) reported adjusted reported net income for the quarter was $3.26
per share compared with a net loss of $3.23 per share in the
fourth quarter of 2011. The reversal in the company results were
brought about by changes in the fair value of insured credit
The company reported net income for the quarter was $3.26 per
share compared with a net loss of $3.23 per share in the fourth
quarter of 2011.
Total revenue was $732 million, significantly improved from a
revenue loss of $1.17 billion in the year-ago quarter.
Premiums earned were $141 million, up from $102 million in the
Net investment income was reported at $42 million, down from
$84 million in the year-ago quarter.
For the full year 2012, net income was $6.33 per share,
compared with a net loss of $6.69 per share. The reversal in net
income was primarily due to $1.5 billion of net gains on insured
credit derivatives, compared with $2.8 billion of net losses on
insured credit derivatives in 2011.
U.S. Public Finance Insurance
segment is managed by its subsidiary National Public Finance, set
up in February 2009.
Therefore, National virtually wrote no new business. Total
premiums earned in the U.S. public finance insurance segment were
$122 million, up 8% year over year. The increase was due to
refunding premiums earned, partially offset by a decrease in
scheduled premiums earned.
Pretax income was $202 million compared with $163 million in
the prior-year quarter.
Structured Finance and International Insurance
business operations are managed by MBIA Corp. While no new
business was written in this segment, the existing business
generates the scheduled premiums earned. The segment suffered an
adjusted pre-tax loss of $13 million compared with an adjusted
pre-tax loss of $300 million in the prior-year quarter.
Premiums earned, net investment income, fee and
reimbursements, and premiums and fees on insured derivatives
totaled $115 million in the quarter.
are managed by Cutwater Asset Management. Cutwater recorded a
pre-tax loss of $1 million compared with a pre-tax loss of $9
million in prior-year quarter. The increase in the pre-tax loss
was primarily due to lower fees from affiliates.
Adjusted book value per share (a non-GAAP measure) declined to
$30.68 per share as of Dec 31, 2012, compared with $34.50 as of
Dec 31, 2011.
MBIA Corp.'s statutory capital stood at $1.5 billion at
year-end 2012 and claims-paying resources were $5.3 billion.
Other companies in the same industry,
Radian Group Inc. (
Genworth Financial Inc.
MGIC Investment Corporation
) are all witnessing losses from their mortgage businesses.
GENWORTH FINL (GNW): Free Stock Analysis
MBIA INC (MBI): Free Stock Analysis Report
MGIC INVSTMT CP (MTG): Free Stock Analysis
RADIAN GRP INC (RDN): Free Stock Analysis
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