MBIA INC 8-K

What Happened
MBIA Inc. (NYSE: MBI) filed an 8-K on Feb. 26, 2026 reporting a consolidated GAAP net loss of $177 million (‑$3.58 per diluted share) for full-year 2025, versus a GAAP net loss of $447 million (‑$9.43) in 2024. On a non‑GAAP basis, MBIA reported Adjusted Net Income of $23 million ($0.46 per diluted share) for 2025 versus an Adjusted Net Loss of $184 million (‑$3.90) in 2024. Management attributed most of the improvement to National Public Finance Guarantee Corporation’s favorable losses and loss adjustment expense (LAE) variance—largely tied to its Puerto Rico Electric Power Authority (PREPA) exposure and a sale of custodial receipts related to PREPA bankruptcy claims. For Q4 2025 MBIA reported a GAAP net loss of $51 million (‑$1.01) and an Adjusted Net Loss of $12 million (‑$0.24).

Key Details

• Full-year 2025 GAAP net loss: $177M; Adjusted Net Income: $23M (management’s non‑GAAP measure).
• Q4 2025 GAAP net loss: $51M; Q4 Adjusted Net Loss: $12M.
• Liquidity as of Dec. 31, 2025: $357M (primarily cash and liquid invested assets). National paid MBIA a $63M as‑of‑right dividend in Q4 2025; MBIA repaid $45M of 7.00% debentures on Dec. 15, 2025.
• Share repurchase: no shares bought in Q4; $71M remaining repurchase capacity as of Feb. 19, 2026; 50.5M common shares outstanding.
• National metrics (Dec. 31, 2025): statutory capital $0.9B; claims‑paying resources $1.4B; fixed‑income investments + cash book value $1.3B; gross par insured $22.3B; insured leverage ratio 24:1 (down from 28:1 at year‑end 2024). MBIA Insurance Corp. statutory capital $79M and claims‑paying resources $317M.

Why It Matters
The filing shows a meaningful year‑over‑year improvement on MBIA’s adjusted results driven mainly by resolution-related gains at National tied to PREPA claims—an item that materially affects reported results and reserve estimates. Investors should note the difference between GAAP and management’s Adjusted Net Income (a non‑GAAP measure that excludes certain items and segments) when assessing operating performance. MBIA’s stated liquidity, the Q4 dividend from National, and the debt repayment are concrete capital actions investors can track, while National’s statutory capital, claims‑paying resources and leverage ratio provide visibility into the insurer’s capacity to cover public finance exposures. MBIA will host a webcast and conference call on Feb. 27, 2026 at 8:00 AM ET to discuss results.