MBIA profit surges in 2Q
Bond insurer MBIA (MBI) posted net income available to common shareholders of $581 million, or $2.98 a share, for the second quarter of 2010.
That compares to earnings of $137 million, or 68 cents a share, a year earlier.
In just the second quarter, MBIA commuted $8.5 billion of its insurance exposure. Most of the commutations involved contracts on commercial-mortgage backed securities, commercial real estate, CDOs, ABS and subprime residential mortgage-backed securities.
MBIA's adjusted pre-tax loss hit $152 million for 2Q, down from $161 million a year earlier.
The company's chief financial officer Chuck Chaplin suggested in an earnings report that MBIA's insured portfolio is reaching a point of stability while its National unit, which was formed as a separate insurance firm in 2009, remains in line with expectations.