- **Financial Improvement**: GAAP net loss narrowed to $8 million, driven by PREPA-related claim sales and reduced portfolio exposure.
- **PREPA Uncertainty**: Ongoing delays in Puerto Rico's financial oversight board and restructuring plan approval.
- **Cautious Optimism**: Improved creditor alignment but continued focus on liquidity management and strategic flexibility.

**【CEO Summary Section】**
- The company reported a consolidated GAAP net loss of $8 million for the quarter, an improvement from $56 million in the prior year. This was driven by lower losses in the National PREPA portfolio and the sale of $374 million in PREPA-related claims.
- National's PREPA exposure has decreased to $425 million in gross par outstanding, down from $2.1 billion at year-end 2024. The company remains focused on resolving PREPA-related claims, though the timeline remains uncertain.
- The cooperative group of bondholders opposing PREPA's restructuring plan now represents approximately 90% of PREPA bondholders, indicating stronger creditor alignment.

**【CFO Financial Commentary】**
- GAAP net loss of $8 million (negative $0.17 per share) compared to $56 million (negative $1.18 per share) in the prior year. Non-GAAP adjusted net income was $51 million ($1.03 per share), reflecting improved financial health despite ongoing challenges in PREPA resolution.
- Statutory capital at National increased to $994 million as of September 2025, up $82 million from year-end 2024 levels, though claims paying resources remained stable.

**【Q&A Key Highlights】**
- **Buyback Capacity**: $71 million remains available, though current utilization is minimal. PREPA-related payments are manageable with $57 million due in 2026, $20 million in 2027, and $20 million in 2028.
- **PREPA Progress**: While progress is positive, delays persist due to legal challenges and uncertainty around the Puerto Rico Financial Oversight and Management Board's composition.
- **Strategic Options**: The company remains open to potential sales or restructuring, though no formal process is active. Dividend distributions are contingent on PREPA resolution and liquidity needs.

MBIA Inc. (MBI) Q3 2025 Earnings Call Transcript

Revenue

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MBI

MBI fundamentals

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