MBIA Inc. (MBI): Business Model Canvas [Dec-2025 Updated]

You're looking at a company in a unique phase: a full-scale wind-down. Honestly, figuring out the business model for MBIA Inc. isn't about chasing new growth; it's about managing a massive legacy book and resolving complex claims, most notably the Puerto Rico debt overhang. As a former head of analysis at a major asset manager, I see their current canvas as a masterclass in risk mitigation: they're actively managing a $23.2 billion gross par insured portfolio, relying on $354 million in unencumbered cash and liquid assets as of Q3 2025, and their total revenues-just $15 million for Q3 2025-are almost entirely from investment income and run-off premiums. Dive in below to see exactly how this holding company is structuring its key activities and cost base to maximize recovery and return capital to you, the shareholder.

MBIA Inc. (MBI) - Canvas Business Model: Key Partnerships

You're looking at the relationships MBIA Inc. relies on to manage its legacy book and maintain regulatory standing as of late 2025. These aren't just names on a contract; they represent crucial risk management and operational backstops. Here's the breakdown of those key partnerships, grounded in the latest figures.

Co-operation agreement with Assured Guaranty-led bondholder group on Puerto Rico Electric Power Authority (PREPA) debt.

The resolution of National Public Finance Guarantee Corporation's (National) PREPA exposure is a central theme driving partnership interactions. The Q3 2025 results showed a benefit driven by the sale of custodial receipts related to PREPA bankruptcy claims and higher estimated recoveries on remaining exposure. Assured Guaranty's prior interest in an acquisition at the right price confirms the value placed on resolving this exposure.

• National paid gross PREPA claims of $13 million on January 1, 2025.
• National's gross par outstanding stood at $23.2 billion as of September 30, 2025.
• This gross par had declined by $1.0 billion during Q3 2025.
• National's loss and LAE on PREPA for Q2 2025 was $6 million, significantly down from $141 million in Q2 2024.

Financial and legal advisors for complex restructuring and litigation.

While specific advisor fees aren't public in the latest filings, the ongoing need for resolution around PREPA, which CEO William Charles Fallon emphasized as a priority, necessitates constant engagement with legal and financial experts to structure claim transfers and maximize shareholder value. The company's strategy hinges on substantially reducing uncertainty regarding PREPA before a sale can maximize value.

Reinsurers for risk transfer on legacy guaranteed policies.

Risk transfer through reinsurance is embedded in the core revenue calculation for MBIA Insurance Corporation. Net premiums earned are explicitly calculated as gross premiums earned net of premiums ceded to reinsurers. The specific counterparties and the amounts ceded for legacy policies aren't itemized in the high-level summaries, but the mechanism is fundamental to managing the portfolio.

Regulatory bodies (e.g., New York Department of Financial Services) for oversight of insurance subsidiaries.

Both National and MBIA Insurance Corporation operate under the supervision of the New York State Department of Financial Services (NYSDFS). Maintaining the New York State financial guarantee insurance license requires meeting minimum solvency standards.

Entity	Metric	Date	Amount
MBIA Insurance Corporation	Minimum Policyholders' Surplus Required	Ongoing	$65 million
MBIA Insurance Corporation	Statutory Capital	September 30, 2025	$79 million
MBIA Insurance Corporation	Claims-Paying Resources	September 30, 2025	$326 million
National Public Finance Guarantee Corporation	Statutory Capital	June 30, 2025	$914 million
National Public Finance Guarantee Corporation	Claims Paying Resources	June 30, 2025	$1.5 billion

Custodial banks and investment managers for liquid asset portfolio.

Managing the liquid assets is key for meeting obligations and maintaining the holding company's operational flexibility, including the capacity for shareholder actions. The investment managers handle the deployment of these substantial fixed income and cash balances.

• MBIA Inc. total liquidity position as of September 30, 2025: $354 million.
• National's total fixed income investments plus cash and cash equivalents (book/adjusted carrying value) as of September 30, 2025: $1.3 billion.
• MBIA Insurance Corporation's total fixed income investments plus cash and cash equivalents (book/adjusted carrying value) as of September 30, 2025: $150 million.
• National held cash and investments of $1.2 billion as of June 30, 2025.
• Of that, National's cash and cash equivalents/short-term investments as of June 30, 2025, were $201 million.

