MBIA Inc.

Welcome to the NBIA Inc. Second Quarter 2022 Financial Results Conference Call. I would like to turn the call over to Greg Diamond, Managing Director of Investor and Media Relations at NBIA. Please go ahead, sir.

Thank you, Brendan. Welcome to NBIA's Conference Call for our Second Quarter 2022 Financial Results. After the market closed yesterday, we issued several items on our websites, including our financial results, 10Q, Quarterly Operating Supplement, and Stat Story Financial Statements, MBIA Insurance Corporation, and National Public Finance Guarantee Corporation. We also posted updates to the listings of our insurance companies' 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, 10-Q, and other SEC drawings, as our company's definitive disclosures are incorporated in those documents. We urge investors to read our 10-K and 10-Qs as they contain our most current disclosures of 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-Qs, as well as our financial results report and our quarterly operating supplement. The recorded replay of today's call will become available in approximately two hours to the end of the call, and the information for accessing it is included in last week's precedent 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-Qs, which are available on our website at MVIA.com. The company cautions not to place due 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's Bill Fallon.

Thanks, Greg. Good morning, everyone. Thanks for being with us today. Since our last conference call, the bond restructuring arrangements for the Puerto Rico Highways and Transportation Authority, or HTA, have advanced largely as planned. In July, National received about half of its overall expected recovery on its HTA exposure, while the other half will be paid upon the effective date of HTA's plan of adjustment. The confirmation hearing for that plan is scheduled for August 17th, and subject to its approval, the effective date could be soon after that. National's last significant remaining Puerto Rico exposure is PREPA. Last week, at the mediator's request, the Title III Court approved extending the mediation deadline to August 15th for the party to agree to develop a confirmable plan of adjustment for PREPA, which is being managed by the Puerto Rico Oversight Board. National's exposure to PREPA after its July claims payment is approximately $710 million of gross power. This year's developments regarding the resolution of National's Puerto Rico exposure have reduced the uncertainty of potential outcomes and also improved the transparency regarding National's financial condition. Such progress better affords us the opportunity to pursue our strategic objectives which may include a potential sale of the company and or special distributions from National. Given this progress, we do not believe that it is necessary to fully resolve National's remaining prep exposure to pursue these strategic alternatives. Turning to National's other insured credits, the insured portfolio has continued to perform consistent with our expectations. National's insured portfolio has continued the runoff as its outstanding gross par declined by $1.9 billion from year-end 2021 to $34.6 billion at June 30, 2022. Also, National's leverage ratio of gross par to statutory capital declined to 17 to 1 at the end of the second quarter, down from 18 to 1 at year-end 2022. As of June 30, 2022, nationalized total claims paying resources of $3 billion, with cash and investments totaling $2.3 billion, and salvage on paid claims of $496 million, as per statutory financial reporting. Now, Anthony will provide additional comments about our financial results.