MBIA Inc.

Welcome to the MBIA Incorporated first quarter 2022 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, Gretchen. Welcome to MBIA's conference call for our first quarter 2022 financial results. After the market closed yesterday, we issued and posted several items on our websites, including our financial results, 10Q, 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-K and 10-Q and other SEC filings, as our company's definitive disclosures are incorporated in those documents. We urge investors to read our 10-K and 10-Q as they contain our most current disclosures about the company and its financial and operating results. Those documents also contain information that may not be addressed on today's call. The definitions and reconciliations of the non-GAAP terms included in our remarks today are also included in our 10-K and 10-Q 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 is included in last week's press announcement and in the financial results report posted yesterday on the NBIA website. Now here is 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 and 10-Q, which are available on our website at MVIA.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. Thanks for being with us today. Over the last three months, there has been significant progress in the restructuring of our Puerto Rico credits. On March 15th of this year, the plan of adjustment for the Commonwealth of Puerto Rico became effective. With the implementation of that plan, all of National's insured Puerto Rico General Obligation, or GEO, and Public Building Authority, or PBA, insured exposure has been eliminated. In addition, National received cash, bonds, and contingent value instruments, or CVIs, in exchange for the Puerto Rico GEO and PBA debt that was satisfied by National's insurance claims payments. Last week, The Puerto Rico Oversight Board filed a plan of adjustment for the Puerto Rico Highways and Transportation Authority, or HTA, which resolves $657 million of National's HTA bankruptcy claims. National will receive recovery consideration in the form of cash, HTA CVIs, and possibly new HTA revenue bonds under this plan, which is subject to a proposed confirmation hearing in August of this year. National's other significant remaining Puerto Rico exposure is PREPA. After Puerto Rico's governor terminated the latest restructuring support agreement for PREPA in March, the Title III Court ordered the Puerto Rico Oversight Board to engage in mediation with stakeholders to develop a confirmable plan of adjustment for PREPA. As of March 31st, 2022, National's outstanding insured gross par for PREPA and HTA was approximately $800 million and $600 million, respectively. Turning to National's other insured credits, the insured portfolio has continued to perform consistent with our expectations. National's insured portfolio has continued to run off as its outstanding gross par declined by $1.3 billion from year-end 2021 to $35.2 billion at March 31, 2022. and National's leverage ratio of gross part of statutory capital further declined to 17 to 1 at the end of the first quarter. Over the last few quarters, the sales of our PREPA bankruptcy claims and the resolution of our insured Puerto Rico GEO and PBA exposure have added to National's statutory invested assets and reduced its remaining salvage. For the first quarter of 2022, National statutory investments increased by over $300 million, and its insured salvage reserves decreased by over $280 million from year-end 2021. Under statutory accounting, at March 31, 2022, National had cash and investments totaling $2.2 billion and salvage on paid claims of $661 million. For statutory accounting, the Puerto Rico securities received from the Puerto Rico Commonwealth in exchange for National's GEO and PBA bankruptcy claims, continue to be treated as salvage and are not included in its investment holdings. National also had statutory net income and an increase in statutory capital of approximately $100 million for the first quarter of 2022. As we've stated previously, progress on the restructuring of our Puerto Rico credits positions us to pursue our strategic objectives, which may include a potential sale of the company and or special distributions of National. Given the progress that we have made regarding our Puerto Rico exposure, we do not believe that it is necessary to fully resolve National's remaining PREPA exposure to pursue those strategic alternatives. Now, Anthony will provide additional comments about our financial results.