The following discussion and analysis of financial condition and results of operations of MBIA Inc. should be read in conjunction with the other sections of our Annual Report on Form 10-K for the year ended December 31, 2025 and the consolidated financial statements and notes thereto included in this Form 10-Q. In addition, this discussion and analysis of financial condition and results of operations includes statements of the opinion of MBIA Inc.’s management which may be forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. Refer to “Risk Factors” in Part II, Item 1A and “Forward-Looking and Cautionary Statements” and “Risk Factors” in Part I, Item 1A of MBIA Inc.’s Annual Report on Form 10-K for the year ended December 31, 2025 for a further discussion of risks and uncertainties. OVERVIEW MBIA Inc., together with its consolidated subsidiaries, (collectively, “MBIA”, the “Company”, “we”, “us”, or “our”) operates within the financial guarantee insurance industry. MBIA manages its business within three operating segments: 1) United States (“U.S.”) public finance insurance; 2) corporate; and 3) international and structured finance insurance. Our U.S. public finance insurance portfolio is managed through National Public Finance Guarantee Corporation (“National”), our corporate segment is managed through MBIA Inc. and several of its subsidiaries, including our service company, MBIA Services Corporation (“MBIA Services”), and our international and structured finance insurance business is managed through MBIA Insurance Corporation and its subsidiaries (“MBIA Corp.”). National’s primary objectives are to maximize the performance of its existing insured portfolio through effective surveillance and remediation activity and effectively manage its investment portfolio. Our corporate segment consists of general corporate activities, including providing support services to MBIA’s operating subsidiaries and asset and capital management. MBIA Corp.’s primary objectives are to satisfy all claims by its policyholders and to maximize future recoveries, if any, for its surplus note holders, and then its preferred stock holders. MBIA Corp. is executing this strategy by, among other things, taking steps to maximize the collection of recoveries and reducing and mitigating potential losses on its insurance exposures. We do not expect National or MBIA Corp. to write new financial guarantee policies outside of remediation related activities. Change in Filer Status Based on the Company's filer status determination pursuant to Rule 12b-2 of the Exchange Act as of June 30, 2025, using the Company's public float as of that date and total revenues for the year ended December 31, 2024, the Company determined that it qualifies as a smaller reporting company and a non-accelerated filer. As a result, the Company will be subject to the applicable reporting requirements for these classifications, including eligibility for scaled disclosure requirements, an exemption from the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, and an extended filing timeline for certain reports. This change in filer status was effective beginning with our Form 10-Q for the quarterly period ended March 31, 2026. The Company is currently evaluating the extent to which it will utilize the scaled disclosure accommodations available to it as a smaller reporting company and non-accelerated filer in its future filings. Economic Environment Recent indicators suggest that U.S. economic activity has been expanding at a solid pace despite elevated uncertainty, in part, due to the conflict in the Middle East. The unemployment rate has been little changed in recent months and job gains have kept pace with the workforce. Inflation remains elevated. The Federal Open Market Committee (“FOMC”) seeks to achieve maximum employment and 2% inflation over the longer run and at its most recent meeting, the FOMC maintained its federal funds rate target range at 3.50% to 3.75%. Economic and financial market trends could impact the Company’s financial results. Economic improvement at the state and local level strengthens the credit quality of the issuers of our insured municipal bonds, improves the performance of our insured U.S. public finance portfolio and could reduce the amount of National’s potential incurred losses. Higher interest rates could adversely affect the values of our investment portfolio, but increase investment portfolio yield and income, and decrease the present value of loss reserves. Lower interest rates could adversely affect investment portfolio yields and income, but increase the values of our investment portfolio. Lower interest rates could also adversely affect the present value of loss reserves. 42 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations OVERVIEW (continued) 2026 Business Developments The following is a summary of 2026 business developments: PREPA •On January 1, 2026, the Puerto Rico Electric Power Authority (“PREPA”) defaulted on scheduled debt service for National insured bonds and National paid gross claims in the aggregate of $11 million. As of June 30, 2026, National had $554 million of insured debt service outstanding related to PREPA. In addition, on July 1, 2026, PREPA defaulted on scheduled debt service for National insured bonds and National paid gross claims in the aggregate of $46 million. •On January 31, 2023, National entered into a restructuring support agreement (“PREPA RSA”) with the Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”), on behalf of itself and as the sole Title III representative of PREPA. A plan of adjustment for PREPA (the "Plan") and related disclosure statement was filed on February 9, 2023. Subsequently, both the Plan and PREPA RSA were amended. The Title III Court conducted confirmation hearings in March 2024. On June 12, 2024, the First Circuit Court of Appeals reversed Judge Swain's prior rulings and supported bondholder liens and claim amounts (the "Appeal Decision"). On June 26, 2024, the Oversight Board filed a petition for a First Circuit panel rehearing, and the Unsecured Creditors Committee ("UCC") filed an en banc appeal. On November 13, 2024, the First Circuit affirmed the Appeal Decision. On November 27, 2024, the Oversight Board filed a petition for further rehearing, and on December 31, 2024, the First Circuit denied the rehearing request. Following the Appeal Decision, the Oversight Board informed the Court, National and other parties that it intended to modify National’s settlement in a forthcoming amended Plan. Thereafter, National provided notice to the Oversight Board that National did not support the board's actions and that such actions constituted a breach and termination of the PREPA RSA, as amended. On January 29, 2025, the Court extended its litigation stay through March 24, 2025, and on March 3, 2025, the Court entered an order identifying key legal issues and requiring a joint proposed litigation schedule. On March 20, 2025, the Court set a briefing schedule on a Motion for Allowance of an Administrative Expense Claim (the "Administrative Claim Motion"). On June 11, 2025, the Court set June 30, 2025, as the deadline for discovery, and July 23, 2025, for oral arguments in the Administrative Claim Motion. Following the hearing, the Court reserved its decision on the legal issues and permitted the parties to continue resolution of discovery disputes. On August 8, 2025, the Court entered an order suspending deadlines for the Administrative Claim Motion until further order of the Court. On October 22, 2025, the Court ordered the parties to meet and confer on scheduling issues in the Administrative Claim Motion litigation and required they file a Joint Status Report by November 24, 2025. Following the filing of the Joint Status Report, the Court entered an order dated December 9, 2025, lifting the litigation stay to permit the parties to litigate motions to compel solely in connection with the Administrative Claim Motion. Bondholders filed their Motion to Compel on January 9, 2026 and the Oversight Board on January 23, 2026 filed its opposition. Bondholders filed their reply brief on February 6, 2026. On March 16, 2026, the Court denied the Bondholders' Administrative Claim Motion. Bondholders filed a notice of appeal on March 27, 2026 to the First Circuit Court of Appeals. On May 14, 2026, the Bondholders filed their appellate briefs. On May 21, 2026, thirteen U.S. States filed a combined Amici Curiae brief in support of the Bondholders' appeal. On July 10, 2026, the Oversight Board filed its appellate brief. Reply briefs were filed on July 31, 2026. On April 13, 2026, the Court entered an order lifting the litigation stay solely to permit Bondholders to prosecute their accounting counterclaim motion. On April 17, 2026, the Bondholders filed their revised motion and on April 28, 2026, the Oversight Board filed its answer. The parties are currently in the process of discovery on the accounting counterclaim. On June 30, 2026, the Oversight Board issued a media release outlining a settlement proposed to Bondholders offering $3 billion to current non-settling Bondholders, comprised of cash or issuance of new bonds, or a combination, or approximately 35% on Bondholders’ claims. In addition, the Oversight Board offered to negotiate a contingent value instrument based on actual increases of PREPA’s net cash flow from volumes of power sold above the projections of the 2025 PREPA Fiscal Plan. The Coop Group of Bondholders subsequently rejected the proposal. There is no assurance that a plan that is substantially similar in the treatment of National's claims and rights will ultimately be confirmed and become effective. In the event of a substantially different confirmed plan, National’s PREPA loss reserves and recoveries could be materially adversely affected. There is no assurance that a plan that is substantially similar in the treatment of National's claims and rights will ultimately be confirmed and become effective. In the event of a substantially different confirmed plan, National’s PREPA loss reserves and recoveries could be materially adversely affected. 