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]