Filing Analysis
MBIA Inc. reported its second quarter 2026 financial results, showing a consolidated GAAP net loss of $46 million ($0.91 per share), which is an improvement from the $56 million loss in the prior year's corresponding period.
🚩 Red Flags
- Continued GAAP net losses for both the quarter and the first half of 2026.
- Reliance on non-GAAP 'Adjusted Net Loss' metrics to present a more favorable view of operating performance (excluding VIE consolidations, FX gains/losses, and structured finance segments).
📋 Key Facts
- Consolidated GAAP net loss for Q2 2026: $46 million or $(0.91) per share.
- Consolidated Adjusted Net Loss for Q2 2026: $7 million or $(0.14) per diluted share.
- Year-to-date GAAP net loss (six months ended June 30, 2026): $86 million or $(1.71) per diluted common share.
- Liquidity position as of June 30, 2026: $337 million in cash and liquid invested assets.
- National Public Finance Guarantee Corporation leverage ratio: 21 to 1 (down from 24 to 1 at year-end 2025).
- MBIA Insurance Corporation statutory capital increased by $27 million from year-end 2025 to $106 million as of June 30, 2026.
MBIA Inc. reported its third quarter 2025 financial results, showing a consolidated GAAP net loss of $8 million ($0.17 per share), which is an improvement over the $56 million loss in Q3 2024. The improved performance was primarily driven by favorable losses and loss adjustment expenses (LAE) benefits related to PREPA exposure at National Public Finance Guarantee Corporation.
🚩 Red Flags
- Company remains in a GAAP net loss position for both the quarter and the year-to-date period.
- Ongoing exposure to Puerto Rico Electric Power Authority (PREPA) continues to be a significant driver of financial volatility, even if currently providing benefits.
📋 Key Facts
- Consolidated GAAP net loss for Q3 2025: $8 million ($0.17 per share).
- Q3 2024 consolidated GAAP net loss was $56 million ($1.18 per share).
- Adjusted Net Income for Q3 2025: $51 million ($1.03 per diluted share).
- Year-to-date (9 months) GAAP net loss: $126 million ($2.57 per share).
- Liquidity position as of Sept 30, 2025: $354 million in cash and liquid assets.
- National Public Finance Guarantee Corporation leverage ratio: 23:1 (down from 28:1 at year-end 2024).
- Favorable results driven by sale of custodial receipts related to PREPA bankruptcy claims.
MBIA Inc.'s subsidiary, National, has sold Custodial Receipts (CRs) representing approximately $374 million in bankruptcy claims related to the PREPA Title III case. This sale represents roughly 47% of National's current bond claims and aims to reduce volatility and remediation risk.
🚩 Red Flags
- Ongoing uncertainty regarding National's remaining PREPA exposure/Title III case.
📋 Key Facts
- Transaction date: August 14, 2025
- Asset sold: Custodial Receipts (CRs) representing bankruptcy claims held by Argent Institutional Trust Company.
- Face amount of CRs sold: Approximately $374 million.
- Percentage of principal: Represents approximately 47% of National's current bond claims in the PREPA Title III case.
- Status of underlying bonds: The bonds included in the CRs had already been fully satisfied by insurance claim payments.
- Historical context: Similar transactions occurred in October 2021 and January 2022 totaling ~$430 million.
MBIA Inc. reported Q2 2025 results characterized by a significant GAAP net loss of $56 million, though this represents an improvement over the $254 million loss in Q2 2024. Despite improved year-over-year metrics, the company maintains a negative book value per share of -$43.14.
🚩 Red Flags
- Negative book value per share (-$43.14) indicates significant negative equity/insolvency in a traditional sense.
- Consolidated GAAP net loss for the first half of 2025 is $118 million, continuing a trend of losses.
- Significant exposure to Puerto Rico Electric Power Authority (PREPA) noted as a driver of previous and current loss fluctuations.
