MBIA Inc. Reports $8 Million Net Loss in Q3 2025, Improved from $56 Million Loss in Q3 2024

MBIA Inc. reported a net loss of $8 million for the third quarter of 2025, a significant improvement compared to a net loss of $56 million in the same period of 2024. Total revenues for the quarter decreased to $15 million from $29 million year-over-year, primarily due to unfavorable changes in the fair value of investments, which resulted in losses of $14 million compared to gains of $3 million in the prior year. The company’s total expenses also decreased to $22 million from $80 million, largely due to a $50 million benefit in losses and loss adjustment expenses (LAE) related to its insured Puerto Rico Electric Power Authority (PREPA) exposure.

For the nine months ending September 30, 2025, MBIA reported a net loss of $126 million, an improvement from a loss of $396 million in the same period of 2024. Total revenues for the nine-month period increased to $52 million from $5 million, driven by favorable changes in revenues from consolidated variable interest entities (VIEs) and fair value adjustments. The company recorded a gain of $9 million from consolidated VIEs, a stark contrast to a loss of $37 million in the previous year. However, net investment income decreased by $11 million, attributed to a lower average asset base and reduced yields.

Strategically, MBIA has been focusing on its U.S. public finance insurance segment, managed through National Public Finance Guarantee Corporation. As of September 30, 2025, National had total insured gross par outstanding of $23.2 billion. The company has also been actively managing its exposure to PREPA, which has faced significant fiscal stress. In 2025, National paid gross claims of $105 million related to PREPA defaults. The company has entered into a restructuring support agreement with the Oversight Board for Puerto Rico, although the outcome remains uncertain.

Operationally, MBIA's total assets decreased to $2.06 billion as of September 30, 2025, down from $2.17 billion at the end of 2024. The company’s liabilities also saw a slight decline, totaling $4.23 billion compared to $4.24 billion previously. The company’s equity position remains negative, with total shareholders' equity at $(2.18) billion, reflecting ongoing challenges in its insurance operations. Looking ahead, MBIA anticipates continued focus on managing its existing insured portfolio and enhancing recovery efforts, particularly in light of the ongoing developments related to PREPA and other insured entities.