MBIA Inc.

Welcome to the MBIA Incorporated third 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, Chelsea. Yes, welcome to MBIA's conference call for our third 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 10K, 10Q, and other SEC filings. as our company's definitive disclosures are incorporated in those documents. We urge investors to read our 10K and 10Qs 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 10K and 10Qs 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 on the MBIA website yesterday. Now for 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 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 McCarran will provide introductory comments, and then a question and answer session will follow. Now here's Bill Fallon. Thanks, Greg.

Good morning, everyone. Thank you for being with us today. As we noted in our third quarter financial results report that we posted on our website yesterday, given the progress resolving our Puerto Rico exposures, We have retained Barclays to explore potential strategic alternatives for the company, including a possible sale of the company. We have not established a timeline for completing this process, and there can be no assurance that the process will result in a particular transaction or other strategic outcome. Also, we do not intend to disclose further developments unless and until we determine that further disclosure is appropriate or necessary. Since our last conference call, the plan of adjustment to restructure the debt of the Puerto Rico Highways and Transportation Authority, or HTA, has been approved by the Title III Court. The effective date for implementing the plan is still pending at this time. When the plan becomes effective, National will receive additional cash and newly issued HTA bonds and intends to make insurance claims payments in full that will its remaining insured exposure of HTA bonds. National's last remaining significant Puerto Rico exposure is PREPA. In September, the Title III Court ordered the Oversight Board to submit a proposed plan of adjustment for PREPA by December 1st. In addition, litigation concerning the nature and extent of PREPA's bondholders' security interest in PREPA's revenues will occur simultaneously. No date has been set for the hearing for this litigation. As of September 30th, National's remaining exposure to PREPA is approximately $710 million of gross par insured. 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 $3.4 billion from year-end 2021 to approximately $33 billion at September 30, 2022. Also, National's leverage ratio gross par to statutory capital declined to 17 to 1 at the end of the third quarter, down from 18 to 1 at year-end 2021. As of September 30, 2022, National had total claims paying resources of $2.9 billion with cash and investments totaling $2.5 billion and salvage unpaid claims of $285 million as per statutory financial reporting. Now, Anthony will provide additional comments about our financial results.