“Our third quarter financial results were disappointing,” said MBIA Inc. President and Chief Financial Officer Chuck Chaplin. “We recorded increased losses on our insured CMBS exposures and took a partial write-down against our insured second lien RMBS loss recoverable. We also had some large expenses, including a $29 million impairment to the value of our headquarters property, a $44 million loss related to a salvage asset that we settled by receiving a marketable security and $14 million in expenses related to a reduction in our workforce. On the revenue side, we saw a slowdown in our always unpredictable refunding premiums earned as interest rates spiked.”“However, after years of high loss activity and litigation we’re getting much closer to resuming more normal operations,” Mr. Chaplin continued. “We’ve begun to reposition National’s investment portfolio from its nearly 40 percent cash position at June 30, and we continue to make good progress in our discussions with the rating agencies regarding National’s rating. Early in the fourth quarter, National paid its first dividend to MBIA Inc. of $214 million. Over the next few months, we anticipate the beginning of a new period of growth and stability for our shareholders.” Year-to-Date Results The Company’s consolidated adjusted pre-tax loss for the nine months ended September 30, 2013 was $368 million compared with an adjusted pre-tax loss of $818 million in the comparable period of 2012. The reduction in the adjusted pre-tax loss for the nine months ended September 30, 2013 was primarily due to a decrease in insurance losses and LAE, the absence of net investment losses related to other-than-temporary impairments, net gains from the sale of investments and a decrease in interest expense. These changes were partially offset by lower premiums earned and lower net investment income. The Company recorded consolidated net income of $118 million, or $0.60 per diluted common share for the nine months ended September 30, 2013, compared with consolidated net income of $598 million, or $3.07 per diluted common share, for the same period of 2012. Consolidated total revenues for the nine months ended September 30, 2013 included $14 million of net gains on the fair value of insured derivatives compared with $1.1 billion of net gains for the same period of 2012. The net gains on the fair value of insured derivatives in 2013 were principally the result of commuting insured credit derivatives at prices below their fair values and changes in the weighted average life on transactions, partially offset by the effects of favorable changes in the market’s perception of MBIA Corp.’s nonperformance risk on its insured credit derivatives. The net gains on the fair value of insured derivatives in 2012 were principally the result of commuting insured credit derivatives at prices below their fair values and the effects of an unfavorable change in the market’s perception of MBIA’s Corp.’s nonperformance risk on its insured credit derivatives. Consolidated total expenses for the nine months ended September 30, 2013 included $92 million of net insurance loss and loss adjustment expenses compared with $330 million for the same period of 2012. The decrease in net insurance loss and loss adjustment expenses in 2013 when compared to 2012 was principally related to decreases in actual and expected payments related to insured second-lien and first-lien RMBS transactions, partially offset by an increase in losses related to an international road transaction and certain U.S. public finance transactions. In addition, consolidated total expenses for the three and nine months ended September 30, 2013 included operating expenses of approximately $2 million and $89 million, respectively, related to settlement, consulting and legal expenses associated with the resolution of litigation matters with Bank of America, Société Générale and Flagstar Bank.