NEW YORK, March 1 (Reuters) - MBIA Inc, a bond insurer, posted a $242 million shareholder loss in the fourth quarter, after making big payouts on mortgage securities and derivatives.
The company said it posted a quarterly loss of $1.16 a share, compared with a net shareholder loss of $1.2 billion, or $5.21 a share in the same quarter a year earlier.
MBIA realized about $200 million in losses on derivatives it sold, and $661 million in losses on mortgage bonds it insured, on a pre-tax basis.
MBIA suffered during the credit crunch as the declining value of mortgage assets forced the company to write down the value of derivatives positions on its books and triggered payouts.
In 2008, MBIA lost its top credit ratings, cutting into its ability to win new business.
In 2009, the company said it was splitting its municipal bond operations into a new unit to rebuild the business. Banks that bought insurance on mortgage securities are suing MBIA for separating off the muni bond business, which could leave the company with fewer resources to pay on structured securities.
(Reporting by Dan Wilchins) Keywords: MBIA/ (Reuters Messaging: dan.wilchins.reuters.com@reuters.net; +1 646 223 6320) COPYRIGHT Copyright Thomson Reuters 2010. 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.
The company said it posted a quarterly loss of $1.16 a share, compared with a net shareholder loss of $1.2 billion, or $5.21 a share in the same quarter a year earlier.
MBIA realized about $200 million in losses on derivatives it sold, and $661 million in losses on mortgage bonds it insured, on a pre-tax basis.
MBIA suffered during the credit crunch as the declining value of mortgage assets forced the company to write down the value of derivatives positions on its books and triggered payouts.
In 2008, MBIA lost its top credit ratings, cutting into its ability to win new business.
In 2009, the company said it was splitting its municipal bond operations into a new unit to rebuild the business. Banks that bought insurance on mortgage securities are suing MBIA for separating off the muni bond business, which could leave the company with fewer resources to pay on structured securities.
(Reporting by Dan Wilchins) Keywords: MBIA/ (Reuters Messaging: dan.wilchins.reuters.com@reuters.net; +1 646 223 6320) COPYRIGHT Copyright Thomson Reuters 2010. 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.