A new financial guarantee reinsurer has been formed in Bermuda, lead by former MBIA Inc executives.
Channel Reinsurance Ltd, of which MBIA is an investor, has been capitalised with US$366m, claimed a report.
The new reinsurer has financial strength ratings of Aaa from Moody's and AAA from Standard & Poor's, said the report.
Those companies with a financial stake in Channel Re include RenaissanceRe, with a 32.7% stake; Koch Financial, with a 29.9% stake; and Partner Re, which owns 20% of the new company. Financial guarantee insurer MBIA owns a 17.4% stake in Channel Re.
Former MBIA managing director Michael Maguire has become Channel Re's president and chief executive. The former MBIA chairman and chief executive will become Channel Re's chairman of the board, revealed the report.
Channel Re will assume a business portfolio valued at $27bn from MBIA, concluded the report.
