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Like a Fannie Mae or Freddie Mac, but for municipal bonds instead of mortgages.

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• Municipal Bond Insurance: MBIA's primary active business involves providing financial guarantee insurance for municipal bonds issued by U.S. states, cities, and other public entities, assuring timely payment to bondholders.
• Legacy Structured Finance Guarantee Management: The company actively manages its existing portfolio of previously written structured finance guarantees to mitigate potential losses and maximize recoveries from these older, non-new-business policies.

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MBIA Inc. (MBI) operates primarily through its subsidiary, National Public Finance Guarantee Corporation, which provides financial guarantee insurance. MBIA sells primarily to other entities rather than individuals. Its "customers" are the issuers of municipal bonds and other public finance obligations seeking to enhance the creditworthiness of their debt.

It is important to note that MBIA's major customers are not typically publicly traded corporations with stock symbols, but rather governmental and quasi-governmental entities. Therefore, listing specific public company names and symbols is not applicable in this context. Instead, its customer base can be described by the following categories of entities:

• State and Local Governments: This category includes U.S. states, cities, counties, towns, villages, and other general-purpose municipal entities that issue debt to fund essential public services and infrastructure projects such as schools, roads, water and sewer systems, and public safety facilities.
• Public Authorities and Agencies: These are specialized entities created by governmental bodies to perform specific public services, often possessing the authority to issue bonds. Examples include housing authorities, transportation authorities, utility districts, health care districts, and port authorities.
• Special Districts: These are independent, special-purpose governmental units that operate separately from general-purpose local governments. They have their own taxing and spending authority and often issue bonds to finance specific services or infrastructure within their defined geographic area (e.g., fire districts, library districts, improvement districts).

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William C. Fallon Chief Executive Officer

William C. Fallon was elected as a Director of MBIA in May 2017 and appointed as Chief Executive Officer on September 15, 2017. Prior to his CEO appointment, Mr. Fallon served as President, Chief Operating Officer, and Vice President of the company, and led its Global Structured Finance Division. He also holds the titles of President and Chief Executive Officer of National Public Finance Guarantee Corp. Before joining MBIA in 2005, Mr. Fallon was a partner at McKinsey & Company, where he co-led the Corporate Finance and Strategy Practice. His work at McKinsey involved consulting with financial institutions on areas such as value-based management, valuation, mergers and acquisitions, securitization, and risk management. Earlier in his career, he was a financial consultant with Stern Stewart & Co. and a senior analyst at General Motors from 1989 to 1991, focusing on corporate and international finance, and mergers and acquisitions.

Joseph R. Schachinger Executive Vice President & Chief Financial Officer

Joseph R. Schachinger was named Executive Vice President and Chief Financial Officer of MBIA Inc. on April 30, 2024. On the same date, he was also appointed Chairman and Chief Financial Officer of MBIA Insurance Corp. Prior to these appointments, Mr. Schachinger served as the Controller of the company starting in May 2017, and as Deputy Controller from 2009. He initially joined MBIA in 2000 as a Vice President in the Controller's Group. Before his tenure at MBIA, Mr. Schachinger held positions at DNB US, New York, where he was Controller, Chief Trading Risk Officer, and Financial and Operations Principal.

Daniel M. Avitabile Assistant Vice President and President & Chief Risk Officer of MBIA Corp.

Daniel M. Avitabile serves as an Assistant Vice President of MBIA Inc. and as President and Chief Risk Officer of MBIA Corp. Before becoming Chief Risk Officer in 2016, he managed MBIA Corp.'s Special Situations Group, which was responsible for remediation and commutation activities. Mr. Avitabile has been with MBIA since 2000, holding various roles in insured portfolio management, remediation, corporate strategy, and structured finance new business. His experience prior to MBIA includes positions at The Chase Manhattan Bank and State Street Bank.

Adam T. Bergonzi Assistant Vice President and Chief Risk Officer of National

Adam T. Bergonzi is an Assistant Vice President of MBIA Inc. and the Chief Risk Officer of National. In this role, he oversees all of National's risk and insured portfolio management activities. Mr. Bergonzi rejoined MBIA in 2010 as Chief Risk Officer of National. From 2008 to 2010, he co-founded Municipal and Infrastructure Assurance Corporation, where he served as its Chief Risk Officer.

Christopher H. Young Assistant Vice President and Chief Financial Officer of National

Christopher H. Young is an Assistant Vice President of MBIA Inc. and holds the position of Chief Financial Officer of National. He was appointed National's Chief Financial Officer in March 2009. Prior to this, Mr. Young worked at MBIA Insurance Corporation from 2001 to 2009, gaining experience in a variety of Structured Finance positions and in Corporate Strategy.

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1. Negative Book Value and Persistent Unprofitability

MBIA faces a fundamental challenge with a significantly negative consolidated book value per share, meaning its total liabilities currently exceed its total assets. For example, as of September 30, 2025, the consolidated book value per share was -$43.17. The company consistently reports GAAP net losses, such as a consolidated GAAP net loss of $8 million for the third quarter of 2025, although this was an improvement from previous periods. This negative equity position is considered a critical red flag, indicating a deep-seated capital problem for a financial guarantee insurer. While MBIA has shown some progress in narrowing losses, sustained profitability remains unassured.