43 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations OVERVIEW (continued) •Between August 1 and August 8, 2025, President Trump notified six Oversight Board members that their membership on the Oversight Board was terminated effective immediately. On September 18, 2025, three of the terminated Oversight Board members, Arthur Gonzalez, Andrew Biggs and Betty Rosa (the "Plaintiffs") sought reinstatement on the Oversight Board by filing injunctive, declaratory and legal relief (the "Termination Case"). On September 22, 2025, Plaintiffs also filed a Motion for Preliminary Injunction seeking restrictions on replacing them on the Oversight Board until the Court hears the underlying merits of their claims. On October 3, 2025, the District Court for the District of Puerto Rico granted Plaintiffs' Motion for Preliminary Injunction permitting the Plaintiffs to remain on the Oversight Board until a final hearing on the adequacy of the termination notice as well as the scope of executive authority. On December 30, 2025, the Court of Appeals for the First Circuit entered an order holding the Termination Case in abeyance until the court is notified that the Supreme Court has issued a decision in the Trump v. Cook case, heard by the Supreme Court on January 21, 2026. Following the issuance of the Cook and Slaughter decisions on June 29, 2026, the First Circuit requested the parties file motions in respect of further proceedings in the case by July 31, 2026. Motions were filed on July 31, 2026. •In July of 2026, National transferred approximately $30 million of PREPA bankruptcy claims to a custodian in exchange for tradeable custodial receipts (the "Custodial Receipts"). As owner of the Custodial Receipts, National continues to hold the same rights and is entitled to the same economic benefits associated with the transferred bankruptcy claims. As a result, the Company's estimated recovery values for these bankruptcy claims will be recorded within "Insurance loss recoverable" on the Company's consolidated balance sheets. National may, at its discretion, sell such Custodial Receipts to qualified buyers prior to a PREPA bankruptcy settlement in order to monetize subrogation of the related bankruptcy claims. Refer to the following “U.S. Public Finance Insurance Puerto Rico Exposures” section for additional information on our PREPA exposure. RESULTS OF OPERATIONS Summary of Consolidated Results The following table presents a summary of our consolidated financial results for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, In millions except for per share and share amounts 2026 2025 2026 2025 Total revenues $ 27 $ 23 $ 51 $ 37 Total expenses 70 79 135 155 Income (loss) from continuing operations before income taxes (43 ) (56 ) (84 ) (118 ) Provision (benefit) for income taxes - - - - Net income (loss) from continuing operations (43 ) (56 ) (84 ) (118 ) Income (loss) from discontinued operations, net of income taxes - - (1 ) - Net income (loss) (43 ) (56 ) (85 ) (118 ) Less: Net income (loss) attributable to noncontrolling interests 3 - 1 - Net income (loss) attributable to MBIA Inc. $ (46 ) $ (56 ) $ (86 ) $ (118 ) Net income (loss) per common share attributable to MBIA Inc. - basic and diluted $ (0.91 ) $ (1.12 ) $ (1.71 ) $ (2.40 ) Adjusted net income (loss) (1) $ (7 ) $ (8 ) $ (15 ) $ (16 ) Adjusted net income (loss) per diluted share (1) $ (0.14 ) $ (0.17 ) $ (0.30 ) $ (0.33 ) Weighted average basic and diluted common shares outstanding 50,197,412 49,543,258 49,997,922 48,952,068 ___________________ (1) - Adjusted net income (loss) and adjusted net income (loss) per diluted share are non-GAAP measures. Refer to the following Non-GAAP Adjusted Net Income (Loss) section for a discussion of adjusted net income (loss) and adjusted net income (loss) per diluted share and a reconciliation of GAAP net income (loss) to adjusted net income (loss) and GAAP net income (loss) per diluted share to adjusted net income (loss) per diluted share. 44 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS (continued) Three Months Ended June 30, 2026 vs. Three Months Ended June 30, 2025 Income (loss) from Continuing Operations Before Income Taxes The increase in consolidated total revenues for the three months ended June 30, 2026 compared with the same period of 2025 was principally due to favorable changes in foreign currency, partially offset by unfavorable changes from fair valuing investments. The three months ended June 30, 2026 included foreign currency gains of $1 million on euro-denominated liabilities due to the strengthening of the U.S. dollar against the euro in 2026. The three months ended June 30, 2025 included net foreign currency losses of $9 million on euro-denominated liabilities due to the weakening of the U.S. dollar against the euro in 2025. The three months ended June 30, 2026 included $2 million of gains from fair valuing investments compared with $5 million of gains for the same period of 2025. Consolidated total expenses for the three months ended June 30, 2026 included a losses and loss adjustment expense (“LAE”) expense of $9 million compared with losses and LAE expense of $8 million for the same period of 2025. Refer to the following “Losses and Loss Adjustment Expenses” sections of the U.S. Public Finance Insurance and International and Structured Finance Insurance segments for additional information on our losses and LAE. In addition, expenses of our consolidated VIEs decreased for the three months ended June 30, 2026 compared with the same period of 2025 primarily due to an $8 million reversal of previously recognized legal expenses. Six Months Ended June 30, 2026 vs. Six Months Ended June 30, 2025 Income (loss) from Continuing Operations Before Income Taxes The increase in consolidated total revenues for the six months ended June 30, 2026 compared with the same period of 2025 was principally due to favorable changes in foreign currency and net realized investment losses from sales of investments, partially offset by unfavorable changes in revenues from consolidated variable interest entities ("VIEs"). The six months ended June 30, 2026 included foreign currency gains of $3 million on euro-denominated liabilities due to the strengthening of the U.S. dollar against the euro in 2026. The six months ended June 30, 2025 included net foreign currency losses of $13 million on euro-denominated liabilities due to the weakening of the U.S. dollar against the euro in 2025 and foreign currency translation losses of $5 million reclassified from accumulated other comprehensive income ("AOCI") to net income (loss) due to the liquidation of a foreign subsidiary. The six months ended June 30, 2025 also included $6 million of net realized investment losses from the sales of investments with no comparable amount for the same period of 2026. Consolidated VIE revenue for the six months ended June 30, 2025 was a gain of $7 million with no comparable amount for the same period of 2026. Consolidated VIE revenue for the six months ended June 30, 2025 primarily related to a gain from a litigation trust we consolidated as a VIE. Consolidated total expenses for the six months ended June 30, 2026 included $6 million of losses and LAE compared with $16 million for the same period of 2025. This decrease in losses and LAE was primarily due to favorable changes on our insured first-lien residential mortgage-backed securities ("RMBS") exposure primarily related to the impact of changes in risk-free interest rates used to present value loss reserves. Refer to the following “Losses and Loss Adjustment Expenses” sections of the U.S. Public Finance Insurance and International and Structured Finance Insurance segments for additional information on our losses and LAE. In addition, expenses of our consolidated VIEs decreased for the six months ended June 30, 2026 compared with the same period of 2025 primarily due to an $8 million reversal of previously recognized legal expenses. Three and Six Months Ended June 30, 2026 vs. Three and Six Months Ended June 30, 2025 Provision for Income Taxes For the three and six months ended June 30, 2026 and 2025, our effective tax rate applied to our loss before income taxes was below the U.S. statutory tax rate of 21% due to the full valuation allowance on the changes in our net deferred tax asset, which included our net operating loss (“NOL”). As of June 30, 2026 and December 31, 2025, the Company’s valuation allowance against its net deferred tax asset was $1.4 billion. Notwithstanding the full valuation allowance on its net deferred tax asset, the Company believes that it may be able to use some of its net deferred tax asset before the expirations associated with that asset based upon expected earnings at National. Accordingly, the Company will continue to re-evaluate its net deferred tax asset on a quarterly basis. There is no assurance that the Company will reverse any of its valuation allowance on its net deferred tax asset in the future. Refer to “Note 8: Income Taxes” in the Notes to Consolidated Financial Statements for a further discussion of income taxes, including the valuation allowance against the Company’s net deferred tax asset and its accounting for tax uncertainties. 45 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS (continued) Non-GAAP Adjusted Net Income (Loss) In addition to our results prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), we also analyze the operating performance of the Company using adjusted net income (loss) and adjusted net income (loss) per diluted common share, both non-GAAP measures. Since adjusted net income (loss) is used by management to assess performance and make business decisions, we consider adjusted net income (loss) and adjusted net income (loss) per diluted common share fundamental measures of periodic financial performance which are useful in understanding our results. Adjusted net income (loss) and adjusted net income (loss) per diluted common share are not substitutes for net income (loss) and net income (loss) per diluted common share determined in accordance with GAAP, and our definitions of adjusted net income (loss) and adjusted net income (loss) per diluted common share may differ from those used by other companies. Adjusted net income (loss) and adjusted net income (loss) per diluted common share include the after-tax results of the Company and remove the after-tax results of our international and structured finance insurance segment, comprising the results of MBIA Corp. and its discontinued operations and noncontrolling interest and income taxes. Given MBIA Corp.’s capital structure and business prospects, we do not expect its financial performance to have a material economic impact on MBIA Inc. We also adjust the following: •Mark-to-market gains (losses) on financial instruments – We remove the impact of mark-to-market gains (losses) on financial instruments such as interest rate swaps, investment securities and hybrid financial instruments. These amounts fluctuate based on market interest rates, credit spreads and other market factors. •Foreign exchange gains (losses) – We remove foreign exchange gains (losses) on the remeasurement of certain assets and liabilities and transactions in non-functional currencies. Given the possibility of volatility in foreign exchange markets, we exclude the impact of foreign exchange gains (losses) to provide a measurement of comparability of adjusted net income (loss). •Net realized investment gains (losses), impaired securities and extinguishment of debt – We remove realized gains (losses) on the sale of investments, net investment losses related to impairment of securities and net gains (losses) on extinguishment of debt