MBIA Q4 2025 Earnings Report

MBIA EPS Results

• Actual EPS: -$0.24
• Consensus EPS: -$0.05
• Beat/Miss: Missed by -$0.19
• One Year Ago EPS: N/A

MBIA Revenue Results

• Actual Revenue: $28.00 million
• Expected Revenue: $26.50 million
• Beat/Miss: Beat by +$1.50 million
• YoY Revenue Growth: N/A

MBIA Announcement Details

• Quarter: Q4 2025
• Date: 2/26/2026
• Time: After Market Closes
• Conference Call Date: Friday, February 27, 2026
• Conference Call Time: 8:00AM ET

MBIA (NYSE:MBI) Inc. (NYSE: MBI) is a financial services holding company focused on financial guarantee insurance and related activities. Through its subsidiaries, the company has historically provided guarantees that support the timely payment of principal and interest on municipal bonds and other publicly issued debt, helping issuers access capital markets and potentially improve the credit quality of their obligations.

MBIA’s businesses have included public finance and structured finance insurance. Its principal operating subsidiaries have included National Public Finance Guarantee Corporation, which focuses on U.S. public finance obligations, and MBIA Insurance Corporation, which has insured public finance and structured finance transactions. The company has also conducted business involving international public finance and structured finance assets.

MBIA has reduced its exposure to new insurance business and has focused on managing its existing insured portfolio, claims, investment assets and liabilities. The company traces its origins to the Municipal Bond Insurance Association, established in 1973, and became one of the best-known providers of bond insurance in the United States. Its current activities are primarily centered on portfolio management, risk reduction and the resolution of legacy obligations rather than broad expansion of new financial guarantee business.

MBIA Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: MBIA narrowed its full-year GAAP net loss to $177 million (FY2025) from $447 million a year earlier and reported an adjusted net income of $23 million, driven largely by a favorable sale and revised loss estimates on its PREPA exposure.
• Positive Sentiment: National reduced insured gross par by about $3 billion to ~$22 billion, improved its leverage from 28:1 to 24:1, and ended 2025 with statutory capital of $937 million and claims-paying resources of $1.4 billion.
• Negative Sentiment: While a custodial receipt sale improved PREPA recoveries, $425 million of PREPA exposure remains and substantive progress on a full resolution is stalled pending legal/appointment issues at the Financial Oversight and Management Board.
• Negative Sentiment: The holding company’s book value per share is deeply negative at -$44.27 (including MBIA Insurance Corp.’s -$53.35 per share), despite the corporate entity holding ~$357 million of unencumbered cash and receiving a $63 million as-of-right dividend.
• Neutral Sentiment: Management continues to consider strategic options — including a potential special dividend or sale of the company or assets — but says any special dividend or transaction requires regulator approval and no decision has been announced.

Presentation

[Operator]

Welcome to the MBIA Inc. fourth quarter and full year 2025 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. Sir, please go ahead.

[Greg Diamond, Managing Director of Investor and Media Relations at MBIA]

Thank you, Chelsea, and welcome to our conference call for the full year 2025 MBIA financial results. Excuse me. Hold on.

[Bill Fallon, CEO at MBIA]

Do you have a copy of the script?

[Greg Diamond, Managing Director of Investor and Media Relations at MBIA]

I have it. I had it on here.

[Bill Fallon, CEO at MBIA]

I understand.

[Greg Diamond, Managing Director of Investor and Media Relations at MBIA]

It just went away.

[Bill Fallon, CEO at MBIA]

You don't have it. Do we have a copy of it?

[Greg Diamond, Managing Director of Investor and Media Relations at MBIA]

I don't have a hard copy.

[Bill Fallon, CEO at MBIA]

Of the script?

