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MBIA INC. REPORTS RECORD FIRST QUARTER EARNINGS

 ARMONK, N.Y., May 4 /PRNewswire/ -- MBIA Inc. (NYSE: MBI), the holding company for Municipal Bond Investors Assurance Corporation (MBIA Corporation), today reported that 1993 first quarter net income rose to $72.7 million and $1.71 per share, representing increases of 68 percent and 57 percent compared with the first quarter of 1992. The company's results included $12.9 million of net income and $0.30 earnings per share from the adoption of mandatory accounting changes. Excluding these effects, net income rose 38 percent to $59.7 million and earnings per share increased 29 percent to $1.41. Book value per share increased to $34.58, a 19 percent increase over last year's first quarter.
 David H. Elliott, president and chief executive officer of MBIA Inc., said, "The company posted record operating and financial results in the first quarter of 1993. Earnings per share were boosted by stronger refunding activity but, more significantly, operating earnings per share excluding refundings grew 20 percent."
 Mr. Elliott added, "Continuing favorable market conditions will likely result in another record year for the municipal bond insurance industry. This year's strong premium writings will enhance the growth of the company's large unearned premium reserve and invested assets, further benefiting earnings in future years."
 New issue municipal volume reached an all-time first quarter high of $64.9 billion, a 30 percent increase over the 1992 first quarter. The insured portion was a record 37 percent versus 29 percent. Insured municipal volume rose to $24.1 billion, an increase of 66 percent from last year's first quarter.
 MBIA insured an industry record $9.7 billion of new issue municipal bonds in the first quarter. This was an 87 percent increase over the $5.2 billion insured in the same period last year. Based on data from The Bond Buyer, MBIA continued to be the nation's leading bond insurer, accounting for 40 percent of the insured municipal bond market.
 Gross premiums written by MBIA for the first quarter rose 35 percent to $98.0 million compared with $72.7 million in the 1992 first quarter.
 Premiums earned were $53.5 million, up 38 percent from $38.8 million in the comparable 1992 period. Premiums earned during the first quarter include $19.9 million from refundings of previously insured issues, compared with $10.7 million in the same period a year ago.
 Net investment income for the quarter, excluding net capital gains, rose 23 percent to $42.7 million. At March 31, 1993, MBIA's aggregate investment portfolio was $2.7 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 $100.3 million, 33 percent greater than a year ago. Total revenues are the sum of premiums earned and net investment and other income.
 Total expenses were $24.9 million, up from $19.2 million in the first quarter of 1992, reflecting increased expense recognition from refundings, higher interest expense from additional long-term debt to support future growth, and operating expenses for new products.
 For the first quarter of 1993, the company recognized expected loss recoveries having a present value of approximately $10 million on a defaulted bond issue backed by a guaranteed investment contract from Executive Life Insurance Co. of California. MBIA originally established a case loss reserve of approximately $13 million for this issue in the first quarter of 1991. As previously announced, the expected recoveries have no impact on earnings, since this reduction in the company's case reserves increased the unallocated portion of total loss reserves by the same amount.
 Effective the first quarter of 1993, the company adopted three changes in accounting standards. The adoption of Statement of Financial Accounting Standard (SFAS) 109 regarding the calculation of deferred income taxes resulted in increases in net income and earnings per share of $13.0 million and $0.30 respectively. The company also adopted SFAS 106 relating to post-retirement employee benefits which resulted in a charge to net income of $0.1 million. Finally, the company adopted SFAS 113 concerning accounting for reinsurance, which had no income statement impact but which increased both assets ("prepaid reinsurance premiums") and liabilities (unearned premium reserve, now relabeled "deferred premium revenue") by $165.2 million and $164.4 million as of March 31, 1993 and Dec. 31, 1992, respectively.
