NYSE:MBI MBIA Q1 2024 Earnings Report $4.73 +0.04 (+0.85%) As of 02:12 PM Eastern This is a fair market value price provided by Polygon.io. Learn more. Earnings HistoryForecast MBIA EPS ResultsActual EPS-$0.52Consensus EPS -$0.06Beat/MissMissed by -$0.46One Year Ago EPS-$0.03MBIA Revenue ResultsActual Revenue$13.00 millionExpected Revenue$29.00 millionBeat/MissMissed by -$16.00 millionYoY Revenue GrowthN/AMBIA Announcement DetailsQuarterQ1 2024Date5/9/2024TimeAfter Market ClosesConference Call DateFriday, May 10, 2024Conference Call Time8:00AM ETUpcoming EarningsMBIA's Q1 2025 earnings is scheduled for Thursday, May 8, 2025, with a conference call scheduled on Friday, May 9, 2025 at 8:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by MBIA Q1 2024 Earnings Call TranscriptProvided by QuartrMay 10, 2024 ShareLink copied to clipboard.There are 6 speakers on the call. Operator00:00:00Welcome to the MBIA Inc. 1st Quarter 2024 Financial Results Conference Call. I would now like to turn the call over to Greg Diamond, Managing Director of Investor and Media Relations at MBIA. Please go ahead, sir. Speaker 100:00:12Thank you, Ashley. Welcome to MBIA's conference call for our Q1 2024 financial results. After the market closed yesterday, we issued and posted several items on our website, including our financial results, our 10 Q, quarterly operating supplement and statutory financial statements for both MBIA Insurance Corporation and the National Public Finance Guarantee Corporation. We also posted updates to the listings of our insurance company's insured portfolios. Regarding today's call, please note that anything said on the call is qualified by the information provided in the company's 10 ks, 10 Q and other SEC filings as our Company's definitive disclosures are incorporated in those documents. Speaker 100:00:56We urge investors to read our 10 ks and 10 Qs as they contain our most current disclosure about the company and its financial and operating results. Those documents also contain information that may not be addressed on today's call. The definitions and reconciliations of the non GAAP terms included in our remarks today are also included in our 10 ks and 10 Qs as well as our financial results report and our quarterly operating supplement. The recorded replay of today's call will become available on the MBIA website approximately 2 hours after the end of the call. Now here is our Safe Harbor disclosure statement. Speaker 100:01:37Our remarks on today's conference call may contain forward looking statements. Important factors such as general market conditions and the competitive environment could cause our actual results to differ materially from the projected results referenced in our forward looking statements. Risk factors are detailed in our 10 ks and 10 Qs, which are available on our website at mbia.com. The company cautions not to place undue reliance on any such forward looking statements. Company also undertakes no obligation to publicly correct or update any forward looking statement if it later becomes aware that such statement is no longer accurate. Speaker 100:02:15For our call today, Bill Fallon and Joe Sackinger will provide introductory comments and then a question and answer session will follow. Now here is Bill Fallon. Speaker 200:02:24Thanks, Greg. Good morning, everyone. Thanks for being with us today. Last month, we said goodbye to Anthony McKernan, our CFO, who helped us navigate through some very difficult times and was instrumental in many projects that have been critical to MBIA. Anthony will be missed and we wish him the very best in his future endeavors. Speaker 200:02:46Our Q1 2024 results were relatively straightforward and relatively unchanged versus a year ago. Our new CFO, Joe Schackinger, will have more to say about these results shortly. In the meantime, our primary objectives continue to be focused on the resolution of our remaining Puerto Rico exposure and then restarting the process to sell the company. Regarding PREPA, National's remaining exposure to PREPA was $610,000,000 of gross par insured at the end of the Q1. The Title III court held the confirmation hearing for PREPA's plan of adjustment in March of this year and we await a ruling on that hearing as well as rulings to be issued by the 1st Circuit Court regarding appeals being sought by bondholders opposing the current PREPA restructuring plan. Speaker 200:03:36Regarding the balance of National's insured portfolio, those credits have