[Greg Diamond, Managing Director of Investor and Media Relations at MBIA]

It's buried underneath this Outlook problem. Apologies. After the market closed yesterday, we issued and posted several items on our websites, including our financial results, 10-K, Quarterly Operating Supplement, and statutory financial statements for both MBIA Insurance Corporation and National Public Finance Guarantee Corporation. We also posted updates to the listings of our insurance company's insurance portfolios. Regarding today's call, please note that anything said on the call is qualified by the information provided by the company's 10-K and other SEC filings, as our company's definitive disclosures are incorporated in those documents. We urge investors to read our 10-K as it contains our most current disclosures about the company and its financial and operating results. The 10-K also contains information that may not be addressed on today's call.

[Greg Diamond, Managing Director of Investor and Media Relations at MBIA]

The definitions and reconciliations of the non-GAAP terms included in our remarks today are also included in our 10-K, as well as our financial results report and our Quarterly Operating Supplement. The recorded replay of today's call will become available approximately two hours after the end of the call. For our Safe Harbor Disclosure Statement. Our 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-K, which is available on our website at mbia.com. The company cautions not to place undue reliance on any such forward-looking statements. The 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.

[Greg Diamond, Managing Director of Investor and Media Relations at MBIA]

For our call today, Bill Fallon and Joe Schachinger will provide introductory comments, and then a question-and-answer session will follow. Now, here is Bill Fallon.

[Bill Fallon, CEO at MBIA]

Thanks, Greg. Good morning, everyone. Thank you for being with us today. We had lower net losses for our full year 2025 financial results versus full year 2024, and comparable net losses for the fourth quarters of 2025 and 2024. Comparing the two years' results, National recorded a benefit from losses and loss adjustment expense in 2025 versus incurred losses in 2024. For both years, National's losses in LAE resulted primarily from changes to loss estimates for its PREPA-related exposure. The 2025 benefit largely resulted from the sale of a custodial receipt associated with National's PREPA bankruptcy claims at prices better than National's loss estimates, as well as favorably revised estimate for losses on National's remaining $425 million of PREPA gross par outstanding. Our priority continues to be resolving National's PREPA exposure.

[Bill Fallon, CEO at MBIA]

In that regard, there has not been much substantive progress since our last conference call in November. Until the legal issues related to the members of the Financial Oversight and Management Board are resolved, it is unlikely that substantive progress will be made. Regarding 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 $3 billion from year-end 2024 to about $22 billion at the end of 2025. National's leverage ratio of gross par to statutory capital was 24 to one at the end of 2025, down from 28 to one at year-end 2024.

[Bill Fallon, CEO at MBIA]

As of December 31st, 2025, National had total claims-paying resources of $1.4 billion and statutory capital surplus in excess of $900 million. Joe will provide additional comments about our financial results.

[Joe Schachinger, EVP and CFO at MBIA]

Thank you, Bill. Good morning, all. I will begin with a review of our fourth quarter and full year 2025 GAAP and non-GAAP results, and then provide an overview of our statutory results. The company reported a consolidated GAAP net loss of $51 million or a negative $1.01 per share for the fourth quarter of 2025, compared with a consolidated GAAP net loss of also $51 million or a negative $1.07 per share for the fourth quarter of 2024.

[Joe Schachinger, EVP and CFO at MBIA]

When comparing the fourth quarters of 2025 and 2024, there were a few offsetting items. Lower revenues in our corporate segment, which were primarily due to a decrease in foreign exchange gains, were offset by lower interest expense on MBIA Insurance Corp.'s floating-rate surplus notes and lower operating expenses related to consolidated variable interest entities, or VIEs, at MBIA Insurance Corp. The company's adjusted net loss, a non-GAAP measure, was $12 million, or a negative $0.24 per share, for the fourth quarter of 2025, compared with an adjusted net loss of $22 million, or a negative $0.48 per share, for the fourth quarter of 2024. The favorable change was primarily due to lower losses in LAE at National, largely related to its PREPA exposure.

