MBIA Inc.

welcome to the mbia inc first quarter 2023 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 and yes welcome everybody after the market closed yesterday we issued and posted several items on our website including our financial results 10q quarterly operating supplement

and statutory financial statements for both MBIA Insurance Corporation and National Public Finance Guarantee Corporation. We also posted the 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 by the company's 10-K, 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-Qs 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. 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 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 for our safe harbor disclosure. 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 McKernan 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 noted in yesterday's financial results report, given prevailing volatile market conditions and feedback that we received during the pursuit of our strategic alternatives, we have decided to suspend that process. We will continue with our mission to deliver shareholder value by continuing to finalize our PREPA remediation, seeking additional cost reductions, monitoring the runoff of our insurance portfolios, and pursuing regulatory approval of special dividends from National. We also disclosed yesterday that the MBI Inc. Board of Directors has approved a new $100 million share repurchase authorization that can be used by MBI, Inc. and or National. Regarding our first quarter financial results, I'd like to point out that National had positive net income for both GAAP and statutory presentations, which reflects the substantial reduction of uncertainty regarding its remaining Puerto Rico exposure. It also demonstrates the stability of National's financial results, absent significant adjustments to its loss and loss adjustment expenses. During the first quarter, National also sold its Puerto Rico-related investment holdings. Regarding National's last material Puerto Rico exposure, PREPA, while bondholder challenges remain to the plan of adjustment incorporating National's plan support agreement with the Oversight Board, the Title III Court has not modified the timing for the confirmation hearings for the plan, which are scheduled for July. As of March 31st, National's remaining exposure to PREPA is $710 million of gross par insured. The remainder of the insured credits in National's portfolio have continued to perform consistent with our expectations. National's insured portfolio has continued to run off at its outstanding gross par decline by $600 million from year end 2022 to $31 billion at March 31st, 2023. National's leverage ratio of gross part of statutory capital at the end of the quarter remained unchanged from year-end 2022 at 16 to 1. As of March 31st, 2023, National had total claims-taking resources of $2.4 billion and statutory capital and surplus of $1.9 billion. I also want to note that Charlie Reinhart, our board chairman, resigned this week after 15 years of service. I greatly appreciate Charlie's contributions and leadership to MBIA and counsel to me. Now Anthony will provide additional comments about our financial results.