PURCHASE, N.Y.--(BUSINESS WIRE)--
MBIA Inc. (NYSE:MBI) (the Company) today reported a consolidated GAAP
net loss of $98 million, or $(1.12) per diluted common share, for the
first quarter of 2018 compared to a consolidated GAAP net loss of $72
million, or $(0.55) per diluted common share, for the first quarter of
2017. Losses before income taxes for the first quarter of 2018 declined
to $(96) million versus $(120) million for the first quarter of 2017.
The Company recorded income taxes of $2 million for the first quarter of
2018 compared to a tax benefit of $48 million for the first quarter of
2017. The adverse variance of income tax provision (benefit) primarily
reflects the valuation allowance against the Company’s net deferred tax
asset for the first quarter of 2018 and the absence of a valuation
allowance for the first quarter of 2017.
Book value per share was $13.97 as of March 31, 2018 compared with
$15.44 as of December 31, 2017. The decrease in book value per share
since year-end 2017 was due to the consolidated net loss for the
quarter, partially offset by the reduction of shares outstanding by 2
million, primarily from the repurchase of MBIA common shares during the
first quarter of 2018.
The Company also reported an Adjusted Net Loss (a non-GAAP measure
defined in the attached Explanation of Non-GAAP Financial Measures) of
$61 million or $(0.69) per diluted share for the first quarter of 2018
compared with Adjusted Net Income of $9 million or $0.07 per diluted
share for the first quarter of 2017. The negative comparison was
primarily due to increased losses and loss adjustment expenses at
National, resulting largely from certain of its Puerto Rico exposures.
Adjusted Book Value (ABV) per share (a non-GAAP measure defined in the
attached Explanation of Non-GAAP Financial Measures) was $28.60 as of
March 31, 2018 compared with $29.32 as of December 31, 2017. The
decrease in ABV per share since year-end 2017 was primarily due to
additional loss and loss adjustment expense reserves at National,
partially offset by the 2 million reduction of shares outstanding
resulting primarily from the repurchase of MBIA common shares during the
first quarter of 2018.
Adjusted Net Income (Loss) and ABV per share provide investors with
views of the Company’s operating results that management uses in
measuring financial performance. Reconciliations of ABV per share to
book value per share, and Adjusted Net Income (Loss) to net income,
calculated in accordance with GAAP, are attached.
Statement from Company Representative
Bill Fallon, MBIA’s Chief Executive Officer noted, “Puerto Rico
continues to prominently influence our day-to-day activities and our
financial results. Additional losses and loss adjustment expenses
related to Puerto Rico credits insured by National were the largest
contributor to our Adjusted Net Loss and reduction to Adjusted Book
Value for the quarter. We continue to prepare for the eventual
resolution of our insured Puerto Rico credits with intentions to
minimize our net losses and pursue maximum recoveries of our paid
insurance claims.”
MBIA Inc.
As of March 31, 2018, MBIA Inc.’s liquidity position totaled $419
million, unchanged from December 31, 2017, consisting primarily of cash
and cash equivalents and other highly liquid invested assets. During the
first quarter of 2018, $18 million of National’s 2015 tax payment was
released to MBIA Inc. from the tax escrow facility and the Company also
benefitted from lower net collateral posting requirements related to
swaps contracts and the assets backing the outstanding investment
agreements. MBIA Inc. also repurchased the $20 million of MBIA Global
Funding LLC medium-term notes maturing in 2018 during the first quarter
of 2018.
During the first quarter of 2018, National purchased 2.0 million of MBIA
Inc. common shares at an average price of $7.25 per share. As of May 3,
2018, there was $236 million remaining under the Company’s $250 million
share repurchase authorization that was approved on November 3, 2017 and
90.5 million of the Company’s common shares were outstanding. Subsequent
to quarter-end, MBIA Inc. issued 1.2 million shares of MBIA common
shares in accordance with the net settlement exercise provisions of
warrants related to 9.9 million of MBIA common shares.
National Public Guarantee Financial Corporation
National had statutory capital of $2.7 billion and claims-paying
resources totaling $4.1 billion as of March 31, 2018. National’s total
fixed income investments plus cash and cash equivalents had a
book/adjusted carrying value of $3.4 billion as of March 31, 2018.