since the timing of these transactions are subject to management’s assessment of market opportunities and conditions and capital liquidity positions. •Income taxes –We apply a zero effective tax rate for federal income tax purposes to our pre-tax adjustments, if applicable, consistent with our consolidated effective tax rate. 46 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS (continued) The following table presents our adjusted net income (loss) and adjusted net income (loss) per diluted common share and provides a reconciliation of GAAP net income (loss) to adjusted net income (loss) for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, In millions except share and per share amounts 2026 2025 2026 2025 Net income (loss) attributable to MBIA Inc. $ (46 ) $ (56 ) $ (86 ) $ (118 ) Less: adjusted net income (loss) adjustments: Income (loss) from discontinued operations and noncontrolling interests (3 ) - (2 ) - Income (loss) before income taxes of our international and structured finance insurance segment and eliminations (37 ) (41 ) (71 ) (88 ) Adjustments to income before income taxes of our U.S. public finance insurance and corporate segments: Mark-to-market gains (losses) on financial instruments (1) - 3 (1 ) 4 Foreign exchange gains (losses) (1) 1 (9 ) 3 (12 ) Net realized investment gains (losses) - (1 ) - (6 ) Adjusted net income adjustment to the (provision) benefit for income tax - - - - Adjusted net income (loss) $ (7 ) $ (8 ) $ (15 ) $ (16 ) Adjusted net income (loss) per diluted common share (2) $ (0.14 ) $ (0.17 ) $ (0.30 ) $ (0.33 ) ___________________ (1) - Reported within “Net gains (losses) on financial instruments at fair value and foreign exchange” on the Company’s consolidated statements of operations. (2) - Adjusted net income (loss) per diluted common share is calculated by taking adjusted net income (loss) divided by the GAAP weighted average number of diluted common shares outstanding. Book Value Adjustments Per Share In addition to GAAP book value per share, for internal purposes management also analyzes adjusted book value (“ABV”) per share, changes to which we view as an important indicator of financial performance. ABV is also used by management in certain components of management’s compensation. Since many of the Company’s investors and analysts continue to use ABV to evaluate MBIA’s share price and as the basis for their investment decisions, we present GAAP book value per share as well as the individual adjustments used by management to calculate its internal ABV metric. Management adjusts GAAP book value to remove the book value of MBIA Corp., its discontinued operations, and for certain items which the Company believes will reverse from GAAP book value through GAAP earnings and comprehensive income, as well as add in the impact of certain items which the Company believes will be realized in GAAP book value in future periods. The Company has limited such adjustments to those items that it deems to be important to fundamental value and performance and for which the likelihood and amount can be reasonably estimated. The following provides a description of management’s adjustments to GAAP book value: •Negative Book value of MBIA Corp. – We remove the negative book value of MBIA Corp., including its discontinued operations based on our view that given MBIA Corp.’s current financial condition, the regulatory regime in which it operates, the priority given to its policyholders, surplus note holders and preferred stock holders with respect to the distribution of assets, and its legal structure, it is not and will not likely be in a position to upstream any economic benefit to MBIA Inc. Further, MBIA Inc. does not face any material financial liability arising from MBIA Corp. •Net unrealized (gains) losses on available-for-sale (“AFS”) securities excluding MBIA Corp. – We remove net unrealized gains and losses on AFS securities recorded in AOCI income since they will reverse from GAAP book value when such securities mature. Gains and losses from sales and impairments of AFS securities are recorded in book value through earnings. •Net unearned premium revenue in excess of expected losses of National - We include net unearned premium revenue in excess of expected losses. Net unearned premium revenue in excess of expected losses consists of the financial guarantee unearned premium revenue of National in excess of expected insurance losses, net of reinsurance and deferred acquisition costs. In accordance with GAAP, a loss reserve on a financial guarantee policy is only recorded when expected losses exceed the amount of unearned premium revenue recorded for that policy. As a result, we only add to GAAP book value the amount of unearned premium revenue in excess of expected losses for each policy in order to reflect the full amount of our expected losses. The Company’s net unearned premium revenue will be recognized in GAAP book value in future periods, however, actual amounts could differ from estimated amounts due to such factors as credit defaults and policy terminations, among others. 47 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS (continued) Since the Company has a full valuation allowance against its net deferred tax asset and a zero consolidated effective tax rate, the book value per share adjustments reflect a zero effective tax rate. The following table provides the Company’s GAAP book value per share and management’s adjustments to book value per share used in our internal analysis: As of June 30, As of December 31, In millions except share and per share amounts 2026 2025 Total shareholders' equity of MBIA Inc. $ (2,326 ) $ (2,237 ) Common shares outstanding 51,016,000 50,510,250 GAAP book value per share $ (45.58 ) $ (44.27 ) Management's adjustments described above: Remove negative book value per share of MBIA Corp. (54.26 ) (53.35 ) Remove net unrealized gains (losses) on available-for-sale securities included in other comprehensive income (loss) (2.42 ) (2.34 ) Include net unearned premium revenue in excess of expected losses 1.94 2.10 U.S. Public Finance Insurance Segment Our U.S. public finance insurance portfolio is managed through National. The financial guarantees issued by National provide unconditional and irrevocable guarantees of the payment of the principal of, and interest or other amounts owing on, insured obligations when due or, in the event National has exercised, at its discretion, the right to accelerate the payment under its policies upon the acceleration of the underlying insured obligations due to default or otherwise. National’s guarantees insure municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utility districts, airports, healthcare institutions, higher educational facilities, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. Municipal bonds and privately issued bonds used for the financing of public purpose projects are generally supported by taxes, assessments, user fees or tariffs related to the use of these projects, lease payments or other similar types of revenue streams. As of June 30, 2026, National had total insured gross par outstanding of $20.8 billion. National continues to monitor and remediate its existing insured portfolio and has pursued and may continue to pursue other transactions that could enhance shareholder value. Regarding its insured portfolio, Puerto Rico has been experiencing significant fiscal stress and constrained liquidity. Refer to the “U.S. Public Finance Insurance Puerto Rico Exposures” section for additional information on our PREPA exposure. In addition to Puerto Rico, some state and local governments and territory obligors that National insures are experiencing financial and budgetary stress which could lead to an increase in defaults by such entities on the payment of their obligations and, while such stress has not yet occurred materially, losses or impairments on a greater number of the Company’s insured transactions. We continue to monitor and analyze these situations and other stressed credits closely, and the overall extent and duration of stress affecting our insured credits remains uncertain. National has contributed to the Company’s NOL carryforward, which is used in the calculation of our consolidated income taxes. If National generates taxable income in the future, it is not expected to make any tax payments under our tax sharing agreement until its NOL carryforward is fully utilized. 48 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS (continued) The following table presents our U.S. public finance insurance segment results for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Percent Change Six Months Ended June 30, Percent Change In millions 2026 2025 2026 2025 Net premiums earned $ 6 $ 7 -14 % $ 12 $ 13 -8 % Net investment income 15 15 - % 30 30 - % Net realized investment gains (losses) - (1 ) -100 % - (6 ) -100 % Net gains (losses) on financial instruments at fair value and foreign exchange 1 1 - % (1 ) 1 n/m Fees and reimbursements - 1 -100 % - 2 -100 % Total revenues 22 23 -4 % 41 40 3 % Losses and loss adjustment 5 6 -17 % 7 9 -22 % Amortization of deferred acquisition costs 3 1 n/m 4 3 33 % Operating expenses 6 9 -33 % 18 21 -14 % Total expenses 14 16 -13 % 29 33 -12 % Income (loss) from continuing operations before income taxes $ 8 $ 7 14 % $ 12 $ 7 71 % _______________ n/m - Percent change not meaningful. NET PREMIUMS EARNED Net premiums earned on financial guarantees represent gross premiums earned net of premiums ceded to reinsurers, and include scheduled premium earnings and premium earnings from refunded issues. Refunding activity over the past several years has accelerated premium earnings in prior years and reduced the amount of scheduled premiums that would have been earned in the current year. Refunding activity can vary significantly from period to period based on issuer refinancing behavior. Included in net premiums earned for the three months ended June 30, 2026 and 2025, were scheduled premiums earned of $5 million and $6 million, respectively. Included in net premiums earned for the six months ended June 30, 2026 and 2025, were scheduled premiums earned of $11 million and $12 million, respectively. NET REALIZED INVESTMENT GAINS (LOSSES) Net realized investment losses for the six months ended June 30, 2025 primarily related to sales of securities from the ongoing management of our U.S. public finance investment portfolio, including to generate liquidity to pay claims. LOSSES AND LOSS ADJUSTMENT EXPENSES For the three and six months ended June 30, 2026, losses and LAE incurred was primarily related to our PREPA exposure, which was driven by LAE and the accretion of net reserves, partially offset by an increase in risk-free discount rates, which caused loss reserves, net of recoveries, to decline. For the three and six months ended June 30, 2025, losses and LAE incurred was primarily due to extending the timing of a settlement on our PREPA exposure. Refer to the following “U.S. Public Finance Insurance Puerto Rico Exposures” section for additional information on our PREPA exposures. The following table presents information about our U.S. public finance insurance loss recoverable asset and loss and LAE reserves liabilities as of June 30, 2026 and December 31, 2025: June 30, December 31, Percent In millions 2026 2025 Change Assets: Insurance loss recoverable $ 29 $ 22 32 % Reinsurance recoverable on paid and unpaid losses (1) 13 13 - % Liabilities: Loss and LAE reserves 213 219 -3 % Insurance loss recoverable - ceded (2) 2 1 100 % Net reserve (salvage) $ 173 $ 185 -6 % (1) - Reported within "Other assets" on our consolidated balance sheets. (2) - Reported within "Other liabilities" on our consolidated balance sheets. Insurance loss recoverable as of June 30, 2026 increased compared with December 31, 2025 primarily due to reclassifying recoveries from loss and LAE reserve as a result of claims paid on a lease-backed transaction, partially offset by recovery collections. Loss and LAE reserves as of June 30, 2026 decreased compared with December 31, 2025 primarily due to January 2026 PREPA claim payments and an increase in risk-free rates, partially offset by accretion related to PREPA. Refer to “Note 5: Loss and Loss Adjustment Expense Reserves” in the Notes to Consolidated Financial Statements for additional information related to the Company’s insurance loss reserves and recoverables and loss reserving process. 