MBIA Inc (MBI) 2024 Q1 法說會逐字稿

Welcome to the MBIA Inc. first quarter 2024 financial results conference call. I would now like to turn the call over to Greg Diamond, Managing Director of Investor and Media Relations at MBIA.

歡迎參加 MBIA Inc. 2024 年第一季財務業績電話會議。我現在想將電話轉給 MBIA 投資者和媒體關係董事總經理 Greg Diamond。

Please go ahead, sir.

請繼續，先生。

Thank you Ashley. Welcome to MBIA's conference call for our first quarter 2024 financial results. After the market closed yesterday, we issued and posted several items on our websites, including our financial results for 10-Q, quarterly operating supplement and statutory financial statements for both MBI Insurance Corp and the National Public Finance Guarantee Corporation. We also posted updates to the listings of our insurance company's insured portfolios.

謝謝你阿什利。歡迎參加 MBIA 關於 2024 年第一季財務表現的電話會議。昨天收盤後，我們在網站上發布並發布了幾項內容，包括 10 季度的財務業績、季度營運補充資料以及 MBI 保險公司和國家公共財政擔保公司的法定財務報表。我們也發布了保險公司承保投資組合清單的更新。

Regarding today's call, please note that anything said on the call is qualified by the information provided in the Company's 10-K, 10-Q and other SEC filings as our company's definitive disclosures are incorporated in those documents. We urge investors to read our 10-K and 10-Q's as they contain our most current disclosure about the company and its financial and operating results. Those documents also contain information that may not be addressed on today's call.

關於今天的電話會議，請注意，電話會議中所說的任何內容均符合公司 10-K、10-Q 和其他 SEC 文件中提供的信息，因為我們公司的最終披露信息已納入這些文件中。我們敦促投資者閱讀我們的 10-K 和 10-Q，因為它們包含我們有關公司及其財務和經營業績的最新披露資訊。這些文件也包含今天的電話會議中可能未提及的資訊。

The definitions and reconciliations of the non-GAAP terms included in our remarks today are also included in our 10-K and 10-Q's as well as our financial results report and our quarterly operating supplement. The recorded replay of today's call will become available on the MBIA website approximately two hours after the end of the call.

我們今天的演講中包含的非 GAAP 術語的定義和調節也包含在我們的 10-K 和 10-Q 以及我們的財務業績報告和季度營運補充報告中。今天通話的錄音重播將在通話結束大約兩小時後在 MBIA 網站上提供。

So here's our Safe Harbor disclosure statement. Our remarks on today's conference call may contain forward looking statements. Important factors such as general market conditions and the competitive environment could cause our actual results to differ materially from the projected results referenced in our forward-looking statements.

這是我們的安全港披露聲明。我們在今天的電話會議上的發言可能包含前瞻性陳述。一般市場狀況和競爭環境等重要因素可能導致我們的實際結果與我們前瞻性陳述中引用的預測結果有重大差異。

Risk factors are detailed in our 10-K and 10-Q's, which are available on our website at mbia.com. The company cautions now to place undue reliance on any such forward-looking statements. The company also undertakes no obligation to publicly correct or update any forward-looking statements if it later becomes aware that such statement is no longer accurate. For our call today, Will Fallon and Joe SatCon's will provide introductory comments and then a question and answer session will follow.

我們的 10-K 和 10-Q 中詳細介紹了風險因素，可在我們的網站 mbia.com 上取得。該公司現在警告不要過度依賴任何此類前瞻性陳述。如果公司後來發現此類聲明不再準確，公司也不承擔公開更正或更新任何前瞻性聲明的義務。對於我們今天的電話會議，威爾法倫 (Will Fallon) 和喬薩特康 (Joe SatCon) 將提供介紹性評論，然後將進行問答環節。

Now here is Will Fallon.

現在是威爾法倫。

Thanks, Greg. Good morning, everyone. Thank you for being with us today. Last month, we said goodbye to Anthony McKiernan, our CFO, who helped us navigate through some very difficult times and was instrumental in many projects that have been critical to MBIA. Anthony will be missed, and we wish him the very best in his future endeavors.

謝謝，格雷格。大家，早安。感謝您今天和我們在一起。上個月，我們告別了財務長 Anthony McKiernan，他幫助我們度過了一些非常困難的時期，並在許多對 MBIA 至關重要的項目中發揮了重要作用。我們會想念安東尼，我們祝他在未來的努力中一切順利。

Our first quarter 2024 results were relatively straightforward and relatively unchanged versus a year ago. Our new CFO, Joe Schachinger will have more to say about these results shortly. In the meantime, our primary objectives continue to be focused on the resolution of our remaining Puerto Rico exposure and then restarting the process to sell the company. Regarding PREPA, National's remaining exposure to PREPA was $610 million of gross par insured at the end of the first quarter.