continued to perform generally consistent with our expectations. The gross par amount outstanding for National's insured portfolio has declined by approximately $600,000,000 from year end 2023 to $27,800,000,000 Speaker 300:03:56at the Speaker 200:03:56end of the Q1 of this year. National's leverage ratio of gross part of statutory capital remained unchanged from year end 2023 at 25:one. At the end of the Q1, National had total claims paying resources of $1,700,000,000 and statutory capital surplus of $1,100,000,000 Now Joe will provide additional comments about our financial results. Speaker 400:04:25Thank you, Bill, and good morning all. I will begin with a review of our Q1 2024 GAAP and non GAAP results and then provide an overview of our statutory results. The company reported a consolidated GAAP net loss of $86,000,000 or a negative $1.84 per share for the Q1 of 2024 compared to a consolidated GAAP net loss of $93,000,000 or a negative $1.86 per share for the Q1 of 2023. The lower GAAP net loss this quarter was largely driven by lower losses from our discontinued operations. Our net loss from continuing operations of $87,000,000 was slightly higher in the Q1 of 2024 compared with a net loss of $83,000,000 in the same period in 2023, primarily as a result of higher loss in LEE at National, which largely related to pushing out the timing of the effective date of the PREPA plan to restructure its debt and higher losses on variable interest entities at MBI Insurance Corp, most of which were reclassified from other comprehensive income and therefore neutral to total equity. Speaker 400:05:54These losses largely relate These losses largely relate to purchases of VIE debt executed as part of a planned termination of MBI Insurance Corp's last material insured ABS CDO transaction. These unfavorable variances were partly offset by foreign exchange gains on our euro medium term note liabilities in our corporate segment this quarter compared to mark to market losses on interest rate swaps and foreign exchange losses on euro medium term notes in our corporate segment in the Q1 of last year. As a reminder, in the Q4 of 2023 and the Q1 of 2024, we terminated all of the swaps that were part of our Holden Company ALM business. The company's adjusted net loss, a non GAAP measure, was $24,000,000 or a negative $0.52 per share for the Q1 of 2024 compared with an adjusted net loss of $1,000,000 or negative $0.03 per share for the Q1 of 2023. The unfavorable change was primarily due to higher loss in LAE at National in the current quarter. Speaker 400:07:17MBIA Inc. Book value per share decreased $1.24 to a negative $33.80 per share as of March 31, 2024 versus a negative $32.56 per share as of December 31, 2023, primarily due to the net loss for the quarter. Included in MBI Inc. Book value as of March 31, 2024 is a negative $45.44 per share of MBI Insurance Corp. Book value versus a negative $44.91 per share as of December 31, 2023. Speaker 400:08:05I will now spend a few minutes on our corporate segment balance sheet. The corporate segment, which primarily comprises the activities of the holding company, MBIA Inc, had total assets of approximately $710,000,000 as of March 31, 2024. Within this total are the following material assets: Unencumbered cash and liquid assets held by MBIA Inc. Totaled $376,000,000 compared with $411,000,000 as of December 31, 2023. The decrease was largely due to spending approximately $36,000,000 on retiring GFL Euro denominated medium term note liabilities before their maturities. Speaker 400:09:00These purchases were executed at prices accretive to equity and will reduce euro exchange rate volatility within our results going forward. I'll also note that subsequent to March 31, we spent an additional $26,000,000 to retire GFL's remaining near term euro denominated medium term note liabilities at a price accretive to equity. In addition to the unencumbered cash and liquid assets I mentioned, the corporate segment's assets included approximately $230,000,000 of assets at market value pledged to guaranteed investment contract holders. Turning to the insurance company's statutory results, National reported a statutory net loss of $11,000,000 for the Q1 of 2024 compared to statutory net income of $11,000,000 for the Q1 of 2023. The unfavorable variance was primarily driven by higher loss in LEE, largely related to the estimated extension of the PREPA debt restructuring and to a lesser extent, lower net investment income. Speaker 