MBI — MBIA Inc.

Summary of MBIA Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Consolidated GAAP Net Loss: $51 million for 2025 ($1.01 per share), consistent with 2024’s loss of $51 million ($1.07 per share).
• Adjusted Net Loss: $12 million for 2025 ($0.24 per share), improved from $22 million ($0.48 per share) in 2024.
• Full-Year Consolidated GAAP Net Loss: $177 million ($3.58 per share) for 2025, significantly reduced from $447 million ($9.43 per share) in 2024.
• Book Value per Share: Decreased to -$44.27 as of December 31, 2025, primarily due to the consolidated net loss.
• National’s Statutory Capital: $937 million, up $25 million from 2024, with claims-paying resources of $1.4 billion.
• MBIA Insurance Corporation Statutory Capital: $79 million, down from $88 million in 2024.

2. Strategic Updates and Business Highlights:

• National recorded a benefit from losses and loss adjustment expenses (LAE) in 2025, primarily due to favorable adjustments related to PREPA bankruptcy claims.
• The gross par amount of National’s insured portfolio decreased by approximately $3 billion to $22 billion by year-end 2025.
• The company is actively working to resolve PREPA exposure, although progress has stalled due to ongoing legal issues with the Financial Oversight and Management Board.

3. Forward Guidance and Outlook:

• The management remains optimistic about potential progress in resolving PREPA issues in 2026.
• Discussions regarding a special dividend are ongoing, with an emphasis on the likelihood increasing as PREPA exposure decreases.
• The company is exploring strategic options, including the potential sale of the company or its components, depending on what maximizes shareholder value.

4. Bad News, Challenges, or Points of Concern:

• There has been little substantive progress on PREPA restructuring, which remains a significant concern.
• The company faces regulatory challenges and uncertainties surrounding the Financial Oversight and Management Board, which may delay negotiations and resolutions.
• The statutory net loss for MBIA Insurance Corporation indicates ongoing challenges, particularly related to its guarantees and the need for effective runoff management.

5. Notable Q&A Insights:

• Management confirmed they are continuously evaluating the potential for a special dividend but did not provide specific timelines or details on discussions with regulators.
• There is no immediate pressure from auditors regarding reserve valuations for non-Puerto Rican credits, indicating confidence in current assessments.
• The company is managing a recovery process related to collateral with Zohar, which is expected to take time.
• The ongoing political situation in Puerto Rico is affecting negotiations, with management expressing frustration over the delays caused by political dynamics and board member appointments.

Overall, while MBIA Inc. has shown improvements in certain financial metrics, significant challenges remain, particularly regarding PREPA exposure and regulatory hurdles. The company is focused on strategic initiatives that could enhance shareholder value moving forward.