Syncora Holdings Ltd. Announces 2016 Year End GAAP Consolidated Financial Results

HAMILTON, Bermuda, April 4, 2017

Syncora Holdings Ltd.
Summary Results of Consolidated Operations
Years Ended 2016 and 2015
(U.S. dollars in millions, except per share amounts)
						2016		2015 ARIVA.DE Börsen-Geflüster Kurse Syncora Holdings Ltd -   0,00%
Net premiums earned						$                           77.2		$                           73.1
Net investment income						49.1		42.8
Net (loss) on insurance cash flow certificates						(110.6)		(55.6)
Net (loss) earnings on credit default and other swap contracts						(56.4)		139.9
Net recoveries and loss adjustment expenses						179.3		149.3
Operating expenses						93.6		86.1
Net income attributable to controlling interest						$                           32.7		$                         216.7
GAAP earnings per common share						$                        2.18(2)		$                        5.33(2)
Non-GAAP operating income (1)						$                         164.0		$                         119.0
Non-GAAP operating income per common share (1)						$                           2.41		$                           2.11
						As of		As of
						December 31, 2016		December 31, 2015
Adjusted Book Value (1)						$                         484.1		$                         213.4
Common shares outstanding at end of period						86.6		56.3
Adjusted Book Value per common share (1)						$                           5.59		$                           3.79
(1)Non-GAAP operating Income and adjusted book value are non-GAAP financial measures that exclude (or include) amounts that are included in (or excluded from) total Syncora Holdings Ltd. net income and common shareholders' equity, respectively, which are presented in accordance with GAAP. See below for reconciliations between GAAP and Non-GAAP financial measures.
(2)For purposes of our earnings per share calculation, $115.2 million and $83.4 million are included for 2016 and 2015, respectively, which related to the extinguishment of the Series A perpetual non-cumulative preference shares.

Year End Results

Consolidated Statements of Operations

Net premiums earned were $77.2 million for the year ended December 31, 2016, as compared to $73.1 million for the year ended December 31, 2015.  The increase was due to higher premium accelerations from remediation activities and refundings during the year, which was primarily from the purchase of the remaining insured obligations related to American Roads, partially offset by the continued run-off of our insured portfolio.  Total premium accelerations were $43.2 million for the year ended December 31, 2016, as compared to $29.0 million for the year ended December 31, 2015.

Net (loss) on insurance cash flow certificates was $(110.6) million for the year ended December 31, 2016, as compared to $(55.6) million for the year ended December 31, 2015.  As this represents future cash flow receipts from certain insurance claim payments the Company anticipates making on policies that have been remediated, the increase to net loss was primarily driven by higher positive RMBS development.

Net (loss) earnings on credit default and other swap contracts was $(56.4) million for the year ended December 31, 2016, as compared to $139.9 million for the year ended December 31, 2015.  The decrease was primarily due to non-performance risk and yield curve spread tightening, as well as from collateral spread widening on the underlying reference obligations.  

Net recoveries and loss adjustment expenses were $179.3 million for the year ended December 31, 2016, as compared to $149.3 million for the year ended December 31, 2015.  The increase was primarily due to positive RMBS developments, the benefit from the American Roads remediation as discussed above, a $40.0 million settlement of a dispute with an RMBS originator related to an insured RMBS-related transaction, partially offset by incurred losses on Puerto Rico-related exposures.  Net recoveries in 2015 included a significant benefit received from the commutation of the Skyway Concession Company LLC insured obligation. 

Operating expenses were $93.6 million for the year ended December 31, 2016, as compared to $86.1 million for the year ended December 31, 2015.  The increase was primarily due to additional costs in connection with the restructuring transactions, including severance.

Consolidated Balance Sheets

Total assets decreased by $231.3 million from $2,625.7 million as of December 31, 2015 to $2,394.4 million as of December 31, 2016 primarily due to the purchase of the remaining insured obligations relating to American Roads, the $55.0 million surplus note payment and lower receivables on insurance cash flow certificates primarily as a result of positive RMBS developments, partially offset by the receipt of a $40.0 million settlement of a dispute with an RMBS originator as discussed above.

Total liabilities decreased by $257.2 million from $2,110.4 million as of December 31, 2015 to $1,853.2 million as of December 31, 2016.  The decrease primarily resulted from the release of reserves associated with the American Roads remediation purchase as discussed above, lower unpaid losses due to RMBS positive developments, the settlement of a dispute related to our guarantee of certain interest rate swaps issued with respect to the City of Detroit, lower unearned premium revenue from the continued run-off of our insured portfolio and from our ongoing remediation activities. These decreases were partially offset by higher credit default and other swap contract liabilities due to non-performance risk and yield curve spread tightening, as well as from collateral spread widening, higher losses on Puerto Rico-related exposures and the continued accretion of Syncora Guarantee Inc.'s surplus notes.

Syncora Holdings Ltd.
Consolidated Statements of Operations
Years Ended 2016 and 2015
(U.S. dollars in thousands)
					2016		2015
Revenues
	Net premiums earned				$        77,154		$      73,147
	Net investment income				49,080		42,799
	Net realized losses on investments				(19,604)		(3,330)
	Net loss on insurance cash flow certificates				(110,595)		(55,578)
	Toll revenue				27,769		25,298
	Fees and other income				24,375		12,526
	Net (loss) earnings on credit default and other swap contracts				(56,423)		139,891
	Net change in fair value of consolidated variable interest entities				44,528		6,107
				Total revenues	36,284		240,860
Expenses Werbung Mehr Nachrichten zur Syncora Holdings Ltd Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 18.04.24 - PR Newswire BlackRock Sustainable American Income Trust Plc - Transaction in Own Shares 18.04.24 - PR Newswire Capital Gearing Trust Plc - Transaction in Own Shares 18.04.24 - PR Newswire Miton UK Microcap Trust Plc - Director/PDMR Shareholding Auf zur INVEST am 26.+ 27.04.2024    Foto: Landesmesse Stuttgart GmbH - Jetzt kostenloses Ticket sichern! weiterlesen» Anzeige wo-site-teaser-box-16688_site-teaser-box_2024-04-17_09%253A00%253A00_2024-04-22_09%253A00%253A59