MBIA (US:MBI)2025-11-04 21:26Financial Performance - Net income attributable to MBIA Inc. for the three months ended September 30, 2025, was a loss of $8 million, compared to a loss of $56 million in the same period of 2024, showing an improvement of approximately 86%[15] - Total revenues for the three months ended September 30, 2025, were $15 million, down from $29 million in the same period of 2024, a decrease of approximately 48%[15] - The company reported a net loss per common share of $0.17 for the three months ended September 30, 2025, compared to a loss of $1.18 per share in the same period of 2024[15] - The company reported a net income loss of $126 million for the nine months ended September 30, 2025, an improvement from a loss of $393 million in 2024[22] - The net income (loss) attributable to MBIA Inc. for the nine months ended September 30, 2025, was a loss of $126 million, compared to a loss of $396 million for the same period in 2024[168] - For the three months ended September 30, 2025, the net income from continuing operations available to common shareholders was a loss of $7 million, compared to a loss of $51 million for the same period in 2024[168] Revenue and Expenses - Premiums earned for the three months ended September 30, 2025, totaled $7 million, down from $9 million in the same period of 2024, a decrease of about 22%[15] - Total expenses for the three months ended September 30, 2025, were $22 million, compared to $80 million for the same period in 2024[151][155] - For the three months ended September 30, 2025, gross expenses in the U.S. public finance insurance segment were $8 million, a decrease of 11% from $9 million in 2024[210] - For the nine months ended September 30, 2025, gross expenses totaled $29 million, down 6% from $31 million in 2024[210] - Total insurance operating expenses for the three months ended September 30, 2025, were $10 million, reflecting a 9% decrease from $11 million in 2024[210] - For the nine months ended September 30, 2025, total insurance operating expenses were $34 million, a decline of 6% compared to $36 million in 2024[210] Assets and Liabilities - Total assets decreased to $2,060 million as of September 30, 2025, from $2,168 million at December 31, 2024, representing a decline of approximately 5%[13] - Total liabilities slightly decreased to $4,227 million from $4,244 million, a reduction of about 0.4%[13] - Total shareholders' equity of MBIA Inc. decreased to $(2,180) million as of September 30, 2025, from $(2,089) million at December 31, 2024[13] - The company’s cash and cash equivalents decreased to $64 million as of September 30, 2025, from $84 million at December 31, 2024, a decline of approximately 24%[13] - Total assets held for sale as of September 30, 2025, were $10 million, a decrease from $11 million at the end of 2024[35] - Total liabilities held for sale remained unchanged at $7 million as of September 30, 2025, compared to December 31, 2024[35] Investment Income and Losses - Net investment income decreased to $17 million for the three months ended September 30, 2025, from $20 million in the same period of 2024, a decline of 15%[15] - The company recorded $14 million in losses from fair valuing investments for the three months ended September 30, 2025, compared to $3 million in gains for the same period of 2024[186] - The company experienced a net loss of $25 million on financial instruments at fair value for the nine months ended September 30, 2025, compared to a loss of $63 million in 2024[118] - The net gains (losses) on financial instruments at fair value and foreign exchange for the three months ended September 30, 2025, were reported as a loss of $20 million, compared to a loss of $6 million in 2024[116] Insurance and Claims - Losses and loss adjustment expenses for the three months ended September 30, 2025, were $50 million, compared to a gain of $11 million in the same period of 2024[15] - The company experienced a significant change in loss and loss adjustment expense reserves, with a decrease of $83 million in the nine months ended September 30, 2025[22] - The insurance loss recoverable decreased by 90% to $17 million as of September 30, 2025, from $165 million as of December 31, 2024[208] - Loss and LAE reserves decreased by 30% to $208 million as of September 30, 2025, compared to $299 million as of December 31, 2024[208] Segment Performance - Total revenues for the three months ended September 30, 2025, were $15 million from U.S. Public Finance Insurance, $6 million from Corporate, and $4 million from International and Structured Finance, totaling $25 million[151] - Total revenues for the three months ended September 30, 2024, were $20 million from U.S. Public Finance Insurance, $6 million from Corporate, and $6 million from International and Structured Finance, totaling $33 million[155] - For the nine months ended September 30, 2025, total revenues were $41 million from U.S. Public Finance Insurance, $17 million from Corporate, and $14 million from International and Structured Finance, totaling $72 million[159] - For the nine months ended September 30, 2024, total revenues were $55 million from U.S. Public Finance Insurance, $22 million from Corporate, and $21 million from International and Structured Finance, totaling $98 million[163] Economic Environment - The economic environment indicates that U.S. economic activity is expanding at a moderate pace, with the unemployment rate remaining low and inflation elevated[179] - The Federal Open Market Committee lowered its federal funds rate target range to 3.75% to 4.00%[179] Tax and Deferred Assets - The company recorded a full valuation allowance against its net deferred tax asset of $1.4 billion as of September 30, 2025[141] - The effective tax rate for the three and nine months ended September 30, 2025, was below the U.S. statutory tax rate of 21% due to a full valuation allowance on the changes in the net deferred tax asset[190] Other Notable Points - The company does not expect to write new financial guarantee policies outside of remediation-related activities[178] - The company continues to monitor its insured portfolio, particularly regarding potential defaults from state and local governments experiencing financial stress[202] - The company has a maximum commitment of approximately $15 million for a delayed draw term loan, which was fully drawn and outstanding as of September 30, 2025[175]