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MBIA INC. REPORTS 14 PERCENT INCREASE IN 1991 NET INCOME AND FILES FOR 8.2 MILLION SHARE PUBLIC OFFERING

 MBIA INC. REPORTS 14 PERCENT INCREASE IN 1991 NET INCOME
 AND FILES FOR 8.2 MILLION SHARE PUBLIC OFFERING
 ARMONK, N.Y., Jan. 27 /PRNewswire/ -- MBIA, Inc. (NYSE: MBI), the holding company of Municipal Bond Investors Assurance Corporation (MBIA Corporation), reported today that 1991 net income rose 14 percent to $144.7 million. The company also announced it has filed a registration statement with the Securities and Exchange Commission for an offering of 8.2 million shares of common stock, including 1.5 million new shares by MBIA Inc.
 1991 Financial Results.
 The company's fourth quarter net income increased 35 percent to $40.3 million compared with $29.8 million in the same period last year. Net income for 1991 rose 14 percent to $144.7 million compared with $126.6 million a year ago.
 Fourth quarter earnings per share increased 32 percent to $1.03 compared with 78 cents last year. The company's 1991 earnings per share rose 12 percent to $3.74 from $3.33. Year-end book value per share increased 13 percent to $27.58.
 David H. Elliott, president and chief executive officer of MBIA Inc., said, "Nineteen-ninety-one was a very successful year. MBIA posted strong financial and operating results in a challenging economic and business environment. Gross premiums written reached record levels due to the strong growth in new issue municipal volume, greater demand for bond insurance and an increase in refundings as a result of lower interest rates."
 The company noted that its 1991 results included a $17.2 million charge to increase its reserve for estimated losses. The provision includes the effect of a revised approach to reserving for estimated losses on an ongoing basis. The company indicated that based on current levels of new insured business, future annual additions to the reserve could be in the $5 million range.
 MBIA was the leading guarantor of new issue municipal bonds, insuring $17.7 billion of par value in 1991, a 39 percent increase over last year. Based on data from "The Bond Buyer," MBIA had a 35 percent share of the industry total for the year and, as its had in the previous year, insured over 10 percent of all new issue municipal volume.
 Total new issue municipal volume for the year was $171.2 billion, a 34 percent increase over 1990. The insured portion of the 1991 market was a record 29 percent, up from 26 percent last year, representing the largest insured volume in the industry's history.
 MBIA's gross premiums written for the fourth quarter rose 12 percent to $69.3 million compared with $61.7 million a year ago. For the year, gross premiums written totaled $269.2 million, up 27 percent from $211.4 million in 1990.
 Premiums earned during the fourth quarter were $39.4 million, a 47 percent increase over 1990. This included $10.7 million from refundings of previously insured issues compared with $4.4 million in the same period last year. For 1991, premiums earned rose 24 percent to $132.2 million and included $26.4 million from refundings versus $13.3 million last year.
 Net investment income for the quarter increased 14 percent to $34.2 million. For the year, net investment income increased 17 percent to $134.6 million from $115.1 million in 1990. At Dec. 31, 1991, MBIA's investment portfolio totaled $2.0 billion and consisted almost entirely of fixed income securities of diversified maturities having an average quality rating of Double-A.
 Fourth quarter revenues rose 31 percent to $74.6 million compared with $57.0 million in the same period a year ago. For 1991, revenues increased 20 percent to $269.0 million compared with $223.6 million in 1990. Revenues are the sum of earned premiums and net investment and other income.
 Total expenses for the fourth quarter and the year were $21.2 million and $79.3 million, respectively, compared with $18.1 million and $58.2 million in 1990. Excluding additions to loss reserves, expenses for the fourth quarter and 1991 increased 30 percent and 17 percent compared with the respective periods a year ago.
 Computed on a statutory basis, MBIA Corporation's unearned premium reserve as of Dec. 31, 1991, exceeded $1.0 billion. The company's capital base (consisting of capital, surplus and contingency reserve) totalled $963.3 million. Aggregate policyholders' reserves were $2.0 billion compared with $1.8 billion a year ago.
 Stock Offering.
 The stock offering will consist of 1.5 million new shares offered by MBIA Inc. and 6.7 million shares offered by certain MBIA Inc. owners, The Aetna Casualty and Surety Company, The Fund American Companies, affiliates of CIGNA Corporation and Credit Local de France. It is anticipated that 6.6 million of the shares will be offered in the United States and Canada and 1.6 million will be offered internationally. The underwriters will be granted an option by certain holders to purchase up to an additional 1.2 million shares to cover any over-allotments, if any.
 The offering will be made through underwriters led by Donaldson, Lufkin & Jenrette Securities Corporation, New York, and Lehman Brothers, New York. The Jan. 24 closing price of the company's common stock was $46.88.
 Elliott said, "This offering will provide MBIA with additional capital to support future business and will further increase the company's stock market liquidity through greater public ownership."
 As a result of the offering, 33.4 million shares, or 83.5 percent of MBIA Inc., will be publicly-held. Aetna is selling approximately 4.0 million shares, reducing its MBIA Inc. ownership from 20.1 percent to 9.5 percent. Fund American is offering 1.3 million shares, reducing its stake in MBIA from 5.3 percent to 1.9 percent. CIGNA's ownership will decrease from 4.4 percent to 1.6 percent with the sale of approximately 1.0 million shares. Credit Local de France is selling 400,000 shares, reducing its MBIA ownership from 4.7 percent to 3.5 percent.
