MBIA Inc. (NYSE:MBI) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 08:00 am ET


MBIA Inc. (NYSE:MBI) Q3 2019 Earnings Conference Call - Final Transcript


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Welcome to the MBIA Incorporated Third Quarter 2019 Financial Results Conference Call. I would now like to turn the call over to Greg Diamond, Managing Director of Investor and Media Relations at MBIA. Please go ahead, sir.

Gregory Diamond

Thank you, Dorothy. Welcome to everybody to MBIA's conference call for our third quarter 2019 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 update 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 and 10-Qs 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-Qs 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-Qs as well as our financial results press release and our quarterly operating supplements. A recorded replay of today's call will become available approximately two hours after the end of the call, and the information for accessing it is included in yesterday's financial results press release.

For our safe harbor disclosure statement, our remarks on today's conference call may contain forward-looking statements. Important factors such as general market conditions and competitive environment could cause our actual results to differ materially from the projected results referenced in our forward-looking statements. Risk factors are detailed in our 10-K and 10-Q, which are available on our website at mbia.com. The company cautions not to place undue reliance on any such forward-looking statements. The company also undertakes no obligation to publicly correct or update any forward-looking statement if it later becomes aware that such statement is no longer accurate.

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

William C. Fallon

Thanks, Greg. Good morning, everyone. Thank you for being with us today.

Our third quarter financial results materially benefited from the sale of uninsured PREPA bonds from the National investment portfolio, and lower interest rates. Lower interest rates generated a decrease in losses and loss adjustment expenses as greater estimated loss recoveries outweighed estimates of future loss payments. There were also positive contributions from the sale of unwrapped COFINA bonds that were sold out of the Custodial Trust that resulted from the restructuring of COFINA earlier this year.

In addition, our per share results benefited from the repurchase of 4.3 million shares of MBIA Inc. common stock during the third quarter. Over the first nine months of this year, we have repurchased 10.3 million shares. Subsequent to the end of the third