MBIA (NYSE:MBI) Q3 2025 Earnings Call November 05, 2025 08:00 AM ET Speaker4Welcome to the MBIA third quarter 2025 financial results conference call. I would now like to turn the call over to Greg Diamond, Managing Director of Investor and Media Relations at MBIA. Please go ahead, sir.Speaker3Thank you, Erica. Welcome to MBIA's conference call for our Third Quarter 2025 Financial Results. After the market closed yesterday, we issued and posted several items on our website, including our financial results, 1 ...

MBIA (MBI) came out with a quarterly loss of $0.15 per share versus the Zacks Consensus Estimate of a loss of $0.03. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -400.00%. A quarter ago, it was expected that this insurance and reinsurance company would post a loss of $0.08 per share when it actually produced a loss of $0.17, delivering a surprise of -112.5%.Over the last four quarters, t ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-09583 MBIA INC. (Exact name of registrant as specified in its charter) Connecticut (State or other jurisdiction of i ...

PURCHASE, N.Y.--(BUSINESS WIRE)--MBIA Inc. (NYSE:MBI) will host a webcast and conference call for investors on Wednesday, November 5 at 8:00 a.m. (ET) to discuss its third quarter 2025 financial results and other issues related to the Company. The dial-in number for the call is 800-445-7795 in the U.S. and 785-424-1699 from outside the U.S. The conference call code is MBIAQ325. A live webcast of the conference call will also be accessible on www.mbia.com. The conference call will consist of bri. ...

Financial Data and Key Metrics Changes - The company reported a consolidated GAAP net loss of $56 million or a negative $1.12 per share for Q2 2025, compared to a consolidated GAAP net loss of $254 million or a negative $5.34 per share for Q2 2024, indicating a significant improvement in financial performance [9][10] - The adjusted net loss for Q2 2025 was $8 million or a negative $0.17 per share, compared to an adjusted net loss of $138 million or a negative $2.90 per share for Q2 2024, reflecting lower losses in LAE [11] - Book value per share decreased by $2.15 to a negative $43.14 as of June 30, 2025, from a negative $40.99 as of December 31, 2024, primarily due to the consolidated net loss [12] Business Line Data and Key Metrics Changes - National reported statutory net income of $6 million for 2025, compared to a statutory net loss of $131 million for 2024, driven by lower losses in LAE related to PREPA exposure [14] - MBIA Insurance Corp reported statutory net income of $4 million for 2025, compared to a statutory net loss of $35 million for 2024, also due to lower losses in LAE [15] Market Data and Key Metrics Changes - The gross par amount outstanding for National's insured portfolio declined by approximately $1.1 billion from year-end 2024 to about $24 billion as of June 30, 2025 [7] - National's leverage ratio of gross par to statutory capital was 26 to 1 at the end of Q2 2025, with total claims paying resources of $1.5 billion [8] Company Strategy and Development Direction - The company continues to prioritize resolving National's PREPA exposure, with the timing of resolution remaining uncertain, and believes that reducing uncertainty regarding PREPA is essential for maximizing shareholder value [7] - The transfer of $374 million of claims to a custodian is seen as a move to enhance marketability and facilitate potential sales of those claims [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism that the recent changes in the Puerto Rico oversight board could lead to a more favorable environment for reaching a consensual deal regarding PREPA [25][26] - The company is cautious about speculating on the impact of the oversight board changes until more information is available regarding new board members and their approach [25][26] Other Important Information - The corporate segment had total assets of approximately $677 million as of June 30, 2025, with unencumbered cash and liquid assets totaling $355 million [13] - The company has ongoing discussions regarding a cooperation agreement with Azure and GoldenTree, which is set to expire at the end of the year [42] Q&A Session Summary Question: Can the transfer of PREPA bankruptcy claims to a custodian be interpreted as a signal that the company is marketing those claims? - Management confirmed that $374 million of claims were transferred to a custodian to enhance marketability, making them effectively securities [20][22] Question: How does the recent dismissal of oversight board members impact restructuring negotiations? - Management stated that it is difficult to assess the impact until new board members are appointed and their approach is known, but there is hope for a positive outcome [25][26] Question: Is the cooperation agreement with Azure and GoldenTree still set to expire at the end of the year? - Management confirmed that the agreement will expire at the end of the year, but discussions are ongoing regarding its implications [42] Question: What is the current outstanding exposure related to PREPA? - As of June 30, the outstanding exposure was reported at $504 million, with a payment of approximately $91 million made on July 1 [45] Question: How does the company view the recent changes in the oversight board regarding bondholder interests? - Management noted that while they have not heard specific statements from the president regarding Puerto Rico, the changes are viewed positively and may facilitate a faster resolution [78]

[PART I FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents MBIA Inc.'s unaudited consolidated financial statements, including balance sheets, statements of operations, comprehensive income, changes in equity, and cash flows, along with detailed explanatory notes [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20and%20December%2031%2C%202024%20(Unaudited)) Consolidated Balance Sheets (in millions) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Total investments | $1,547 | $1,655 | | Cash and cash equivalents | 165 | 84 | | Premiums receivable | 129 | 133 | | Deferred acquisition costs | 25 | 27 | | Insurance loss recoverable | 185 | 185 | | Assets held for sale | 11 | 11 | | Other assets | 37 | 42 | | Assets of consolidated variable interest entities: | | | | Cash | 2 | 3 | | Loans receivable at fair value | 33 | 28 | | **Total assets** | **$2,134** | **$2,168** | | **Liabilities and Equity** | | | | **Liabilities:** | | | | Unearned premium revenue | $186 | $199 | | Loss and loss adjustment expense reserves | 526 | 526 | | Long-term debt | 2,814 | 2,741 | | Medium-term notes | 454 | 440 | | Investment agreements | 203 | 204 | | Liabilities held for sale | 7 | 7 | | Other liabilities | 67 | 78 | | Liabilities of consolidated variable interest entities: | | | | Variable interest entity debt | 32 | 43 | | Derivative liabilities | 10 | 6 | | **Total liabilities** | **$4,299** | **$4,244** | | **Equity:** | | | | Common stock | 283 | 283 | | Additional paid-in capital | 2,453 | 2,492 | | Retained earnings (deficit) | (1,709) | (1,591) | | Accumulated other comprehensive income (loss) | (96) | (128) | | Treasury stock, at cost | (3,109) | (3,145) | | Total shareholders' equity of MBIA Inc. | (2,178) | (2,089) | | Preferred stock of subsidiary | 13 | 13 | | **Total equity** | **(2,165)** | **(2,076)** | | **Total liabilities and equity** | **$2,134** | **$2,168** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) Consolidated Statements of Operations (in millions, except share and per share amounts) | | Three Months Ended June 30, | | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **Revenues** | | | | | | Premiums earned | $7 | $8 | $15 | $17 | | Net investment