11-K 1 0001.txt Y/E 1999 11-K (PROFIT) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K (X) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended December 31, 1999 or ( ) TRANSITION REPORTS PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from __________ to __________ Commission File No. 1-9583 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: MBIA INC. EMPLOYEES PROFIT SHARING AND 401 (K) SALARY DEFERRAL PLAN B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: MBIA Inc. 113 King Street Armonk, N. Y. 10504 MBIA INC. EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 1999 AND 1998 MBIA INC. EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN FINANCIAL STATEMENTS INDEX Pages -------- Report of Independent Accountants 2 Financial Statements: Statements of Net Assets Available for Plan Benefits as of December 31, 1999 and 1998 3 Statements of Changes in Net Assets Available for Plan Benefits for the years ended December 31, 1999 and 1998 4 Notes to Financial Statements 5-11 Supplemental Schedule 27A 12 Signatures 13 Schedules other than those listed above have been omitted since they are either not required or not applicable. 1 REPORT OF INDEPENDENT ACCOUNTANTS TO THE PARTICIPANTS AND ADMINISTRATOR OF MBIA INC. EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN: In our opinion, the accompanying statements of net assets available for plan benefits and the related statements of changes in net assets available for plan benefits present fairly, in all material respects, the net assets available for benefits of MBIA Inc. Employees Profit Sharing and 401 (K) Salary Deferral Plan (the "Plan") at December 31, 1999 and December 31, 1998, and the changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Plan's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets held for investment purposes is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan's management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The schedule of assets held for investment purposes that accompanies the Plan's financial statements does not disclose the historical cost of certain Plan assets held by the Plan trustee. Disclosure of this information is required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. /s/ PRICEWATERHOUSECOOPERS -------------------------- New York, New York June 16, 2000 2 MBIA INC. EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS December 31, December 31, 1999 1998 ------------ ------------ Assets: Investments, at fair value (cost $90,120,473 and $64,631,291, respectively) $88,772,586 $68,954,922 Participant loans 1,364,852 1,447,835 Employer contribution receivable 26,548 --- ----------- ----------- Total assets 90,163,986 70,402,757 Liabilities: Other liabilities --- 52,032 ----------- ----------- Net assets available for plan benefits $90,163,986 $70,350,725 =========== =========== The accompanying notes are an integral part of the financial statements. 3 MBIA INC. EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS Years ended December 31 ---------------------------- 1999 1998 ---------- ---------- Contributions: Employees' salary deferral $ 6,842,683 $ 3,659,572 Employer 2,281,788 1,944,844 Transfer from 1838 Salary Savings Plan 3,009,973 --- Transfer from CapMAC ESOP Plan 13,976,301 --- Transfer from CapMAC 401(K) Plan --- 8,566,478 Interest and dividends 3,517,721 2,558,488 Net appreciation in fair value of investments (1,350,100) 4,811,394 Benefit distributions (8,465,105) (3,482,156) ----------- ----------- Net increase 19,813,261 18,058,660 Net assets available for plan benefits, beginning of year 70,350,725 52,292,065 ----------- ----------- Net assets available for plan benefits, end of year $90,163,986 $70,350,725 =========== =========== The accompanying notes are an integral part of the financial statements. 4 MBIA INC. EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN NOTES TO FINANCIAL STATEMENTS 1. PLAN DESCRIPTION ------------------- The MBIA Inc. Employees Profit Sharing and 401(K) Salary Deferral Plan (the "Plan") is a defined contribution plan for employees of MBIA Inc. and Subsidiaries (the "Company") who have completed six months of service, are at least 21 years of age, and work a minimum of 21 hours per week. Effective April 1, 1987, a 401(K) deferral feature was implemented enabling eligible participants to defer up to 10% of their total eligible compensation. Matching contributions are made by the Company, in the form of MBIA Inc. common stock, at the rate of 100% of the participant's contribution up to a maximum of 5% of the participant's eligible compensation. Participants may request loans from their accounts in accordance with established guidelines. Loan balances outstanding are reflected as assets of the