N🟁N

MBIA Announces Purchase of Channel Re

  //business-finance.news-articles.net/content/2010/07/28/mbia-announces-purchase-of-channel-re.html
  Published in Business and Finance on Wednesday, July 28th 2010 at 7:40 GMT by Market Wire
          ^{🞛 This publication is a summary or evaluation of another publication}

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.a™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 aforward-looking statementsa made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words abelieve,a aanticipate,a aproject,a aplan,a aexpect,a aintend,a awill likely result,a alooking forwarda or awill continue,a 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 Companya™s ability to fully implement its Strategic Plan as outlined in the Companya™s most recent Annual Report on Form 10-K; the Companya™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 Companya™s forward-looking statements are discussed under the aRisk Factorsa section in MBIA Inc.a™s most recent Annual Report on Form 10-K, which may be updated or amended in the Companya™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 ].