Earnings

MBIA Swings to Third-Quarter Adjusted Loss on National's PREPA Charges

The Tip Desk · November 5, 2026 · 2 min read

The guarantor posted a $3 million adjusted net loss, or $(0.06) a diluted share, for the third quarter of 2026, as National's Puerto Rico Electric Power Authority exposure flipped losses and LAE to an expense.

MBIA Inc. (MBI) reported a consolidated GAAP net loss of $24 million, or $(0.49) a share, for the third quarter of 2026, as National Public Finance Guarantee Corporation swung to a losses and loss adjustment expenses (LAE) expense versus a benefit a year earlier, largely on its Puerto Rico Electric Power Authority (PREPA) exposure.

The holding company, whose subsidiaries provide financial guarantee insurance for public and structured finance markets, said the unfavorable year-over-year variance in GAAP net loss was primarily due to a reduced consolidated LAE benefit in 2026 versus 2025. A year earlier the company had posted a $8 million, or $(0.17) a share, GAAP net loss.

On the company’s non-GAAP measure, which excludes MBIA Insurance Corp., investment portfolio realized gains and losses, fair-value and foreign-exchange items, and debt-extinguishment results, the adjusted net loss was $3 million, or $(0.06) a diluted share, compared with an adjusted net income of $51 million, or $(1.03) a diluted share, in the third quarter of 2025. The company said the unfavorable adjusted variance was primarily due to the LAE swing at National, largely from PREPA.

MBIA Corp. reported a losses and LAE benefit in the third quarter of 2026, primarily due to its first-lien RMBS exposure, which the company said was impacted by higher interest rates, versus an expense in 2025.

National’s insured portfolio declined $1.1 billion during the quarter, ending with $19.7 billion of gross par outstanding.

As of September 30, 2026, National had statutory capital of $974 million and claims-paying resources totaling $1.4 billion. Total fixed income investments plus cash and cash equivalents had a book/adjusted carrying value of $1.2 billion. The leverage ratio of gross par to statutory capital was 20 to 1, compared with 24 to 1 at year-end 2025.

MBIA Insurance Corp.’s statutory capital was $102 million and claims-paying resources totaled $335 million as of September 30, 2026. Its total fixed income investments plus cash and cash equivalents had a book/adjusted carrying value of $146 million.

MBIA Inc.’s liquidity position totaled $335 million as of September 30, 2026, consisting of cash and cash equivalents and liquid invested assets. There were no purchases of MBIA Inc. shares during the third quarter. As of October 31, 2026, remaining capacity under the company’s share repurchase authorization was $71 million and common shares outstanding were 51.0 million.

The company said it will host a webcast and conference call on November 5 at 8:30 a.m. ET to discuss the third-quarter results.