<SEC-DOCUMENT>0001157523-15-001740.txt : 20150511
<SEC-HEADER>0001157523-15-001740.hdr.sgml : 20150511
<ACCEPTANCE-DATETIME>20150511171127
ACCESSION NUMBER:		0001157523-15-001740
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20150511
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20150511
DATE AS OF CHANGE:		20150511

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:		1934 Act
		SEC FILE NUMBER:	001-09583
		FILM NUMBER:		15851756

	BUSINESS ADDRESS:	
		STREET 1:		1 MANHATTANVILLE ROAD
		STREET 2:		SUITE 301
		CITY:			PURCHASE
		STATE:			NY
		ZIP:			10577
		BUSINESS PHONE:		914-273-4545

	MAIL ADDRESS:	
		STREET 1:		1 MANHATTANVILLE ROAD
		STREET 2:		SUITE 301
		CITY:			PURCHASE
		STATE:			NY
		ZIP:			10577
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a51100172.htm
<DESCRIPTION>MBIA INC. 8-K
<TEXT>
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      <br>
      <font style="font-size: 18pt"><b>UNITED STATES</b></font><br><font style="font-size: 18pt; font-family: Times New Roman"><b>SECURITIES
      AND EXCHANGE COMMISSION</b></font><br><font style="font-size: 14pt; font-family: Times New Roman"><b>Washington,
      D.C. 20549</b></font><br><br><font style="font-size: 18pt; font-family: Times New Roman"><b>FORM
      8-K</b></font><br><br><font style="font-size: 14pt; font-family: Times New Roman"><b>CURRENT
      REPORT</b></font><br><br><font style="font-size: 10pt; font-family: Times New Roman">Pursuant
      to Section 13 or 15(d) of</font><br><font style="font-size: 10pt; font-family: Times New Roman">
      the Securities Exchange Act of 1934</font><br><br><br><font style="font-size: 10pt; font-family: Times New Roman">Date
      of Report (Date of earliest event reported): May 11, 2015</font><br><br><font style="font-size: 18pt"><b>MBIA
      INC.</b></font><br><font style="font-size: 10pt; font-family: Times New Roman">(Exact
      name of registrant as specified in its charter)</font><br><br>
    </p>
    <div style="text-align:center">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; margin-left:auto;margin-right:auto; font-size: 10pt">
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; width: 33%; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Connecticut</b>
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; width: 34%; padding-right: 0.0px; text-align: center; white-space: nowrap">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>1-9583</b>
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; width: 33%; padding-right: 0.0px; text-align: center; white-space: nowrap">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>06-1185706</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; width: 33%; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (State or other jurisdiction of
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            incorporation)
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 34%; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Commission File Number)
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 33%; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (IRS Employer Identification No.)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>
      <br>

    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 10pt">
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; width: 50%; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>1 Manhattanville Road, Suite 301</b><br><b>Purchase, New York</b>
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; width: 50%; padding-right: 0.0px; text-align: center; white-space: nowrap">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>10577</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; width: 50%; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman">(Address
            of principal executive offices)</font>
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; width: 50%; text-align: center">
          <font style="font-size: 10pt; font-family: Times New Roman">(Zip
          Code)</font>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman">Registrant&#8217;s
      telephone number, including area code:</font><br><b>914-273-4545</b><br><br><br><b>Not
      Applicable</b><br><font style="font-size: 10pt; font-family: Times New Roman">(Former
      name or former address, if changed since last report)</font><br><br><br>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font><br>
    </p>
    <hr style="width: 100%; text-align: center; color: #000000; height: 1.0 pt">


