Unless the company can reach an agreement with its financial counterparties, Syncora said it cannot remain in business and would likely be taken over by the New York State Insurance Department.

Releasing its third quarter results today, the Hamilton, Bermuda-based guaranty insurer said that its combination of significant ongoing exposure to credit default swaps, failure to reach an agreement with the financial counterparties who are holders of the CDS, and possible intervention by the insurance department, make it a possibility the company will not continue.

“As a result of uncertainties associated with the aforementioned factors affecting our ability to continue as a going concern, management has concluded that there is substantial doubt about our ability to continue as a going concern,” the company said in its Securities and Exchange Commission filing.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.