MBIA Inc. Posts 4Q Profit, Shares Edge Up

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MBIA Inc. (NYSE:MBI) on Tuesday posted a fourth-quarter profit, the result of a $1.1 billion pre-tax gain on the fair value of insured derivatives.

The bond-insurer posted net income of $451 million, or $2.24 per share, which compares to a year-ago net loss of $240 million, or $1.16 per share. On an adjusted basis, the company reported a pretax loss, which narrowed to $310.9 million, down from $541 million one year ago.

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In a statement included as part of the release, company touted the value of the bond insurance it provided to investors holding securities insured by MBIA Corp.

"The fourth quarter and full year 2010 represented the thirteenth quarter and fourth year, respectively, in which our company's results reflected the impact of having insured securitizations primarily consisting of ineligible mortgages," said MBIA Inc. President and Chief Financial Officer Chuck Chaplin, in a statement. "Since 2007, we have paid $9.1 billion in gross claims on mortgage securitizations, CDOs and other transactions, demonstrating the value of bond insurance to investors.

Shares of MBIA fell 1.4% to close at $11.05 a share. The stock was up 34 cents, or 3.1%, in after-hours trading.