📋 Key Facts
- Q2 2025 GAAP net loss: $56 million ($1.12 per share).
- Q2 2024 GAAP net loss: $254 million ($5.34 per share).
- Year-to-date (first six months of 2025) GAAP net loss: $118 million ($2.40 per share).
- Book value per share as of June 30, 2025: -$43.14.
- Liquidity position: $355 million in cash and liquid invested assets.
- National Public Finance Guarantee Corporation statutory capital: $914 million; claims-paying resources: $1.5 billion.
- MBIA Insurance Corporation statutory capital: $92 million; claims-paying resources: $346 million.
MBIA Inc. reported its Q1 2025 financial results, showing a consolidated GAAP net loss of $62 million ($1.28 per diluted share), which is an improvement over the $86 million loss in Q1 2024. The company's book value remains negative at -$42.22 per share.
🚩 Red Flags
- Negative book value per share (-$42.22) indicates significant negative equity/insolvency in a GAAP context.
- Continued consolidated GAAP net losses despite year-over-year improvement.
- MBIA Corp. maintains a negative book value which management notes is unlikely to provide economic benefit to the parent company.
📋 Key Facts
- Consolidated GAAP net loss for Q1 2025 was $62 million, compared to an $86 million loss in Q1 2024.
- Adjusted Net Loss for Q1 2025 was $8 million ($0.16 per diluted share), improving from a $24 million adjusted net loss in Q1 2024.
- Book value per share as of March 31, 2025, was negative $42.22.
- National Public Finance Guarantee Corporation reported statutory capital of $919 million and claims-paying resources of $1.5 billion.
- MBIA Insurance Corporation reported statutory capital of $88 million and claims-paying resources of $349 million.
- Total liquidity position as of March 31, 2025, was $378 million.
MBIA Inc. reported full year and Q4 2024 financial results characterized by significant GAAP net losses, primarily driven by investment-related issues and Puerto Rico exposure.
🚩 Red Flags
- Significant negative book value per share (-$40.99) indicating substantial erosion of equity.
- Increasing insured leverage ratio at National (from 25:1 to 28:1).
- Consolidated GAAP net loss remains high despite being lower than the previous year.
- Increased losses and LAE related to Puerto Rico exposure.
📋 Key Facts
- Reported consolidated GAAP net loss of $447 million for the full year 2024 ($9.43 per diluted common share).
- Book value per share decreased to negative $40.99 as of Dec 31, 2024 (vs. -$32.56 in 2023).
- Reported Adjusted Net Loss for the full year was $184 million ($3.90 per diluted common share).
- National Public Finance Guarantee Corporation reported an insured leverage ratio of 28 to 1, up from 25 to 1 in 2023.
- Liquidity position totaled $380 million as of Dec 31, 2024.
MBIA Inc. has approved $10.175 million in special one-time cash retention awards for four named executive officers to ensure leadership continuity during a critical runoff period. The awards are designed to vest on March 1, 2028, specifically to mitigate risks associated with the company's operating subsidiaries and Puerto Rico exposures.
🚩 Red Flags
- Significant cash outflows ($10.175M) to executives during a period where portfolios are in 'runoff'.
- Explicit admission of an 'unusual situation' and a 'challenging operating environment'.
- High-stakes remediation required for Puerto Rico exposures, indicating potential tail risk.
- The use of large retention bonuses often signals management's concern regarding talent flight during restructuring or liquidation phases.
📋 Key Facts
- Total aggregate cash retention award: $10,175,000.
- Recipients include CEO William C. Fallon ($3.5M), Adam T. Bergonzi ($2.775M), Daniel M. Avitabile ($1.95M), and Christopher H. Young ($1.95M).
- Awards are scheduled to cliff vest on March 1, 2028.
- Retention is driven by the 'unusual situation' of operating companies being in runoff mode.
- Specific mention of critical remediation efforts regarding National and Puerto Rico exposures.
