# EDGAR Filing Document

**Accession Number:** 0000814585
**File Stem:** 0001193125-23-053937
**Filing Date:** 2023-2
**Character Count:** 38997
**Document Hash:** 3053a6a8e93a601155176721b3c846e3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-053937.hdr.sgml**: 20230228

**ACCESSION NUMBER**: 0001193125-23-053937

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230228

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230228

**DATE AS OF CHANGE**: 20230228

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MBIA INC
- **CENTRAL INDEX KEY:** 0000814585
- **STANDARD INDUSTRIAL CLASSIFICATION:** SURETY INSURANCE [6351]
- **IRS NUMBER:** 061185706
- **STATE OF INCORPORATION:** CT
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-09583
- **FILM NUMBER:** 23685768

**BUSINESS ADDRESS:**
- **STREET 1:** 1 MANHATTANVILLE ROAD
- **STREET 2:** SUITE 301
- **CITY:** PURCHASE
- **STATE:** NY
- **ZIP:** 10577
- **BUSINESS PHONE:** 914-273-4545

**MAIL ADDRESS:**
- **STREET 1:** 1 MANHATTANVILLE ROAD
- **STREET 2:** SUITE 301
- **CITY:** PURCHASE
- **STATE:** NY
- **ZIP:** 10577

?xml version="1.0" encoding="utf-8" ? 8-K

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![LOGO](g475793g0301002319603.jpg)

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C. 20549

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### FORM 8-K

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#### CURRENT REPORT

#### Pursuant to Section 13 or 15(d)

#### of the Securities Exchange Act of 1934

#### Date of Report (Date of earliest event reported): February 28, 2023

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## MBIA INC.

#### (Exact name of registrant as specified in its charter)

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---

| | | |
|:---|:---|:---|
| **Connecticut** | **001-9583** | **06-1185706** |
| **(State or other jurisdiction**<br> **of incorporation)** | **(Commission**<br> **File Number)** | **(IRS Employer**<br> **Identification No.)** |

---

---

| | |
|:---|:---|
| **1 Manhattanville Road, Suite 301**<br> **Purchase, New York** | **10577** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

#### Registrant's telephone number, including area code:

#### 914-273-4545

#### Not Applicable

#### (Former name or former address, if changed since last report)

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

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| | |
|:---|:---|
| **Title of Each Class** | **Name of Each Exchange**<br> **on Which Registered** |
| Common Stock, par value $1 per share MBI | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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![LOGO](g475793g0301002319603.jpg)

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| | |
|:---|:---|
| **Item 2.02.** | **RESULTS OF OPERATIONS AND FINANCIAL CONDITION.**  |

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The following information, including Exhibit 99.1 to this Form 8-K, is being furnished, not filed, pursuant to Item 2.02 - Results of Operations and Financial Condition of Form 8-K.

On February 28, 2023, MBIA Inc. ("MBIA") issued a press release announcing that the Registrant's results of operations for the full year and the quarter ended December 31, 2022, were available via a financial results report on the Registrant's website at <u>https://investor.mbia.com/investor-relations/financial-information/default.aspx</u>. A copy of the financial results report is attached as Exhibit 99.1 to this Form 8-K and is incorporated by reference to this Item 2.02 as if fully set forth herein.

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| | |
|:---|:---|
| **Item 7.01.** | **REGULATION FD DISCLOSURE.**  |

---

The following information is being furnished, not filed, pursuant to Item 7.01 - Regulation FD Disclosure of Form 8-K. Information contained on MBIA's website is not incorporated by reference into this Current Report on Form 8-K.

On February 28, 2023, MBIA will post on its website, www.mbia.com, under the section "Investor Relations – Financial Information – Operating Supplements," a Quarterly Operating Supplement for the fourth quarter of 2022 and under the section "Investor Relations – Financial Information – Statutory Statements," 2022 Quarterly Statements for the fourth quarter of 2022 and 2022 Annual Statements for each of MBIA Insurance Corporation and National Public Finance Guarantee Corporation. MBIA will also post on its website, under the section "Selected Exposures," certain information on the Company's insured portfolios as of December 31, 2022. The information will be posted as "MBIA Corp.'s Structured Finance Insured Portfolio," "MBIA Corp.'s Non-U.S. Public Finance Insured Portfolio" and "National Public Finance Guarantee Corporation's Insured Portfolio." Information on National Public Finance Guarantee Corporation's insured portfolio as of December 31, 2022 will also be posted on National Public Finance Guarantee Corporation's website, www.nationalpfg.com, under the selection "Insured Portfolio."