49 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS (continued) OPERATING EXPENSES Our U.S. public finance insurance segment's operating expenses primarily consist of inter-segment service charge from the corporate segment for support services. For the three months ended June 30, 2026 and 2025, the inter-segment service charge was $7 million. For the six months ended June 30, 2026 and 2025, the inter-segment service charge was $16 million and $17 million, respectively. INSURED PORTFOLIO EXPOSURE Financial guarantee insurance companies use a variety of approaches to assess the underlying credit risk profile of their insured portfolios. National uses both an internally developed credit rating system as well as third-party rating sources in the analysis of credit quality measures of its insured portfolio. In evaluating credit risk, we obtain, when available, the underlying rating(s) of the insured obligation before the benefit of National’s insurance policy from nationally recognized rating agencies, Moody’s Investor Services (“Moody’s”) and Standard & Poor’s Financial Services LLC (“S&P”). Other companies within the financial guarantee industry may report credit quality information based upon internal ratings that would not be comparable to our presentation. We maintain internal ratings on our entire portfolio, and our ratings may be higher or lower than the underlying ratings assigned by Moody’s or S&P. The following table presents the credit quality distribution of National’s U.S. public finance outstanding gross par insured as of June 30, 2026 and December 31, 2025. Capital appreciation bonds are reported at the par amount at the time of issuance of the insurance policy. All ratings are as of the period presented and represent S&P underlying ratings, where available. If transactions are not rated by S&P, a Moody’s equivalent rating is used. If transactions are not rated by either S&P or Moody’s, an internal equivalent rating is used. Gross Par Outstanding In millions June 30, 2026 December 31, 2025 Rating Amount % Amount % AAA $ 874 4.2 % $ 931 4.2 % AA 10,131 48.7 % 10,437 46.8 % A 6,348 30.6 % 7,352 32.9 % BBB 1,918 9.2 % 2,014 9.0 % Below investment grade 1,512 7.3 % 1,578 7.1 % Total $ 20,783 100.0 % $ 22,312 100.0 % U.S. Public Finance Insurance Puerto Rico Exposures On May 3, 2017, the Oversight Board certified and filed a petition under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act for Puerto Rico with the District Court of Puerto Rico thereby commencing a bankruptcy-like case for the Puerto Rico Commonwealth GO ("GO"). Under separate petitions, the Oversight Board subsequently commenced Title III proceedings for the Puerto Rico Sales Tax Financing Corporation (“COFINA”), Puerto Rico Highway and Transportation Authority ("HTA"), PREPA and the Public Buildings Authority (“PBA”) on May 5, 2017, May 21, 2017, July 2, 2017 and September 27, 2019, respectively. On February 4, 2019, the District of Puerto Rico entered the order confirming the Third Amended Title III Plan of Adjustment for COFINA. The Title III cases for GO and PBA were confirmed on January 18, 2022, and became effective on March 15, 2022. The confirmation hearing for the HTA Title III case was completed on August 17, 2022, and the confirmation order was entered on October 12, 2022, which became effective on December 6, 2022. As a result of prior defaults, various stays and the Title III cases, Puerto Rico failed to make certain scheduled debt service payments for National insured bonds. As a consequence, National has paid gross claims in the aggregate amount of $3.2 billion relating to GO, PBA, PREPA and HTA bonds through June 30, 2026, inclusive of the commutation payment and the additional payment in the amount of $66 million in 2019 related to COFINA and the GO and HTA acceleration and commutation payments of $277 million and $556 million, respectively, in 2022. Status of Puerto Rico’s Fiscal Plans On June 23, 2023, the Oversight Board filed a fiscal plan for PREPA for fiscal year 2023, which provided for approximately $2.4 billion of distributions to PREPA bondholders. The University of Puerto Rico (the "University") is not a debtor in Title III and continues to be current on its debt service payments. A standstill agreement with certain bondholders was replaced by an Amended and Restated Trust Agreement during 2025 that cured the remaining technical defaults and implemented monthly sinking-fund payments. National is not a party to the Amended and Restated Trust Agreement. As of June 30, 2026, National had $45 million of insured debt service outstanding related to the University. 50 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS (continued) PREPA National’s largest remaining exposure to Puerto Rico, by gross par outstanding, is to PREPA. On January 31, 2023, National entered into the PREPA RSA with the Oversight Board, on behalf of itself and as the sole Title III representative of PREPA. The Plan and related disclosure statement was filed on February 9, 2023. Subsequently, both the Plan and PREPA RSA were amended. The Title III Court conducted confirmation hearings in March 2024. On June 12, 2024, following the Appeal Decision affirming the Bondholder liens, the Oversight Board informed the Court that it intended to file an amendment to the Plan it believed would account for the changes required by the First Circuit opinion. Thereafter, National provided notice to the Oversight Board that National did not support the board's actions and that such actions constituted a breach and termination of the PREPA RSA, as amended. On June 26, 2024, the Oversight Board filed a petition for a First Circuit panel rehearing, and the UCC filed an en banc appeal. On November 13, 2024, the First Circuit affirmed its decision. On November 27, 2024, the Oversight Board filed a petition for further rehearing, and on December 31, 2024, the First Circuit denied the rehearing request. On January 29, 2025, the Court extended its litigation stay through March 24, 2025, and on March 3, 2025, entered an order identifying key legal issues and requiring a joint proposed litigation schedule. On March 20, 2025, the Court set a briefing schedule on a Motion for Allowance of an Administrative Expense Claim (the "Administrative Claim Motion"). On June 11, 2025, the Court set June 30, 2025, as the deadline for discovery, and July 23, 2025, for oral arguments in the Administrative Claim Motion. Following the hearing, the Court reserved its decision on the legal issues and permitted the parties to continue resolution of discovery disputes. On August 8, 2025, the Court entered an order suspending deadlines for the Administrative Claim Motion until further order of the Court. On October 22, 2025, the Court ordered the parties to meet and confer on scheduling issues in the Administrative Claim Motion litigation and required they file a Joint Status Report by November 24, 2025. Following the filing of the Joint Status Report, the Court entered an order dated December 9, 2025, lifting the litigation stay to permit the parties to litigate motions to compel solely in connection with the Administrative Claim Motion. Bondholders filed their Motion to Compel on January 9, 2026 and the Oversight Board on January 23, 2026, filed its opposition. Bondholders filed their reply brief on February 6, 2026. On March 16, 2026, the Court denied Bondholders' Motion for Allowance of an Administrative Expense Claim. Bondholders filed a notice of appeal on March 27, 2026 to the First Circuit Court of Appeals. On May 14, 2026, the Bondholders filed their appellate briefs. On May 21, 2026, thirteen U.S. States filed a combined Amici Curiae brief in support of the Bondholders' appeal. On July 10, 2026, the Oversight Board filed its appellate brief. Reply briefs were filed on July 31, 2026. On April 13, 2026, the Court entered an order lifting the litigation stay solely to permit Bondholders to prosecute their accounting counterclaim motion. On April 17, 2026, the Bondholders filed their revised motion and on April 28, 2026, the Oversight Board filed its answer. The parties are currently in the process of discovery on the accounting counterclaim. On June 30, 2026, the Oversight Board issued a media release outlining a settlement proposed to Bondholders offering $3 billion to current non-settling Bondholders, comprised of cash or issuance of new bonds, or a combination, or approximately 35% on Bondholders’ claims. In addition, the Oversight Board offered to negotiate a contingent value instrument based on actual increases of PREPA’s net cash flow from volumes of power sold above the projections of the 2025 PREPA Fiscal Plan. The Coop Group of Bondholders subsequently rejected the proposal. Between August 1 and August 8, 2025, President Trump notified six Oversight Board members that their membership on the Oversight Board was terminated effective immediately. On September 18, 2025, the Plaintiffs sought reinstatement on the Oversight Board by filing injunctive, declaratory and legal relief. On September 22, 2025, Plaintiffs also filed a Motion for Preliminary Injunction seeking restrictions on replacing them on the Oversight Board until the Court hears the underlying merits of their claims. On October 3, 2025, the District Court for the District of Puerto Rico granted Plaintiffs' Motion for Preliminary Injunction permitting the Plaintiffs to remain on the Oversight Board until a final hearing on the adequacy of the termination notice as well as the scope of executive authority. On December 30, 2025, the Court of Appeals for the First Circuit entered an order holding the Termination Case in abeyance until the court is notified that the Supreme Court has issued a decision in the Trump v. Cook case, heard by the Supreme Court on January 21, 2026. Following the issuance of the Cook and Slaughter decisions on June 29, 2026, the First Circuit requested the parties file motions in respect of further proceedings in the case no later than July 31, 2026. Motions were filed on July 31, 2026. On June 22, 2020, the Oversight Board and the Puerto Rico P3 Authority announced an agreement and contract with LUMA Energy, LLC (“LUMA”) which called for LUMA to take full responsibility for the operation and maintenance of PREPA’s transmission and distribution system for a 15- year period following a transition period. On January 24, 2023, the Oversight Board and the Puerto Rico P3 Authority announced an agreement with Genera PR, LLC ("Genera") to take full responsibility for the operation and maintenance of PREPA’s electric generation assets for a 10 year period following a similar transition period. Each of the LUMA and Genera transition periods will end upon the conclusion of the PREPA Title III proceeding. PREPA retains ownership of the system. 