MBIA's Q3 Earnings Grows Y/Y

Zacks

MBIA Inc. (MBI) reported third-quarter adjusted reported net income of 68 cents per share compared with 4 cents per share in the year-ago quarter.

Total revenue was $420 million, significantly improved from revenues of $281 million in the year-ago quarter.

MBIA Inc.'s total premiums earned were $104 million, down from $155 million in the year-ago quarter.

Net investment income was reported at $42 million, down from $50 million in the year-ago quarter.

Segmental Performance

The U.S. Public Finance Insurance segment is managed by its subsidiary, National Public Finance, and was set up in Feb 2009.

Total premiums earned in the U.S. public finance insurance segment were $75 million, down 44% year over year.

Pre-tax income was $6.0 million compared with $164 million in the prior-year quarter.

The Structured Finance and International Insurance business operations are managed by MBIA Corp. The segment suffered an adjusted pre-tax loss of $167 million compared with an adjusted pre-tax loss of $224 million in the prior-year quarter. Premiums earned were $40.0 million in the quarter up 5.3% year over year.

The Advisory Services are managed by Cutwater Asset Management. Cutwater recorded a pre-tax loss of $8 million compared with a pre-tax loss of $2 million in prior-year quarter. The increase in the pre-tax loss was primarily due to lower fees from affiliates.

Financial Update

Adjusted book value per share (a non-GAAP measure) dropped to $28.68 per share as of Dec 31, 2013, compared with $30.68 as of Dec 31, 2012.

MBIA Corp.'s statutory capital stood at $1.0 billion as on Sep 30 and claims-paying resources were $3.5 billion.

Other companies in the same industry, Kemper Corp. (KMPR), Old Republic International Corp. (ORI) with a Zacks Rank #1 (Strong Buy) and American International Group (AIG) with a Zacks Rank #2 (Buy).

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