On or about March 1, 2023, MBIA will also post on its website, www.mbia.com, under the section "Investor Relations – Investor Inquiries/FAQs," updated Frequently Asked Questions.

---

| | |
|:---|:---|
| **Item 9.01.** | **FINANCIAL STATEMENTS AND EXHIBITS.**  |

---

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| | |
|:---|:---|
| 99.1 | [Full Year and Fourth Quarter 2022 Financial Results issued by MBIA Inc., dated February 28, 2023.](d475793dex991.htm) |
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |

---

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![LOGO](g475793g0301002319603.jpg)

#### SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| MBIA INC. | MBIA INC. |
| **By:** | /s/ Jonathan C. Harris |
|  | Jonathan C. Harris |
|  | General Counsel |

---

Date: February 28, 2023

## Exhibit 99.1

**Exhibit 99.1**![LOGO](g475793g0301002319353.jpg)

**<u>MBIA Inc. Full Year and Fourth Quarter 2022 Financial Results</u>**

February 28, 2023

MBIA Inc. (NYSE:MBI) (the Company) today reported a consolidated GAAP net loss of $195 million, or $(3.92) per diluted common share, for 2022 compared to a consolidated GAAP net loss of $445 million, or $(8.99) per diluted common share, for 2021. The lower net loss primarily resulted from lower losses and loss adjustment expenses (LAE), partially offset by net realized investment losses. The lower losses and LAE for 2022 largely resulted from lower losses and LAE at MBIA Insurance Corporation (MBIA Corp.), primarily related to increased salvage recoveries for 2022 versus reduced salvage recoveries for 2021 related to CDOs and a favorable incurred loss benefit on first-lien RMBS, primarily due to higher risk-free interest rates. Losses and LAE at National Public Guarantee Corporation (National), were also lower in 2022, primarily related to its Puerto Rico exposure, where lower losses and/or increased loss benefits related to Puerto Rico GO and HTA exposures was partially offset by increased losses related to PREPA.

Book value per share was negative $16.07 as of December 31, 2022 compared with negative $5.73 as of December 31, 2021. The decrease in book value per share was primarily due to net unrealized losses on investments, which resulted largely from higher interest rates and wider credit spreads in 2022, and the consolidated net loss for 2022.

The Company also reported an Adjusted Net Loss (a non-GAAP measure defined in the attached Explanation of Non-GAAP Financial Measures) of $145 million or $(2.90) per diluted common share for 2022 compared with an Adjusted Net Loss of $261 million or $(5.27) per diluted common share for 2021. The lower Adjusted Net Loss for 2022 was primarily due to National's lower losses and LAE, largely related to its Puerto Rico exposure and higher net investment income for National.

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 stated, "During the fourth quarter of 2022, the restructuring of the Puerto Rico Highways and Transportation Authority (HTA) bonds was implemented and National's insured HTA exposure has been extinguished. Further, we reached an agreement concerning PREPA, our last significant Puerto Rico exposure, which has been incorporated into the Amended Plan of Adjustment filed by the Puerto Rico Financial Oversight and Management Board. The Title III court has scheduled that Plan for confirmation hearings this summer. In the meanwhile, we continue to explore potential strategic alternatives for the Company with our advisor, Barclays Capital. We intend to disclose additional information regarding this process when such is deemed necessary and/or appropriate."

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![LOGO](g475793g0301002319603.jpg)

**Fourth Quarter Results** 

The Company recorded a consolidated GAAP net loss of $52 million, or $(1.05) per diluted common share, for the fourth quarter of 2022 compared with a consolidated net loss of $155 million, or $(3.12) per diluted common share, for the fourth quarter of 2021. The lower net loss for the fourth quarter of 2022 was primarily due to lower losses and LAE at National, primarily due to its Puerto Rico exposure and a favorable comparison of losses and LAE at MBIA Corp., primarily related to fourth quarter of 2021 losses related to CDOs.

The Company reported an Adjusted Net Income for the fourth quarter of 2022 of $15 million or $0.30 per share compared with an Adjusted Net Loss of $106 million or $(2.13) per share for the fourth quarter of 2021. The favorable result for 2022 as compared to 2021 was largely due to reduced losses and LAE for National, primarily related to National's Puerto Rico exposure.