income | 19 | 22 | 37 | 45 | | Net realized investment gains (losses) | (1) | (2) | (6) | (3) | | Net gains (losses) on financial instruments at fair value and foreign exchange | (2) | (55) | (17) | (51) | | Fees and reimbursements | - | 1 | 1 | 1 | | Other net realized gains (losses) | - | 2 | - | 5 | | Revenues of consolidated variable interest entities: | | | | | | Net gains (losses) on financial instruments at fair value and foreign exchange | - | 1 | - | (24) | | Other net realized gains (losses) | - | (14) | 7 | (14) | | **Total revenues** | **23** | **(37)** | **37** | **(24)** | | **Expenses** | | | | | | Losses and loss adjustment | 8 | 142 | 16 | 160 | | Amortization of deferred acquisition costs | 1 | 1 | 2 | 2 | | Operating | 18 | 15 | 34 | 40 | | Interest | 48 | 53 | 98 | 105 | | Expenses of consolidated variable interest entities: | | | | | | Operating | 3 | 5 | 4 | 9 | | Interest | 1 | - | 1 | - | | **Total expenses** | **79** | **216** | **155** | **316** | | Income (loss) from continuing operations before income taxes | (56) | (253) | (118) | (340) | | Provision (benefit) for income taxes | - | - | - | - | | Income (loss) from continuing operations | (56) | (253) | (118) | (340) | | Income (loss) from discontinued operations, net of income taxes | - | (2) | - | (1) | | **Net income (loss)** | **(56)** | **(255)** | **(118)** | **(341)** | | Less: Net income from discontinued operations attributable to noncontrolling interest | - | (1) | - | (1) | | **Net income (loss) attributable to MBIA Inc.** | **$(56)** | **$(254)** | **$(118)** | **$(340)** | | **Net income (loss) per common share attributable to MBIA Inc. - basic and diluted** | | | | | | Continuing operations | $(1.12) | $(5.30) | $(2.40) | $(7.20) | | Discontinued operations | - | (0.04) | - | (0.01) | | **Net income (loss) per common share attributable to MBIA Inc. - basic and diluted** | **$(1.12)** | **$(5.34)** | **$(2.40)** | **$(7.21)** | | Weighted average number of common shares outstanding | | | | | | Basic | 49,543,258 | 47,501,248 | 48,952,068 | 47,161,085 | | Diluted | 49,543,258 | 47,501,248 | 48,952,068 | 47,161,085 | [Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) Consolidated Statements of Comprehensive Income (Loss) (in millions) | | Three Months Ended June 30, | | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | Net income (loss) attributable to MBIA Inc. | $(56) | $(254) | $(118) | $(340) | | Other comprehensive income (loss): | | | | | | Available-for-sale securities with no credit losses: | | | | | | Unrealized gains (losses) arising during the period | 1 | (11) | 18 | (26) | | Reclassification adjustments for (gains) losses included in net income (loss) | - | 2 | 7 | 2 | | Foreign currency translation: | | | | | | Reclassification adjustments for (gains) losses included in net income (loss) | - | - | 5 | - | | Instrument-specific credit risk of liabilities measured at fair value: | | | | | | Unrealized gains (losses) arising during the period | 2 | (6) | 2 | (2) | | Reclassification adjustments for (gains) losses included in net income (loss) | - | 9 | - | 28 | | **Total other comprehensive income (loss)** | **3** | **(6)** | **32** | **2** | | **Comprehensive income (loss)** | **$(53)** | **$(260)** | **$(86)** | **$(338)** | [Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) Consolidated Statements of Changes in Shareholders' Equity (in millions except share amounts) | | Three Months Ended June 30, | | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **Common shares** | | | | | | Balance at beginning and end of period | 283,186,115 | 283,186,115 | 283,186,115 | 283,186,115 | | **Common stock amount** | | | | | | Balance at beginning and end of period | $283 | $283 | $283 | $283 | | **Additional paid-in capital** | | | | | | Balance at beginning of period | $2,460 | $2,486 | $2,492 | $2,515 | | Share-based compensation | (7) | (3) | (39) | (32) | | Balance at end of period | $2,453 | $2,483 | $2,453 | $2,483 | | **Retained earnings (deficit)** | | | | | | Balance at beginning of period | $(1,653) | $(1,230) | $(1,591) | $(1,144) | | Net income (loss) attributable to MBIA Inc. | (56) | (254) | (118) | (340) | | Balance at end of period | $(1,709) | $(1,484) | $(1,709) | $(1,484) | | **Accumulated other comprehensive income (loss)** | | | | | | Balance at beginning of period | $(99) | $(131) | $(128) | $(139) | | Other comprehensive income (loss) | 3 | (6) | 32 | 2 | | Balance at end of period | $(96) | $(137) | $(96) | $(137) | | **Treasury shares** | | | | | | Balance at beginning of period | (232,815,490) | (231,910,363) | (232,215,934) | (232,323,184) | | Other | 117,432 | (248,052) | (482,124) | 164,769 | | Balance at end of period | (232,698,058) | (232,158,415) | (232,698,058) | (232,158,415) | | **Treasury stock amount** | | | | | | Balance at beginning of period | $(3,117) | $(3,141) | $(3,145) | $(3,172) | | Other | 8 | 2 | 36 | 33 | | Balance at end of period | $(3,109) | $(3,139) | $(3,109) | $(3,139) | | **Total shareholders' equity of MBIA Inc.** | | | | | | Balance at beginning of period | $(2,126) | $(1,733) | $(2,089) | $(1,657) | | Period change | (52) | (261) | (89) | (337) | | Balance at end of period | $(2,178) | $(1,994) | $(2,178) | $(1,994) | | **Preferred stock of subsidiary shares** | | | | | | Balance at beginning and end of period | 1,315 | 1,315 | 1,315 | 1,315 | | **Preferred stock of subsidiary and noncontrolling interest held for sale** | | | | | | Balance at beginning of period | $13 | $10 | $13 | $10 | | Period change | - | (1) | - | (1) | | Balance at end of period | $13 | $9 | $13 | $9 | | **Total equity** | **$(2,165)** | **$(1,985)** | **$(2,165)** | **$(1,985)** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20six%20months%20ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) Consolidated Statements of Cash Flows (in millions) | | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2025** | **2024** | | **Cash flows from operating activities:** | | | | Premiums, fees and reimbursements received | $8 | $7 | | Investment income received | 25 | 31 | | Financial guarantee losses and loss adjustment expenses paid | (29) | (25) | | Proceeds from recoveries and reinsurance, net of salvage paid to reinsurers | 15 | 4 | | Operating expenses paid and other operating | (42) | (35) | | Other proceeds from consolidated variable interest entities | - | 2 | | Interest paid, net of interest converted to principal | (19) | (24) | | **Net cash provided (used) by operating activities** | **(42)** | **(40)** | | **Cash flows from investing activities:** | | | | Purchases of available-for-sale investments | (173) | (108) | | Sales of available-for-sale investments | 123 | 55 | | Paydowns, maturities and other proceeds of available-for-sale investments | 103 | 117 | | Purchases of investments at fair value | (22) | (68) | | Sales, paydowns, maturities and other proceeds of investments at fair value | 32 | 154 | | Sales, paydowns and maturities (purchases) of short-term investments, net | 74 | 100 | | Other investing | 1 | 3 | | **Net cash provided (used) by investing activities** | **138** | **253** | | **Cash flows from financing activities:** | | | | Principal paydowns of investment agreements | (1) | (1) | | Principal paydowns of medium-term notes | - | (62) | | Proceeds from variable interest entity debt | - | 2 | | Principal paydowns/redemptions of variable interest entity debt | (8) | (57) | | Principal paydowns of long-term debt | - | (1) | | Purchases of treasury stock | (7) | (4) | | **Net cash provided (used) by financing activities** | **(16)** | **(123)** | | **Net increase (decrease) in cash and cash equivalents** | **80** | **90** | | Cash and cash equivalents - beginning of period | 87 | 108 | | **Cash and cash equivalents - end of period** | **$167** | **$198** | | **Reconciliation of net income (loss) to net cash provided (used) by operating activities:** | | | | Net income (loss) | $(118) | $(341) | | Income (loss) from discontinued operations, net of income taxes | - | (1) | | Income (loss) from continuing operations | (118) | (340) | | Adjustments to reconcile net income (loss) from continuing operations to net cash provided (used) by operating activities: | | | | Change in: | | | | Unearned premium revenue | (13) | (16) | | Loss and loss adjustment expense reserves | - | 104 | | Insurance loss recoverable | - | 41 | | Accrued interest payable | 80 | 86 | | Other assets and liabilities | (12) | (6) | | Net realized investment gains (losses) | 6 | 3 | | Net (gains) losses on financial instruments at fair value and foreign exchange | 17 | 75 | | Other net realized (gains) losses | (7) | 9 | | Other operating | 5 | 4 | | Total adjustments to income (loss) from continuing operations | 76 | 300 | | **Net cash provided (used) by operating activities** | **$(42)** | **$(40)** | | **Supplementary Disclosure of Consolidated Cash Flow Information:** | | | | Non-cash financing activities: | | | | Variable interest entity debt extinguishment | $7 | $- | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) [Note 1: Business Developments and Risks and Uncertainties](index=10&type=section&id=Note%201%3A%20Business%20Developments%20and%20Risks%20and%20Uncertainties) - National paid gross claims of **$13 million** on January 1, 2025, and **$92 million** on July 1, 2025, due to PREPA debt service defaults. As of June 30, 2025, National had **$657 million** of insured debt service outstanding related to PREPA[26](index=26&type=chunk)[180](index=180&type=chunk)[299](index=299&type=chunk) - National terminated the PREPA RSA due to the Oversight Board's intent to modify National's settlement in an amended Plan, raising uncertainty about a substantially similar confirmed plan[27](index=27&type=chunk)[184](index=184&type=chunk)[300](index=300&type=chunk) - MBIA Corp. is dissolving its wholly-owned subsidiary, MBIA Mexico, which returned approximately **$12 million** of capital to MBIA Corp. during the six months ended June 30, 2025[30](index=30&type=chunk)[183](index=183&type=chunk) - Significant uncertainty remains regarding the realizable value of remaining loans and equity interests in portfolio companies and the litigation trust from Zohar CDOs[32](index=32&type=chunk) - Assets and liabilities of certain Zohar entities are classified as 'held for sale' and their results as 'discontinued operations'[33](index=33&type=chunk) - MBIA Corp.'s ability to meet obligations is limited by liquidity, and failure to collect expected recoveries could lead to rehabilitation or liquidation proceedings by the NYSDFS[38](index=38&type=chunk)[40](index=40&type=chunk) [Note 2: Significant Accounting Policies](index=15&type=section&id=Note%202%3A%20Significant%20Accounting%20Policies) - Unaudited consolidated financial statements are prepared per Form 10-Q and Article 10 of Regulation S-X, not including all GAAP disclosures for annual periods[44](index=44&type=chunk) - Financial statements rely on management's estimates and assumptions, which may differ from actual results[45](index=45&type=chunk) [Note 3: Recent Accounting Pronouncements](index=15&type=section&id=Note%203%3A%20Recent%20Accounting%20Pronouncements) - No new accounting pronouncements adopted had a material impact on consolidated financial statements[47](index=47&type=chunk) - The company is evaluating the potential impact of ASU 2023-09 (Improvements to Income Tax Disclosures), effective for annual periods after December 15, 2024[48](index=48&type=chunk) - The company is evaluating the potential impact of ASU 2024-03 (Disaggregation of Income Statement Expenses), effective for annual periods after December 15, 2026[49](index=49&type=chunk) [Note 4: Variable Interest Entities](index=17&type=section&id=Note%204%3A%20Variable%20Interest%20Entities) - MBIA consolidates VIEs where it has both the power to direct activities that significantly impact economic performance and the obligation to absorb losses or right to receive benefits[52](index=52&type=chunk) - No additional consolidations or deconsolidations occurred in Q1/Q2 2025. In Q2 2024, one VIE was deconsolidated due to prepayment, resulting in **$14 million** losses (**$9 million** from AOCI)[53](index=53&type=chunk) Maximum Exposure to Loss for Nonconsolidated VIEs (in millions) | In millions | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Total insurance in force | $1,255 | $1,425 | | Total investments | $29 | $26 | | Total premiums receivable | $9 | $10 | | Total insurance loss recoverable | $21 | $21 | | Total unearned premium revenue | $7 | $8 | | Total loss and LAE reserves | $231 | $227 | [Note 5: Loss and Loss Adjustment Expense Reserves](index=20&type=section&id=Note%205%3A%20Loss%20and%20Loss%20Adjustment%20Expense%20Reserves) - U.S. public finance loss reserves are estimated using probability-weighted cash flow scenarios, considering debt service and recoveries[58](index=58&type=chunk) - RMBS case basis reserves are calculated using the Roll Rate Methodology, involving loan-level data, internal cash flow models, and commercially available models[61](index=61&type=chunk) Summary of Loss and LAE Reserves and Recoveries (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Total Insurance loss recoverable | $185 | $185 | | Total Loss and LAE reserves | $526 | $526 | | U.S. Public Finance Insurance loss recoverable | $164 | $165 | | U.S. Public Finance Loss and LAE reserves | $295 | $299 | | International and Structured Finance Insurance loss recoverable | $21 | $20 | | International and Structured Finance Loss and LAE reserves | $231 | $227 | - Loss and LAE reserves remained flat at **$526 million** for the six months ended June 30, 2025, with claim payments on PREPA and a U.S. public finance leased-backed transaction partially offset by accretion and lower risk-free rates[68](index=68&type=chunk)[69](index=69&type=chunk) - Insurance loss recoverable remained flat at **$185 million** for the six months ended June 30, 2025, as collections from unwrapped PREPA bonds were offset by reclassification of expected recoveries on a lease-backed transaction, accretion, and a decline in risk-free rates[71](index=71&type=chunk)[72](index=72&type=chunk) Surveillance Categories (June 30, 2025, in millions) | Metric | Total | | :------------------------------------------ | :---- | | Number of policies | 115 | | Number of issues | 84 | | Remaining weighted average contract period (in years) | 5.4 | | Gross insured contractual payments outstanding: Principal | $2,029 | | Gross insured contractual payments outstanding: Interest | $1,694 | | Total Gross insured contractual payments outstanding | $3,723 | | Gross Claim Liability | $872 | | Gross Potential Recoveries | $441 | | Discount, net | $99 | | Net claim liability (recoverable) | $332 | | Unearned premium revenue | $11 | | Reinsurance recoverable on paid and unpaid losses | $16 | [Note 6: Fair Value of Financial Instruments](index=27&type=section&id=Note%206%3A%20Fair%20Value%20of%20Financial%20Instruments) - Investments are classified into Level 1 (quoted active markets), Level 2 (observable inputs), and Level 3 (significant unobservable inputs) of the fair value hierarchy[86](index=86&type=chunk) - As of June 30, 2025, Level 3 assets represented approximately **6%** of total assets measured at fair value, while Level 3 liabilities represented approximately **99%** of total liabilities measured at fair value[103](index=103&type=chunk) Fair Value Measurements at Reporting Date (in