Bond insurer Ambac Assurance Corp. will pay as much as $900 million on claims on its segregated account on Sept. 20.
Ambac set up the account in March 2010 to hold certain troubled liabilities. Because of Ambac Assurance's financial troubles, Ambac has not been paying claims on the segregated account. A Wisconsin court has decided that Ambac should start paying 25% of the claims on its account on Sept. 20. By June 30 of this year, there was $32.1 billion in net par exposure for policies in the account, along with $3.6 billion in claims.