<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended March 31, 1994
OR
( ) TRANSITION REPORTS PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from __________ to __________
For the Quarter Ended March 31, 1994
Commission File No. 1-9583 I.R.S. Employer Identification No. 06-1185706
MBIA INC.
A Connecticut Corporation
113 King Street, Armonk, N. Y. 10504
(914) 273-4545
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Sections 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes__X__ NO_____
As of April 30, 1994 there were outstanding 41,678,144 shares of
Common Stock, par value $1 per share, of the registrant.
PAGE 1 OF 15
<PAGE>
INDEX
<TABLE>
PART I FINANCIAL INFORMATION
<CAPTION>
PAGE
<S> <S> <C>
Item 1. Financial Statements (Unaudited)
MBIA Inc. and Subsidiaries
Consolidated Balance Sheets - March 31, 1994
and December 31, 1993 (Audited) 3
Consolidated Statements of Income - Three months
ended March 31, 1994 and 1993 4
Consolidated Statement of Changes in Shareholders' Equity
- Three months ended March 31, 1994 5
Consolidated Statements of Cash Flows
- Three months ended March 31, 1994 and 1993 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8 - 13
PART II OTHER INFORMATION, AS APPLICABLE
Item 6. Exhibits and Reports on Form 8-K 14
SIGNATURES 15
</TABLE>
(2)
<PAGE>
MBIA INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands except per share amounts)
<TABLE>
<CAPTION>
March 31, 1994 December 31, 1993
-------------- -----------------
(Unaudited) (Audited)
ASSETS
<S> <C> <C>
Investments:
Fixed maturity securities, at
amortized cost (market value
$3,015,527) $ --- $2,796,699
Fixed maturity securities held as
available-for-sale at market
(amortized cost $2,949,800) 3,029,014 ---
Short-term investments, at amortized
cost (which approximates market value) 97,755 104,205
Other investments 17,308 104,681
---------- ----------
3,144,077 3,005,585
Municipal investment agreement
portfolio, at amortized cost --- 538,751
Municipal investment agreement
portfolio, at market 675,696 ---
---------- ----------
TOTAL INVESTMENTS 3,819,773 3,544,336
Cash and cash equivalents 6,220 2,492
Accrued investment income 53,541 54,794
Deferred acquisition costs 123,425 120,484
Prepaid reinsurance premiums 171,095 170,551
Goodwill (less accumulated amortization
of $32,344 and $31,088) 115,022 116,279
Property and equipment, at cost
(less accumulated depreciation
of $11,475 and $10,734) 44,389 44,115
Receivable for investments sold 4,368 31,903
Other assets 25,540 21,359
---------- ----------
TOTAL ASSETS $4,363,373 $4,106,313
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deferred premium revenue $1,425,462 $1,402,807
Loss and loss adjustment
expense reserves 35,648 33,735
Long-term debt 298,708 298,680
Municipal investment agreements 693,570 493,014
Current income taxes payable 14,040 1,811
Deferred income taxes 130,567 107,881
Payable for investments purchased 28,420 111,279
Other liabilities 57,424 60,748
---------- ----------
TOTAL LIABILITIES 2,683,839 2,509,955
---------- ----------
Shareholders' Equity:
Preferred stock, par value $1 per share;
authorized shares--10,000,000; issued
and outstanding--none --- ---
Common stock, par value $1 per share;
authorized shares--100,000,000;
issued shares--
42,077,387 and 42,074,387 42,077 42,074
Additional paid-in capital 719,453 719,281
Retained earnings 899,905 844,916
Cumulative translation adjustment (624) (1,218)
Unrealized appreciation of investments,
net of deferred income taxes of
$23,479 and $3,813 43,209 7,080
Treasury stock, at cost;
shares--399,243 and 260,243 (24,486) (15,775)
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 1,679,534 1,596,358
---------- ----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $4,363,373 $4,106,313
========== ==========
</TABLE>
The accompanying notes are an integral part of the
consolidated financial statements.
