MBIA, Inc. (NYSE:MBI) Q1 2022 Earnings Conference Call May 10, 2022 8:00 AM ET Company Participants Greg Diamond - Managing Director of Investor & Media Relations Bill Fallon - Chief Executive Officer Anthony McKiernan - Executive Vice President & Chief Financial Officer Conference Call Participants Tommy McJoynt - KBW John Staley - Staley Capital Advisement. Operator Welcome to the MBIA Incorporated First Quarter 2022 Financial Results Conference Call. I would now like to turn the call over to Greg Diamon ...

Financial Data and Key Metrics Changes - The company reported a consolidated GAAP net loss of $155 million or a negative $3.21 per share for Q4 2021, compared to a net loss of $80 million or negative $1.64 per share for Q4 2020, primarily due to lower VIE revenues and higher Puerto Rico losses [10][15] - For the full year 2021, the consolidated GAAP net loss was $445 million or negative $8.99 per share, an improvement from a net loss of $578 million or negative $9.78 per share in 2020, driven by lower loss in LAE expenses and gains on financial instruments [15][16] - The adjusted net loss for Q4 2021 was $106 million or negative $2.13 per diluted share, compared to an adjusted net loss of $36 million or negative $0.74 per diluted share for Q4 2020 [14] Business Line Data and Key Metrics Changes - National's insured portfolio outstanding gross par reduced to $36.5 billion as of December 31, 2021, down $5.4 billion from year-end 2020, with a leverage ratio of gross par to statutory capital at 18:1 [9] - National reported statutory net income of $5.5 million for Q4 2021, down from $41 million in Q4 2020, while for the full year, statutory net income was $55 million compared to a statutory net loss of $82 million in 2020 [18][19] - MBIA Insurance Corp. reported a statutory net loss of $40 million for Q4 2021, an improvement from a net loss of $54 million in Q4 2020, and a statutory net loss of $129 million for the full year, down from $202 million in 2020 [20] Market Data and Key Metrics Changes - National's total fixed income investment portfolio had a book adjusted carrying value of $1.9 billion as of December 31, 2021, with statutory capital at $2 billion and claims paying resources totaling $3 billion [19] - The company had remaining PREPA exposure of $809 million of gross par at year-end, with approximately 35% of its par claims monetized through sales [8][9] Company Strategy and Development Direction - The resolution of Puerto Rico exposures remains a primary focus, with the Oversight Board making progress on restructuring the Highway and Transportation Authority debt [6][7] - The company is considering strategic objectives that may include a potential sale of the company and/or requests for special distributions from National to MBIA Inc. [8] - The corporate segment aims to reduce risk in the portfolio to a normal runoff mode, with a focus on the Zohar CLOs and improving liquidity [32][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the resolution of Puerto Rico credits, indicating that the company does not need to resolve all obligations to sell the company [39] - The company is continuously analyzing potential sale opportunities and is not waiting for a specific event to pursue strategic options [41] Other Important Information - The book value per share decreased to negative $5.73 as of December 31, 2021, primarily due to the fiscal year net loss of $445 million [16] - The holding company received a $60 million as-of-right dividend from National in Q4 2021 [18] Q&A Session Summary Question: Status of the PREPA deal and potential scenarios - Management indicated that the Puerto Rican legislature is not inclined to approve the deal, and mediation has been requested by creditors [23][24] Question: Plans for cash proceeds from PREPA claims - The cash proceeds will add to investable assets, generating additional investment income and increasing dividend capacity [25][26] Question: Excess capital and potential special dividends - Management noted that calculating special distributions requires a case-by-case analysis rather than a general leverage ratio approach [27][28] Question: MBIA Insurance Corp. and regulatory responsibilities - Management clarified that they have fiduciary responsibilities to policyholders and aim to reduce risk in the portfolio without entering regulatory rehabilitation [30][31] Question: Strategic acquisition considerations - Management believes that potential acquirers can add value and that the remaining portfolio is nearing the end of its runoff phase [36]

MBIA Inc. (NYSE:MBI) Q3 2021 Earnings Conference Call November 4, 2021 8:00 AM ET Company Participants Greg Diamond - Managing Director, Investor & Media Relations Bill Fallon - CEO Anthony McKiernan - EVP and CFO Conference Call Participants Tommy McJoynt - KBW John Staley - Staley Capital Paul Saunders - Hutch Capital Geoffrey Dunn - Dowling and Partners Operator Welcome to the MBIA Inc. Third Quarter 2021 Financial Results Conference Call. I would now like to turn the call over to Greg Diamond, Managing ...