National’s insured portfolio declined by $5 billion during the quarter,
ending the quarter with $67 billion of gross par outstanding. National
ended the quarter with a leverage ratio of gross par to statutory
capital of 24 to 1, down from 26 to 1 as of year-end 2017.
MBIA Insurance Corporation
The statutory capital of MBIA Insurance Corporation as of March 31, 2018
was $455 million and claims-paying resources totaled $1.5 billion. As of
March 31, 2018, MBIA Insurance Corporation’s liquidity position
(excluding resources from its subsidiary and branch) totaled $130
million consisting primarily of cash and cash equivalents and liquid
short-term invested assets.
Conference Call
The Company will host a webcast and conference call for investors
tomorrow, Thursday, May 10, 2018 at 8:00 AM (ET) to discuss its first
quarter 2018 financial results and other matters relating to the
Company. The webcast and conference call will consist of brief remarks
followed by a question and answer session.
The dial-in number for the call is (877) 694-4769 in the U.S. and (404)
665-9935 from outside the U.S. The conference call code is 3195318. A
live webcast of the conference call will also be accessible on www.mbia.com.
A replay of the conference call will become available approximately two
hours after the completion of the call and will remain available until
11:59 p.m. on May 24 by dialing (800) 585-8367 in the U.S. or (404)
537-3406 from outside the U.S. The code for the replay of the call is
3195318. In addition, a recorded replay of the call will become
available on the Company's website approximately two hours after the
completion of the call.
Forward-Looking Statements
This release includes statements that are not historical or current
facts and are “forward-looking statements” made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. The words “believe,, “anticipate,” “project,” “plan,” “expect,”
“estimate,” “intend,” “will,” “will likely result,” “looking forward,”
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
historical earnings and those presently anticipated or projected,
including, among other factors, the possibility that MBIA Inc. or
National will experience increased credit losses or impairments on
public finance obligations issued by state, local and territorial
governments and finance authorities that are experiencing unprecedented
fiscal stress; the possibility that loss reserve estimates are not
adequate to cover potential claims; MBIA Inc.’s or National’s ability to
fully implement their strategic plan; and changes in general economic
and competitive conditions. These and other factors that could affect
financial performance or could cause actual results to differ materially
from estimates contained in or underlying MBIA Inc.’s or National’s
forward-looking statements are discussed under the “Risk Factors”
section in MBIA Inc.’s most recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q, which may be updated or amended in MBIA
Inc.’s subsequent filings with the Securities and Exchange Commission.
MBIA Inc. and National caution readers not to place undue reliance on
any such forward-looking statements, which speak only to their
respective dates. National and MBIA Inc. undertake no obligation to
publicly correct or update any forward-looking statement if it later
becomes aware that such result is not likely to be achieved.
MBIA Inc., headquartered in Purchase, New York is a holding company
whose subsidiaries provide financial guarantee insurance for the public
and structured finance markets. Please visit MBIA's website at www.mbia.com.
Explanation of Non-GAAP Financial Measures
The following are explanations of why the Company believes that the
non-GAAP financial measures used in this press release, which serve to
supplement GAAP information, are meaningful to investors.
Adjusted Book Value: Adjusted Book Value (ABV), a non-GAAP
measure, is used by the Company to supplement its analysis of GAAP book
value. The Company uses ABV as a measure of fundamental value and
considers the change in ABV an important measure of periodic financial
performance. ABV adjusts GAAP book value by removing the GAAP book value
amounts for items that are not expected to impact shareholder value and
to add in the impact of certain items which the Company believes will be
realized in GAAP book value in future periods. The Company has limited
such adjustments to those items that it deems to be important to
fundamental value and performance and which the likelihood and amount
can be reasonably estimated. ABV assumes no new business activity. The
Company has presented ABV to allow investors and analysts to evaluate
the Company using the same measure that MBIA’s management regularly uses
to measure financial performance. ABV is not a substitute for and should
not be viewed in isolation from GAAP book value.
ABV per share represents that amount of ABV allocated to each common
share outstanding at the measurement date.
Claims-paying Resources (CPR): CPR is a key measure of the
resources available to National and MBIA Corp. to pay claims under their
respective insurance policies. CPR consists of total financial resources
and reserves calculated on a statutory basis. CPR has been a common
measure used by financial guarantee insurance companies to report and
compare resources and continues to be used by MBIA’s management to
evaluate changes in such resources. The Company has provided CPR to
allow investors and analysts to evaluate National and MBIA Corp. using
the same measure that MBIA’s management uses to evaluate their resources
to pay claims under their respective insurance policies. There is no
directly comparable GAAP measure.