(3)
<PAGE>
MBIA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands except per share amounts)
<TABLE>
<CAPTION>
Three months ended
March 31
-------------------------
1994 1993
---------- ----------
<S> <C> <C>
Revenues:
Gross premiums written $ 84,311 $ 98,025
Ceded premiums (7,798) (8,836)
---------- ----------
Net premiums written 76,513 89,189
Increase in deferred premium revenue (22,061) (35,724)
---------- ----------
Premiums earned (net of ceded
premiums of $7,254 and $8,090) 54,452 53,465
Net investment income 46,884 42,646
Net realized gains 6,370 2,339
Non-insurance revenues 2,218 1,104
Non-insurance net realized losses (617) ---
Other income 320 759
---------- ----------
Total revenues 109,627 100,313
---------- ----------
Expenses:
Insurance:
Losses and loss adjustment expenses 1,925 1,537
Policy acquisition costs, net 5,959 6,163
Operating expenses 9,342 8,917
Non-insurance expenses 2,334 1,035
Interest expense 6,735 6,719
Other expenses 423 563
---------- ----------
Total expenses 26,718 24,934
---------- ----------
Income before income taxes 82,909 75,379
Provision for income taxes 17,168 15,651
---------- ----------
Income before cumulative effect of
accounting changes 65,741 59,728
Cumulative effect of accounting changes --- 12,923
---------- ----------
NET INCOME $ 65,741 $ 72,651
========== ==========
Income per common share before
cumulative effect of accounting change $ 1.56 $ 1.41
NET INCOME PER COMMON SHARE $ 1.56 $ 1.71
========== ==========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
AND COMMON STOCK EQUIVALENTS OUTSTANDING 42,155,023 42,409,733
========== ==========
</TABLE>
The accompanying notes are an integral part of the consolidated
financial statements.
(4)
<PAGE>
MBIA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)
For the three months ended March 31, 1994
(In thousands except per share amounts)
<TABLE>
<CAPTION>
Common Stock Additional Cumulative Unrealized Treasury Stock
-------------- Paid-in Retained Translation Appreciation -------------------
Shares Amount Capital Earnings Adjustment of Investments Shares Amount
------ ------- --------- ---------- ----------- -------------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BALANCE, JANUARY 1, 1994 42,074 $42,074 $719,281 $844,916 $(1,218) $ 7,080 260 $15,775
Treasury shares acquired --- --- --- --- --- --- 147 8,886
Exercise of stock options 3 3 172 84 --- --- (8) (175)
Net income --- --- --- 65,741 --- --- --- ---
Change in foreign currency
translation --- --- --- --- 594 --- --- ---
Change in unrealized
appreciation of investments
net of change in deferred
income taxes of $(19,666) --- --- --- --- --- 36,129 --- ---
Dividends (declared and paid
per common share $.26) --- --- --- (10,836) --- --- --- ---
------ ------- -------- -------- ------- ------- -------- -------
BALANCE, MARCH 31, 1994 42,077 $42,077 $719,453 $899,905 $ (624) $43,209 399 $24,486
====== ======= ======== ======== ======= ======= ======== =======
</TABLE>
The accompanying notes are an integral part of the consolidated
financial statements.
