MBIA Rises After Loss Narrower Than Some Estimates

NEW YORK -- MBIA Inc., the ailing bond insurer, rose in New York Stock Exchange trading after saying it will pump $900 million into its insurance unit and reporting a first-quarter loss that was narrower than some analysts' estimates, according to Bloomberg News.

MBIA, whose market value has slumped 87 percent in the past year, gained as much as 9.8 percent as the company reported a net loss of $2.4 billion and an operating loss of $3.01 a share, Bloomberg reported.

The Armonk, New York-based company's net loss, which including $3.58 billion in unrealized losses on derivatives, was less than some analysts had anticipated because its biggest competitor, Ambac Financial Group Inc., said last month that it took $3.1 billion of charges. MBIA also gave capital to its insurance subsidiary and said it has enough money to cover claims from the credit-market seizure that caused the world's biggest banks to record $329 billion in losses, according to Bloomberg.

-- NYSSCPA.org News Staff

Posted on 5/12/08