51 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS (continued) The following table presents our scheduled gross debt service due on our PREPA insured exposures as of June 30, 2026, for the six months ending December 31, 2026, for each of the subsequent four years ending December 31, and thereafter: Six Months Ending December 31, In millions 2026 2027 2028 2029 2030 Thereafter Total Puerto Rico Electric Power Authority (PREPA) $ 46 $ 20 $ 20 $ 89 $ 89 $ 290 $ 554 Corporate Segment Our corporate segment consists of general corporate activities, including providing support services to MBIA Inc.’s subsidiaries and asset and capital management. Support services are provided by our service company, MBIA Services, and include, among others, management, legal, accounting, treasury, information technology, and insurance portfolio surveillance, on a fee-for-service basis. Capital management includes activities related to servicing obligations issued by MBIA Inc. and its subsidiary, MBIA Global Funding, LLC (“GFL”). MBIA Inc. issued debt to finance the operations of the MBIA group. GFL raised funds through the issuance of medium-term notes (“MTNs”) with varying maturities, which were in turn guaranteed by MBIA Corp. GFL lent the proceeds of these MTN issuances to MBIA Inc. MBIA Inc. provided customized investment agreements, guaranteed by MBIA Corp., for bond proceeds and other public funds for such purposes as construction, loan origination, escrow and debt service or other reserve fund requirements. The Company ceased issuing new MTNs and investment agreements and the outstanding liability balances and corresponding asset balances have declined over time as liabilities matured, terminated, were called or repurchased. All of the debt within the corporate segment is managed collectively and is serviced by available liquidity. The following table summarizes the consolidated results of our corporate segment for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Percent Change Six Months Ended June 30, Percent Change In millions 2026 2025 2026 2025 Net investment income $ 5 $ 6 -17 % $ 11 $ 13 -15 % Net gains (losses) on financial instruments at fair value and foreign exchange 7 (3 ) n/m 8 (8 ) n/m Fees 10 11 -9 % 22 25 -12 % Total revenues 22 14 57 % 41 30 37 % Operating expenses 19 16 19 % 32 29 10 % Interest expense 16 18 -11 % 33 36 -8 % Total expenses 35 34 3 % 65 65 - % Income (loss) from continuing operations before income taxes $ (13 ) $ (20 ) -35 % $ (24 ) $ (35 ) -31 % ____________________ n/m - Percent change not meaningful. NET GAINS (LOSSES) ON FINANCIAL INSTRUMENTS AT FAIR VALUE AND FOREIGN EXCHANGE The three and six months ended June 30, 2026 included foreign currency revaluation gains of $1 million and $3 million, respectively, on euro-denominated MTN liabilities compared with foreign currency losses of $9 million and $13 million, respectively, on these liabilities for the same periods of 2025. These changes were due to the U.S. dollar strengthening against the euro in 2026 compared with the U.S. dollar weakening against the euro in 2025. FEES Corporate segment fees consist entirely of fees paid by our other segments for services provided. The decrease in fees for the six months ended June 30, 2026 compared with the same period of 2025 was due to lower inter-segment service charges to the other segments. OPERATING EXPENSE Changes in operating expenses for the three and six months ended June 30, 2026 compared with the same periods of 2025 were primarily due to changes in compensation expense related to our non-qualified deferred compensation plan. International and Structured Finance Insurance Segment Our international and structured finance insurance portfolio is managed through MBIA Corp. The financial guarantees issued by MBIA Corp. generally provide unconditional and irrevocable guarantees of the payment of the principal of, and interest or other amounts owing on, non-U.S. public finance and global structured finance insured obligations when due or, in the event MBIA Corp. has the right, at its discretion, to accelerate insured obligations upon default or otherwise. 52 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS (continued) MBIA Corp. insures sovereign-related and sub- sovereign bonds, utilities, privately issued bonds used for the financing of projects that include toll roads, bridges, public transportation facilities, and other types of infrastructure projects serving a substantial public purpose. MBIA Corp. also insures structured finance and asset-backed obligations repayable from expected cash flows generated by a specified pool of assets, such as residential and commercial mortgages, consumer loans and structured settlements. MBIA Insurance Corporation insures the investment agreements written by MBIA Inc., and if MBIA Inc. were to have insufficient assets to pay amounts due upon maturity or termination, MBIA Insurance Corporation would be required to make such payments under its insurance policies. MBIA Insurance Corporation also insures debt obligations of GFL and obligations under certain types of derivative contracts. As of June 30, 2026, MBIA Corp.’s total insured gross par outstanding was $1.8 billion. In addition, MBIA Corp. consolidates insured transactions as VIEs if it determines it is the primary beneficiary, and deconsolidates such VIEs when it is no longer the primary beneficiary. MBIA Corp. has contributed to the Company’s NOL carryforward, which is used in the calculation of our consolidated income taxes. If MBIA Corp. becomes profitable, it is not expected to make any tax payments under our tax sharing agreement. Based on MBIA Corp.’s current projected earnings and our expectation that it will not write new business outside of remediation activities, we believe it is unlikely that MBIA Corp. will generate significant income in the near future. As a result of MBIA Corp.’s capital structure and business prospects, we do not expect its financial performance to have a material economic impact on MBIA Inc. The following table presents our international and structured finance insurance segment results for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Percent Change Six Months Ended June 30, Percent Change In millions 2026 2025 2026 2025 Net premiums earned $ 2 $ 2 - % $ 3 $ 4 -25 % Net investment income 3 3 - % 6 6 - % Net gains (losses) on financial instruments at fair value and foreign exchange (5 ) - n/m (4 ) (10 ) -60 % Fees and reimbursements 1 1 - % 3 3 - % Other net realized gains (losses) - - - % (1 ) - n/m Revenues of consolidated VIEs: Other net realized gains (losses) - - - % - 7 -100 % Total revenues 1 6 - % 7 10 -30 % Losses and loss adjustment (benefit) 4 2 100 % (1 ) 7 -114 % Amortization of deferred acquisition costs 1 2 -50 % 2 3 -33 % Operating expenses 4 5 -20 % 8 10 -20 % Interest expense 37 36 3 % 73 74 -1 % Expenses of consolidated VIEs: Operating expenses (8 ) 3 n/m (4 ) 4 n/m Interest expense 1 - n/m 1 1 - % Total expenses 39 48 -19 % 79 99 -20 % Income (loss) from continuing operations before income taxes $ (38 ) $ (42 ) -10 % $ (72 ) $ (89 ) -19 % _______________ n/m - Percent change not meaningful. NET PREMIUMS EARNED Our international and structured finance insurance segment generates net premiums from insurance policies accounted for as financial guarantee contracts. Net premiums earned represent gross premiums earned net of premiums ceded to reinsurers, and include scheduled premium earnings and premium earnings from refunded issues. Certain premiums may be eliminated in our consolidated financial statements as a result of the Company consolidating VIEs. Net premiums earned were primarily non-U.S. NET GAINS (LOSSES) ON FINANCIAL INSTRUMENTS AT FAIR VALUE AND FOREIGN EXCHANGE The net losses for the three and six months ended June 30, 2026 were primarily due to fair value losses on investments for which the fair value option was elected. The net losses for the six months ended June 30, 2025 was primarily due to the reclassification of foreign currency translation losses from AOCI to net income (loss) due to the liquidation of a foreign subsidiary. 