(5)
<PAGE>
MBIA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Three months ended
March 31
----------------------
1994 1993
---------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 65,741 $ 72,651
Adjustments to reconcile net income to net cash
provided by operating activities:
Increase in accrued investment income 1,253 3,418
Increase in deferred acquisition costs (2,941) (2,343)
Increase in prepaid reinsurance premiums (544) (746)
Increase in deferred premium revenue 22,665 36,470
Increase in loss and loss adjustment
expense reserves 1,913 1,532
Depreciation 741 508
Amortization of goodwill 1,256 1,267
Amortization of bond premium, net 1 51
Net realized gains on sale of investments (6,370) (2,339)
Deferred income taxes 3,020 (10,885)
Other, net 9,291 11,833
--------- ---------
Total adjustments to net income 30,285 38,766
--------- ---------
Net cash provided by operating activities 96,026 111,417
--------- ---------
Cash flows from investing activities:
Purchase of fixed maturity securities, net
of payable for investments purchased (342,288) (224,811)
Sale of fixed maturity securities, net of
receivable for investments sold 142,388 112,780
Redemption of fixed maturity securities, net of
receivable for investments redeemed 40,091 42,940
Sale (purchase) of short-term investments, net 1,742 (13,160)
Sale (purchase) of other investments, net 87,956 (10,294)
Purchases for municipal investment agreement
portfolio, net of payable for
investments purchased (460,578) ---
Sales from municipal investment agreement
portfolio, net of receivable for
investments sold 261,642 ---
Capital expenditures, net of disposals (1,008) (2,689)
--------- ---------
Net cash used by investing activities (270,055) (95,234)
--------- ---------
Cash flows from financing activities:
Dividends paid (10,836) (8,805)
Purchase of treasury stock (8,886) ---
Proceeds from issuance of municipal
investment agreements 277,591 ---
Payments for drawdowns of municipal
investment agreements (80,546) ---
Exercise of stock options 434 2,212
--------- ---------
Net cash provided (used) by
financing activities 177,757 (6,593)
--------- ---------
Net increase in cash and
cash equivalents 3,728 9,590
Cash and cash equivalents - beginning of period 2,492 11,226
--------- ---------
Cash and cash equivalents - end of period $ 6,220 $ 20,816
========= =========
Supplemental cash flow disclosures:
Income taxes paid $ 1,818 $ 895
Interest paid:
Long-term debt $ 9,188 $ 9,188
Municipal investment agreements 2,880 ---
</TABLE>
The accompanying notes are an integral part of the consolidated
financial statements.
(6)
<PAGE>
MBIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The accompanying unaudited consolidated financial statements have
been prepared in accordance with the instructions to Form 10-Q
and, accordingly, do not include all of the information and
disclosures required by generally accepted accounting principles.
These statements should be read in conjunction with the
consolidated financial statements and notes thereto included in
the Form 10-K for the year ended December 31, 1993 for MBIA Inc.
and Subsidiaries (the "Company"). The accompanying unaudited
consolidated financial statements have not been audited by
independent accountants in accordance with generally accepted
auditing standards but in the opinion of management such
financial statements include all adjustments, consisting only of
normal recurring adjustments, necessary to summarize fairly the
Company's financial position and results of operations. The
results of operations for the three months ended March 31, 1994
may not be indicative of the results that may be expected for the
year ending December 31, 1994. The December 31, 1993 condensed
balance sheet data was derived from audited financial statements,
but does not include all disclosures required by generally
accepted accounting principles.
2. Dividends Declared
Dividends declared by the Company during the three months ended
March 31, 1994 were $10.8 million.
3. Investments in Debt and Equity Securities
As of March 31, 1994 the Company adopted Statement of Financial
Accounting Standards ("SFAS") 115, "Accounting for Certain
Investments in Debt and Equity Securities." Fixed-income
investments, which were previously carried at amortized cost were
deemed by management to be available-for-sale and therefore are
reported at market value with net unrealized gains reported in
shareholders' equity. The adoption of SFAS 115 resulted in an
increase of $64.8 million in the reported value of the Company's
investment portfolio and an increase in shareholders' equity of
$42.1 million. There was no income statement impact.
(7)
<PAGE>
MBIA INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
1994 AND 1993 - FIRST QUARTER RESULTS
MBIA Inc.'s (the "Company") 1994 first quarter net income and
earnings per share were $65.7 million and $1.56, respectively.
Excluding the effects of accounting changes, first quarter 1994
net income and earnings per share increased 10% and 11%,
respectively, over first quarter 1993. The Company's 1993
results included an extraordinary net income benefit of $12.9
million or $0.30 per share from the adoption of mandatory
accounting changes primarily related to deferred taxes.