400:10:23Net investment income in 2024 reflects lower invested assets due to the as of right and special dividends paid by National to MBIA Inc. In the Q4 of 2023, which totaled almost $650,000,000 National statutory capital decreased by $18,000,000 largely due to its net loss for the quarter and consistent with year end 2023 was approximately $1,100,000,000 as of March 31, 2024. Claims paying resources were $1,700,000,000 also consistent with year end 2023. As of March 31, 2024, National had gross par outstanding of $27,800,000,000 which is down about $600,000,000 from year end 2023. Now we'll turn to MBI Insurance Corp. Speaker 400:11:28MBI Insurance Corp reported a statutory net loss of $35,000,000 for the Q1 of 2024 compared to a statutory net loss of $20,000,000 for the Q1 of 2023. Net losses in both periods were driven by Lawson LAE on primarily Zohar related salvage. As of March 31, 2024, the statutory capital of MBI Insurance Corp was $119,000,000 down from $152,000,000 at year end 2023, primarily due to the net loss for the current quarter. Claims paying resources totaled $468,000,000 at March 31, 2024, compared to $504,000,000 at year end 2023. MBI Insurance Corp. Speaker 400:12:25Insured gross par outstanding was $2,700,000,000 as of March 31, 2024, down about 5% from year end 2023. And now, we will turn the call over to the operator to begin the question and answer session. Operator00:13:00We'll take our first question from Tommy McJoynt with KBW. Please go ahead. Speaker 300:13:06Hey, good morning guys. Thanks for taking my questions. You've repurchased some medium term notes during the quarter and post quarter end. Can you talk about your current liquidity profile at the holding company and your appetite and ability to continue repurchasing some of those liabilities? And should all those transactions be accretive? Speaker 200:13:28Yes. Tommy, as I think you know, after we did the dividend at the end of last year, the amount that went up to the holding company, depending on how you look at it, the dividend was $550,000,000 We sent about $400,000,000 out to the actual shareholders. So our liquidity to the holding company is stronger than it's been in quite a while. And so as we've indicated on the last call, we continue to look for opportunities whether it be buying debt, buying stock in terms of how to use that liquidity. So we do have opportunities to do that. Speaker 200:14:03It really is a matter of balancing all those trade offs and looking for good opportunities, whether they be near term debt, some of the longer maturities and it really just has to do with what the price is and therefore what the interest rates are at any point in time. So we'll continue to look at that. And we do believe that they are value adding to our shareholders when we do them. Speaker 300:14:53Thanks. Actually, and just one follow-up here. Between the investment agreements, the medium term notes and the unsecured notes on the holding company balance sheet, are all of those able to be repurchased or redeemed in the open market? Or do some of those Speaker 500:15:12have to wait till maturity? Speaker 400:15:13Yes. This is Joe Sackinger. Good morning. The investment agreements do have to wait for maturity. There are really no provisions to call those earlier. Speaker 400:15:24However, as we've done in the past, we are able to purchase the medium term notes and the ink unsecured debt. And as Bill explained, we'll look to be opportunistic about getting those back at prices accretive to equity. Operator00:15:55We'll take our next question from John Staley with Staley Capital Advisors. Speaker 500:16:01Bill, I'm curious, what do you think is contributing to the lack of an issuance of an opinion, particularly from Judge Swinney? It just seems really puzzling to me that this thing has been around for so long. Can't imagine what the hell is new. What are your comments on when this thing finally gets resolved? Speaker 200:16:29Yes. Good morning, John. As you know, I guess there's 2 things that we focused on or we are focusing on. 1 was the hearing at the First Circuit. That took place January 29, I believe, is when the hearing took place. Speaker 200:16:45So we're now more than 3 months past that. There is a view that Judge Swain is waiting for the First Circuit to issue their opinion before she issues the confirmation. And unfortunately, we have some experience over the years. It's just very difficult to predict when these opinions will be