MBIA Inc. (MBI) SEC Filings & Earnings Calls

Continued net losses and negative adjusted net income; reliance on foreign exchange gains and legal reversals for improvement.

“GAAP net loss $46M; Adjusted Net Loss $7M; favorable variance driven by FX gains and legal expense reversal.”

PREPA default and litigation risk

“On January 1, 2026, PREPA defaulted on scheduled debt service for National insured bonds and National paid gross claims in the aggregate of $11 million.”

Negative equity and high debt

“Total shareholders' equity of MBIA Inc. $(2,326) million; Long-term debt $2,915 million”

MBIA Corp. liquidity and solvency risk

“MBIA Corp.’s ability to meet its obligations is limited by available liquidity and its ability to secure additional liquidity through financing and other transactions.” · word for word

Continued net loss, though improved YoY; insurance exposure to RMBS and foreign exchange volatility

“GAAP net loss of $40M; favorable variance on foreign exchange and RMBS exposure”

PREPA Restructuring Risk

“As of March 31, 2026, National had $554 million of insured debt service outstanding related to PREPA. There is no assurance that a plan that is substantially similar in the treatment of National's claims and rights will ultimately be confirmed and become effective.” · word for word

MBIA Corp. Liquidity Risk

“MBIA Corp.’s ability to meet its obligations is limited by available liquidity and its ability to secure additional liquidity through financing and other transactions. There can be no assurance that MBIA Corp. will be successful in generating sufficient resources to meet its obligations.” · word for word

Regulatory Risk

“MBIA Corp. believes that if the NYSDFS concludes at any time that MBIA Insurance Corporation will not be able to pay its policyholder claims, the NYSDFS would likely put MBIA Insurance Corporation into a rehabilitation or liquidation proceeding under Article 74 of the New York Insurance Law.”

PREPA Resolution Uncertainty

“A final outcome for PREPA remains to be determined.” · word for word

Run-off Business Model

“With the Company's operating subsidiaries in runoff, and not expected to resume new business activities” · word for word

Zohar Recovery Failure

“Success above was offset by failure to secure material recoveries on prior Zohar credit payments.” · word for word

Run-off portfolio concentration risk

“National's gross par amount outstanding for its ten largest insured U.S. public finance credits totaled $7.2 billion, representing 32.3% of National's total U.S. public finance gross par amount outstanding.” · word for word

PREPA distress

“the most distressed credit in National's portfolio is the Puerto Rico Electric Power Authority ("PREPA") which is in a bankruptcy-like process” · word for word

PREPA exposure remains a significant source of loss; favorable development in 2025 but uncertainty persists.

“losses and LAE activity was primarily related to National's Puerto Rico Electric Power Authority (PREPA) exposure” · word for word

Shrinking insured portfolio indicates limited new business generation.

“National’s insured portfolio declined by $0.9 billion for the fourth quarter and $3.0 billion for the year” · word for word

PREPA exposure remains a key risk; benefit from sale may not recur.

“Losses and LAE benefit for 2025 associated with PREPA exposure... driven by National's sale of custodial receipts.” · word for word

Leverage ratio improved but remains elevated at 23:1.

“Leverage ratio of gross par to statutory capital of 23:1, compared to 28:1 at year-end 2024.” · word for word

PREPA restructuring uncertainty

“There is no assurance that a plan that is substantially similar in the treatment of National's claims and rights will ultimately be confirmed and become effective. In the event of a substantially different confirmed plan, National’s PREPA loss reserves and recoveries could be materially adversely affected.” · word for word

MBIA Corp. liquidity risk

“MBIA Corp.’s ability to meet its obligations is limited by available liquidity and its ability to secure additional liquidity through financing and other transactions. There can be no assurance that MBIA Corp. will be successful in generating sufficient resources to meet its obligations.” · word for word