MBIA Inc (MBI, Financial) released its third-quarter 2023 financial results on November 2, 2023. The company reported a consolidated GAAP net loss of $185 million, or $(3.94) per share, for the third quarter of 2023. This is a significant increase compared to a consolidated GAAP net loss of $34 million, or $(0.67) per share, for the third quarter of 2022. The adverse result versus last year’s third quarter was primarily due to an unfavorable variance of losses and loss adjustment expenses (LAE) at National Public Finance Guarantee Corporation (National), primarily due to greater losses and LAE associated with National’s Puerto Rico Electric Power Authority (PREPA) exposure.
Financial Performance
The company's book value per share was negative $24.22 as of September 30, 2023, compared with a negative $16.07 as of December 31, 2022. The decrease in book value per share since year-end 2022 was primarily due to the net loss for the first nine months of 2023.
MBIA Inc also reported an Adjusted Net Loss of $138 million or $(2.92) per diluted share for the third quarter of 2023 compared with Adjusted Net Loss of $17 million or $(0.34) per diluted share for the third quarter of 2022. The unfavorable result was primarily due to increased losses and LAE at National that primarily related to its insurance of PREPA debt.
Year-to-Date Results
The company recorded a consolidated GAAP net loss of $353 million, or $(7.25) per diluted common share, for the nine months ended September 30, 2023 compared with a consolidated GAAP net loss of $143 million, or $(2.87) per diluted common share, for the first nine months of 2022.
Liquidity Position
As of September 30, 2023, MBIA Inc.’s liquidity position totaled $194 million, consisting primarily of cash and cash equivalents and liquid invested assets. During the third quarter of 2023, MBIA Inc. acquired 672 thousand shares of MBIA Inc. common stock at an average price of $8.38 per share.
Financial Tables
The company's consolidated balance sheet shows total assets of $2.99 billion as of September 30, 2023, compared to $3.37 billion as of December 31, 2022. Total liabilities stood at $4.21 billion as of September 30, 2023, compared to $4.25 billion as of December 31, 2022.
The consolidated statement of operations shows total revenues of $8 million for the third quarter of 2023, compared to $17 million for the same period in 2022. Total expenses for the quarter were $193 million, compared to $52 million for the third quarter of 2022.
These results reflect the challenges faced by MBIA Inc (MBI, Financial) in the third quarter of 2023, primarily due to increased losses and LAE at National Public Finance Guarantee Corporation.
Explore the complete 8-K earnings release (here) from MBIA Inc for further details.
