Guaranty insurer Ambac Financial Group Inc. said it will stop paying a regular quarterly dividend in a move the company said would save $11.5 million a year.
The New York-based insurer made the announcement Wednesday, saying it would eliminate the payments that were recently set at 1 cent per share. Ambac said it made the move “to support the company's goal of preserving parent company liquidity.”
Ambac has struggled in the face of the growing economic crisis to reduce its collateralized debt exposure. The company has terminated a number of obligations to cut its exposure, but rating agencies have been unfazed by the moves, downgrading the carrier on several occasions.
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
Already have an account? Sign In Now
© 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.