我們 2024 年第一季的業績相對簡單，與一年前相比也相對沒有變動。我們的新任財務長 Joe Schachinger 很快就會對這些結果發表更多評論。同時，我們的主要目標繼續集中在解決我們剩餘的波多黎各風險，然後重新啟動出售公司的流程。至於 PREPA，截至第一季末，國家黨對 PREPA 的剩餘保額為 6.1 億美元。

The Title III court held the confirmation hearing for PREPA's plan of adjustment in March of this year, and we await a ruling on that hearing as well as rulings to be issued by the First Circuit Court regarding appeals being soft by bondholders opposing the current PREPA restructuring plan.

Title III 法院於今年 3 月舉行了 PREPA 調整計劃的確認聽證會，我們正在等待該聽證會的裁決，以及第一巡迴法院將就反對當前 PREPA 重組的債券持有人的上訴軟弱作出的裁決計劃。

Regarding the balance of National's insured portfolio, those credits have continued to perform generally consistent with our expectations for gross par amount outstanding for National's insured portfolio has declined by approximately $600 million from year end 2023, the $27.8 billion at the end of the first quarter of this year.

關於國家保險投資組合的餘額，這些信貸的表現繼續與我們的預期基本一致，國家保險投資組合的未償付面值總額較2023 年年底下降了約6 億美元，即2023 年第一季末的278 億美元。

National's leverage ratio of gross par to statutory capital remain unchanged. From year end 2023 at 25 to 1. At the end of the first quarter, National had total claims-paying resources of $1.7 billion and statutory capital and surplus of $1.1 billion. Now Joe will provide additional comments about our financial results.

國家黨的總面額與法定資本的槓桿比率不變。從 2023 年底開始，比例為 25 比 1。截至第一季末，國家黨的索賠支付資源總額為 17 億美元，法定資本和盈餘為 11 億美元。現在喬將對我們的財務業績提供更多評論。

Thank you, Will, and good morning all. I will begin with a review of our first quarter 2024 GAAP and non-GAAP results and then provide an overview of our statutory results.

謝謝你，威爾，大家早安。我將首先回顧我們 2024 年第一季的 GAAP 和非 GAAP 業績，然後概述我們的法定業績。

The company reported a consolidated GAAP net loss of $86 million or a negative $1.84 per share for the first quarter of 2024 compared to a consolidated GAAP net loss of $93 million or a negative $1.86 per share for the first quarter of 2023.

該公司報告稱，2024 年第一季的綜合 GAAP 淨虧損為 8,600 萬美元，即每股負 1.84 美元，而 2023 年第一季的綜合 GAAP 淨虧損為 9,300 萬美元，即每股負 1.86 美元。

The lower GAAP net loss this quarter was largely driven by lower losses from our discontinued operations. Our net loss from continuing operations of $87 million was slightly higher in the first quarter of 2024 compared with a net loss of $83 million in the same period in 2023, primarily as a result of higher loss and LAE at National, which largely related to pushing out the timing of the effective date of the prep plan.

本季公認會計準則淨虧損較低主要是由於我們已終止業務的虧損減少。2024 年第一季度，我們的持續經營淨虧損為8,700 萬美元，略高於2023 年同期的淨虧損8,300 萬美元，這主要是由於國家銀行的虧損和LAE 較高，這在很大程度上與推動確定準備計劃的生效日期。

To restructure its debt and higher losses on variable interest entities at MBIA Insurance Corp, most of which were reclassified from other comprehensive income and therefore neutral to total equity. These losses largely relate to purchases of VIE. debt executed as part of a planned termination of MBIA Insurance Corp. Last material insured ABS CDO transaction.

重組 MBIA Insurance Corp 可變利益實體的債務和較高損失，其中大部分從其他綜合收益中重新分類，因此對總股本呈中性。這些損失主要與購買 VIE 有關。作為 MBIA Insurance Corp. 計劃終止的一部分而執行的債務。

These unfavorable variances, we're partly offset by foreign exchange gains on our euro Medium Term Note liabilities in our corporate segment this quarter compared to mark-to-market losses on interest rate swaps and foreign exchange losses on euro medium term notes in our corporate segment in the first quarter of last year.

