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Article: Ambac: No Statutory Capital Figure Yet.(Underwriters & Dealers)
- Article from:
- The Bond Buyer
- Article date:
- November 5, 2009
CopyrightCOPYRIGHT 2009 SourceMedia, Inc. 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)
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Byline: Dan Seymour
Ambac Financial Group Inc. left investors hanging yesterday.
In its report for the third quarter, the New York-based bond insurer left out the one truly important number investors were looking for amid the mishmash of derivatives valuation methods and accounting minutiae - statutory capital.
Statutory capital is potentially the number that determines whether Ambac lives or dies.
The Wisconsin Office of the Commissioner of Insurance requires Ambac to maintain at least $2 million in statutory capital - defined as assets in excess of liabilities, subject to certain statutory adjustments.
If Ambac's statutory ...