Group Will Fund New Reinsurance Firm
NU Online News Service, Oct. 6, 3:56 p.m. EDT?MBIA Inc., RenaissanceRe Holdings Ltd., Koch Financial Corp. and PartnerRe Ltd. announced they are discussing formation of a Bermuda-based financial guaranty reinsurance company with $350 million in capital.
MBIA said it is anticipated the proposed new firm would have total claims-paying resources of approximately $700 million.
Upon inception, Armonk, N.Y.-based MBIA said the company would assume a portfolio of MBIA in-force business and that it would participate in MBIA's reinsurance treaty and provide facultative reinsurance support to MBIA.
The formation of the company, MBIA said, remains subject to final documentation, closing conditions, regulatory approval and the completion of the process to obtain appropriate financial strength ratings.
MBIA Inc., through its subsidiaries, is a financial guarantor and provider of specialized financial services. MBIA's products and services are purchased by public and private sector clients, domestically and internationally.
MBIA Inc.'s principal operating subsidiary is MBIA Insurance Corp.
RenaissanceRe Holdings Ltd. in Bermuda is a global provider of reinsurance and insurance. Renaissance's business primarily consists of catastrophe reinsurance, catastrophe reinsurance written for the account of joint ventures Top Layer Reinsurance Ltd. and DaVinci Reinsurance Ltd.
It also includes specialty reinsurance, including such lines as catastrophe-exposed workers' compensation, surety, terrorism, property per risk, aviation and finite reinsurance and individual risk business which includes primary insurance and quota share reinsurance.
PartnerRe Ltd. in Bermuda is an international reinsurance group providing multi-line reinsurance to insurance companies on a worldwide basis through its principal offices in Bermuda, Greenwich, Paris and Zurich, its branch offices in Hong Kong, Singapore and Toronto, and its representative offices in Seoul, Tokyo and Santiago.
Partner Re risks reinsured include property and casualty/motor, catastrophe, life, alternative risk transfer and specialty lines: agriculture, aviation and space, credit and surety, energy on-shore, engineering, marine and energy off-shore, specialty casualty and specialty property.
Koch Financial Corp., based in Scottsdale, Ariz. provides financing solutions for state and local governments nationwide. In addition to providing direct tax-exempt lease financing, the company is active in municipal bond investment and trading, interest rate risk management and fixed income derivatives.
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