這些不利的差異被本季度我們企業部門歐元中期票據負債的外匯收益部分抵消，而我們企業部門的利率互換按市值計價的損失和歐元中期票據的外匯損失則被部分抵消。部分。

As a reminder, in the fourth quarter of 2023 and the first quarter of 2024, we terminated all of the swaps that were part of our holding company ALM business. The company's adjusted net loss, a non-GAAP measure was $24 million or a negative $0.52 per share for the first quarter of 2024, compared with an adjusted net loss of $1 million or negative $0.03 per share for the first quarter of 2023.

提醒一下，在 2023 年第四季和 2024 年第一季度，我們終止了屬於我們控股公司 ALM 業務的所有掉期。該公司2024 年第一季的調整後淨虧損（非GAAP 衡量標準）為2,400 萬美元，即每股負0.52 美元，而2023 年第一季調整後淨虧損為100 萬美元，即每股負0.03美元。

The unfavorable change was primarily due to higher loss and LAE at National in the current quarter. MBIA Inc's book value per share decreased $1.24 to a negative $33.80 per share as of March 31, 2024 versus a negative $32.56 per share as of December 31, 2023, primarily due to the net loss for the quarter. Included an MBIA in book value as of March 31, 2024 is a negative $45.44 per share of MBIA insurance Corp's book value versus a negative $44.91 per share as of December 31, 2023.

不利的變化主要是由於國家銀行本季的虧損和 LAE 增加。截至2024 年3 月31 日，MBIA Inc 的每股帳面價值下降1.24 美元，至負33.80 美元，而截至2023 年12 月31 日，每股帳面價值為負32.56 美元，這主要是由於該季度的淨虧損。截至 2024 年 3 月 31 日，MBIA 保險公司的帳面價值為每股負 45.44 美元，截至 2023 年 12 月 31 日，每股帳面價值為負 44.91 美元。

I will now spend a few minutes on our corporate segment balance sheet. The corporate segment, which primarily comprises the activities of the holding company and MBA Inc had total assets of approximately $710 million as of March 31, 2024. Within this total are the following material assets, unencumbered cash and liquid assets held by MBA Inc.

我現在將花幾分鐘介紹我們公司部門的資產負債表。截至 2024 年 3 月 31 日，公司部門主要包括控股公司和 MBA Inc 的活動，總資產約 7.1 億美元。其中包括 MBA Inc. 持有的以下實質資產、未支配現金和流動資產。

Totaled $376 million compared with $411 million as of December 31, 2023. The decrease was largely due to spending approximately $36 million on a retiring GFL euro-denominated Medium Term Note liabilities before their maturities. These purchases were executed at prices accretive to equity and will reduce euro exchange rate volatility within our results come forward.

截至 2023 年 12 月 31 日，總額為 3.76 億美元，截至 2023 年 12 月 31 日為 4.11 億美元。減少的主要原因是在 GFL 歐元計價中期票據負債到期之前花費了約 3,600 萬美元。這些購買是以增加股本的價格執行的，並將減少我們未來業績中歐元匯率的波動。

I'll also note that subsequent to March 31, we spent an additional $26 million to retire GFL remaining near term euro denominated Medium Term Note liabilities at a price accretive to equity. In addition to the unencumbered cash and liquid assets, I mentioned the corporate segment assets included approximately $230 million of assets at market value pledged to guaranteed investment contract holders.

我還要指出的是，3 月 31 日之後，我們額外花費了 2,600 萬美元，以增加股本的價格註銷 GFL 剩餘的近期歐元計價中期票據負債。除了未支配現金和流動資產外，我提到公司部門資產還包括抵押給擔保投資合約持有人的按市場價值計算的約 2.3 億美元資產。

Turning to the insurance company, statutory results, National reported a statutory net loss of $11 million for the first quarter of 2024 compared to statutory net income of $11 million for the first quarter of 2023. The unfavorable variance was primarily driven by higher loss in LAE, largely related to the estimated extension of the prep of debt restructuring and to a lesser extent, lower net investment income.

至於保險公司的法定業績，國家保險報告 2024 年第一季的法定淨虧損為 1,100 萬美元，而 2023 年第一季的法定淨利為 1,100 萬美元。不利差異主要是由於 LAE 損失增加造成的，這主要與債務重組準備工作的估計延長有關，在較小程度上與淨投資收入下降有關。

Net investment income in 2024 reflects lower invested assets due to the as-of-right and special dividends paid by National to MBA Inc in the fourth quarter of 2023, which totaled almost $650 million. National statutory capital decreased by $18 million largely due to its net loss for the quarter and consistent with year-end 2023 was approximately $1.1 billion as of March 31, 2024.

