ARMONK, N.Y.--(BUSINESS WIRE)--National Public Finance Guarantee Corporation (National), an indirect subsidiary of MBIA Inc. (NYSE: MBI), announced today that William C. Fallon has been named interim chief executive officer. Mr. Fallon is currently president and chief operating officer of MBIA Inc. Mr. Fallon succeeds Thomas G. McLoughlin, who has announced his intention to resign effective July 23rd to accept a position with UBS Financial Services. The change in executive management does not affect the company’s intention to re-engage in the U.S. municipal bond insurance business once the litigation challenging the establishment of National has been resolved.
“Tom McLoughlin’s many contributions to the success of our business over the past 16 years cannot be overstated,” said Mr. Fallon. “He was instrumental in building National’s high quality insured portfolio and positioning the company as the world’s largest U.S. public finance-only guarantor. We wish him continued success in the future.”
Prior to his position as president and chief operating officer of MBIA Inc., Mr. Fallon was head of MBIA Insurance Corp.’s Global Structured Finance Division having joined MBIA in 2005 as a managing director and head of Corporate and Strategic Planning. Before joining MBIA, Mr. Fallon was a partner in the Financial Institutions Group at McKinsey & Company.
Mr. McLoughlin was named chief executive officer of National Public Finance Guarantee Corporation upon its formation in February 2009. From 2005 to 2008, Mr. McLoughlin was head of MBIA's Global Public Finance Division. Previously, he was head of Global Transportation and Infrastructure at MBIA. From 1997 to 2004 Mr. McLoughlin was head of MBIA's Western Region based out of the company's San Francisco office. Prior to joining MBIA in 1994, Mr. McLoughlin served as a vice president with the Government Finance Group of Legg Mason and as an assistant director of the Government Finance Officers Association.
National Public Finance Guarantee Corporation, headquartered in Armonk, New York is the world’s largest U.S. public finance-only financial guarantee insurance company, with offices in New York and San Francisco. The company’s financial strength is highlighted by its $5.6 billion in claims-paying resources, $2.1 billion in statutory capital and strong embedded profitability from its $499.2 billion insured portfolio and $5.3 billion investment portfolio. National has insurance financial strength ratings of A with a developing outlook from Standard and Poor’s and Baa1 with a developing outlook from Moody’s Investors Service. Please visit National’s Web site at www.nationalpfg.com.
This release includes statements that are not historical or current facts and are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “believe,” “anticipate,” “project,” “plan,” “expect,” “intend,” “will likely result,” “looking forward” or “will continue,” and similar expressions identify forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected, including, among other risks, the possibility that MBIA Inc., which is the ultimate parent company of National Public Finance Guarantee Corporation, or National will experience severe losses due to increased deterioration in its insurance portfolios; significant fluctuations in liquidity and asset values with the global credit markets; MBIA Inc.’s or National’s ability to fully implement their Strategic Plans as outlined in MBIA Inc.’s most recent Annual Report on Form 10-K; MBIA Inc.’s or National’s ability to favorably resolve litigation claims against MBIA Inc. or National and legal actions initiated by MBIA Inc. and its subsidiaries in connection with potential insurance loss recoveries; an inability to achieve high, stable credit ratings; and changes in general economic and competitive conditions. These and other factors that could affect financial performance or could cause actual results to differ materially from estimates contained in or underlying the MBIA Inc.’s or National’s forward-looking statements are discussed under the “Risk Factors” section in MBIA Inc.’s most recent Annual Report on Form 10-K, which may be updated or amended in the MBIA Inc.’s subsequent filings with the Securities and Exchange Commission. MBIA Inc. and National caution readers not to place undue reliance on any such forward-looking statements, which speak only to their respective dates. National and MBIA Inc. undertake no obligation to publicly correct or update any forward-looking statement if it later becomes aware that such result is not likely to be achieved.