WASHINGTON (dpa-AFX) - Bond insurer MBIA Inc (MBI), Monday reported an increase in first-quarter profit, helped by higher gains from a reduction in derivative liabilities as a result of commutation activity.
Following the announcement, MBIA shares gained 5 percent in after-hours trade on the New York Stock Exchange.
Armonk, New York-based MBIA posted first-quarter net income of $256 million or $1.32 per share, compared with $164 million or $0.84 per share last year.
On average, three analysts polled by Thomson Reuters projected earnings of $0.06 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the first quarter surged to $577 million from $219 million a year ago.
Results were helped by $469 million of net gains on insured derivatives, primarily in the Structured Finance and International Insurance segment, compared with $61 million of losses last year.
This was somewhat offset by $50 million of net insurance loss and loss adjustment expenses compared with a $194 million benefit to losses incurred a year ago, the company said in a statement.
'The first quarter represented another milestone on our journey to financial stability and re-entry into the municipal finance market,' said Chuck Chaplin, the company's chief financial officer.
The company had an adjusted book value per share of $26.64 per share for the quarter, compared with $27.78 in the prior quarter.
The company's stock closed Monday at $12.46, up $0.47 or 3.92%, on a volume of 4.7 million shares. In the after hours, the stock gained $0.64 or 5.14%, trading at $13.10.
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