Assured Guaranty and CIFG Assurance North America Resolve Reinsurance Dispute Regarding Xenia Rural Water District Water Revenue Bonds

Assured Guaranty Corp. AGO and CIFG Assurance North America, Inc. announced today that they have reached an agreement to settle their dispute related to CIFG Policy No. 1259 insuring $83.8 million of water revenue bonds issued by Xenia Rural Water District, Iowa in 2006. Under the settlement agreement, the pending litigation between AGC and CIFG related to the Xenia Policy will be dismissed in the ordinary course and the Xenia Policy will be a “Covered Policy” under the Quota Share Reinsurance Agreement dated January 21, 2009 between AGC and CIFG. As a result, AGC will reinsure CIFG for 100% of the Xenia Policy, and CIFG and AGC will seek to novate the Xenia Policy to AGC according to the terms and procedures adopted by CIFG and AGC with respect to the novation of other CIFG policies covered by the Reinsurance Agreement.