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MBIA EXPECTS TO RECOVER $10 MILLION FROM EXECUTIVE LIFE BACKED ISSUE

 ARMONK, N.Y., Feb. 10 /PRNewswire/ -- MBIA Inc. (NYSE: MBI) announced today that a recent California Supreme Court ruling clears the way for MBIA to receive recoveries on a defaulted bond issue backed by a guaranteed investment contract (GIC) from Executive Life Insurance Co. of California. The ruling upheld a lower court decision declaring the treatment of GIC-backed bonds as insurance policies.
 As a result of the ruling, MBIA expects recoveries having a present value of approximately $10 million. The company had originally established a loss reserve for this issue of approximately $13 million in the first quarter of 1991. The impact of the recovery will reduce the company's case specific reserve by the amount of the recovery and increase the unallocated portion of its loss reserve by the same amount. Consequently, the recovery will not impact the company's earnings.
 The issue was originally underwritten by Bond Investors Guaranty Insurance Company and became MBIA's obligation when the company acquired BIG in late 1989.
 MBIA Inc., through its wholly-owned subsidiary, MBIA Corporation, is the leading insurer of municipal bonds, including new issues and bonds traded in the secondary market. The company also guarantees asset- backed transactions and high quality obligations offered by qualified financial institutions and provides investment management services for school districts and municipalities. MBIA Corporation has a claims- paying rating of Triple-A from Moody's Investors Service and Standard & Poor's Corporation and all municipal bonds insured by MBIA receive these ratings.
 -0- 2/10/93
 /CONTACT: Michael C. Ballinger of MBIA, 914-765-3893/
 (MBI)


CO: MBIA Inc. ST: New York, California IN: FIN SU:

SM -- NY102 -- 5369 02/10/93 17:03 EST
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Publication:PR Newswire
Date:Feb 10, 1993
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