Including the accounting changes, first quarter 1994 net income
and earnings per share declined 10% and 9%, respectively.
The Company also measures its performance in terms of core
earnings, which exclude the effects of the relatively less
predictable elements of net premiums earned from refundings and
calls of previously insured issues, realized gains and accounting
changes. Core earnings increased by 17% to $1.27 per share
compared with $1.09 a year ago, reflecting the Company's
continuing ability to produce consistent growth from its
expanding portfolio of insured issues and investment portfolio.
According to The Bond Buyer, long-term new issue municipal bond
volume was $49.8 billion of par value in the first quarter of
1994, down from $67.3 billion in the first quarter of 1993. For
both periods, the insured portion was 37%. In the first quarter
of 1994, the Company's principal operating subsidiary, Municipal
Bond Investors Assurance Corporation ("MBIA Corp."), led the
industry in market share, guaranteeing 35% of the insured long-
term new issue municipal bond volume. In addition, the Company
led the new issue insured structured finance market, with a 35%
share of the market.
With the decline in overall market volume, gross premiums
written by MBIA Corp. decreased 14% to $84.3 million during the
first quarter, from $98.0 million during the first quarter of
1993. New issue and secondary market municipal and asset-backed
premiums, the major components of gross premiums written,
decreased 13% to $76.8 million compared with $87.8 million in the
same period last year. Installment premiums received for
policies issued in prior years, including net amounts assumed
related to the installment business of the Association, were $7.3
million and $6.5 million for the first quarters of 1994 and 1993,
respectively. Gross premiums written also included portfolio
assumptions of $0.2 million and $3.7 million for the first
quarters of 1994 and 1993, respectively.
With the decrease in the volume of gross premiums written,
premiums ceded to reinsurers declined 12% to $7.8 million during
the first quarter of 1994 compared to $8.8 million in the same
period last year. In both the first
(8)
<PAGE>
MBIA INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
quarters of 1994 and 1993, premiums ceded as a percentage of
gross premiums written were constant at 9%.
Net premium writings of $76.5 million for 1994 also decreased
14% from $89.2 million in the same period last year.
Typically, insurance premiums are paid in full at the time the
insurance policy is issued and are earned pro rata over the
period of risk. Premiums are allocated to each bond maturity
based on par amount and are earned on a straight-line basis over
the term of each maturity. Accordingly, the portion of net
premiums earned on each policy in any given year represents a
relatively small percentage of the total net premium received.
The balance represents deferred premium revenue which will be
earned in the future over the remaining life of the bond.
Installment premiums are not recorded as a component of
deferred premium revenues until received and therefore represent
an off-balance sheet value which will contribute to future earned
premiums. As of March 31, 1994, MBIA estimates the present value
of its future stream of payments to be $187.6 million.
Premiums earned in the first quarter increased 2% to $54.5
million from $53.5 million in the first quarter of 1993. This
increase was a result of the growth in deferred premium revenues
from the addition of new business in 1993, partially mitigated by
the decline in earned premiums resulting from lower bond
refundings and calls during 1994.
When an MBIA-insured bond issue is refunded or retired early,
the outstanding liability associated with the refunded or called
portion is extinguished and the remaining deferred premium
revenue is earned immediately, except for any portion which may
be applied as a credit toward the premium charged on the
refunding bond issue if such refunding issue is insured by MBIA
Corp. Earned premiums generated by refunded and called bonds in
the first quarter of 1994 and 1993 were $14.5 million and $19.9
million, respectively. Of these amounts, $8.9 million and $11.2
million, respectively, related to issues for which MBIA Corp.
insured the replacement bonds. The amount of bond refundings and
calls is difficult to predict since it is influenced by a variety
of factors such as prevailing interest rates relative to the
coupon rates of the original issue, the issuer's desire to modify
restrictive covenants and changing requirements under the
Internal Revenue Code.
