-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PQcZaWZd6uaW/Im6KH57BAZKQvKz05ufLA5b3RNPExgKH28pkx2rg6omTipI+dFD LMkNkuFkiAP/DT/Zj1yKuQ== 0000814585-99-000005.txt : 19990409 0000814585-99-000005.hdr.sgml : 19990409 ACCESSION NUMBER: 0000814585-99-000005 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990407 ITEM INFORMATION: FILED AS OF DATE: 19990408 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MBIA INC CENTRAL INDEX KEY: 0000814585 STANDARD INDUSTRIAL CLASSIFICATION: SURETY INSURANCE [6351] IRS NUMBER: 061185706 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-09583 FILM NUMBER: 99589393 BUSINESS ADDRESS: STREET 1: 113 KING ST CITY: ARMONK STATE: NY ZIP: 10504 BUSINESS PHONE: 9142734545 MAIL ADDRESS: STREET 1: 113 KING ST CITY: ARMONK STATE: NY ZIP: 10504 8-K 1 PRESS RELEASE OF 4/7/99 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 --------------- Form 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report: April 8, 1999 Date of Earliest Event Reported: April 7, 1999 MBIA Inc. ----------------------------------------------------- (Exact name of registrant as specified in its charter) Connecticut 1-9583 06-1185706 -------------- ------------------------ ------------ (State of (Commission File Number) (IRS Employer Incorporation) Identification No.) 113 King Street, Armonk, New York 10504 - -------------------------------------------------- ---------- (Address of principal executive offices) (Zip Code) (914) 273-4545 --------------------------------------------------- (Registrant's telephone number, including area code) Page 1 of 4 ITEMS 1-4. Not applicable. ITEM 5. OTHER EVENTS ------------ On April 7, 1999, Neil G. Budnick, Chief Financial Officer, announced an increase to the quarterly loss provision and a one time pre-tax charge of $152.7 million in the first quarter to increase unallocated loss reserves. ITEM 6. Not applicable. ITEM 7. FINANCIAL STATMENTS AND EXHIBITS -------------------------------- (c) Exhibits 20.1 MBIA Inc. Press Release dated April 7, 1999. ITEM 8. Not applicable. Page 2 of 4 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MBIA Inc. ------------------------------ (Registrant) Date: April 8, 1999 By /s/ Neil G. Budnick --------------- ------------------------------- Name: Neil G. Budnick Title: Chief Financial Officer and Treasurer Page 3 of 4 EXHIBIT INDEX ------------- Exhibit No. Description ----------- ----------- 20.1 MBIA Inc. Press Release dated April 7, 1999 Page 4 of 4 EX-20.1 2 MBIA INC. PRESS RELEASE OF 4/7/99 Joe Krakoviak FOR IMMEDIATE RELEASE (914) 765-3338 MBIA INCREASES QUARTERLY LOSS PROVISION AND BOLSTERS RESERVES WITH ONE-TIME - --------------------------------------------------------------------------- PRE-TAX CHARGE OF $152.7 MILLION TO STRENGTHEN BALANCE SHEET - -------------------------------------------------------------------------------- ARMONK, N.Y. - April 7, 1999 - MBIA Inc. (NYSE: MBI), holding company for MBIA Insurance Corporation, the world's leading financial guarantor, said it completed the previously announced review of unallocated loss reserves and, as a result, increased its loss-reserve factors. Starting in the first quarter, MBIA will set aside approximately .04 percent of net debt service written, up from approximately .02 percent. The new factors are expected to add to loss reserves on average by approximately $8 million per quarter in 1999. In addition, MBIA will take a $152.7 million one-time pre-tax charge in the first quarter to increase unallocated loss reserves to incorporate the new factors on the existing insured portfolio. "These steps reflect the results of an update and analysis of our loss-reserve factors that are based on the latest available industry data - not any increased concern about the credit quality of our insured portfolio," said Neil G. Budnick, chief financial officer. "Our study included analysis of the historical default and recovery experience of relevant sectors of the fixed-income market and the changing mix of our insured portfolio. Strengthening our industry-leading balance sheet is consistent with our goals of no-loss underwriting, maintaining our Triple-A claims-paying rating and building shareholder value." MBIA Inc., through its subsidiaries, is the world's preeminent financial guarantor and a leading provider of specialized financial services. MBIA provides innovative and cost-effective products and services that meet the credit enhancement, financial and investment needs of its public and private sector clients, domestically and internationally. MBIA Insurance Corporation has a claims-paying rating of Triple-A from Moody's Investors Service, Standard & Poor's Ratings Services, Fitch IBCA and Japan Rating and Investment Information, Inc. Please visit MBIA's web site at http://www.mbia.com. This news release contains forward-looking statements. Important factors such as general market conditions and the competitive environment could cause actual results to differ materially from those projected in these forward-looking statements. The company undertakes no obligation to revise or update any forward-looking statements to reflect changes in events or expectations. -----END PRIVACY-ENHANCED MESSAGE-----