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.