Exhibit 99.1

MBIA Inc. Reports Second Quarter 2011 Financial Results

Highlights

• MBIA Inc.’s Adjusted Book Value (ABV), a non-GAAP measure, was $37.22 per share at June 30, 2011 compared with $35.57 per share at March 31, 2011.
• MBIA Inc.’s adjusted pre-tax income, a non-GAAP measure, was $161 million for the second quarter of 2011 compared with adjusted pre-tax income of $48 million for the second quarter of 2010.
• MBIA Inc. recorded net income available to common shareholders of $137 million, or $0.68 per share, for the second quarter of 2011, compared with net income of $1.3 billion, or $6.32 per share, for the second quarter of 2010.
• Since the end of the first quarter, MBIA Insurance Corporation (MBIA Corp.) has reached agreements with five counterparties for commutations of transactions which include multi-sector CDOs and investment grade corporate CDOs. The agreements eliminate $8.7 billion in gross insured exposure in exchange for one-time payments by MBIA Corp. that are within its aggregate statutory loss reserve for these transactions.

ARMONK, N.Y.--(BUSINESS WIRE)--August 9, 2011--MBIA Inc. (NYSE: MBI) (the Company) today reported Adjusted Book Value (ABV) per share (a non-GAAP measure defined in the attached Explanation of Non-GAAP Financial Measures) of $37.22 as of June 30, 2011, compared with $35.57 as of March 31, 2011. Book value per share was $9.56 as of June 30, 2011.

Adjusted pre-tax income, a non-GAAP measure (defined in the attached Explanation of Non-GAAP Financial Measures), for the second quarter of 2011 was $161 million compared with adjusted pre-tax income of $48 million for the second quarter of 2010. The increase in adjusted pre-tax income for the three months ended June 30, 2011 relative to the comparable quarter of 2010 resulted principally from a reduction in insurance losses driven by the early settlements of insured credit default swaps at amounts below previously established credit impairments, partially offset by losses related to fair valuing interest rate swaps and adverse changes in foreign currency exchange rates in the Company’s wind-down operations. ABV and adjusted pre-tax income provide investors with additional views of the Company’s operating results that management finds useful in measuring financial performance.

Net income available to common shareholders for the second quarter of 2011 was $137 million, or $0.68 per share, compared with net income of $1.3 billion, or $6.32 per share, for the second quarter of 2010. The Company’s results for the second quarter of 2011 were driven by a gain on insured credit derivatives associated with commutation activity, and a $283 million income tax provision benefit related to a change in the Company’s projection of its full year effective tax rate.

“Overall, our results for the second quarter were positive,” said MBIA Inc. President and Chief Financial Officer Chuck Chaplin. “New delinquencies in our second lien mortgage book were consistent with our expectations, and payments continued to be somewhat below what our models predicted. We also achieved substantial reductions in future volatility by commuting a number of CDO transactions. Reductions in statutory reserves for RMBS and ABS CDOs more than offset increases in reserves for CMBS. Although we had a setback in our Transformation-related litigation, we continued to make progress in our residential mortgage putback cases.”

Second Quarter 2011 Segment Results

The following is a summary of pre-tax results by segment for the second quarter:

U.S. Public Finance Results

The Company’s U.S. public finance insurance business is conducted through its National Public Finance Guarantee Corp. (National) subsidiary.

National recorded $144 million of adjusted pre-tax income in the second quarter of 2011 compared with $128 million of adjusted pre-tax income in the second quarter of 2010. The increase in adjusted pre-tax income resulted from an improvement in loss and loss adjustment expenses.

National's insured portfolio generated total premiums earned of $106 million in the second quarter of 2011 compared with $119 million in total premiums earned in the second quarter of 2010. The decline in total premiums earned resulted from amortization of National’s insured portfolio and lower refunding activity in the quarter.

Net investment income for National declined 3 percent to $54 million in the second quarter of 2011 from $56 million in the comparable period of 2010 due to lower average yields. Since the second quarter of 2010, National’s investment portfolio increased in size by 1 percent, to $5.4 billion at June 30, 2011.

