Bond insurer MBIA (MBI) reported an adjusted pre-tax loss of $84 million for the fourth quarter of 2013 compared with adjusted pre-tax income of $110 million for the fourth quarter of 2012.

The firm had net income of $132 million, or $0.68 per diluted share, for the fourth quarter of 2013. That’s compared with consolidated net income of $636 million, or $3.26 per diluted share, for the fourth quarter of 2012.

MBIA’s loss for the year ended December 31, 2013, was $452 million compared with an adjusted pre-tax loss of $708 million in 2012.

“During 2013, we made very substantial progress towards moving beyond the effects of the financial crisis,” said MBIA president and CFO Chuck Chaplin. “The primary litigation over the reorganization of our insurance businesses was finally and favorably resolved. The financial positions of MBIA Corp. and MBIA UK were significantly stabilized by the collection of over 90% of the putback recoverable on the year-end 2012 balance sheet and the commutation of $20 billion of potentially volatile liabilities.”

Chaplin said the intercompany loan between National and MBIA Corp. was repaid, clearing a major hurdle to the re-establishment of National’s position in the municipal bond insurance business.

“We now await actions by the rating agencies in recognition of these significant accomplishments. We expect that National will be the primary driver of shareholder value going forward,” he said.

MBIA in 2013 reached a series settlements related to flawed mortgage securities issued before the U.S. housing crisis. The monoline insurer announced in December that it sold all claims and rights to repayment from the bankruptcy estate to cover putback claims that the insurer previously filed against RFC, GMAC and ResCap.

“Since the third quarter, we have seen a continued trend toward lower volatility,” Chaplin said. “After the fourth quarter ended, we saw the commutation or termination of nearly $6 billion of exposure related to CMBS and corporate CDOs, including the previously announced commutation of $3 billion of potentially highly volatile CMBS transactions. Although we recorded approximately $162 million of economic losses on insured exposures in the quarter, including the cost of the commutation, we removed a substantial amount of risk and improved the stability of our structured finance book of business. National’s earnings were consistent with expectations after disappointing results in the second and third quarters.”

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