2024 年的淨投資收入反映了投資資產的減少，這是由於國家黨在 2023 年第四季度向 MBA Inc 支付了總計近 6.5 億美元的按權股息和特別股息。國家法定資本減少了 1,800 萬美元，主要是由於本季的淨虧損，截至 2024 年 3 月 31 日，與 2023 年底一致，淨虧損約為 11 億美元。

Claims-paying resources were $1.7 billion, also consistent with year-end 2023. As of March 31, 2024, National had gross par outstanding of $27.8 billion which is down about $600 million from year-end 2023.

理賠資源為 17 億美元，也與 2023 年底的情況一致。截至 2024 年 3 月 31 日，國家黨的未償還面額總額為 278 億美元，比 2023 年底減少約 6 億美元。

Now let's turn to MBIA Insurance Corp. MBIA Insurance Corp reported a statutory net loss of $$35 million for the first quarter of 2024 compared to a statutory net loss of $20 million for the first quarter of 2023. Net losses in both periods were driven by loss and LAE on primarily Zohar related salvage.

現在讓我們來看看 MBIA Insurance Corp。這兩個時期的淨虧損主要是由 Zohar 相關救助造成的損失和 LAE 造成的。

As of March 31, 2024 the statutory capital of MBIA Insurance Corp was $119 million, down from $152 million at year end 2023, primarily due to the net loss for the current quarter. Claims-paying resources totaled $468 million at March 31, 2024 compared to $504 million at year-end 2023. MBIA insurance Corp's insured gross par outstanding was $2.7 billion as of March 31, 2024, down about 5% from year-end 2023.

截至 2024 年 3 月 31 日，MBIA Insurance Corp 的法定資本為 1.19 億美元，低於 2023 年底的 1.52 億美元，主要是由於本季的淨虧損。截至 2024 年 3 月 31 日，理賠資源總額為 4.68 億美元，而 2023 年底為 5.04 億美元。截至 2024 年 3 月 31 日，MBIA Insurance Corp 的保險未償還總額為 27 億美元，較 2023 年底下降約 5%。

And now we will turn the call over to the operator to begin the question and answer session.

現在我們將把電話轉給接線員以開始問答環節。

(Operator Instructions) Tommy joint, KBW.

（操作員說明）湯米接頭，KBW。

Hey, good morning, guys. Thanks for taking my questions. And you repurchased some medium term notes during the quarter and post quarter end. Can you talk about your current liquidity profile at the holding company and your appetite and ability to continue repurchasing some of those liabilities and should all of those transactions be accretive from?

嘿，早上好，夥計們。感謝您回答我的問題。您在季度末和季後末回購了一些中期票據。您能否談談您目前在控股公司的流動性狀況以及您繼續回購部分負債的意願和能力，以及所有這些交易是否應該從中增值？

Yes, Tommy has some I think, you know, after we did the dividend at the end of last year, the amounts they went up to the holding company, depending on how you look at it, the dividend was $550 million we said about $400 million out to the actual shareholders. So our liquidity at the holding company is stronger than it's been in quite a while.

是的，湯米有一些，我想，你知道，去年年底我們發放股息後，他們分配給控股公司的金額，取決於你如何看待，股息是 5.5 億美元，我們說大約 400 美元向實際股東派發100萬元。因此，我們控股公司的流動性比以往任何時候都強。

And so as we've indicated on the last call, we continue to look for opportunities, whether it be buying debt, buying stock, in terms of how to use that liquidity. So we do have opportunities to do that. It really is a matter of balancing all those trade-offs and looking for good opportunities, whether it be near term debt, some of the longer maturities.

因此，正如我們在上次電話會議中所表示的那樣，我們將繼續尋找機會，無論是購買債務還是購買股票，以及如何利用流動性。所以我們確實有機會這樣做。這實際上是一個平衡所有這些權衡並尋找良好機會的問題，無論是短期債務還是一些期限較長的債務。

And it really just has to do with what the prices and therefore what the interest rates are at any point in time. So we'll continue to look at that. And we do believe that there are value adding to our shareholders and we do that.

它實際上只與任何時間點的價格以及利率有關。所以我們將繼續關注這一點。我們確實相信這可以為我們的股東帶來增值，我們也確實這樣做了。

Thanks, actually. And just one follow-up here. Between the investment agreements, the medium term notes and unsecured notes on the holding company balance sheet, are all of those able to be repurchase or redeem in the open market? Or do some of those have to wait till maturity,

謝謝，實際上。這裡只是一個後續行動。控股公司資產負債表上的投資協議、中期票據和無抵押票據是否都可以在公開市場回購或贖回？或者其中一些必須等到成熟，

Second you're Good morning. The investment agreements do have to wait for maturity. There are really no provisions to call those earlier. However, as we've done in the past, we are able to purchase the medium term notes and the income secured debt. And as Bill explained, we'll look to be up to opportunistic about getting those basket prices accretive to equity.