53 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS (continued) REVENUES OF CONSOLIDATED VIEs Consolidated VIE revenue for the six months ended June 30, 2025 related to a gain from a litigation trust we consolidated as a VIE. LOSSES AND LOSS ADJUSTMENT EXPENSES For the three months ended June 30, 2026, the losses and LAE incurred was principally driven by accretion on our insured RMBS transactions. For the six months ended June 30, 2026, the losses and LAE benefit primarily related to an increase in risk-free rates used to discount loss reserves, which reduced the present value of loss reserves, net of recoveries, partially offset by accretion of loss reserves on our insured RMBS transactions. For the three and six months ended June 30, 2025, losses and LAE incurred primarily related to a decrease in risk-free rates used to discount loss reserves, which caused the present value of loss reserves, net of recoveries to increase and accretion of loss reserves on our insured RMBS transactions. Due to the consolidation of VIEs, losses and LAE exclude $1 million of VIE-related losses and LAE expense for the six months ended June 30, 2025, as these amounts are eliminated upon consolidation. The following table presents information about our insurance loss recoverable and loss and LAE reserves as of June 30, 2026 and December 31, 2025: June 30, December 31, Percent In millions 2026 2025 Change Assets: Insurance loss recoverable $ 21 $ 21 - % Reinsurance recoverable on paid and unpaid losses (1) 1 1 - % Liabilities: Loss and LAE reserves 232 235 -1 % Insurance loss recoverable - ceded (2) - 1 -100 % Net reserve (salvage) $ 210 $ 214 -2 % _______________ (1) - Reported within "Other assets" on our consolidated balance sheets. (2) - Reported within "Other liabilities" on our consolidated balance sheets. The insurance loss recoverable primarily relates to reimbursement rights arising from the payment of claims on MBIA Corp.’s policies insuring certain RMBS transactions. Such payments also entitle MBIA Corp. to exercise certain rights and remedies to seek recovery of its reimbursement entitlements. Loss and LAE reserves as of June 30, 2026 decreased compared with December 31, 2025 primarily due to an increase in risk-free rates used to discount loss reserves, which reduced the present value of loss reserves, net of recoveries, and payments on our insured RMBS reserves. These decreases were partially offset by accretion of loss reserves on our insured RMBS transactions. Refer to “Note 5: Loss and Loss Adjustment Expense Reserves” in the Notes to Consolidated Financial Statements for a description of the Company’s loss reserving policy and additional information related to its insurance loss recoverables and loss and LAE reserves. OPERATING EXPENSES Our international and structured finance insurance segment's operating expenses primarily consist of inter-segment service charge from the corporate segment for support services. For the three months ended June 30, 2026 and 2025, the inter-segment service charges were $3 million. For the six months ended June 30, 2026 and 2025, the inter-segment service charge was $6 million and $7 million, respectively. INTEREST EXPENSE Interest expense relates to MBIA Corp.’s surplus notes. The interest rate on the surplus notes is 11.26% plus 3-month Secured Overnight Financing Rate plus 0.26161%. Refer to the following “Liquidity and Capital Resources” section for more information about MBIA Corp.’s surplus notes. EXPENSES OF CONSOLIDATED VIEs During the second quarter of 2026, we recorded an $8 million reversal of previously recognized legal expenses related to a consolidated VIE. Refer to “Note 12: Commitments and Contingencies” in the Notes to Consolidated Financial Statements for additional information. 54 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS (continued) International and Structured Finance Insurance Portfolio Exposures Credit Quality The credit quality of our international and structured finance insured portfolio is assessed in the same manner as our U.S. public finance insured portfolio. As of June 30, 2026 and December 31, 2025, 27% and 25%, respectively, of our international and structured finance insured portfolio was rated below investment grade, before giving effect to MBIA’s guarantees, based on MBIA’s internal ratings, which are generally more current than the underlying ratings provided by S&P and Moody’s for this subset of our insured portfolio. As of June 30, 2026, below investment grade insurance policies primarily represent our first-lien RMBS exposures. Selected Portfolio Exposures MBIA Corp. insures RMBS backed by residential mortgage loans, including first-lien alternative A-paper and subprime mortgage loans directly through RMBS securitizations. As of June 30, 2026 and December 31, 2025, MBIA Corp. had $485 million and $504 million, respectively, of first-lien RMBS gross par outstanding. These amounts include the gross par outstanding related to transactions that the Company consolidates under accounting guidance for VIEs and includes international exposure of $26 million and $28 million as of June 30, 2026 and December 31, 2025, respectively. We may experience considerable incurred losses in certain of these sectors. There can be no assurance that the loss reserves recorded in our financial statements will be sufficient or that we will not experience losses on transactions on which we currently have no loss reserves, in particular if the economy deteriorates. We may seek to purchase, directly or indirectly, obligations guaranteed by MBIA Corp. or seek to commute policies. The amount of insurance exposure reduced, if any, and the nature of any such actions will depend on market conditions, pricing levels from time to time, and other considerations. In some cases, these activities may result in a reduction of loss reserves, but in all cases they are intended to limit our ultimate losses and reduce the future volatility in loss development on the related policies. Our ability to purchase guaranteed obligations and to commute policies will depend on management’s assessment of available liquidity. Effective in the first quarter of 2022, MBIA Corp. was granted a permitted practice by the New York State Department of Financial Services (“NYSDFS”) related to the purchase of certain MBIA Corp.-insured securities with gross case base loss reserves (“Remediation Securities”). The Remediation Securities are acquired with the intent to terminate or commute the related insurance policies. MBIA Corp. may elect to sell the Remediation Securities to facilitate a termination or commutation. As of June 30, 2026 and December 31, 2025, MBIA Corp. did not hold any securities under this permitted practice. U.S. Public Finance and International and Structured Finance Reinsurance Reinsurance enables the Company to cede exposure for purposes of syndicating risk. The Company generally retains the right to reassume the business ceded to reinsurers under certain circumstances, including a reinsurer’s rating downgrade below specified thresholds. Currently, we do not intend to use reinsurance to decrease the insured exposure in our portfolio. As of June 30, 2026, the aggregate amount of insured par outstanding ceded by MBIA to reinsurers under reinsurance agreements was $447 million compared with $504 million as of December 31, 2025. Under National’s reinsurance agreement with MBIA Corp., if a reinsurer of MBIA Corp. is unable to pay claims ceded by MBIA Corp. on U.S. public finance exposure, National will assume liability for such ceded claim payments. For a further discussion of the Company’s reinsurance, refer to “Note 12: Insurance in Force” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. 55 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations LIQUIDITY AND CAPITAL RESOURCES Liquidity We use a liquidity risk management framework, the primary objective of which is to match liquidity resources to needs. We monitor our cash and liquid asset resources using cash forecasting and stress-scenario testing. Members of MBIA’s senior management meet regularly to review liquidity metrics, discuss contingency plans and establish target liquidity levels. We evaluate and manage liquidity on a legal-entity basis to take into account the legal, regulatory and other limitations on available liquidity resources within the enterprise. Consolidated Cash Flows Information about our consolidated cash flows by category is presented on our consolidated statements of cash flows. The following table summarizes our consolidated cash flows for the six months ended June 30, 2026 and 2025: Six Months Ended June 30, Percent Change In millions 2026 2025 2026 vs. 2025 Statement of cash flow data: Net cash provided (used) by: Operating activities $ (37 ) $ (42 ) -12 % Investing activities 87 138 -37 % Financing activities (4 ) (16 ) -75 % Cash and cash equivalents - beginning of period 71 87 -18 % Cash and cash equivalents - end of period $ 117 $ 167 -30 % Operating activities Net cash used by operating activities decreased for the six months ended June 30, 2026 compared with the same period of 2025 principally due to a decrease in payments to participants of our non-qualified deferred compensation plan in 2026, partially offset by lower proceeds from loss recoveries. Investing activities Net cash provided by investing activities decreased for the six months ended June 30, 2026 compared with the same period of 2025 primarily due to higher proceeds from sales of investments in 2025, partially offset by higher scheduled principal payments in 2026. Financing activities Net cash used by financing activities decreased for the six months ended June 30, 2026 compared with the same period of 2025 primarily due to decreases in stock repurchases related to employee stock award vesting and paydowns of VIE debt in 2026. Consolidated Investments The following discussion of investments, including references to consolidated investments, excludes investments reported under “Assets of consolidated variable interest entities” on our consolidated balance sheets. Investments of VIEs support the repayment of VIE obligations and are not available to settle obligations of MBIA. Fixed-maturity securities purchased by the Company are generally designated as AFS. Our AFS investments comprise high-quality fixed-income securities and short-term investments. The credit quality distribution of the Company’s AFS fixed-maturity investment portfolios, excluding short-term investments, are based on ratings from Moody’s and alternate ratings sources, such as S&P or the best estimate of the ratings assigned by the Company, have been used for a small percentage of securities that are not rated by Moody’s. As of June 30, 2026, the weighted average credit quality rating of the Company’s AFS fixed-maturity investment portfolio, excluding short-term investments, was Aa and 94% of the investments were investment grade. 56 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations LIQUIDITY AND CAPITAL RESOURCES (continued) The fair values of securities in the Company’s AFS fixed-maturity investment portfolio are sensitive to changes in interest rates. Decreases in interest rates generally result in increases in the fair values of fixed-maturity securities and increases in interest rates generally result in decreases in the fair values of fixed-maturity securities. Refer to “Note 2: Significant Accounting Policies” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on 10-K for the year ended December 31, 2025 and “Note 7: Investments” in the Notes to Consolidated Financial Statements for further information about our accounting policies and investments, respectively. Insured Investments MBIA’s consolidated investment portfolio includes investments that are insured by various financial guarantee insurers (“Insured Investments”), including investments insured by National and MBIA Corp. (“Company-Insured Investments”). When purchasing Insured Investments, the Company’s third-party portfolio manager independently assesses the underlying credit quality, structure and liquidity of each investment, in addition to the creditworthiness of the insurer. Insured Investments are diverse by sector, issuer and size of holding. The third-party portfolio manager assigns underlying ratings to Insured Investments without giving effect to financial guarantees based on underlying ratings assigned by Moody’s, or S&P when a rating is not published by Moody’s. When a Moody’s or S&P underlying rating is not available, the underlying rating is based on the portfolio manager’s best estimate of the rating of such investment. If the Company determines that declines in the fair values of third-party Insured Investments are related to credit loss, the Company will establish an allowance for credit losses and recognize the credit component through earnings. As of June 30, 2026, Insured Investments at fair value represented $139 million or 9% of consolidated investments, of which $129 million or 8% of consolidated investments were Company-Insured Investments. As of June 30, 2026, based on the actual or estimated underlying ratings of our consolidated investment portfolio, without giving effect to financial guarantees, the weighted average rating of only the Insured Investments in the investment portfolio would be in the below investment grade range. Without giving effect to the National and MBIA Corp. guarantees of the Company-Insured Investments in the consolidated investment portfolio, as of June 30, 2026, based on actual or estimated underlying ratings, the weighted average rating of the consolidated investment portfolio was in the A range. The weighted average rating of only the Company-Insured Investments was in the below investment grade range, and investments rated below investment grade in the Company-Insured Investments were 7% of the total consolidated investment portfolio. National Liquidity The primary sources of cash available to National are: •principal and interest receipts on assets held in its investment portfolio, including proceeds from the sale of assets; •recoveries associated with insurance loss payments; and •installment premiums. The primary uses of cash by National are: •loss and LAE payments on insured transactions; •capital distributions, such as payments of dividends; •payments of operating expenses; •investment portfolio asset purchases; and •funding share repurchases. As of June 30, 2026 and December 31, 2025, National held cash and investments of $1.3 billion and $1.2 billion, respectively, of which $205 million and $184 million, respectively, were cash and cash equivalents or short-term investments comprised of money market funds and municipal, U.S. agency and corporate bonds. 57 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations LIQUIDITY AND CAPITAL RESOURCES (continued) The insurance policies issued or reinsured by National provide unconditional and irrevocable guarantees of payments of the principal of, and interest or other amounts owing on, insured obligations when due. In the event of a default in payment of principal, interest or other insured amounts by an issuer, National generally promises to make funds available in the insured amount within one to three business days following notification. In some cases, the amount due can be substantial, particularly if the default occurs on a transaction to which National has a large notional exposure or on a transaction structured with large, bullet-type principal maturities. The U.S. public finance insurance segment’s financial guarantee contracts generally cannot be accelerated by a party other than the insurer which helps to mitigate liquidity risk in this segment. As of June 30, 2026, National had a stand-alone NOL carryforward of $507 million. If National becomes profitable, it is not expected to make any tax payments under our tax sharing agreement until it fully utilizes the available stand-alone NOL. Corporate Liquidity The primary sources of cash available to MBIA Inc. are: •capital distributions, such as dividends from National; •available cash and liquid assets not subject to collateral posting requirements; •principal and interest receipts on assets held in its investment portfolio, including proceeds from the sale of assets; and •access to capital markets. The primary uses of cash by MBIA Inc. are: •servicing outstanding unsecured corporate debt obligations and MTNs; •meeting collateral posting requirements under investment agreements; •payments of operating expenses; •funding share repurchases and debt buybacks; and •payment of dividends to shareholders. As of June 30, 2026 and December 31, 2025, the liquidity positions of MBIA Inc. were $337 million and $357 million, respectively, and included cash and cash equivalents and other investments comprised of money market funds and U.S. government and asset-backed bonds. Based on our projections of National’s and MBIA Corp.’s future earnings and losses, we expect that for the foreseeable future National will be the primary source of payments of annual dividends to MBIA Inc. There can be no assurance as to the amount and timing of any future dividends from National. We expect that National will also seek approval to pay additional special distributions to MBIA Inc. in future years. However, there can be no assurance whether or when the NYSDFS will approve such requests and, if the NYSDFS does approve such special distributions, in what amounts. Furthermore, any future dividend payments by MBIA Inc. to shareholders are within the absolute discretion of our board of directors and will depend on, among other things, the receipt of special distributions from National, our results of operations, working capital requirements, capital expenditure requirements, financial condition, level of indebtedness, contractual restrictions with respect to the payment of dividends, business opportunities, anticipated cash needs, provisions of applicable law and other factors that our board of directors may deem relevant. Refer to the following “Liquidity and Capital Resources-Capital Resources” section for additional information on payments of dividends. We do not expect MBIA Inc. to receive dividends from MBIA Corp. 58 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations LIQUIDITY AND CAPITAL RESOURCES (continued) Currently, a portion of the cash and securities held by MBIA Inc. is pledged against investment agreement liabilities and the Asset Swap (simultaneous repurchase and reverse repurchase agreement), which limits its ability to raise liquidity through asset sales of these securities. As the market value or rating eligibility of the assets pledged against MBIA Inc.’s obligations declines, we are required to pledge additional eligible assets in order to meet minimum required collateral amounts against these liabilities. To mitigate these risks, we seek to maintain cash and liquidity resources that we believe will be sufficient to make all payments due on our obligations and to meet other financial requirements, such as posting collateral. Contingent liquidity resources include sales of invested assets exposed to credit spread stress risk, which may occur at losses, accessing the capital markets, and an advances agreement with National. These actions, if taken, are expected to result in either additional liquidity or reduced exposure to adverse credit spread movements. There can be no assurance that these actions will be sufficient to fully mitigate this risk. MBIA Corp. Liquidity The primary sources of cash available to MBIA Corp. are: •recoveries associated with insurance loss payments; •principal and interest receipts on assets held in its investment portfolio, including the proceeds from the sale of assets; and •installment premiums and fees. The primary uses of cash by MBIA Corp. are: •loss and LAE or commutation payments on insured transactions; and •payments of operating expenses. As of June 30, 2026 and December 31, 2025, MBIA Corp. held cash and investments of $209 million, of which $22 million were cash and cash equivalents or liquid investments comprised of money market funds and municipal, U.S. Treasury and corporate bonds that were immediately available to MBIA Insurance Corporation. Insured obligations that require payment of scheduled debt service payments when due or payment in full of the principal insured at maturity could present liquidity risk for MBIA Corp., as any salvage recoveries from such payments could be recovered over an extended period of time after the payment is made. MBIA Corp. is generally required to satisfy claims within one to three business days and, as a result, seeks to identify potential claims in advance through our monitoring process. In order to monitor liquidity risk and maintain appropriate liquidity resources, we use the same methodology as we use to monitor credit quality and losses within our insured portfolio, including stress scenarios. Contractual Obligations For a discussion of the Company’s contractual obligations, refer to “Liquidity and Capital Resources - Liquidity - Contractual Obligations” in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. There were no material changes in contractual obligations since December 31, 2025. 59 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations LIQUIDITY AND CAPITAL RESOURCES (continued) Capital Resources The Company manages its capital resources to minimize its cost of capital while maintaining appropriate claims-paying resources (“CPR”) for National and MBIA Corp. The Company’s capital resources consist of total shareholders’ equity, total debt issued by MBIA Inc. for general corporate purposes and surplus notes issued by MBIA Corp. In addition to scheduled debt maturities, from time to time, we reduce unsecured debt through calls or repurchases. Also, MBIA Inc. may repurchase or National may purchase outstanding MBIA Inc. common shares when we deem it beneficial to our shareholders. Purchases or repurchases of debt and common stock may be made from time to time in the open market or in private transactions as permitted by securities laws and other legal requirements. We may also choose to redeem debt obligations where permitted by the relevant agreements. We seek to maintain sufficient liquidity and capital resources to meet the Company’s general corporate needs and debt service. Based on MBIA Inc.’s debt service requirements and expected operating expenses, we expect that MBIA Inc. will have sufficient resources to satisfy its debt obligations and its general corporate needs over time from distributions from National; however, there can be no assurance that MBIA Inc. will have sufficient resources to do so. In addition, the Company may also consider raising third-party capital. Refer to “Capital, Liquidity and Market Related Risk Factors” in Part I, Item 1A of our Form 10-K for the year ended December 31, 2025 and the “Liquidity and Capital Resources—Liquidity—Corporate Liquidity” section included herein for additional information about MBIA Inc.’s liquidity. Insurance Statutory Capital National and MBIA Insurance Corporation are incorporated and licensed in, and are subject to primary