Syncora Holdings Ltd. (fka SYCRF)

[InvestorPM]

Potential Game Changer

During the fourth quarter of 2015, SGI completed certain significant commutations and other related transactions that have resulted in a material improvement to SGI's policyholders' surplus position since the filing of its third quarter 2015 statutory financial statements.

Specifically, SGI completed transactions that commuted and reinsured key structured single risk credits with refinancing, foreign exchange and/or index-linked risks, as well as structured RMBS credits. The aggregate effect of these commutations reduced SGI's net par outstanding by $1.7 billion and had a positive policyholders' surplus benefit of $116.5 million, as compared to SGI's third quarter 2015 statutory financial statements.

These transactions also reduced SGI's forecasted gross claim payments related to its "liquidity mismatch" from $503.1 million to $182.1 million as of December 31, 2015. See the "Significant Risks and Uncertainties" footnote in SGI's recently filed Annual Statement for a description of this "liquidity mismatch".