Wisconsin Commissioner Creates Council to Advise on Ambac Rehab

Wisconsin Commissioner of Insurance Sean Dilweg announced he has formed an Advisor Council to assist in the process of rehabilitating the Segregated Account of Ambac Assurance Corp. (AAC).

The Council, composed of nine members with experience in all aspects of the insurance industry, will advise the Commissioner and the Special Deputy Commissioner on a variety of issues in connection with the rehabilitation.

A subsidiary of Ambac Financial Group, Inc., AAC is domiciled in Wisconsin and subject to regulatory oversight by Commissioner Dilweg.

On March 24, 2010, the Wisconsin Circuit Court in Lafayette County granted Commissioner Dilweg’s petition to formally take control of the Segregated Account of Ambac Assurance Corp. to find a durable solution for policyholders, creditors and the public. The petition followed Ambac’s move to create a separate legal entity, known as the Segregated Account, where a portion of AAC’s policies were transferred.

The Office of the Commissioner of Insurance is expected to file a Plan of Rehabilitation with the Circuit Court later this year. During this process, Commissioner Dilweg expects to call on and benefit from advice of members of the new Ambac Rehabilitation Advisor Council. The members are:

• Sean Dilweg, commissioner of insurance, State of Wisconsin, rehabilitator and council chair
• Kimberly Shaul, deputy commissioner of insurance, State of Wisconsin, special deputy rehabilitator
• Jeff Post, president and CEO, CUNA Mutual Group
• Steve Callahan, senior consultant and practice development director at Robert E. Nolan Co.
• David Walsh, Foley & Lardner LLP, counsel to the rehabilitator
• Walter Harris, president and CEO of Tanenbaum-Harber Co. Inc.
• Kenneth Gibbs, president of municipal securities, Jefferies Group Inc.
• Thomas Gybel, PNMAC Mortgage Opportunity Fund LLC, board and special advisor to Galileo Weather Risk Management Advisors LLC
• Karl Case, professor of economics, Wellesley College
• Patricia Hopkins, senior executive vice president and chief financial officer, Independent Community Bankers of America
• Chris Evangel, managing director, Securities Valuation Office/NAIC

“The expert and experienced advice these advisors will provide with respect to the rehabilitation of the Segregated Account is crucial to our success,” Dilweg said.

Topics Wisconsin