913357--3/29/2006--FINANCIAL_SECURITY_ASSURANCE_HOLDINGS

related topics

{loss, insurance, financial}

{loan, real, estate}

{provision, law, control}

{operation, international, foreign}

{capital, credit, financial}

{regulation, change, law}

{tax, income, asset}

{debt, indebtedness, cash}

{stock, price, share}

Loss of FSA s Triple-A ratings would impair its ability to originate new business. The Company s loss reserves may prove inadequate. The Company is exposed to large risks. Increased competition could reduce the Company s new business originations. Decline in prevailing interest rates could reduce demand or premiums for financial guaranty insurance. Increase in prevailing interest rates would result in a decline in the market value of the Company s Investment Portfolio. Marking to market the Company s insured CDS portfolio may subject the Company s reported earnings to extreme volatility. Change in industry accounting practices could impair the Company s reported financial results and impede its ability to do business. Change in applicable law could impede the Company s ability to do business. Change in management personnel or share ownership may have an adverse effect on the Company s business. Rating agency action may impede growth in the Company s FP business. Losses may result from the ineffectiveness of hedges or unanticipated timing of withdrawals of funds in the Company s FP Segment. The Company s ability to make debt service payments on its outstanding debt is subject to its insurance company operations. Downgrade or default of one or more of the Company s reinsurers could reduce the Company s capital adequacy and return on equity. The Company s international operations expose it to less predictable credit and legal risks.

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913357--3/29/2006--FINANCIAL_SECURITY_ASSURANCE_HOLDINGS_LTD