(9)
<PAGE>
MBIA INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
The Company's total investments were $3.82 billion as of March
31, 1994, including $675.7 million related to the Company's
municipal investment agreement business. Net investment income
(excluding the amount earned on investment agreement assets which
are recorded as a component of non-insurance revenues) increased
10% to $46.9 million in the first quarter of 1994 compared
with $42.6 million in the corresponding period of 1993. The
increase was a result of the growth of invested assets from
continued positive operating cash flows. Average investments
excluding investment agreement assets were $3.01 billion in the
first quarter of 1994 compared with $2.58 billion for the same
period last year. Tax-exempt investments as of March 31,
1994 represented 75% of total investments excluding investment
agreement assets, compared with 70% at December 31, 1993.
Net realized capital gains in the first quarter of 1994
increased to $6.4 million from $2.3 million in the same period of
1993. The Company realized $9.4 million in gains from the
liquidation of its investment in an S&P indexed fund, which was
partially offset by $3.0 of realized losses in its fixed income portfolio.
MBIA has undertaken the development of non-insurance
businesses which capitalize on its core capabilities. In
aggregate for the first quarter 1994, these businesses
contributed $2.2 million, double the first quarter 1993 revenues
of $1.1 million.
MBIA Municipal Investors Services Corporation ("MBIA/MISC")
provides cash management services for local governments, school
districts and similar authorities. As of March 31, 1994
MBIA/MISC had 662 clients and over $2.1 billion of client assets
under management. MBIA/MISC is operating in seven states and
plans to continue its expansion into additional states in the
near term.
In 1993, the Company formed MBIA Investment Management
Corp. ("IMC"), which provides investment vehicles in the form of
investment agreements guaranteed as to principal and interest,
for states, municipalities and municipal authorities. At March
31, 1994, IMC had outstanding investment agreements of $693.6
million. The related assets are invested in high quality
securities and are recorded as a component of the Company's total
investments, exclusive of payables and receivables for
investments not settled.
Municipal investment agreements are recorded as balance
sheet liabilities at the time such agreements are executed. The
liability for a municipal investment agreement is carried at the
principal value of the
(10)
<PAGE>
MBIA INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
obligation plus accrued interest due. Interest expense on
municipal investment agreements is computed daily based upon the
outstanding liability balance at rates specified in the agreements,
and that expense is deducted from the investment income from the
related assets in non-insurance revenues.
The provision for losses and loss adjustment expenses for
the first quarter of 1994 was $1.9 million, compared with $1.5
million in 1993, representing additions to the loss reserves
consistent with the Company's reserve methodology. At March 31,
1994, $22.4 million of the $35.6 million loss and loss adjustment
expense reserve was allocated on a case basis, compared with $7.3
million of the $27.0 million reserve for first quarter-end 1993.
During the first quarter of 1994, the Company's case reserves
increased by $14.9 million of which $13.4 million related to
five issues added to the case specific portion of the total
reserve. None of these issues are in default. The increase in
case reserves had no impact on net income, since the increase in
the Company's case-specific reserve was offset by a corresponding
decrease in the unallocated portion of its general loss reserve.
Other insurance related expenses which are composed of net
policy acquisition costs and operating expenses increased by
almost 2%, paralleling the increase in earned premiums for the
period.
Expenses related to the Company's non-insurance business lines
increased to $2.3 million in the first quarter of 1994 from $1.0
million in the first quarter of 1993 due to the expansion of
these new businesses.
The Company's interest expense was constant at $6.7 million for
the first quarters of 1994 and 1993.
In aggregate, expenses for the first quarter of 1994 increased
by 7% over the first quarter of 1993.
The Company's effective tax rates at 20.7% and 20.8% for the
first quarters of 1994 and 1993, respectively, were virtually
unchanged despite the increase in the Federal corporate tax rate.
This was due principally to the Company's strategy to shift
towards a higher proportion of tax-exempt securities in its
investment portfolio.
