Syncora Holdings Ltd. Announces Syncora Guarantee Inc. Jefferson County Settlement

   Syncora Holdings Ltd. Announces Syncora Guarantee Inc. Jefferson County

PR Newswire

NEW YORK, Dec. 4, 2013

NEW YORK, Dec. 4, 2013 /PRNewswire/ -- Syncora Holdings Ltd. ("Syncora") today
announced that its wholly owned, New York financial guarantee insurance
subsidiary, Syncora Guarantee Inc. (the "Company"), has settled all
litigationandclaims and that it has commuted all its insurance policies
issued in connection with the Jefferson County, Alabama ("Jefferson County")
Sewer Warrants (the "Warrants") pursuant to the consensual plan of debt
adjustment of Jefferson County (the "Plan"). As provided by the Plan, the
Company also received a partial recovery on claims totaling $246 million,
including claims with respect to certain Warrants it owned as a result of past
payments under its insurance policies. Going forward, the Company will have
no insurance exposure to, and expects to hold no warrants or other debt
instruments issued by, Jefferson County. In connection with the Plan, the
Company was released by all relevantparties from any legal claims against it
in connection with its insurance of the Warrants.

In exchange for the commutation of its insurance policies and partial payment
in respect of the Warrants it owned, the Company released Jefferson County and
JP MorganChase Bank N.A. and JP Morgan Securitiesfrom all legal claims held
by the Company against them in connection with the Warrants.

The Company's losses with respect to Jefferson County are within its
established loss reserves. While the combined effects of the foregoing
positively affect the Company's cash position, it is not expected to mitigate
the potential "liquidity mismatch" between the Company's expected future
medium to long-term claim payments and recoveries relating to such claims and
the other significant risks and uncertainties, as described in the Company's
most recent financial statements.

About Syncora Holdings Ltd.

Syncora Holdings Ltd. (OTC: SYCRF) is a Bermuda-domiciled holding company.
Syncora Guarantee Inc. and Syncora Capital Assurance Inc. are wholly owned
subsidiaries of Syncora Holdings Ltd.

Michael Corbally
1 212 478 3400


This release contains statements about future results, plans and events that
may constitute "forward-looking" statements. 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 performance of invested assets; payment of claims on guaranteed
obligations, including residential mortgage-backed securities ("RMBS"); and
actions that may be required in order to meet anticipated liquidity and
surplus needs; the Company's ability to maintain minimum policyholders'
surplus; higher losses and adverse development of reserves on guaranteed
obligations due to continued deterioration in the credit and mortgage markets;
reduced availability of funds due to the purchase of certain insured bonds and
the potential inability to convert those assets to cash at their carrying
value; reduced availability of funds due to capitalization ofSyncora Capital
Assurance Inc.; reduced availability of funds due to consideration paid in
connection with the master transaction agreement between the Company and
certain financial counterparties to the Company's CDS contracts (the "2009
MTA"); the suspension of writing all new business; uncertainty as to the fair
value of credit default swap ("CDS") contracts and liabilities thereon;
decision by the Company's regulators to take regulatory action such as
rehabilitation or liquidation of the Company at any time;Syncora Capital
Assurance Inc.being required to make mark-to-market termination payments
under its CDS contracts; the Company's ability to continue as a going concern;
bankruptcy events involving counterparties to CDS contracts; the potential
loss of certain control rights under certain financial guarantee insurance;
non-payment of premium and make wholes owed or cancellation of policies;
impact of the non-payment of dividends onSyncora's series A preference shares
on the composition ofSyncora's Board of Directors; uncertainty in portfolio
modeling which makes it difficult to estimate potential paid claims and loss
reserves; potential adverse developments atSyncora Capital Assurance Inc.and
recapture of business to be ceded toSyncora Capital Assurance Inc.under the
2009 MTA; the financial condition ofSyncora Guarantee (U.K.) Limitedand
action by thePrudential Regulation Authority and the Financial Conduct
Authority; requirement of the Company to provideSyncora Guarantee (U.K.)
Limitedwith sufficient funds to maintain its minimum solvency margin;
challenges related to 2009 MTA and any commutations and releases; defaults by
counterparties to reinsurance arrangements; the interconnectedness of risks
that affect the Company's reinsurance and insurance portfolio and financial
guarantee products; termination payments related to less traditional products,
including CDS contracts, possibly in excess of current resources; exposure to
large refinancing risks; nonpayment of premiums by policyholders; changes in
accounting policies or practices or the application thereof; changes in
officers or key employees; further deterioration in general economic
conditions, including as a result of the financial crisis as well as inflation
or deflation, interest rates, foreign currency exchange rates and other
factors and the effects of disruption or economic contraction due to
catastrophic events or terrorist acts; the commencement of new litigation or
investigations or the outcome of current and new litigation or investigations;
legislative or regulatory developments, including changes in tax laws and
regulation of mortgages; losses from fraudulent conduct due to unconditional
and irrevocable nature of financial guarantee insurance; problems with the
transaction servicers in relation to structured finance transactions;
limitations on the availability of net operating loss carry forwards;
uncertainty as to federal income tax treatment of CDS contracts; liquidity
risks including due to timing of claims payments and reduced availability of
funds undertakings with the New York State Department of Financial Services
("NYDFS"); conflicts of interests with significant shareholders ofSyncora;
limitations on the transferability of the common shares ofSyncoraand other
additional factors, risks or uncertainties described inSyncora's historical
filings with theNYDFSor theSecurities and Exchange Commission, including in
its Annual Report on Form 10K for the fiscal year endedDecember 31, 2008, as
amended and inSyncora's,the Company'sand Syncora Capital Assurance Inc.'s
financial statements posted on its website Readers are
cautioned not to place undue reliance on forward-looking statements which
speak only as of the date they are made.Syncoradoes 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.

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