First Quarter 2003
New York, NY (April 30, 2003) - Financial Guaranty Insurance Company (FGIC) today reported that is has continued to build on its strong performance of 2002, as net income rose to $66.9 million in the first quarter of 2003, a 40% increase as compared to $47.8 million in the first quarter of 2002. Net premiums written in the first quarter 2003 were $48.5 million, a 34% increase as compared to $36.1 million in the first quarter of 2002. FGIC's capital base grew by $136.6 million to $2,117.8 million and total policyholders' reserves stood at $2,909.6 million at the end of the first quarter 2003.
"Our performance reflects our continued focus on profitability and exceptional capital strength. The combination of our customer-centric approach, innovation and digitization initiatives enables us to deliver solutions to meet the capital market needs of our customers," said Deborah M. Reif, Chairman, President and CEO.
Municipal Finance - FGIC insured $7.5 billion in the first quarter 2003, representing 14.9% of the total insured volume. Consistent with FGIC's strategy of focusing on deal profitability, gross premiums written in the first quarter 2003 rose to $40.2 million, a 42% increase over $28.4 million in the first quarter 2002.
Structured Finance - Driven by increased issuance volume in prime mortgage-backed securities, FGIC insured $3.6 billion of structured finance securitizations in the first quarter of 2003, a 9% increase over the comparable period in 2002. Reflecting FGIC's low risk, disciplined credit approach and strategic shift to prime mortgage-backed securities, the net par value of the non-municipal portfolio increased 10% to $18.6 billion in the first quarter of 2003 versus $16.8 billion in the comparable period in 2002, driven by increased participation in the prime Home Equity Line of Credit sector.
Financial Guaranty Insurance Company (FGIC) is part of GEI, Inc., a family of companies with $173 billion in assets that provide insurance, investments, mortgage-related services and financial guarantees for commercial, municipal, retail and consumer customers across the globe. GEI, Inc.'s parent is General Electric Company. General Electric Company is a diversified services, technology and manufacturing company with operations worldwide.