The stage is set for MBIA Inc.’s municipal-only insurer, National Public Finance Guarantee, to re-enter the public finance insurance market following the company’s $1.7 billion settlement with Bank of America, announced Monday.

“This is a huge victory for MBIA,” said BTIG analyst Mark Palmer. “A settlement with B of A unlocks for the benefit of shareholders the value of National Public Finance Guarantee Corporation, its municipal bond unit, while also paving the way to that unit returning to the business of writing new insurance policies, which it has not done for over four years. So the settlement effectively gives MBIA and National a new lease on life.”

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