MBIA (US:MBI)2025-05-09 13:02Financial 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]