Syncora sells SGI for $392.5m
Syncora reports Q1 loss
Syncora Holdings, a Bermuda holding company whose subsidiaries primarily provide financial guarantee insurance and reinsurance, enjoyed solid growth in the first nine months of 2016 but its profits slipped primarily because of losses on credit default swaps and other swap contracts.
The company’s net premiums earned grew to $52.2 million for the nine months ended September 30, 2016, compared with $47.8 million for the nine months ended September 30, 2015. It said the increase was due to higher premium accelerations from remediation activities and refundings, primarily from the purchase of the remaining insured obligations related to American Roads.
Its net income slipped to $13 million, however, compared with $179 million a year earlier. This was heavily influenced by net (loss) earnings on credit default and other swap contracts, which amounted to $(52.3) million for the nine months ended September 30, 2016, compared with $114.3 million in 2015. It said the decrease was primarily due to non-performance risk and yield curve spread tightening, as well as from collateral spread widening on the underlying reference obligations.
Its operating expenses were $70 million for the nine months ended September 30, 2016, as compared with $62.4 million for the nine months ended September 30, 2015. The increase was primarily due to additional professional fees incurred in connection with the August 12, 2016 restructuring transactions.
The Company also announced that the various Syncora boards will be reduced by a total of five individuals – four at the main holding company and one at an insurance subsidiary board. Four of these reductions will be effective on January 1, 2017, and one will be effective on May 1, 2017.
Effective January 1, 2017, the main Syncora board will comprise: Michael Esposito (chairman), Frederick Arnold, Alan Carr, Susan Comparato (current CEO and management director), Dr. Grant Gibbons (chair, nominating and governance committee), Robert Lichten (chair, compensation committee), Robert Mills, Thomas Norsworthy (current chair, audit committee), Coleman Ross (future chair, audit committee), and Robert White.
Syncora Holdings, Bermuda, Insurance, Reinsurance, Results,