(RTTNews) -  Monday, insurance and investment management services provider MBIA Inc. (MBI: News ) posted a loss in the third quarter that narrowed from a year ago, although hefty losses on insured credit derivatives, as well as insured exposures to second-lien mortgage loan securitizations once again saw the insurer in red after two consecutive quarters of profit. The company also recorded negative revenues for the quarter.

The Armonk, New York-based MBIA's net loss to common shareholders was $727.8 million or $3.50 per share for the third quarter of 2009, compared with a net loss of $806.48 million or $3.42 per share a year ago.

In the preceding second quarter, MBIA reported net income available to common shareholders of $894.7 million or $4.30 per share, compared to $1.7 billion or $7.14 per share in the prior year quarter.

MBIA said the net loss for the quarter under review was driven by an $810.2 million pre-tax unrealized loss on insured credit derivatives, $238.8 million in pre-tax loss and loss adjustment expenses primarily related to its insured exposures to second-lien mortgage loan securitizations, and $171.4 million in pre-tax realized losses and other-than-temporary impairments on investments.

MBIA had a higher share count for the quarter as compared to the year ago quarter.

Chuck Chaplin, president and chief financial officer commented, "The third quarter's loss is a reminder that the impact of this recession continues to be felt throughout the economy."
"Incurred losses in our insurance business were above expectations and the same housing-related performance trends drove our asset losses and impairments, but those losses were partially offset by gains on debt repurchases in the quarter," Chaplin added.

MBIA's adjusted book value or ABV was $39.05 per share at September 30, 2009, compared to $40.06 per share at December 31, 2008. ABV is a non-GAAP measure that excludes the impact of changes in the fair value of insured credit derivatives and temporary asset impairments but includes the present value of future expected loss payments on insured credit derivatives, net of recoveries (credit impairments).

For the quarter, MBIA recorded consolidated negative revenues of $620.16 million, compared to revenues of $319.76 million in the prior year quarter.

Segment wise, for the quarter, U.S. Public Finance Insurance segment recorded total revenues of $204.63 million, but Structured Finance and International Insurance segment had negative revenues of $714.66 million. In the year ago comparable period, the Insurance segment recorded total revenues of $560.67 million.

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