[Joe Schachinger, EVP and CFO at MBIA]

For full year 2025, the company reported a consolidated GAAP net loss of $177 million, or a negative $3.58 per share, compared with a consolidated net loss of $447 million, or a negative $9.43 per share for the full year 2024. The lower consolidated GAAP net loss for full year 2025 was driven by lower expenses and, to a lesser extent, higher revenues compared with full year 2024. Our lower expenses were primarily driven by a loss in LAE benefit on our PREPA exposure in 2025, compared with an expense in 2024. The benefit in 2025 primarily resulted from our sale of PREPA bankruptcy claims at an amount that exceeded National's loss recovery estimate and the impact of adjustments to our PREPA loss scenarios.

[Joe Schachinger, EVP and CFO at MBIA]

Contributing to our higher revenues were lower losses related to VIEs at MBIA Insurance Corp. In 2024, VIE losses resulted from the repurchase of VIE debt and the deconsolidation of a VIE, with no comparable activity in 2025. In addition, we recorded lower fair value losses in 2025 on assets acquired in connection with recoveries of paid claims related to the Zohar CDOs, offset by higher foreign exchange losses as a result of the dollar weakening and lower net investment income. The company's adjusted net income was $23 million, or $0.46 per share, for full year 2025, compared with an adjusted net loss of $184 million, or a $-3.90 per share, for full year 2024.

[Joe Schachinger, EVP and CFO at MBIA]

The favorable change was primarily due to the loss in LAE benefit at National in 2025 related to its PREPA exposure. MBIA Inc.'s book value per share decreased $3.28 to a negative $44.27 per share as of December 31st, 2025. This decrease was primarily due to our consolidated net loss for full year 2025. In addition, included in MBIA Inc.'s book value as of December 31st, 2025, is a negative $53.35 per share of MBIA Insurance Corp.'s book value. I 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 $653 million as of December 31st, 2025.

[Joe Schachinger, EVP and CFO at MBIA]

Within this total are the following material assets: Unencumbered cash and liquid assets held by MBIA Inc. totaled $357 million, compared with $380 million as of December 31st, 2024. The decrease was largely due to the repayment of MBIA Inc's 7% debt that matured in December of 2025 and the payment of operating expenses, partially offset by a dividend received from National. December of 2025, National declared and paid an as-of-right dividend of $63 million to MBIA Inc. Addition to these unencumbered cash and liquid assets, the corporate segment's assets included approximately $183 million of assets at market value, pledged to guaranteed investment agreement contract holders, which fully collateralized those contracts. I'll turn to the insurance company's statutory results.

[Joe Schachinger, EVP and CFO at MBIA]

National reported statutory net income of $5 million for the fourth quarter of 2025, compared with a statutory net loss of $10 million for the fourth quarter of 2024. The favorable variance was driven by lower loss in LAE in the fourth quarter of 2025 related to National's PREPA exposure. For full year 2025, National reported statutory net income of $88 million, compared with a statutory net loss of $133 million for full year 2024. The favorable change was primarily due to a loss in LAE benefit of $35 million in 2025, compared with an expense of $196 million in 2024. The loss in LAE activity in both years were mostly related to National's PREPA exposure.

[Joe Schachinger, EVP and CFO at MBIA]

National statutory capital as of December 31st, 2025, was $937 million, which was up $25 million compared with December 31st, 2024. The increase was largely due to National statutory net income for full year 2025, partially offset by the $63 million as-of-right dividend paid to MBIA Inc. As of year-end 2025, claims-paying resources were $1.4 billion. I'll turn to MBIA Insurance Corp. MBIA Insurance Corp reported a statutory net loss of $7 million for the fourth quarter of 2025, compared with statutory net income of $4 million for the fourth quarter of 2024.