**MBIA Inc.** 

As of December 31, 2022, MBIA Inc.'s liquidity position totaled $230 million, consisting primarily of cash and cash equivalents and other liquid invested assets.

**National Public Guarantee Financial Corporation** 

National had statutory capital of $1.9 billion and claims-paying resources totaling $2.4 billion as of December 31, 2022. National's total fixed income investments plus cash and cash equivalents had a book/adjusted carrying value of $2.0 billion as of December 31, 2022. National's insured portfolio declined by $1.4 billion during the quarter, ending the quarter with $31.7 billion of gross par outstanding. National ended the quarter with a leverage ratio of gross par to statutory capital of 16 to 1, down from 18 to 1 at year-end 2021.

**MBIA Insurance Corporation** 

The statutory capital of MBIA Corp. as of December 31, 2022 was $169 million and claims-paying resources totaled $669 million. As of December 31, 2022, MBIA Insurance Corporation's total fixed income investments plus cash and cash equivalents had a book/adjusted carrying value of $223 million. MBIA Corp. ended 2022 with total gross par insured of $3.4 billion versus $5.2 billion at year-end 2021.

**Conference Call** 

The Company will host a webcast and conference call for investors tomorrow, Wednesday, March 1, 2023 at 8:00 AM (ET) to discuss its full year and fourth quarter 2022 financial results and other matters relating to the Company. The webcast and conference call will consist of brief remarks followed by a question and answer session.

The dial-in number for the call is (800) 343-1703 in the U.S. and (785) 424-1226 from outside the U.S. The conference call code is 34702. A live webcast of the conference call will also be accessible on <u>www.mbia.com</u>.

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![LOGO](g475793g0301002319603.jpg)

A replay of the conference call will become available approximately two hours after the completion of the call and will remain available until 11:59 p.m. on March 8 by dialing (800) 925-9356 in the U.S. or (402) 220-5385 from outside the U.S. In addition, a recorded replay of the call will become available on the Company's website approximately two hours after the completion of the call.

**Forward-Looking Statements** 

This release includes statements that are not historical or current facts and are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "believe,, "anticipate," "project," "plan," "expect," "estimate," "intend," "will," "will likely result," "looking forward," or "will continue," and similar expressions identify forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected, including, among other factors, the possibility that MBIA Inc. or National will experience increased credit losses or impairments on public finance obligations issued by state, local and territorial governments and finance authorities that are experiencing unprecedented fiscal stress; the possibility that loss reserve estimates are not adequate to cover potential claims; MBIA Inc.'s or National's ability to fully implement their strategic plan; changes in general economic and competitive conditions; and the impact on our insured portfolios or business operations caused by the global spread of the novel coronavirus COVID-19. These and other factors that could affect financial performance or could cause actual results to differ materially from estimates contained in or underlying MBIA Inc.'s or National's forward-looking statements are discussed under the "Risk Factors" section in MBIA Inc.'s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which may be updated or amended in MBIA Inc.'s subsequent filings with the Securities and Exchange Commission. MBIA Inc. and National caution readers not to place undue reliance on any such forward-looking statements, which speak only to their respective dates. National and MBIA Inc. undertake no obligation to publicly correct or update any forward-looking statement if it later becomes aware that such result is not likely to be achieved.

MBIA Inc., headquartered in Purchase, New York is a holding company whose subsidiaries provide financial guarantee insurance for the public and structured finance markets. Please visit MBIA's website at <u>www.mbia.com</u>.

**Explanation of Non-GAAP Financial Measures** 

The following are explanations of why the Company believes that the non-GAAP financial measures used in this press release, which serve to supplement GAAP information, are meaningful to investors.

**Adjusted Net Income (Loss)**: Adjusted Net Income (Loss) is a useful measurement of performance because it measures income from the Company excluding its international and structured finance insurance segment, comprising the results of MBIA Corp. which given its capital structure and business prospects, we do not expect its financial performance to have a material impact on MBIA Inc. Also excluded from Adjusted Net Income (Loss) are investment portfolio realized gains and losses, gains and losses on financial instruments at fair value and foreign exchange, and realized gains and losses on extinguishment of debt. Adjusted Net Income (Loss) eliminates the tax provision (benefit) as a result of a full valuation allowance against the Company's net deferred tax asset. Trends in the underlying profitability of the Company's businesses can be more clearly identified without the fluctuating effects of the excluded items previously noted. Adjusted Net Income (Loss) as defined by the Company does not include all revenues and expenses required by GAAP. Adjusted Net Income (Loss) is not a substitute for and should not be viewed in isolation from GAAP net income.

