New York Insurance

The compulsory insurance companies, mistreated by fears of collapse, has received Friday validation of certain Warren Buffet, Berkshire Hathaway’s opened a store to guarantee municipal bonds.

Although analysts move, said of Buffett provides a stamp of approval for the biggest business model that has evolved recently, by decision, shares of Buffett’s last competitor was hammered Thursday morning in trade.

“Each new capital on the territory of the reinsurance would be a net positive,” said Steve Stelmach, an analyst at Friedman, Billings, Ramsey & Co., in an interview.

But if Buffett used only as capital of competition, it is a negative, “said Stelmach.

MBIA has fallen 15.2 per cent to $ 18.88 in early morning trade, while Ambac fell to 12.3 per cent of $ 25.55. At the beginning of the meeting, MBIA Hit a 52-week low of $ 18.43.

The New York Insurance Department of accelerated clearance procedure for insurance Berkshire Hathaway Corp., which is formally approved no later than Monday. Governments Insurance Superintendent, in a statement, said the state do what it could to insurers with regulatory approvals necessary for its operations.

Buffett’s foray into the insurance industry-bond, fell into a tumultuous period for its new competitors. During recent weeks, pensions, insurance companies have come under l ‘, as rating agencies have downgraded or warned any cuts, because they charge by the deterioration in credit markets.

Standard & Poor’s downgraded ACA Capital Holdings Inc. ‘unity insurance bond “CCC” from “A” on December 19, while Fitch Ratings has two of the biggest insurers Bond MBIA and Ambac, credit-watch negative .

The rating agencies are concerned, insurers do not have enough capital to cover any breaches of obligations for borrowing and mortgages, especially Subprime mortgages, customers of bad credit history.

Fitch said the two MBIA and Ambac must find at least 1 billion dollars (0.68 billion €) on the additional capital in late January or demotion of their news “AAA” Ratings, while ACA said in a regulatory filing Thursday, he ceded control of some of their business in a state regulatory authority as it tries to survive, is downgraded to junk status.

“After the new market entrants to offer common options for improving the credit note or new obligations that could offer a better recognition of outstanding service downgraded loans is a very positive development”, Eric Dinallo, the New York Insurance Superintendent, said in a statement. “We were very acquisition of funds to support efforts by the current financial programming and guarantors who have worked to facilitate all necessary administrative authorizations.”

Bond insurer of the rule, “AAA” rating to generate new business models and the unit of Berkshire Hathaway’s could expect to get such an assessment. On 14 December, Fitch reaffirmed its “AAA” rating of Berkshire Hathaway.

If Berkshire Hathaway uses his strength and issues of reinsurance to other insurers’ obligations under its new business, it could help companies such as MBIA and Ambac, said Stelmach. The rating agencies, said one way MBIA and Ambac could throw new capital by sending insurance plans to cover its excellent books of the company.

But if Berkshire Hathaway not include options reinsurance and insurance only questions on the new municipal bonds, the new competition will probably Squeeze Out some smaller insurers, for example, Security Capital Assurance, said Stelmach.

Urban issuer - such as hospitals, schools and districts of sewage systems - often research on the insurance bond, as a means to reduce their borrowing costs and their issues more attractive to investors. Problems delay with ACA, MBIA and Ambac led to speculation that several issuers is simply forgo insurance and pay the rising costs must be on the market without them.

Also on Friday, Berkshire Hathaway agreed to buy NRG NV, the reinsurance unit of ING Group, said about $ 435.7 million (€ 296.6 million) in cash.

The sale of NRG Berkshire Hathaway is expected that the recovery in the first half of 2008. ING expects that a loss of about $ 145.2 million (€ 99 million) during the year 2007 in connection with the sale.