Adjusted Net Income (Loss): Adjusted Net Income (Loss) is a
useful measurement of performance because it measures income from the
Company excluding its international and structured finance insurance
segment, which is not part of our ongoing business strategy. Also
excluded from Adjusted Net Income (Loss) are investment portfolio
realized gains and losses, gains and losses on financial instruments at
fair value and foreign exchange, and realized gains and losses on
extinguishment of debt. Adjusted Net Income (Loss) eliminates the tax
provision (benefit) as a result of the establishment of a full valuation
allowance against the Company’s net deferred tax asset in 2017. Trends
in the underlying profitability of the Company’s businesses can be more
clearly identified without the fluctuating effects of the excluded items
previously noted. Adjusted Net Income (Loss) as defined by the Company
does not include all revenues and expenses required by GAAP. Adjusted
Net Income (Loss) is not a substitute for and should not be viewed in
isolation from GAAP net income.
Adjusted Net Income (Loss) per share represents that amount of Adjusted
Net Income (Loss) allocated to each fully diluted weighted-average
common share outstanding for the measurement period.
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|
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MBIA INC. AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS (Unaudited)
|
|
(In millions except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2018
|
|
|
December 31, 2017
|
|
Assets
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
Fixed-maturity securities held as available-for-sale, at fair value
(amortized cost $3,812 and $3,728)
|
|
$
|
3,757
|
|
|
$
|
3,712
|
|
Investments carried at fair value
|
|
|
228
|
|
|
|
200
|
|
Investments pledged as collateral, at fair value (amortized cost $34
and $147)
|
|
|
32
|
|
|
|
148
|
|
Short-term investments, at fair value (amortized cost $448 and $589)
|
|
|
448
|
|
|
|
589
|
|
Other investments (includes investments at fair value of $- and $4)
|
|
|
1
|
|
|
|
6
|
|
Total investments
|
|
|
4,466
|
|
|
|
4,655
|
|
Cash and cash equivalents
|
|
|
120
|
|
|
|
122
|
|
Premiums receivable
|
|
|
368
|
|
|
|
369
|
|
Deferred acquisition costs
|
|
|
92
|
|
|
|
95
|
|
Insurance loss recoverable
|
|
|
530
|
|
|
|
511
|
|
Other assets
|
|
|
134
|
|
|
|
128
|
|
Assets of consolidated variable interest entities:
|
|
|
|
|
|
|
|
|
Cash
|
|
|
21
|
|
|
|
24
|
|
Investments held-to-maturity, at amortized cost (fair value $901 and
$916)
|
|
|
890
|
|
|
|
890
|
|
Investments carried at fair value
|
|
|
176
|
|
|
|
182
|
|
Loans receivable at fair value
|
|
|
1,662
|
|
|
|
1,679
|
|
Loan repurchase commitments
|
|
|
407
|
|
|
|
407
|
|
Other assets
|
|
|
27
|
|
|
|
33
|
|
Total assets
|
|
$
|
8,893
|
|
|
$
|
9,095
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
Unearned premium revenue
|
|
$
|
712
|
|
|
$
|
752
|
|
Loss and loss adjustment expense reserves
|
|
|
1,006
|
|
|
|
979
|
|
Long-term debt
|
|
|
2,154
|
|
|
|
2,121
|
|
Medium-term notes (includes financial instruments carried at fair
value of $146 and $115)
|
|
|
790
|
|
|
|
765
|
|
Investment agreements
|
|
|
330
|
|
|
|
337
|
|
Derivative liabilities
|
|
|
219
|
|
|
|
262
|
|
Other liabilities
|
|
|
162
|
|
|
|
165
|
|
Liabilities of consolidated variable interest entities:
|
|
|
|
|
|
|
|
|
Variable interest entity notes (includes financial instruments
carried at fair value of $1,031
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|
|
|
|
|
|
|
|
and $1,069)
|
|
|
2,260
|
|
|
|
2,289
|
|
Total liabilities
|
|
|
7,633
|
|
|
|
7,670
|
|
Equity:
|
|
|
|
|
|
|
|
|
Preferred stock, par value $1 per share; authorized
shares--10,000,000; issued and outstanding--none
|
|
|
-
|
|
|
|
-
|
|
Common stock, par value $1 per share; authorized
shares--400,000,000; issued shares--283,569,254
|
|
|
|
|
|
|
|
|
and 283,717,973
|
|
|
284
|
|
|
|
284
|
|
Additional paid-in capital
|
|
|
3,174
|
|
|
|
3,171
|
|
Retained earnings
|
|
|
1,164
|
|
|
|
1,095
|
|
Accumulated other comprehensive income (loss), net of tax of $7 and
$16
|
|
|
(241)
|
|
|
|
(19)
|
|
Treasury stock, at cost--194,243,689 and 192,233,526 shares
|
|
|
(3,133)
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|
|
|
(3,118)
|
|
Total shareholders' equity of MBIA Inc.