Adjusted Net Income (Loss) per share represents that amount of Adjusted Net Income (Loss) allocated to each fully diluted weighted-average common share outstanding for the measurement period.

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![LOGO](g475793g0301002319603.jpg)

MBIA management further adjusts Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per share by removing the impact of our U.S. public finance insurance segment VIE consolidations. GAAP requires the Company to consolidate certain VIEs that have issued debt obligations insured by the Company. However, since the Company does not own such VIEs, management uses certain measures that remove the impact of VIE consolidations for our U.S. public finance insurance segment in order to reflect financial exposure limited to its financial guaranty contracts.

**Book Value adjustments**: Management adjusts GAAP book value to remove the book value of MBIA Corp. and for certain items which the Company believes will reverse from GAAP book value through GAAP earnings and comprehensive income, as well as add in the impact of certain items which the Company believes will be realized in GAAP book value in future periods. The Company has limited such adjustments to those items that it deems to be important when measuring financial performance and for which the likelihood and amount can be reasonably estimated. The following provides a description of management's adjustments to GAAP book value:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Negative book value of MBIA Corp.* - We remove the negative book value of MBIA Corp. based on our view that
given MBIA Corp.'s current financial condition, the regulatory regime in which it operates, the priority given to its policyholders, surplus note holders and preferred stock holders with respect to the distribution of assets, and its legal
structure, it is not and will not likely be in a position to upstream any economic benefit to MBIA Inc. Further, MBIA Inc. does not face any material financial liability arising from MBIA Corp.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Net unrealized (gains) losses on available-for-sale ("AFS") securities excluding MBIA Corp.* - We remove net unrealized gains and losses on AFS securities recorded in accumulated other
comprehensive income since they will reverse from GAAP book value when such securities mature. Gains and losses from sales and impairment of AFS securities are recorded in book value through earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Net unearned revenue in excess of expected losses of National* - We include net unearned premium revenue in
excess of expected losses. Net unearned premium revenue in excess of expected losses consists of the financial guarantee unearned premium revenue of National in excess of expected insurance losses, net of reinsurance and deferred acquisition costs.
In accordance with GAAP, a loss reserve on a financial guarantee policy is only recorded when expected losses exceed the amount of unearned premium revenue recorded for that policy. As a result, we only add to GAAP book value the amount of unearned
premium revenue in excess of expected losses for each policy in order to reflect the full amount of our expected losses. The Company's net unearned premium revenue will be recognized in GAAP book value in future periods, however, actual amounts
could differ from estimated amounts due to such factors as credit defaults and policy terminations, among others.

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![LOGO](g475793g0301002319603.jpg)

**Claims-paying Resources (CPR)**: CPR is a key measure of the resources available to National and MBIA Corp. to pay claims under their respective insurance policies. CPR consists of total financial resources and reserves calculated on a statutory basis. CPR has been a common measure used by financial guarantee insurance companies to report and compare resources and continues to be used by MBIA's management to evaluate changes in such resources. The Company has provided CPR to allow investors and analysts to evaluate National and MBIA Corp. using the same measure that MBIA's management uses to evaluate their resources to pay claims under their respective insurance policies. There is no directly comparable GAAP measure.

**Leverage Ratio**: Gross Par Outstanding divided by Statutory Capital (Policyholders' Surplus plus Contingency Reserve).

**Contacts** 

**MBIA Inc.** 

Greg Diamond, 914-765-3190

Managing Director, Head of

Investor and Media Relations

<u>greg.diamond@mbia.com</u>

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![LOGO](g475793g0301002319603.jpg)

**MBIA INC. AND SUBSIDIARIES** 

**CONSOLIDATED BALANCE SHEETS** 

(In millions except share and per share amounts)

