Syncora Holdings Ltd. (fka SYCRF)

[InvestorPM]

The regulators will base their decision on their (very subjective) overall assessment of Syncora's ability to

1) Contintue paying the claims that they are already on the hook for and any future claims that might arise from the business they already have on the books.

2) Can they get access to additional capital should they need it.

They might allow them to write new business but they could potentially put a limit on how much they can write.

There is no way to determine at this point how the regulator will rule... however I feel that Syncora has substantially improved their financial situation since they were put in the dog house.

The rating agencies have no direct impact on whether or not the insurance regulator lets them out of the dog house.

However, the lower the rating is on Syncora then the fewer companies and cities etc will want to use them to insure their bond issues.


Full statutory reviews are only done once a year and they are based on year-end numbers and that is why it was very critical that all of the reserve adjustments were included in the year-end numbers

As i have said before i will be very interested in seeing how quickly management releases the F/S for the publicly traded holding company SHL