MBIA (MBI) investor relations material

Executive summary

• Reported consolidated GAAP net loss of $46 million ($0.91 per share) for Q2 2026 and $86 million for the first half, reflecting improved results compared to prior periods, mainly due to reversal of legal expenses and foreign exchange gains.

• PREPA exposure reduced by $35 million due to claims paid on matured bonds; $57 million in gross claims paid in 2026, with $554 million of insured debt service outstanding as of June 30, 2026.

• Oversight board nearly doubled its PREPA settlement offer to $3 billion, but it was rejected by 90% of bondholders, including the Coop Group.

• National's insured portfolio continued to perform as expected, with gross par outstanding declining by $1.5 billion to $20.8 billion at June 30, 2026.

• No new financial guarantee policies are expected outside of remediation activities; business is managed across U.S. public finance, corporate, and international/structured finance segments.

Financial highlights

• Consolidated GAAP net loss for Q2 2026 was $46 million ($-0.91/share), improved from $56 million ($-1.12/share) in Q2 2025; adjusted net loss (non-GAAP) was $7 million ($-0.14/share) for Q2 2026.

• Book value per share as of June 30, 2026, was $(45.58), down $1.31 from year-end 2025, mainly due to a consolidated net loss of $86 million for the first half of 2026.

• Total revenues were $27 million for Q2 2026 (up from $23 million in Q2 2025), driven by favorable foreign currency movements.

• Unencumbered cash and liquid assets at the holding company totaled $337 million at June 30, 2026.

• No share repurchases in Q2 2026; $71 million remains under repurchase authorization.

Outlook and guidance

• PREPA litigation and oversight board composition remain key uncertainties; resolution is expected to be a catalyst for further strategic actions.

• Management expects continued focus on portfolio surveillance, remediation, and maximizing recoveries, especially related to Puerto Rico exposures.

• No material new business is anticipated; future results will depend on resolution of Puerto Rico litigation and recoveries from legacy exposures.

• Debt service payments on PREPA are expected to be $20 million in 2027 and $20 million in 2028, indicating a benign payment schedule.

• Potential for further distributions from National to the holding company will depend on detailed portfolio analysis as the insured book runs off.