issued. So just like you, we're very focused on it. Speaker 200:17:11It could come any day, but I suppose we've been saying that now for over 3 months. So I can't tell you when it's going to happen, but you're focused on the right thing, which I think is the First Circuit and then Judge Swain. Speaker 500:17:26Okay. And at what level do you become more active in buying stock back? Speaker 200:17:36As you know, it's we've done a lot of it out of National. Right now, National doesn't have capacity. But as I just mentioned in response to the earlier caller, we continue to look at it at the holding company. And we'll continue to look at where the stock is trading, what the best use of that cash is and what's best for our shareholders. Speaker 500:17:58So that any buying would be done at the holding company level and you have capacity to do that? Speaker 200:18:05We do. We have authorization and we have liquidity to do Speaker 500:18:09that. Okay. All right. Thank you. Operator00:18:26And there appears to be no further questions at this time. I'll turn the call back over to the management for closing remarks. Speaker 100:18:33Thank you, Ashley, and thanks to those of you listening to our call today. Please contact us directly if you have any additional questions. We also recommend that you visit our website at mbia.com for additional information about the company. Thank you for your interest in MBIA. Good day and goodbye. Operator00:18:52Thank you, ladies and gentlemen. This does conclude today's MBIA First quarter 2024 financial results conference call. You may now disconnect your line and have a wonderful day.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallMBIA Q1 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) MBIA Earnings HeadlinesAbedi Pele not recognized as Marseille honour 3 great ex-players (photos)May 3 at 10:29 PM | msn.comWhat Was Abbey Hsu’s Contract With the Connecticut Sun? 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Email Address About MBIAMBIA (NYSE:MBI) provides financial guarantee insurance services to public finance markets in the United States. It operates United States (U.S.) Public Finance Insurance, and International and Structured Finance Insurance segments. The company issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of the U.S. political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, housing authorities, and other similar agencies and obligations issued by private entities. It also insures the non-U.S. public finance and global structured finance, including asset-backed obligations; and sovereign-related and sub-sovereign bonds, and privately issued bonds used for the financing for utilities, toll roads, bridges, public transportation facilities, and other types of infrastructure projects, as well as offers third-party reinsurance services. MBIA Inc. was founded in 1973 and is headquartered in Purchase, New York.View MBIA ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Palantir Stock Drops Despite Stellar Earnings: What's Next?Is Eli Lilly a Buy After Weak Earnings and CVS-Novo Partnership?Is Reddit Stock a Buy, Sell, or Hold After Earnings Release?Warning or Opportunity After Super Micro Computer's EarningsAmazon Earnings: 2 Reasons to Love It, 1 Reason to Be CautiousRocket Lab Braces for Q1 Earnings Amid Soaring ExpectationsMeta Takes A Bow With Q1 Earnings - Watch For Tariff Impact in Q2 Upcoming Earnings ARM (5/7/2025)AppLovin (5/7/2025)Fortinet (5/7/2025)MercadoLibre (5/7/2025)Cencora (5/7/2025)Carvana (5/7/2025)Walt Disney (5/7/2025)Emerson Electric (5/7/2025)Johnson Controls International (5/7/2025)Lloyds Banking Group (5/7/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 6 speakers on the call. Operator00:00:00Welcome to the MBIA Inc. 1st Quarter 2024 Financial Results Conference Call. I would now like to turn the call over to Greg Diamond, Managing Director of Investor and Media Relations at MBIA. Please go ahead, sir. Speaker 100:00:12Thank you, Ashley. Welcome to MBIA's conference call for our Q1 2024 financial results. After the market closed yesterday, we issued and posted several items on our website, including our financial results, our 10 Q, quarterly operating supplement and statutory financial statements for both MBIA Insurance Corporation and the National Public Finance Guarantee Corporation. We also posted updates to the listings of our insurance company's insured portfolios. Regarding today's call, please note that anything said on the call