MBIA (MBI) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for Q1 2025 were $14 million, a 7.7$13 million in Q1 2024[18] - Net income (loss) for Q1 2025 was $(62) million, compared to$(86) million in Q1 2024, representing a 27.9% improvement[20] - Total revenues for the three months ended March 31, 2025, were $14 million, a decrease of 61.76$34 million in the same period of 2024[154] - The company reported a net loss from continuing operations of $62 million for Q1 2025, compared to a net loss of$87 million in Q1 2024[163] - Basic and diluted earnings per share for continuing operations were $(1.28) in Q1 2025, improving from$(1.88) in Q1 2024[163] - The company incurred total expenses of $76 million in Q1 2025, a decrease from$100 million in Q1 2024[157] - For the three months ended March 31, 2025, adjusted net income was $(8) million, compared to$(24) million for the same period in 2024, representing a 67% improvement[185] Assets and Liabilities - Total assets as of March 31, 2025, were $2,132 million, down from$2,488 million as of March 31, 2024[157] - Total liabilities amounted to $3,397 million as of March 31, 2025, with long-term debt at$2,780 million[113] - The company’s total assets as of December 31, 2024, were $1,769 million, with fixed-maturity investments valued at$1,356 million[108] - The total liabilities as of December 31, 2024, were $3,360 million, indicating a slight increase in liabilities in the first quarter of 2025[114] - The company had total assets held for sale amounting to$11 million as of March 31, 2025[157] Investment Income - Net investment income decreased to $18 million in Q1 2025 from$23 million in Q1 2024, a decline of 21.7%[18] - Net investment income fell by 17% to $15 million in Q1 2025, compared to$18 million in Q1 2024, primarily due to a lower average invested asset base[193] Insurance Operations - Premiums earned in Q1 2025 were $8 million, down from$9 million in Q1 2024, a decrease of 11.1%[18] - The total insurance loss and loss adjustment expense (LAE) reserves as of March 31, 2025, amount to $191 million, compared to$185 million as of December 31, 2024[71] - Losses and loss adjustment expenses (LAE) decreased significantly by 86% to $3 million in Q1 2025, compared to$22 million in Q1 2024[193] - The insurance loss recoverable increased by 3% to $170 million as of March 31, 2025, from$165 million as of December 31, 2024[197] Puerto Rico Exposure - As of March 31, 2025, National had $657 million of insured debt service outstanding related to the Puerto Rico Electric Power Authority (PREPA) after paying gross claims of$13 million due to PREPA's default[30] - National has paid gross claims totaling $3.1 billion related to Puerto Rico bonds through March 31, 2025, including$277 million and $556 million in payments for GO and HTA bonds in 2022[207] - The largest remaining exposure to Puerto Rico by gross par outstanding is to PREPA[209] Tax and Valuation - The company has recorded a full valuation allowance against its net deferred tax asset of$1.4 billion as of March 31, 2025[144] - The effective tax rate for the Company was below the U.S. statutory tax rate of 21% due to a full valuation allowance on changes in its net deferred tax asset[181] - The Company expects to continue evaluating its net deferred tax asset on a quarterly basis, with no assurance of reversing any valuation allowance in the future[182] Segment Performance - The company manages its businesses across three operating segments: U.S. public finance insurance, corporate, and international and structured finance insurance[150] - The U.S. public finance insurance segment generated revenues of $17 million in Q1 2025, down from$26 million in Q1 2024[157] - The International and Structured Finance Insurance segment reported revenues of $4 million in Q1 2025, compared to a loss of$22 million in Q1 2024[157] Fair Value Measurements - Total assets measured at fair value as of March 31, 2025, are $1,732 million, with Level 3 assets representing approximately 6$1,449 million, including $495 million in U.S. Treasury and government agency securities[106] - The company continues to monitor and manage its fair value measurements in accordance with market conditions[116]