New York State
Eric R. Dinallo Superintendent of Insurance 25 Beaver Street New York, N.Y. 10004
|ISSUED 10/21/2008||FOR IMMEDIATE RELEASE|
DEPARTMENT LICENSES NEW FINANCIAL GUARANTY INSURER
Superintendent of Insurance Eric R. Dinallo today announced that the New York State Insurance Department has licensed Municipal and Infrastructure Assurance Corporation (MIAC), a new financial guaranty insurer. MIAC will be authorized to write financial guaranty insurance policies for municipal and infrastructure bonds.
“Especially in today’s turbulent credit market, any option that helps municipalities throughout New York and the nation save taxpayers money is welcome. Municipal bonds help build our bridges and our schools. MIAC’s entry helps keep the bond insurance market vibrant and competitive, and that helps our cities and towns lower the cost of issuing bonds,” Dinallo said. “Under Governor Paterson’s leadership, we have worked to bring more than $10 billion in new capital into this market. We expedited MIAC’s application for licensing and we welcome its entry into the bond insurance market.”
MIAC is sponsored by Macquarie Group, a well-capitalized, diversified global financial services firm with expertise in the management and financing of public infrastructure assets globally. Macquarie Group has informed the Department it has entered into a joint sponsorship agreement with Citadel Investment Group, which will co-sponsor MIAC subsequent to its being licensed and contingent on receiving any necessary Department approvals.
This transaction is part of the Insurance Department's continuing implementation of its three point plan for the bond insurance industry:
1. Bring in new capital and new players to ensure a competitive market providing bond insurance to those who need it. To date, the Department has facilitated the addition of $10 billion in capital.
2. Protect the policyholders of the distressed companies by finding solutions, including reinsurance for the municipal bonds.
3. Develop new rules for the bond insurers to prevent similar problems in the future.
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