SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: April 8, 1999
Date of Earliest
Event Reported: April 7, 1999
MBIA Inc.
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(Exact name of registrant as specified in its charter)
Connecticut 1-9583 06-1185706
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(State of (Commission File Number) (IRS Employer
Incorporation) Identification No.)
113 King Street, Armonk, New York 10504
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(Address of principal executive offices) (Zip Code)
(914) 273-4545
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(Registrant's telephone number, including area code)
Page 1 of 4
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ITEMS 1-4. Not applicable.
ITEM 5. OTHER EVENTS
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On April 7, 1999, Neil G. Budnick, Chief Financial Officer,
announced an increase to the quarterly loss provision and a one
time pre-tax charge of $152.7 million in the first quarter to
increase unallocated loss reserves.
ITEM 6. Not applicable.
ITEM 7. FINANCIAL STATMENTS AND EXHIBITS
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(c) Exhibits
20.1 MBIA Inc. Press Release dated April 7, 1999.
ITEM 8. Not applicable.
Page 2 of 4
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SIGNATURE
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 hereunto duly authorized.
MBIA Inc.
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(Registrant)
Date: April 8, 1999 By /s/ Neil G. Budnick
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Name: Neil G. Budnick
Title: Chief Financial Officer
and Treasurer
Page 3 of 4
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EXHIBIT INDEX
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Exhibit No. Description
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20.1 MBIA Inc. Press Release
dated April 7, 1999
Page 4 of 4
Joe Krakoviak FOR IMMEDIATE RELEASE
(914) 765-3338
MBIA INCREASES QUARTERLY LOSS PROVISION AND BOLSTERS RESERVES WITH ONE-TIME
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PRE-TAX CHARGE OF $152.7 MILLION TO STRENGTHEN BALANCE SHEET
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ARMONK, N.Y. - April 7, 1999 - MBIA Inc. (NYSE: MBI), holding company for MBIA
Insurance Corporation, the world's leading financial guarantor, said it
completed the previously announced review of unallocated loss reserves and, as a
result, increased its loss-reserve factors. Starting in the first quarter, MBIA
will set aside approximately .04 percent of net debt service written, up from
approximately .02 percent. The new factors are expected to add to loss reserves
on average by approximately $8 million per quarter in 1999. In addition, MBIA
will take a $152.7 million one-time pre-tax charge in the first quarter to
increase unallocated loss reserves to incorporate the new factors on the
existing insured portfolio.
"These steps reflect the results of an update and analysis of our loss-reserve
factors that are based on the latest available industry data - not any increased
concern about the credit quality of our insured portfolio," said Neil G.
Budnick, chief financial officer. "Our study included analysis of the historical
default and recovery experience of relevant sectors of the fixed-income market
and the changing mix of our insured portfolio. Strengthening our
industry-leading balance sheet is consistent with our goals of no-loss
underwriting, maintaining our Triple-A claims-paying rating and building
shareholder value."
MBIA Inc., through its subsidiaries, is the world's preeminent financial
guarantor and a leading provider of specialized financial services. MBIA
provides innovative and cost-effective products and services that meet the
credit enhancement, financial and investment needs of its public and private
sector clients, domestically and internationally. MBIA Insurance Corporation has
a claims-paying rating of Triple-A from Moody's Investors Service, Standard &
Poor's Ratings Services, Fitch IBCA and Japan Rating and Investment Information,
Inc. Please visit MBIA's web site at http://www.mbia.com.
This news release contains forward-looking statements. Important factors such as
general market conditions and the competitive environment could cause actual
results to differ materially from those projected in these forward-looking
statements. The company undertakes no obligation to revise or update any
forward-looking statements to reflect changes in events or expectations.