 Computed on a statutory basis, as of March 31, 1993, MBIA Corporation's consolidated unearned premium reserve was $1.3 billion and its capital base (consisting of capital, surplus and contingency reserves) was also $1.3 billion. Aggregate policyholder's reserves of $2.6 billion were up $0.5 billion from $2.1 billion a year ago.
 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
 (Unaudited)
 (Dollars in thousands, except per share amounts)
 Three Months Ended
 March 31
 1993 1992
 Revenues:
 Gross premiums written $ 98,025 $ 72,701
 Ceded premiums (8,836) (8,210)
 Net premiums written 89,189 64,491
 Increase in deferred premium revenue (A) (35,724) (25,740)
 Premiums earned 3,465 38,751
 Net investment income 42,675 34,832
 Net realized gains 2,339 1,134
 CLASS management fees 881 503
 Other income 953 138
 Total revenues 100,313 75,358
 Expenses:
 Losses and loss adjustment expenses 1,537 1,093
 Underwriting and operating expenses 9,487 8,047
 Policy acquisition costs, net 6,163 4,620
 Interest expense 6,719 4,661
 CLASS operating expenses 1,028 746
 Total expenses 24,934 19,167
 Income before income taxes 75,379 56,191
 Provision for income taxes 15,651 12,978
 Income before cumulative effect
 of accounting changes 59,728 43,213
 Cumulative effect of accounting changes 12,923 ---
 Net income $ 72,651 $ 43,213
 Income per common share before
 cumulative effect of accounting changes $ 1.41 $ 1.09
 Net income per common share $ 1.71 $ 1.09
 Weighted average number of
 common shares outstanding 42,409,733 39,672,142
 (A) Formerly labelled increase in unearned premiums.
 MBIA INC. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 (Dollars in thousands, except per share amounts)
 3/31/93 12/31/92 3/31/92
 (Unaudited) (Audited) (Unaudited)
 Assets
 Investments:
 Fixed maturity securities
 (market value $2,640,501,
 $2,462,417 and $2,026,389) $2,473683 $2,346,162 $1,972,606
 Short-term investments 120,490 121,733 96,871
 Other investments 74,278 60,783 38,972
 Total investments 2,668,451 2,528,678 2,108,449
 Cash and cash equivalents 20,816 11,226 8,095
 Accrued investment income 44,138 47,556 36,971
 Deferred acquisition costs 112,794 110,451 100,685
 Prepaid reinsurance premiums 165,154 164,408 162,596
 Goodwill - net 120,081 121,348 125,219
 Property and equipment 42,436 40,255 34,383
 Receivable for investments
 sold 1,036 2,111 4,931
 Other assets 28,477 23,171 18,790
 Total assets $3,203,383 $3,049,204 $2,600,119
 Liabilities and Shareholders' Equity
 Liabilities:
 Deferred premium revenue
 (A) $1,232,626 $1,196,155 $1,046,880
 Loss and loss adjustment
 expense reserves (B) 27,042 25,510 22,266
 Long-term debt 298,598 298,571 198,717
 Current income taxes
 payable 12,342 544 6,374
 Deferred income taxes 88,535 98,369 88,415
 Payable for investments
 purchased 40,774 --- 31,533
 Other liabilities 53,121 47,925 35,486
 Total liabilities 1,753,038 1,667,074 1,429,671
 Shareholders' Equity:
 Common stock 41,960 41,960 40,530
 Additional paid-in capital 714,510 713,762 636,462
 Retained earnings 689,175 625,216 504,660
 Cumulative translation
 adjustment (372) (489) (551)
 Unrealized appreciation
 (depreciation) - net 5,596 3,556 (973)
 Treasury stock (524) (1,875) (9,680)
 Total shareholders' equity 1,450,345 1,382,130 1,170,448
 Total liabilities and
 shareholders' equity $3,203,383 $3,049,204 $2,600,119
 Book value per share $ 34.58 $ 33.00 $ 29.16
 (A) Formerly labelled unearned premiums.
 (B) Includes net case reserves: $7,312 $14,425 $14,169
 MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION CONSOLIDATED
 (wholly-owned subsidiary of MBIA Inc.)
 Selected Financial Data Computed on a Statutory Basis:
 (Dollars in millions)
 3/31/93 12/31/92 3/31/92
 (Unaudited) (Audited) (Unaudited)
 Capital and surplus $ 918.1 $ 896.0 $ 712.5
 Contingency reserve 430.5 403.9 334.2
 Capital base 1,348.6 1,299.9 1,046.7
 Unearned premium reserve 1,288.5 1,241.9 1,072.1
 Loss and loss adjustment
 expense reserves 7.3 14.4 14.2
 Total policyholders'
 reserves $ 2,644.4 $ 2,556.2 $ 2,133.0
 -0- 5/4/93
 /CONTACT: Michael C. Ballinger of MBIA, 914-765-3893/
 (MBI)


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

PS -- NY015 -- 4164 05/04/93 08:58 EDT
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Date:May 4, 1993
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