MBIA Inc. (NYSE:MBI) Shares Tumbles on 4Q10 Results

MBIA Inc. (NYSE:MBI) reports fourth fiscal quarter net gain per share of $2.24 driven by an increase in unrealized gains on derivatives. The company reported fourth fiscal quarter net income of $451 million or $2.24 per share, up 288% from net loss of $240 million or $1.16 per share in the same quarter a year-ago. This result was driven primarily by a $1.1 billion pre-tax unrealized net gain on the fair value of insured derivatives resulting primarily from the reversal of the mark-to-market on commuted transactions Adjusted pre-tax loss of $311 million or $1.56 per share has been posted in the latest quarter, versus the Street loss estimate of $0.27 per share and adjusted pre-tax loss of $541 million in the fourth quarter of 2009. The higher than expected loss was driven primarily by greater RMBS and commercial real estate losses. Total revenue for the quarter was $863.9 million, up 32.38% from $652.6 million in the same period a year-ago. Total premiums earned declined 9% to $144.5 million, while expenses fell 64% to $311.6 million. The Company commuted $15.7 billion of structured finance (payments in line with previously established loss reserves) in the latest quarter and additional $3.3 billion in first quarter of 2011. The reported Book Value per share (BVPS) was $14.18, up 13% quarter over quarter. Operating BVPS (Excluding CDS marks, VIE impact and unrealized gain/losses) was $22.84. On the same basis, National BVPS was $15.69, up 2% quarter over quarter and MBIA Corp. BVPS was $12.53, down 4% quarter over quarter. Adjusted BVPS was $36.81, down 1% quarter over quarter. Qualified statutory capital was up 3.5% quarter over quarter at National and down 11% quarter over quarter at MBIA Corp. Shares of a financial guarantor and provider of specialized financial services went down by 75 cents to $10.30 after the company posted its fourth quarter financial results. Volume of 4.38 million shares has been posted compared to the daily average of 7.02 million shares. The stock has 52 week range of $4.65-$14.96. The market capitalization of the stock stands at $2.04 billion with beta of 2.57. MBIA Inc. (MBIA) provides financial guarantee insurance, as well as related reinsurance, advisory and portfolio services for the public and structured finance markets, and investment management services, including advisory services, on a global basis. Disclaimer: The assembled information distributed by epicstockpicks.com is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. Epicstockpicks.com does expect that investors will buy and sell securities based on information assembled and presented herein. EpicStockPicks.com will not be responsible in any way for or accept any liability for any losses arising from an investor's reliance on or use of information obtained from our website or emails. PLEASE always do your own due diligence, and consult your financial advisor.
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