|
|
|
1,248
|
|
|
|
1,413
|
|
Preferred stock of subsidiary
|
|
|
12
|
|
|
|
12
|
|
Total equity
|
|
|
1,260
|
|
|
|
1,425
|
|
Total liabilities and equity
|
|
$
|
8,893
|
|
|
$
|
9,095
|
|
|
|
|
|
|
|
|
|
|
|
|
MBIA INC. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
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|
(In millions except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
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|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Premiums earned:
|
|
|
|
|
|
|
|
|
Scheduled premiums earned
|
|
$
|
23
|
|
|
$
|
28
|
|
Refunding premiums earned
|
|
|
17
|
|
|
|
21
|
|
Premiums earned (net of ceded premiums of $1 and $1)
|
|
|
40
|
|
|
|
49
|
|
Net investment income
|
|
|
31
|
|
|
|
52
|
|
Fees and reimbursements
|
|
|
6
|
|
|
|
2
|
|
Change in fair value of insured derivatives:
|
|
|
|
|
|
|
|
|
Realized gains (losses) and other settlements on insured derivatives
|
|
|
(19)
|
|
|
|
(31)
|
|
Unrealized gains (losses) on insured derivatives
|
|
|
14
|
|
|
|
(22)
|
|
Net change in fair value of insured derivatives
|
|
|
(5)
|
|
|
|
(53)
|
|
Net gains (losses) on financial instruments at fair value and
foreign exchange
|
|
|
(9)
|
|
|
|
17
|
|
Net investment losses related to other-than-temporary impairments:
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|
|
|
|
|
|
|
|
Investment losses related to other-than-temporary impairments
|
|
|
-
|
|
|
|
-
|
|
Other-than-temporary impairments recognized in accumulated
|
|
|
|
|
|
|
|
|
other comprehensive income (loss)
|
|
|
(1)
|
|
|
|
(2)
|
|
Net investment losses related to other-than-temporary impairments
|
|
|
(1)
|
|
|
|
(2)
|
|
Net gains (losses) on extinguishment of debt
|
|
|
-
|
|
|
|
8
|
|
Other net realized gains (losses)
|
|
|
(1)
|
|
|
|
3
|
|
Revenues of consolidated variable interest entities:
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
8
|
|
|
|
6
|
|
Net gains (losses) on financial instruments at fair value and
foreign exchange
|
|
|
4
|
|
|
|
(33)
|
|
Other net realized gains (losses)
|
|
|
-
|
|
|
|
28
|
|
Total revenues
|
|
|
73
|
|
|
|
77
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Losses and loss adjustment
|
|
|
72
|
|
|
|
94
|
|
Amortization of deferred acquisition costs
|
|
|
4
|
|
|
|
7
|
|
Operating
|
|
|
20
|
|
|
|
29
|
|
Interest
|
|
|
51
|
|
|
|
48
|
|
Expenses of consolidated variable interest entities:
|
|
|
|
|
|
|
|
|
Operating
|
|
|
2
|
|
|
|
2
|
|
Interest
|
|
|
20
|
|
|
|
17
|
|
Total expenses
|
|
|
169
|
|
|
|
197
|
|
Income (loss) before income taxes
|
|
|
(96)
|
|
|
|
(120)
|
|
Provision (benefit) for income taxes
|
|
|
2
|
|
|
|
(48)
|
|
Net income (loss)
|
|
$
|
(98)
|
|
|
$
|
(72)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(1.12)
|
|
|
$
|
(0.55)
|
|
Diluted
|
|
$
|
(1.12)
|
|
|
$
|
(0.55)
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
88,131,373
|
|
|
|
131,402,465
|
|
Diluted
|
|
|
88,131,373
|
|
|
|
131,402,465
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED NET INCOME (LOSS) RECONCILIATION(1)
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2018
|
|
|
|
2017
|
|
|
