Ambac to Halve Its Reinsurance Exposure to Radian in Early '05

Chang, Helen
November 2004
Bond Buyer;11/17/2004, Vol. 350 Issue 32012, p33
Trade Publication
The article reports on Ambac Assurance Corp.'s decision to reduce about half of its reinsurance exposure to Radian Asset Assurance Inc. The recapture is a result of a provision in the reinsurance contract that provides Ambac the right to recapture previously written business ceded to the reinsurer upon the event of a downgrade of the reinsurer by a major rating agency. The $5.8 billion recapture amount comprises about 8% of Radian's total book of insured credits, and will reduce its pretax income by $11.7 million in 2005.


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