Finance: draft 13-week cash view by Friday.

MBIA Inc. (MBI) - Canvas Business Model: Key Activities

You're looking at the core engine of MBIA Inc. (MBI) right now, which is less about writing new business and more about disciplined management of what's left on the books. The key activities are all about risk reduction and capital preservation, defintely.

Active management of the $23.2 billion gross par insured portfolio to minimize losses.

This is the heavy lifting, primarily managed through National Public Finance Guarantee Corporation (National). The focus is on surveillance and remediation for the existing book. As of September 30, 2025, National's insured portfolio stood at $23.2 billion of gross par outstanding, which is a reduction of approximately $2.1 billion from year-end 2024. National's leverage ratio improved to 23 to 1 (gross par to statutory capital) by the end of the third quarter.

Here's a quick look at the portfolio and liquidity management figures as of September 30, 2025:

Metric	Value (as of 9/30/2025)	Context
National Gross Par Outstanding	$23.2 billion	Total insured portfolio size
National PREPA Gross Par Exposure	$425 million	Remaining distressed exposure
MBIA Inc. Liquidity	$354 million	Holding company cash and liquid assets
MBIA Insurance Corp. Fixed Income/Cash	$150 million	Subsidiary investment management base

Restructuring and litigation management for distressed exposures, notably PREPA.

Managing the Puerto Rico Electric Power Authority (PREPA) exposure remains a critical, ongoing activity. This involves navigating the Title III bankruptcy and associated litigation, including the restarted administrative expense claims litigation. A major step in de-risking was the August 2025 sale of $374 million in custodial receipts tied to PREPA claims. This action contributed to a statutory losses and loss adjustment expenses (LAE) benefit of $56 million for National in the third quarter of 2025. The remaining gross par exposure to PREPA was reduced to $425 million as of September 30, 2025.

Key litigation and exposure data points include:

• PREPA exposure reduced by 47% in the August 2025 transaction.
• Total divestments related to PREPA since 2021 total $804 million.
• National paid gross claims of $13 million on January 1, 2025, for PREPA defaults.

Investment management of the $354 million corporate liquidity and subsidiary fixed-income portfolios.

The corporate segment, MBIA Inc., must maintain sufficient liquidity to meet holding company obligations. As of September 30, 2025, the holding company's unencumbered cash and liquid assets totaled $354 million. Separately, MBIA Insurance Corporation manages its own assets; its total fixed income investments plus cash and cash equivalents stood at $150 million at the same date. The fair values of these portfolios are sensitive to interest rate changes, which impacts reported results.

Reducing operating expenses, including compensation-related costs.

The company is actively working to keep its overhead low, which directly impacts the bottom line. For instance, in the first quarter of 2025, operating expenses were lower compared to Q1 2024, primarily due to reduced compensation-related costs. For the third quarter of 2025, total expenses were reported at $22 million, contributing to a consolidated GAAP net loss of only $8 million for that quarter, a significant improvement from the $56 million GAAP net loss in Q3 2024.

Executing strategic options, including potential sale of National Public Finance Guarantee Corporation.

Management has signaled readiness to pursue strategic alternatives, which includes the potential sale of the National Public Finance Guarantee Corporation subsidiary. National remains independently capitalized, reporting claims-paying resources of $1.5 billion as of September 30, 2025, and statutory capital of $994 million. The company's overall financial strategy is geared toward maintaining the necessary liquidity to meet all debt service obligations at the holding company level while exploring these exit strategies.

Finance: draft 13-week cash view by Friday.

MBIA Inc. (MBI) - Canvas Business Model: Key Resources

You're looking at the core assets MBIA Inc. relies on to support its remaining obligations, which is a critical view given its legacy business focus. Honestly, the key resources are less about new growth engines and more about the capital buffers and specialized knowledge left in the system.

The financial guarantee operations, primarily through National Public Finance Guarantee Corporation, are anchored by significant statutory resources as of September 30, 2025. These are the hard numbers backing the guarantees.

