MBIA Inc. (MBI) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $265 million, or $ 2.01 a share in the quarter, against a net profit of $82 million, or $0.54 a share in the last year period.
Revenue during the quarter plunged 119.87 percent to $59 million from $297 million in the previous year period. Net premium earned for the quarter declined 21.88 percent or $21 million to $75 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $179 million, or 238.67 percent of premium earned from $158 million or 164.58 percent of premium earned in the last year period. Operating loss for the quarter was $238 million, compared with an operating income of $139 million in the previous year period.
Meanwhile, accident and health insurance division has received net premium of $37 million during the quarter, down 19.57 percent or $9 million from year-ago period.
Net investment income was at $37 million for the quarter, down 7.50 percent or $3 million from year-ago period. Meanwhile, income from fees and commission for the quarter jumped 100 percent or $2 million to $4 million. The company has recorded a gain on investments of $99 million in the quarter compared with a gain of $116 million for the previous year period.
Bill Fallon, MBIA Inc.'s president and chief operating officer said, "We are pleased with the growing acceptance of National as its new business production nearly tripled for 2016 versus last year." Bill added, "Regarding our financial results, while the sale of MBIA UK adversely impacted our consolidated GAAP results, it had no impact on our Combined Operating Income. The reduction in Combined Operating Income was primarily due to additions to our loss reserves and lower premium earnings that resulted from lower refunding activity and our decreasing unearned premiums at National."
Assets, liabilities fall
Total assets decreased 25.03 percent or $3,699 million to $11,137 million on Dec. 31, 2016. On the other hand, total liabilities were at $7,898 million as on Dec. 31, 2016, down 28.94 percent or $3,197 million from year-ago.
Return on assets was negative at 1.89 percent in the quarter against a positive 0.96 percent in the last year period. Return on equity was negative at 8.18 percent in the quarter against a positive 2.19 percent in the last year period.
Investments come down
Investments stood at $5,633 million as on Dec. 31, 2016, down 11.29 percent or $717 million from year-ago. Meanwhile, yield on investments went up 3 basis points to 0.66 percent in the quarter.
Total debt was at $3,280 million as on Dec. 31, 2016, down 2.58 percent or $87 million from year-ago. Shareholders equity stood at $3,239 million as on Dec. 31, 2016, down 13.42 percent or $502 million from year-ago. As a result, debt to equity ratio went up 11 basis points to 1.01 percent in the quarter from 0.90 percent in the last year period.
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