BestWeek: Bond Insurers See Tide Turning in Second Quarter

Business Wire, August 29, 2008

OLDWICK, N.J. -- After nearly a year of problems, the U.S. financial guaranty insurance industry finally saw its first casualty of the credit crunch in the second quarter, with the deal placing Maryland-based ACA Financial Guaranty into run off, according to a story in BestWeek U.S./Canada.

Corporate parent ACA Capital Holdings Inc. laid out a plan to cancel all credit default swaps insuring structured credit products in exchange for granting its counterparties voting rights and the ability to share in up to $1 billion in future dividends.

But despite the runoff, some saw the ACA deal--and similar transactions--as a positive sign.

Also in BestWeek U.S./Canada:

Insurers and drilling operators prepare for Hurricane Gustav's possible arrival in the Gulf region with the lessons learned from the impact of hurricanes Katrina and Rita.

Also in BestWeek U.S./Canada:

An annual review of the auditor and actuarial markets show that in 2007 the top firms in the United States and Canada remained dominant according to new A.M. Best research, "2008 Ranking Review--Insurance Auditors & Actuaries of North America."

Also in BestWeek Europe:

As a result of Aon's Benfield deal, Grahame Chilton will be swapping his title as Benfield's chief executive officer for a new one: vice chairman of Aon Group. Read more in BestWeek Europe. Also read more about the acquisition in BestWeek U.S./Canada.

And in both editions of BestWeek:

As of the close of the U.S. market on Thursday, August 28, the AMBG stood at 1036.49, a one-week rise of 3.54%.

BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, please call A.M. Best's customer service department at (908) 439-2200, ext. 5742, or e-mail your request to customer_service@ambest.com.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.