Shares of MBIA Inc. (MBI), one of the largest bond insurers in the world, are up 11 percent to stand at $10.23 in after-hours trading on Monday, after the company reported second-quarter earnings climbed 44%.
For the most recent quarter MBIA posted a profit of $1.3 billion, or $6.32 a share (better than the Thomson Reuters (TRI) consensus of ($0.62)), from $898 million, or $4.30 a share, a year earlier. Revenue more than quadrupled to $992.1 million. MBIA Inc.’s Adjusted Book Value, came in at $35.76 p/sh at June 30, 2010 compared with $36.01 per share at March 31, 2010. Meanwhile, the co.’s adjusted pretax income, which excludes a $1.5 billion derivatives gain and fair-value changes, fell to $14 million from $790 million a year earlier.
“In the second quarter, we saw both our paid losses and new delinquencies on insured RMBS exposures continue to decline,” MBIA Inc. President and CEO Chuck Chaplin said in a statement. “After the quarter’s close, we reduced our exposure to multi-sector CDO-squareds by about 50 percent, and settled a small portion of outstanding putback receivables. The net incurred loss on insured exposures demonstrates that credit stress continues to be a reality, but the volatility of losses appears to be declining.”
Shares of MBIA rose 71 cents, or 7.7 percent, to $9.88 at 5:30 PM EDT in after-hours trading on Monday.