is qualified by the information provided in the company's 10 ks, 10 Q and other SEC filings as our Company's definitive disclosures are incorporated in those documents. Speaker 100:00:56We urge investors to read our 10 ks and 10 Qs as they contain our most current disclosure about the company and its financial and operating results. Those documents also contain information that may not be addressed on today's call. The definitions and reconciliations of the non GAAP terms included in our remarks today are also included in our 10 ks and 10 Qs as well as our financial results report and our quarterly operating supplement. The recorded replay of today's call will become available on the MBIA website approximately 2 hours after the end of the call. Now here is our Safe Harbor disclosure statement. Speaker 100:01:37Our remarks on today's conference call may contain forward looking statements. Important factors such as general market conditions and the competitive environment could cause our actual results to differ materially from the projected results referenced in our forward looking statements. Risk factors are detailed in our 10 ks and 10 Qs, which are available on our website at mbia.com. The company cautions not to place undue reliance on any such forward looking statements. Company also undertakes no obligation to publicly correct or update any forward looking statement if it later becomes aware that such statement is no longer accurate. Speaker 100:02:15For our call today, Bill Fallon and Joe Sackinger will provide introductory comments and then a question and answer session will follow. Now here is Bill Fallon. Speaker 200:02:24Thanks, Greg. Good morning, everyone. Thanks for being with us today. Last month, we said goodbye to Anthony McKernan, our CFO, who helped us navigate through some very difficult times and was instrumental in many projects that have been critical to MBIA. Anthony will be missed and we wish him the very best in his future endeavors. Speaker 200:02:46Our Q1 2024 results were relatively straightforward and relatively unchanged versus a year ago. Our new CFO, Joe Schackinger, will have more to say about these results shortly. In the meantime, our primary objectives continue to be focused on the resolution of our remaining Puerto Rico exposure and then restarting the process to sell the company. Regarding PREPA, National's remaining exposure to PREPA was $610,000,000 of gross par insured at the end of the Q1. The Title III court held the confirmation hearing for PREPA's plan of adjustment in March of this year and we await a ruling on that hearing as well as rulings to be issued by the 1st Circuit Court regarding appeals being sought by bondholders opposing the current PREPA restructuring plan. Speaker 200:03:36Regarding the balance of National's insured portfolio, those credits have continued to perform generally consistent with our expectations. The gross par amount outstanding for National's insured portfolio has declined by approximately $600,000,000 from year end 2023 to $27,800,000,000 Speaker 300:03:56at the Speaker 200:03:56end of the Q1 of this year. National's leverage ratio of gross part of statutory capital remained unchanged from year end 2023 at 25:one. At the end of the Q1, National had total claims paying resources of $1,700,000,000 and statutory capital surplus of $1,100,000,000 Now Joe will provide additional comments about our financial results. Speaker 400:04:25Thank you, Bill, and good morning all. I will begin with a review of our Q1 2024 GAAP and non GAAP results and then provide an overview of our statutory results. The company reported a consolidated GAAP net loss of $86,000,000 or a negative $1.84 per share for the Q1 of 2024 compared to a consolidated GAAP net loss of $93,000,000 or a negative $1.86 per share for the Q1 of 2023. The lower GAAP net loss this quarter was largely driven by lower losses from our discontinued operations. Our net loss from continuing operations of $87,000,000 was slightly higher in the Q1 of 2024 compared with a net loss of $83,000,000 in the same period in 2023, primarily as a result of higher loss in LEE at National, which largely related to pushing out the timing of the effective date of the PREPA plan to restructure its debt and higher losses on variable interest entities at MBI Insurance Corp, most of which were reclassified from other comprehensive income and therefore neutral to total equity. Speaker 400:05:54These losses largely relate These