New York State
Insurance Department


ISSUED 4/14/2006

FOR IMMEDIATE RELEASE

MEDIA ADVISORY: APRIL 19 CALL TO FOCUS ON HYBRID SECURITIES

        The New York Insurance Department and the National Association of Insurance Commissioners’ (NAIC) Securities Valuation Office (SVO) announced today that they will be holding a joint conference call on Wednesday, April 19, 2006 at 10:00 a.m. ET to discuss the recent decision by insurance regulators to classify a specific hybrid security as common stock, rather than as a fixed-income investment, for statutory financial filing reporting purposes. Insurers purchase hybrid securities, investments that are structured to have the characteristics of both equity and debt, as part of their investment portfolios.

        The call is an informational one intended to convey background on the issue and to take comments and/or questions from interested parties. It will begin with prepared comments from the New York Insurance Department and the SVO. Scheduled to participate are New York Superintendent of Insurance Howard Mills and Michael Moriarty, director of the Insurance Department’s Capital Markets Bureau. Chris Evangel, managing director, and Robert Carcano, senior counsel & senior vice president, will represent the NAIC Securities Valuation Office. The agenda for the prepared comments is as follows:

  1. Sequence of Events Leading to Classification of the Lehman E-CAP Security
  2. Development of NAIC SVO Debt/Preferred Equity/Common Equity Guidelines
  3. SVO Classification Process
  4. Purpose of NAIC Risk-Based Capital
  5. Plans Going Forward

        Subsequent to the prepared remarks, interested parties will have the opportunity to comment or ask questions related to the issue at hand. Questions on specific securities are beyond the scope of this call. Comments on the above agenda items or on issues that interested parties believe should be considered by the NAIC Valuation of Securities Task Force are welcome.

Call-In Details

        The call will commence at 10:00 a.m. ET and continue until 11:30 a.m. ET. Regulators will need to dial-in by contacting Chorus Call at 800-860-2442 to participate. Please be prepared to give the conference call representative the following information:

Moderator:            Michael Moriarty, New York Insurance Department
Date/Time of Call:  Wednesday, April 19, 2006 at 10:00 a.m. ET
Call Name:             NAIC Moriarty

        Interested parties other than regulators will need to dial 800-967-4633 to register and receive an IP Code in advance of the call. Credit card information will be requested at that time. Once these individuals are registered, they will need to dial 412-858-4600 to join the call.

        The NAIC’s web site (http://www.naic.org/meetings_calendar.htm) has more detailed information on the call-in.


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