MBIA Inc., based in Armonk, which offers municipal bond insurance, investment management products and municipal and consulting services, had by its own admission a disappointing first quarter, because of losses on insured exposures, losses on sales of investments, and litigation related expenses.
It reported a pre-tax loss for the first quarter of $548 million, compared with adjusted pre-tax income of $25 million for the first quarter of 2011. Net income was $10 million, or 5 cents a share, compared with a loss of $1.3 billion, or $6.37 a share, for the first quarter of last year.
The $158 million in operating expenses in the quarter was considerably above the average for recent quarters because of litigation related expenses. MBIA also said it has sold some assets to build up its cash reserves.
A hearing began May 14 on a legal challenge to New York state”™s approval of MBIA”™s restructuring in 2009. The company said that if the approval is upheld, its National Public Finance Guarantee unit will again be able to write municipal bond insurance.
