MBIA (MBI) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, February 27, 2026 astatine 8:17 AM CST 18 min read

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Feb. 27, 2026, 8 a.m. ET

• Chief Executive Officer — William Charles Fallon

• Chief Financial Officer — Joseph Ralph Schachinger

• Director of Investor Relations — Gregory R. Diamond

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Now for our harmless harbor disclosure statement. Our remarks connected today’s league telephone whitethorn incorporate forward-looking statements. Important factors specified arsenic wide marketplace conditions and the competitory situation could origin our existent results to disagree materially from the projected results referenced successful our forward-looking statements. Risk factors are elaborate successful our 10-Ks disposable connected our website astatine mbia.com. The institution cautions not to spot undue reliance connected immoderate specified forward-looking statements. The institution besides undertakes nary work to publically close oregon update immoderate forward-looking connection if it aboriginal becomes alert that specified connection is nary longer accurate.

For our telephone today, William Charles Fallon and Joseph Ralph Schachinger volition supply introductory comments, and past a question and reply league volition follow. I volition present crook the telephone implicit to William Charles Fallon.

William Charles Fallon: Thanks, Greg. Good morning, everyone. Thank you for being with america today. We had little nett losses for our afloat twelvemonth 2025 fiscal results versus afloat twelvemonth 2024 and comparable nett losses for the 2025 and 2024. Comparing the 2 years’ results, National recorded a payment from losses and nonaccomplishment accommodation disbursal successful 2025 versus incurred losses successful 2024. For some years, National’s losses and LAE resulted chiefly from changes to nonaccomplishment estimates for its PREPA-related exposure.

The 2025 payment mostly resulted from the merchantability of a custodial receipt associated with National’s PREPA bankruptcy claims astatine prices amended than National’s nonaccomplishment estimates, arsenic good arsenic a favorably revised estimation for losses connected National’s remaining $425 cardinal of PREPA gross par outstanding. Our precedence continues to beryllium resolving National’s PREPA exposure. In that regard, determination has not been overmuch substantive advancement since our past league telephone successful November. Until the ineligible issues related to the members of the Financial Oversight and Management Board are resolved, it is improbable that substantive advancement volition beryllium made. Regarding the equilibrium of National’s insured portfolio, those credits person continued to execute mostly accordant with our expectations.

The gross par magnitude outstanding for National’s insured portfolio has declined by astir $3 cardinal from year-end 2024 to astir $22 cardinal astatine the extremity of 2025. National’s leverage ratio of gross par to statutory superior was 24-to-1 astatine the extremity of 2025, down from 28-to-1 astatine year-end 2024. As of 12/31/2025, National had full claims-paying resources of $1.4 cardinal and statutory superior and surplus successful excess of $900 million. I volition present crook the telephone implicit to Joseph Ralph Schachinger for further comments astir our fiscal results.