MBIA Inc. reported its Q3 2024 financial results, showing a consolidated GAAP net loss of $56 million ($1.18 per share), driven by losses related to Zohar CDOs and other insurance claims. The company continues to report negative book value per share, which stood at -$39.19 as of September 30, 2024.
🚩 Red Flags
- Negative book value per share (-$39.19) indicates significant erosion of shareholder equity.
- Consolidated GAAP net loss for the first nine months ($396M) is larger than the previous year's period ($353M).
- Ongoing losses related to Zohar CDOs and valuation of recoveries on paid insurance claims.
📋 Key Facts
- Q3 2024 GAAP net loss: $56 million ($1.18 per share) vs. $185 million loss in Q3 2023.
- Nine-month 2024 GAAP net loss: $396 million ($8.37 per share).
- Book value per share as of Sept 30, 2024: -$39.19 (down from -$32.56 at year-end 2023).
- Liquidity position: $326 million in cash and liquid invested assets.
- National Public Finance Guarantee Corporation statutory capital: $1.0 billion; claims-paying resources: $1.6 billion.
- MBIA Insurance Corporation statutory capital: $87 million; claims-paying resources: $358 million.
MBIA Inc. reported a significant consolidated GAAP net loss of $254 million for Q2 2024, driven by higher losses in its Puerto Rico Electric Power Authority (PREPA) exposure and fair value losses related to Zohar CDOs. The company's book value per share has deteriorated to negative $39.07 as of June 30, 2024.
🚩 Red Flags
- Significant GAAP net loss ($254M) indicating substantial capital erosion.
- Negative book value per share (-$39.07), which is a critical indicator of financial distress for insurance/guarantor entities.
- Ongoing exposure to PREPA (Puerto Rico Electric Power Authority) is cited as a major driver of losses and an obstacle to the company's sale process.
- Leverage ratio at National increased from 25:1 at year-end 2023 to 28:1 as of June 30, 2024.
📋 Key Facts
- Consolidated GAAP net loss for Q2 2024 was $254 million ($5.34 per share) vs. a $74 million loss in Q2 2023.
- Year-to-date (six months ended June 30, 2024) GAAP net loss reached $340 million ($7.21 per share).
- Book value per share decreased to negative $39.07 as of June 30, 2024.
- Losses were primarily driven by National Public Finance Guarantee Corporation's PREPA exposure and MBIA Corp.'s Zohar CDO fair value losses.
- Liquidity position totaled $315 million in cash and liquid invested assets as of June 30, 2024.
MBIA Inc. reported a consolidated GAAP net loss of $86 million ($1.84 per diluted share) for Q1 2024, driven largely by higher losses and loss adjustment expenses related to Puerto Rico Electric Power Authority (PREPA) exposure. The company's book value per share remains significantly negative at -$33.80.
🚩 Red Flags
- Negative book value per share (-$33.80) indicates significant erosion of shareholder equity.
- Ongoing high losses related to Puerto Rico Electric Power Authority (PREPA) exposure.
- Consolidated GAAP net loss continues despite favorable variances in other segments.
📋 Key Facts
- Consolidated GAAP net loss of $86 million for Q1 2024 vs. $93 million in Q1 2023.
- Book value per share was negative $33.80 as of March 31, 2024.
- Liquidity position totaled $376 million (cash and liquid invested assets).
- National Public Finance Guarantee Corporation reported a leverage ratio of 25 to 1.
- Increased losses/LAE primarily due to PREPA exposure at National due to restructuring delays.
MBIA Inc. reported the results of its Annual Meeting of Shareholders held on May 2, 2024. The meeting included elections for the Board of Directors and advisory votes on executive compensation and auditor ratification.
🚩 Red Flags
- None identified.
📋 Key Facts
- Annual Meeting held on May 2, 2024.
- All five nominees for the Board of Directors were elected with support ranging from 92.05% to 97.50%.
