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MBIA INC. REPORTS 30 PERCENT INCREASE IN 1992 NET INCOME

 ARMONK, N.Y., Feb. 2 /PRNewswire/ -- MBIA Inc. (NYSE: MBI), the holding company for Municipal Bond Investors Assurance Corporation (MBIA Corporation), reported today that 1992 net income rose 30 percent to $188.7 million from $144.7 million in 1991. The company's 1992 earnings per share increased 24 percent to $4.62 from $3.74. Year-end book value per share grew 20 percent to $33.00.
 MBIA's fourth quarter net income increased 21 percent to $48.9 million compared with $40.3 million in the same period in 1991. Fourth quarter earnings per share rose 13 percent to $1.16 compared with $1.03 in 1991.
 David H. Elliott, president and chief executive officer said, "Nineteen ninety-two was an outstanding year for MBIA Inc. The company set records in net income and return on shareholders' equity. In addition, record premium writings increased the company's unearned premium reserve to over one billion dollars, further enhancing future earnings growth."
 "We are very optimistic about the company's outlook for 1993 based on the continuing favorable market environment for municipal new issues and refinancings. The growing recognition of the importance of rebuilding and expanding the nation's infrastructure provides sustained opportunities for growth of MBIA's business," he added.
 New issue municipal financings for 1992 reached a record $233.3 billion, a 35 percent increase over 1991. Insured new issue volume for the year was an all-time high $79.9 billion or 34 percent of municipal volume, up from 30 percent in 1991.
 For the eleventh consecutive year, MBIA was the leading guarantor of new issue municipal bonds, insuring $26.4 billion of par value, a 49 percent increase over 1991. Based on data from The Bond Buyer, MBIA had a 33 percent share of the insured new issue market and set an industry record by insuring over 11 percent of all new issue municipal financings.
 For the fourth quarter of 1992, MBIA's gross premiums written rose 52 percent to $105.3 million compared with $69.3 million in 1991. For the year, gross premiums written totaled $368.7 million, up 37 percent from $269.2 million in 1991.
 Premiums earned during the fourth quarter were $43.1 million, a 9 percent increase over 1991. This included $10.5 million from refundings of previously insured issues compared with $10.7 million in the same period last year. For 1992, premiums earned rose 23 percent to $162.9 million and included $43.1 million from refundings versus $26.4 million in 1991.
 Net investment income (excluding net capital gains) for the quarter increased 23 percent to $41.3 million from $33.5 million in 1991's fourth quarter. For the year, net investment income increased 14 percent to $150.5 million from $131.6 million in 1991. At Dec. 31, 1992, MBIA's investment portfolio totaled $2.5 billion and consisted almost entirely of fixed-income securities. The average quality of fixed-income investments is Double-A.
 Fourth quarter revenues rose 19 percent to $88.9 million compared with $74.6 million in the fourth quarter of 1991. For 1992, revenues increased 22 percent to $327.9 million compared with $269.0 million in 1991. Revenues are the sum of earned premiums and net investment and other income.
 Total expenses for the fourth quarter and the year were $24.6 million and $83.7 million, respectively, compared with $21.2 million and $79.3 million in 1991. Total expenses include loss provisions of $5.6 million and $17.2 million for 1992 and 1991, respectively. Excluding loss provisions, expenses for the fourth quarter and the year increased 34 percent and 26 percent compared with the respective periods in 1991. These increases reflect recognition of higher amounts of previously deferred expenses associated with the growth in earned premiums, higher operating expenses from an expanded book of business and higher interest expense from the company's issuance of additional long-term debt to support future growth.