 If the underwriters exercise their over-allotment option, additional shares will be offered by affiliates of CIGNA (658,000 shares), representing all of its remaining MBIA Inc. shares, Fund American (442,000 shares) and Credit Local de France (130,000 shares).
 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 has a claims-paying rating of Triple-A by Moody's Investors Service, Inc., and Standard & Poor's Corporation and municipal bonds insured by MBIA receive these ratings.
 MBIA Inc.'s registration statement relating to the shares of common stock to be sold in the offering has been filed with the Securities and Exchange Commission, but has not yet become effective. Such shares may not be sold nor may offers to buy be accepted prior to the time that the registration becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of such shares in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualifications under securities laws of any such state. A copy of the prospectus will be available from the underwriters named above.
 MBIA INC AND SUBSIDIARIES
 Consolidated Statements of income
 (Dollars in thousands except per share amounts)
 Periods ended: Three months Year
 Dec. 31: 1991 1990 1991 1990
 Revenues:
 Gross premiums written $69,295 $61,678 $269,206 $211,392
 Ceded premiums 13,820 (9,838) (46,160) (29,924)
 Net premiums written 55,475 51,835 223,046 181,468
 Increase in unearned
 premiums (16,119) (24,973) (90,800) (74,764)
 Premiums earned 39,356 26,862 132,246 106,704
 Net investment income(A) 34,230 29,924 134,573 115,068
 Other income 1,060 183 2,190 1,813
 Total revenues 74,646 56,969 269,009 223,585
 Expenses:
 Provision for losses and
 loss adjustment expenses 4,153 5,000 17,197 5,000
 Policy acquisition costs 6,638 7,218 24,152 23,363
 Increase in deferred
 acquisition costs (2,343) (4,167) (9,673) (11,928)
 Other operating expenses 8,008 5,770 29,036 24,531
 Interest expense 4,716 4,247 18,565 17,283
 Total expenses 21,172 18,068 79,277 58,249
 Income before income taxes 53,474 38,901 189,732 165,336
 Provision for income taxes:
 Current 11,852 8,723 34,282 29,740
 Deferred 1,306 391 10,760 9,001
 Income tax provision 13,158 9,114 45,042 38,741
 Net income 40,316 29,787 144,690 126,595
 Net income per common share $1.03 $0.78 $3.74 $3.33
 Weighted average number
 of common shares
 outstanding 38,955,850 38,378,194 38,723,055 38,021,783
 (A) -- Includes net
 realized gains
 (losses) 711 (1,332) 2,936 229
 Consolidated Balance Sheets
 (Dollars in thousands except per share amounts
 Dec. 31: 1991 1990
 Investments:
 Fixed maturity securities
 (market value $1,939,130
 and $1,650,908) $1,842,271 $1,634,442
 Short-term investment 93,100 68,242
 Other investments 26,010 21,777
 Total investments 1,961,381 1,724,461
 Cash & cash equivalents 4,427 5,139
 Accrued investment income 37,670 33,374
 Deferred acquisition costs 97,173 88,831
 Goodwill - net 126,502 131,653
 Property and equipment - net 33,480 30,722
 Receivable for investments sold 2,379 50
 Other assets 15,375 10,260
 Total assets $2,278,387 $2,024,490
 Liabilities and Shareholders's Equity
 Liabilities:
 Unearned premiums $858,544 $767,744
 Loss and loss adjustment
 expense reserve 21,173 5,000
 Long-term debt 198,692 200,000
 Current income taxes payable -- 949
 Deferred income taxes 87,967 77,125
 Other liabilities 48,674 41,964
 Total liabilities 1,215,050 1,092,782
 Shareholders' Equity:
 Common stock 39,030 39,030
 Additional paid-in capital 567,505 565,110
 Retained earnings 468,531 349,257
 Cumulative translation adjustment (133) (66)
 Unrealized appreciation
 (depreciation) -- net 159 (2,839)
 Treasury stock (11,755) (18,784)
 Total shareholders equity 1,063,337 931,708
 Total liabilities and
 shareholders equity $2,278,387 $2,024,490
 Book value per share $27.58 $24.35
 MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION CONSOLIDATED
 (Wholly owned subsidiary of MBIA, Inc.)
 Selected Financial Data Computed on a Statutory Basis
 (Dollars in millions)
 Dec. 31: 1991 1990
 Capital and surplus $646.8 $579.3
 Contingency reserve 316.5 261.1
 Capital base 963.3 840.4
 Unearned premium reserve 1,043.4 925.7
 Loss and loss adjustment expense reserve 12.3 --
 Total policyholders' reserves $2,019.0 $1,766.1
 -0- 1/27/92
 /CONTACT: Michael C. Ballinger of MBIA, 914-765-3893/
 (MBI) CO: MBIA Inc. ST: New York IN: FIN SU: ERN OFR


KD-ST -- NY018 -- 3618 01/27/92 10:14 EST
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