Financial gty. outlook 'very strong.' (guaranty)

National Underwriter Property & Casualty-Risk & Benefits Management, February, 1994 by Otis, L.H.

NEW YORK--Although 1994 may see a decline in new issues of U.S. municipal bonds, the prospects for the financial guaranty industry continue to look "very strong," according to the head of one of the leading insurers of municipal bonds and other financial obligations. "Earnings prospects for financial guarantors should be very favorable in 1994, even if, as we suspect, volume drops," said David H.

Elliott, chairman, president and chief executive officer of Armonk, N.Y.-based MBIA Inc. Mr. Elliott cited the "unique nature of the municipal bond insurance business and the way its premiums and investment income are earned" as the reason why a downturn in new issues would not adversely affect earnings. MBIA guarantees bond interest payments and principal...

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