During the first quarter of 1994, the Company adopted Statement
of Financial Accounting Standards ("SFAS") 115, "Accounting for
Certain Investments in Debt and Equity Securities." Fixed-income
investments, which were previously carried at amortized cost are
now classified as available-for-sale and reported at market
value. The first quarter 1994 impact of this
(11)
<PAGE>
MBIA INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
change was an increase of $64.8 million in the reported value of
the Company's nvestment portfolio and an increase in
shareholders' equity of $42.1 million, or $1.01 in book value per
share. Changes in the market value of securities classified as
available-for-sale have no income statement impact.
LIQUIDITY AND CAPITAL RESOURCES
The Company's consolidated reported invested assets and cash grew
8% to $3.83 billion at March 31, 1994 from $3.55 billion at year-
end 1993. The increase was due to continued positive operating
cash flow from MBIA Corp.'s insurance premiums, investment
income, an increase in the municipal investment agreement
portfolio and the impact of SFAS 115.
The Company's liquidity is largely dependent upon MBIA Corp.'s
ability to pay dividends to the Company. MBIA Corp.'s net
income, comprised of premium earnings and investment income less
losses, expenses and taxes, is a source of continuing additions
to capital and dividend paying capability. Under New York
insurance law, without prior approval of the Superintendent of
the New York State Insurance Department, MBIA Corp. may pay a
dividend only from earned surplus subject to the maintenance of a
minimum capital requirement, and the dividends in any 12-month
period may not exceed the lesser of 10% of its policyholders'
surplus as shown on its last filed statutory-based financial
statements or adjusted net investment income, as defined, for
such 12-month period. MBIA Corp. paid no dividends in the first
quarter of 1994 and at March 31, 1994 had in excess of $68
million available for payment of further dividends to the Company
without prior approval.
MBIA Corp. has an irrevocable standby line of credit of $575
million with a group of major banks to provide funds for the
payment of claims in the event that severe losses should occur.
The agreement is for a seven-year term expiring on December 31,
2000 but, subject to approval by the banks, the agreement may be
renewed annually to extend the term to seven years beyond the
renewal date. To further facilitate the immediate payment of
claims, should they occur, MBIA Corp. has established lines of
credit totaling $130 million with four other major banks. The
Company also maintains a $25 million revolving line of credit
with a major bank for general corporate purposes. As of March
31, 1994, there were no outstanding borrowings under these
agreements.
(12)
<PAGE>
MBIA INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
MBIA Corp. also maintains a high degree of liquidity within its
investment portfolio in the form of readily marketable high
quality fixed income securities and short-term investments. In
management's opinion, the capital resources of MBIA Corp.,
represented by the liquidity of its investment portfolio, its
cash flow from operations and bank lines of credit are more than
adequate to meet the Company's expected cash requirements.
At March 31, 1994, MBIA Corp. had $22.4 million in case
specific loss reserves. Any related payments are expected to be
funded from operating cash flows.
(13)
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
<TABLE>
<C> <S>
11. Computation of Earnings Per Share Assuming Full Dilution
</TABLE>
(14)
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
MBIA INC.
-----------------------------
Registrant
Date: May 12, 1994 /s/ ARTHUR M. WARREN
---------------------- ----------------------------
Arthur M. Warren
Senior Vice President,
Chief Financial Officer &
Treasurer
Date: May 12, 1994 /s/ JULLIETTE S. TEHRANI
----------------------- -----------------------------
Julliette S. Tehrani
Senior Vice President,
Controller & Assistant Treasurer
(Principal Accounting Officer)
(15)
<PAGE>
EXHIBIT 11
MBIA INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE ASSUMING FULL DILUTION
(In thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
-------------------
March 31
-------------------
1994 1993
-------- --------
<S> <C> <C>
Net income $65,741 $72,651
Fully diluted shares:
Average number of common shares outstanding 41,719 41,900
Assumed exercise of dilutive stock options 436 557
------- -------
42,155 42,458
======= =======
Earnings per share assuming full dilution $ 1.56 $ 1.71
======= =======
</TABLE>