Resource Category	Entity	Amount as of Q3 2025
Statutory Capital	National Public Finance Guarantee Corporation	$1.0 billion
Claims-Paying Resources (CPR)	National Public Finance Guarantee Corporation	$1.5 billion
Statutory Capital	MBIA Insurance Corporation	$79 million
Claims-Paying Resources (CPR)	MBIA Insurance Corporation	$326 million

The holding company, MBIA Inc., maintains its own liquidity pool, separate from the insurance subsidiaries' statutory capital, which is vital for corporate operations and debt servicing. Here's the quick math on that corporate liquidity:

• Unencumbered cash and liquid assets held by MBIA Inc. totaled $354 million as of September 30, 2025.
• This holding company liquidity was down from $380 million at the end of 2024, mainly due to debt principal and interest payments.
• The corporate segment also held approximately $180 million in assets at market value pledged to guaranteed investment agreement contract holders, which fully collateralized those contracts.

Beyond the balance sheet figures, the intellectual capital is a non-negotiable resource. This isn't something you can easily quantify on a balance sheet, but it's what manages the existing book.

• Specialized legal and financial expertise focused on resolving complex municipal and structured finance claims, such as those related to the Puerto Rico Electric Power Authority (PREPA) exposure and Zohar CDOs.
• MBIA Insurance Corporation must maintain a minimum of $65 million of policyholders' surplus to satisfy its New York State financial guarantee insurance license requirement as of June 30, 2025.
• The company still holds legacy financial guarantee insurance licenses, which are crucial for managing existing business, even if they are largely inactive for writing new business.
• As of September 30, 2025, MBIA Insurance Corporation's insured gross principal amount outstanding (PAR) was $2.1 billion.

Still, you have to remember that the insurance subsidiary's capital position is under pressure; its statutory capital of $79 million at Q3 2025 was $9 million below the year-end 2024 level due to year-to-date net loss. Finance: draft 13-week cash view by Friday.

MBIA Inc. (MBI) - Canvas Business Model: Value Propositions

You're looking at the core promises MBIA Inc. makes to the market, especially as it manages down its legacy exposures. These aren't about new sales; they're about fulfilling existing obligations and maximizing the remaining value for stakeholders.

Credit protection for holders of legacy U.S. public finance and structured finance debt.

The primary value proposition centers on the guarantee provided by National Public Finance Guarantee Corporation. This entity stands behind the debt, offering policyholders assurance even when issuers face stress. As of September 30, 2025, National's claims-paying resources totaled $1.5 billion, ready to cover obligations under its insured portfolio. That portfolio, representing the gross par outstanding that MBIA Inc. is on the hook for, stood at $23.2 billion at that date. This massive amount of guaranteed debt is supported by a statutory capital base of $1.0 billion for National.

Here's a quick look at the statutory strength supporting these guarantees:

Entity/Metric	Value as of September 30, 2025	Context
National Statutory Capital	$1.0 billion	Claims-paying capacity base
National Claims-Paying Resources	$1.5 billion	Total resources available for claims
National Gross Par Outstanding	$23.2 billion	Total insured exposure
National Leverage Ratio (Gross Par/Statutory Capital)	23:1	Ratio of exposure to capital

Orderly wind-down and claims resolution for insured bondholders.

For the MBIA Insurance Corporation entity, which holds a significant portion of the remaining run-off business, the value proposition is about managing the final stages of its obligations. As of September 30, 2025, MBIA Insurance Corp. had statutory capital of $79 million and claims paying resources totaling $326 million. The insured gross par outstanding for this entity was $2.1 billion as of the same date, down from $2.3 billion at year-end 2024. The company's consolidated book value per share as of September 30, 2025, was a negative $43.17.

The focus here is on managing the remaining book through specific actions:

• The company commenced the process of dissolving MBIA México, S.A. de C.V. ("MBIA Mexico") during the first nine months of 2025.
• MBIA Mexico returned approximately $12 million of capital to MBIA Corp. during the nine months ended September 30, 2025.
• There were no purchases of MBIA Inc. shares during the third quarter of 2025.

Maximizing recovery value from distressed assets like the Puerto Rico exposure.

