Restructuring is expected to relieve the company of approximately $6.0 billion in losses and loss reserves
Syncora Holdings (Syncora) has announced that its wholly-owned New York financial guarantee subsidiary, Syncora Guarantee has completed its comprehensive restructuring procedure.
The restructuring would relieve the company of approximately $6.0 billion in losses and loss reserves. The company expects that the successful remediation of its policyholders’ surplus deficit, will allow it to return to compliance with the New York State Insurance Department’s (NYID) minimum policyholders’ surplus requirement of $65 million.
Syncora Guarantee is currently not writing new insurance business and along with its newly formed financial guarantee insurance subsidiary, Syncora Capital Assurance,will not resume writing new insurance business.
The policyholders’ surplus of Syncora Capital Assurance, reflecting its initial capitalisation and its assumption of certain business from Syncora Guarantee, is expected to be in the range of $265 million to $295 million.