May 10 (Reuters) – U.S. bond insurer MBIA Inc posted an adjusted loss compared with a year-ago profit, hurt by legal costs, losses on its insured exposures and investment impairments.
For the first quarter, MBIA's adjusted pre-tax loss was $548 million, compared with a profit of $25 million a year ago. The loss also widened from the fourth-quarter.
“Our first quarter 2012 operating results were a disappointment due to the significant actions we took to reduce future volatility in our insured portfolio and lower liquidity risk at the holding company,” Chief Financial Officer Chuck Chaplin said in a statement.
During the quarter, MBIA Insurance Corp commuted $4.3 billion of insured exposure, comprising investment grade corporate collateralized debt obligations and commercial real estate CDOs, to mitigate future losses.
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