Mbia Inc (MBI) SEC Filing 10-Q Quarterly report for the period ending Tuesday, June 30, 2020

Exhibit 99.1

MBIA Inc. Second Quarter 2020 Financial Results dated August 5, 2020

PURCHASE, N.Y.—(BUSINESS WIRE)—MBIA Inc. (NYSE:MBI) (the Company) today reported a consolidated GAAP net loss of $106 million, or $(1.69) per share, for the second quarter of 2020 compared to a consolidated GAAP net loss of $207 million, or $(2.45) per share, for the second quarter of 2019. The improved result versus last year’s second quarter was primarily due to fair value gains on interest rate swaps in the second quarter of 2020 versus fair value losses in the second quarter of 2019 due to favorable changes to interest rate curves, favorable changes in revenues of consolidated VIEs as a result of the reversal of an allowance for credit losses and an increase in estimated recoveries within certain RMBS transactions in 2020 versus losses in 2019 resulting from deconsolidating VIEs. The net loss for the second quarter of 2020 was mainly due to loss and loss adjustment expense related to net losses on Puerto Rico bonds insured by National Public Finance Guarantee Corporation (“National”) and reduced insurance loss recoveries on collateralized debt obligations insured by MBIA Corp.

Book value per share was $5.55 as of June 30, 2020 compared with $10.40 as of December 31, 2019. The decrease in book value per share since year-end 2019 was primarily due to the year-to-date net loss, partially offset by fewer shares outstanding resulting from MBIA Inc. shares purchased by National since year-end 2019.

The Company also reported an Adjusted Net Loss (a non-GAAP measure defined in the attached Explanation of Non-GAAP Financial Measures) of $72 million or $(1.15) per diluted share for the second quarter of 2020 compared with an Adjusted Net Loss of

$76 million or $(0.90) per diluted share for the second quarter of 2019. The lower Adjusted Net Loss for the second quarter of 2020 was primarily due to lower loss and loss adjustment expense at National partially offset by lower net investment income.

Adjusted Net Income (Loss) provides investors with views of the Company’s operating results that management uses in measuring financial performance. Reconciliations of Adjusted Net Income (Loss) to net income, calculated in accordance with GAAP, are also attached.

Statement from Company Representative

Bill Fallon, MBIA’s Chief Executive Officer noted, “This quarter’s loss and loss adjustment expense associated with National’s Puerto Rico exposure was the largest driver of our Adjusted Net Loss for the quarter.” Mr. Fallon added, “We have reflected the recent rulings from the Title III court concerning the Puerto Rico Highway and Transportation Authority bonds, although we disagree with that decision and intend to pursue our rights at the appellate level after the order becomes final.”