Plan. Interest income on the loans is recorded as earned. The Plan's assets are managed by Fidelity Management Trust Company ("Fidelity"), the investment advisor, trustee and custodian. The participants of the Plan have the option to direct the investment of their contribution share into one or more of ten Fidelity funds, one Baron Asset Management Company, Inc. ("Baron") fund, one or more of four 1838 Investment Advisors, Inc. ("1838") funds and the Employer Stock Fund. 1838 is a wholly-owned subsidiary of MBIA Inc. Vesting in employer contributions begins after three years of service and full vesting is achieved after five years of service. Participants are fully vested in their salary deferred contributions at all times. Upon reaching the normal retirement date, death or becoming disabled, a participant becomes fully vested in the Company's contributions. Nonvested benefits remaining after termination of employment serve to reduce future Company contributions. In 1999 and 1998, employer contributions were reduced by $23,220 and $76,765, respectively, from forfeited nonvested accounts. A participant is entitled to the benefit that can be provided by the contributions and income thereon, including net realized and unrealized investment gains and losses of each participant's account. Upon retirement, disability, death or termination, a participant or beneficiary can elect to receive a lump-sum distribution, installment distributions or purchase a joint and survivor annuity contract or single life annuity contract. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). Participants should refer to the Summary Plan Description and Plan Document for specific information regarding Plan provisions. 5 MBIA INC. EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN NOTES TO FINANCIAL STATEMENTS (Continued) On February 17, 1998, MBIA Inc. and CapMAC Holdings Inc. ("CapMAC") consummated a merger. Effective the date of the merger, the account balances in the CapMAC 401(K) Plan were transferred to the MBIA Inc. Employees Profit Sharing and 401(K) Salary Deferral Plan. Under MBIA Inc.'s vesting requirements, these employees have received credit for their years of service with CapMAC. On July 31, 1998, MBIA Inc. completed a merger of its investment management business with 1838. Effective January 1, 1999, the account balances in the 1838 Salary Savings Plan were transferred to the MBIA Inc. Employees Profit Sharing and 401(K) Salary Deferral Plan. Under MBIA Inc.'s vesting requirements, these employees have received credit for their years of service with 1838. In July 1999, the CapMAC Employee Stock Ownership Plan ("ESOP") was merged with the Plan. Prior to the merger of the plans, 213,175 ESOP shares were allocated to the CapMAC participants. In conjunction with the merger of the plans, there were 147,364 unallocated ESOP shares remaining that are used to fund the Company's match obligations. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ---------------------------------------------- The financial statements have been prepared on the basis of generally accepted accounting principles (GAAP). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Plan provides for various investment options in any combination of stocks, bonds, fixed income securities, mutual funds, and other investment securities. Investment securities are exposed to various risks, such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants' account balances and the amounts reported in the Statements of Net Assets Available for Plan Benefits. 6 MBIA INC. EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN NOTES TO FINANCIAL STATEMENTS (Continued) Significant accounting policies are as follows: BASIS OF ACCOUNTING The financial statements of the Plan are prepared under the accrual method of accounting. INVESTMENTS The Plan's investments are valued at their current fair values based on last reported sales prices on the last business day of the year. Participant loans are stated at cost plus accrued income, which approximates fair value. Income from investment activities is determined based on the Plan's underlying contribution to the investment classification which is, in turn, based on the investment fund elections of the participants. Gain or loss on the sale of investments is based on specifically identified cost. Interest income from investments is recorded as earned on the accrual basis. Dividend income is recorded on the ex-dividend date. The Plan's net appreciation (depreciation) in the fair value of its investments consists of the realized gains or losses and the unrealized appreciation (depreciation) on those investments. CONTRIBUTIONS Contributions from eligible participants and matching Company contributions are recorded in the month the related payroll deductions are made. PARTICIPANT ACCOUNTS Each participant has an account which is credited with the Company's contribution, employees' contribution and the income (loss) from the investment activities of the participant's account. PAYMENT OF BENEFITS Benefits are recorded when paid. ADMINISTRATIVE EXPENSES Administrative expenses, which consist primarily of investment management, record keeping and auditing fees, are paid directly by the Company rather than out of Plan assets. Employee loan fees are paid out of the participants' accounts. 