MBIA Inc. — financial distress indicators
Financial-health summary
MBIA Inc.'s reported numbers place it in the 'Watch' financial-health band (distress score 37/100). The main indicators are negative book equity and latest year loss-making. In its favour: operating cash flow is positive over the latest 12 months.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Equity is zero or negative.
A financial institution with no equity cushion is technically insolvent; regulators intervene before this point.
Net income is negative.
Losses at a financial institution consume regulatory capital directly.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Operating cash flow is positive over the latest 12 months.
- Revenue still growing (+90% YoY).
📰 Recent news scan
- MBIA (MBI) Q2 2026 Earnings Call TranscriptYahoo Finance · 2026-08-14
- MBIA Inc. Q2 2026 Earnings Call SummaryYahoo Finance · 2026-08-07
- MBIA (MBI) Reports Q2 Loss, Tops Revenue EstimatesYahoo Finance · 2026-08-06
- MBIA (MBI) Q1 2026 Earnings Call TranscriptYahoo Finance · 2026-06-01
- MBIA Inc (MBI) Q1 2026 Earnings Call Highlights: Navigating Financial Challenges with Strategic ...Yahoo Finance · 2026-05-09
- MBIA (MBI) Reports Q1 Loss, Beats Revenue EstimatesYahoo Finance · 2026-05-07
⚖️ U.S. legal pathway — state insurance receivership
- Insurance companies are excluded from Title 11 (§109(b)(2)); they are rehabilitated or liquidated by the state insurance commissioner.
- State guaranty associations protect policyholders up to statutory limits; shareholders rank last.
- The listed holding company can still file Chapter 11. Warning signs: risk-based capital ratios near action levels, reserve deficiencies, catastrophe losses.
Frequently asked questions
What do MBIA Inc.'s financial-health indicators show?
As of 2026-10-08, MBIA Inc.'s public financial data places it in the 'Watch' band with a distress score of 37/100, driven by negative book equity and latest year loss-making. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is MBIA Inc.'s financial distress score?
37/100 ('Watch').
What works in MBIA Inc.'s favour?
Operating cash flow is positive over the latest 12 months. Revenue still growing (+90% YoY).
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Insurance companies with distress indicators
- Porch Group, Inc. (PRCH)Watch 43/100
- Oxbridge Re Holdings Limited (OXBR)Watch 40/100
- Reliance Global Group, Inc. (EZRA)Watch 39/100
- Presurance Holdings, Inc. (PRHI)Watch 36/100
- Goosehead Insurance, Inc. (GSHD)Watch 35/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.