The financial results for the third quarter of 2025 clearly show the impact of recovery efforts on the value proposition. The lower GAAP net loss in Q3 2025 compared to Q3 2024 was primarily driven by a losses and loss adjustment expenses (LAE) benefit associated with Puerto Rico Electric Power Authority (PREPA) exposure at National. This benefit resulted from National's sale of its PREPA-related custodial receipts and higher estimated recoveries on the remaining PREPA exposure. For the nine months ended September 30, 2025, the company reported an Adjusted Net Income of $35 million, a significant improvement from the Adjusted Net Loss of $162 million for the same period in 2024, largely due to this PREPA-related benefit.

Providing a path to return capital to shareholders via dividends or repurchases.

While the focus remains on resolving liabilities, the corporate segment's liquidity position supports potential future capital actions. As of September 30, 2025, MBIA Inc.'s liquidity position, consisting primarily of cash and cash equivalents and liquid invested assets, totaled $354 million. This capital base, along with the capital returned from the MBIA Mexico dissolution-approximately $12 million year-to-date-is what management works to preserve or eventually distribute. You should note that the company made no share repurchases during the third quarter of 2025.

The current share count as of October 31, 2025, was 50,493,626 shares of Common Stock outstanding.

Finance: draft 13-week cash view by Friday.

MBIA Inc. (MBI) - Canvas Business Model: Customer Relationships

You're managing relationships in a highly specialized, legacy environment, so the focus shifts from new sales to diligent management of existing obligations and complex, drawn-out resolutions. The customer base is primarily sophisticated institutional holders of guaranteed debt and regulatory bodies overseeing the wind-down.

Dedicated, high-touch relationship management with major bondholders and institutional investors.

For the most complex exposures, like the Puerto Rico Electric Power Authority (PREPA) debt, direct engagement with key stakeholders is constant. As of the third quarter of 2025 call, executives noted that bondholders representing about 30% of the outstanding PREPA bonds had joined a group in opposition to the current restructuring path. This level of direct, high-stakes engagement is necessary to navigate the final stages of these legacy guarantees.

The nature of the relationship management is defined by the ongoing wind-down status. It's about managing expectations around the resolution timeline for these large, concentrated risks.

Investor Relations for transparent communication on wind-down progress and financial results.

MBIA Inc. maintains a structured cadence for communicating with its broader investor base, which is critical given the company's status. For instance, the third quarter 2025 financial results were released after market close on November 4, 2025, followed by a webcast and conference call on Wednesday, November 5, 2025, at 8:00 a.m. (ET). Greg Diamond, Managing Director of Investor & Media Relations, leads these discussions to ensure transparent updates on the wind-down progress and financial performance. You can find the latest financial results, 10-Q, quarterly operating supplement, and statutory financial statements posted on the company website at https://investor.mbia.com/investor-relations/financial-information/default.aspx.

Here is a snapshot of the financial reporting that informs these investor relationships as of September 30, 2025:

Entity/Metric	Value as of September 30, 2025	Comparison Point
MBIA Inc. Corporate Segment Unencumbered Cash	$354 million	(Q3 2025 Liquidity Position)
MBIA Inc. Common Shares Outstanding	50.5 million	(As of October 31, 2025)
MBIA Insurance Corp. Statutory Capital	$79 million	($9 million below year-end 2024)
National Statutory Capital	$994 million	($82 million up compared with December 31, 2024)

Transactional service for routine claims and policy administration.

Transactional service focuses on the administration of the remaining insured portfolio, which is shrinking. The focus here is on the remaining gross par outstanding and the resources available to cover claims. The routine administration involves processing payments and managing the declining book of business for both core subsidiaries.

• MBIA Insurance Corp. insured gross par outstanding declined to $2.1 billion as of September 30, 2025, from $2.3 billion at year-end 2024.
• National Public Finance Guarantee Corporation's insured gross par outstanding stood at $23.2 billion at September 30, 2025.
• National's leverage ratio of gross par to statutory capital improved to 23:1 at the end of Q3 2025, down from 28:1 at year-end 2024.

Legal and regulatory engagement to manage complex claims and litigation.

