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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 21, 2000
AMBAC FINANCIAL GROUP, INC.
(Exact name of Registrant as specified in its charter)
Delaware 1-10777 13-3621676
(State of incorporation) (Commission file number) (I.R.S.employer
identification no.)
One State Street Plaza 10004
New York, New York (Zip code)
(Address of principal executive offices)
(212) 668-0340
(Registrant's telephone number, including area code)
Page 1 of 6 Pages
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Index to Exhibits on Page 4
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Item 5. Other Events
On March 21, 2000, Ambac Financial Group, Inc. (the "Registrant") issued a
press release announcing that the Registrant and MBIA Inc. had decided to
restructure their international joint venture. Exhibit 99.07 is a copy of such
press release and is incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits.
Exhibit Number Item
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99.07 Press Release announcing that Ambac and
MBIA are restructuring their International
Joint Venture.
Page 2 of 6
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Ambac Financial Group, Inc.
(Registrant)
Dated: March 22, 2000 By: /s/ Frank J. Bivona
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Frank J. Bivona
Executive Vice President and Chief
Financial Officer
Page 3 of 6
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INDEX TO EXHIBITS
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Exhibit
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Number Description of Exhibit
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99.07 Release announcing that Ambac and
MBIA are restructuring their International
Joint Venture.
Page 4 of 6
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EXHIBIT 99.07
For Immediate release
Contacts:
Michael C. Ballinger
(914) 765-3893
[email protected]
Brian S. Moore
(212) 208-3333
[email protected]
News Release
AMBAC AND MBIA ANNOUNCE RESTRUCTURING OF INTERNATIONAL JOINT VENTURE
March 21, 2000 - Ambac Financial Group, Inc. and MBIA Inc. announced today that
they have restructured their international joint marketing and reinsurance
arrangements that have been in place since 1995 with the formation of the MBIA-
AMBAC International joint venture. While MBIA and Ambac will continue having
reciprocal reinsurance and surveillance arrangements for international business,
the companies will market and originate international financial guarantee
insurance independently effective immediately.
MBIA and Ambac will continue to operate as a joint venture in Japan, where the
financial guarantee industry is in the early stages of development. To help
promote the benefits of financial guarantee insurance in Japan, MBIA and Ambac
formed a strategic alliance with two of Japan's largest non-life insurance
companies, Mitsui Marine and Fire Insurance Co. Ltd. and The Yasuda Fire and
Marine Insurance Co. Ltd.
Joseph W. Brown, Jr., MBIA's Chairman and Chief Executive Officer, stated, "Our
international joint venture with Ambac has been successful by all measures, with
a compound annual growth rate of adjusted gross premium exceeding 71% since
1995. However, it has become apparent that the rapid expansion of the
international market has increased the complexity of running a joint venture.
Our agreement to market and originate business separately will permit both
companies to increase operational flexibility and effectiveness globally, and to
reap greater rewards from expected continued growth in the international
markets. Given that both companies have established a sufficient critical mass
of resources and expertise, we concluded that it was now practical to
restructure the joint venture."
Phillip B. Lassiter, Ambac's Chairman and Chief Executive Officer, noted,
"Ambac's and MBIA's commitment to and enthusiasm for the opportunities in the
international arena have never been stronger. We fully expect that both
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companies will continue to enjoy great success in the international arena as our
partnership there enhances each companies' efforts."
Ambac Financial Group, Inc., headquartered in New York City, is a holding
company whose affiliates provide financial guarantees and financial management
services to clients in both the public and private sectors around the world.
Ambac's principal operating subsidiary, Ambac Assurance Corporation, a leading
guarantor of municipal and structured finance obligations, has earned triple-A
ratings, the highest ratings available from Moody's Investors Service, Inc.,
Standard & Poor's Ratings Group, Fitch IBCA, Inc. and Japan Rating and
Investment Information, Inc. Ambac Financial Group, Inc. common stock is listed
on the New York Stock Exchange (ticker symbol ABK).
MBIA Inc., through its subsidiaries, is the world's preeminent financial
guarantor and a leading provider of specialized financial services. MBIA
provides innovative and cost-effective products and services that meet the
credit enhancement, financial and investment needs of its public and private
sector clients, domestically and internationally. MBIA Insurance Corporation has
a claims-paying rating of Triple-A from Moody's Investors Service, Standard &
Poor's Ratings Services, Fitch IBCA, and Japan Rating and Investment
Information, Inc. MBIA Inc. common stock is listed on the New York Stock
Exchange (ticker symbol MBI).
Forward-Looking Statements
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This press release may contain statements about future results that may be
considered "forward-looking statements" under the Private Securities Litigation
Reform Act of 1995. These statements are based on current expectations and the
current economic environment. We caution you that these statements are not
guarantees of future performance. Please refer to documents filed with the SEC
by Ambac and MBIA which detail a number of risks and uncertainties that are
difficult to predict but that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements.