    <p>

    </p>
    <div style="width: 100%; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <b>Item 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.</b>
    </p>
    <p>
      The following information, including Exhibit 99.1 to this Form 8-K, is
      being furnished, not filed, pursuant to Item 2.02 - Results of
      Operations and Financial Condition of Form 8-K.
    </p>
    <p>
      On May 11, 2015, MBIA Inc. (&#8220;MBIA&#8221;) issued a press release announcing
      its results of operations for the quarter ended March 31, 2015.&#160;&#160;A copy
      of the press release is attached as Exhibit 99.1 to this Form 8-K and is
      incorporated by reference to this Item 2.02 as if fully set forth herein.
    </p>
    <p style="white-space: nowrap">
      <b>Item 7.01.&#160;&#160;&#160;&#160;&#160;REGULATION FD DISCLOSURE.</b>
    </p>
    <p>
      The following information is being furnished, not filed, pursuant to
      Item 7.01 - Regulation FD Disclosure of Form 8-K.&#160;&#160;Information contained
      on MBIA&#8217;s Web sites is not incorporated by reference into this Current
      Report on Form 8-K.
    </p>
    <p>
      On May 11, 2015, MBIA will post on its Web site, www.mbia.com, under the
      section &#8220;Selected Exposures,&#8221; certain information on MBIA Insurance
      Corporation&#8217;s structured finance insured portfolio and non-U.S. public
      finance insured portfolio and on National Public Finance Guarantee
      Corporation&#8217;s insured portfolio as of March 31, 2015.&#160;&#160;The information
      will be posted as &#8220;MBIA Corp.&#8217;s Structured Finance Insured Portfolio,&#8221;
      &#8220;MBIA Corp.&#8217;s Non-U.S. Public Finance Insured Portfolio&#8221; and &#8220;National
      Public Finance Guarantee Corporation&#8217;s Insured Portfolio.&#8221;&#160;&#160;In addition,
      the information on National Public Finance Guarantee Corporation&#8217;s
      insured portfolio as of March 31, 2015 will also be posted on its Web
      site, www.nationalpfg.com, under the section &#8220;Insured Portfolio.&#8221;
    </p>
    <p>
      On May 11, 2015, MBIA will also post on its Web site, www.mbia.com,
      under the section &#8220;Investor Relations &#8211; Financial Information &#8211;
      Operating Supplements,&#8221; a Quarterly Operating Supplement for the first
      quarter of 2015 and under the section &#8220;Investor Relations &#8211; Financial
      Information &#8211; Statutory Statements,&#8221; first quarter 2015 Quarterly
      Statements for each of MBIA Insurance Corporation and National Public
      Finance Guarantee Corporation.&#160;&#160;&#160;On or about May 11, 2015, MBIA will
      also post on its Web site, www.mbia.com, under the section &#8220;Investor
      Relations &#8211; Investor Inquiries/FAQs,&#8221; updated Frequently Asked Questions.
    </p>
    <p style="white-space: nowrap">
      <b>Item 9.01.&#160;&#160;&#160;&#160;&#160;FINANCIAL STATEMENTS AND EXHIBITS.</b>
    </p>
    <p>
      99.1&#160;&#160;Press Release issued by MBIA Inc., dated May 11, 2015, announcing
      its results of operations for the quarter ended March 31, 2015.
    </p>
    <p>

    </p>
    <div style="width: 100%; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; text-indent: 0pt">
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          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman"><b>SIGNATURES</b></font>
    </p>
    <p style="font-family: Times New Roman; font-size: 10pt; text-indent: 30.0px">
      <font style="font-size: 10pt; font-family: Times New Roman">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.</font>
    </p>
    <p style="font-family: Times New Roman; font-size: 10pt; text-indent: 30.0px">

    </p>
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      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            MBIA INC.
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2">

        </td>
        <td style="width: 10%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2">

        </td>
        <td style="width: 10%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; width: 5%; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; width: 45%; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; width: 3%; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>By:</b>
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            /s/ Ram D. Wertheim
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 3%">

        </td>
        <td valign="top" style="padding-left: 0.0px; width: 37%; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Ram D. Wertheim
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 3%">

        </td>
        <td valign="top" style="padding-left: 0.0px; width: 37%; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Chief Legal Officer
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 37%">

        </td>
        <td style="width: 10%">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; width: 5%; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Date:
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 45%; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            May 11, 2015
          </p>
        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 37%">

        </td>
        <td style="width: 10%">

        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="width: 100%; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
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        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <b>EXHIBIT INDEX TO CURRENT REPORT ON FORM 8-K</b><br>Dated <font style="font-size: 10pt; font-family: Times New Roman">May
      11, 2015</font><br><br><br>
    </p>
    <p style="text-align: left">
      99.1 &#160;Press Release issued by MBIA Inc., dated May 11, 2015, announcing
      its results of operations for the quarter ended March 31, 2015.
    </p>
    <p style="text-align: left">