Fees and reimbursements were $1.6 million in the second quarter of 2011 compared with $2.8 million in the second quarter of 2010. The decline in fees and reimbursements was primarily attributable to lower waiver and consent fees in the second quarter of 2011.

National recorded a net benefit to loss and loss adjustment expenses of $9 million in the second quarter of 2011 compared with loss and loss adjustment expenses of $10 million in the second quarter of 2010. The net benefit in the second quarter of 2011 was primarily the result of a decrease in loss reserves on an insured affordable housing transaction following its remediation.

Operating expenses were $19 million in the second quarter of 2011, up 15 percent from $17 million in the comparable period of 2010. The increase in operating expenses was driven by higher legal and allocated overhead expenses, partially offset by lower compensation expenses.

As of June 30, 2011, National’s statutory capital was $2.6 billion and its claims-paying resources totaled $5.7 billion.

Structured Finance and International Insurance Results

The Structured Finance and International Insurance business is conducted through MBIA Corp. and its subsidiaries.

Adjusted pre-tax income for the Structured Finance and International Insurance segment for the second quarter of 2011 was $189 million compared with an adjusted pre-tax loss of $86 million for the second quarter of 2010. Premiums earned, net investment income, fees and reimbursements, and premiums and fees on insured derivatives totaled $145 million in the second quarter of 2011. Losses, credit impairments (a non-GAAP measure defined in the attached Explanation of Non-GAAP Financial Measures) and loss-related expenses on insured exposures were a benefit of $150 million in the second quarter while all other line items in the aggregate had a net $106 million negative impact on adjusted pre-tax income.

The following is a summary of all insured portfolio economic loss activity in the second quarter. Economic losses for a reporting period represent the change in the Company’s estimate of the present value of expected net future claims payments without regard to the manner in which they are presented in the Company’s financial statements.

In the second quarter, the Company increased its expectations of future payments on RMBS exposures by $53 million. However, the increase in expected future claims payments was more than offset by additional expected recoveries of $69 million primarily from contractual claims related to ineligible mortgages. The Company’s estimates for expected recoveries related to “putbacks” of ineligible mortgages totaled $2.7 billion as of June 30, 2011. However, based on the Company’s assessment of the strength of its contract claims, the Company continues to believe it is entitled to collect the full amount of its cumulative incurred losses, which totaled $4.6 billion as of June 30, 2011, from those securitization sponsors against whom it is pursuing litigation.

Since the end of the first quarter of 2011, MBIA Corp. has reached agreements with five counterparties for commutations of transactions including multi-sector CDOs and investment grade corporate CDOs. Commutation agreements with two of the parties were closed in the second quarter, an agreement with one counterparty was reached during the second quarter and subsequently closed in the third quarter, while agreements with the remaining two counterparties were reached and are expected to close in the third quarter. When fully consummated, the five commutation agreements will have eliminated $8.7 billion in gross insured exposure.

In the second quarter of 2011, the Company estimated $233 million of incremental economic losses on certain insured transactions backed by pools of commercial mortgage-backed securities (CMBS). While the Company continues to observe evidence of improving trends in the CMBS market overall, including a deceleration in the pace of increases in delinquency rates and an increase in material loan modifications, these positive factors were offset by some deductible erosion and projected deterioration in several insured transactions.

Certain losses are on policies subject to insurance accounting while other categories of loss relate to insured VIEs or insured credit derivatives for which GAAP specifies alternative accounting. The following is a summary of second quarter economic losses based on those categories:

In the second quarter of 2011, MBIA Corp. paid a total of $237 million in claims and LAE, net of reinsurance and collections, in connection with its residential mortgage exposures compared to $231 million in the first quarter of 2011 and $407 million in the second quarter of 2010.

The Company’s net derivative liability (the cumulative negative mark-to-market) with respect to insured credit derivatives was $5.7 billion as of June 30, 2011. The Company currently has approximately $2.0 billion in statutory loss reserves in connection with these insured credit derivatives. The Company expects the $3.7 billion unimpaired portion of the unrealized net loss in fair value (mark-to-market) to be reversed prior to or upon the maturities of the insured credit derivatives.