Complex claims management is heavily concentrated in the PREPA situation and legacy Zohar-related matters. On January 1, 2025, National paid gross claims of $13 million following the PREPA default. As of March 31, 2025, the insured debt service outstanding related to PREPA was $657 million. Furthermore, the administrative expense claims litigation, which had been stayed, has restarted. The company's engagement with the courts and the Puerto Rico Financial Oversight and Management Board is a primary function of its legal resources.

Claims paying resources for the two main entities reflect the ongoing risk management:

Entity	Claims Paying Resources (CPR) as of September 30, 2025	CPR as of December 31, 2024
MBIA Insurance Corp.	$326 million	$356 million
National Public Finance Guarantee Corp.	$1.5 billion	Consistent with December 31, 2024

The company's official policy is that complete dockets for legal proceedings are publicly accessible by contacting the clerk's office of the respective court, as MBIA Inc. does not post all documents for every proceeding. That's the reality of dealing with these long-tail liabilities.

MBIA Inc. (MBI) - Canvas Business Model: Channels

You're looking at how MBIA Inc. (MBI) gets its critical information out to the market and stakeholders as of late 2025. It's a mix of formal regulatory disclosures and direct engagement, especially given the ongoing legacy issues. Honestly, the channels reflect a company managing down its book while communicating complex legal and financial resolutions.

Direct communication with bondholders and their legal representatives

Direct contact is essential for managing the remaining insured portfolio and addressing specific claims, particularly those tied to complex restructuring processes. Communication flows through dedicated teams, often in coordination with legal counsel, to manage expectations and provide updates on specific bond series or recovery assets. For instance, the ongoing management of the Puerto Rico exposure requires direct, though often adversarial, communication channels.

The company's subsidiary, National Public Finance Guarantee Corporation, remains the direct counterparty for many of these bondholders. As of September 30, 2025, National had $1.0 billion in statutory capital and $1.5 billion in claims-paying resources to back its obligations. The gross par portfolio stood at $23.2 billion.

Key direct communication points include:

• Direct contact by claims administration teams.
• Correspondence with legal counsel for bondholder groups.
• Updates on specific recovery asset monetization efforts.

Public filings (10-Q, 10-K) and earnings calls for investor and market communication

This is the formal backbone of MBIA Inc.'s communication strategy. You see the hard numbers here, which are crucial for valuation, even when the book value per share is negative-it was -$42.22 as of March 31, 2025. The market watches these releases closely for signs of stabilization, such as the Q3 2025 GAAP net loss narrowing to $8 million, or $(0.17) per share, compared to a $56 million loss in Q3 2024.

The Investor Relations department, headed by Managing Director Greg Diamond at +1-914-765-3190, uses these channels to disseminate information. The company posted its Q3 2025 results on its website, https://investor.mbia.com/investor-relations/financial-information/default.aspx, and furnished them to the SEC on a Form 8-K.

Here's a snapshot of the formal reporting cadence and key figures around late 2025:

Filing/Event Type	Date Reference	Key Financial Metric	Value/Amount
Q3 2025 Earnings Call	November 5, 2025	Q3 2025 Revenue	$7 million
Q3 2025 Financial Results	November 4, 2025	Q3 2025 GAAP Net Loss	$8 million
Q2 2025 Financial Results	August 6, 2025	Book Value Per Share (as of 6/30/2025)	-$43.14
2024 10-K Filing	February 27, 2025	2024 Total Revenues	$42 million
Holding Company Liquidity	September 30, 2025	Total Liquidity (Cash & Liquid Assets)	$354 million

The company also uses email alerts and webcasts for these events, such as the Q3 2025 Conference Call webcast on November 5 at 8:00 A.M. ET.

Direct contact through subsidiary claims and policy administration teams

The operational side of the business, managed through subsidiaries like MBIA Insurance Corp, uses its administration teams to interface directly with policyholders and counterparties regarding the existing book of business. This is where the day-to-day management of the remaining $2.1 billion of insured gross par outstanding for MBIA Insurance Corp occurs as of September 30, 2025.

The focus here is on remediation and managing the run-off of the portfolio, not writing new guarantees outside of remediation-related activities.

