MBIA Inc.’s public finance-only insurer MBIA Insurance Corp. of Illinois received approval from Illinois insurance regulators last week to change its name to National Public Finance Guarantee Corp., the company said.
MBIA last month announced the restructuring, in which it split its public finance and structured finance businesses. National has taken on responsibility for the U.S. public finance book, while the company’s other exposures remain at MBIA Insurance Corp.
Those with structured finance guarantees — including a group of hedge funds that has sued MBIA — have criticized the restructuring, saying it unfairly favors public finance policyholders. But MBIA has said it can pay claims from all policyholders as they come due and noted that New York Insurance Department regulators approved the transaction.