millions) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Total assets measured at fair value | $1,746 | $1,769 | | Level 1 Assets | $781 | $797 | | Level 2 Assets | $854 | $866 | | Level 3 Assets | $101 | $96 | | Total liabilities measured at fair value | $75 | $73 | | Level 1 Liabilities | $0 | $0 | | Level 2 Liabilities | $1 | $1 | | Level 3 Liabilities | $74 | $72 | - The company elected to record certain financial instruments at fair value, including certain equity investments and financial instruments consolidated in connection with VIEs[118](index=118&type=chunk) - Cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option were gains of **$29 million** (June 30, 2025) and **$27 million** (December 31, 2024), reported in AOCI[121](index=121&type=chunk) [Note 7: Investments](index=45&type=section&id=Note%207%3A%20Investments) AFS Investments (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Total AFS investments (Fair Value) | $1,268 | $1,236 | | Total AFS investments (Amortized Cost) | $1,400 | $1,391 | | Gross Unrealized Gains | $6 | $5 | | Gross Unrealized Losses | $(138) | $(160) | AFS Fixed-Maturity Securities by Contractual Maturity (June 30, 2025, in millions) | Maturity | Net Amortized Cost | Fair Value | | :------------------------------------------ | :----------------- | :--------- | | Due in one year or less | $433 | $432 | | Due after one year through five years | $91 | $91 | | Due after five years through ten years | $182 | $162 | | Due after ten years | $379 | $281 | | Mortgage-backed and asset-backed | $315 | $302 | | Total fixed-maturity investments | $1,400 | $1,268 | - Fair value of securities pledged as collateral for investment agreements was **$214 million** at June 30, 2025[127](index=127&type=chunk) - Gross unrealized losses on AFS investments decreased from **$160 million** (Dec 31, 2024) to **$138 million** (June 30, 2025), primarily due to lower interest rates and tighter credit spreads[129](index=129&type=chunk) - The company did not purchase any credit-deteriorated assets or establish an allowance for credit losses for AFS securities for the three and six months ended June 30, 2025 and 2024[133](index=133&type=chunk) Sales of Available-for-Sale Investments (in millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Proceeds from sales | $61 | $27 | $123 | $55 | | Gross realized gains | $0 | $1 | $1 | $1 | | Gross realized losses | $(1) | $(2) | $(7) | $(3) | [Note 8: Income Taxes](index=49&type=section&id=Note%208%3A%20Income%20Taxes) - The effective tax rate was **0.0%** for both three and six months ended June 30, 2025 and 2024, due to a full valuation allowance on the net deferred tax asset[139](index=139&type=chunk) - A full valuation allowance of **$1.4 billion** was recorded against the net deferred tax asset as of June 30, 2025, and December 31, 2024, due to a three-year cumulative loss[140](index=140&type=chunk) - The company has approximately **$4.4 billion** in Net Operating Losses (NOLs) as of June 30, 2025, expiring between 2026 and 2044, and a **$55 million** foreign tax credit carryforward expiring between 2025 and 2033[143](index=143&type=chunk) - The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, is not expected to have a material impact on the company's financial results[145](index=145&type=chunk) [Note 9: Business Segments](index=51&type=section&id=Note%209%3A%20Business%20Segments) - MBIA manages three operating segments: U.S. public finance insurance (National), corporate, and international and structured finance insurance (MBIA Corp.)[146](index=146&type=chunk) - The U.S. public finance insurance segment (National) provides unconditional guarantees for U.S. municipal bonds and public purpose projects, with **$24.2 billion** gross insured par outstanding as of June 30, 2025[147](index=147&type=chunk)[201](index=201&type=chunk) - The international and structured finance insurance segment (MBIA Corp.) guarantees non-U.S. public finance and global structured finance obligations, with **$2.2 billion** gross insured par outstanding as of June 30, 2025. It has not written meaningful new business since 2008[149](index=149&type=chunk)[228](index=228&type=chunk) Segment Results: Income (loss) from continuing operations before income taxes (in millions) | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | U.S. Public Finance Insurance | $7 | $(130) | $7 | $(139) | | Corporate | $(20) | $(4) | $(35) | $(13) | | International and Structured Finance Insurance | $(42) | $(119) | $(89) | $(188) | | Eliminations | $(1) | $0 | $(1) | $0 | | Consolidated | $(56) | $(253) | $(118) | $(340) | [Note 10: Earnings Per Share](index=57&type=section&id=Note%2010%3A%20Earnings%20Per%20Share) - Earnings per share (EPS) is calculated using the two-class method, allocating earnings to common stock and participating securities (unvested restricted stock)[165](index=165&type=chunk) - Unvested restricted stock is excluded from diluted EPS calculation during net loss periods as it would be antidilutive[166](index=166&type=chunk) Net Income (Loss) Per Common Share - Basic and Diluted (in millions except per share amounts) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Continuing operations | $(1.12) | $(5.30) | $(2.40) | $(7.20) | | Discontinued operations | $0.00 | $(0.04) | $0.00 | $(0.01) | | Net income (loss) per share - basic and diluted | $(1.12) | $(5.34) | $(2.40) | $(7.21) | [Note 11: Accumulated Other Comprehensive Income](index=58&type=section&id=Note%2011%3A%20Accumulated%20Other%20Comprehensive%20Income) Accumulated Other Comprehensive Income (AOCI) Balance (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Balance | $(96) | $(128) | Changes in AOCI (6 months ended June 30, 2025, in millions) | Component | Balance, Dec 31, 2024 | Other comprehensive income (loss) before reclassifications | Amounts reclassified from AOCI | Net period other comprehensive income (loss) | Balance, June 30, 2025 | | :------------------------------------------ | :-------------------- | :--------------------------------------------------------- | :----------------------------- | :------------------------------------------ | :--------------------- | | Unrealized Gains (Losses) on AFS Securities, Net | $(150) | $18 | $7 | $25 | $(125) | | Foreign Currency Translation, Net | $(5) | $0 | $5 | $5 | $0 | | Instrument-Specific Credit Risk of Liabilities Measured at Fair Value, Net | $27 | $2 | $0 | $2 | $29 | | Total | $(128) | $20 | $12 | $32 | $(96) | - Total reclassifications from AOCI for the six months ended June 30, 2025, were **$(12) million**, including **$(7) million** from realized gains/losses on AFS securities and **$(5) million** from foreign currency translation due to MBIA Mexico liquidation[169](index=169&type=chunk) [Note 12: Commitments and Contingencies](index=59&type=section&id=Note%2012%3A%20Commitments%20and%20Contingencies) - Ongoing PREPA Title III proceedings are the primary material legal matter. No other material legal proceedings are pending or threatened[171](index=171&type=chunk) - The company exercised its right to terminate its Purchase, New York headquarters lease in August 2025 but executed a partial reinstatement for a portion of the space with an initial term expiring in 2029[173](index=173&type=chunk) Lease Information (June 30, 2025, in millions) | Metric | Amount | | :------------------------------------------ | :----- | | ROU asset | $2 | | Lease liability | $7 | | Weighted average remaining lease term (years) | 3.8 | | Discount rate used for operating leases | 9.5% | | Total future minimum lease payments | $8 | - MBIA Corp. has a fully drawn **$15 million** delayed draw term loan commitment to an entity it holds as an equity