• Policy administration for existing guarantees.
• Claims processing and recovery asset management.
• Coordination with regulators on subsidiary solvency.

Legal channels for litigation and bankruptcy court proceedings (e.g., Puerto Rico Title III Court)

This is arguably the most critical channel for resolving legacy risks, especially the Puerto Rico exposure. MBIA Inc. actively participates in the Title III bankruptcy court proceedings for various Puerto Rico entities. For example, the company's PREPA exposure is now roughly a third of what it was when PREPA entered Title III.

A significant channel event in 2025 was the August 2025 sale of custodial receipts tied to the PREPA Title III case, which accounted for 47% of National's current bond claims in that case. This divestment is part of a broader strategy that includes total strategic divestments since 2021 amounting to $804 million. Furthermore, National has paid aggregate gross claims of $3.1 billion relating to GO, PBA, PREPA, and HTA bonds through March 31, 2025.

The company also defends itself in other legal venues, such as the COFINA bondholder lawsuit filed in the U.S. District Court for Connecticut, which challenges the 2019 restructuring.

Key legal/litigation channel metrics:

Legal Proceeding/Action	Date/Period Reference	Financial Impact/Metric	Value/Amount
Total Gross Claims Paid (PR Entities)	Through March 31, 2025	Aggregate Claims Paid	$3.1 billion
PREPA Title III De-risking	August 2025 Transaction	Percentage of National's PREPA Claims Sold	47%
Strategic Divestments (since 2021)	As of August 2025	Total Divestment Amount	$804 million
MBIA Insurance Corp Capital	September 30, 2025	Statutory Capital	$79 million

Finance: draft the 13-week cash view by Friday, focusing on liquidity projections given the $354 million cash position as of September 30, 2025.

MBIA Inc. (MBI) - Canvas Business Model: Customer Segments

You're looking at the core groups MBIA Inc. (MBI) serves, which are primarily counterparties to its financial guarantee insurance policies and its own owners. The data reflects the state as of the third quarter of 2025, showing a company heavily focused on managing legacy exposures while maintaining capital strength in its primary insurance subsidiary.

The customer segments are defined by the type of financial guarantee provided by the subsidiaries, mainly National Public Finance Guarantee Corporation (National) and MBIA Insurance Corporation (MBIA Corp.).

• Holders of U.S. public finance debt insured by National (e.g., municipal bond investors).
• Investors holding legacy international and structured finance securities insured by MBIA Insurance Corp.
• Institutional investors and hedge funds focused on distressed municipal debt.
• Shareholders of MBIA Inc. (MBI) seeking capital return.

Holders of U.S. Public Finance Debt Insured by National

This segment consists of investors, often large institutions, holding bonds guaranteed by National. Their primary interest is the security of their principal and interest payments, which National assures. The size of this exposure is tracked by gross par outstanding.

As of September 30, 2025, National's insured portfolio stood at $23.2 billion of gross par outstanding. This is down from $24.2 billion at the end of the second quarter of 2025. To back these guarantees, National reported statutory capital of $1.0 billion and claims-paying resources totaling $1.5 billion as of September 30, 2025. This translates to a leverage ratio of gross par to statutory capital of 23:1 at that date.

Investors Holding Legacy International and Structured Finance Securities

These investors are counterparties to policies issued by MBIA Insurance Corporation (MBIA Corp.), covering non-U.S. public finance and global structured finance obligations. This book is largely legacy business, and its financial health is reflected in MBIA Corp.'s statutory figures.

As of September 30, 2025, MBIA Corp.'s statutory capital was $79 million, with claims-paying resources totaling $326 million. The book value per share for MBIA Insurance Corp. itself was a negative $52.64 as of September 30, 2025. The fixed income investments plus cash and cash equivalents for MBIA Corp. were valued at $150 million at the end of the third quarter of 2025.

Institutional Investors and Hedge Funds Focused on Distressed Municipal Debt

This group is interested in MBIA Inc.'s ongoing management of specific, high-profile credit risks, most notably the Puerto Rico Electric Power Authority (PREPA) exposure. These investors may be creditors, counterparties, or funds looking to trade or resolve these specific distressed assets.