7 MBIA INC. EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN NOTES TO FINANCIAL STATEMENTS (Continued) 3. PLAN TERMINATION ------------------- The Company has not expressed any intent to discontinue its contributions or terminate the Plan. However, it reserves the right to temporarily suspend contributions to or amend or terminate the Plan. Upon termination of the Plan, the accounts of all participants shall become fully vested, and the net assets of the Plan shall be distributed among the participants and beneficiaries of the Plan in proportion to their respective account balances. 4. INVESTMENTS --------------- Prior to 1999, the Plan's assets were invested in the MBIA Inc. Master Trust (the "Master Trust") together with the assets of the MBIA Inc. Employees Pension Plan. During 1999, the Master Trust was dissolved and the Plan's assets were transferred into a separate trust. As of December 31, 1999, the financial position of the Plan on a cash basis (excluding the ending accrual for employer contributions) in each asset category were as follows: December 31, 1999 --------------------------------- Cost Fair Value -------------- ------------ Employer Stock Fund* $ 24,706,235 $ 20,216,619 ESOP Fund 13,483,220 10,998,903 Fidelity Puritan Fund 1,003,815 955,317 Fidelity Magellan Fund* 4,471,245 4,931,065 Fidelity Growth Company Fund* 4,066,838 6,133,866 Fidelity Growth and Income Portfolio* 15,743,017 16,184,712 Fidelity Intermediate Bond Fund 3,512,395 3,347,159 Fidelity Value Fund 774,108 714,131 Fidelity Overseas Fund 1,879,288 2,343,806 Fidelity Blue Chip Growth Fund* 6,526,273 7,714,054 Fidelity Spartan U.S. Equity Index Fund* 4,527,256 5,283,267 Fidelity Managed Income Fund 4,418,889 4,418,889 Baron Asset Fund 6,135 6,499 1838 International Equity Fund 1,168,617 1,363,871 1838 Small Cap Equity Fund 606,950 604,858 1838 Large Cap Equity Fund 3,121,252 3,451,955 1838 Fixed Income Fund 104,940 103,615 -------------- ------------ $ 90,120,473 $ 88,772,586 ============== ============ Participant Loans 1,364,852 1,364,852 * Each of these investments, at fair value, represents 5% or more of the Plan's net assets at December 31, 1999. 8 As of December 31, 1998, the financial position of the Master Trust on a cash basis (excluding the ending accrual for employer contributions) in each asset category was as follows: December 31, 1998 ------------------------------------- Total Master Trust --------------------------- Plan's Fair % Cost Value Interest ------------ ------------ -------- Investments at fair value as determined by quoted market price: Employer Stock Fund $ 25,197,919 $ 24,705,494 100.00% Fidelity Puritan Fund 2,087,034 2,153,130 43.58 Fidelity Magellan Fund 5,587,461 6,835,328 46.64 Fidelity Growth Company Fund 5,563,113 6,292,964 50.87 Fidelity Growth and Income Portfolio 33,714,612 39,913,846 42.99 Fidelity Intermediate Bond Fund 7,054,960 7,022,758 51.22 Fidelity Value Fund 1,029,183 884,941 62.25 Fidelity Overseas Fund 2,579,615 2,726,259 47.81 Fidelity Blue Chip Growth Fund 8,350,449 9,953,345 61.49 Fidelity Spartan U. S. Equity Index Fund 3,817,399 4,266,375 89.68 Managed Income Portfolio 8,779,948 8,779,948 49.71 ------------ ------------- 60.73 103,761,693 113,534,388 Participant loans 1,671,672 1,671,672 86.61 ------------- ------------- Total invested assets available for benefits of participating plans $105,433,365 $115,206,060 61.11% ============ ============ The Plan's interest in the Master Trust as of December 31, 1998 is presented in the Statement of Net Assets Available for Plan Benefits. For the year ended December 31, 1998 net appreciation in the fair value of investments (determined by quoted market price) of the Master Trust (including investments bought and sold, as well as held during the year) was $10,777,182. Investment income consisting of dividends and interest in the Master Trust for the year ended December 31, 1998, was $4,995,117. 5. CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND ------------------------------------------------------------ For the years ended December 31, 1999 and 1998, the changes in net assets available for Plan benefits of the individual investment funds were as shown on the following page: 9 MBIA INC. EMPLOYEES PROFIT SHARING and 401 (K) SALARY DEFERRAL PLAN NOTES TO FINANCIAL STATEMENTS (Continued)
