ACE Ltd.'s New York-based credit enhancement unit ACE Guaranty Re has changed its name to ACE Guaranty Corp.

The renaming follows a restructuring of the company's management and an added focus on direct provision of credit enhancement in addition to the company's reinsurance activities, the company said in a statement.

ACE also announced that Joe Swain, formerly president of ACE Guaranty Re, has been made chief executive officer of AGC.

Howard Albert, formerly executive vice President of ACE Guaranty Re, assumes the role of President of AGC.

"Our name change is the natural result of AGC's increased focus on the direct provision of credit enhancement to structured finance and municipal transactions, along with its reinsurance activities," said Mr. Swain. "More than 15 years of underwriting experience, coupled with superior financial strength, has made AGC a prominent participant in the credit enhancement markets."

"AGC has proven dependable in ensuring creative and timely responses to the market, always keeping what customers want in the forefront of our business model," he said.

AGC has built a strong portfolio of investment grade credits, diversified by geography, tenor and sector, and the company's success in growing its franchise across the credit markets has been based upon its recognised ability to analyse and execute on highly structured, risk remote transactions, the statement said.

AGC is also a leader in providing reinsurance on both a treaty and facultative basis to the AAA rated monoline bond insurance companies.

Credit insurers provide bond issuers with financial guarantees in the event of defaults.

There have been some concerns over the viability of credit insurers because of the high rate of defaults among bond issuers in the last year.

But US credit agencies have reaffirmed credit insurers' high credit ratings, easing the concerns.