MBIA Inc.

Hello and welcome to the MBIA Inc. Fourth Quarter and Full Year 2021 Financial Results Conference Call. I would now like to turn the call over to Greg Diamond, Managing Director of Investor and Media Relations at MBIA. Please go ahead, sir.

Thank you, Ashley. Welcome to MBIA's conference call for our full year and fourth quarter 2021 financial results. After the market closed yesterday, we issued and posted several items on our websites, including our financial results, 10 , quarterly operating supplement, and statutory financial statements for both NBIA Insurance Corporation and National Public Finance Guarantee Corporation. We also posted updates to the listings of our insurance company's insurance portfolios. Regarding today's call, please note that anything said on the call is qualified by the information provided in the company's 10 and other SEC filings, as our company's definitive disclosures are incorporated in those documents. We urge investors to read our 10-K as it contains our most current disclosures about the company and its financial and operating results. The 10-K also contains information that may not be addressed on today's call. The definitions and reconciliations of the non-GAAP items, terms, excuse me, included in our remarks today are also included in our 10-K as well as our financial results report and our quarterly operating supplement. The recorded replay of today's call will become available approximately two hours after the end of the call and the information for accessing it was included in last week's press announcement and in the financial results report posted yesterday on the MBIE website. Now I'll read our safe harbor disclosure statement. Our remarks on today's conference call may contain forward-looking statements. Important factors such as general market conditions and the competitive environment could cause our actual results to differ materially from the projected results referenced in our forward-looking statements. Risk factors are detailed in our 10-K, which is available on our website at MBIA.com. The company cautions not to place undue reliance on any such forward-looking statements. The company also undertakes no obligation to publicly correct or update any forward-looking statement if it later becomes aware that such statement is no longer accurate. For our call today, Bill Fallon and Anthony McKiernan will provide introductory comments and then a question and answer session will follow. Now, here is Bill Fallon.

Thanks, Greg. Good morning, everyone. Thank you for being with us today. As previously stated, the resolution of our Puerto Rico exposures remains our primary focus. The Puerto Rico General Obligation and Public Building Authority Plan of Adjustment was confirmed by the Title III Court in January. and the Oversight Board has indicated the plan will be effective by March 15th. However, certain parties have requested a stay and we anticipate that Judge Swain will address that request shortly. Meanwhile, the Oversight Board has also made progress regarding the restructuring of the Highway and Transportation Authority debt, recently certifying a fiscal plan for the HTA, which is a prerequisite to filing a plan of adjustment for HTA. Concerning our PREPA exposure, the Oversight Board previously stated its intent to file a plan of adjustment consistent with the long-standing RSA for PREPA. In an effort to reduce further delay in resolving PREPA, National recently submitted to the Title III Court a jointer to the urgent motion of the ad hoc group of PREPA bondholders seeking mediation of the PREPA RSA. During the first quarter of 2022, National sold another $231 million of its bankruptcy claims associated with PREPA, which essentially exhausted the PREPA claims that could currently be sold by National. Combined with the fourth quarter 2021 sale of PREPA bankruptcy claims, National has sold approximately 35% of its PAR claims and monetized a significant portion of its previously reported salvage recovery asset that was associated with PREPA. The sales not only reduced the potential volatility of ongoing remediation risk regarding National's PREPA exposure, but also generated additional investable assets, which will provide National with additional investment income and greater as-of-right dividend capacity. At year end, National had remaining PREPA exposure of $809 million of gross par. As we've stated on previous calls, substantial progress restructuring our Puerto Rico credits will better position us to pursue our strategic objectives, which may include a potential sale of the company and or a request for special distributions from National to NBIA Inc. Turning to National's other insured credits, the insured portfolio has continued to perform consistent with our expectations. The outstanding gross power of National's insured portfolio has further reduced. declining at $36.5 billion at December 31st, 2021, down $5.4 billion from year-end 2020. At December 31st, 2021, National's leverage ratio of gross part of statutory capital was 18 to 1. Now, Anthony will provide additional comments about our financial results.