Profile: MBIA Inc (MBI.N)
17 May 2019
MBIA Inc. (MBIA), incorporated on November 12, 1986, is a holding company. The Company, through its subsidiaries, is engaged in the financial guarantee insurance businesses in the industry. MBIA manages its business within three segments: United States (U.S.) public finance insurance; corporate, and international and structured finance insurance. Its U.S. public finance insurance business is primarily operated through National Public Finance Guarantee Corporation (National). Its corporate segment is operated through MBIA Inc. and several of its subsidiaries, including its service company, MBIA Services Corporation (MBIA Services). Its international and structured finance insurance business is primarily operated through MBIA Insurance Corporation and its subsidiaries (MBIA Corp.).
U.S. public finance insurance
The U.S. public finance insurance business is conducted through National. The financial guarantees issued by National provide unconditional and irrevocable guarantees of the payment of the principal of, and interest or other amounts owing on, insured obligations when due or, in the event National has exercised, at its discretion, the right to accelerate insured obligations upon default or otherwise. National's guarantees insure municipal bonds, including tax-exempt and taxable indebtedness of the United States political subdivisions, as well as utilities, airports, healthcare institutions, higher educational facilities, student loan issuers, housing authorities and other similar agencies and obligations issued by private entities. Municipal bonds and privately issued bonds used for the financing of public purpose projects are generally supported by taxes, assessments, user fees or tariffs related to the use of these projects, lease payments or other types of revenue streams.
International and Structured Finance Insurance
The international and structured finance insurance segment is principally conducted through MBIA Corp. The financial guarantees issued by MBIA Corp. generally provide unconditional and irrevocable guarantees of the payment of principal of, and interest or other amounts owing on, non-United States public finance and global structured finance insured obligations when due, or in the event MBIA Corp. has the right, at its discretion, to accelerate insured obligations upon default or otherwise. MBIA Corp. insures debt obligations of other affiliates, including MBIA Inc., MBIA Global Funding, LLC (GFL), MBIA Investment Management Corp. (IMC) and LaCrosse Financial Products, LLC. MBIA Corp. insures non-United States public finance and global structured finance insured obligations, including asset-backed obligations. MBIA Corp. has insured sovereign-related and sub-sovereign bonds, utilities, privately issued bonds used for the financing of projects that include toll roads, bridges, airports, public transportation facilities, and other types of infrastructure projects serving a substantial public purpose. Global structured finance and asset-backed obligations are securities repayable from cash flows generated by a specified pool of assets, such as residential and commercial mortgages, insurance policies, consumer loans, corporate loans and bonds, trade and export receivables, and leases for equipment, aircraft and real estate property.
The corporate segment consists of general corporate activities, including providing general support services to MBIA's other operating businesses and asset and capital management. General support services are provided by the Company's service company, MBIA Services. MBIA Services provides various support services, including management, legal, accounting, treasury, information technology, and insurance portfolio surveillance.
1 Manhattanville Rd Ste 301
PURCHASE NY 10577-2100