investment[175](index=175&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=60&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes the company's financial condition and results, highlighting improved net loss driven by favorable investment fair value changes and reduced loss adjustment expenses - MBIA operates in financial guarantee insurance across U.S. public finance (National), corporate, and international/structured finance (MBIA Corp.) segments. Neither National nor MBIA Corp. is expected to write new financial guarantee policies outside of remediation[177](index=177&type=chunk)[178](index=178&type=chunk) - U.S. economic activity moderated in H1 2025, with low unemployment and elevated inflation. FOMC maintained federal funds rate at **4.25%-4.50%**. Economic trends could impact investment portfolio values and yields, and loss reserves[179](index=179&type=chunk) [OVERVIEW](index=60&type=section&id=OVERVIEW) - National paid **$13 million** in claims on Jan 1, 2025, and **$92 million** on July 1, 2025, due to PREPA defaults. **$657 million** of insured debt service outstanding as of June 30, 2025[180](index=180&type=chunk) - National terminated the PREPA RSA due to the Oversight Board's intent to modify the settlement, creating uncertainty for future plan confirmation[184](index=184&type=chunk) - MBIA Mexico returned **$12 million** capital to MBIA Corp. during H1 2025 as part of its dissolution process[183](index=183&type=chunk) [RESULTS OF OPERATIONS](index=62&type=section&id=RESULTS%20OF%20OPERATIONS) Consolidated Financial Results (in millions, except EPS) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total revenues | $23 | $(37) | $37 | $(24) | | Total expenses | $79 | $216 | $155 | $316 | | Net income (loss) attributable to MBIA Inc. | $(56) | $(254) | $(118) | $(340) | | Net income (loss) per basic and diluted common share | $(1.12) | $(5.34) | $(2.40) | $(7.21) | | Adjusted net income (loss) | $(8) | $(138) | $(16) | $(162) | - Consolidated total revenues increased for the three months ended June 30, 2025, primarily due to favorable changes from fair valuing investments (**$5 million** gains vs. **$59 million** losses in 2024) and consolidated VIE revenues, partially offset by foreign currency losses (**$9 million** vs. **$1 million** gains in 2024) and lower net investment income[186](index=186&type=chunk) - Consolidated total revenues increased for the six months ended June 30, 2025, primarily due to favorable changes from fair valuing investments (**$1 million** gains vs. **$59 million** losses in 2024) and consolidated VIE revenues (**$7 million** gain vs. **$38 million** loss in 2024), partially offset by foreign currency losses (**$13 million** vs. **$4 million** gains in 2024) and lower net investment income[188](index=188&type=chunk) - Consolidated losses and LAE significantly decreased to **$8 million** (3 months) and **$16 million** (6 months) in 2025 from **$142 million** and **$160 million** in 2024, primarily due to favorable changes in PREPA net reserves[187](index=187&type=chunk)[189](index=189&type=chunk) - The effective tax rate remained **0.0%** for both periods due to a full valuation allowance on the net deferred tax asset[190](index=190&type=chunk) [Non-GAAP Adjusted Net Income (Loss)](index=64&type=section&id=Non-GAAP%20Adjusted%20Net%20Income%20(Loss)) - Adjusted net income (loss) is a non-GAAP measure used by management to assess performance and make business decisions, considered a fundamental measure of periodic financial performance[192](index=192&type=chunk) - Adjustments include removing after-tax results of the international and structured finance insurance segment, and adjusting for mark-to-market gains/losses on financial instruments, foreign exchange gains/losses, net realized investment gains/losses, and extinguishment of debt[193](index=193&type=chunk)[198](index=198&type=chunk) Adjusted Net Income (Loss) (in millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Adjusted net income (loss) | $(8) | $(138) | $(16) | $(162) | | Adjusted net income (loss) per diluted common share | $(0.17) | $(2.90) | $(0.33) | $(3.44) | [Book Value Adjustments Per Share](index=66&type=section&id=Book%20Value%20Adjustments%20Per%20Share) - Management analyzes adjusted book value (ABV) per share by removing the negative book value of MBIA Corp., net unrealized gains/losses on AFS securities, and including net unearned premium revenue in excess of expected losses of National[197](index=197&type=chunk)[202](index=202&type=chunk) GAAP Book Value Per Share (in millions except share and per share amounts) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Total shareholders' equity of MBIA Inc. | $(2,178) | $(2,089) | | Common shares outstanding | 50,488,057 | 50,970,181 | | GAAP book value per share | $(43.14) | $(40.99) | [U.S. Public Finance Insurance Segment](index=67&type=section&id=U.S.%20Public%20Finance%20Insurance%20Segment) - National's gross insured par outstanding was **$24.2 billion** as of June 30, 2025[201](index=201&type=chunk) U.S. Public Finance Insurance Segment Results: Income (loss) from continuing operations before income taxes (in millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total revenues | $23 | $23 | $40 | $49 | | Total expenses | $16 | $153 | $33 | $188 | | Income (loss) from continuing operations before income taxes | $7 | $(130) | $7 | $(139) | - For the three and six months ended June 30, 2025, losses and LAE incurred were primarily due to extending the timing of a settlement on the PREPA exposure. In 2024, they were mainly due to changes in PREPA reserves[207](index=207&type=chunk) - National paid **$3.2 billion** in gross claims related to Puerto Rico bonds through June 30, 2025[217](index=217&type=chunk) PREPA Scheduled Gross Debt Service (June 30, 2025, in millions) | Year | Amount | | :------------------------------------------ | :----- | | 2025 (remaining 6 months) | $92 | | 2026 | $57 | | 2027 | $20 | | 2028 | $20 | | 2029 | $89 | | Thereafter | $379 | | Total | $657 | Credit Quality Distribution of National's U.S. Public Finance Outstanding Gross Par Insured (June 30, 2025, in millions) | Rating | Amount | % | | :------------------------------------------ | :----- | :---- | | AAA | $960 | 4.0% | | AA | $10,831 | 44.7% | | A | $8,878 | 36.6% | | BBB | $1,788 | 7.4% | | Below investment grade | $1,757 | 7.3% | | Total | $24,214 | 100.0% | [Corporate Segment](index=74&type=section&id=Corporate%20Segment) Corporate Segment Results: Income (loss) from continuing operations before income taxes (in millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total revenues | $14 | $27 | $30 | $58 | | Total expenses | $34 | $31 | $65 | $71 | | Income (loss) from continuing operations before income taxes | $(20) | $(4) | $(35) | $(13) | - Net gains (losses) on financial instruments at fair value and foreign exchange included foreign currency losses of **$9 million** (3 months) and **$13 million** (6 months) in 2025 due to the U.S. dollar weakening against the euro[226](index=226&type=chunk) [International and Structured Finance Insurance Segment](index=76&type=section&id=International%20and%20Structured%20Finance%20Insurance%20Segment) - MBIA Corp.'s total insured gross par outstanding was **$2.2 billion** as of June 30, 2025[228](index=228&type=chunk) International and Structured Finance Insurance Segment Results: Income (loss) from continuing operations before income taxes (in millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total revenues | $6 | $(63) | $10 | $(85) | | Total expenses | $48 | $56 | $99 | $103 | | Income (loss) from continuing operations before income taxes | $(42) | $(119) | $(89) | $(188) | - The net loss for the six months ended June 30, 2025, from financial instruments at fair value and foreign