MBIA (MBI) Q2 2025 earnings summary

Executive summary

• Net loss for Q2 2025 narrowed to $56 million from $254 million year-over-year, mainly due to lower losses and LAE at National, especially related to PREPA exposure.

• Adjusted net loss (non-GAAP) was $8 million ($0.17/share), a substantial improvement from $138 million ($2.90/share) in Q2 2024, reflecting reduced LAE losses.

• Statutory net income for National was $6 million, reversing a $131 million loss in Q2 2024; MBIA Insurance Corp also reported a $4 million statutory net income versus a $35 million loss last year.

• MBIA Mexico substantially completed liquidation, returning $12 million of capital to MBIA Corp. in H1 2025.

• No new financial guarantee policies are expected to be written outside of remediation activities.

Financial highlights

• Book value per share was -$43.14 as of June 30, 2025, down from -$40.99 at year-end 2024, mainly due to a $118 million net loss in the first half of 2025.

• National's gross par insured portfolio was $24.2 billion as of June 30, 2025, declining by $0.6–$1.1 billion since year-end 2024.

• National's leverage ratio was 26:1 gross par to statutory capital at quarter-end.

• Claims-paying resources: National at $1.5 billion, MBIA Insurance Corp at $346 million as of June 30, 2025.

• Liquidity position totaled $355 million as of June 30, 2025, consisting of cash, cash equivalents, and liquid invested assets.

Outlook and guidance

• Resolution of National's PREPA exposure remains a top priority, with timing uncertain due to ongoing Title III court proceedings and litigation.

• Sale of the company to maximize shareholder value is contingent on reducing PREPA-related uncertainty.

• No material changes in market risk exposures related to interest rates, FX, or credit spreads since year-end 2024.

• National is expected to remain the primary source of liquidity for the holding company, with future dividends subject to regulatory approval.

• The company continues to monitor opportunities for share repurchases, balancing liquidity and statutory requirements; $71 million remains authorized.