MBIA Inc. actively managed this exposure in 2025. As of the third quarter of 2025, the PREPA exposure was reduced from the sale of $374 million of claims and higher recoveries. The impact of this management was seen in National's Q3 2025 results, which showed a statutory net benefit from losses and loss adjustment expense (LAE) of $56 million, primarily driven by lower PREPA losses. The company is also in discussions with partners like Azure and GoldenTree regarding this exposure.

Shareholders of MBIA Inc. (MBI) Seeking Capital Return

Shareholders are focused on the holding company's liquidity and any potential return of capital, though the consolidated book value per share remains negative. The holding company, MBIA Inc., maintains a separate liquidity pool from the insurance subsidiaries.

As of September 30, 2025, MBIA Inc.'s unencumbered cash and liquid assets totaled $354 million. The consolidated book value per share for MBIA Inc. as of September 30, 2025, was a negative $43.17. The company had 50.5 million common shares outstanding as of October 31, 2025, with $71 million of remaining capacity under its share repurchase authorization. Notably, there were no purchases of MBIA shares during the third quarter of 2025.

Here's a quick look at the key financial metrics tied to the insurance subsidiaries backing the guarantees for the first three quarters of 2025:

Metric (As of Q3 2025 End Date)	National Public Finance Guarantee Corporation	MBIA Insurance Corporation (MBIA Corp.)
Gross Par Outstanding (Q3 End)	$23.2 billion	N/A (Focus on MBIA Corp. Capital)
Statutory Capital	$1.0 billion	$79 million
Claims-Paying Resources	$1.5 billion	$326 million
Book/Adjusted Carrying Value of Investments + Cash	N/A (Data for National not explicitly stated for Q3 end)	$150 million
Consolidated Book Value Per Share (MBI)	Negative $43.17

MBIA Inc. (MBI) - Canvas Business Model: Cost Structure

You're looking at the core outflows that keep MBIA Inc. running, which, as you know, are heavily influenced by legacy liabilities and ongoing corporate management. The cost structure is dominated by claims-related movements, corporate overhead, and servicing the holding company's debt load.

Losses and Loss Adjustment Expenses (LAE) on Insured Claims represent a highly variable, but critical, cost component. For the third quarter of 2025, National Public Finance Guarantee Corporation recorded a statutory losses and LAE net benefit of $56 million, which was driven by adjustments related to its Puerto Rico Electric Power Authority (PREPA) exposure, specifically from the sale of custodial receipts and higher estimated recoveries. However, this benefit was partially offset by statutory losses in LAE of $25 million at MBIA Insurance Corporation for the same quarter, primarily due to adjustments reflecting lower expected recoveries on Zohar CDOs. For the first nine months of 2025, the net cash used by operating activities benefited from lower losses and LAE paid compared to the prior year.

Operating expenses, which include compensation, are under active management. Total consolidated expenses for the third quarter of 2025 were reported at $22 million. Looking at the year-to-date figures for the nine months ended September 30, 2025, total expenses were $80 million, down from $103 million for the same period in 2024. Changes in operating expenses for the three months ended September 30, 2025, were mainly due to shifts in compensation expense tied to the non-qualified deferred compensation plan. This reduction trend was also evident in Q1 2025, where operating expenses were lower, largely due to reduced compensation-related costs.

You can see a snapshot of the key expense movements in the table below, comparing the three months ended September 30, 2025, against the prior year's third quarter:

Expense Category (Three Months Ended Sept 30)	2025 Amount (Millions USD)	2024 Amount (Millions USD)	Percentage Change
Loss and Loss Adjustment Expenses (Statutory - National)	Benefit of $56	Loss of $2	n/m
Interest Expense	$17	$19	-11%
Compensation and Benefits (Corporate Segment)	$0	$8	-100%
Total Expenses (Consolidated GAAP)	$22	$32	-31%

Interest expense on corporate debt obligations is a fixed drain on the holding company's resources. For the three months ended September 30, 2025, interest expense was $17 million, an 11% decrease from the $19 million paid in Q3 2024. Year-to-date interest expense for the nine months ended September 30, 2025, stood at $53 million, slightly down from $55 million in the first nine months of 2024. The total debt on the balance sheet for MBIA Inc. as of September 2025 was $3.34 Billion USD. The reduction in unencumbered cash held by the Corporate segment, which fell to $354 million as of September 30, 2025, from $380 million at the end of 2024, was primarily due to the payment of principal and interest on the corporate segment's debt.

