MBIA Inc. (NYSE:MBI) Q3 2018 Earnings Conference Call Transcript

Nov 07, 2018 • 08:00 am ET


MBIA Inc. (NYSE:MBI) Q3 2018 Earnings Conference Call Transcript


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Welcome to MBIA Inc. Third Quarter 2018 Financial Results Conference Call.

I'd now like to turn the call over to Greg Diamond, Managing Director of Investor and Media Relations at MBIA. Please go ahead, sir.

Greg Diamond

Welcome to MBIA's conference call for our third quarter 2018 financial results. After the market closed yesterday, we issued and posted several items on our website, including our financial results press release, 10-Q, quarterly operating supplements and statutory financial statements for both MBIA Insurance Corporation and National Public Finance Guarantee Corporation. We also posted updates to the listings of our insurance portfolios.

Regarding today's call, please note that anything said on the call is qualified by the information provided in the company's 10-K, 10-Q and other SEC filings as our company's definitive disclosures are incorporated in those documents. We urge investors to read our 10-K and 10-Q as they contain our most current disclosures about the company and its financial and operating results. Those documents also contain information that may not be addressed on today's call.

The definitions and reconciliations of the non-GAAP terms included in our remarks today are also included in our 10-K and 10-Q as well as our financial results press release and our quarterly operating supplements. A recorded replay of today's call will become available approximately 2 hours after the end of the call, and the information for accessing it was included in yesterday's financial results press release.

(Forward-Looking Cautionary Statements)

For our call today, Bill Fallon and Anthony McKiernan will provide introductory comments, then a question-and-answer session will follow. Now here is Bill Fallon.

William Charles Fallon

Our near-term strategy remains unchanged: remediating our Puerto Rico credits and managing our liquidity and capital. We've made progress on both items. The proposed plan support agreement for the COFINA debt that was announced in August continues to move along with a confirmation hearing requested for January of next year.

We remain confident that the plan of adjustment will ultimately be consummated. The proposed deal reduces COFINA's debt service by $17 billion.

Puerto Rico's economy has already begun rebuilding and improving. Various economic measures remain positive, which factored into higher revenues and greater excess funds and revised fiscal plans that have been certified by the Oversight Board.

The Commonwealth's bank cash on deposit, which is an indication of the government's liquidity position, reached $3.8 billion as of October 19. We believe that the improving economy has helped to increase support for the COFINA debt restructuring plan, and they're ought to be favorable for additional debt restructurings as well.

However, before PREPA's debt can be restructured, we believe PREPA needs new management, an independent board and an appropriate regulatory regime. We've detailed these concerns in the materials that National filed in October in a motion for relief from the automatic stay that was imposed with PREPA's Title III filing. Ultimately, through our motion, we seek to have a receiver appointed to run PREPA, which will benefit all stakeholders, including the people of Puerto Rico.

We believe that successfully