exchange was primarily due to the reclassification of foreign currency translation losses from AOCI due to the liquidation of a foreign subsidiary[232](index=232&type=chunk) - Consolidated VIE revenue for the six months ended June 30, 2025, was a gain of **$7 million** from a litigation trust, compared to losses in 2024 primarily from reclassification of credit risk losses due to early redemptions and deconsolidation[233](index=233&type=chunk) - For the three and six months ended June 30, 2025, losses and LAE incurred primarily related to a decrease in risk-free rates used to discount loss reserves and accretion of loss reserves on insured RMBS transactions[234](index=234&type=chunk) Insurance Loss Recoverable and Loss and LAE Reserves (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Insurance loss recoverable | $21 | $20 | | Loss and LAE reserves | $231 | $227 | - As of June 30, 2025, **25%** of the international and structured finance insured portfolio was rated below investment grade, primarily first-lien RMBS exposures[240](index=240&type=chunk) - MBIA Corp. had **$532 million** of first-lien RMBS gross par outstanding as of June 30, 2025[242](index=242&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=81&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) - The company uses a liquidity risk management framework, including cash forecasting and stress-scenario testing, managed on a legal-entity basis[247](index=247&type=chunk) Consolidated Cash Flows (6 months ended June 30, in millions) | Metric | 2025 | 2024 | Percent Change | | :------------------------------------------ | :----- | :----- | :------------- | | Net cash provided (used) by operating activities | $(42) | $(40) | 5% | | Net cash provided (used) by investing activities | $138 | $253 | -45% | | Net cash provided (used) by financing activities | $(16) | $(123) | -87% | | Cash and cash equivalents - end of period | $167 | $198 | -16% | - Net cash used by operating activities increased due to payments for non-qualified deferred compensation and less investment income, partially offset by lower net losses/LAE and interest expense paid[249](index=249&type=chunk) - Net cash provided by investing activities decreased due to higher net proceeds from investment sales in 2024 to fund debt payments[250](index=250&type=chunk) - Net cash used by financing activities decreased due to repurchase of GFL MTNs and early redemption of VIE debt in 2024[251](index=251&type=chunk) - The company's AFS fixed-maturity investment portfolio had a weighted average credit quality rating of **A**, with **95%** investment grade as of June 30, 2025[253](index=253&type=chunk) - National held **$1.2 billion** in cash and investments as of June 30, 2025, and had statutory capital of **$914 million**. It was not in compliance with certain single risk limits, which could prevent new business[258](index=258&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) National Claims-Paying Resources (CPR) (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Policyholders' surplus | $616 | $602 | | Contingency reserves | $298 | $310 | | Statutory capital | $914 | $912 | | Unearned premiums | $196 | $208 | | Present value of installment premiums | $94 | $95 | | Premium resources | $290 | $303 | | Net loss and LAE reserves | $127 | $130 | | Salvage reserves on paid claims | $159 | $162 | | Gross loss and LAE reserves | $286 | $292 | | Total claims-paying resources | $1,490 | $1,507 | - MBIA Corp. held **$230 million** in cash and investments as of June 30, 2025, and had statutory capital of **$92 million**. It had a negative unassigned surplus of **$1.9 billion** and was not in compliance with certain single risk limits. NYSDFS has not approved interest payments on its Surplus Notes since January 2013[267](index=267&type=chunk)[280](index=280&type=chunk)[281](index=281&type=chunk)[283](index=283&type=chunk) MBIA Insurance Corporation Claims-Paying Resources (CPR) (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Policyholders' surplus | $87 | $83 | | Contingency reserves | $5 | $5 | | Statutory capital | $92 | $88 | | Unearned premiums | $18 | $21 | | Present value of installment premiums | $17 | $20 | | Premium resources | $35 | $41 | | Net loss and LAE reserves | $43 | $57 | | Salvage reserves on paid claims | $176 | $170 | | Gross loss and LAE reserves | $219 | $227 | | Total claims-paying resources | $346 | $356 | [CRITICAL ACCOUNTING ESTIMATES](index=93&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) - The company's most critical accounting estimates, requiring significant judgment, include loss and LAE reserves and the valuation of financial instruments[287](index=287&type=chunk) [RECENT ACCOUNTING PRONOUNCEMENTS](index=93&type=section&id=RECENT%20ACCOUNTING%20PRONOUNCEMENTS) - This section refers to Note 3 for a discussion of new accounting pronouncements and their potential impact on the consolidated financial statements[289](index=289&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=95&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk exposures from interest rates, foreign exchange, and credit spreads are actively managed, with no material changes observed since December 31, 2024 - Market risk exposures include changes in interest rates, foreign exchange rates, and credit spreads affecting investment securities, MTNs, and investment agreement liabilities[290](index=290&type=chunk) - The company minimizes exposure through active portfolio management, ensuring a proper mix of securities and staggering maturities[290](index=290&type=chunk) - No material changes in market risk related to interest rates, foreign exchange rates, and credit spreads were observed since December 31, 2024[290](index=290&type=chunk) [Item 4. Controls and Procedures](index=95&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[291](index=291&type=chunk) - No material changes in the company's internal control over financial reporting occurred during the fiscal quarter[291](index=291&type=chunk) [PART II – OTHER INFORMATION](index=96&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=96&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 for a discussion of the company's litigation, primarily the ongoing PREPA Title III proceedings, with no other material legal matters pending - The company's litigation and related matters are discussed in Note 12, primarily focusing on PREPA's Title III proceedings[294](index=294&type=chunk) - There are no other material legal proceedings pending or, to the knowledge of the Company, threatened[294](index=294&type=chunk) [Item 1A. Risk Factors](index=96&type=section&id=Item%201A.%20Risk%20Factors) This section supplements risk factors, highlighting potential increased credit losses on public finance obligations due to fiscal stress, particularly concerning PREPA's bankruptcy-like proceedings - Fiscal stress in state, local, and territorial governments could lead to increased credit losses or impairments on public finance obligations[296](index=296&type=chunk)[297](index=297&type=chunk) - PREPA remains in a bankruptcy-like proceeding under PROMESA. National had **$657 million** of insured debt service outstanding related to PREPA as of June 30, 2025, and paid **$13 million** and **$92 million** in gross claims on January 1 and July 1, 2025, respectively[298](index=298&type=chunk)[299](index=299&type=chunk) - There is no assurance that a plan substantially similar to National's settlement for PREPA will ultimately be confirmed, which could materially adversely affect National's PREPA loss reserves and recoveries[300](index=300&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=98&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company made no equity security repurchases in Q2 2025, under a **$100 million** share repurchase program approved on May 3, 2023 - The company did not purchase any shares in April, May, or June 2025[302](index=302&type=chunk) - A share repurchase program authorizing up to **$100 million** in share repurchases was approved on May 3, 2023[302](index=302&type=chunk) [Item 6. Exhibits](index=99&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q report, including CEO and CFO certifications and XBRL documents - Exhibits include CEO and CFO certifications pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002[306](index=306&type=chunk) - XBRL documents, including the instance document, taxonomy extension schema, and cover page interactive data file, are filed[306](index=306&type=chunk) [SIGNATURES](index=100&type=section&id=SIGNATURES) - The report was signed by Joseph R. Schachinger, Chief Financial Officer, on August 6, 2025[308](index=308&type=chunk)

