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Assured Guaranty reaches RMBS settlement with UBS

Assured Guaranty (AGO) announced that it has reached a settlement with UBS (UBS) resolving Assured Guaranty’s claims related to specified residential mortgage-backed securities transactions that were issued, underwritten or sponsored by UBS and insured by Assured Guaranty under financial guaranty insurance policies. Under the settlement, Assured Guaranty will receive an initial cash payment of $358M. Additionally, 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. This settlement resolves all RMBS claims that the company has asserted against UBS, including those that have been in litigation. The financial impact of the settlement and other related information will be described in Assured Guaranty’s first quarter earnings press release, which is scheduled to be released on May 9