Date: September 2, 2008
For more information contact: Mikaela Reck, Public Information Officer, (608) 267-9336 or mikaela.reck@wisconsin.gov

Media Advisory

Madison, WI—Wisconsin Insurance Commissioner Sean Dilweg today announced he has cleared the way for Ambac Assurance Corp. to reactivate its subsidiary, Connie Lee Insurance Company, to begin offering financial guaranty coverage of municipal bonds and other types of public finance.

"We have been closely working with Ambac and others to address some of the unfulfilled needs in the financial guaranty markets resulting from the sub-prime lending crisis and related uncertainties in the financial sector," said Dilweg. "There is clearly a need for new players in the market. Ambac's strategy to reactivate its subsidiary Connie Lee is one way to provide additional insurance capacity in the municipal bond markets."

Dilweg added that the Connie Lee reactivation transaction was approved today under Wisconsin's insurance regulations.

Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.