Controversial Insurance Commissioner Who Restructured Ambac Hired By CUNA Mutual
MADISON, Wis. – CUNA Mutual Group announced it has hired Wisconsin Insurance Commissioner Sean Dilweg, the man responsible for the restructuring of troubled bond insurer Ambac Securities, as head of its mortgage insurance business.
The Ambac deal, which divided the troubled insurer into two separate entities, one with a priority to pay claims on municipal bonds, the other to pay lesser claims on mortgage and other private label asset-backed securities, has created controversy in the bond markets, where entities such as corporate credit unions were left holding billions of dollars on uninsured losses.
The hiring of Dilweg from outgoing Democrat Gov. Jim Doyle’s office comes as new Gov. Scott Walker, a Republican, has appointed Ted Nickel, an executive at Church Mutual Insurance Co., as the state’s new insurance commissioner.
Dilweg also will be responsible for managing CUNA Mutual’s interest in CMG Mortgage Insurance Co. CMG is a joint venture between CUNA Mutual Insurance Society and PMI Mortgage Insurance Co., which provides mortgage insurance through credit unions.
“This new position represents CUNA Mutual’s ongoing commitment to the mortgage insurance business and its important role in the credit union marketplace,” said Jim Power said senior vice president and chief products officer at CUNA Mutual.
“Sean Dilweg is well known and respected within the insurance community and a high-level addition to the CUNA Mutual team,” said Power. “His insights and experience will help us enhance the products and services we provide to credit unions.”
As insurance commissioner since 2007, Dilweg oversaw the regulation of all insurance in the state, including troubled bond insurer Ambac Assurance Corp. Last year, Dilweg’s office took over Ambac’s subprime assets to isolate them from the rest of the insurer’s business as defaults increased policy claims, threatening to deplete the company’s reserves.