Corporate Segment

The Corporate segment comprises MBIA Inc.’s holding company activities and certain subsidiaries, including Optinuity Alliance Resources Corp. The Corporate segment recorded a pre-tax loss of $21 million in the third quarter of 2011 compared with a pre-tax loss of $80 million in the third quarter of 2010. The Corporate segment’s results were impacted by an $8 million net gain on financial instruments at fair value and foreign exchange in the third quarter of 2011 and a $62 million net loss on financial instruments at fair value and foreign exchange in the third quarter of 2010 on outstanding warrants on MBIA Inc. common stock. The Corporate segment also recorded a $10 million net investment loss related to other than temporary impairments on investments in the third quarter of 2011.

As of September 30, 2011, the corporate activities of MBIA Inc. had $186 million of cash and highly liquid assets available for general corporate liquidity purposes.

The Company repurchased approximately 3.5 million shares of its common stock at an average price of $7.10 during the third quarter. As of September 30, 2011, approximately $23 million of repurchase authorization remained available under the Company's $1.0 billion share buyback program.

Wind-down Operations

The Company’s wind-down operations comprise its ALM and Conduit businesses, both of which are in run-off.

The Company’s wind-down operations recorded a pre-tax loss of $9 million in the third quarter of 2011 compared with a pre-tax loss of $104 million in the third quarter of 2010. The pre-tax loss in the third quarter of 2011 was driven by ongoing negative net interest spread in the ALM business. Negative marks-to-market and settlements on interest rate contracts in the third quarter of 2011 were offset by favorable changes in foreign exchange rates. The pre-tax loss in the third quarter of 2010 was driven by a $117 million net loss on financial instruments at fair value and foreign exchange resulting primarily from increased values of liabilities denominated in foreign currencies.

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