MBIA Inc. Files Q3 2024 10-Q Report

TL;DR

MBIA filed its Q3 10-Q. Financials are in. Check it.

AI Summary

MBIA Inc. reported its third-quarter results for the period ending September 30, 2024. The company's filing details its financial performance and position, including various financial instruments and liabilities. Specific dollar amounts and dates related to these financial metrics are available within the full report.

Why It Matters

This filing provides investors and analysts with the latest financial data for MBIA Inc., crucial for understanding the company's performance and risk exposure in the surety insurance sector.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report, but the nature of MBIA's business in financial guarantees and insurance can involve inherent risks.

Key Numbers

• Q3 — Quarterly Filing (Indicates the report covers the third quarter of the fiscal year.)
• 1231 — Fiscal Year End (Specifies the end date of MBIA's fiscal year.)

Key Players & Entities

• MBIA INC (company) — Filer
• 20240930 (date) — Period of Report
• 20241107 (date) — Filing Date
• 914-273-4545 (dollar_amount) — Business Phone

FAQ

Key Financial Figures

• $1 — ,108 sh ares of Common Stock, par value $1 per share, were outstanding. Table of

Filing Documents

• mbi-20240930.htm (10-Q) — 7431KB
• mbi-ex31_1.htm (EX-31.1) — 15KB
• mbi-ex31_2.htm (EX-31.2) — 15KB
• mbi-ex32_1.htm (EX-32.1) — 9KB
• mbi-ex32_2.htm (EX-32.2) — 9KB
• 0000950170-24-123396.txt ( ) — 33364KB
• mbi-20240930.xsd (EX-101.SCH) — 1894KB
• mbi-20240930_htm.xml (XML) — 11034KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION Item 1.

Financial Statements MBIA Inc. and Subsidiaries (Unaudited)

Financial Statements MBIA Inc. and Subsidiaries (Unaudited) 1 Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 (Unaudited) 1 Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 (Unaudited) 2 Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2024 and 2023 (Unaudited) 3 Consolidated Statements of Changes in Shareholders' Equity for the three and nine months ended September 30, 2024 and 2023 (Unaudited) 4 Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (Unaudited) 5

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 6 Note 1: Business Developments and Risks and Uncertainties 6 Note 2: Significant Accounting Policies 9 Note 3: Recent Accounting Pronouncements 10 Note 4: Variable Interest Entities 11 Note 5: Loss and Loss Adjustment Expense Reserves 12 Note 6: Fair Value of Financial Instruments 16 Note 7: Investments 29 Note 8: Income Taxes 33 Note 9: Business Segments 34 Note 10: Earnings Per Share 37 Note 11: Accumulated Other Comprehensive Income 38 Note 12: Commitments and Contingencies 39 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 40 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 64 Item 4.

Controls and Procedures

Controls and Procedures 64

OTHER INFORMATION

PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 65 Item 1A.

Risk Factors

Risk Factors 65 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 66 Item 6. Exhibits 67

SIGNATURES

SIGNATURES 68 Table of Contents FORWARD-LOOKING AND CAUTIONARY STATEMENTS This quarterly report of MBIA Inc., together with its consolidated subsidiaries, (collectively, "MBIA", the "Company", "we", "us" or "our") includes statements that are not historical or current facts and are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "believe", "anticipate", "project", "plan", "expect", "estimate", "intend", "will likely result", "looking forward", or "will continue" and similar expressions identify forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. MBIA cautions readers not to place undue reliance on any such forward-looking statements, which speak only to their respective dates. We undertake no obligation to publicly correct or update any forward-looking statement if the Company later becomes aware that such result is not likely to be achieved. The following are some of the general factors that could affect financial performance or could cause actual results to differ materially from estimates contained in or underlying the Company's forward-looking statements: increased credit losses or impairments on public finance obligations that National Public Finance Guarantee Corporation ("National") insures issued by state, local and territorial governments and finance authorities and other providers of public services, located in the U.S. or abroad, that are experiencing fiscal stress; the possibility that loss reserve estimates are not adequate to cover potential claims; a disruption in the cash flow from National or an inability to access the capital markets and our exposure to significant fluctuations in liquidity and asset values in the global credit markets as a result of collateral posting requirements

