MBIA Inc.

Climate Impact & Sustainability Data (2011, 2022, 2023)

High leverage employed by insurers combined with increased correlation between individual issuers in stress scenarios.
Significant calls on liquidity because of liquidity triggers.
Concentrations of large obligors.
Entering businesses with the potential for large losses.
Risky investment strategies.

Development of a business risk profile/financial risk profile ratings framework and sub-factors.
Incorporation of an industry risk component.
Explanation of leverage and largest obligors tests.
Discussion of enterprise risk management (ERM) for bond insurers.
Section on rating start-up bond insurers.
Updated criteria elements (management and corporate strategy, industry risk, competitive position, operating performance, investments, capital adequacy, liquidity, and financial flexibility) with metrics for evaluating sub-factors.

MBIA’s Equal Employment Opportunity and Non-Discrimination and Anti-Harassment Policy applies to all applicants and employees, and other non-employee third-parties and individuals working for or on behalf of MBIA.
MBIA reasonably accommodates employees and applicants with disabilities (including temporary disabilities), those who are pregnant, nursing mothers, and those with sincerely held religious beliefs, in accordance with applicable law.
MBIA offers its employees a comprehensive compensation and benefits package that includes a competitive salary and an annual cash performance bonus, paid time-off benefits, health and welfare voluntary benefits that include medical and dental insurance, a health savings account that includes a company match to employee contributions, and supplemental life insurance.
MBIA promotes employee volunteerism through its annual company-wide days of service and various volunteer initiatives.

The Company’s Board of Directors and related Committees, including Audit, and Finance and Risk, oversee risks faced by the Company and its subsidiaries.
The Board regularly evaluates and discusses emerging risks and risks associated with strategic initiatives.
On an annual basis, the Board also evaluates and approves the Company’s risk tolerance policy.

Increased credit losses or impairments on public finance obligations insured by National Public Finance Guarantee Corporation.
Inadequate loss reserve estimates to cover potential claims.
Disruption in cash flow from National or inability to access capital markets.
Difficulty in implementing strategic plan.
Inadequate liquidity or resources at MBIA Insurance Corporation to timely pay claims.
Deterioration in economic environment and financial markets.
Effects of changes to governmental regulation.
Climate change as an emerging risk to its insured portfolio of public finance credits.

Proactive portfolio management, including surveillance of financial performance and covenant compliance, the exercise of creditor rights, remediation, and workouts of distressed credits.
Risk mitigation strategies at MBIA Corp. focused on recovering losses on insured transactions, reducing future expected economic losses, and managing liquidity.
Risk management and insured portfolio management groups have identified sectors of the insured portfolio particularly vulnerable to climate change and factor these risks into internal ratings, frequency of review, and potential remedial action.
Implementation and maintenance of a cybersecurity program.

MBIA’s Equal Employment Opportunity and Non-Discrimination and Anti-Harassment Policy applies to all applicants and employees, and other non-employee third-parties and individuals working for or on behalf of MBIA.
MBIA offers its employees a comprehensive compensation and benefits package that includes a competitive salary and an annual cash performance bonus, paid time-off benefits, health and welfare voluntary benefits that include medical and dental insurance, a health savings account that includes a company match to employee contributions, and supplemental life insurance.
MBIA promotes employee volunteerism through its annual company-wide days of service and various volunteer initiatives.

The Company’s Board of Directors and related Committees, including Audit, and Finance and Risk, oversee risks faced by the Company and its subsidiaries.

Climate change as an emerging risk to its insured portfolio of public finance credits.
Significant majority of MBIA’s outstanding insured exposure is to U.S. municipalities, which are subject to both direct and indirect effects of climate change including an increasing risk to severe weather events, flooding and droughts.
The impact of climate change on MBIA’s insured portfolio is real but likely to manifest itself over a long period of time.

MBIA’s risk management and insured portfolio management groups have identified the sectors of the insured portfolio that are particularly vulnerable to the impacts of climate change and factor these risks into internal ratings, frequency of review and potential remedial action.
Sectors at increased risk to climate-driven events include water and sewer systems, single site/revenue generating assets, bridge and road infrastructure, electric utilities and housing.