MBIA (MBI) investor relations material

Executive summary

• Q3 2026 GAAP net loss widened to $24 million, or $(0.49) per share, from $8 million, or $(0.17), a year earlier; the smaller loss and LAE benefit was the main driver.

• Nine-month GAAP net loss narrowed to $110 million from $126 million; adjusted results shifted to a $18 million loss from $35 million of income.

• PREPA resolution, exposure reduction and runoff remain priorities; litigation delays timing of a potential shareholder-beneficial transaction, and no formal sale process is active.

Financial highlights

• Q3 adjusted net loss was $3 million, or $(0.06) per diluted share, versus adjusted net income of $51 million, or $1.03 per share, in Q3 2025.

• Nine-month adjusted net loss was $18 million, or $(0.36) per diluted share, versus adjusted net income of $35 million, or $0.70, in 9M 2025.

• Q3 revenue was $26 million versus $15 million; expenses were $49 million versus $22 million. Nine-month revenue was $77 million versus $52 million, and expenses were $184 million versus $177 million.

• Q3 loss and LAE benefit was $12 million versus $50 million; the nine-month benefit was $6 million versus $34 million.

• Book value per share fell $2.60 from year-end 2025 to $(46.87); shareholders’ equity was negative $2.391 billion versus negative $2.237 billion.

Outlook and guidance

• National is expected to pay its as-of-right dividend in December 2026, at a similar amount to the prior two years and potentially slightly higher; timing and amount of future distributions remain uncertain.

• PREPA exposure reduction remains a priority; sales depend on attractive prices, and management aims to complete a shareholder-beneficial transaction as soon as possible.

• Litigation largely drives transaction timing; the co-op agreement currently runs through August 2027.

• No new financial guarantee policies are expected outside remediation-related activity; National focuses on its existing portfolio, while the insurance subsidiary focuses on claims and recoveries.

• Parent resources are expected to cover debt service and general corporate needs over time from National distributions, but sufficiency is not assured.