Talks On-Going on New Bermuda Reinsurance Company

October 6, 2003

MBIA Inc., RenaissanceRe Holdings Ltd., Koch Financial Corporation and PartnerRe Ltd. announced that they are in discussions regarding the formation of a new Bermuda-based financial guaranty reinsurance company. The company is anticipated to have capital of approximately $350 million and total claims-paying resources of approximately $700 million.

Upon inception, it is anticipated that the company would assume a portfolio of in-force business from MBIA, would participate in MBIA’s reinsurance treaty and would provide facultative reinsurance support to MBIA.

The formation of the company remains subject to final documentation, closing conditions, regulatory approval and the completion of the process to obtain appropriate financial strength ratings.

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