MBIA Inc. (NYSE:MBI) Q2 2021 Earnings Conference Call August 5, 2021 8:00 AM ET Company Representatives Bill Fallon - Chief Executive Office Anthony McKiernan - Executive Vice President & Chief Financial Officer Greg Diamond - Managing Director, Investor & Media Relations Conference Call Participants Tommy McJoynt - KBW John Staley - Staley Capital Advisers Operator Welcome to the MBIA Inc. Second Quarter 2021 Financial Results Conference Call. I would now like to turn the call over to Greg Diamond, Managi ...

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents MBIA Inc.'s unaudited consolidated financial statements for the quarter ended June 30, 2021, highlighting a $61 million net loss and a decrease in total assets to $5.3 billion [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) MBIA Inc.'s balance sheet as of June 30, 2021, shows total assets decreased to $5.25 billion, total liabilities to $5.28 billion, and shareholders' equity shifted to a $36 million deficit Consolidated Balance Sheet Highlights (in millions) | Metric | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | $5,252 | $5,751 | | **Total Liabilities** | $5,275 | $5,602 | | **Total Shareholders' Equity of MBIA Inc.** | $(36) | $136 | | Cash and cash equivalents | $342 | $158 | | Total investments | $2,797 | $2,736 | | Loss and loss adjustment expense reserves | $954 | $990 | | Long-term debt | $2,283 | $2,229 | - A significant change in assets was the settlement of 'Loan repurchase commitments', which were valued at **$604 million** as of December 31, 2020, and are **zero** as of June 30, 2021[12](index=12&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) MBIA reported a net loss of $61 million for Q2 2021, an improvement from a $106 million loss in Q2 2020, primarily due to significantly lower loss adjustment expenses Statement of Operations Highlights (in millions, except per share data) | Metric | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $18 | $114 | $90 | $108 | | Losses and loss adjustment | $9 | $136 | $107 | $379 | | Total Expenses | $79 | $220 | $257 | $547 | | **Net Income (Loss)** | **$(61)** | **$(106)** | **$(167)** | **$(439)** | | **Diluted EPS** | **$(1.23)** | **$(1.69)** | **$(3.38)** | **$(6.51)** | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) The company reported comprehensive income of $3 million for Q2 2021, a significant turnaround from a $68 million comprehensive loss in Q2 2020, driven by unrealized gains on available-for-sale securities Comprehensive Income (Loss) Summary (in millions) | Metric | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $(61) | $(106) | $(167) | $(439) | | Total other comprehensive income (loss) | $64 | $38 | $(12) | $131 | | **Comprehensive income (loss)** | **$3** | **$(68)** | **$(179)** | **$(308)** | [Consolidated Statement of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Shareholders%27%20Equity) MBIA Inc.'s total shareholders' equity decreased by $172 million to a $36 million deficit for the six months ended June 30, 2021, primarily due to a net loss and accumulated other comprehensive income losses - Total shareholders' equity of MBIA Inc. declined from **$136 million** at the beginning of the period to a deficit of **$(36) million** at the end of the six months ended June 30, 2021[21](index=21&type=chunk) - The company did not repurchase any shares under its share repurchase program in the first six months of 2021, compared to acquiring **17.8 million shares** for **$136 million** in the same period of 2020[21](index=21&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to $545 million for H1 2021, driven by $600 million from loan repurchase commitments, while investing and financing cash flows saw notable shifts Cash Flow Summary (in millions) | Cash Flow Activity | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Net cash provided (used) by operating activities | $545 | $(89) | | Net cash provided (used) by investing activities | $(110) | $941 | | Net cash provided (used) by financing activities | $(255) | $(481) | | **Net increase (decrease) in cash** | **$180** | **$371** | - A key driver for the positive operating cash flow in H1 2021 was the receipt of **$600 million** from the settlement of loan repurchase commitments[24](index=24&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed explanations of the company's financial position and performance, covering business developments, litigation settlements, COVID-19 risks, loss reserves, fair value measurements, and segment performance [Note 1: Business Developments and Risks and Uncertainties](index=9&type=section&id=Note%201%3A%20Business%20Developments%20and%20Risks%20and%20Uncertainties) This