FI NANCIAL INFORMATION

PART I FI NANCIAL INFORMATION

F inancial Statements

Item 1. F inancial Statements MBIA INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions except share and per share amounts) September 30, 2024 December 31, 2023 Assets Investments: Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $ 1,107 and $ 1,175 ) $ 997 $ 1,043 Investments carried at fair value 223 337 Short-term investments, at fair value (amortized cost $ 468 and $ 548 ) 468 548 Other investments at amortized cost 1 3 Total investments 1,689 1,931 Cash and cash equivalents 72 104 Premiums receivable (net of allowance for credit losses of $ - and $ - ) 138 146 Deferred acquisition costs 28 31 Insurance loss recoverable 202 183 Assets held for sale 12 73 Other assets 57 76 Assets of consolidated variable interest entities: Cash 2 3 Investments carried at fair value - 22 Loans receivable at fair value 30 35 Other assets - 2 Total assets $ 2,230 $ 2,606 Liabilities and Equity Liabilities: Unearned premium revenue $ 208 $ 232 Loss and loss adjustment expense reserves 524 473 Long-term debt 2,705 2,585 Medium-term notes (includes financial instruments carried at fair value of $ 36 and $ 40 ) 440 497 Investment agreements 202 221 Liabilities held for sale 7 64 Other liabilities 86 86 Liabilities of consolidated variable interest entities: Variable interest entity debt (includes financial instruments carried at fair value of $ 32 and $ 78 ) 38 81 Derivative liabilities 8 14 Total liabilities 4,218 4,253 Commitments and contingencies (Refer to Note 12: Commitments and Contingencies) Equity: Preferred stock, par value $ 1 per share; authorized shares-- 10,000,000 ; issued and outstanding-- none - - Common stock, par value $ 1 per share; authorized shares-- 400,000,000 ; issued shares-- 283,186,115 and 283,186,115

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Note 1: Business Developments and Risks and Uncertainties (continued) Zohar CDOs Payment of claims on MBIA Corp.'s policies insuring the Class A-1 and A-2 notes issued by Zohar collateralized debt obligation ("CDO") 2003-1, Limited ("Zohar I") and Zohar II 2005-1, Limited ("Zohar II") (collectively, the "Zohar CDOs"), entitled MBIA Corp. to reimbursement of such amounts plus interest and expenses and/or to exercise certain rights and remedies to seek recovery of such amounts. MBIA Corp. has anticipated that it would receive substantial recoveries on the loans made to, and equity interests in, portfolio companies that, until late March of 2020, were purportedly controlled and managed by the sponsor and former collateral manager of the Zohar CDOs (collectively, the "Zohar Collateral"). Since March of 2018, MBIA Corp. had been pursuing those recoveries in a Delaware bankruptcy proceeding filed by the Zohar CDOs ("Zohar Funds Bankruptcy Cases"). Pursuant to a plan of liquidation that became effective in August of 2022, all remaining Zohar Collateral was distributed to MBIA Corp. either directly or in the form of interests in certain asset recovery entities. There still remains significant uncertainty with respect to the realizable value of the remaining loans and equity interests that formerly constituted the Zohar Collateral. Further, as the monetization of these assets unfolds, and new information concerning the financial condition of the portfolio companies is disclosed, the Company will continue to revise its expectations for recoveries. The interests in the asset recovery entities include various loans to and equity interest in portfolio companies. For those portfolio companies in which the Company does not have a majority of the voting interest, the Company recorded these assets as investments. For those portfolio companies in which the Company owns a majority of the voting interest, the Company consol

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