MBIA INC Q4 FY2024 earnings call

• Full year and fourth quarter 2024 financial results had lower net losses than 2023, with benefits from reduced investment losses and lower operating expenses.
• Priority is resolving National's PREPA exposure, but path and timing for PREPA debt resolution remain uncertain.
• National's insured portfolio credits performed generally as expected, with gross par amount outstanding declining by $3.1 billion from 2023 to $25 billion in 2024.
• MBIA Inc.'s book value per share decreased due to consolidated net loss for 2024.
• Corporate segment balance sheet details provided, including asset composition.

For the fourth quarter of 2024, MBIA Inc. reported a consolidated GAAP net loss of $51 million ($1.07 per share) compared to $138 million ($2.94 per share) in 2023. The full year 2024 consolidated GAAP net loss was $447 million ($9.43 per share) vs. $491 million ($10.18 per share) in 2023. National Public Finance Guarantee Corporation had a fourth quarter 2024 statutory net loss of $10 million vs. $9 million in 2023, and full year 2024 statutory net loss of $133 million vs. $142 million in 2023. The Corporate segment had total assets of approximately $707 million as of December 31, 2024, with unencumbered cash and liquid assets of $380 million.

• The process to sell the company to maximize shareholder value likely requires reducing uncertainty regarding PREPA.
• Need more certainty around PREPA before pursuing a special dividend from the regulator, depending on portfolio dynamics and PREPA resolution progress.

• Uncertainty associated with the possible outcomes for National's PREPA bankruptcy claim, which is in excess of $800 million.
• Regulator would want to see movement towards resolution of PREPA before considering certain capital release actions.

Q: About releasing capital from National beyond regular dividends, can the regulator approve more frequent smaller special capital releases?

A: Yes, but need regulator approval. Ongoing conversations with regulator, but more certainty around PREPA needed before pursuing special dividend from regulator.

Q: Regarding PREPA litigation, talk about position in creditor group and objectives relative to other members?

A: Focus on both dollar recovery and timing for shareholders. Strong alignment among bondholders on these components, but Oversight Board's position is a challenge; recent filing to move litigation forward for quicker resolution.

Q: Uncertainty around PREPA holding up sale process, can MBIA be sold excluding PREPA obligation?

A: Possible, but suggested or offered deals have been inadequate for shareholders. Due to size and complexity of PREPA claim, prospective buyers aren't willing to offer acceptable terms, so better to play out PREPA situation