losses largely relate to purchases of VIE debt executed as part of a planned termination of MBI Insurance Corp's last material insured ABS CDO transaction. These unfavorable variances were partly offset by foreign exchange gains on our euro medium term note liabilities in our corporate segment this quarter compared to mark to market losses on interest rate swaps and foreign exchange losses on euro medium term notes in our corporate segment in the Q1 of last year. As a reminder, in the Q4 of 2023 and the Q1 of 2024, we terminated all of the swaps that were part of our Holden Company ALM business. The company's adjusted net loss, a non GAAP measure, was $24,000,000 or a negative $0.52 per share for the Q1 of 2024 compared with an adjusted net loss of $1,000,000 or negative $0.03 per share for the Q1 of 2023. The unfavorable change was primarily due to higher loss in LAE at National in the current quarter. Speaker 400:07:17MBIA Inc. Book value per share decreased $1.24 to a negative $33.80 per share as of March 31, 2024 versus a negative $32.56 per share as of December 31, 2023, primarily due to the net loss for the quarter. Included in MBI Inc. Book value as of March 31, 2024 is a negative $45.44 per share of MBI Insurance Corp. Book value versus a negative $44.91 per share as of December 31, 2023. Speaker 400:08:05I will now spend a few minutes on our corporate segment balance sheet. The corporate segment, which primarily comprises the activities of the holding company, MBIA Inc, had total assets of approximately $710,000,000 as of March 31, 2024. Within this total are the following material assets: Unencumbered cash and liquid assets held by MBIA Inc. Totaled $376,000,000 compared with $411,000,000 as of December 31, 2023. The decrease was largely due to spending approximately $36,000,000 on retiring GFL Euro denominated medium term note liabilities before their maturities. Speaker 400:09:00These purchases were executed at prices accretive to equity and will reduce euro exchange rate volatility within our results going forward. I'll also note that subsequent to March 31, we spent an additional $26,000,000 to retire GFL's remaining near term euro denominated medium term note liabilities at a price accretive to equity. In addition to the unencumbered cash and liquid assets I mentioned, the corporate segment's assets included approximately $230,000,000 of assets at market value pledged to guaranteed investment contract holders. Turning to the insurance company's statutory results, National reported a statutory net loss of $11,000,000 for the Q1 of 2024 compared to statutory net income of $11,000,000 for the Q1 of 2023. The unfavorable variance was primarily driven by higher loss in LEE, largely related to the estimated extension of the PREPA debt restructuring and to a lesser extent, lower net investment income. Speaker 400:10:23Net investment income in 2024 reflects lower invested assets due to the as of right and special dividends paid by National to MBIA Inc. In the Q4 of 2023, which totaled almost $650,000,000 National statutory capital decreased by $18,000,000 largely due to its net loss for the quarter and consistent with year end 2023 was approximately $1,100,000,000 as of March 31, 2024. Claims paying resources were $1,700,000,000 also consistent with year end 2023. As of March 31, 2024, National had gross par outstanding of $27,800,000,000 which is down about $600,000,000 from year end 2023. Now we'll turn to MBI Insurance Corp. Speaker 400:11:28MBI Insurance Corp reported a statutory net loss of $35,000,000 for the Q1 of 2024 compared to a statutory net loss of $20,000,000 for the Q1 of 2023. Net losses in both periods were driven by Lawson LAE on primarily Zohar related salvage. As of March 31, 2024, the statutory capital of MBI Insurance Corp was $119,000,000 down from $152,000,000 at year end 2023, primarily due to the net loss for the current quarter. Claims paying resources totaled $468,000,000 at March 31, 2024, compared to $504,000,000 at year end 2023. MBI Insurance Corp. Speaker 400:12:25Insured gross par outstanding was $2,700,000,000 as of March 31, 2024, down about 5% from year end 2023. And now, we will turn the call over to the operator to begin the question and answer session. Operator00:13:00We'll take our first question from Tommy McJoynt with KBW. Please go ahead. Speaker 300:13:06Hey, good morning guys. Thanks for taking my questions. You've repurchased some medium term notes during the quarter and post