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MBIA INC. REPORTS FIRST QUARTER RESULTS

 MBIA INC. REPORTS FIRST QUARTER RESULTS
 ARMONK, N.Y., May 5 /PRNewswire/ -- MBIA Inc. (NYSE: MBI), the


holding company for Municipal Bond Investors Assurance Corporation (MBIA Corporation), today reported that first quarter net income rose 53 percent to $43.2 million compared with $28.2 million in 1991. First quarter earnings per share increased 49 percent to $1.09 compared with $.73 last year. Book value per share rose $1.58 to $29.16, of which $.67 was attributable to the additional common stock sold during the quarter.
 David H. Elliott, president and chief executive officer of MBIA Inc., said, "The large increase in first quarter net income is due to the underlying earnings growth of our core business, strong municipal refunding activity, and the fact that last year's earnings were reduced by $.22 per share as a result of a $12.6 million loss reserve addition."
 Elliott added, "Gross premiums written reached record levels for the quarter as a result of favorable market conditions. Continuing low interest rates and growing infrastructure needs drove new issue municipal volume to an all-time first quarter high. Demand for bond insurance remained very strong leading to a large increase in our unearned premium reserve, a source of future earnings."
 New issue municipal volume was $49.7 billion, a 61 percent increase over 1991. The insured portion was 29 percent of new issue volume versus 27 percent in last year's first quarter. Insured municipal volume was $14.5 billion, an increase of 77 percent from a year ago.
 MBIA insured $5.2 billion of new issue long-term municipal bonds in the first quarter compared with $2.7 billion a year ago, an increase of 93 percent. Based on data from The Bond Buyer, MBIA was the leading insurer, accounting for 35 percent of the insured municipal bond market.
 Gross premiums written by MBIA for the first quarter rose 91 percent to $72.7 million compared with $38.1 million a year ago.
 Premiums earned were $38.8 million, up 26 percent from $30.6 million in the comparable 1991 period. Premiums earned during the first quarter include $10.7 million from refundings of previously insured issues, compared with $5.5 million in last year's first quarter.
 Net investment income for the quarter rose 14 percent to $36.0 million, due primarily to the increase in invested assets from operating cash flow. At March 31, 1992, MBIA's aggregate investment portfolio exceeded $2.1 billion and consisted almost entirely of fixed income securities of diversified maturities. The average quality of fixed income investments in the portfolio remained Double-A.
 First quarter revenues were $75.4 million, 21 percent higher than a year ago. Total revenues are the sum of premiums earned and net investment and other income.
 Total expenses were $19.2 million, down from $26.9 million in the first quarter of 1991. The company added $1.1 million in the first quarter of 1992 to its loss reserve, consistent with the company's ongoing reserving methodology. Excluding additions to loss reserves, expenses for the quarter increased 27 percent, reflecting increased expense recognition from refundings and higher other operating expenses including those for new products.
 Computed on a statutory basis, MBIA Corporation's consolidated unearned premium reserve as of March 31, 1992 was $1.1 billion and its capital base (consisting of capital, surplus and contingency reserves) was $1.0 billion. Aggregate policyholders' reserves were $2.1 billion, up over $300 million from $1.8 billion a year ago.
 MBIA Inc., through its wholly owned subsidiary, MBIA Corporation, is a leading insurer of municipal bonds, including new issues and bonds traded in the secondary market. MBIA Corporation has a claims-paying rating of Triple-A from Moody's Investors Service, Inc. and Standard & Poor's Corporation and municipal bonds insured by MBIA receive these ratings.
 MBIA INC. AND SUBSIDIARIES
 Consolidated Statements of Income
 (Unaudited, dollars in thousands except per share amounts)
 Three months ended March 31 1992 1991
 Revenues:
 Gross premiums written $ 72,701 $ 38,107
 Ceded premiums (8,210) (4,822)
 Net premiums written 64,491 33,285
 Increase in unearned premiums (25,740) (2,644)
 Premiums earned 38,751 30,641
 Net investment income(A) 35,966 31,486
 Other income 641 200
 Total revenues 75,358 62,327
 Expenses:
 Provision for losses and
 loss adjustment expenses 1,093 12,642
 Policy acquisition costs 8,132 6,630
 Increase in deferred
 acquisition costs (3,512) (3,343)
 Other operating expenses 8,793 6,541
 Interest expense 4,661 4,389
 Total expenses 19,167 26,859
 Income before income taxes 56,191 35,468
 Provision for income taxes:
 Current 12,449 4,823
 Deferred 529 2,431
 Income tax provision 12,978 7,254
 Net income $ 43,213 $ 28,214
 Net income per common share $ 1.09 $ 0.73
 Weighted average number of
 common shares outstanding 39,672,142 38,532,584
 (A) -- Includes net realized
 gains (losses): $1,134 ($531)
 Consolidated Balance Sheets
 (dollars in thousands except per share amounts)
 3/31/92 3/31/91
 Assets
 Investments:
 Fixed maturity securities
 (market value $2,026,389
 and $1,710,830) $1,972,606 $1,687,338
 Short-term investments 96,871 64,777
 Other investments 38,972 12,012
 Total investments 2,108,449 1,764,127
 Cash and cash equivalents 8,095 2,897
 Accrued investment income 36,971 31,216
 Deferred acquisition costs 100,685 90,842
 Goodwill - net 125,219 130,585
 Property and equipment - net 34,383 30,784
 Receivable for investments sold 4,931 6,295
 Other assets 18,790 16,884
 Total assets $2,437,523 $2,073,630
 Liabilities and Shareholders' Equity
 Liabilities:
 Unearned premiums $ 884,284 $ 770,388
 Loss and loss adjustment
 expense reserve 22,266 17,642
 Long-term debt 198,717 198,615
 Current income taxes payable 6,374 3,410
 Deferred income taxes 88,415 79,556
 Payable for investments purchased 31,533 24,436
 Other liabilities 35,486 29,113
 Total liabilities 1,267,075 1,123,160
 Shareholders' Equity:
 Common stock 40,530 39,030
 Additional paid-in capital 636,462 565,996
 Retained earnings 504,660 371,858
 Cumulative translation
 adjustment (551) (718)
 Unrealized (depreciation) - net (973) (8,210)
 Treasury stock (9,680) (17,486)
 Total shareholders' equity 1,170,448 950,470
 Total liabilities and
 shareholders' equity $2,437,523 $2,073,630
 Book value per share $ 29.16 $ 24.80
 MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION CONSOLIDATED
 (Wholly owned subsidiary of MBIA Inc.)
 Selected Financial Data Computed on a Statutory Basis (Unaudited):
 (dollars in millions)
 3/31/92 3/31/91
 Capital and surplus $ 712.5 $ 572.7
 Contingency reserve 334.2 272.6
 Capital base 1,046.7 845.3
 Unearned premium reserve 1,072.1 937.6
 Loss and loss adjustment
 expense reserve 14.2 12.6
 Total policyholders'
 reserves $ 2,133.0 $ 1,795.5
 -0- 5/5/92
 /CONTACT: Michael C. Ballinger of MBIA, 914-765-3893/
 (MBI) CO: MBIA Inc. ST: New York IN: FIN SU: ERN


TS -- NY013 -- 6374 05/05/92 08:58 EDT
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Publication:PR Newswire
Date:May 5, 1992
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