Copyright 2000 Enhance Financial Services Group Inc. All rights reserved. Today, Enhance Re is the leading provider of reinsurance to the monoline primary financial guaranty insurers for both municipal bonds and asset-backed debt obligations. Products Financial Guaranty Reinsurance Financial guaranty insurance provides an unconditional and irrevocable guaranty to the holder of a debt obligation of full and timely payment of principal and interest. The issuer of the obligation pays the premium for financial guaranty insurance either in full at the inception of the policy or in installments on an annual basis.
Premiums are generally non-refundable and are earned over the life of the insured obligation.
This long and relatively predictable earnings pattern is characteristic of the financial guaranty insurance industry and provides a relatively stable source of future revenues and claims-paying ability to financial guaranty insurers and reinsurers. Reinsurance is the commitment by one insurance company, the reinsurer, to reimburse another insurance company, the ceding company, for a specified portion of the insurance risks underwritten by the ceding company.