MBIA Inc. Reports Increased Losses Amidst Financial Challenges

MBIA Inc ( (MBI) ) has released its Q3 earnings. Here is a breakdown of the information MBIA Inc presented to its investors.

MBIA Inc. is a financial guarantee insurance company operating in the U.S. public finance, corporate, and international structured finance insurance sectors, known for insuring municipal bonds and structured finance obligations. In the latest earnings report, MBIA Inc. reported a significant net loss of $396 million for the first nine months of 2024, compared to a loss of $353 million in the same period of 2023. The company’s total revenues decreased to $5 million from $38 million year-over-year, with net investment income dropping and losses on financial instruments contributing to the decline. MBIA’s financials were impacted by increased loss reserves, particularly from the Puerto Rico Electric Power Authority (PREPA) and the Zohar CDOs. The company faced substantial claims payments due to PREPA’s default on debt service, resulting in $138 million in claims paid by National. Despite these challenges, MBIA is focused on managing its insured portfolio and maximizing recovery efforts from previous claims. Looking ahead, MBIA’s management remains cautious, emphasizing the ongoing risks and uncertainties in their insured portfolios, but they are committed to navigating these challenges to stabilize and improve financial performance.