第二個你早安。投資協議確實必須等待到期。實際上沒有任何規定可以更早地呼叫這些內容。然而，正如我們過去所做的那樣，我們能夠購買中期票據和收入擔保債務。正如比爾所解釋的那樣，我們將尋求機會主義，讓這些一攬子價格增加股本。

John Staley, Staley Capital Advisors.

約翰‧斯塔利，斯塔利資本顧問公司。

Bill, am curious -- what do you think its contributing to the lack of an issuance several opinions, particularly from Judge Swain. It just seems really puzzling to me that testing has been around for so long. I can imagine what the hell's knew why? And what are your comments on when this thing finally gets resolved?

比爾，我很好奇——你認為是什麼導致了缺乏發表一些意見，特別是來自斯溫法官的意見。讓我感到非常困惑的是，測試已經存在這麼久了。我可以想像到底為什麼？當這件事最終得到解決時，您有何評論？

Yes, good morning, John. As you know, I guess there's two things that we focused on we are focusing on. One was the hearing at the First Circuit that took place January 29, I believe, is when the hearing took place. So we're now more than three months past that there is a view that some Judge Swain is waiting for the First Circuit to issue their opinion and before she issues the confirmation.

是的，早上好，約翰。如您所知，我想我們重點關注兩件事。其中之一是 1 月 29 日在第一巡迴法院舉行的聽證會，我相信，聽證會就是在那時舉行的。因此，現在已經過去三個多月了，有一種觀點認為，一些斯溫法官正在等待第一巡迴法院發表他們的意見，然後再做出確認。

And, you know, unfortunately, we have some experience over the years. It's just very difficult to predict when these opinions will be issued. So just like you were very focused on it, it could come any day, but I suppose you've been saying that now for over three months. So I can't tell you when it's going to happen, but you're focused on the right thing, which I think is the First Circuit and then Judge Swain.

而且，不幸的是，我們多年來累積了一些經驗。只是很難預測這些意見何時會被發布。就像你非常專註一樣，它可能會在任何一天到來，但我想你已經這麼說了三個多月了。所以我不能告訴你什麼時候會發生，但你專注於正確的事情，我認為是第一巡迴法院，然後是斯溫法官。

Okay. And at what level do you become more active in buying stock back?

好的。在什麼層面上你會更積極地回購股票？

As you know, it's we've done a lot of it out of national right now. National doesn't have capacity. But as I just mentioned in response to the earlier caller, we continue to look at it at the holding company and then we'll continue to look at where the stock is trading, what the best use of that cash is and what's best for our shareholders.

如您所知，我們現在已經在國家範圍內做了很多工作。國行沒有這個能力。但正如我剛才在回復之前的來電者時提到的，我們將繼續關注控股公司，然後我們將繼續關注股票的交易地點、現金的最佳用途是什麼以及對我們來說最有利的方式。 。

So that any pricing would be done at the holding company level and then you have to have capacity there that we did.

因此，任何定價都將在控股公司層級完成，然後你必須擁有我們那樣的能力。

We have authorization and we have liquidity to do that.

我們有授權並且有流動性來做到這一點。

Okay, thank you.

好的謝謝。

It is star and one for your question. So we will pause another moment to allow any further questions to queue. And there appears to be no further questions at this time. I'll turn the call back over to management for closing remarks.

對於你的問題來說，這是一顆星星。因此，我們將暫停一會兒，以便讓更多問題排隊。目前似乎沒有進一步的問題。我會將電話轉回管理層以供結束語。

Thank you, Ashley, and thanks to those of you listening to our call today. Please contact us directly if you have any additional questions. We also recommend that you visit our website at mbia.com for additional information about the company. Thank you for your interest in MBIA. Good day and goodbye.

謝謝阿什利，也謝謝今天收聽我們電話的各位。如果您還有任何其他問題，請直接與我們聯繫。我們還建議您訪問我們的網站 mbia.com，以了解有關該公司的更多資訊。感謝您對 MBIA 的興趣。美好的一天，再見。

Thank you ladies and gentlemen. This does conclude today's MBIA First Quarter 2024 financial results conference call. You may now disconnect your line and have a wonderful day.

謝謝女士們先生們。今天的 MBIA 2024 年第一季財務業績電話會議到此結束。您現在可以斷開線路並度過美好的一天。