quarter end. Can you talk about your current liquidity profile at the holding company and your appetite and ability to continue repurchasing some of those liabilities? And should all those transactions be accretive? Speaker 200:13:28Yes. Tommy, as I think you know, after we did the dividend at the end of last year, the amount that went up to the holding company, depending on how you look at it, the dividend was $550,000,000 We sent about $400,000,000 out to the actual shareholders. So our liquidity to the holding company is stronger than it's been in quite a while. And so as we've indicated on the last call, we continue to look for opportunities whether it be buying debt, buying stock in terms of how to use that liquidity. So we do have opportunities to do that. Speaker 200:14:03It really is a matter of balancing all those trade offs and looking for good opportunities, whether they be near term debt, some of the longer maturities and it really just has to do with what the price is and therefore what the interest rates are at any point in time. So we'll continue to look at that. And we do believe that they are value adding to our shareholders when we do them. Speaker 300:14:53Thanks. Actually, and just one follow-up here. Between the investment agreements, the medium term notes and the unsecured notes on the holding company balance sheet, are all of those able to be repurchased or redeemed in the open market? Or do some of those Speaker 500:15:12have to wait till maturity? Speaker 400:15:13Yes. This is Joe Sackinger. Good morning. The investment agreements do have to wait for maturity. There are really no provisions to call those earlier. Speaker 400:15:24However, as we've done in the past, we are able to purchase the medium term notes and the ink unsecured debt. And as Bill explained, we'll look to be opportunistic about getting those back at prices accretive to equity. Operator00:15:55We'll take our next question from John Staley with Staley Capital Advisors. Speaker 500:16:01Bill, I'm curious, what do you think is contributing to the lack of an issuance of an opinion, particularly from Judge Swinney? It just seems really puzzling to me that this thing has been around for so long. Can't imagine what the hell is new. What are your comments on when this thing finally gets resolved? Speaker 200:16:29Yes. Good morning, John. As you know, I guess there's 2 things that we focused on or we are focusing on. 1 was the hearing at the First Circuit. That took place January 29, I believe, is when the hearing took place. Speaker 200:16:45So we're now more than 3 months past that. There is a view that Judge Swain is waiting for the First Circuit to issue their opinion before she issues the confirmation. And unfortunately, we have some experience over the years. It's just very difficult to predict when these opinions will be issued. So just like you, we're very focused on it. Speaker 200:17:11It could come any day, but I suppose we've been saying that now for over 3 months. So I can't tell you when it's going to happen, but you're focused on the right thing, which I think is the First Circuit and then Judge Swain. Speaker 500:17:26Okay. And at what level do you become more active in buying stock back? Speaker 200:17:36As you know, it's we've done a lot of it out of National. Right now, National doesn't have capacity. But as I just mentioned in response to the earlier caller, we continue to look at it at the holding company. And we'll continue to look at where the stock is trading, what the best use of that cash is and what's best for our shareholders. Speaker 500:17:58So that any buying would be done at the holding company level and you have capacity to do that? Speaker 200:18:05We do. We have authorization and we have liquidity to do Speaker 500:18:09that. Okay. All right. Thank you. Operator00:18:26And there appears to be no further questions at this time. I'll turn the call back over to the management for closing remarks. Speaker 100:18:33Thank you, Ashley, and thanks to those of you listening to our call today. Please contact us directly if you have any additional questions. We also recommend that you visit our website at mbia.com for additional information about the company. Thank you for your interest in MBIA. Good day and goodbye. Operator00:18:52Thank you, ladies and gentlemen. This does conclude today's MBIA First quarter 2024 financial results conference call. You may now disconnect your line and have a wonderful day.Read morePowered by