Date: July 28, 2009
For more information contact: Jim Guidry, (608) 264-6239 or jim.guidry@wisconsin.gov

Media Advisory
Wisconsin Insurance Commissioner Statement
Regarding Ambac Assurance Corp.

Madison, WI—Wisconsin Insurance Commissioner Sean Dilweg issued a statement in regard to the news release of Ambac Assurance Corporation (AAC), dated July 27, 2009, with second quarter of 2009 results. AAC announced significant adverse development of anticipated claims on guarantees of collateralized debt obligations of asset-backed securities and on reserves for unpaid losses and loss adjustment expenses under financial guarantees. In addition, AAC disclosed its request for regulatory approval to release a substantial portion of its contingency reserve, which is the subject of continuing review by the Office of the Commissioner of Insurance.

"We are fully aware of developments disclosed in Ambac Assurance Corporation's news release and that the company's surplus position has deteriorated. We continue to monitor the situation closely and have been working with management in their efforts to maintain compliance with regulatory requirements," said Dilweg.

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.