MBIA Inc.

Welcome to the NBIA Inc. second quarter 2024 financial results conference call. I would now like to turn the conference over to Greg Diamond, Managing Director of Investor and Media Relations at NBIA. Please go ahead, sir.

Thank you, Ashley. As noted, this is NBIA's conference call for our second quarter 2024 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 MVIA 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, 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. 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 supplements. Recorded replay of today's call will become available on the MBIA website approximately two hours after the end of the call. 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 Joe Schackinger 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. Our second quarter 2024 net loss was largely due to National's net loss for the quarter. A significant increase in our PREPA loss reserve was the primary reason for National's net loss. While the First Circuit Court of Appeals decision was good for bondholders, the Oversight Board's reaction to the decision has increased uncertainty regarding a timely resolution for PREPA and its creditors. We believe a consensual resolution is in the best interest of PREPA, PREPA's creditors, and the people of Puerto Rico. However, this will only occur if the oversight board changes its approach and fulfills its responsibilities under PROMESA. PREPA has the ability to repay its creditors. The oversight board does not have the willingness to pay. This must change. Given the range of possible outcomes associated with National's $836 million PREPA bankruptcy claim, We continue to believe that it is necessary to substantially resolve PREPA before we can restart the process to sell the company. Regarding the balance of National's insured portfolio, those credits have continued to perform generally consistent with our expectations. The gross par amount outstanding for National's insured portfolio has declined by approximately $1.4 billion from year end 2023 to $27 billion at the end of the second quarter of this year. National's leverage ratio of gross part of statutory capital was 28 to 1 at the end of the second quarter of 2024. As of June 30, 2024, National had total claims paying resources of $1.6 billion and statutory capital in surplus of approximately $1 billion. Now Joe will provide additional comments about our financial results.