Thursday, August 28th, 2008...9:20 am
MBIA Inc (MBI) sparks the financials
Jump to Comments
MBIA Inc Reinsuring $184B portfolio of investment-grade US public finance credits insured by Financial Guaranty Insurance Company, receiving unearned upfront premiums of about $741M
- The public finance portfolio consists exclusively of investment grade credits, primarily in the general obligation, water and sewer, tax-backed and transportation sectors, and does not contain any credit default swap contracts, below investment grade credits or other credits inconsistent with MBIA’s credit underwriting standards.
- The reinsurance will be provided on a “cut-through” basis, enabling FGIC’s policyholders to receive the benefit of MBIA’s reinsurance by allowing them to present claims directly to MBIA.
Leave a Reply
You must be logged in to post a comment.