MBIA Inc. Reports $62 Million Net Loss in Q1 2025, Revenue Increases to $14 Million

MBIA Inc. reported a net loss of $62 million for the first quarter of 2025, a slight improvement from a net loss of $86 million in the same period of 2024. The company's total revenues increased to $14 million, up from $13 million year-over-year, primarily driven by a significant recovery in revenues from consolidated variable interest entities (VIEs), which generated a gain of $7 million compared to a loss of $25 million in the prior year. However, the company faced challenges with net investment income, which decreased by $5 million due to a lower average asset base, and realized investment losses of $5 million compared to $1 million in the previous year.

In terms of operational metrics, MBIA's total assets decreased to $2.132 billion as of March 31, 2025, down from $2.168 billion at the end of 2024. The company’s liabilities remained stable at $4.245 billion, reflecting a slight increase from $4.244 billion. The company’s equity position deteriorated, with total shareholders' equity reported at $(2.126) billion, compared to $(2.089) billion at the end of the previous year. The decline in equity was attributed to ongoing losses and adjustments in the company's investment portfolio.

Strategically, MBIA has been focusing on its U.S. public finance insurance segment, managed through National Public Finance Guarantee Corporation. The company continues to monitor its insured portfolio closely, particularly in light of fiscal stress among certain state and local governments. Notably, the Puerto Rico Electric Power Authority (PREPA) defaulted on its debt obligations in January 2025, leading to claims of $13 million paid by National. As of March 31, 2025, National had $657 million of insured debt service outstanding related to PREPA, which could impact future loss reserves and recoveries.

Looking ahead, MBIA's management remains cautious about the economic environment, particularly regarding interest rates and credit quality. The company anticipates that economic improvements at the state and local levels could enhance the credit quality of its insured municipal bonds, potentially reducing incurred losses. However, the company also acknowledges the risks associated with its investment portfolio, particularly in a rising interest rate environment, which could adversely affect the fair value of its securities. The outlook for MBIA will depend significantly on the performance of its insured portfolio and the broader economic conditions affecting its operations.