Legal and professional fees are intrinsically linked to managing complex, long-tail risks. While specific, isolated figures for these fees for the full year 2025 aren't immediately available in the latest reports, they are embedded within the broader operating expenses. The risk profile itself points to ongoing costs, as management notes that ongoing administrative expense litigation and the complexity of Puerto Rico's oversight could affect financial resolutions, which directly impacts the cost structure through required professional support. Professional service fees are explicitly listed as a component of operating expenses for the Corporate segment and the International and Structured Finance Insurance segment in segment reporting notes.

Here are the key cost drivers and related figures for the Corporate segment as of September 30, 2025:

• Unencumbered cash and liquid assets held by MBIA Inc. totaled $354 million.
• This cash position was down from $380 million as of December 31, 2024.
• The Corporate segment's total assets were approximately $650 million.
• The nine months ended September 30, 2025, saw an increase in payments to participants of the non-qualified deferred compensation plan.

Finance: draft 13-week cash view by Friday.

MBIA Inc. (MBI) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for MBIA Inc. (MBI) as of late 2025, and honestly, it's a business heavily focused on managing down legacy exposures while generating what income it can from its remaining assets and run-off insurance book. The revenue picture for the third quarter of 2025 definitely tells that story.

The top-line number you need to know for the quarter ending September 30, 2025, is that MBIA Inc. reported total revenues of $15 million. This figure primarily reflects the combined effect of insurance activities and investment performance, which is the core of their remaining operations.

Here's a quick look at how the Q3 2025 results frame that revenue:

Metric	Amount (Q3 2025)	Context
Total Revenues	$15 million	As reported for the quarter ending September 30, 2025.
Adjusted Net Income (Non-GAAP)	$51 million	A significant positive result for the quarter.
GAAP Net Loss	$8 million	The GAAP result for the quarter.
National Statutory Net Income	$73 million	From the National Public Finance Guarantee Corporation subsidiary.

The first major component feeding this revenue is investment income from the fixed-income and liquid asset portfolios. This income is generated across the corporate segment and the National Public Finance Guarantee Corporation subsidiary. You can see the scale of the assets generating this income:

• National Public Finance Guarantee Corporation's total fixed income investments plus cash and cash equivalents stood at a book/adjusted carrying value of $1.3 billion as of September 30, 2025.
• MBIA Insurance Corporation's total fixed income investments plus cash and cash equivalents were valued at $150 million as of September 30, 2025.
• The overall corporate segment unencumbered cash and liquid assets totaled $354 million by the end of Q3 2025.

Next, we look at the net earned premiums from the existing insured portfolio run-off. While the specific premium earned number for Q3 2025 isn't explicitly broken out as a standalone revenue line item in the summary data, it is inherently part of the overall insurance activities contributing to the $15 million total revenue. The portfolio itself is shrinking, with National's gross par outstanding decreasing by $1.0 billion during the quarter, ending at $23.2 billion.

A critical, non-premium revenue driver is recoveries on paid claims and salvage from restructured assets. This shows up in the financial results as a benefit to losses and Loss Adjustment Expenses (LAE). For Q3 2025, National recorded a statutory LAE net benefit of $56 million, largely driven by adjustments to its Puerto Rico Electric Power Authority (PREPA) loss reserves. This was bolstered by prior activity, as the nine months ended September 30, 2025, saw a significant benefit due to National's sale of its PREPA-related custodial receipts and higher estimated recoveries on remaining exposure. Specifically, the PREPA exposure was reduced in Q3 2025 from the sale of $374 million of claims and higher recoveries.

You also see the impact of these recovery activities in earlier periods, such as the Q1 2025 statutory net income of $2 million for MBIA Insurance Corp, which benefited from favorable recoveries related to Zohar CDO claims.

If onboarding takes 14+ days, churn risk rises.

Finance: draft 13-week cash view by Friday.