FGIC may adjust loss reserve due to IKB lawsuit

NEW YORK, March 26 (Reuters) - FGIC Corp, the parent of bond insurer Financial Guaranty Insurance Co., said on Wednesday that it may adjust its loss reserves due to litigation related to its insurance of mortgage bonds.

"Management is assessing whether the loss reserve related to the commitment agreement needs to be adjusted in the future to reflect the impact of these developments," FGIC said in a statement. "Any such adjustment could be material."

FGIC earlier this month filed a lawsuit accusing the German bank IKB of fraud in providing incomplete information on $1.9 billion of debt that FGIC agreed to insure. (Reporting by Walden Siew; Editing by Tom Hals)