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| | | |
|:---|:---|:---|
|  | **December 31,<br>2022** | **December 31,<br>2021** |
|  **Assets** |  |  |
|  Investments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $2,044 and $2,016) | $1812 | $2157 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments carried at fair value | 511 | 258 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments pledged as collateral, at fair value (amortized cost $- and $4) |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term investments, at fair value (amortized cost $353 and $374) | 353 | 374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total investments | 2676 | 2793 |
|  Cash and cash equivalents | 50 | 151 |
|  Premiums receivable (net of allowance for credit losses $0 and $5) | 160 | 178 |
|  Deferred acquisition costs | 35 | 42 |
|  Insurance loss recoverable | 137 | 1296 |
|  Assets held for sale | 80 |  |
|  Other assets | 73 | 67 |
|  Assets of consolidated variable interest entities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash | 16 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments carried at fair value | 47 | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans receivable at fair value | 78 | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 23 | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total assets** | $**3375** | $**4696** |
|  **Liabilities and Equity** |  |  |
|  Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premium revenue | $266 | $322 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss and loss adjustment expense reserves | 439 | 894 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt | 2428 | 2331 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medium-term notes (includes financial instruments carried at fair value of $41 and $98) | 501 | 590 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment agreements | 233 | 274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | 49 | 131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities held for sale | 61 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 94 | 163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities of consolidated variable interest entities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variable interest entity debt (includes financial instruments carried at fair value of $172 and $291) | 174 | 291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | 6 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities** | **4251** | **4996** |
|  Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock, par value $1 per share; authorized shares--10,000,000; issued and outstanding—none |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock, par value $1 per share; authorized shares--400,000,000; issued shares--283,186,115 and 283,186,115 | 283 | 283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 2925 | 2931 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings (deficit) | (653) | (458) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income (loss), net of tax of $8 and $8 | (283) | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury stock, at cost--228,333,444 and 228,630,003 shares | (3154) | (3169) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders' equity of MBIA Inc. | (882) | (313) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock of subsidiary and noncontrolling interest held for sale | 6 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total equity** | **(876)** | **(300)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities and equity** | $**3375** | $**4696** |

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![LOGO](g475793g0301002319603.jpg)

**MBIA INC. AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENTS OF OPERATIONS** 

(In millions except share and per share amounts)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  **Revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums earned: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Scheduled premiums earned | $8 | $11 | $39 | $64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refunding premiums earned | 8 |  | 14 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums earned (net of ceded premiums of $0, $0, $1 and $16) | 16 | 11 | 53 | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 28 | 17 | 95 | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized investment gains (losses) | (4) | 4 | (41) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains (losses) on financial instruments at fair value and foreign exchange | (6) | (1) | 45 | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains (losses) on extinguishment of debt |  |  | 4 | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fees and reimbursements | 1 | 1 | 5 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other net realized gains (losses) | 6 | (6) | (12) | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenues of consolidated variable interest entities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains (losses) on financial instruments at fair value and foreign exchange | 2 | 2 | (14) | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other net realized gains (losses) | 14 | (1) | 19 | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | 57 | 27 | 154 | 189 |
|  **Expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment | (19) | 118 | 38 | 350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 3 | 1 | 8 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating | 24 | 21 | 68 | 91 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest | 50 | 41 | 179 | 163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses of consolidated variable interest entities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating | 3 | 1 | 8 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest |  |  | 1 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 61 | 182 | 302 | 634 |
|  Income (loss) from continuing operations before income taxes | (4) | (155) | (148) | (445) |
|  Provision (benefit) for income taxes | 1 |  | 1 |  |
|  Income (loss) from continuing operations | (5) | (155) | (149) | (445) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) from discontinued operations, net of income taxes | (55) |  | (54) |  |
|  **Net income (loss)** | (60) | (155) | (203) | (445) |
|  Less: Net Income (loss) from discontinued operations attributable to noncontrolling interests | (8) | **—** | (8) | **—** |
|  **Net income (loss) attributable to MBIA Inc.** | $**(52)** | $**(155)** | $**(195)** | $**(445)** |
|  **Net income (loss) per common share - basic and diluted:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Continuing operations | $(0.11) | $(3.12) | $(3.00) | $(8.99) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Discontinuing operations | (0.94) |  | (0.92) |  |
|  Net income (loss) per common share - basic and diluted | $**(1.05)** | $**(3.12)** | $**(3.92)** | $**(8.99)** |
|  **Weighted average number of common shares outstanding:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | 49875125 | 49585354 | 49803739 | 49472281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | 49875125 | 49585354 | 49803739 | 49472281 |

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------

![LOGO](g475793g0301002319603.jpg)