 Computed on a statutory basis, as of Dec. 31, 1992, MBIA Corporation's unearned premium reserve was $1.2 billion, and its capital base (consisting of capital and surplus and contingency reserve) was $1.3 billion. Aggregate policyholders' reserves rose 27 percent to $2.6 billion compared with $2.0 billion for the prior year.
 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.
 MBIA INC. AND SUBSIDIARIES
 Consolidated Statements of Income
 (Dollars in thousands except per share amounts)
 Periods ended Three Months Year
 Dec. 31 1992 1991 1992 1991
 Revenues:
 Gross premiums written $105,269 $ 69,295 $ 368,732 $ 269,206
 Ceded premiums (8,018) (13,820) (32,588) (46,160)
 Net premiums written 97,251 55,475 336,144 223,046
 Increase in unearned
 premiums (54,162) (16,119) (173,203) (90,800)
 Premiums earned 43,089 39,356 162,941 132,246
 Net investment income 41,320 33,519 150,480 131,638
 Net realized gains 2,631 711 9,834 2,935
 CLASS management fees 914 352 2,505 624
 Other income 987 708 2,153 1,566
 Total revenues 88,941 74,646 327,913 269,009
 Expenses:
 Losses and loss 1,689 4,153 5,619 17,197
 adjustment expenses
 Underwriting and
 operating expenses 10,537 7,436 36,004 27,129
 Policy acquisition costs,
 net 4,791 4,295 18,119 14,479
 Interest expense 6,544 4,716 20,523 18,565
 CLASS operating expenses 1,001 572 3,387 1,907
 Total expenses 24,562 21,172 83,652 79,277
 Income before income
 taxes 64,379 53,474 244,261 189,732
 Provision for income
 taxes 15,467 13,158 55,554 45,042
 Net income $ 48,912 $ 40,316 $ 188,707 $ 144,690
 Net income per
 common share $ 1.16 $ 1.03 $ 4.62 $ 3.74
 Weighted average number of
 common shares
 outstanding 42,028,980 38,955,850 40,806,811 38,723,055
 MBIA INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 (Dollars in thousands except per share amounts)
 12/31/92 12/31/91
 Assets
 Investments:
 Fixed maturity securities (market value
 $2,462,417 and $1,939,130) $2,346,162 $1,842,271
 Short-term investments 121,733 93,100
 Other investments 60,783 26,010
 Total investments 2,528,678 1,961,381
 Cash and cash equivalents 11,226 4,427
 Accrued investment income 47,556 37,670
 Deferred acquisition costs 110,451 97,173
 Goodwill - net 121,348 126,502
 Property and equipment - net 40,255 33,480
 Receivable for investments sold 2,111 2,379
 Other assets 23,171 15,375
 Total assets $2,884,796 $2,278,387
 Liabilities and Shareholders' Equity
 Liabilities:
 Unearned premiums $1,031,747 $ 858,544
 Loss and loss adjustment expense
 reserve(A) 25,510 21,173
 Long-term debt 298,571 198,692
 Current income taxes payable 544 --
 Deferred income taxes 98,369 87,967
 Other liabilities 47,925 48,674
 Total liabilities 1,502,666 1,215,050
 Shareholders' Equity:
 Common stock 41,960 39,030
 Additional paid-in capital 713,762 567,505
 Retained earnings 625,216 468,531
 Cumulative translation adjustment (489) (133)
 Unrealized appreciation - net 3,556 159
 Treasury stock (1,875) (11,755)
 Total shareholders' equity 1,382,130 1,063,337
 Total liabilities and
 shareholders' equity $2,884,796 $2,278,387
 Book value per share $ 33.00 $ 27.58
 (A) -- Includes net case reserves: $14,425 $12,279
 MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION CONSOLIDATED
 (wholly-owned subsidiary of MBIA Inc.)
 Selected Financial Data Computed on a Statutory Basis:
 (dollars in millions)
 12/31/92 12/31/91
 Capital and surplus $ 896.0 $ 646.8
 Contingency reserve 403.9 316.5
 Capital base 1,299.9 963.3
 Unearned premium reserve 1,241.9 1,043.4
 Loss and loss adjustment
 expense reserve 14.4 12.3
 Total policyholders' reserves $2,556.2 $2,019.0
 -0- 2/2/93
 /CONTACT: Michael C. Ballinger of MBIA, 914-765-3893/
 (MBI)


CO: MBIA Inc. ST: New York IN: FIN SU: ERN

TS -- NY011 -- 1697 02/02/93 09:18 EST
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Date:Feb 2, 1993
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