PRESS RELEASE
Published on February 17, 2004
EXHIBIT 99.1
Media Contact: Michael Maguire FOR IMMEDIATE RELEASE
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(441) 278-3413
CHANNEL RE RECEIVES "Aaa" FROM MOODY'S AND "AAA" FROM S&P
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Hamilton, Bermuda - February 13, 2004 - RenaissanceRe Holdings Ltd. (NYSE:RNR),
Koch Financial Corporation, Partner Re Ltd. (NYSE:PRE) and MBIA Inc. (NYSE: MBI)
announced today that Channel Reinsurance Ltd, a new financial guarantee
reinsurer based in Bermuda, has been formed and funded. Channel Re has received
financial strength ratings of Aaa from Moody's Investors Service and AAA from
Standard and Poor's Ratings Services.
Channel Re will be led by financial guarantee veterans. Former MBIA managing
director, Michael Maguire, has been named CEO and will be responsible for
operations of the company. MBIA's former chairman and CEO, David H. Elliott has
been named chairman of the new company's Board of Directors.
Channel Re will be capitalized with equity capital of approximately $366
million. The company will assume approximately $27 billion portfolio of in-force
business from MBIA, participate in its reinsurance treaty and provide
facultative reinsurance support. Following the assumption of the in-force
business the Company will have total claims-paying resources of approximately
$700 million.
The ownership of the new company is as follows: Renaissance Re holds the largest
share at 32.7%, Koch Financial, through its affiliate Koch Financial Re, owns
29.9%, Partner Re owns 20.0%, and MBIA owns 17.4%.
Channel Re President and CEO Mike Maguire commented, "The unique structure of
Channel Re's preferential relationship with MBIA and the provision of long-term
stable, highly rated reinsurance to MBIA are expected to produce attractive
long-term returns for the investors. With the Triple-A ratings from both Moody's
and Standard & Poor's, as well as its large capitalization and strong investor
group, Channel Re will provide MBIA with high quality reinsurance and increased
capacity."
RenaissanceRe CEO Jim Stanard commented "We are very pleased to be involved with
such a strong group of investors and believe Channel Re is well positioned to be
a very successful financial guarantee reinsurer. The strategic relationship with
MBIA allows Channel Re to rapidly deploy its capital by the assumption of an
in-force portfolio, and gain the benefit of MBIA's market leading expertise."
Mr. Maguire has spent the last thirteen years at MBIA, where he held positions
of increasing responsibility, most recently as head of the Emerging Markets
Group. Prior to that, he oversaw the company's insured portfolio and market risk
management areas. In 1991, he spearheaded MBIA's international expansion by
opening its first overseas office in Paris and later oversaw Japan, Asia, Latin
America and Global Securitization.
Mr. Elliott has over three decades of experience in the insurance and financial
guarantee industries. Mr. Elliott was chairman of the Municipal Bond Insurance
Association, predecessor of MBIA Insurance Corporation, from 1976 to 1980 and
from 1984 to 1986. With the formation of MBIA in 1986, he was appointed
president and chief operating officer, then served as chairman and CEO from 1992
to 1999. He began his career at The Aetna Casualty and Surety Company in 1969
and quickly rose in the company to become the vice president in charge of the
financial guarantee department. He acted as chairman of the Association of
Financial Guaranty Insurers, the industry's trade organization, from 1988 to
1990.
RenaissanceRe Holdings Ltd. (NYSE:RNR) is a global provider of reinsurance and
insurance. Renaissance's business primarily consists of four components: (1)
catastrophe reinsurance; (2) catastrophe reinsurance written for the account of
joint ventures Top Layer Reinsurance Ltd. and DaVinci Reinsurance Ltd; (3)
specialty reinsurance; and (4) individual risk business which includes primary
insurance and quota share reinsurance.
Koch Financial Corporation is a leading provider of financing solutions for
state and local governments nationwide. In addition to providing direct
tax-exempt lease financing, the company is active in municipal bond investment
and trading, interest rate risk management and fixed income derivatives. Koch
Financial, a Koch Industries, Inc. subsidiary, is based in Scottsdale, Ariz.,
and has regional offices in Chicago, Kansas City and Sacramento. For more
information, visit Koch Financial's web site at www.kochfinancial.com.
Partner Re Ltd. (NYSE:PRE) is a leading international reinsurance group. The
Company provides multi-line reinsurance to insurance companies on a worldwide
basis through its principal offices in Bermuda, Greenwich, Paris and Zurich, its
branch offices in Hong Kong, Singapore and Toronto, and its representative
offices in Seoul, Tokyo and Santiago. Risks reinsured include property and
casualty/motor, catastrophe, life, alternative risk transfer and specialty
lines: agriculture, aviation & space, credit & surety, energy on-shore,
engineering, marine and energy off-shore, specialty casualty and specialty
property.
MBIA Inc., (NYSE: MBI) through its subsidiaries, is a leading financial
guarantor and provider of specialized financial services. MBIA's innovative and
cost-effective products and services meet the credit enhancement, financial and
investment needs of its public and private sector clients, domestically and
internationally. MBIA Inc.'s principal operating subsidiary, MBIA Insurance
Corporation, has a financial strength rating of Triple-A from Moody's Investors
Service, Standard & Poor's Ratings Services, Fitch Ratings, and Rating and
Investment Information, Inc. Please visit MBIA's Web site at
http://www.mbia.com.
Investor Contacts:
RenaissanceRe Holdings Ltd. - Martin J. Merritt (441)-299-7230
Koch Financial Corporation - Mary Beth Jarvis (316)-828-3756
Partner Re Ltd. - Robin Sidders - (441)-294-5216
MBIA Inc. - Michael Ballinger (914) 765-3893, Kevin Brown (914)-765-3648
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