- Shareholders approved compensation for named executive officers (advisory vote) with 80.66% in favor.
- PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for 2024 with 96.90% support.
- The Amended and Restated MBIA Inc. Omnibus Incentive Plan was approved by shareholders (91.57% in favor).
MBIA Inc. announced the appointment of Shengying Yu as Controller and Principal Accounting Officer, effective May 2, 2024. This follows the recent succession of Joseph Schachinger as CFO, who has stepped down from his role as principal accounting officer.
🚩 Red Flags
- Succession in key financial roles (CFO and Controller) occurring within a very tight window (April 30 to May 2).
📋 Key Facts
- Shengying Yu appointed as Controller/Principal Accounting Officer effective May 2, 2024.
- Joseph Schachinger succeeded Anthony McKiernan as CFO on April 30, 2024.
- Ms. Yu has been with the company since October 2009 and served as Head of Accounting since June 2017.
- Ms. Yu is a CPA and previously worked at Deloitte & Touche, LLP.
MBIA Inc. announced the departure of its Executive Vice President and Chief Financial Officer, Anthony McKiernan, effective April 30, 2024. He will be replaced by the current Controller, Joseph Schachinger.
🚩 Red Flags
- Sudden departure of a key C-suite officer (CFO) can sometimes signal internal friction or upcoming financial volatility, though the filing presents it as a standard transition.
- Significant cash outflows related to severance and LTI buyouts for the departing executive.
📋 Key Facts
- Anthony McKiernan to step down as CFO and resign from all positions on April 30, 2024.
- Joseph Schachinger (current Controller since May 2017) appointed as successor CFO effective April 30, 2024.
- Separation agreement includes a one-time severance payment subject to general release.
- McKiernan will receive pro-rata cash payments in lieu of LTI restricted stock awards for 2023 and 2024 performance years.
- Unvested time-vesting and earned performance restricted stock will become vested upon separation.
MBIA Inc. reported significant full-year 2023 GAAP net losses of $491 million, driven by reduced revenues and adverse losses in its insurance segments. The company also reported a substantial decrease in book value per share to negative $32.56 due to these losses and an extraordinary dividend payment.
🚩 Red Flags
- Significant GAAP net loss ($491M) resulting in deeply negative book value per share (-$32.56).
- Increased leverage ratio for National segment from 16:1 to 25:1.
- Adverse losses related to Puerto Rico (PREPA) exposure.
- Management's stated intent to 'sell the Company', indicating a wind-down or exit strategy rather than long-term growth.
📋 Key Facts
- Consolidated GAAP net loss for FY 2023 was $491 million ($10.18 per diluted common share) vs. $195 million in 2022.
- Book value per share dropped to negative $32.56 as of Dec 31, 2023 (from -$16.07 in 2022).
- An extraordinary dividend of $8.00 per share was paid on December 22, 2023.
- Adjusted Net Loss for FY 2023 was $169 million ($3.49 per diluted common share).
- National's leverage ratio (gross par to statutory capital) increased to 25:1 in 2023 from 16:1 in 2022.
- The company is focused on resolving its PREPA (Puerto Rico Electric Authority) exposure and intends to sell the Company.
MBIA Inc. filed an 8-K to provide Regulation FD disclosure regarding the tax treatment of its recent extraordinary cash dividend. The company released IRS Form 8937 explaining how shareholders should treat the $8.00 per share dividend paid on December 22, 2023.
📋 Key Facts
- The filing relates to an extraordinary cash dividend of $8.00 per share paid on December 22, 2023.
- Shareholders of record as of December 18, 2023, were eligible for the dividend.
- IRS Form 8937 indicates the dividend is expected to be treated as a tax-free return of capital up to an investor's adjusted cost basis.
- Any portion of the dividend exceeding the investor's adjusted cost basis will be taxed as capital gains.
- Full year 2023 financial results are tentatively scheduled for release on February 28, 2024.