National Public Finance Guarantee Corp. Becomes Primary Insurer on Previously Reinsured FGIC Policies

  National Public Finance Guarantee Corp. Becomes Primary Insurer on
  Previously Reinsured FGIC Policies

Business Wire

ARMONK, N.Y. -- August 19, 2013

National Public Finance Guarantee Corporation (National), an indirect
subsidiary of MBIA Inc. (NYSE: MBI), today announced that the Plan of
Rehabilitation for Financial Guaranty Insurance Company (“FGIC”) that includes
a Novation Agreement between FGIC and National has become effective as of
August 19, 2013 (the “Effective Date”).

Covered Policies (as defined in the Novation Agreement), that previously
benefited from the reinsurance agreement and second to pay policies entered
into by MBIA Insurance Corporation in 2008 and subsequently assigned to and
reinsured by National in 2009, have been novated to National, which now
becomes the primary insurer under the policies.

“Policyholders are supported by National’s financial strength, substantial
claims-paying resources and established operating platform as FGIC has been
released from all future obligations under the Covered Policies,” said Dan
McManus, National’s General Counsel. “We expect that Moody’s Investors Service
will now apply the higher of National’s rating or the underlying rating to
Covered Policies.”

Copies of the relevant policyholder documentation as well as a complete
listing of National’s insured portfolio, including the FGIC Covered Policies
novated to National, can be found on National’s website at
http://www.nationalpfg.com/html/policyHolderDoc.aspx

Forward-Looking Statements

This release includes statements that are not historical or current facts and
are “forward-looking statements” made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. The words “believe,”
“anticipate,” “project,” “plan,” “expect,” “intend,” “will likely result,”
“looking forward” or “will continue,” and similar expressions identify
forward-looking statements. These statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
historical earnings and those presently anticipated or projected, including,
among other risks, the possibility that MBIA Inc., which is the ultimate
parent company of National Public Finance Guarantee Corporation, or National
will experience severe losses due to increased deterioration in its insurance
portfolios; significant fluctuations in liquidity and asset values with the
global credit markets; MBIA Inc.’s or National’s ability to fully implement
their Strategic Plans as outlined in MBIA Inc.’s most recent Annual Report on
Form 10-K; further changes in the MBIA Inc.’s or National’s credit ratings;
and changes in general economic and competitive conditions. These and other
factors that could affect financial performance or could cause actual results
to differ materially from estimates contained in or underlying the MBIA Inc.’s
or National’s forward-looking statements are discussed under the “Risk
Factors” section in MBIA Inc.’s most recent Annual Report on Form 10-K, which
may be updated or amended in the MBIA Inc.’s subsequent filings with the
Securities and Exchange Commission. MBIA Inc. and National caution readers not
to place undue reliance on any such forward-looking statements, which speak
only to their respective dates. National and MBIA Inc. undertake no obligation
to publicly correct or update any forward-looking statement if it later
becomes aware that such result is not likely to be achieved.

National Public Finance Guarantee Corporation, headquartered in Armonk, New
York is the world’s largest U.S. public finance-only financial guarantee
insurance company, with offices in New York and San Francisco. Please visit
National’s website at www.nationalpfg.com.

Contact:

National Public Finance Guarantee Corporation
Media:
Kevin Brown, +1-914-765-3648
or
Investor Relations:
Nick Sourbis +1-914-765-3385
 
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