Syncora Holdings Ltd. (fka SYCRF)

[InvestorPM]

In the earnings press release it says specifically the $400 is not in the Dec/13 statements ....


but all of this is really just guess work on all our parts. For Example....

I have not taken the surplus notes that were issued back in 2009 into account. They are treated as debt with a par value of $700 million. $144 million was suppose to have been paid back in 2011 but the insurance regulatory said no. The other $556 million is due in 2024.

The $144 million is being carried on the F/S at full value so the shareholders surplus already reflects it. However, the $556 is only being carried at $148 million (due to mark to market accounting of liabilities). Therefore, over time shareholder surplus will be reduced be roughly $300 million as the market value of the $556million surplus note moves up to its Par value of $556 Million.

So my earlier estimated BV of $600 for SHL's shareholder surplus should probably be cut in half to $300 million or $4.75 BVPS