FORM 8-K Filing Information This section provides administrative and disclosure details of the Form 8-K filing [Registrant and Filing Details](index=1&type=section&id=Registrant%20and%20Filing%20Details) This section details the registrant's name, filing date, and registered securities for the Form 8-K filing - **MBIA Inc.** is the registrant[2](index=2&type=chunk) - The report date and earliest event reported is **August 06, 2025**[2](index=2&type=chunk) Registered Securities | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock | MBI | New York Stock Exchange | [Results of Operations and Financial Condition (Item 2.02)](index=3&type=section&id=Results%20of%20Operations%20and%20Financial%20Condition%20(Item%202.02)) MBIA Inc. announced its second quarter 2025 results through a press release and a financial report - MBIA Inc. issued a press release on **August 6, 2025**, detailing Q2 2025 results[7](index=7&type=chunk) - The financial results report is attached as **Exhibit 99.1** and available on the registrant's website[7](index=7&type=chunk) [Regulation FD Disclosure (Item 7.01)](index=3&type=section&id=Regulation%20FD%20Disclosure%20(Item%207.01)) MBIA Inc. will post additional financial and operational information, including a Quarterly Operating Supplement and subsidiary statutory statements, on its website - On **August 6, 2025**, MBIA will post a Quarterly Operating Supplement for Q2 2025 and 2025 Quarterly Statements for MBIA Insurance Corporation and National Public Finance Guarantee Corporation on its website[9](index=9&type=chunk) - The Company's insured portfolios as of **June 30, 2025**, will also be posted under the 'Insured Portfolio' section[9](index=9&type=chunk) [Financial Statements and Exhibits (Item 9.01)](index=3&type=section&id=Financial%20Statements%20and%20Exhibits%20(Item%209.01)) This section lists the exhibits filed with the Form 8-K, primarily the Second Quarter 2025 Financial Results and the interactive data file - Exhibit 99.1: Second Quarter 2025 Financial Results issued by MBIA Inc., dated **August 6, 2025**[10](index=10&type=chunk) - Exhibit 104: Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document[10](index=10&type=chunk) [Signatures](index=4&type=section&id=Signatures) The report was officially signed on behalf of MBIA Inc. by its Co-General Counsel, William J. Rizzo, on August 6, 2025 - The report was signed by **William J. Rizzo**, Co-General Counsel of MBIA Inc., on **August 6, 2025**[14](index=14&type=chunk) Second Quarter 2025 Financial Results Highlights This section summarizes MBIA Inc.'s consolidated GAAP and non-GAAP financial performance, along with book value per share, for Q2 and H1 2025 [Consolidated GAAP Results](index=5&type=section&id=Consolidated%20GAAP%20Results) MBIA Inc. reported a significant reduction in its consolidated GAAP net loss for both the second quarter and the first six months of 2025 compared to the prior year periods [Quarterly Performance (Q2 2025 vs Q2 2024)](index=5&type=section&id=Quarterly%20Performance%20(Q2%202025%20vs%20Q2%202024)) For the second quarter of 2025, MBIA Inc. recorded a GAAP net loss of $56 million, a substantial improvement from the $254 million net loss in Q2 2024 Consolidated GAAP Net Loss (Q2 YoY) | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | Change (Favorable) (million USD) | | :-------- | :-------------------- | :-------------------- | :------------------------------- | | Net Loss | $(56) | $(254) | $(198) | | Per Share | $(1.12) | $(5.34) | $(4.22) | - The favorable variance was primarily due to lower losses and loss adjustment expenses (LAE) at National Public Finance Guarantee Corporation (National) and lower investment and Variable Interest Entity (VIE) losses at MBIA Insurance Corporation (MBIA Corp.)[15](index=15&type=chunk) - Lower losses and LAE at National largely resulted from a decrease in losses on its Puerto Rico Electric Power Authority (PREPA) exposure[15](index=15&type=chunk) [Year-to-Date Performance (H1 2025 vs H1 2024)](index=5&type=section&id=Year-to-Date%20Performance%20(H1%202025%20vs%20H1%202024)) For the first six months of 2025, the consolidated GAAP net loss was $118 million, a significant improvement from $340 million in H1 2024 Consolidated GAAP Net Loss (H1 YoY) | Metric | H1 2025 (million USD) | H1 2024 (million USD) | Change (Favorable) (million USD) | | :-------------- | :-------------------- | :-------------------- | :------------------------------- | | Net Loss | $(118) | $(340) | $(222) | | Per Diluted Share | $(2.40) | $(7.21) | $(4.81) | - The lower net loss for 2025 was primarily due to higher losses and LAE at National for 2024 associated with its PREPA exposure, greater investment losses at MBIA Corp. for 2024, and greater VIE losses at MBIA Corp. for 2024[19](index=19&type=chunk) [Adjusted Net Income (Loss) (Non-GAAP)](index=5&type=section&id=Adjusted%20Net%20Income%20(Loss)%20(Non-GAAP)) MBIA Inc. reported a substantially lower Adjusted Net Loss (a non-GAAP measure) for both the second quarter and year-to-date periods of 2025 [Quarterly Performance (Q2 2025 vs Q2 2024)](index=5&type=section&id=Quarterly%20Performance%20(Q2%202025%20vs%20Q2%202024)) For Q2 2025, the Adjusted Net Loss was $8 million, a significant improvement from $138 million in Q2 2024 Adjusted Net Loss (Non-GAAP, Q2 YoY) | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | Change (Favorable) (million USD) | | :---------------- | :-------------------- | :-------------------- | :------------------------------- | | Adjusted Net Loss | $(8) | $(138) | $(130) | | Per Diluted Share | $(0.17) | $(2.90) | $(2.73) | - The lower net loss was primarily due to reduced loss and LAE expense at National largely due to its PREPA exposure[17](index=17&type=chunk) [Year-to-Date Performance (H1 2025 vs H1 2024)](index=6&type=section&id=Year-to-Date%20Performance%20(H1%202025%20vs%20H1%202024)) For the first six months of 2025, the Adjusted Net Loss was $16 million, a substantial improvement from $162 million in H1 2024 Adjusted Net Loss (Non-GAAP, H1 YoY) | Metric | H1 2025 (million USD) | H1 2024 (million USD) | Change (Favorable) (million USD) | | :---------------- | :-------------------- | :-------------------- | :------------------------------- | | Adjusted Net Loss | $(16) | $(162) | $(146) | | Per Diluted Share | $(0.33) | $(3.44) | $(3.11) | - The lower net loss was primarily due to reduced loss and LAE expense at National largely due to its PREPA exposure[20](index=20&type=chunk) [Book Value Per Share](index=5&type=section&id=Book%20Value%20Per%20Share) MBIA Inc.'s book value per share decreased to negative $43.14 as of June 30, 2025, from negative $40.99 at year-end 2024 Book Value Per Share | Date | Book Value Per Share (USD) | | :-------------- | :------------------------- | | June 30, 2025 | $(43.14) | | December 31, 2024 | $(40.99) | - The decrease in book value per share since year-end 2024 was primarily due to the net loss for the first six months of 2025[16](index=16&type=chunk) Segment and Company-Level Financials This section provides a detailed overview of the financial positions and key metrics for MBIA Inc. (Holding Company), National Public Finance Guarantee Corporation, and MBIA Insurance Corporation as of June 30, 2025 [MBIA Inc. (Holding Company)](index=6&type=section&id=MBIA%20Inc.%20(Holding%20Company)) As of June 30, 2025, MBIA Inc. maintained a liquidity position of $355 million and did not repurchase any shares during the second quarter - MBIA Inc.'s liquidity position totaled **$355 million** as of **June 30, 2025**, consisting of cash and cash equivalents and liquid invested assets[21](index=21&type=chunk) - There were no purchases of