    </p>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a51100172ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p>
      <u><font style="font-size: 12pt; font-family: Times New Roman"><b>MBIA
      Inc. Reports First Quarter 2015 Financial Results</b></font></u>
    </p>
    <p>
      PURCHASE, N.Y.--(BUSINESS WIRE)--May 11, 2015--MBIA Inc. (NYSE: MBI)
      (the Company) today reported combined operating income (a non-GAAP
      measure defined in the attached Explanation of Non-GAAP Financial
      Measures) of $34 million for the three months ended March 31, 2015
      compared with combined operating income of $40 million in the same
      period of 2014. The decline in combined operating income for the three
      months ended March 31, 2015 was primarily the result of a decrease in
      net investment income and a larger reduction in loss reserves in the
      first quarter of 2014 than in the first quarter of 2015, partially
      offset by an increase in premiums earned net of deferred acquisition
      cost amortization.
    </p>
    <p>
      Adjusted Book Value (ABV) per share (a non-GAAP measure defined in the
      attached Explanation of Non-GAAP Financial Measures) was $25.78 as of
      March 31, 2015 compared with $24.87 as of December 31, 2014. The
      increase in ABV per share was primarily driven by a decrease in common
      shares outstanding resulting from share repurchases. The Company
      repurchased 8.6 million of its common shares during the first quarter of
      2015.
    </p>
    <p>
      Consolidated GAAP net income was $69 million, or $0.37 per diluted
      share, for the first quarter of 2015 compared with consolidated net
      income of $256 million, or $1.32 per diluted share, in the same period
      of 2014. The decrease in consolidated net income in the first quarter of
      2015 was primarily due to lower net gains on insured derivatives,
      partially offset by a lower provision for income taxes, gains on foreign
      exchange and lower losses on insured exposures.
    </p>
    <p>
      Operating income and ABV per share provide investors with other views of
      the Company&#8217;s operating results that management uses in measuring
      financial performance. Reconciliations of ABV per share to book value
      per share, and operating income to net income, calculated in accordance
      with GAAP, are attached.
    </p>
    <div style="width: 100%; margin-left: 0pt; margin-bottom: 10pt; margin-right: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
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        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      &#8220;We continue to make progress toward more normal operations,&#8221; said MBIA
      Inc. President and Chief Financial Officer Chuck Chaplin. &#8220;Since
      National began writing new business in the third quarter of 2014, we
      have wrapped $614 million of par and its earnings have been stable. We
      also made progress at the holding company on debt reduction and
      repurchased over 10 million of our shares since the beginning of the
      year at prices we consider advantageous. MBIA Corp.&#8217;s statutory net
      income was positive and capital was stable as loss volatility continued
      its decline.&#8221;
    </p>
    <p>
      <b>U.S. Public Finance Insurance Results</b>
    </p>
    <p>
      The Company&#8217;s U.S. public finance insurance business is conducted
      through its National Public Finance Guarantee Corporation (National)
      subsidiary. The U.S. public finance insurance segment recorded $56
      million of operating income in the first quarter of 2015 compared with
      $61 million of operating income in the same period of 2014.
    </p>
    <p>
      Total premiums earned in the U.S. public finance insurance segment were
      $85 million in the first quarter of 2015, up 31 percent from $65 million
      of total premiums earned in the same period of 2014, reflecting a 123
      percent increase in refunded premiums earned partially offset by a 17
      percent decline in scheduled premiums earned. The decline in scheduled
      premiums earned resulted from portfolio amortization and high refunding
      volume over the past several years.
    </p>
    <p>
      National wrote $38 million par amount of primary new insurance during
      the first quarter of 2015 and wrote or is committed to write $241
      million since the end of the first quarter, for a total of $614 million
      of par since the third quarter of 2014. Premiums written since the third
      quarter of 2014 totaled $8 million.
    </p>
    <p>
      Net investment income for the U.S. public finance insurance segment was
      $29 million in the first quarter of 2015, down from $33 million in the
      first quarter of 2014 primarily due to lower average yields, lower
      average investment balances following a dividend payment to MBIA Inc. in
      the fourth quarter of 2014 and tax payments.
    </p>
    <p>
      Other net realized losses for the U.S. public finance insurance segment
      were $4 million in the first quarter of 2015 as a result of an
      impairment charge on the Company&#8217;s former headquarters facility in
      Armonk, New York. The property was sold after the end of the first
      quarter of 2015. There were no other net realized gains or losses in the
      same period of 2014.
    </p>
    <div style="width: 100%; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
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        <div style="text-align: center">

        </div>
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          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      The U.S. public finance insurance segment recorded a benefit of $6
      million to losses and LAE in the first quarter of 2015 compared with a
      benefit of $14 million in the first quarter of 2014. The benefit in
      losses and LAE for the first quarter of 2015 primarily related to
      decreases in reserves for certain municipal utilities and general
      obligation bonds. The benefit in losses and LAE for the first quarter of
      2014 primarily related to decreases in reserves associated with certain
      general obligation bonds.
    </p>
    <p>
      The amortization of deferred acquisition costs totaled $18 million in
      the first quarter of 2015 compared with $14 million in the same period
      of 2014. The increase in the amortization of deferred acquisition costs
      was due to higher refunding activity in 2015.
    </p>
    <p>
      National&#8217;s operating expenses were $16 million in the first quarter of
      2015, compared with $13 million in the same period of 2014. The increase
      in operating expenses in the first quarter of 2015 was driven by
      increased headcount and higher allocated compensation expenses as
      National expands its new business activities.
    </p>
    <p>
      National had qualified statutory capital of $3.3 billion and
      claims-paying resources totaling $4.9 billion as of March 31, 2015.
    </p>
    <p>
      <b>Corporate</b>
    </p>
    <p>
      The corporate segment is responsible for general corporate activities,
      including managing the holding company&#8217;s balance sheet and expense base,
      providing support services to MBIA&#8217;s other operating businesses and
      other business development activities. Shared support services are
      provided by MBIA Services Corporation on a fee-for-service basis.
    </p>
    <p>
      The corporate segment recorded an operating loss of $22 million in the
      first quarter of 2015 compared with an operating loss of $21 million in
      the same period of 2014. The increase in the corporate segment's
      operating loss was primarily driven by a lower benefit from income
      taxes, lower net investment income and higher losses on financial
      instruments at fair value and foreign exchange, partially offset by
      lower net realized losses and lower interest expense. In the first
      quarter of 2014, the corporate segment recorded a net realized loss of
      $5 million on an investment. There were no similar net realized gains or
      losses in the corporate segment in the first quarter of 2015.
    </p>
    <div style="width: 100%; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      As of March 31, 2015, MBIA Inc. held cash and liquid assets of $567
      million, excluding $193 million of assets in its tax escrow account.
      During the first quarter of 2015, $228 million was released to MBIA Inc.
      from the tax escrow account in accordance with the Company&#8217;s tax sharing
      agreement.
    </p>
    <p>
      The Company&#8217;s consolidated net operating loss carryforward for income
      tax purposes as of March 31, 2015 was approximately $3.1 billion.
    </p>
    <p>
      During the first quarter of 2015, the Company repurchased 8.6 million of
      its common shares at an average price of $8.83 per share. In the second
      quarter of 2015 through May 5, 2015, the Company repurchased an
      additional 1.9 million common shares at an average price of $9.15 per
      share. As of May 5, 2015, there was $95 million of remaining authorized
      capacity under the Company&#8217;s 2014 share repurchase program.
    </p>
    <p>
      <b>International and Structured Finance Insurance Results</b>
    </p>
    <p>
      The international and structured finance insurance business is primarily
      conducted through MBIA Corp. and includes the results of MBIA Insurance
      Corporation, the New York-regulated insurer on a stand-alone basis and
      its subsidiaries, MBIA UK Insurance Limited and MBIA Mexico S.A. de C.V.
    </p>
    <p>
      The Company does not measure operating income of this segment. The
      international and structured finance insurance segment&#8217;s contribution to
      consolidated GAAP net income was a net loss of $2 million in the first
      quarter of 2015, compared with net income of $254 million in the same
      period of 2014. The change was driven by lower net gains on the fair
      value of insured derivatives, partially offset by a benefit from income
      taxes in the first quarter of 2015 compared with a provision for income
      taxes in the same period of the prior year, as well as lower loss and
      LAE expenses.
    </p>
    <p>
      MBIA Corp.&#8217;s statutory net income for the first quarter of 2015 was $3
      million. Statutory net losses and LAE incurred for the first quarter of
      2015 totaled $18 million compared with net losses and LAE incurred of
      $70 million in the comparable period of the prior year. The qualified
      statutory capital of MBIA Insurance Corporation as of March 31, 2015 was
      $857 million and claims-paying resources totaled $2.6 billion.
    </p>
    <div style="width: 100%; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      As of March 31, 2015, MBIA Insurance Corporation&#8217;s (excluding its
      subsidiaries and branches) liquidity position totaled $415 million
      consisting of cash and invested assets. Based on MBIA Corp.&#8217;s liquidity
      position and its assessment of payment risks on insured exposures, the
      Company believes that MBIA Corp.&#8217;s liquidity resources, including
      expected cash inflows, will adequately provide for anticipated cash
      outflows, including expected future claim payments.
    </p>
    <p>
      <b>Conference Call</b>
    </p>
    <p>
      The Company will host a webcast and conference call for investors
      tomorrow, Tuesday, May 12, 2015 at 8:00 AM (EDT) to discuss its first
      quarter financial results and other matters relating to the Company. The
      webcast and conference call will consist of brief remarks followed by a
      question and answer session.
    </p>
    <p>
      The dial-in number for the call is (877) 694-4769 in the U.S. and (404)
      665-9935 from outside the U.S. The conference call code is 31617213. A
      live webcast of the conference call will also be accessible on <u>www.mbia.com</u>.
    </p>
    <p>
      A replay of the call will be available approximately two hours after the
      completion of the call on May 12 until 11:59 p.m. on May 26 by dialing
      (800) 585-8367 in the U.S. or (404) 537-3406 from outside the U.S. The
      replay call code is also 31617213. In addition, a recording of the call
      will be available on the Company's website approximately two hours after
      the completion of the call.
    </p>
    <div style="width: 100%; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Forward-Looking Statements</b>
    </p>
    <p>
      The information contained in this press release should be read in
      conjunction with our filings made with the Securities and Exchange
      Commission. This release includes statements that are not historical or
      current facts and are &#8220;forward-looking statements&#8221; made pursuant to the
      safe harbor provisions of the Private Securities Litigation Reform Act
      of 1995. The words &#8220;believe,&#8221; &#8220;anticipate,&#8221; &#8220;project,&#8221; &#8220;plan,&#8221; &#8220;expect,&#8221;
      &#8220;estimate,&#8221; &#8220;intend,&#8221; &#8220;will likely result,&#8221; &#8220;looking forward&#8221; or &#8220;will
      continue,&#8221; and similar expressions identify forward-looking statements.
      These statements are subject to certain risks and uncertainties that
      could cause actual results to differ materially from historical earnings
      and those presently anticipated or projected, including, among other
      risks and uncertainties, the possibility that the Company will
      experience increased credit losses or impairments on public finance
      obligations we insure issued by state, local and territorial governments
      and finance authorities that are experiencing fiscal stress, the
      possibility that MBIA Corp. will have inadequate liquidity to pay
      expected claims as a result of increased losses on certain structured
      finance transactions, in particular residential mortgage-backed
      securities transactions that include a substantial number of ineligible
      mortgage loans, or a delay or failure in collecting expected recoveries,
      the possibility that loss reserve estimates are not adequate to cover
      potential claims, a disruption in the cash flow from our subsidiaries or
      an inability to access capital and our exposure to significant
      fluctuations in liquidity and asset values within the global credit
      markets as a result of collateral posting requirements, our ability to
      fully implement our strategic plan, including our ability to maintain
      high stable ratings for National and generate investor demand for our
      financial guarantees, deterioration in the economic environment and
      financial markets in the United States or abroad, and adverse
      developments in European sovereign credit performance, real estate
      market performance, credit spreads, interest rates and foreign currency
      levels, the effects of governmental regulation, including insurance
      laws, securities laws, tax laws, legal precedents and accounting rules;
      and uncertainties that have not been identified at this time. These and
      other factors that could affect financial performance or could cause
      actual results to differ materially from estimates contained in or
      underlying the Company&#8217;s forward-looking statements are discussed under
      the &#8220;Risk Factors&#8221; section in MBIA Inc.&#8217;s most recent Annual Report on
      Form 10-K and Quarterly Report on Form 10-Q, which may be updated or
      amended in the Company&#8217;s subsequent filings with the Securities and
      Exchange Commission. The Company cautions readers not to place undue
      reliance on any such forward-looking statements, which speak only to
      their respective dates. The Company undertakes no obligation to publicly
      correct or update any forward-looking statement if it later becomes
      aware that such result is not likely to be achieved.
    </p>
    <p>
      MBIA Inc., headquartered in Purchase, New York is a holding company
      whose subsidiaries provide financial guarantee insurance for the public
      and structured finance markets. Please visit MBIA's website at <u>www.mbia.com</u>.
    </p>
    <div style="width: 100%; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Explanation of Non-GAAP Financial Measures</b>
    </p>
    <p>
      The following are explanations of why the Company believes that the
      non-GAAP financial measures used in this press release, which serve to
      supplement GAAP information, are meaningful to investors.
    </p>
    <p>
      <b>Adjusted Book Value:</b> Adjusted Book Value (&#8220;ABV&#8221;), a non-GAAP
      measure, is used by the Company to supplement its analysis of GAAP book
      value. The Company uses ABV as a measure of fundamental value and
      considers the change in ABV an important measure of periodic financial
      performance. ABV adjusts GAAP book value by removing the GAAP book value
      amounts for items that are not expected to impact shareholder value and
      to add in the impact of certain items which the Company believes will be
      realized in GAAP book value in future periods. The Company has limited
      such adjustments to those items that it deems to be important to
      fundamental value and performance and which the likelihood and amount
      can be reasonably estimated. ABV assumes no new business activity. The
      Company has presented ABV to allow investors and analysts to evaluate
      the Company using the same measure that MBIA&#8217;s management regularly uses
      to measure financial performance. ABV is not a substitute for and should
      not be viewed in isolation from GAAP book value.
    </p>
    <p>
      ABV per share represents that amount of ABV allocated to each common
      share outstanding at the measurement date.
    </p>
    <p>
      <b>Claims-paying Resources (CPR)</b>: CPR is a key measure of the
      resources available to National and MBIA Corp. to pay claims under their
      respective insurance policies. CPR consists of total financial resources
      and reserves calculated on a statutory basis. CPR has been a common
      measure used by financial guarantee insurance companies to report and
      compare resources and continues to be used by MBIA&#8217;s management to
      evaluate changes in such resources. The Company has provided CPR to
      allow investors and analysts to evaluate National and MBIA Corp. using
      the same measure that MBIA&#8217;s management uses to evaluate their resources
      to pay claims under their respective insurance policies. There is no
      directly comparable GAAP measure.
    </p>
    <p>
      <b>Combined Operating Income:</b> The sum of Operating Income of the
      U.S. public finance insurance (National) and corporate segments net of
      eliminations. See &#8220;Operating Income&#8221; definition.
    </p>
    <div style="width: 100%; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Operating Income:</b> Operating Income is a useful measurement of
      performance because it measures income from the Company&#8217;s core operating
      segments, unaffected by investment portfolio realized gains and losses,
      gains and losses on financial instruments at fair value and foreign
      exchange, and realized gains and losses on extinguishment of debt.
      Operating Income also excludes net income of the Company&#8217;s non-core
      operating segments. The Company&#8217;s non-core segments include the
      activities of its international and structured finance insurance,
      advisory services and conduit segments. Trends in the underlying
      profitability of the Company&#8217;s businesses can be more clearly identified
      without the fluctuating effects of the excluded items noted above.
      Operating Income is disclosed on an after-tax basis and adjustments to
      net income are typically tax-effected at 35% unless a specific
      adjustment, or component thereof, is not taxable. Operating Income as
      defined by the Company does not include all revenues and expenses
      required by GAAP. Operating Income is not a substitute for and should
      not be viewed in isolation from GAAP net income.
    </p>
    <p>
      Operating Income per share represents that amount of Operating Income
      allocated to each fully diluted weighted-average common share
      outstanding for the measurement period.
    </p>
    <div style="width: 100%; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 8pt">
      <tr>
        <td colspan="12">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="12">
          <b>MBIA INC. AND SUBSIDIARIES</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="12">
          <b>CONSOLIDATED BALANCE SHEETS (Unaudited)</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="12">
          (In millions except share and per share amounts)
        </td>
      </tr>
      <tr>
        <td colspan="12">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" colspan="3">
          <b>March 31, 2015</b>
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" colspan="3">
          <b>December 31, 2014</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          <b>Assets</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Investments:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Fixed-maturity securities held as available-for-sale, at fair value
          (amortized cost $5,155 and $5,036)
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          5,279
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          5,129
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Investments carried at fair value
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          217
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          207
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Investments pledged as collateral, at fair value (amortized cost
          $217 and $441)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          183
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          408
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Short-term investments held as available-for-sale, at fair value
          (amortized cost $1,114 and $1,069)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,117
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,069
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" colspan="3">
          Other investments (includes investments at fair value of $13 and $13)
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          17
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          17
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Total investments
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          6,813
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          6,830
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Cash and cash equivalents
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          596
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          729
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Premiums receivable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          848
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          875
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Deferred acquisition costs
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          204
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          217
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Insurance loss recoverable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          527
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          533
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Assets held for sale
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          22
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          802
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Deferred income taxes, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          969
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,028
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Other assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          232
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          229
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Assets of consolidated variable interest entities:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Cash
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          31
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          53
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Investments held-to-maturity, at amortized cost (fair value $2,635
          and $2,632)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          2,742
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          2,757
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Fixed-maturity securities at fair value
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,061
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          421
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Loans receivable at fair value
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,480
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,431
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Loan repurchase commitments
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          385
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          379
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" colspan="3">
          Derivative assets
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          5
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          -
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left">
          <b>Total assets</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          <b>15,915</b>
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          <b>16,284</b>
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          <b>Liabilities and Equity</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Liabilities:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Unearned premium revenue
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,874
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,986
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Loss and loss adjustment expense reserves
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          499
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          506
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Investment agreements
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          538
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          547
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Medium-term notes (includes financial instruments carried at fair
          value of $180 and $197)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,108
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,201
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Long-term debt
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,828
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,810
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Derivative liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          391
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          437
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Liabilities held for sale
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          772
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Other liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          266
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          271
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Liabilities of consolidated variable interest entities:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Variable interest entity notes (includes financial instruments
          carried at fair value of $2,653 and $2,047)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          5,395
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          4,804
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" colspan="2">
          Derivative liabilities
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          76
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          -
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          <b>Total liabilities</b>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          <b>11,975</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          <b>12,334</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Equity:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Preferred stock, par value $1 per share; authorized
          shares--10,000,000; issued and outstanding--none
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Common stock, par value $1 per share; authorized
          shares--400,000,000; issued shares--281,670,699
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 5.0px; text-align: left" colspan="2">
          and 281,352,782
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          282
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          281
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Additional paid-in capital
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          3,124
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          3,128
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Retained earnings
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          2,927
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          2,858
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Accumulated other comprehensive income (loss), net of tax of $4 and
          $7
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          22
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          21
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" colspan="3">
          Treasury stock, at cost--98,097,072 and 89,409,887 shares
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          (2,436
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap; border-bottom: solid black 1.0pt">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          (2,359
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap; border-bottom: solid black 1.0pt">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Total shareholders' equity of MBIA Inc.
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          3,919
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          3,929
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" colspan="3">
          Preferred stock of subsidiary and noncontrolling interest
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          21
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          21
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          <b>Total equity</b>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          <b>3,940</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          <b>3,950</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left">
          <b>Total liabilities and equity</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          <b>15,915</b>
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          <b>16,284</b>
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 8pt">
      <tr>
        <td colspan="13">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="13">
          <b>MBIA INC. AND SUBSIDIARIES</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="13">
          <b>CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="13">
          (In millions except share and per share amounts)
        </td>
      </tr>
      <tr>
        <td colspan="13">
          &#160;
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" colspan="7">
          <b>Three Months Ended March 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: center; white-space: nowrap; border-bottom: solid black 1.0pt" colspan="3">
          <b>2015</b>
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: center; white-space: nowrap; border-bottom: solid black 1.0pt" colspan="2">
          <b>2014</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="5">
          <b>Revenues:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Premiums earned:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Scheduled premiums earned
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          55
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          69
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" colspan="3">
          Refunding premiums earned
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          46
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          19
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Premiums earned (net of ceded premiums of $4 and $2)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          101
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          88
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Net investment income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          37
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          50
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Fees and reimbursements
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          4
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Change in fair value of insured derivatives:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Realized gains (losses) and other settlements on insured derivatives
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (9
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (369
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" colspan="3">
          Unrealized gains (losses) on insured derivatives
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          37
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          838
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Net change in fair value of insured derivatives
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          28
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          469
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Net gains (losses) on financial instruments at fair value and
          foreign exchange
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          30
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (55
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Net gains (losses) on extinguishment of debt
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Other net realized gains (losses)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          20
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Revenues of consolidated variable interest entities:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Net investment income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          12
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          12
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Net gains (losses) on financial instruments at fair value and
          foreign exchange
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (10
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          3
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" colspan="3">
          Net gains (losses) on extinguishment of debt
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          -
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          4
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Total revenues
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          219
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          577
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="5">
          <b>Expenses:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Losses and loss adjustment
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (6
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          50
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Amortization of deferred acquisition costs
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          13
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          10
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Operating
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          35
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          46
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Interest
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          50
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          54
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Expenses of consolidated variable interest entities:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          Operating
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          4
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          3
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" colspan="3">
          Interest
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          10
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          10
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Total expenses
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          106
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          173
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="5">
          Income (loss) before income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          113
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          404
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" colspan="5">
          Provision (benefit) for income taxes
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          44
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          148
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" colspan="5">
          <b>Net income (loss)</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          <b>69</b>
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          <b>256</b>
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="5">
          <b>Net income (loss) per common share:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Basic
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          0.37
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1.33
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Diluted
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          0.37
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1.32
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="5">
          <b>Weighted average number of common shares outstanding:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Basic
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          181,735,876
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          189,033,982
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="4">
          Diluted
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          182,736,415
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          190,263,748
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="4">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 8pt">
      <tr>
        <td colspan="11">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="11">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>COMBINED</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="11">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>OPERATING INCOME (LOSS) RECONCILIATION</b></u><b><u><sup>(4)</sup></u></b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="11">
          (In millions)
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" colspan="7">
          <b>Three Months Ended March 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: center; white-space: nowrap; border-bottom: solid black 1.0pt" colspan="3">
          <b>2015</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: center; white-space: nowrap; border-bottom: solid black 1.0pt" colspan="3">
          <b>2014</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Net income (loss)
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          69
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          256
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Less: net income of Non-Core Segments, including eliminations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (3
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          253
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Less: after-tax adjustments:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Mark-to-market gains (losses) on financial instruments<sup>(1)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (17
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (35
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Foreign exchange gains (losses)<sup>(1)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          42
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (2
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Net gains (losses) on sales of investments<sup>(1)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Other net realized gains (losses)<sup>(2)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          13
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Tax valuation allowance on adjustments<sup>(3)</sup>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          -
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          (1
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap; border-bottom: solid black 1.0pt">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" colspan="2">
          Operating income (loss)
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          34
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          40
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="11">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>U.S. PUBLIC FINANCE INSURANCE (NATIONAL)</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="11">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>OPERATING INCOME (LOSS) RECONCILIATION</b></u><b><u><sup>(4)</sup></u></b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="11">
          (In millions)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" colspan="7">
          <b>Three Months Ended March 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: center; white-space: nowrap; border-bottom: solid black 1.0pt" colspan="3">
          <b>2015</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: center; white-space: nowrap; border-bottom: solid black 1.0pt" colspan="3">
          <b>2014</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Net income (loss)
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          57
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          61
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Less: after-tax adjustments:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Net gains (losses) on sales of investments<sup>(1)</sup>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          1
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          -
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" colspan="2">
          Operating income (loss)
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          56
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          61
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="11">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>CORPORATE</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="11">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>OPERATING INCOME (LOSS) RECONCILIATION</b></u><b><u><sup>(4)</sup></u></b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="11">
          (In millions)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" colspan="7">
          <b>Three Months Ended March 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: center; white-space: nowrap; border-bottom: solid black 1.0pt" colspan="3">
          <b>2015</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: center; white-space: nowrap; border-bottom: solid black 1.0pt" colspan="3">
          <b>2014</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Net income (loss)
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          15
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (58
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Less: after-tax adjustments:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Mark-to-market gains (losses) on financial instruments<sup>(1)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (17
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (35
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Foreign exchange gains (losses)<sup>(1)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          42
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (2
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Net gains (losses) on sales of investments<sup>(1)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (1
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Other net realized gains (losses)<sup>(2)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          13
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Tax valuation allowance on adjustments<sup>(3)</sup>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          -
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          (1
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap; border-bottom: solid black 1.0pt">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" colspan="2">
          Operating income (loss)
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          (22
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap; border-bottom: double black 2.25pt">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          (21
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap; border-bottom: double black 2.25pt">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 8pt">
      <tr>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          <sup>(1)</sup>
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Gross amounts are reported within &quot;Net gains (losses) on financial
          instruments at fair value and foreign exchange&quot; and the corresponding
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          tax effects are reported within &quot;Provision (benefit) for income
          taxes&quot; on the Company's consolidated statements of operations.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          <sup>(2)</sup>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Relates to the after-tax gain on the sale of Cutwater.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          <sup>(3)</sup>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Reported within &quot;Provision (benefit) for income taxes&quot; on the
          Company's consolidated statements of operations.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          <sup>(4)</sup>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          A non-GAAP measure; please see Explanation of Non-GAAP Financial
          Measures.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 8pt">
      <tr>
        <td colspan="11">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="11">
          <b>MBIA INC. AND SUBSIDIARIES</b>
        </td>
      </tr>
      <tr>
        <td colspan="11">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>Components of Adjusted Book Value per Share:</b></u><sup> (4)</sup>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td rowspan="2" valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" colspan="3">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>As of</b><br><b>March 31, 2015</b>
          </p>
        </td>
        <td>

        </td>
        <td rowspan="2" valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" colspan="3">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>As of</b><br><b>December 31, 2014</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          <b>Reported Book Value per Share</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          21.35
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          20.47
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Reverse book value of Non-Core Segments (after-tax)<sup> (1)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1.41
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1.16
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Reverse net unrealized (gains) losses included in other
          comprehensive income (after-tax)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (0.29
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (0.15
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Add net unearned premium revenue (after-tax)<sup> (2) (3)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          3.31
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          3.39
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt" colspan="2">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt" colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" colspan="2">
          <b>Adjusted Book Value per Share</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          25.78
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          24.87
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 8pt">
      <tr>
        <td>
          &#160;
        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          <sup>(1)</sup>
        </td>
        <td>
          &#160;
        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          The book value for Non-Core Segments, primarily the international
          and structured finance insurance segment, does not provide
          significant economic or shareholder value to MBIA Inc. Amounts are
          net of any deferred taxes available to MBIA Inc.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          <sup>(2)</sup>
        </td>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Consists of financial guarantee premiums, net of deferred
          acquisition costs.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          <sup>(3)</sup>
        </td>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          The discount rate on financial guarantee installment premiums was
          the risk-free rate as defined by the accounting principles for
          financial guarantee insurance contracts.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          <sup>(4)</sup>
        </td>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          A non-GAAP measure; please see Explanation of Non-GAAP Financial
          Measures.
        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 8pt">
      <tr>
        <td colspan="11">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center" colspan="11">
          <b>INSURANCE OPERATIONS</b>
        </td>
      </tr>
      <tr>
        <td colspan="11">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>Selected Financial Data Computed on a Statutory Basis</b></u>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          (Dollars in millions)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>National Public Finance Guarantee Corporation</b></u>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" colspan="3">
          <b>March 31, 2015</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" colspan="3">
          <b>December 31, 2014</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Policyholders' surplus
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          2,278
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          2,190
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" colspan="2">
          Contingency reserves
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          1,051
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          1,076
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Statutory capital
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          3,329
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          3,266
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td rowspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Unearned premium reserve
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,289
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,375
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" colspan="2">
          Present value of installment premiums<sup> (1)</sup>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          216
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          216
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Premium resources<sup> (2)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,505
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,591
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Net loss and loss adjustment expense reserves<sup> (1)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (17
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (13
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" colspan="2">
          Salvage reserves
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          102
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          106
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Gross loss and loss adjustment expense reserves
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          85
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          93
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" colspan="2">
          Total claims-paying resources
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          4,919
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          4,950
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Net debt service outstanding
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          331,837
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          352,033
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Capital ratio<sup> (3)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          100:1
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          108:1
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Claims-paying ratio<sup> (4)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          76:1
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          80:1
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="3">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>MBIA Insurance Corporation</b></u><sup> (5)</sup>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" colspan="3">
          <b>March 31, 2015</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" colspan="3">
          <b>December 31, 2014</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Policyholders&#8217; surplus
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          549
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          542
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" colspan="2">
          Contingency reserves
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          308
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          317
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Statutory capital
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          857
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          859
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td rowspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Unearned premium reserve
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          412
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          434
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" colspan="2">
          Present value of installment premiums<sup> (6)</sup>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          619
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          662
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Premium resources<sup> (2)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,031
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          1,096
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Net loss and loss adjustment expense reserves<sup> (6)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (239
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          (237
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; white-space: nowrap">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" colspan="2">
          Salvage reserves
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          924
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          938
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Gross loss and loss adjustment expense reserves
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          685
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: solid black 1.0pt">
          701
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" colspan="2">
          Total claims-paying resources
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          2,573
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap; border-bottom: double black 2.25pt">
          2,656
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Net debt service outstanding
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          69,922
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          $
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          74,645
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Capital ratio<sup> (3)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          82:1
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          87:1
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left" colspan="2">
          Claims-paying ratio<sup> (4)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          32:1
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          33:1
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 8pt">
      <tr>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          <sup>(1)</sup>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          As of March 31, 2015 and December 31, 2014, the discount rate was
          2.90%.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          <sup>(2)</sup>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          The amounts consist of financial guarantee premiums and insured
          derivative premiums.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          <sup>(3)</sup>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Net debt service outstanding divided by statutory capital.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          <sup>(4)</sup>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          Net debt service outstanding divided by the sum of statutory
          capital, unearned premium reserve (after-tax), present
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          value of installment premiums (after-tax), net loss and loss
          adjustment expense reserves and salvage reserves.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          <sup>(5)</sup>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          The table reflects MBIA Insurance Corporation including its
          subsidiary MBIA UK Limited.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap">
          <sup>(6)</sup>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: left">
          As of March 31, 2015 and December 31, 2014, the discount rate was
          5.17%.
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>
      CONTACT:<br><b>MBIA Inc.</b><br><b>Media</b><br>Kevin Brown,
      +1-914-765-3648<br>or<br><b>MBIA Inc.</b><br><b>Investor Relations:</b><br>Greg
      Diamond, +1-914-765-3190
    </p>
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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
