Key Points – MBIA’s second-quarter loss narrowed: GAAP net loss improved to $46 million, or $0.91 per share, from $56 million a year earlier, while adjusted net loss decreased to $7 million. – PREPA remains the central issue: National’s outstanding PREPA exposure fell by $35…
llion to $390 million, but bondholders representing about 90% of claims rejected Puerto Rico’s roughly $3 billion settlement proposal. Litigation and negotiations remain unresolved. – Capital and strategic flexibility improved, though challenges remain: National’s leverage declined to 21-to-1 and statutory capital rose to about $968 million
MBIA also had $337 million in unencumbered cash and liquid assets, $71 million remaining under its buyback authorization, and continues to evaluate potential strategic transactions. MBIA (NYSE:MBI) reported a narrower second-quarter net loss as lower expenses tied to its Puerto Rico Electric Power Authority, or PREPA, exposure and favorable foreign-exchange movements helped results. Management said its principal priority remains resolving National Public Finance Guarantee Corp.’s remaining PREPA exposure, while litigation and negotiations surrounding the utility’s restructuring continue.
The company posted a consolidated GAAP net loss of $46 million, or $0.91 per share, for the second quarter of 2026, compared with a $56 million loss, or $1.12 per share, a year earlier. Adjusted net loss, a non-GAAP measure, improved to $7 million, or $0.14 per share, from $8 million, or $0.17 per share, in the prior-year period. Chief Financial Officer Joe Schachinger said the smaller GAAP loss reflected a reversal of legal expenses within a consolidated variable-interest entity related to Zohar CDO recoveries at MBIA Insurance Corp., as well as foreign-exchange gains.