|
|
Article: MBIA Announces Closing of Reinsurance Transaction with Financial Guaranty Insurance Company.
- Article from:
- Business Wire
- Article date:
- October 1, 2008
CopyrightCOPYRIGHT 2008 Business Wire. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
ARMONK, N.Y. -- MBIA Inc. (NYSE: MBI) today announced the closing of the previously announced reinsurance transaction between its insurance subsidiary, MBIA Insurance Corporation (MBIA) and Financial Guaranty Insurance Company (FGIC). The reinsured portfolio consists entirely of U.S. public finance bonds (the "public finance portfolio") with total net par outstanding of approximately $166 billion. In connection with the reinsurance, MBIA has received unearned upfront premiums, net of a ceding commission paid to FGIC, of approximately $639 million. As required by the New York State Insurance Department, the funds will be placed in a trust and will be released to MBIA upon ...