MBIA Q3 Profit Rises - Update

(RTTNews) - Bond insurer MBIA Inc. (MBI), Tuesday reported an increase in profit for the third quarter, driven mostly by higher revenues, with earnings coming in ahead of analysts estimates.

MBIA's third-quarter profit rose to $132 million or $0.67 per share from $7 million or $0.04 per share last year. On average, three analysts polled by Thomson Reuters expected a loss of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.

MBIA's total premiums earned in the quarter dropped to $104 million from 155 million in the last year quarter. Net-investment income declined to $42 million from $50 million in the year-ago period.

Total revenues for the three-month period rose to $420 million from $281 million a year ago.

The third-quarter's revenues included $257 million of net gains on the fair value of insured derivatives compared with $21 million of net losses for the same period last year.

MBIA's adjusted book value was $28.68 per share at September 30, 2013 compared to $30.68 per share at December 31, 2012. Book value was $16.54 per share as of September 30, 2013, compared to $16.22 per share as of December 31, 2012.

CFO Chuck Chaplin said, "Our third quarter financial results were disappointing. We recorded increased losses on our insured CMBS exposures and took a partial write-down against our insured second lien RMBS loss recoverable."

MBIA's adjusted pre-tax loss for the third quarter was $188 million compared to adjusted pre-tax loss of $118 million last year.

MBI closed Tuesday's trading at $11.66, down $0.02 or 0.17%, on the NYSE. The stock, however, gained $0.39 or 3.34%, in after-hours trade.