During the first quarter of 2008, the credit impairment charges associated with the Company's CDO of ABS portfolio were reclassified as a derivative liability on the Company's balance sheet in order to comply with the recommendations by AFGI
and the SEC and adopted by the Company.
A bond or other security insured by an AFGI
member has the unconditional and irrevocable guarantee that interest and principal will be paid on time and in full in the event of a default.
AFGI represents nine triple-A rated companies that insure or reinsure debt obligations such as municipal bonds and structured corporate obligations.
AFGI members operate solely in the area of financial guaranty insurance and have no exposure resulting from any other line of business.
Jay Brown, Chairman and Chief Executive Officer of MBIA said, "It has become clear that MBIA and the other members of AFGI no longer share a common vision for the industry.
MBIA has been associated with AFGI since the trade association's formation in 1986.
This report was prepared by AFGI
and refers to the financial guaranty industry as a whole.
represents nine triple-A companies that insure or reinsure debt obligations such as municipal bonds and structured corporate obligations.
Budnick, Chairman of AFGI and President of MBIA Insurance Corporation.
By sector, AFGI projects that international asset-backed par insured will total $US48.
Boyle, Chairman of AFGI and Vice Chairman of Ambac Financial Group, Inc.
AFGI members' revenues, consisting primarily of net premiums earned and net investment income, totaled a record $2.