note details significant business events and risks, including Puerto Rico debt restructuring, a $600 million Credit Suisse litigation settlement, and ongoing uncertainties from the COVID-19 pandemic - National paid aggregate gross claims of **$277 million** in H1 2021 related to defaults on its insured Puerto Rico bonds[28](index=28&type=chunk) - As of June 30, 2021, National had **$2.9 billion** of debt service outstanding related to Puerto Rico[28](index=28&type=chunk) - In February 2021, MBIA Corp. received a **$600 million** settlement payment from Credit Suisse, resolving litigation over ineligible loans in an RMBS transaction[34](index=34&type=chunk) - The company continues to assess the financial impact of the COVID-19 pandemic, noting that adverse macroeconomic factors could materially affect the performance of its insured portfolios, particularly those sensitive to economic slowdowns[38](index=38&type=chunk) [Note 4: Variable Interest Entities](index=13&type=section&id=Note%204%3A%20Variable%20Interest%20Entities) This note details the company's involvement with Variable Interest Entities (VIEs), reporting consolidated VIE assets of $218 million and liabilities of $450 million, with a maximum exposure to loss of $3.2 billion for nonconsolidated VIEs Consolidated VIEs (in millions) | Metric | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Assets of consolidated VIEs | $218 | $830 | | Liabilities of consolidated VIEs | $450 | $623 | - The company's maximum exposure to loss for nonconsolidated VIEs was **$3.2 billion** as of June 30, 2021, down from **$4.3 billion** at year-end 2020[65](index=65&type=chunk)[67](index=67&type=chunk) - This exposure is primarily related to financial guarantees on global structured finance obligations[65](index=65&type=chunk)[67](index=67&type=chunk) [Note 5: Loss and Loss Adjustment Expense Reserves](index=15&type=section&id=Note%205%3A%20Loss%20and%20Loss%20Adjustment%20Expense%20Reserves) This note details the methodology for estimating loss reserves, which decreased to $954 million, and insurance loss recoverable, which decreased to $1.56 billion, influenced by Puerto Rico and structured finance exposures Loss and LAE Reserves and Recoveries (in millions) | Metric | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Loss and LAE reserves** | **$954** | **$990** | | U.S. Public Finance | $484 | $469 | | International & Structured Finance | $470 | $521 | | **Insurance loss recoverable** | **$1,561** | **$1,677** | | U.S. Public Finance | $1,226 | $1,220 | | International & Structured Finance | $335 | $457 | - For the six months ended June 30, 2021, loss and LAE reserves declined primarily due to payments on Puerto Rico exposures and the impact of higher risk-free rates on RMBS reserves, partially offset by unfavorable changes in recovery assumptions for Puerto Rico[89](index=89&type=chunk) - The 'Classified List' surveillance category contains the vast majority of risk, with **$4.3 billion** in gross insured contractual payments outstanding and a gross claim liability of **$983 million** as of June 30, 2021[99](index=99&type=chunk) [Note 6: Fair Value of Financial Instruments](index=20&type=section&id=Note%206%3A%20Fair%20Value%20of%20Financial%20Instruments) This note details the fair value measurement of financial instruments, with total assets at $3.36 billion and liabilities at $566 million as of June 30, 2021, including significant Level 3 valuations Fair Value Hierarchy Summary as of June 30, 2021 (in millions) | Category | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | | **Total Assets at Fair Value** | $1,198 | $2,010 | $150 | $3,358 | | **Total Liabilities at Fair Value** | $0 | $171 | $395 | $566 | - Level 3 assets decreased significantly from **$744 million** at year-end 2020 to **$150 million** at June 30, 2021, primarily due to the settlement of 'Loan repurchase commitments' which were valued at **$604 million**[140](index=140&type=chunk)[154](index=154&type=chunk) - The company elected the fair value option for certain financial instruments, including VIE loans and notes, resulting in a net loss of **$1 million** from these instruments for Q2 2021[165](index=165&type=chunk)[168](index=168&type=chunk) [Note 7: Investments](index=34&type=section&id=Note%207%3A%20Investments) This note details the company's investment portfolio, primarily available-for-sale fixed-maturity securities, with a fair value of $2.47 billion as of June 30, 2021, and no allowance for credit losses established Available-for-Sale (AFS) Investments as of June 30, 2021 (in millions) | Metric | Amount | | :--- | :--- | | Amortized Cost | $2,335 | | Gross Unrealized Gains | $146 | | Gross Unrealized Losses | $(8) | | **Fair Value** | **$2,473** | - As of June 30, 2021, **35 securities** were in an unrealized loss position for twelve months or longer[183](index=183&type=chunk) - The company concluded it does not have the intent to sell these securities and it is more likely than not that it would not have to sell them before recovery[184](index=184&type=chunk) - The company did not establish an allowance for credit losses for AFS securities as of June 30, 2021, nor did it purchase any credit-deteriorated assets during the first half of the year[188](index=188&type=chunk) [Note 8: Derivative Instruments](index=39&type=section&id=Note%208%3A%20Derivative%20Instruments) The company uses derivative instruments, primarily interest rate swaps and insured credit derivatives, with a total notional amount of $2.44 billion and a net liability fair value of $140 million as of June 30, 2021 Derivative Instruments Outstanding as of June 30, 2021 (in millions) | Instrument Type | Notional Amount | Fair Value Asset | Fair Value Liability | | :--- | :--- | :--- | :--- | | Insured swaps | $1,719 | $0 | $(1) | | Interest rate swaps | $427 | $1 | $(139) | | Interest rate swaps-embedded | $243 | $0 | $(9) | | Currency swaps-VIE | $51 | $8 | $0 | | **Total** | **$2,440** | **$9** | **$(149)** | - As of June 30, 2021, the company had posted securities with a fair value of **$166 million** as collateral to derivative counterparties[207](index=207&type=chunk) [Note 10: Business Segments](index=42&type=section&id=Note%2010%3A%20Business%20Segments) MBIA operates in U.S. Public Finance, Corporate, and International/Structured Finance segments, with Q2 2021 showing U.S. Public Finance income of $57 million and losses in Corporate and International segments Segment Income (Loss) Before Income Taxes for Q2 2021 (in millions) | Segment | Q2 2021 | Q2 2020 | | :--- | :--- | :--- | | U.S. Public Finance Insurance | $57 | $(27) | | Corporate | $(19) | $(19) | | International and Structured Finance Insurance | $(97) | $(60) | | Eliminations | $(2) | $0 | | **Consolidated** | **$(61)** | **$(106)** | - The U.S. Public Finance segment's profitability in Q2 2021 was driven by a significant benefit from 'Losses and loss adjustment' of **$(42) million**, compared to an expense of **$72 million** in Q2 2020[237](index=237&type=chunk)[239](index=239&type=chunk) [Note 13: Commitments and Contingencies](index=48&type=section&id=Note%2013%3A%20Commitments%20and%20Contingencies) This note updates significant legal matters, including a $600 million Credit Suisse settlement, ongoing lawsuits related to Lynn Tilton, and complex legal proceedings concerning Puerto Rico's debt restructuring - The litigation `MBIA Insurance Corp. v. Credit Suisse` was settled in February 2021, with Credit Suisse paying MBIA Corp. **$600 million**[255](index=255&type=chunk) - Multiple legal proceedings involving Lynn Tilton and the Zohar Funds remain active, including claims of fraudulent inducement and equitable subordination[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[259](index=259&type=chunk) - The company is deeply involved in litigation related to the Puerto Rico debt crisis, with active cases concerning PREPA, PBA, HTA, and GO bonds[260](index=260&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[271](index=271&type=chunk) - Many of these are stayed pending restructuring negotiations and court approvals[260](index=260&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[271](index=271&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results, covering COVID-19 impacts, Puerto Rico restructurings, the Credit Suisse settlement, non-GAAP measures, segment performance, capital resources, and liquidity management [Executive Overview](index=53&type=section&id=Executive%20Overview) The executive overview highlights continued COVID-19 uncertainty, key business developments including $277 million in Puerto Rico claims and a $600 million Credit Suisse settlement, and a Q2 2021 GAAP net loss of $61 million - National paid **$277 million** in gross claims on defaulted Puerto Rico bonds during the first half of 2021[289](index=289&type=chunk) - MBIA Corp. received a **$600 million** settlement from Credit Suisse in February 2021[293](index=293&type=chunk) Financial Highlights (in millions) | Metric | Q2 2021 | Q2 2020 | | :--- | :--- | :--- | | Net income (loss) | $(61) | $(106) | | Adjusted net income (loss) (Non-GAAP) | $37 | $(72) | [Results of Operations](index=57&type=section&id=Results%20of%20Operations) This section details financial results, showing an improved Q2 2021 consolidated net loss of $61 million due to lower insurance loss expenses, and introduces non-GAAP measures like Adjusted Net Income and Adjusted Book Value - The decrease in consolidated total expenses for Q2 2021 was driven by a significant reduction in net insurance loss and LAE, which were **$9 million** compared to **$136 million** in Q2 2020[310](index=310&type=chunk) - The company uses non-GAAP Adjusted Net Income (ANI) which removes the results of the international segment and certain mark-to-market items[317](index=317&type=chunk) - For Q2 2021, ANI was **$37 million** versus a GAAP net loss of **$61 million**[318](index=318&type=chunk) - Management also uses Adjusted Book Value (ABV) per share, which adjusts GAAP book value for items like the negative book value of MBIA Corp and unrealized gains/losses[321](index=321&type=chunk) - GAAP book value per share was **$(0.66)** as of June 30, 2021[324](index=324&type=chunk) [Capital Resources](index=71&type=section&id=Capital%20Resources) The company's total capital resources were $1.3 billion as of June 30, 2021, with National's statutory capital stable at $2.0 billion and MBIA Insurance Corporation's capital decreasing to $160 million, alongside $1.1 billion in unpaid surplus note interest - The company's Board of Directors has no current authorization for share repurchases[413](index=413&type=chunk) - No shares were repurchased under the program in H1 2021[414](index=414&type=chunk) Statutory Claims-Paying Resources (CPR) (in millions) | Entity | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | National | $3,106 | $3,115 | | MBIA Insurance Corporation | $786 | $992 | - As of July 15, 2021, there was **$1.1 billion** of unpaid interest on MBIA Insurance Corporation's Surplus Notes due to non-approval from the NYSDFS[430](index=430&type=chunk) [Liquidity](index=75&type=section&id=Liquidity) The company manages liquidity on a legal-entity basis, with National holding $2.1 billion in cash and investments, MBIA Inc. at $238 million, and MBIA Corp.'s liquidity increasing to $664 million due to the Credit Suisse settlement Liquidity Position by Entity (in millions) | Entity | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | National (Cash & Investments) | $2,100 | Not Stated | | MBIA Inc. (Holding Co.) | $238 | $294 | | MBIA Corp. (Cash & Investments) | $664 | $243 | - Consolidated net cash provided by operating activities was **$545 million** for H1 2021, primarily due to the **$600 million** received from the Credit Suisse litigation settlement[451](index=451&type=chunk) - MBIA Inc. expects National to be its primary source of payments, but dividends are limited[442](index=442&type=chunk) - MBIA Inc. does not expect to receive dividends from MBIA Corp[442](index=442&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=79&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include interest rate, foreign exchange, and credit spread exposures, with no material changes reported since December 31, 2020 - The company's main market risks are interest rate, foreign exchange, and credit spread risks[462](index=462&type=chunk) - There were no material changes in market risk exposure since the year-end 2020 report[462](index=462&type=chunk) [Controls and Procedures](index=79&type=section&id=Item%204.%20Controls%20and%20Procedures) The company concluded its disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[463](index=463&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are likely to materially affect, these controls[463](index=463&type=chunk) [PART II OTHER INFORMATION](index=80&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=80&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 13 for detailed discussion of the company's legal proceedings and related matters, with selected information available on the company's website - For details on legal proceedings, the report directs readers to Note 13 of the financial statements[465](index=465&type=chunk) [Risk Factors](index=80&type=section&id=Item%201A.