The U.S. public finance insurance segment recorded $14 million of pre-tax income in the second quarter of 2013 compared with $148 million of pre-tax income in the second quarter of 2012.

Total premiums earned in the U.S. public finance insurance segment were $102 million in the second quarter of 2013, down 22 percent from $130 million of total premiums earned in the second quarter of 2012, primarily reflecting a decrease in refunded premiums earned.

Net investment income for the U.S. public finance insurance segment was $35 million in the second quarter of 2013, down 38 percent from $56 million in the second quarter of 2012 primarily due to higher asset balances invested at lower average yields following the repayment of the secured loan that National had extended to MBIA Corp.

Net losses on financial instruments at fair value and foreign exchange totaled $2 million in the second quarter of 2013, compared with $11 million of gains in the second quarter of 2012.

The U.S. public finance insurance segment’s loss and loss adjustment expenses totaled $66 million in the second quarter of 2013 compared with a $3 million benefit in the second quarter of 2012. U.S. public finance insurance loss activity in the second quarter of 2013 was largely driven by increased loss reserves and loss mitigation expenses associated with certain general obligation bond exposures.

Expenses associated with the amortization of deferred acquisition costs totaled $21 million in the second quarter of 2013, compared with $26 million in the second quarter of 2012, reflecting lower premiums earned and the decline in the outstanding balance of the Company’s insured public finance portfolio.

Operating expenses were $35 million in the second quarter of 2013, compared with $28 million in the second quarter of 2012. The increase in operating expenses in the second quarter of 2013 was driven by third-party consulting costs, partially offset by a decline in legal expenses.

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