By Elinor Comlay
NEW YORK, Nov 9 (Reuters) - Bond insurer MBIA Inc reported a third-quarter loss on Monday on rising writedowns of credit derivatives it insured, sending its shares down nearly 20 percent after the closing bell.
MBIA reported a third-quarter net loss of $727.8 million, or $3.50 a share, down almost 10 percent compared with a net loss of $806.5 million, or $3.42 a share, in the same period a year earlier.
The Armonk, New York-based company had just over 208 million shares outstanding at the end of September, compared with 235.7 million in the same period a year earlier.
'The third quarter's loss is a reminder that the impact of this recession continues to be felt throughout the economy,' said Chief Financial Officer Chuck Chaplin.
A $810.2 million pre-tax unrealized loss on insured credit derivatives made up most of MBIA's loss, while smaller losses from investments and mortgage securitizations also weighed on the company.
MBIA shares initially fell close to 20 percent, but were down 14.6 percent at $4.10 in extended trading. The shares closed up 10.34 percent at $4.80 in trading on the New York Stock Exchange.
MBIA, like its smaller rival Ambac, which reported a more than $2 billion profit last week on accounting gains related to its weakening credit quality, has struggled to write new business since losing its top-notch credit rating last year.
(Reporting by Elinor Comlay; editing by Andre Grenon) Keywords: MBIA/ (elinor.comlay@thomsonreuters.com +1 646 223 6116) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
NEW YORK, Nov 9 (Reuters) - Bond insurer MBIA Inc reported a third-quarter loss on Monday on rising writedowns of credit derivatives it insured, sending its shares down nearly 20 percent after the closing bell.
MBIA reported a third-quarter net loss of $727.8 million, or $3.50 a share, down almost 10 percent compared with a net loss of $806.5 million, or $3.42 a share, in the same period a year earlier.
The Armonk, New York-based company had just over 208 million shares outstanding at the end of September, compared with 235.7 million in the same period a year earlier.
'The third quarter's loss is a reminder that the impact of this recession continues to be felt throughout the economy,' said Chief Financial Officer Chuck Chaplin.
A $810.2 million pre-tax unrealized loss on insured credit derivatives made up most of MBIA's loss, while smaller losses from investments and mortgage securitizations also weighed on the company.
MBIA shares initially fell close to 20 percent, but were down 14.6 percent at $4.10 in extended trading. The shares closed up 10.34 percent at $4.80 in trading on the New York Stock Exchange.
MBIA, like its smaller rival Ambac, which reported a more than $2 billion profit last week on accounting gains related to its weakening credit quality, has struggled to write new business since losing its top-notch credit rating last year.
(Reporting by Elinor Comlay; editing by Andre Grenon) Keywords: MBIA/ (elinor.comlay@thomsonreuters.com +1 646 223 6116) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
