MBIA Inc.

Welcome to the MBIA, Inc. Second 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, Ashley, and welcome, everybody. 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 MBIA 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 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. 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 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 MVIA website. 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 mbaa.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's Bill Fallon.

Thanks, Greg. Good morning, everyone. Thank you for being with us today. Our principal focus remains on achieving a final resolution of our last material exposure to the Commonwealth of Puerto Rico, the Puerto Rico Electric Power Authority, or PREPA. While we await the filing of the of PREPA's third plan of adjustment, we continue our efforts to deliver shareholder value in other areas, including by reducing expenses, monitoring the runoff of our insurance portfolios, and repurchasing shares. After the MBI, Inc. Board of Directors approved the $100 million share repurchase authorization in May, National and MBI, Inc. have purchased a combined 3 million shares of MBI common stock at an average price of $8.08 per share. which has reduced MBI's outstanding share count to 51.9 million as of July 26, 2023. Seventy-six million dollars remained outstanding from the May authorization. Regarding our second quarter financial results, while National had a modest net loss for the quarter for the first six months of 2023, it maintained positive net income on a GAAP basis and had a modest loss on a statutory basis. The results demonstrate the stability of National's financial results, absent significant adjustments to its losses and loss adjustment expenses. As noted earlier, we remain hopeful the PREP will resolve sooner rather than later. Following the insurance claims payments made by National on July 1st of this year, its remaining exposure to PREP is $610 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 as its outstanding gross par declined by approximately $1.2 billion from year end 2022 to $30.5 billion at June 30th, 2023. National leverage ratio gross part of statutory capital at the end of the second quarter remained unchanged from year end 2022 at 16 to 1. As of June 30, 2023, National had total claims-paying resources of $2.4 billion and statutory capital and surplus of $1.9 billion. In May, our chairman, Charlie Reinhart, retired from the board after 14 years and ate as chairman. I greatly appreciate Charlie's contribution and leadership over those many years. Steve Gilbert, who has been on our board since 2011, was elected as the new chairman. Now, Anthony will provide additional comments about our financial results.