**<u>ADJUSTED NET INCOME (LOSS) RECONCILIATION<sup>(1)</sup></u>**

(In millions except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Years Ended** | **Years Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $(52) | $(155) | $(195) | $(445) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: adjusted net income (loss) adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) from discontinued operations, net of income taxes | (47) |  | (46) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) before income taxes of the international and structured finance insurance segment and eliminations | 1 | (60) | (20) | (283) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to income before income taxes of the U.S. public finance insurance and corporate segments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mark-to-market gains (losses) on financial instruments<sup>(2)</sup> | (2) |  | 58 | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange gains (losses)<sup>(2)</sup> | (14) | 7 | 15 | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized investment gains (losses) | (4) | 4 | (40) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gains (losses) on extinguishment of debt |  |  | 5 | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment losses related to impairments of securities<sup>(3)</sup> |  |  | (21) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted net income adjustment to the (provision) benefit for income tax | (1) |  | (1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted net income (loss) | $15 | $(106) | $(145) | $(261) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted net income (loss) per diluted common share | $0.30 | $(2.13) | $(2.90) | $(5.27) |

---

(1) A non-GAAP measure; please see Explanation of non-GAAP Financial Measures.

(2) Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange" on
the Company's consolidated statements of operations.

(3) Reported within "Other net realized gains (losses)" on the Company's consolidated statements of
operations.

**<u>COMPONENTS OF BOOK VALUE PER SHARE</u>**

---

| | | |
|:---|:---|:---|
|  | **As of<br>December 31, 2022** | **As of<br>December 31, 2021** |
|  **Reported Book Value per Share** | $(16.07) | $(5.73) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management's book value per share adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remove negative book value of MBIA Corp. | (37.76) | (35.94) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remove net unrealized gains (losses) on available-for-sale securities included in other comprehensive income (loss) | (3.96) | 2.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Include net unearned premium revenue in excess of expected losses | 3.08 | 3.58 |
|  Shares outstanding in millions | 54.9 | 54.6 |

---

------

**INSURANCE OPERATIONS** 

**Selected Financial Data Computed on a Statutory Basis** 

(Dollars in millions)

---

| | | |
|:---|:---|:---|
|  **<u>National Public Finance Guarantee Corporation</u>** | | |
|  | <br>**December 31, 2022** | <br>**December 31, 2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policyholders' surplus | $1545 | $1569 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contingency reserves | 379 | 402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Statutory capital | 1924 | 1971 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 262 | 311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value of installment premiums <sup>(1)</sup> | 110 | 121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premium resources <sup>(2)</sup> | 372 | 432 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss and loss adjustment expense reserves <sup>(1)</sup> | (140) | (386) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Salvage reserves on paid claims <sup>(1)</sup> | 288 | 944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross loss and loss adjustment expense reserves | 148 | 558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total claims-paying resources | $2444 | $2961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net debt service outstanding | $61616 | $69817 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross par outstanding | $31652 | $36451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital ratio <sup>(3)</sup> | 32:1 | 35:1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claims-paying ratio <sup>(4)</sup> | 25:1 | 24:1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leverage Ratio <sup>(5)</sup> | 16:1 | 18:1 |
|  **<u>MBIA Insurance Corporation</u>** |  |  |
|  | **December 31, 2022** | **December 31, 2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policyholders' surplus | $164 | $97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contingency reserves | 5 | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Statutory capital | 169 | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 36 | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value of installment premiums <sup>(6) (8)</sup> | 34 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premium resources <sup>(2)</sup> | 70 | 94 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss and loss adjustment expense reserves <sup>(6)</sup> | 35 | 266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Salvage reserves on paid claims <sup>(6) (7)</sup> | 395 | 231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross loss and loss adjustment expense reserves | 430 | 497 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total claims-paying resources | $669 | $725 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net debt service outstanding | $4395 | $6509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital ratio <sup>(3)</sup> | 26:1 | 49:1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claims-paying ratio <sup>(4)</sup> | 7:1 | 9:1 |

---

(1) Calculated using discount rates of 4.29% and 3.65% as of December 31, 2022 and December 31, 2021,
respectively.

(2) Includes financial guarantee and insured credit derivative related premiums.

(3) Net debt service outstanding divided by statutory capital.

(4) Net debt service outstanding divided by the sum of statutory capital, unearned premium reserve (after-tax), present value of installment premiums (after-tax), net loss and loss adjustment expense reserves and salvage reserves.

(5) Gross par outstanding divided by statutory capital.

(6) Calculated using discount rates of 5.53% and 4.99% as of December 31, 2022 and December 31, 2021,
respectively.

(7) This amount primarily consists of expected recoveries related to the payment of claims on insured CDOs and
RMBS.

(8) Based on the Company's estimate of the remaining life for its insured exposures.