Net income (loss)
|
|
$
|
(98
|
)
|
|
|
|
$
|
(72
|
)
|
|
|
Less: adjusted net income (loss) adjustments:
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes of the international and structured
|
|
|
|
|
|
|
|
|
|
|
finance insurance segment and eliminations
|
|
|
(36
|
)
|
|
|
|
|
(165
|
)
|
|
|
Adjustments to income before income taxes of the U.S. public finance
|
|
|
|
|
|
|
|
|
|
|
insurance and corporate segments:
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market gains (losses) on financial instruments(2)
|
|
|
22
|
|
|
|
|
|
32
|
|
|
|
Foreign exchange gains (losses)(2)
|
|
|
(13
|
)
|
|
|
|
|
(7
|
)
|
|
|
Net gains (losses) on sales of investments(2)
|
|
|
(5
|
)
|
|
|
|
|
2
|
|
|
|
Net investment losses related to OTTI
|
|
|
(1
|
)
|
|
|
|
|
(2
|
)
|
|
|
Net gains (losses) on extinguishment of debt
|
|
|
-
|
|
|
|
|
|
8
|
|
|
|
Other net realized gains (losses)
|
|
|
(2
|
)
|
|
|
|
|
(1
|
)
|
|
|
Adjusted net income adjustment to the (provision) benefit for
|
|
|
|
|
|
|
|
|
|
|
income tax(3)
|
|
|
(2
|
)
|
|
|
|
|
52
|
|
|
|
Adjusted net income (loss)
|
|
$
|
(61
|
)
|
|
|
|
$
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) per diluted common share
|
|
|
(0.69
|
)
|
(4)
|
|
|
|
0.07
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - A non-GAAP measure; please see Explanation of non-GAAP Financial
Measures.
(2) - Reported within “Net gains (losses) on financial
instruments at fair value and foreign exchange” on the Company’s
consolidated statements of operations.
(3) - Reported within
“Provision (benefit) for income taxes” on the Company’s consolidated
statements of operations.
(4) - Adjusted net income (loss) per
diluted common share is calculated by taking adjusted net income (loss)
divided by the GAAP weighted average number of diluted common shares
outstanding.
(5) - Adjusted net income (loss) per diluted common
share is calculated by taking adjusted net income divided by the
weighted average number of diluted common shares outstanding, which
includes GAAP diluted weighted average number of common shares of
131,402,465 and the dilutive effect of common stock equivalents of
617,622 shares.
|
|
|
|
|
COMPONENTS OF ADJUSTED BOOK VALUE PER
SHARE(1)
|
|
|
|
|
|
As of
March 31, 2018
|
|
|
As of
December 31, 2017
|
|
|
|
|
|
|
Reported Book Value per Share
|
|
$
|
13.97
|
|
|
$
|
15.44
|
|
Reverse book value of the MBIA Corp. legal entity (2)
|
|
|
9.32
|
|
|
|
8.84
|
|
Book value after MBIA Corp. legal entity adjustment
|
|
|
23.29
|
|
|
|
24.28
|
|
Other book value adjustments:
|
|
|
|
|
|
|
|
|
Reverse net unrealized (gains) losses on available-for-sale
securities included in other comprehensive income (loss)
|
|
|
0.70
|
|
|
|
0.26
|
|
Add net unearned premium revenue (3)
|
|
|
4.61
|
|
|
|
4.78
|
|
Total other book value adjustments per share
|
|
|
5.31
|
|
|
|
5.04
|
|
Adjusted book value per share
|
|
$
|
28.60
|
|
|
$
|
29.32
|
|
|
|
|
|
|
|
|
|
(1) A non-GAAP measure; please see Explanation of Non-GAAP Financial
Measures.
(2) The book value of the MBIA Corp. legal entity does
not provide significant economic or shareholder value to MBIA Inc.
