MBIA Narrows 2025 Loss to $177M on PREPA LAE Benefit
MBIA narrowed its 2025 GAAP net loss to $177 million (−$3.58/share) from $447 million in 2024, driven by a $23 million LAE benefit from sale and revised loss estimates on PREPA exposure. Book value per share fell to negative $44.27 as gross par ran off to $22 billion.
1. Narrowed GAAP Net Loss
MBIA reduced its full-year 2025 GAAP net loss to $177 million (−$3.58 per share) from $447 million (−$9.43 per share) in 2024, while fourth-quarter loss remained stable at $51 million. Management cited lower expenses and modest revenue gains as additional drivers of the improved annual result.
2. LAE Benefit from PREPA Claims Sale
A $23 million reduction in loss and loss adjustment expense at National Public Finance Guarantee resulted from the sale of a PREPA custodial receipt at prices above prior estimates and favorably revised loss projections, turning adjusted net income to $23 million in 2025 from a $184 million loss. Fourth-quarter adjusted net loss narrowed to $12 million from $22 million a year earlier.
3. Capital Strain and Portfolio Runoff
MBIA’s book value per share stood at negative $44.27 at year-end 2025, with MBIA Insurance Corp. contributing negative $53.35 per share. National’s insured portfolio gross par ran off by about $3 billion to $22 billion, and statutory capital rose to $937 million, lowering the leverage ratio from 28:1 to 24:1.
4. Holding Company Liquidity and Dividends
MBIA Inc. reported $357 million of unencumbered cash and liquid assets as of December 31, 2025, down from $380 million a year earlier due to debt repayment and operating expenses, partially offset by a $63 million dividend from National. Total holding company assets reached $653 million, including $183 million pledged to guaranteed investment agreement holders.