Joseph L. Sevely has been named treasurer of MBIA Inc. and its main operating subsidiary, MBIA Insurance Corp., the company is expected to announce today. Sevely replaces Neil G. Budnick, who will continue to hold the titles of vice chairman and chief financial officer.
"One of the key elements of our triple-A claims-paying ability rating is our management, and we are always looking for strong additions to our management team," a company spokesman said of the change.
Sevely was most recently managing director of MBIA's corporate finance department, which handles financial planning and analysis, and he will continue to lead that group. As treasurer, he will also focus on MBIA's liquidity relationship with banks, its reinsurance activity, and its cash management function. In addition, Sevely will manage the firm's capital position, a crucial factor in maintaining its ratings.
"While many people in the firm have a role in that, I will certainly be an important component of that as well," Sevely said. He would be involved in any decision to raise capital through the public sale of equity or debt, but noted that currently, the firm is involved in a stock buyback and has a historically strong capital ratio of 155:1.
"The important message for the municipal market is that the firm is continuing to put a lot of its focus on maintaining capital strength," he said. "Municipals remain the largest part of our exposure and will continue to be a part of the business that drives our capital position and the profitability of the firm."
Sevely joined MBIA in January from Bankers Trust, where he was a principal in the transaction development group. He has also worked at Chemical Bank, Merrill Lynch & Co., Pepsico, and the Boston Consulting Group in a variety of finance, consulting, and planning positions.
While at Merrill in the late 1980s, Sevely served as controller of its municipal division, managing the accounting and financial control functions for the group. His responsibilities included making sure underwriting revenues were received and appropriate distributions were made to syndicate members.
Sevely holds a bachelor's degree in mathematics with a concentration in economics from the Massachusetts Institute of Technology and a master's degree in finance from the University of Chicago.
