MBIA Inc. released its third‑quarter 2025 financial results on November 4, 2025, and will file a Current Report on Form 8‑K. The company posted an adjusted net income of $51 million, translating to $1.03 per share—an unexpected beat of the consensus estimate of –$0.03. Revenue, however, fell short of expectations, coming in at $15 million versus the $21 million forecast, a miss that reflects a decline in legacy insurance premiums and limited new business. The company will host a webcast and conference call for investors at 8:00 a.m. ET on November 5 to discuss the results in detail.
The earnings beat was driven primarily by a sharp reduction in losses associated with the Puerto Rico Electric Power Authority (PREPA) exposure. MBIA sold $374 million of National’s PREPA‑related bankruptcy claims, and management raised its estimated recoveries on the remaining exposure. These actions lowered the loss allowance for earned (LAE) and reduced the GAAP net loss from $56 million in Q3 2024 to $8 million in Q3 2025, while the adjusted net income swung to a positive $51 million. The company’s CEO, William Fallon, noted that the lower losses and higher recoveries “benefited from the sale of $374 million of National’s PREPA‑related bankruptcy claims and higher estimated recoveries on National’s remaining PREPA exposure.”
Revenue missed estimates because the company’s legacy insurance portfolio continued to contract. The decline in premiums from older policies, coupled with a modest uptake of new business, pulled revenue down to $15 million. Nevertheless, the improved recovery estimates and the sale of claims helped offset the revenue shortfall, allowing the company to post a positive adjusted net income. CFO Joseph Schachinger highlighted that the GAAP net loss improvement was “primarily on its PREPA exposure,” underscoring the centrality of the PREPA resolution to the company’s financial performance.
When compared to the prior quarter, the results show a dramatic turnaround. The GAAP net loss shrank from $56 million (–$1.18 per share) in Q3 2024 to $8 million (–$0.17 per share) in Q3 2025, while the adjusted net income moved from a loss to $51 million. The company’s consolidated book value per share remained negative at $43.17, and its leverage ratio for National stood at 23:1 as of September 30, 2025—figures that illustrate the ongoing financial strain despite the earnings improvement.
The company’s management emphasized that the PREPA exposure remains the primary uncertainty. Fallon said the “path and timing of that resolution remains largely uncertain,” while noting that the company is actively exploring strategic options, including a potential sale, to maximize shareholder value. Investors will also hear about the company’s liquidity position, regulatory compliance status, and the impact of its structured‑finance holdings during the upcoming webcast. The call will address how MBIA plans to maximize recoveries, manage regulatory constraints, and evaluate future sale options as it continues its runoff trajectory.
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