MBIA INC Q1 FY2025 earnings call

• First quarter 2025 GAAP net loss was $62 million ($1.28 per share) compared to $86 million ($1.84 per share) in 2024, lower due to favorable variances in consolidated VIE revenues, LAE losses, and lower operating expenses.
• Adjusted net loss (non-GAAP) for Q1 2025 was $8 million ($0.16 per share) vs. $24 million ($0.52 per share) in 2024, primarily due to lower losses in LAE at National.
• MBIA Inc.'s book value per share decreased to negative $42.22 as of March 31, 2025.
• Corporate segment had total assets of approximately $685 million as of March 31, 2025, with $378 million in unencumbered cash and liquid assets.
• National's insured portfolio credits performed generally as expected, with gross par down ~$500 million to $25 billion.
• Priority remains resolving National's PREPA exposure, and the Title III Court lifted stays on selected litigation matters related to PREPA.

MBIA Insurance Corp. reported a statutory net income of $2 million for the first quarter of 2025, compared to a statutory net loss of $35 million in the first quarter of 2024. Its statutory capital was $88 million as of March 31, 2025, and insured gross par outstanding was $2.3 billion. National Public Finance Guarantee Corporation had a statutory net income of $4 million for the first quarter of 2025, versus a statutory net loss of $11 million in the first quarter of 2024. Its gross par amount outstanding declined by approximately $500 million from year-end 2024 to about $25 billion at March 31, 2025, with a leverage ratio of 27:1, total claims paying resources of $1.5 billion, and statutory capital and surplus in excess of $900 million.

• Uncertainty regarding the outcome of National's PREPA bankruptcy claim, which exceeds $800 million.
• General market conditions and competitive environment could cause actual results to differ from forward-looking statements.

Q: John Staley inquires about the PREPA situation, political aspects, and proactive steps to resolve it.

A: Bill Fallon responds that there are multiple parties involved, the court schedule is moving, and they are optimistic about moving into a different phase for PREPA resolution