[Joe Schachinger, EVP and CFO at MBIA]

The net loss for the fourth quarter of 2025 was driven by losses reclassified from surplus related to the dissolution of MBIA Insurance Corp.'s Mexican subsidiary and higher losses in LAE compared with the fourth quarter of 2024. In last year's fourth quarter, losses in LAE related to RMBS exposure were mostly offset by a benefit related to recovery estimates on the Zohar CDOs. For full year 2025, MBIA Insurance Corp. reported a statutory net loss of $26 million, compared with a statutory net loss of $64 million for full year 2024. The lower net loss in 2025 was primarily driven by lower losses in LAE, largely related to estimating recoveries of paid claims associated with the Zohar CDOs.

[Joe Schachinger, EVP and CFO at MBIA]

As of December 31st, 2025, the statutory capital of MBIA Insurance Corp was $79 million, down from $88 million at year-end 2024, due to its net loss for full year 2025, partially offset by an increase in the value of investments recorded directly to surplus. As of year-end 2025, claims-paying resources totaled $317 million. MBIA Insurance Corp's insured gross par outstanding was approximately $2 billion as of December 31st, 2025, down about 13% from year-end 2024. The decrease in gross par outstanding was primarily driven by regular amortization of the insured portfolio. Now we will turn the call over to the operator to begin the question and answer session.

[Operator]

Thank you. If you have a question at this time, please press star one on your telephone keypad. If you wish to remove yourself from the queue, press star two. We ask that when posing your question, you please pick up your handset to allow optimal sound quality. We'll take our first question from Tommy McJoynt with KBW. Please go ahead.

[Thomas McJoynt, Director at KBW]

Hey, good morning. The fourth quarter often presents a time or an opportunity for a special dividend, and that's based off of the special dividend that we saw out of National in fourth quarter of 2023. This most recent fourth quarter, did you guys explore the potential for a special dividend? Are you having conversations with your regulators about potentially distributing some of the excess capital beyond just the as-of-right dividend?

[Bill Fallon, CEO at MBIA]

Tommy, with regard to special dividends, first of all, there's nothing in particular about the fourth quarter. National, just given its history, has only actually requested and had one special dividend, which happened to be in the fourth quarter of 2023, a couple of years ago. It's something that we are looking at all the time. As you know, and can appreciate, as the portfolio runs off, and in particular, as our prep exposure comes down, which it did substantially in the second half of last year, the likelihood and the amount of a potential special dividend goes up. It's something that we're looking at all the time. There's no information we have at this point.

[Bill Fallon, CEO at MBIA]

The information that we would provide is that we have received approval for a special dividend and have distributed to the holding company. It's something that, again, we're looking at all the time, and I think since the last special dividend, circumstances have improved in terms of the likelihood of a special dividend.

[Thomas McJoynt, Director at KBW]

Thanks for that. The other important story that people are focused on just around the strategic process, potentially including a sale of the company. What's the latest updates there in that process as you, as you explore that opportunity? I've asked this before, and I'll ask it again: Do you think in a scenario where there is a sale, does the company just sell National and then take the proceeds and sort of wind down the rest of the operation? Or would the strategic action be to sell the entire holding company and its subsidiaries included? Thanks.

[Bill Fallon, CEO at MBIA]

As you know, and just as a reminder to other people, we did look at selling the company a few years ago. Based on the feedback during that process, we concluded it would be beneficial for our shareholders for us to go get a special dividend and then distribute money to the shareholders, and also to hopefully further resolve or make progress with regard to the PREPA restructuring. We obviously were successful with the dividend. PREPA, we reduced our exposure. I can't say that there's been much real progress in terms of resolving PREPA. We are, you know, optimistic that something will, excuse me, develop this year. With regard to whether to sell the entire company or whether we would sell just National, and then to your point, deal with all the other pieces, whatever is best for the shareholders is what we will do.

[Bill Fallon, CEO at MBIA]

In a sense, all options are on the table. A sale of the company, in a sense, is the cleanest way to do it. Again, if there is more value for shareholders by doing it, by its components, then that's what we'll do.

