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What is AFGI?
AFGI, which stands for Association of Financial Guaranty Insurers, is an association of financial guaranty insurers in the United States. It was founded in 1971 by companies such as Ambac and MBIA, starting with the guarantee of local government bonds in the United States, and has since grown to include up to 11 members. However, after the 2008 financial crisis, only about five to six remaining members remain. AAA-rated members had assets totaling over $30 billion in the past, but nowadays, only Assured Guaranty maintains a AAA rating.
Contributions of AFGI Members
AFGI has successfully combined financial products and insurance in the United States and Europe and has developed valuable intellectual property, including regulatory accounting classifications, actuarial risk models, and association operating models. However, Asia currently needs large-scale product insurance or financial control companies, and developing this field will be worth investing in.
AFGI Direct Financial Business Categories
International public utility financing includes airport operating revenue, university financing, tax-supported debt, healthcare, real estate, infrastructure financing, municipal water, electricity and gas, non-profit cultural organizations, port authorities, private middle schools, solid waste resource recovery, government bonds, special purpose taxes, student loans, international private financing and public-private partnership projects, toll highways, tunnels, and bridges.
Global structured financing includes asset-backed commercial paper, agricultural loans/crop input loans, aircraft, aircraft parts leasing credit notes (EETCs), aircraft financial risk guarantee projects, aircraft leasing, auto loans/leases, ship loans, mortgage-backed securities/collateralized bond obligations/collateralized loan obligations (CDOs/CBOs/CLOs), credit cards, commercial tenant credit financing, commodity mortgage financing, container leasing, machinery leasing, first lien mortgages, privileged permit loans, mortgage loans/credit, intellectual property (such as film, patents, game titles and so on), bond financing, lottery receivables, industrial manufactured housing loans, medical receivables, structured investment contracts, structured legal payments, trade receivables, and whole company securitization.
Advantages of being a regional broker for AFGI members
Starting with an insurance broker role for AFGI members, a regional broker can benefit from the following:
- Increased Revenue: Being a regional broker for AFGI members can increase revenue through commissions and fees from facilitating insurance and financial transactions. The diverse range of AFGI’s direct financial business projects, such as international public utility financing and global structured financing, can provide ample opportunities for brokers to earn commissions on successful deals.
- Access to Exclusive Markets: AFGI members are established financial guaranty insurers with a strong presence in the United States and Europe. As a regional brokers for AFGI members, brokers can gain access to exclusive markets and niche sectors that may not be easily accessible otherwise. This can open up new business opportunities and broaden the portfolio of services the regional broker offers.
- Knowledge Transfer and Expertise: AFGI has developed valuable intellectual property in regulations, accounting classifications, risk actuarial models, and operational modes. As a regional brokers, brokers can learn from AFGI members’ expertise and experience in financial products and insurance. This knowledge transfer can enhance the regional broker’s capabilities and competitiveness in the market, providing a valuable advantage.
- Reputation and Credibility: Collaborating with reputable and established financial guaranty insurers like AFGI members can enhance the regional broker’s reputation and credibility. Association with well-known companies can build trust among potential clients and partners, leading to increased business opportunities and a stronger market position.
- First-Mover Advantage in Asia: AFGI members have a significant presence in the United States and Europe, but the development of product insurance and financial control companies in Asia is still in its early stages. By becoming a regional broker for AFGI members, brokers can gain a first-mover advantage in Asia, positioning themselves as pioneers in this field and capturing emerging opportunities in the growing Asian market.
In conclusion, being a regional broker for AFGI members can provide numerous benefits, including increased revenue, access to exclusive markets, knowledge transfer and expertise, enhanced reputation and credibility, and a first-mover advantage in Asia. It can be a mutually beneficial partnership that drives the growth and development of AFGI members and the regional broker in the dynamic insurance and financial industry.
