MBIA Inc. Reports Third Quarter 2016 Financial Results

MBIA Inc. (NYSE:MBI) (the Company) today reported consolidated GAAP net income of $31 million, or $0.23 per diluted share, for the third quarter of 2016 compared with a consolidated net loss of $35 million, or $(0.23) per diluted share, for the third quarter of 2015. The $66 million favorable change in the financial result versus the year-ago quarter was primarily due to a favorable variance in the fair value of interest rate swaps and net gains on the sale of investments.

Book value per share was $26.95 as of September 30, 2016 compared with $24.61 as of December 31, 2015. The increase in book value per share since year-end 2015 was primarily due to share repurchases that decreased common shares outstanding. During the first nine months of 2016, the Company repurchased 16.6 million shares of its common stock.

The Company also reported Combined Operating Income (a non-GAAP measure defined in the attached Explanation of Non-GAAP Financial Measures) of $5 million or $0.04 per diluted share for the third quarter of 2016 compared with Combined Operating Income of $24 million or $0.15 per diluted share for the third quarter of 2015. The decline in Combined Operating Income for the third quarter of 2016 compared to the same period of 2015 was primarily driven by higher losses and loss adjustment expenses.

Adjusted Book Value (ABV) per share (a non-GAAP measure defined in the attached Explanation of Non-GAAP Financial Measures) was $32.39 as of September 30, 2016 compared with $29.69 as of December 31, 2015. The increase in ABV per share since year-end 2015 was primarily driven by the repurchase of 16.6 million shares during the first nine months of 2016.

Operating Income and ABV per share provide investors with two perspectives of the Company's financial results that management uses in measuring financial performance. Reconciliations of ABV per share to book value per share, and Operating Income to net income, calculated in accordance with GAAP, are attached.

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