This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

MBIA Inc. Reports First Quarter 2014 Financial Results

Stocks in this article: MBI

MBIA Inc. (NYSE:MBI) (the Company) today reported an adjusted pre-tax loss (a non-GAAP measure defined in the attached Explanation of Non-GAAP Financial Measures) of $99 million for the first quarter of 2014 compared with an adjusted pre-tax loss of $20 million for the same period of 2013. MBIA Inc. recorded consolidated net income of $256 million, or $1.32 per diluted share, for the first quarter of 2014 compared with consolidated net income of $164 million, or $0.84 per diluted share, for the same period of 2013.

Adjusted Book Value (ABV) per share (a non-GAAP measure defined in the attached Explanation of Non-GAAP Financial Measures) was $26.64 as of March 31, 2014 compared with $27.78 as of December 31, 2013.

“The first quarter represented another milestone on our journey to financial stability and re-entry into the municipal finance market,” said MBIA Inc. President and Chief Financial Officer Chuck Chaplin. “In March, National Public Finance Guarantee Corp. achieved a rating upgrade to ‘AA-’ from Standard & Poor’s and today added a ‘AA+’ rating from the Kroll Bond Rating Agency. National is the largest bond insurer exclusively focused on domestic public finance and the Double-A ratings will enable National to begin insuring bonds in the municipal market. We are looking forward to writing new business and adding value for issuers, investors and our shareholders.”

“In MBIA Insurance Corp., the trend toward lower volatility continued in the quarter, with $6.7 billion of exposures commuted or terminated, bringing the portfolio down to $70 billion of gross par insured as of March 31, 2014,” Mr. Chaplin continued. “At the same time, recent trends in overall economic losses and payments on second-lien RMBS have been favorable.”

The increase in the adjusted pre-tax loss for the three months ended March 31, 2014 compared with the same period of 2013 was driven primarily by losses on financial instruments at fair value and foreign exchange compared to gains in 2013 and lower net premiums earned, partially offset by decreases in legal and litigation related operating expenses. ABV per share and adjusted pre-tax income provide investors with alternative views of the Company’s operating results that management finds useful in measuring financial performance. Reconciliations of ABV per share to book value (BV) per share calculated in accordance with GAAP and adjusted pre-tax income to pre-tax income calculated in accordance with GAAP are attached.

1 of 11

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs