Bond insurer MBIA's quarterly profit surges
Feb 29 (Reuters) - Bond insurer MBIA Inc reported a four-fold jump in quarterly profit, helped by an increase in net investment income and a fall in expenses.
The company's net income rose to $82 million, or 54 cents per share, in the fourth quarter ended Dec. 31, from $20 million, or 10 cents per share, a year earlier.
MBIA's shares have been under pressure due to uncertainty over exactly how much of its $4 billion exposure to Puerto Rico's debt is at risk as the U.S. commonwealth negotiates a restructuring deal with creditors.
Bill Fallon, CEO of the company's subsidiary operating the U.S. public finance insurance business, said in a statement on Monday that the unit had reached an important agreement with PREPA, Puerto Rico's power utility, which remains subject to certain conditions before it can be implemented.
Puerto Rico's House of Representatives earlier this month approved a bill aimed at overhauling PREPA, pushing the agency a step closer to finalizing a deal with creditors to restructure more than $8 billion in debt.
MBIA's revenue rose 38 percent to $297 million.
The company will host its earnings call on March 1.
Up to Monday's close of $6.71, MBIA's shares had fallen 24 percent in the past 12 months. (Reporting by Nikhil Subba in Bengaluru; Editing by Sriraj Kalluvila)
© Thomson Reuters 2016 All rights reserved.