Monoline MBIA Posts $727.8m Loss in Q309

MBIA (MBI) lost $727.8m, or $3.50 per share, during Q309, compared to an $806.5m loss, or $3.42 per share, in Q308. Results were impacted by a number of losses, including an $810.2m pre-tax unrealized loss on insured credit derivatives, and $238.8m in pre-tax loss and loss adjustment expenses related to MBIA’s insured exposures to second-lien mortgage loan securitizations. Other losses included $171.4m in pre-tax realized losses and other-than-temporary impairments on investments. The Armonk, N.Y.-based monoline provides financial guarantee insurance, fixed-income asset management, and other financial services. The Q309 loss comes after a profitable Q209 and Standard and Poor’s lowered its ratings of MBIA Insurance Corp. and the parent holding company at the end of the quarter. President and chief financial officer Chuck Chaplin said gains on debt repurchases could not make up for losses in the insurance business that were above projections. “The third quarter’s loss is a reminder that the impact of this recession continues to be felt throughout the economy,” Chaplin said. Write to Austin Kilgore.

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