York-domiciled monoline financial guaranty insurance company founded in 1983. Historically, FGIC provided credit enhancement on public finance and structured finance securities, guaranteeing the scheduled payments of principal and interest on municipal, asset-backed, and international debt obligations. The company served municipal finance issuers across essential-use sectors (general obligation bonds, water and sewer, transportation, hospital, housing, student loan, electric utilities) as well as structured finance segments including MBS, CDOs, auto and consumer debt, and cross-border infrastructure transactions.

FGIC is not currently engaged in writing new insurance policies or financial guaranties and operates in run-off mode under a court-supervised First Amended Plan of Rehabilitation dated June 4, 2013, following regulatory action by the New York State Department of Financial Services. The company is wholly owned by FGIC Corporation, the holding company parent, and shares historical ownership lineage with a 2003 $2.18 billion acquisition from GE Capital Corporation led by The PMI Group, with participation from Blackstone, The Cypress Group, and CIVC Partners. Following severe RMBS-related losses during the 2008 financial crisis, claims payments were suspended in November 2009, rehabilitation was commenced in June 2012, and FGIC Corporation emerged from Chapter 11 bankruptcy in April 2013.

FGIC generates revenue through runoff premiums on its legacy insured portfolio plus recoveries from RMBS-related litigation (e.g., settlements with Bank of America and UBS) and reinsurance commutation agreements. All cash claims distributions to policyholders are governed by a regulator-approved Cash Payment Percentage (CPP), which stood at 66.00% as of December 2025. The company's headcount of 51-100 is concentrated in portfolio risk management, claims administration, and rehabilitation oversight. A proposed accelerated run-off transaction entered in February 2024 was rejected by NYSDFS in September 2024 and terminated in May 2025, leaving FGIC to manage its residual portfolio under the original Plan of Rehabilitation.

Name

Financial Guaranty Insurance Company

Legal name

Financial Guaranty Insurance Company

Website

https://fgic.com

Company type

Private

Founded year

1983

Operating status

Operating

Headcount range

51–100 employees

Short description

Financial Guaranty Insurance Company is a New York-domiciled monoline financial guaranty insurer operating in run-off mode under a court-supervised Plan of Rehabilitation, managing its legacy insured portfolio of municipal and structured finance securities without writing new policies.

Ownership category

akta.pro rank

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Others

Revenue model

1. Financial Guaranty Insurance Premiums: FGIC generates revenue through premiums from guaranteeing the scheduled payments of principal and interest on municipal and structured finance securities. The company is no longer writing new policies and is in run-off mode.

Go-to-market motion1 record

Core offering

Financial Guaranty Insurance Company is a monoline financial guaranty insurance company that historically issued insurance policies guaranteeing the scheduled payments of principal and interest on municipal and structured finance securities. The company is not currently engaged in writing new insurance policies or financial guaranties and operates in run-off mode under the supervision of the New York State Department of Financial Services, managing its existing insured portfolio, claims payments, and policyholder servicing under the First Amended Plan of Rehabilitation dated June 4, 2013.

Product overview

Financial Guaranty Insurance Company (FGIC) is a monoline financial guaranty insurance company that is not currently engaged in writing new insurance policies or financial guaranties. The company historically provided credit enhancement on public finance and structured finance securities, guaranteeing the scheduled payments of principal and interest on issuers' obligations. FGIC emerged from rehabilitation proceedings on August 19, 2013 and operates under the First Amended Plan of Rehabilitation dated June 4, 2013. The company maintains investor relations, policyholder information services, and statutory-basis financial reporting capabilities.

Differentiator

Problem solved

Functional benefit

Products and services

• Financial Guaranty Insurance - Municipal Finance Insurance policies that guarantee scheduled payments of principal and interest on municipal debt obligations issued by public finance entities, covering general obligation bonds, water and sewer, sales and excise tax-backed obligations, transportation, municipal electric, hospital, housing, student loan and investor-owned utility sectors. Designed for municipal issuers seeking higher credit ratings and better borrowing terms. FGIC no longer writes new policies.
• Financial Guaranty Insurance - Structured Finance / ABS Insurance policies that guarantee scheduled payments on structured finance and asset-backed securities including prime and sub-prime MBS, home equity loans, high loan-to-value loans, commercial MBS, auto loans, consumer debt, student loans, and CDOs. Targeted at structured finance sponsors and issuers. FGIC no longer writes new policies in this category.
• Financial Guaranty Insurance - International / Infrastructure Financial guaranty insurance covering infrastructure and private finance initiatives in the UK and European Union, as well as non-domestic CDO opportunities. Delivered historically through FGIC UK Limited, which was sold in June 2020. FGIC no longer writes new international policies.

Quantifiable outcome

• FGIC insured $7.6 billion in municipal finance in Q3 2003, representing 16.5% of total insured volume
• +2 more outcomes

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators6 records

Recent moves10 records

Others

• Radian Group Inc. Former investor in FGIC through the 2003 acquisition consortium led by PMI Group; now primarily a mortgage insurance and real estate services company with historical ties to FGIC's structured finance business.

Direct peers

• Assured Guaranty: Direct peer financial guaranty insurer that survived the financial crisis and acquired Financial Security Assurance in 2009, now the dominant active monoline financial guarantor serving U.S. municipal and structured finance markets.
• Syncora Holdings Ltd. Direct peer monoline financial guaranty insurer that underwent restructuring following the 2008 financial crisis and is in run-off mode similar to FGIC, with overlapping exposure to municipal and structured finance securities.
• CIFG Services (formerly CDIA, formerly CIFG Assurance North America): Direct peer monoline financial guaranty insurer, originally CIFG Assurance North America, that has undergone multiple restructurings and continues operating in financial guaranty/reinsurance with overlapping municipal and structured finance exposures.
• National Public Finance Guarantee Corp: Direct peer monoline financial guaranty insurer specializing in U.S. public finance, separated from MBIA's structured finance business following the financial crisis, with similar municipal bond insurance focus to FGIC.
• MBIA Inc. Direct peer monoline financial guaranty insurer and parent of National Public Finance Guarantee, with overlapping municipal and structured finance credit enhancement business historically and similar post-crisis restructuring challenges.
• Ambac Assurance Corporation: Direct peer monoline financial guaranty insurer that also underwent formal rehabilitation following the 2008 financial crisis, currently in run-off and operating under a plan of rehabilitation similar to FGIC, with overlapping municipal and structured finance credit enhancement exposures.

Emerging players

• Build America Mutual: Emerging player in financial guaranty insurance founded in 2012 to fill the gap left by the crisis-era failures of monoline insurers like FGIC, focused on U.S. public finance bond insurance.

Broad incumbents

• Berkshire Hathaway Specialty Insurance: Broad incumbent specialty insurer that has re-entered the financial guaranty market as part of its broader portfolio, providing potential competition for any remaining or new monoline financial guaranty business.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat3 records

Key risks6 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Subsidiaries2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Financial Guaranty Insurance Company