MBIA Inc. (NYSE:MBI) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 08:00 am ET


MBIA Inc. (NYSE:MBI) Q2 2020 Earnings Conference Call - Final Transcript


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Welcome to the MBIA Inc. Second Quarter 2020 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.

Greg Diamond

Thank you, Maria. Welcome to MBIA's conference call for our second quarter 2020 financial results. After the market closed yesterday, we issued and posted several items on our website, including our financial results, 10-Q, quarterly operating supplement 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-Qs and other SEC filings as our company's definitive disclosures are incorporated in those documents. We urge investors to read our most recent 10-K and subsequent 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 report in our quarterly operating supplement.

The 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 last week's press announcement and in the financial results that we posted on the MBIA website yesterday.

Now, for our Safe Harbor, our remarks on today's conference call may contain forward-looking statements. Important factors such as general market conditions and the 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 introductory comments, which will be followed by a question-and-answer session. Now, here is Bill Fallon.

William C. Fallon

Thanks Greg. Good morning, everyone. Thank you for being with us today. For the second quarter of 2020, the Company's net loss was primarily caused by loss and loss adjustment expenses, with slightly more than half of those loss expenses recorded by National Public Finance Guarantee Corporation and the balance by MBIA Insurance Corporation. These losses largely resulted from National's insured Puerto Rico exposure and reductions in MBIA Corp's estimated recoveries on the Zohar CLOs. The losses for the second quarter were not meaningfully influenced by the COVID-19 pandemic. However, we will continue to review our insured portfolio to assess the impact from COVID-19 as the pandemic evolves. National's Puerto Rico exposure is largely comprised of three credits: the Commonwealth General Obligation