Syncora Guarantee Settles JPMorgan Litigation

                Syncora Guarantee Settles JPMorgan Litigation

Announces Completion of Additional Remediation Transactions

PR Newswire

NEW YORK, Feb. 24, 2014

NEW YORK, Feb. 24, 2014 /PRNewswire/ --Syncora Holdings Ltd.("Syncora")
today announced that its wholly owned,New Yorkfinancial guarantee insurance
subsidiary,Syncora Guarantee Inc.(the "Company"), has settled its
RMBS-related claims withJPMorgan and affiliates thereof.

In return for releases of all of the Company's claims againstJPMorgan and
certain affiliates arising from certain insured RMBS transactions that were
the subject of litigation or dispute, the Company is to receive a cash
settlement. In addition, and unrelated to the foregoing, since the posting of
the Company's third quarter 2013 statutory financial statements, the Company
has remediated its exposure to several material financial guarantee insurance
policies.

As a result of multiple substantial remediation transactions and litigation
recoveries, the Company expects, in its 2013 annual statutory financial
statements, to remove its disclosure regarding substantial doubt about the
Company's ability to continue as a going concern over the next twelve months.
Thereafter, and especially beginning from 2017, the Companycontinues to face
a potential "liquidity mismatch" between expected claim payments in the
earlier years, followed inlater years by recoveries of these claims payments.

The combined effect of the remediations and settlement is expected to have a
materially positive effect on the Company's policyholder surplus that will be
reflected in its 2013 annual statutory financial statements, which the Company
expects to issue on or aboutFebruary 28, 2014. Despite these developments
and the change in the going concern assessment, the Company continues to face
significant risks and uncertainties as described in the Company's financial
statements.

AboutSyncora Holdings Ltd.
Syncora Holdings Ltd.(OTC: SYCRF) is aBermuda-domiciled holding company.
Each ofSyncora Guarantee Inc.andSyncora Capital Assurance Inc.are wholly
owned subsidiaries ofSyncora Holdings Ltd.For more information, please
visitwww.syncora.com.

Investor and Media Contact:
Michael Corbally
+1 212-478-3400
michael.corbally@scafg.com

FORWARD-LOOKING STATEMENTS
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, includingresidential mortgage-backed securities;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; 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; 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 master
transaction agreement between the Company and certain financial counterparties
to the Company's CDS contracts (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 the 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; non-payment 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 atwww.syncora.com. 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.

Website: http://www.scafg.com
 
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