Group 1 - Cable One's stock price has decreased by over 90% in recent years [1] - The withdrawal of the dividend in early May resulted in a single-day drop of over 40% [1] - Increased competition from fixed-wireless services is a significant factor contributing to the company's decline [1]

Financial Data and Key Metrics Changes - The company reported a consolidated GAAP net loss of $62 million or a negative $1.28 per share for Q1 2025, compared to a net loss of $86 million or a negative $1.84 per share for Q1 2024, indicating an improvement in financial performance [10][6] - The adjusted net loss for Q1 2025 was $8 million or a negative $0.16 per share, compared to an adjusted net loss of $24 million or a negative $0.52 per share for Q1 2024, reflecting a favorable change primarily due to lower losses in LAE [12][10] - Book value per share decreased by $1.23 to a negative $42.22 as of March 31, 2025, from a negative $40.99 as of December 31, 2024, primarily due to the consolidated net loss [13] Business Line Data and Key Metrics Changes - National reported statutory net income of $4 million for Q1 2025, compared to a statutory net loss of $11 million for Q1 2024, driven by lower losses in LAE related to PREPA exposure [15][16] - MBIA Insurance Corp reported statutory net income of $2 million for Q1 2025, compared to a statutory net loss of $35 million for Q1 2024, also due to lower losses in LAE [16][17] - The gross par amount outstanding for National's insured portfolio declined by approximately $500 million from year-end 2024 to about $25 billion as of March 31, 2025 [7] Market Data and Key Metrics Changes - National's leverage ratio of gross par to statutory capital was 27 to 1 at the end of Q1 2025, with total claims paying resources of $1.5 billion and statutory capital surplus in excess of $900 million [8][7] - Claims paying resources for MBIA Insurance Corp totaled $349 million as of March 31, 2025, down from $356 million at year-end 2024 [18] Company Strategy and Development Direction - The company continues to prioritize resolving National's PREPA exposure, with the path and timing of resolution remaining uncertain, and believes that reducing uncertainty regarding PREPA is essential for maximizing shareholder value [7][6] - The management is optimistic about moving into a different phase regarding PREPA, as various parties are expected to come together to address the situation [24][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the complexity of the PREPA situation and emphasized ongoing conversations in Washington, D.C., while expressing cautious optimism about the court schedule moving key litigation issues forward [22][24] - The overall portfolio is performing within expectations, with no significant concerns or further write-offs anticipated outside of the PREPA situation [25][22] Other Important Information - The corporate segment had total assets of approximately $685 million as of March 31, 2025, including $378 million in unencumbered cash and liquid assets [14] Q&A Session Summary Question: What is being done politically to resolve the PREPA situation? - Management highlighted that fixing PREPA is a top priority for Governor Gonzalez and that they are engaged in conversations in D.C. to facilitate resolution [22][23] Question: Are there concerns regarding National's other credits or potential write-offs? - Management confirmed that the portfolio is performing within expectations and that PREPA is the primary focus [25][22]

Financial Data and Key Metrics Changes - The company reported a consolidated GAAP net loss of $62 million or a negative $1.28 per share for Q1 2025, compared to a net loss of $86 million or a negative $1.84 per share for Q1 2024, indicating an improvement in financial performance [10][6] - The adjusted net loss for Q1 2025 was $8 million or a negative $0.16 per share, compared to an adjusted net loss of $24 million or a negative $0.52 per share for Q1 2024, reflecting a favorable change primarily due to lower losses in LAE [12][10] - The book value per share decreased by $1.23 to a negative $42.22 as of March 31, 2025, from a negative $40.99 as of December 31, 2024, primarily due to the consolidated net loss [13] Business Line Data and Key Metrics Changes - National reported statutory net income of $4 million for Q1 2025, compared to a statutory net loss of $11 million for Q1 2024, driven by lower losses in LAE related to PREPA exposure [15][16] - MBIA Insurance Corp reported statutory net income of $2 million for Q1 2025, compared to a statutory net loss of $35 million for Q1 2024, also due to lower losses in LAE [16][17] - The gross par amount outstanding for National's insured portfolio declined by approximately $500 million from year-end 2024 to about $25 billion as of March 31, 2025 [7] Market Data and Key Metrics Changes - National's leverage ratio of gross par to statutory capital was 27 to 1 at the end of Q1 2025, with total claims paying resources of $1.5 billion and statutory capital surplus in excess of $900 million [8][7] - Claims paying resources for MBIA Insurance Corp totaled $349 million as of March 31, 2025, down from $356 million at year-end 2024 [18] Company Strategy and Development Direction - The company continues to prioritize resolving National's PREPA exposure, which remains uncertain, with ongoing litigation expected to facilitate resolution [7][22] - The management believes that reducing uncertainty regarding PREPA is essential for maximizing shareholder value through the potential sale of the company [7] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the PREPA situation, noting that various parties need to come together to resolve the ongoing issues [24][22] - The company indicated that the overall portfolio is performing within expectations, with no immediate concerns regarding further write-offs outside of PREPA [25] Other Important Information - The corporate segment had total assets of approximately $685 million as of March 31, 2025, including $378 million in unencumbered cash and liquid assets [14] Q&A Session Summary Question: Inquiry about the political process surrounding PREPA - The question highlighted the political complexities and the need for resolution regarding PREPA, questioning the lack of progress despite favorable political leadership [20][21] Response: Management's perspective on PREPA - Management acknowledged the political aspects and emphasized that fixing PREPA is a top priority for the governor, with ongoing discussions in Washington, D.C. [22][23] Question: Concerns about other credits and potential write-offs - The question sought clarification on whether there are concerns regarding other credits in the portfolio [25] Response: Assurance on portfolio performance - Management confirmed that the portfolio is performing as expected, with PREPA being the primary focus of attention [25]