Year ended December 31, 1999 -------------------------------------------------------------------------- Employer Growth Growth Stock ESOP Puritan Magellan Company and Income Fund Fund Fund Fund Fund Fund ----------- ----------- ----------- ---------- ---------- ---------- Contributions: Employees' salary deferral $ 596,150 $ --- $139,770 $ 386,888 $ 378,534 $ 908,645 Employer 1,767,579 514,209 --- --- --- --- Transfer from 1838 Salary Savings Plan --- --- --- --- --- --- Transfer from CapMAC ESOP Plan --- 13,976,301 --- --- --- --- Interest and dividends 301,789 43,502 79,096 350,757 417,133 1,121,848 Net appreciation (depreciation) in fair value of investments (4,710,583) (2,742,529) (48,246) 492,093 2,174,216 539,136 Benefit distributions (2,408,987) (792,287) (175,217) (476,361) (536,272) (2,104,668) Transfers from (to) other funds 43,757 (293) 21,670 989,460 498,855 (1,439,398) ----------- ----------- ----------- ---------- ---------- ---------- Net increase (decrease) in net assets available for Plan benefits $(4,410,295) $10,998,903 $ 17,073 $1,742,837 $2,932,466 $(974,437) =========== =========== =========== ========== ========== ========== Year ended December 31, 1999 -------------------------------------------------------------------------- Blue Chip Spartan Managed Intermediate Value Overseas Growth U.S. Equity Income Bond Fund Fund Fund Fund Index Fund Portfolio ------------ ----------- ----------- ---------- ----------- --------- Contributions: Employees' salary deferral $ 107,693 $185,415 $ 541,675 $ 556,711 $1,003,227 $ 283,325 Employer --- --- --- --- --- --- Transfer from 1838 Salary Savings Plan --- --- --- --- --- 6,734 Transfer from CapMAC ESOP Plan --- --- --- --- --- --- Interest and dividends 209,839 85,258 138,931 272,013 86,020 222,263 Net appreciation (depreciation) in fair value of investments (177,293) (42,233) 518,654 1,236,488 828,727 --- Benefit distributions (156,240) (77,928) (220,028) (508,768) (433,038) (457,972) Transfers from (to) other funds (234,167) 12,758 61,080 37,598 (27,853) (37) ------------ ----------- ----------- ---------- ----------- --------- Net increase (decrease) in net assets available for Plan benefits $(250,168) $163,270 $1,040,312 $1,594,042 $1,457,083 $ 54,313 ============ =========== =========== ========== =========== ========= Year ended December 31, 1999 ------------------------------------------------------------------------------------ 1838 1838 1838 1838 Baron International Small Cap Large Cap Fixed Participant Asset Equity Equity Equity Income Loans TOTAL ---------- ------------- --------- ---------- -------- ----------- ----------- Contributions: Employees' salary deferral $ 925 $ 565,035 $166,567 $ 977,368 $ 44,485 $ --- $ 6,842,683 Employer --- --- --- --- --- --- 2,281,788 Transfer from 1838 Salary Savings Plan --- 551,235 530,660 1,848,281 38,369 34,694 3,009,973 Transfer from CapMAC ESOP Plan --- --- --- --- --- --- 13,976,301 Interest and dividends --- 59,920 270 11,522 1,548 116,012 3,517,721 Net appreciation (depreciation) i value of investments 364 197,237 (15,853) 401,047 (1,325) --- (1,350,100) Benefit distributions --- (36,185) (3,427) --- --- (77,727) (8,465,105) Transfers from (to) other funds 5,210 26,629 (73,359) 213,467 20,539 (155,916) --- ---------- ------------- --------- ---------- -------- ----------- ----------- Net increase (decrease) in net assets available for Plan benefits $6,499 $1,363,871 $604,858 $3,451,955 $103,616 $(82,937) $19,813,261 ========== ============= ========= ========== ======== =========== ===========
Year ended December 31, 1998 -------------------------------------------------------------------------- Employer Growth Growth Stock ESOP Puritan Magellan Company and Income Fund Fund Fund Fund Fund Fund ----------- ----------- ----------- ---------- ---------- ---------- Contributions: Employees' salary deferral $247,051 $--- $155,725 $ 335,729 $ 371,863 $ 938,935 Employer 1,944,884 --- --- --- --- --- Transfer from CapMAC 401(K) Plan --- --- --- 176,439 892,440 127,944 Interest and dividends 285,387 --- 98,509 144,263 216,081 997,640 Net appreciation (depreciation) in fair value of investments (460,884) --- 37,454 608,897 394,417 2,892,173 Benefit distributions (1,277,753) --- (324,306) (126,975) (204,823) (795,435) Transfers from (to) other funds (11,176) --- 172,169 (89,870) (560,989) (1,937,312) ----------- ----------- ----------- ---------- ---------- ----------- Net increase (decrease) in net assets available for Plan benefits $727,509 $--- $139,551 $1,048,483 $1,108,989 $2,223,945 =========== =========== =========== ========== ========== =========== Year ended December 31, 1998 --------------------------------------------------------------------------- Blue Chip Spartan Managed Intermediate Value Overseas Growth U.S. Equity Income Bond Fund Fund Fund Fund Index Fund Portfolio ------------ ----------- ----------- ---------- ----------- ---------- Contributions: Employees' salary deferral $ 110,285 $155,519 $178,512 $ 479,390 $ 391,685 $ 294,878 Employer --- --- --- --- --- --- Transfer from CapMAC 401(K) Plan 641,050 251,480 295,422 2,389,173 2,818,636 889,770 Interest and dividends 104,682 69,912 23,549 253,057 37,132 207,016 Net appreciation (depreciation) in fair value of investments (6,652) (98,593) 69,930 987,683 386,969 --- Benefit distributions (31,522) (25,330) (35,928) (186,969) (77,953) (354,924) Transfers from (to) other funds 2,113,975 (104,170) (179,078) (225,900) 123,992 568,031 ------------ ----------- ----------- ---------- ----------- ---------- Net increase (decrease) in net assets available for Plan benefits $2,931,818 $248,818 $352,407 $3,696,434 $3,680,461 $1,604,771 ============ =========== =========== ========== =========== ========== Year ended December 31, 1998 ------------------------------------------------------------------------------------ 1838 1838 1838 1838 Baron International Small Cap Large Cap Fixed Participant Asset Equity Equity Equity Income Loans TOTAL ---------- ------------- --------- --------- ------- ----------- ----------- Contributions: Employees' salary deferral $--- $--- $--- $--- $--- $ --- $ 3,659,572 Employer --- --- --- --- --- --- 1,944,884 Transfer from CapMAC 401(K) Plan --- --- --- --- --- 84,124 8,566,478 Interest and dividends --- --- --- --- --- 121,260 2,558,488 Net appreciation (depreciation) in fair value of investments --- --- --- --- --- --- 4,811,394 Benefit distributions --- --- --- --- --- (40,238) 3,482,156 Transfers from (to) other funds --- --- --- --- --- 130,328 --- ---------- ------------- --------- --------- ------- ----------- ----------- Net increase (decrease) in net assets available for Plan benefits $--- $--- $--- $--- $--- $295,474 $18,058,660 ========== ============= ========= ========= ======= =========== ===========
10 6. TAX STATUS ------------- The Internal Revenue Service has advised that the Plan constitutes a qualified plan under Section 401 (a) of the Internal Revenue Code and is therefore exempt from federal income taxes under provisions of Section 501 (a). The Plan obtained its latest determination letter on July 12, 1995 in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. The Plan has been amended since receiving the determination letter. However, the Plan administrator and the Plan's tax counsel believe that the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code. Therefore, they believe that the Plan was qualified and the related Trust was tax-exempt as of the financial statement date. 11 MBIA INC. EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN SUPPLEMENTAL SCHEDULE LINE 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES (1) at December 31, 1999 Description Cost (2) Current Value ------------ --------- ------------- Employer Stock Fund $ 20,216,619 ESOP Fund 10,998,903 Fidelity Puritan Fund* 955,317 Fidelity Magellan Fund* 4,931,065 Fidelity Growth Company Fund* 6,133,866 Fidelity Growth and Income Portfolio* 16,184,712 Fidelity Intermediate Bond Fund* 3,347,159 Fidelity Value Fund* 714,131 Fidelity Overseas Fund* 2,343,806 Fidelity Blue Chip Growth Fund* 7,714,054 Fidelity Spartan U.S. Equity Index Fund* 5,283,267 Fidelity Managed Income Fund* 4,418,889 Baron Asset Fund* 6,499 1838 International Equity Fund* 1,363,871 1838 Small Cap Equity Fund* 604,858 1838 Large Cap Equity Fund* 3,451,955 1838 Fixed Income Fund* 103,615 ------------ $ 88,772,586 Participant Loans ----------------- Loans, at cost 1,364,852 1,364,852 ------------ Total $ 90,137,438 ============ (1) This schedule has been certified as complete and accurate by the Plan trustee. (2) The trustee has informed the Plan's management that it is not possible for the trustee to provide historical cost for the funds. * Fidelity Management Trust Company, 1838 Investment Advisors, Inc., and Baron Asset Management Company, Inc., are parties in interest. See Notes to Financial Statements and Report of Independent Accountants. 12 SIGNATURES ------------ Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized. MBIA Inc. Employees Profit Sharing and 401(K) Salary Deferral Plan Date: June 27, 2000 /s/ KEVIN D. SILVA ---------------- --------------------------- Kevin D. Silva Executive Vice President & CAO Plan Administrator Date: June 27, 2000 /s/ RAM WERTHEIM ---------------- ------------------------ Ram Wertheim General Counsel 13