MBIA Corp. ends second quarter with $92 million of cash, short-term investments

By Lisa Kerner

Charlotte, N.C., Aug. 8 - MBIA Corp. had $627 million in cash and invested assets at June 30.

Cash, short-term investments and other highly liquid investments available to meet liquidity demands, excluding amounts held by subsidiaries, totaled $92 million, according to the company's second-quarter earnings news release.

MBIA believes its current liquidity position, together with future cash inflows and amounts available under its loan agreement with Bank of America, is adequate to make expected future claim payments.

There was no outstanding balance under the Blue Ridge Investments, LLC at quarter end.

MBIA had statutory capital of $1.2 billion and claims-paying resources totaling $3.6 billion at June 30.

The company's adjusted book value was $29.28 per share at the end of the second quarter, compared to $30.68 per share at year end.

MBIA recorded a net loss of $178 million, or $0.92 per diluted share, for the second quarter of 2013, compared with net income of $581 million, or $2.98 per diluted share, for the second quarter of 2012, the release said.

For the six months ended June 30, MBIA reported a net loss of $14 million, or $0.07 per diluted share, compared with net income of $591 million, or $3.03 per diluted share, for the same period last year.

As previously announced, during the quarter MBIA and its subsidiaries settled outstanding litigation matters with Bank of America, Societe Generale and Flagstar Bank. Total operating expenses increased by about $87 million in the first half of 2013 as a result.

Armonk, N.Y.-based MBIA is a holding company whose subsidiaries provide financial guarantee insurance and related reinsurance, advisory and portfolio services for the public and structured finance markets as well as asset management advisory services.

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