Mbia Inc (MBI) SEC Filing 10-Q Quarterly Report for the period ending Thursday, March 31, 2022

Exhibit 99.1

MBIA Inc. Full Year and Fourth Quarter 2021 Financial Results

February 28, 2022

MBIA Inc. (NYSE:MBI) (the Company) today reported a consolidated GAAP net loss of $445 million, or $(8.99) per diluted common share, for 2021 compared to a consolidated GAAP net loss of $578 million, or $(9.78) per diluted common share, for 2020. The lower net loss largely resulted from lower losses and loss adjustment expenses (LAE) and fair value gains on interest rate swaps and foreign exchange gains in 2021 versus losses in 2020. These favorable variances were partially offset by an adverse comparison of net gains and losses on consolidated VIEs where 2020 gains were driven by higher recoveries associated with a Credit Suisse RMBS transaction. The lower losses and LAE for 2021 resulted from lower losses and LAE at MBIA Insurance Corporation (MBIA Corp.), primarily related to the Zohar CDOs, partially offset by higher losses and LAE at National Public Guarantee Corporation (National), primarily related to its Puerto Rico exposure.

Book value per share was negative $5.73 as of December 31, 2021 compared with $2.55 as of December 31, 2020. The decrease in book value per share was primarily attributable to the consolidated net loss for 2021.

The Company also reported an Adjusted Net Loss (a non-GAAP measure defined in the attached Explanation of Non-GAAP Financial Measures) of $261 million or $(5.27) per diluted common share for 2021 compared with an Adjusted Net Loss of $173 million or $(2.93) per diluted common share for 2020. The greater Adjusted Net Loss for 2021 was primarily due to National’s greater losses and LAE largely related to its Puerto Rico exposure and lower net investment income and premiums earned.

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, “We are pleased with the continuing progress to resolve National’s Puerto Rico exposure. In January of this year, the Title III court confirmed the Plan of Adjustment for Puerto Rico’s General Obligation and Public Building Authority Bonds, which, when effective, will remove a substantial amount of uncertainty associated with our insurance losses on those bonds. Also during the first quarter, we sold nearly all of our PREPA bankruptcy claims that were available for sale, thus converting to cash claims that will be resolved in the PREPA Title III case.”

Fourth Quarter Results

The Company recorded a consolidated GAAP net loss of $155 million, or $3.12 per diluted common share, for the fourth quarter of 2021 compared with a consolidated net loss of $81 million, or $(1.64) per diluted common share, for the fourth quarter of 2020. The greater net loss for the fourth quarter of 2021 was primarily due to the unfavorable variance related to the fourth quarter of 2020 increased recovery associated with variable interest entities revenue gains at MBIA Corp. for the Credit Suisse RMBS putback transaction and increased losses and LAE at National, primarily due to its Puerto Rico exposure. The increase in National’s loss and LAE for the fourth quarter of 2021 resulted primarily from its Puerto Rico Highway and Transportation Authority (HTA) and Puerto Rico Electric Power Authority (PREPA) exposure.

On HTA, assumptions were updated to reflect the estimated fair value of certain collateral expected to be received by National under the current Restructuring Support Agreement (RSA), as of the date to be received, which resulted in a reduction to the previously recorded estimated HTA recoveries. The change in the quarter from scenario based cash flow loss reserve and recovery analysis to an estimate of fair value on the date of receipt does not incorporate an estimate of both future potential security pricing and timing of sales, which will determine the ultimate economic value to National.