(3)
Consists of financial guarantee premiums, net of deferred acquisition
costs. The discount rate on financial guarantee installment premiums was
the risk-free rate as defined by the accounting principles for financial
guarantee insurance contracts.
|
|
|
|
|
INSURANCE OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data Computed on a
Statutory Basis
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National Public Finance Guarantee
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
As of
|
|
|
|
|
March 31, 2018
|
|
|
December 31, 2017
|
|
Policyholders' surplus
|
|
|
$
|
2,169
|
|
|
|
$
|
2,166
|
|
|
Contingency reserves
|
|
|
|
565
|
|
|
|
|
594
|
|
|
Statutory capital
|
|
|
|
2,734
|
|
|
|
|
2,760
|
|
|
|
|
|
|
|
|
|
|
|
|
Unearned premiums
|
|
|
|
554
|
|
|
|
585
|
|
|
Present value of installment premiums (1)
|
|
|
|
163
|
|
|
|
|
164
|
|
|
Premium resources (2)
|
|
|
|
717
|
|
|
|
|
749
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss and loss adjustment expense reserves (1)
|
|
|
|
201
|
|
|
|
|
227
|
|
|
Salvage reserves
|
|
|
|
428
|
|
|
|
|
387
|
|
|
Gross loss and loss adjustment expense reserves
|
|
|
|
629
|
|
|
|
|
614
|
|
|
Total claims-paying resources
|
|
|
$
|
4,080
|
|
|
|
$
|
4,123
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt service outstanding
|
|
|
$
|
121,712
|
|
|
|
$
|
129,668
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratio (3)
|
|
|
|
45:1
|
|
|
|
|
47:1
|
|
|
|
|
|
|
|
|
|
|
|
|
Claims-paying ratio (4)
|
|
|
|
31:1
|
|
|
|
|
33:1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MBIA Insurance Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
As of
|
|
|
|
|
March 31, 2018
|
|
|
December 31, 2017
|
|
Policyholders’ surplus
|
|
|
$
|
223
|
|
|
|
$
|
237
|
|
|
Contingency reserves
|
|
|
|
232
|
|
|
|
|
227
|
|
|
Statutory capital
|
|
|
|
455
|
|
|
|
|
464
|
|
|
|
|
|
|
|
|
|
|
|
|
Unearned premiums
|
|
|
|
193
|
|
|
|
195
|
|
|
Present value of installment premiums (5) (7)
|
|
|
|
192
|
|
|
|
|
192
|
|
|
Premium resources (2)
|
|
|
|
385
|
|
|
|
|
387
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss and loss adjustment expense reserves (5)
|
|
|
|
(801
|
)
|
|
|
|
(792
|
)
|
|
Salvage reserves (6)
|
|
|
|
1,425
|
|
|
|
|
1,428
|
|
|
Gross loss and loss adjustment expense reserves
|
|
|
|
624
|
|
|
|
|
636
|
|
|
Total claims-paying resources
|
|
|
$
|
1,464
|
|
|
|
$
|
1,487
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt service outstanding
|
|
|
$
|
19,736
|
|
|
|
$
|
20,151
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratio (3)
|
|
|
|
43:1
|
|
|
|
|
43:1
|
|
|
|
|
|
|
|
|
|
|
|
|
Claims-paying ratio (4)
|
|
|
|
13:1
|
|
|
|
|
14:1
|
|
(1) Calculated using a discount rate of 3.25% as of March 31, 2018 and
December 31, 2017.
(2) Includes financial guarantee and insured
credit derivative related premiums.
(3) Net debt service
outstanding divided by statutory capital.
(4) Net debt service
outstanding divided by the sum of statutory capital, unearned premium
reserve (after-tax), present value of installment premiums (after-tax),
net loss and loss adjustment expense reserves and salvage reserves.
(5)
Calculated using a discount rate of 5.20% as of March 31, 2018 and
December 31, 2017.
(6) This amount primarily consists of expected
recoveries related to the Company's excess spread, put-backs and CDOs.
(7)
Based on the Company's estimate of the remaining life for its insured
exposures.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180509006305/en/
MBIA Inc.
Greg Diamond, 914-765-3190
Investor and Media
Relations
greg.diamond@mbia.com
Source: MBIA Inc.