ARMONK, N.Y.--(BUSINESS WIRE)--Feb. 19, 2008--MBIA Inc. (NYSE:MBI)
today announced that Joseph (Jay) W. Brown, 59, will return to the
company, resuming his positions as chairman and chief executive
officer, and becomes president of MBIA, effective immediately. Mr.
Brown replaces Gary C. Dunton, 52, who has resigned from MBIA.
Until May 2004, Mr. Brown had served as chairman and chief
executive officer of MBIA Inc., and of its main operating unit, MBIA
Insurance Corporation. Mr. Brown retired as executive chairman of MBIA
Inc. in May 2007. He joined the company as chairman and CEO in January
1999, having been a director since 1986.
"MBIA faces meaningful challenges," said Mr. Brown. "Thanks to
Gary's hard work, we can now build on our enhanced capitalization and
reframe our risk policies and strategies. I see significant
opportunities ahead for MBIA. Our shareholders, policyholders, bond
owners, and employees need us to re-examine our business model to
address changing conditions. I look forward to working with the MBIA
team to frame a new model for the financial guarantee business. In
addition, it is critical that we expedite our communications with the
New York State Insurance Department. I have already spoken with
Superintendent Eric Dinallo. I believe we can look forward to improved
dialog with the Department. Eric and I had a constructive discussion
regarding MBIA's plans and he provided us with helpful guidance. We
expect to rebuild confidence in the company and in the industry."
"The board appreciates Gary Dunton's dedicated service to MBIA,
particularly his hard work in recent months during our successful
capital-raising initiatives. Our enhanced capitalization will enable
MBIA to redesign its business to address conditions in the current
market. We are grateful to Gary for his courageous leadership in this
critical period," said David C. Clapp, lead director of the MBIA
board. "The entire board joins me in thanking Gary for his
contributions and his commitment to MBIA."
"Moving forward, the board is unanimous in its belief that Jay
Brown's deep understanding of MBIA and its challenges make him
singularly qualified to lead the company and differentiate MBIA in the
current environment," said Mr. Clapp. "Jay was present at the
inception of the financial guarantee market and has been part of MBIA
for more than 20 years. He has proven leadership in tough times. We
are delighted that he is returning to the company."
During the past two months, MBIA has increased its claims-paying
resources by as much as $3.2 billion, including $1.1 billion from the
sale of 94.6 million shares of common stock, $500 million from the
sale of 16.1 million shares of common stock to Warburg Pincus, the
sale of $1 billion in surplus notes, and $200 to $500 million (varies
by rating agency) in additional net capital generated from operations
due to maturing insured transactions during the fourth quarter of
2007. MBIA currently has over $17 billion in total claims-paying
resources.
Prior to joining MBIA in 1999, Mr. Brown was chairman and CEO of
Talegen Holdings, Inc., an insurance holding company. While at
Talegen, Mr. Brown successfully led the company's reorganization and
restructuring, working closely with insurance regulators in all
states, including the major state of domicile, New York. Before his
election as chairman and CEO of Talegen, Mr. Brown was president and
CEO of Fireman's Fund Insurance Company. Mr. Brown joined Fireman's
Fund in 1974, where he held numerous executive positions including
chief financial officer at the time of its IPO in 1985 from American
Express and president and COO at the time of its sale to Allianz AG in
1990.
Mr. Brown has a long history of board service in several
industry-leading companies where he has also served on key committees
within those boards. He served on the board of Oxford Health Plans
from 2000 to 2004 and on the board of Fireman Fund Holdings prior to
the sale of its insurance subsidiary to Allianz. He has served on the
SAFECO board since 2001 and was elected non-executive chairman in
January 2006. He steps down from that chairmanship in May 2008.
Through service on each of these boards, Mr. Brown has also developed
experience in serving on key committees including the Executive,
Compensation, Finance, Risk, and Audit Committees.
During Mr. Brown's leadership at MBIA, the company was repeatedly
recognized by Institutional Shareholder Services (ISS), Governance
Metrics International (GMI) and Moody's for the quality of corporate
governance practices adopted by MBIA.
He is a 1974 graduate of Northern Illinois University, where he
majored in Probability and Statistics. He is a fellow of the Casualty
Actuarial Society, as well as a member of the American Academy of
Actuaries and the Chartered Property Casualty Underwriters Society.
This release contains statements about future results that may
constitute "forward-looking statements" within the meaning of the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. Readers are cautioned that these statements are not guarantees
of future performance. There are a variety of factors, many of which
are beyond MBIA's control, which affect the operations, performance,
business strategy and results and could cause its actual results to
differ materially from the expectations and objectives expressed in
any forward-looking statements. Accordingly, readers are cautioned not
to place undue reliance on forward-looking statements which speak only
as of the date they are made. MBIA does not undertake to update
forward-looking statements to reflect the impact of circumstances or
events that arise after the date the forward-looking statements are
made. The reader should, however, consult any further disclosures MBIA
may make in its future filings of its reports on Form 10-K, Form 10-Q
and Form 8-K.
MBIA Inc., through its subsidiaries, is a leading financial
guarantor and provider of specialized financial services. MBIA's
innovative and cost-effective products and services meet the credit
enhancement, financial and investment needs of its public and private
sector clients, domestically and internationally. MBIA Inc.'s
principal operating subsidiary, MBIA Insurance Corporation, has the
following financial strength ratings: Triple-A from Fitch Ratings with
ratings on Rating Watch Negative; Triple-A on CreditWatch with
negative implications from Standard & Poor's Ratings Services; and
Triple-A on review for possible downgrade from Moody's Investors
Service. Please visit MBIA's Web site at www.mbia.com.
CONTACT: MBIA
Media:
Willard Hill, +1-914-765-3860
or
Elizabeth James, +1-914-765-3889
or
Investor Relations:
Greg Diamond, +1-914-765-3190
SOURCE: MBIA Inc.
