Subsidiary Syncora Guarantee Inc. Makes $35 Million Claim Payment
HAMILTON, Bermuda, Aug. 4 /PRNewswire-FirstCall/ -- Syncora Holdings Ltd.
(formerly known as Security Capital Assurance Ltd) (NYSE: SCA) ("Syncora
Holdings" or the "Company") commented today on the ongoing financial crisis in
Jefferson County, Alabama (the "County"). Today, Syncora Guarantee Inc.
(formerly known as XL Capital Assurance Inc.), Syncora Holdings' primary
financial guarantee insurance subsidiary, has made a $35 million claim payment
as part of an agreement entered into with the County, pursuant to the terms of
the insurance policies it provides for the benefit of the holders of Jefferson
County's sewer warrants.
"Syncora Guarantee remains committed to honoring the terms of the
financial guarantee it provides to Jefferson County's bondholders," said
Edward Hubbard, Executive Vice President, Syncora Holdings Ltd., and President
of Syncora Guarantee Inc. "The payment we made today supports the efforts to
resolve the County's current crisis in a responsible manner."
In conjunction with the payment, the County and Syncora Guarantee Inc.
entered into an agreement whereby Syncora Guarantee Inc. will refrain until
November 17, 2008 from enforcing its rights to receive immediate reimbursement
from the County for this claim payment, as well as its prior $10.6 million
payment made on June 3, 2008, conditioned upon the County's completion of
certain steps related to a refunding of its existing sewer revenue debt. The
forbearance period could be shortened if the County does not complete such
steps.
"The proposal presented to the County by Citigroup Global Markets
represents a significant step in the right direction, if the County proceeds
with its implementation. We expect the County to work closely with its
financial advisors and creditors and make progress in the months ahead,"
commented Hubbard.
As of June 30, 2008, the Company's exposure to Jefferson County was
$809 million, net of reinsurance. Syncora Guarantee Inc. has not established
any loss reserves at this time in connection with Jefferson County. There is
no assurance that the County will successfully resolve its current situation,
or that Syncora Guarantee Inc. will not have to make additional claims
payments or incur losses in the future related to its Jefferson County Sewer
exposure.
About Syncora Guarantee Inc.
Syncora Guarantee Inc. is a New York-based operating subsidiary of Syncora
Holdings Ltd., a Bermuda-domiciled holding company whose common shares are
listed on the New York Stock Exchange (NYSE: SCA). Effective August 4, 2008,
XL Capital Assurance Inc. changed its name to Syncora Guarantee Inc. For more
information please visit http://www.syncoraguarantee.com .
About Syncora Holdings Ltd
Syncora Holdings Ltd. is a Bermuda-domiciled holding company whose common
shares are listed on the New York Stock Exchange (NYSE: SCA). Effective
August 4, 2008, Security Capital Assurance Ltd changed its name to Syncora
Holdings Ltd. For more information please visit http://www.syncora.com .
Contact:
Investors
Frank Constantinople
+1 441-279-7450
frank.constantinople@scafg.com
Media
Michael Gormley
+1 441-279-7450
michael.gormley@scafg.com
Michele Loguidice
+1 212-333-3810
mloguidice@brunswickgroup.com
FORWARD-LOOKING STATEMENTS
This release contains statements about future results, plans and events
that may constitute "forward-looking" statements within the meaning of the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. You are cautioned that these statements are not guarantees of future
results, plans or events and such statements involve risks and uncertainties
that may cause actual results to differ materially from those set forth in
these statements. Forward-looking statements are subject to a number of risks
and uncertainties, many of which are beyond the Company's control. These
factors include, but are not limited to: the outcome of the efforts to refund
Jefferson County Alabama's outstanding sewer system debt; the outcome of SCA's
negotiations with third parties concerning the restructuring of SCA; the
closing of the transactions contemplated by the Master Transaction Agreement,
Merrill Agreement and other related agreements; the decision by the New York
Insurance Department and the Bermuda Monetary Authority or other regulators to
take regulatory action with respect to SCA's operating subsidiaries at any
time; recent and future rating agency statements and ratings actions; the
outcome of our negotiations with the Financial Counterparties concerning the
commutation, termination, amendment or otherwise restructuring of their credit
default swap contracts; the Company's ability to successfully implement its
strategic plan; higher risk of loss in connection with obligations guaranteed
by the Company due to recent deterioration in the credit markets stemming from
the poor performance of subprime residential mortgage loans; the suspension of
writing substantially all new business and the Company's ability to continue
to operate its business in its historic form; developments in the world's
financial and capital markets that adversely affect the performance of the
Company's investments and its access to such markets; the performance of
invested assets, losses on credit derivatives or changes in the fair value of
credit derivatives; the availability of capital and liquidity; the timing of
claims payments and the receipt of reinsurance recoverables; greater frequency
or severity of claims and loss activity including in excess of the Company's
loss reserves; changes in the Company's reinsurance agreements with certain of
its subsidiaries; the impact of provisions in business arrangements and
agreements triggered by the ratings downgrades; the impact of other triggers
in business arrangements including credit default swap contracts; changes in
regulation, tax laws, legislation or accounting policies or practices; changes
in officers; general economic conditions; changes in the availability, cost or
quality of reinsurance or retrocessions; possible downgrade of the Company's
reinsurers; possible default by the counterparties to the Company's
reinsurance arrangements; the Company's ability to compete; changes that may
occur in Company operations and ownership as the Company matures; and other
additional factors, risks or uncertainties described in Company filings with
the Securities and Exchange Commission, including in the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2007, and also
disclosed from time to time in subsequent reports on Form 10-Q and Form 8-K.
Readers are cautioned not to place undue reliance on forward-looking
statements which speak only as of the date they are made. The Company does not
undertake to update forward-looking statements to reflect the impact of
circumstances or events that arise after the date the forward-looking
statements are made.
SOURCE Syncora Holdings Ltd.
Investors, Frank Constantinople, +1-441-279-7450,
frank.constantinople@scafg.com, or Media, Michael Gormley, +1-441-279-7450,
michael.gormley@scafg.com, both of Syncora Holdings; or Michele Loguidice,
+1-212-333-3810, mloguidice@brunswickgroup.com, of The Brunswick Group, for
Syncora Holdings