[Thomas McJoynt, Director at KBW]

Thanks.

[Operator]

Thank you. Our next question will come from John Staley with Staley Capital Advisors. Please go ahead.

[John Staley, Founding Partner at Staley Capital Advisors]

Thank you. Bill, I have a couple of quick questions. First of all, with regard to PREPA and the bonds that you sold, is there, a bid out there to sell the rest of your exposure? If so, how would it compare to the price you got the last time?

[Bill Fallon, CEO at MBIA]

With regard to the PREPA exposure that we sold last year, John, those were fully paid QSIBs. We are now in a situation where we really don't have much left. In fact, we've got a maturity coming up later this year, in the middle of the year.

[John Staley, Founding Partner at Staley Capital Advisors]

Oh, you're still paying? Okay.

[Bill Fallon, CEO at MBIA]

So we have the.

[John Staley, Founding Partner at Staley Capital Advisors]

I see.

[Bill Fallon, CEO at MBIA]

$425 million of exposure. That's not something that can be sold via the custodial receipt that we did last year.

[John Staley, Founding Partner at Staley Capital Advisors]

Okay.

[Bill Fallon, CEO at MBIA]

The answer is, we wouldn't do a sale like that.

[John Staley, Founding Partner at Staley Capital Advisors]

Okay. I understand.

[Bill Fallon, CEO at MBIA]

Term pull amount.

[John Staley, Founding Partner at Staley Capital Advisors]

Secondly, with some of the political trends that are happening, particularly New York, California, all the nonsense up in Minnesota, are you getting any pressure from your auditors about higher valuation reserves related to non-Puerto Rican credits?

[Bill Fallon, CEO at MBIA]

The short answer is no. As you can appreciate, we look at everything in the portfolio constantly. We're quite comfortable with the way everything is proceeding at this point. There's been nothing that's been identified. I understand what you're talking about. Nothing identified with regard to specific credits that would cause us to take additional reserves because of those activities that you referred to.

[John Staley, Founding Partner at Staley Capital Advisors]

All right. With regard to MBIA Insurance, where its statutory capital is dwarfed by its guarantees that are still out there, whatever it was, $2 billion or something like that. What has to happen for you to wrap that up so that it's no longer a part of, you have Puerto Rico, you have that subsidiary in which there's no liability back to MBIA Inc. Why, why don't you just get rid of it? Wrap it, liquidate it, or whatever you have to do, or is it regulators won't let you do that?

[Bill Fallon, CEO at MBIA]

There's some of both of those things. The runoff has occurred sort of as we expected. To your point, there's $2 billion left. There is one major restructuring in there, which is referred to as Zohar, which was a deal that we had wrapped.

[John Staley, Founding Partner at Staley Capital Advisors]

Right.

[Bill Fallon, CEO at MBIA]

That's one that's gonna take a little bit of time. Once that's resolved, then to your point, there's not much left with regard to the remaining runoff of that company, and so there may be ways after that, to accelerate the runoff of MBIA Insurance Corp.

[John Staley, Founding Partner at Staley Capital Advisors]

You're still managing a recovery process related to collateral with Zohar?

[Bill Fallon, CEO at MBIA]

That's correct.

[John Staley, Founding Partner at Staley Capital Advisors]

Oh, I got it. Okay. I know that Judge Swain, as I understand it, is pushing for the private parties to resolve things. I mean, I thought Trump may have done something with the Republican governor there, but what the hell is keeping this thing from being wrapped up? Puerto Rico is still being denied access to the municipal market, and the electricity is still going off. It just seems so crazy, and they're sitting there with all that money down there. I don't understand what's stopping them. Is it just politics?

