PEMBROKE, Bermuda, Nov. 23 /PRNewswire/ -- ChannelRe Holdings Ltd. (the "Company") announced today the results of its previously announced tender offer to purchase any and all of the outstanding Series B Preference Shares, with a par value of US $0.01 per share and a liquidation preference of US $1,000 per share (the "Preference Shares"), issued by Channel Reinsurance Ltd ("Channel Re"). The tender offer expired at 5:00 p.m., New York City time, on November 20, 2009.

73,990 Preference Shares were validly tendered, not withdrawn and accepted for purchase, as specified pursuant to the terms of the Offer to Purchase.

This press release is for informational purposes only and does not constitute an offer to purchase, the solicitation of an offer to purchase or a solicitation of tenders. Deutsche Bank Securities acted as dealer manager for the tender offer and Global Bondholder Services acted as depositary and information agent for the tender offer. Persons with questions regarding the tender offer should contact Deutsche Bank Securities at (866) 627-0391 (toll-free) or (212) 250-2955 or Global Bondholder Services Corporation at (212) 430-3774 (banks and brokers) or (866) 857-2200 (toll-free).

About Channel Re

Channel Re is a monoline financial guarantee reinsurer. At a recent meeting of the Board, the Board made the determination that Channel Re would not underwrite new business. This was in part a result of MBIA Insurance Corporation ("MBIA") being Channel Re's only ceding company with MBIA having suffered significant losses and impairments, primarily related to guarantees of U.S. mortgage backed securities and collateralized debt obligations containing U.S. mortgage backed securities, some of which were reinsured by Channel Re. While no new business has been written by Channel Re since 2008, significant numbers of transactions previously ceded to Channel Re by MBIA have since suffered losses and impairments. Nonetheless, the existing business continues to generate premium receipts and earned premium.

Forward-Looking Statements

Statements included in this release which are not historical or current facts are "forward-looking" statements. The words "believe," "anticipate," "project," "plan," "expect," "intend," "will likely result," "preliminary" or "will continue" and similar expressions identify forward looking statements.

These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company's and Channel Re's historical earnings and those presently anticipated or projected. Readers should not place undue reliance on any such forward looking statements, which speak only as of their respective dates. The following are some of the factors that could cause actual results to differ materially from estimates contained in or underlying the forward looking statements: the timing of claims payments being faster than anticipated by Channel Re; greater frequency or severity of claims and loss activity than Channel Re's underwriting, reserving or investment practices anticipate based on historical experience or industry data; developments in the world's financial and capital markets which adversely affect the performance of Channel Re's investments and Channel Re's access to such markets; developments in the world's financial and capital markets which adversely affect the expected losses on Channel Re's insured portfolio; developments in the world's financial and capital markets which affect the derivative liability resulting from mark to market losses on Channel Re's GAAP financial statements; changes in domestic or foreign regulations or tax laws applicable to the Company or Channel Re; loss of key personnel; the effects of mergers, acquisitions, amalgamations and divestitures; changes in accounting policies or practices or the application thereof; legislative or regulatory developments; changes in general economic conditions, including inflation, interest rates, foreign currency exchange rates and other factors; and the effects of business disruption or economic contraction due to war, terrorism or other hostilities.

Readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements included in this release are made only as of the date hereof, and we undertake no obligation to publicly update these forward-looking statements to reflect new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events might or might not occur. We cannot assure you that projected results or events will be achieved. We undertake no obligation to publicly correct or update any forward-looking statement if we later become aware that such results are not likely to be achieved.

SOURCE ChannelRe Holdings Ltd.

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