%20Risk%20Factors) This section supplements risk factors, emphasizing ongoing fiscal stress for public finance issuers and significant risks from Puerto Rico exposures, including debt restructuring uncertainties - A key risk is the fiscal stress experienced by public finance issuers, which could lead to increased credit losses[467](index=467&type=chunk) - This is particularly acute for jurisdictions with underfunded pension liabilities[468](index=468&type=chunk) - The company highlights significant risk from its Puerto Rico exposure, where National had **$2.9 billion** of debt service outstanding as of June 30, 2021[471](index=471&type=chunk) - The company paid **$277 million** in claims on Puerto Rico bonds in H1 2021[471](index=471&type=chunk) - Uncertainty surrounds the effectiveness and timing of restructuring agreements for Puerto Rico's GO, PBA, HTA, and PREPA debt, which could materially impact National's losses[473](index=473&type=chunk)[474](index=474&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=81&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2021, the company repurchased a small number of shares in open market transactions related to its non-qualified deferred compensation plan, not as part of a publicly announced repurchase program Share Purchases in Q2 2021 | Month | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April | 86 | $10.00 | | May | 97 | $9.46 | | June | 86 | $10.51 | | **Total** | **269** | **$9.97** | - The shares purchased were related to the company's non-qualified deferred compensation plan and not part of a publicly announced share repurchase program[477](index=477&type=chunk) [Exhibits](index=82&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL interactive data files - The exhibits include certifications from the Chief Executive Officer and Chief Financial Officer as required by the Sarbanes-Oxley Act[478](index=478&type=chunk)[479](index=479&type=chunk)[480](index=480&type=chunk) - Interactive Data Files (XBRL) are also included as part of the filing[480](index=480&type=chunk)

Financial Data and Key Metrics Changes - The company reported a consolidated GAAP net loss of $106 million or a negative $2.16 per share for Q1 2021, an improvement from a net loss of $333 million or a negative $4.62 per share in Q1 2020 [9] - The adjusted net loss for Q1 2021 was $116 million or a negative $2.36 per diluted share, compared to an adjusted net loss of $47 million or negative $0.65 per diluted share in Q1 2020 [11] - Book value per share decreased to a negative $0.76 as of March 31, 2021, down from $2.55 as of December 31, 2020 [11] Business Line Data and Key Metrics Changes - National's insured portfolio gross par outstanding declined to $40.5 billion at March 31, 2021, down $1.4 billion from year-end 2020 [8] - National reported a statutory net loss of $35 million for Q1 2021, an improvement from a statutory net loss of $80 million in Q1 2020 [13] - MBIA Insurance Corp. had a statutory net loss of $34 million for Q1 2021, compared to a statutory net loss of $91 million in Q1 2020 [15] Market Data and Key Metrics Changes - The leverage ratio of National's gross par to statutory capital was 21:1 as of March 31, 2021 [8] - National's total fixed income investment portfolio had a book-adjusted carrying value of $2 billion as of March 31, 2021 [14] Company Strategy and Development Direction - The company has reached an agreement with the Oversight Board to resolve its Puerto Rico Highways and Transportation Authority exposure, indicating a focus on Puerto Rico credits as a top priority [6][24] - Management is considering strategic alternatives, including potential consolidation in the industry, and is likely to be a seller in the future [24] Management Comments on Operating Environment and Future Outlook - Management expressed hope that the process for implementing the restructuring support agreement for PREPA will regain momentum soon [7] - The company anticipates that the restructuring of Puerto Rico credits could be resolved by early to late 2022, although no specific dates are set [7][24] Other Important Information - The Corporate segment had total assets of approximately $900 million as of March 31, 2021, with unencumbered cash and liquid assets totaling $298 million [12] - Cash and liquid assets for MBIA Insurance Corp. increased to $503 million as of March 31, 2021, up from $130 million as of December 31, 2020 [15] Q&A Session Summary Question: What is the timeline for PREPA negotiations? - Management indicated there is no specific date set for PREPA negotiations but expects attention to turn towards it now that other agreements have been made [19] Question: Can you discuss the Board's thinking on potential buybacks at National? - National currently does not have the capacity to buy back shares due to regulatory constraints, but future capacity may open up depending on surplus increases or stock price decreases [22] Question: What actions are being considered to create value for shareholders in the interim? - The company is focused on executing Puerto Rico deals and expects the portfolio to continue to decline, which is seen as beneficial [24] Question: Are the settlement agreements consistent with Assured Guaranty? - Management confirmed that the agreements on HTA are consistent with those of Assured Guaranty [26]