[Bill Fallon, CEO at MBIA]

Well, I think in the near term, as I referred to in my comments, you've got the situation with the Oversight Board, which is the one negotiating the PREPA restructuring on behalf of the Commonwealth. There are four board members, as you know, there was the administration action last year to remove 6six of the board members. Three took it to court and were reinstated. Either the four existing board members need to, in a sense, take the initiative and start negotiating again with the bondholders, or when the administration names people to those open three spots, perhaps then that will be the catalyst to restarting negotiations. That's really, I think, what the creditors are waiting for, and as soon as that happens, I think then you'll see some real progress.

[John Staley, Founding Partner at Staley Capital Advisors]

Is there political pressure that you're aware of to get those six seats filled? Is there somebody who's a, an advocate for that in Congress?

[Bill Fallon, CEO at MBIA]

Well, there's two parts to it. With regard to the three that challenged their termination in court, there are lawsuits going on to remove those three still. I think the administration is taking the position that they should be removed, and therefore, those three spots, perhaps are a little uncertain for a period of time. With regard to the other three spots, I don't have an answer for you as to when the administration will fill those. Again, we would hope it would be sooner rather than later.

[John Staley, Founding Partner at Staley Capital Advisors]

Okay. All right. The issue gets down again to presidential authority?

[Bill Fallon, CEO at MBIA]

The president needs to approve all appointments to the board.

[John Staley, Founding Partner at Staley Capital Advisors]

Yeah, but he also could fire them. Somehow or other, some guys figure out that they still should be on the board. It's amazing to me. It must be driving you nuts.

[Bill Fallon, CEO at MBIA]

We understand your frustration, trust me.

[John Staley, Founding Partner at Staley Capital Advisors]

Okay. Thank you, Bill, very much.

[Bill Fallon, CEO at MBIA]

Thank you.

[Operator]

Thank you. As a reminder, that is star one to ask a question. Our next question will come from Patrick Stadelhofer with Kahn. Please go ahead.

[Patrick Stadelhofer, Portfolio Manager at Kahn]

Good morning.

[Bill Fallon, CEO at MBIA]

Good morning.

[Patrick Stadelhofer, Portfolio Manager at Kahn]

Just a question on the extraordinary dividend. Because it's been seven months since the custodial receipts were sold and kind of de-risked, the whole PREPA exposure. I'm just curious, what is the gating item to actually trying to get one, given that you've said, you know, the circumstances have improved and all of it, and you're looking at it, but what is it going to take you from looking at it to acting on it, especially with other progress somewhat stalled in PREPA? Thank you.

[Bill Fallon, CEO at MBIA]

Yeah, as I mentioned, with regard to the special dividend, it's something we're looking at all the time. We don't get into, you know, where we are in the process, whether we start a process, feedback from the regulator. Our view is those are discussions between us and our regulator. We talk to our regulator about lots of issues on a regular basis. When we have approval for a special dividend and when it's been distributed, as I mentioned earlier, we'll announce that that has taken place. Again, I think the things to look at are the runoff in the portfolio, and in particular, the reduction in the PREPA exposure. Again, for those people who are familiar, it is a process you go through with the regulator, which does take some time.

[Patrick Stadelhofer, Portfolio Manager at Kahn]

Thank you.

[Operator]

All right. Well, Patrick, your line is still open.

[Patrick Stadelhofer, Portfolio Manager at Kahn]

Oh, yeah. No. Thank you.

[Operator]

Okay. Okay, thank you. At this time, I am showing no further questions, I'd like to turn the floor back over to Greg Diamond for any additional or closing remarks.

[Greg Diamond, Managing Director of Investor and Media Relations at MBIA]

Thank you, Chelsea. Thanks to those 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 our company. Thank you for your interest in MBIA. Good day and goodbye.

[Operator]

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Participants

Executives

• Bill Fallon, CEO
• Greg Diamond, Managing Director of Investor and Media Relations
• Joe Schachinger, EVP and CFO

Analysts

• John Staley, Founding Partner at Staley Capital Advisors
• Patrick Stadelhofer, Portfolio Manager at Kahn
• Thomas McJoynt, Director at KBW