Boston, MA 03/05/2014 (wallstreetpr) – MBIA Inc. (NYSE:MBI) one of the largest bond insurers saw its profits plummet in the fourth quarter by highs of 79% as a result of a decline in premiums as well as wavering lower market-market derivatives gains. The company was heavily affected by litigation cases directed to its mortgage securities that were issued before the economic crisis of 2008. Settlement packages have essentially been eating on the company cash flows.
MBIA Inc. (NYSE:MBI) continues to trade towards lower volatility as a result of termination of commercial mortgage-backed securities estimated to be worth $6 billion. MBIA profit for the fourth quarter came in at lows of $132 million compared to highs of $636 million reported in the same quarter a year ago.
MBIA Financial analysis
MBIA Inc. (NYSE:MBI) registered a pretax loss of $84 million for the fourth quarter compared to an impressive pretax income of $110 million in F2012 Q4. MBIA consolidated pretax loss for the full year clocked in at lows of$452 million as of December 31, 2013 compared to highs of $708 million in 2012
Net income for the full year was down from highs of $1.29 billion or $6.33 per diluted shares registered in F2012 to lows of $250 million or $1.29 per diluted share. MBIA Inc. (NYSE:MBI) buoyed by the reorganization of its insurance business that should start improving any time soon.
The drop in adjusted pretax income was mainly as a result of increased losses and losses in its adjusted expenses on insured exposures. Structured finance and insurance segment of the company reported pretax income of $224 million a massive drop from highs of $715 million reported in the fourth quarter of F2012. This was as a result of an increase in financial guarantee losses as well as lower net gains.
MBIA Inc. (NYSE:MBI) was surging in Tuesday trading session with its shares moving up by 11.41% to close the day at high levels of $14.84.