Wow on earnings.....almost $9 in AH at one point...
ARMONK, N.Y., May 11, 2009 (BUSINESS WIRE) -- --As of March 31, 2009, MBIA Inc.'s Book Value per share and Adjusted Book Value (ABV) per share, a non-GAAP measure, were $7.76 and $37.61, respectively, compared with $4.78 and $40.06, respectively, at December 31, 2008.
--The Company recorded net income available to common shareholders of $696.7 million, or $3.34 per share, for the first quarter of 2009, compared with a net loss of $2.4 billion, or $12.92 per share, for the first quarter of 2008. Net income in the first quarter of 2009 was primarily driven by $1.6 billion in pre-tax unrealized net gains (mark-to-market) on insured credit derivatives.
--The Company's first quarter results include $693.7 million in pre-tax loss and loss adjustment expenses on insured exposures, primarily on second-lien mortgage exposures and $169.0 million in pre-tax realized losses in the Company's Asset-Liability Management (ALM) asset portfolio reflecting the continued deterioration and stress in the credit markets.
--The Company's balance sheet liquidity continues to be strong, with ample resources to meet all expected obligations. MBIA Insurance Corporation (MBIA Corp.), which comprises the structured finance and international public finance businesses, had $1.5 billion of cash and short-term investments available to support its liquidity needs and $8.0 billion of claims-paying resources as of March 31, 2009. The Company believes that the ALM business has sufficient cash and short-term investments to meet all terminable liabilities, irrespective of any ratings actions. The Corporate segment had $430 million in cash and highly liquid assets, compared with approximately $260 million in cash required for debt service and operating expenses through year-end 2010.
--During the first quarter of 2009, the Company established a separate U.S. public finance financial guarantee insurance company, National Public Finance Guarantee Corporation (National), within the MBIA Inc. group by separating its domestic public finance business from the remaining insured portfolio of its principal insurance subsidiary, MBIA Corp. (the Transformation).
MBIA Inc. (NYSE: MBI) today reported Adjusted Book Value (ABV) per share, a non-GAAP measure, of $37.61 as of March 31, 2009 compared with $40.06 at December 31, 2008. The decline in ABV per share during the quarter was caused by loss and loss adjustment expenses on insured exposures, impairments to insured credit derivatives, realized losses in the Company's ALM asset portfolio and a reduction in expected future income from projected spread in the ALM business. The effect of the adoption of FAS 163 on January 1, 2009 increased ABV by $1.05 per share, primarily as a result of the elimination of unallocated reserves and the use of a risk-free rate for discounting future installment premiums.