insurance regulation and supervision by the NYSDFS. National and MBIA Insurance Corporation each are required to file detailed annual financial statements, as well as interim financial statements, with the NYSDFS and similar supervisory agencies in each of the other jurisdictions in which it is licensed. These financial statements are prepared in accordance with New York State and with statutory accounting principles and assist our regulators in evaluating minimum standards of solvency, including minimum capital requirements, and business conduct. National – Statutory Capital and Surplus National had statutory capital of $968 million and $937 million, as of June 30, 2026 and December 31, 2025, respectively. For the six months ended June 30, 2026, National had statutory net income of $21 million. Refer to the “National — Claims - Paying Resources (Statutory Basis)” section below for additional information on National’s statutory capital. In order to maintain its New York State financial guarantee insurance license, National is required to maintain a minimum of $65 million of policyholders’ surplus. National is also required to maintain contingency reserves to provide protection to policyholders in the event of extreme losses in adverse economic events. As of June 30, 2026, National was in compliance with its aggregate risk limits under New York Insurance Law (“NYIL”), but was not in compliance with certain of its single risk limits. Since National does not comply with certain of its single risk limits, the NYSDFS could prevent National from transacting any new financial guarantee insurance business. NYIL regulates the payment of dividends by financial guarantee insurance companies and provides that such companies may not declare or distribute dividends except out of statutory earned surplus. National had positive earned surplus as of June 30, 2026 from which it may pay dividends, subject to limitations. Under NYIL, the sum of (i) the amount of dividends declared or distributed during the preceding 12-month period and (ii) the dividend to be declared may not exceed the lesser of (a) 10% of policyholders’ surplus, as reported in the latest statutory financial statements or (b) 100% of adjusted net investment income for such 12-month period (the net investment income for such 12-month period plus the excess, if any, of net investment income over dividends declared or distributed during the two-year period preceding such 12-month period), unless the Superintendent of the NYSDFS approves a greater dividend distribution based upon a finding that the insurer will retain sufficient surplus to support its obligations. 60 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations LIQUIDITY AND CAPITAL RESOURCES (continued) National – Claims-Paying Resources (Statutory Basis) CPR is a key measure of the resources available to National to pay claims under its insurance policies. CPR consists of total financial resources and reserves calculated on a statutory basis. CPR has been a common measure used by financial guarantee insurance companies to report and compare resources and continues to be used by MBIA’s management to evaluate changes in such resources. We have provided CPR to allow investors and analysts to evaluate National using the same measure that MBIA’s management uses to evaluate National’s resources to pay claims under its insurance policies. There is no directly comparable GAAP measure. Our calculation of CPR may differ from the calculation of CPR reported by other companies. National’s CPR and components thereto, as of June 30, 2026 and December 31, 2025 are presented in the following table: As of June 30, As of December 31, In millions 2026 2025 Policyholders' surplus $ 699 $ 656 Contingency reserves 269 281 Statutory capital 968 937 Unearned premiums 169 184 Present value of installment premiums (1) 90 91 Premium resources (2) 259 275 Net loss and LAE reserves (1) 180 191 Salvage reserves on paid claims (1) 27 20 Gross loss and LAE reserves 207 211 Total claims-paying resources $ 1,434 $ 1,423 ________________ (1) - Calculated using a discount rate of 4.72% as of June 30, 2026 and December 31, 2025. (2) - Includes financial guarantee and insured derivative related premiums. MBIA Insurance Corporation – Statutory Capital and Surplus MBIA Insurance Corporation had statutory capital of $106 million and $79 million as of June 30, 2026 and December 31, 2025, respectively. For the six months ended June 30, 2026, MBIA Insurance Corporation had statutory net income of $28 million. Refer to the “MBIA Insurance Corporation — Claims - Paying Resources (Statutory Basis)” section below for additional information on MBIA Insurance Corporation’s statutory capital. In order to maintain its New York State financial guarantee insurance license, MBIA Insurance Corporation is required to maintain a minimum of $65 million of policyholders’ surplus. In addition, under NYIL, MBIA Insurance Corporation is required to invest its minimum surplus and contingency reserves and 50% of its loss reserves and unearned premium reserves in certain qualifying assets. As of June 30, 2026, MBIA Insurance Corporation maintained its minimum requirement of policyholders’ surplus but did not have enough qualifying assets to support its contingency reserves and 50% of its loss reserves and unearned premium reserves. As of June 30, 2026, MBIA Insurance Corporation was in compliance with its aggregate risk limits under the NYIL, but was not in compliance with certain of its single risk limits. Since MBIA Insurance Corporation does not comply with its single risk limits, the NYSDFS could prevent MBIA Insurance Corporation from transacting any new financial guarantee insurance business. MBIA Insurance Corporation is also required to maintain contingency reserves to provide protection to policyholders in the event of extreme losses in adverse economic events. MBIA Corp. maintains a fixed $5 million of contingency reserves. Due to its significant earned surplus deficit, MBIA Insurance Corporation has not had the statutory capacity to pay dividends since December 31, 2009. Based on estimated future income, MBIA Insurance Corporation is not expected to have any statutory capacity to pay dividends. 61 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations LIQUIDITY AND CAPITAL RESOURCES (continued) The NYSDFS has not approved MBIA Insurance Corporation’s requests to make interest payments on MBIA Insurance Corporation’s Surplus Notes due January 15, 2033 (the “Surplus Notes”) since, and including, the January 15, 2013 interest payment. The NYSDFS has cited both MBIA Insurance Corporation’s remaining insured exposures, liquidity and financial condition as well as the availability of “free and divisible surplus” as the basis for such non-approvals. As of July 15, 2026, the most recent scheduled interest payment date, there was $1.8 billion of unpaid interest on the par amount outstanding of $953 million of the Surplus Notes. Under Section 1307 of the NYIL and the Fiscal Agency Agreement governing the surplus notes, Surplus Note payments may be made only with the prior approval by the NYSDFS and if MBIA Insurance Corporation has sufficient “Eligible Surplus”, or as we believe, “free and divisible surplus” as an appropriate calculation of “Eligible Surplus.” As of June 30, 2026, MBIA Insurance Corporation had “free and divisible surplus” of $83 million. There is no assurance the NYSDFS will approve Surplus Note payments, notwithstanding the sufficiency of MBIA Insurance Corporation’s liquidity and financial condition. The unpaid interest on the Surplus Notes will become due on the first business day on or after which MBIA Insurance Corporation obtains approval to pay some or all of such unpaid interest. No interest has been accrued or will accrue on the deferred interest. MBIA Insurance Corporation — Claims - Paying Resources (Statutory Basis) CPR is a key measure of the resources available to MBIA Corp. to pay claims under its insurance policies. CPR consists of total financial resources and reserves calculated on a statutory basis. CPR has been a common measure used by financial guarantee insurance companies to report and compare resources, and continues to be used by MBIA’s management to evaluate changes in such resources. We have provided CPR to allow investors and analysts to evaluate MBIA Corp., using the same measure that MBIA’s management uses to evaluate MBIA Corp.’s resources to pay claims under its insurance policies. There is no directly comparable GAAP measure. Our calculation of CPR may differ from the calculation of CPR reported by other companies. MBIA Corp.’s CPR and components thereto, as of June 30, 2026 and December 31, 2025 are presented in the following table: As of June 30, As of December 31, In millions 2026 2025 Policyholders’ surplus $ 101 $ 74 Contingency reserves 5 5 Statutory capital 106 79 Unearned premiums 10 14 Present value of installment premiums (1) 14 15 Premium resources (2) 24 29 Net loss and LAE reserves (1) 34 61 Salvage reserves on paid claims (1) (3) 178 148 Gross loss and LAE reserves 212 209 Total claims-paying resources $ 342 $ 317 ________________ (1) - Calculated using a discount rate of 5.47% as of June 30, 2026 and December 31, 2025. (2) - Includes financial guarantee and insured derivative related premiums. (3) - This amount primarily consists of expected recoveries related to the payment of claims on insured CDOs and RMBS. 62 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations CRITICAL ACCOUNTING ESTIMATES We prepare our consolidated financial statements in accordance with GAAP, which requires the use of estimates and assumptions. Management has discussed and reviewed the development, selection, and disclosure of critical accounting estimates with the Company’s Audit Committee. Our most critical accounting estimates include loss and LAE reserves and valuation of financial instruments, since these estimates require significant judgment. Any modifications in these estimates could materially impact our financial results. For a discussion of the Company’s critical accounting estimates, refer to “Critical Accounting Estimates” in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. In addition, refer to “Note 5: Loss and Loss Adjustment Expense Reserves” and “Note 6: Fair Value of Financial Instruments” in the Notes to Consolidated Financial Statements for a current description of estimates used in our insurance loss reserving process and information about our financial assets and liabilities that are accounted for at fair value, including valuation techniques and significant inputs. RECENT ACCOUNTING PRONOUNCEMENTS Refer to “Note 3: Recent Accounting Pronouncements” in the Notes to Consolidated Financial Statements for a discussion of new accounting pronouncements and the potential impact on the Company's consolidated financial statements. 63 Table of Contents