ARMONK, N.Y.--(BUSINESS WIRE)--
MBIA Inc. (NYSE: MBI) today announced that its insurance subsidiary,
MBIA Insurance Corporation (MBIA Corp.), has acquired the 83% of Channel
Re Holdings Ltd. and Channel Reinsurance Ltd. that it did not previously
own for $40 million. Channel Re is a financial guarantee reinsurer
founded in 2004, which assumed business only from MBIA Corp. and its
affiliates. MBIA plans to commute all of its reinsurance with Channel Re
and liquidate the company in the third quarter. The transaction will
result in an increase in MBIA Corp.’s statutory capital and will be
accretive to its liquidity position.
Forward-Looking Statements
This release includes statements that are not historical or current
facts and are “forward-looking statements” made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. The words “believe,” “anticipate,” “project,” “plan,” “expect,”
“intend,” “will likely result,” “looking forward” or “will continue,”
and similar expressions identify forward-looking statements. These
statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from historical earnings and
those presently anticipated or projected, including, among other risks,
the possibility that the Company will experience severe losses due to
increased deterioration in its insurance portfolios; significant
fluctuations in liquidity and asset values with the global credit
markets; the Company’s ability to fully implement its Strategic Plan as
outlined in the Company’s most recent Annual Report on Form 10-K; the
Company’s ability to favorably resolve regulatory proceedings and
litigation claims against the Company and legal actions initiated by the
Company in connection with potential insurance loss recoveries; an
inability to achieve high, stable credit ratings; and changes in general
economic and competitive conditions. These and other factors that could
affect financial performance or could cause actual results to differ
materially from estimates contained in or underlying the Company’s
forward-looking statements are discussed under the “Risk Factors”
section in MBIA Inc.’s most recent Annual Report on Form 10-K, which may
be updated or amended in the Company’s subsequent filings with the
Securities and Exchange Commission. The Company cautions readers not to
place undue reliance on any such forward-looking statements, which speak
only to their respective dates. The Company undertakes no obligation to
publicly correct or update any forward-looking statement if it later
becomes aware that such result is not likely to be achieved.
MBIA Inc., headquartered in Armonk, New York is a holding company whose
subsidiaries provide financial guarantee insurance, fixed-income asset
management, and other specialized financial services. The Company
services its clients around the globe, with offices in New York, Denver,
San Francisco, Paris, London, Madrid, Mexico City and Sydney. Please
visit MBIA's Web site at www.mbia.com.
Source: MBIA Inc.