MBIA and Ambac Financial Group continue to be hit by exposure to the U.S. housing market, adding to their loss reserves as they posted third quarter losses.
MBIA posted a net loss of $806.5 million during the third quarter, or $3.48 per share, and Ambac recorded a net loss of $2.431 billion, or $8.45 per share.
MBIA took a $961 million pre-tax case loss and loss adjustment expense in the quarter due to further deterioration of insured exposures to second-lien residential mortgage-backed securities.
Ambac had a third quarter net loss provision of $607.7 million, primarily related to second-lien RMBS transactions, offset by benefits they expect from recoveries from breaches of representations and warranties on RMBS transactions.
