MBIA reports Q2 adjusted EPS ($2.90), consensus (15c)

MBIA Inc. reported a consolidated GAAP net loss of $254M, or $(5.34) per share, for the second quarter of 2024 compared to a consolidated GAAP net loss of $74M, or $(1.46) per share, for the second quarter of 2023. The greater net loss was primarily due to higher losses and loss adjustment expenses at National Public Finance Guarantee Corporation and higher fair value losses at MBIA Insurance Corporation. The greater losses and LAE at National largely resulted from higher losses on its Puerto Rico Electric Power Authority, or PREPA, exposure. The greater fair value losses at MBIA Corp. largely resulted from a decline in the value of recoveries associated with claims paid on Zohar CDOs. Book value per share was negative $39.07 as of June 30, 2024 compared with a negative $32.56 as of December 31, 2023. The decrease in book value per share since year-end 2023 was primarily due to the net loss for the first six months of 2024. The Company also reported an Adjusted Net Loss of $138M or $(2.90) per diluted share for the second quarter of 2024 compared with an Adjusted Net Loss of $22M or $(0.45) per diluted share for the second quarter of 2023. The greater net loss was primarily due to higher loss and LAE expense at National largely due to higher losses on its PREPA exposure. Bill Fallon, MBIA’s Chief Executive Officer noted, “Additional losses associated with National’s PREPA exposure adversely impacted our financial results this quarter and National’s PREPA exposure remains an important issue to be resolved to pursue a sale of MBIA Inc.”