MBIA reports Q2 combined operating EPS ($1.09), consensus 1c
Last night, MBIA reported Q2 revenue of $72M, consensus $87.85M. The negative result for the second quarter was primarily due to increased losses and loss adjustment expenses at National, primarily due to its Puerto Rico exposures, MBIA noted. Book value per share was $15.45 as of June 30, compared with $23.87 as of December 31, 2016. MBIA CEO Bill Fallon said, "National's losses and loss adjustment expenses in the quarter resulted from its insurance of several Puerto Rico credits, nearly all of which have entered bankruptcy-like proceedings under PROMESA. The ill-advised and unlawful actions of the Oversight Board and the administration of Governor Rossello have unnecessarily sacrificed PREPA's restructuring support agreement and caused creditors to launch numerous legal actions, including five litigations where National is a plaintiff. We intend to vigorously exercise the rights and remedies associated with our insurance on the Puerto Rico bonds." Consensus from Bloomberg.