The company held discussions with third parties to raise capital for Everspan
Ambac Financial Group (Ambac) has postponed its efforts to introduce Everspan Financial Guarantee (Everspan). The launch was intended to write financial guarantee insurance in the public finance market as a separate, legal entity.
Earlier, Everspan was seeking to raise third party capital in addition to any amounts contributed by Ambac Assurance, in order to achieve financial strength ratings. Ambac also held discussions with third parties to raise capital for Everspan, but none of these discussions resulted in a satisfactory outcome.
Considering this decision, Douglas Renfield-Miller, CEO of Everspan and Executive Vice President of Ambac and Ambac Assurance, declared to retire effective January 1, 2010. Between now and December 31, 2009, Mr. Renfield-Miller will provide support and consultation to the company.
David Wallis, President and CEO, Ambac, said: “Postponing this strategic initiative was a difficult decision. We will closely monitor the capital markets and will revisit this opportunity when the economic environment has stabilized.”
Ambac will, however, continue to focus on its ongoing loss mitigation efforts and other new business initiatives.