Wachovia Corp. in Charlotte announced the formation and funding of a financial guaranty reinsurance company, BluePoint Re Ltd.
BluePoint Re, which is based in Bermuda, is a financial guaranty reinsurer serving the primary financial guaranty companies and reinsuring investment-grade structured finance and municipal transactions, the company said on Monday.
Recent growth in Wachovia's structured products platform has made the financial guaranty sector an increasingly strategic part of the business, the company said. Wachovia has many of these transactions insured on behalf of issuers or for its own balance sheet.
Wachovia capitalized BluePoint Re with $300 million and will not pay dividends from any retained earnings or capital for at least five years, it said.