2. Uncertainty and Financial Exposure related to Puerto Rico Electric Power Authority (PREPA)

The lingering uncertainty surrounding MBIA's exposure to the Puerto Rico Electric Power Authority (PREPA) is identified as a major financial risk and a massive, unresolved liability. MBIA's subsidiary, National Public Finance Guarantee Corporation (National), has substantial exposure to PREPA debt, with $425 million in gross par outstanding as of September 30, 2025. The resolution of this exposure is complex, subject to ongoing litigation, and its unclear path could significantly delay final recoveries and lead to substantial future cash outflows. Rating agencies have previously downgraded MBIA due to concerns over these Puerto Rico risks.

3. Losses and Volatility from Zohar Collateralized Debt Obligations (CDOs) and other Structured Finance Exposures

MBIA Insurance Corporation (MBIA Corp), another subsidiary, continues to experience operational and financial risks related to its structured finance portfolio, particularly the Zohar Collateralized Debt Obligations (CDOs). In the third quarter of 2025, MBIA Corp reported a statutory net loss of $25 million, primarily driven by adjustments reflecting lower expected recoveries on paid claims associated with the Zohar CDOs. This indicates that recovery estimates from these legacy exposures are moving against the company, contributing to ongoing volatility in its earnings quality and book value per share.

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MBIA Inc. (MBI) operates primarily in three addressable markets: U.S. municipal bond insurance, structured finance insurance, and asset management services.

U.S. Municipal Bond Insurance

The U.S. municipal bond market, where MBIA provides financial guarantees for municipal bonds, had $4.2 trillion in outstanding debt as of the third quarter of 2024. The amount of municipal bonds insured by the industry, including MBIA, totaled $41.166 billion in 2024, an increase from $31.845 billion in 2023. The insured share of total municipal issuance in the U.S. reached approximately 7.9% from January through June 2025. In 2023, bond insurance accounted for 8.8% of the U.S. municipal bond market. Total municipal bond issuance in 2025 is projected to reach between $575 billion and $600 billion.

Structured Finance Insurance

MBIA's structured finance insurance segment, which includes asset-backed securities and mortgage-backed securities, operates in a global market. The global structured finance market size is projected to increase by $1,128.5 billion, with a compound annual growth rate (CAGR) of 11.9% from 2024 to 2029. Structured finance products constitute approximately 60% of global debt securities.

Asset Management Services

MBIA offers fixed-income asset management services. The global asset management industry's assets under management (AuM) reached a record $128 trillion in 2024. In North America, which dominated the asset management market with a 33.59% revenue share in 2024, the U.S. specifically held an 83.9% revenue share within North America for asset management services in 2024. The U.S. asset management market (in terms of AuM) is valued at $63.28 trillion in 2025 and is forecast to grow to $112.17 trillion by 2030, at a CAGR of 12.13%. The revenue for asset management services in the United States is projected to reach $253.6 billion by 2030, with a CAGR of 21% from 2024 to 2030.

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Expected Drivers of Future Revenue Growth for MBIA (MBI)

For MBIA (MBI), a public company primarily engaged in financial guarantee insurance with a focus on its existing portfolio, the expected drivers of future revenue growth over the next 2-3 years are centered on maximizing value from its in-force business and liabilities, rather than generating new financial guarantee policies.

• Successful Resolution and Monetization of the PREPA Exposure: A significant driver for MBIA's future financial performance is the ongoing resolution and monetization of its exposure related to PREPA (Puerto Rico Electric Power Authority). Recent reports indicate that PREPA-related developments, including the sale of bankruptcy claims and custodial receipts, have reduced risk exposure and generated gains above prior estimates, significantly improving adjusted net income. The lower loss and loss adjustment expense (LAE) at National, primarily related to its PREPA exposure, also contributed to a favorable variance in statutory net income. Continued progress in this area is expected to positively impact recoveries and loss reserves, contributing to improved financial results.
• Maximizing Recoveries from the Existing Insured Portfolio: MBIA's management continues to prioritize portfolio surveillance, remediation, and maximizing recoveries from its existing insured portfolio. While new financial guarantee business is not expected outside of remediation activities, the efficient management and successful recovery efforts on current exposures are crucial for mitigating revenue decline and enhancing the company's overall financial health. This involves actively working to recover value from outstanding guarantees.
• Strategic Asset and Liability Management: The company's adjusted net income has seen favorable changes primarily due to improved recoveries and strategic asset sales. Effective management of its assets and liabilities, including opportunistic sales of certain assets and proactive de-risking of exposures for which reserves are held, can contribute to enhancing financial performance and unlocking value. This strategic approach to its runoff portfolio can positively influence its revenue profile through gains and reduced liabilities.

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Share Repurchases

• As of October 31, 2025, MBIA had $71 million remaining under its existing share repurchase authorization.
• In the first quarter of 2025, MBIA Inc. repurchased $6.97 million in shares.
• During the first quarter of 2020, MBIA Inc. repurchased 8.1 million common shares at an average price of $7.99, and an additional 4.5 million common shares were repurchased through May 4, 2020, at an average price of $7.51.

Share Issuance

• MBIA's shares outstanding increased from 50.4 million in March 2025 to 50.5 million in June 2025, indicating new shares were issued.
• Annually, shares outstanding increased from 50.9 million in December 2023 to 51.0 million in December 2024, indicating share issuance.