As of June 30, 2011, MBIA Corp.’s statutory balance sheet reflected $2.6 billion in cash and invested assets including $815 million of cash and short-term investments. Cash, short-term investments and other highly liquid investments available to meet liquidity demands totaled $1.1 billion as of June 30, 2011, excluding amounts held by subsidiaries. The Company believes that MBIA Corp.’s liquidity resources will adequately provide for anticipated cash outflows.

MBIA Corp. had statutory capital of $2.9 billion and claims-paying resources totaling $4.3 billion at June 30, 2011.

Advisory Services

The Company’s Advisory Services business is primarily conducted in its Cutwater Asset Management subsidiaries. Cutwater recorded a pre-tax loss of $3 million in the second quarter of 2011 driven by expenses associated with positioning it for future growth.

Cutwater’s average assets under management in the second quarter were $39.8 billion, down 3 percent from $41.0 billion in the first quarter of 2011. Third-party average assets under management in the second quarter totaled $25.5 billion, down 3 percent from $26.2 billion in the first quarter of 2011.

Corporate Segment

The Corporate segment comprises MBIA Inc.’s holding company activities and certain subsidiaries, including Optinuity Alliance Resources Corp. The Corporate segment recorded a pre-tax loss of $2 million in the second quarter of 2011 compared with a pre-tax loss of $9 million in the second quarter of 2010. The Corporate segment’s pre-tax results were positively impacted in the second quarters of 2011 and 2010 by marks-to-market of $12 million and $9 million, respectively, on outstanding warrants on MBIA Inc. common stock.

As of June 30, 2011, the corporate activities of MBIA Inc. had $255 million of cash and highly liquid assets available for general corporate liquidity purposes.

The Company repurchased approximately 3 million shares of its common stock at an average price of $8.27 during the second quarter. As of June 30, 2011, approximately $48 million of repurchase authorization remained available under the Company's $1.0 billion share buyback program.

Wind-down Operations

The Company’s wind-down operations comprise its Asset Liability Management (ALM) and Conduit businesses, both of which are in run-off.

The Company’s wind-down operations recorded a pre-tax loss of $168 million in the second quarter of 2011 compared with pre-tax income of $11 million in the second quarter of 2010. The pre-tax loss in the second quarter of 2011 was driven by a $133 million net loss on financial instruments at fair value and foreign exchange, primarily from mark-to-market losses resulting from a combination of an improved market perception of MBIA Corp.’s credit quality as well as adverse movements in interest rates and currency exchange rates.

During the second quarter, the ALM business repaid an additional $200 million of its original $2.0 billion secured loan from MBIA Corp. The remaining outstanding balance of the secured loan was $600 million as of June 30, 2011.

Conference Call

The Company will host a webcast and conference call for investors tomorrow, Wednesday, August 10, 2011 at 8:00 AM (EDT) to discuss its second quarter 2011 financial results and other matters relating to the Company. The webcast and conference call will consist of brief remarks followed by a question and answer session.

The dial-in number for the call is (877) 694-4769 in the U.S. and (404) 665-9935 from outside the U.S. The conference call code is 84149049. A live webcast of the conference call will also be accessible on www.mbia.com.

A replay of the call will be available approximately two hours after the completion of the call on August 10 until 11:59 p.m. on August 24 by dialing (855) 859-2056 in the U.S. or (404) 537-3406 from outside the U.S. The replay call code is also 84149049. In addition, a recording of the call will be available on the Company's website approximately two hours after the completion of the call.

Forward-Looking Statements

This release includes statements that are not historical or current facts and are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “believe,” “anticipate,” “project,” “plan,” “expect,” “intend,” “will likely result,” “looking forward” or “will continue,” and similar expressions identify forward-looking statements. 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, including, among other risks and uncertainties, the possibility that the Company will experience severe losses or liquidity needs due to increased deterioration in its insurance portfolios and in particular, due to the performance of CDOs including multi-sector, CMBS and CRE CDOs and RMBS, uncertainty regarding whether the Company will realize, or will be delayed in realizing, insurance loss recoveries expected in disputes with sellers/servicers of RMBS transactions at the levels recorded in its financial statements, the possibility that loss reserve estimates are not adequate to cover potential claims, the Company’s ability to access capital and the Company’s exposure to significant fluctuations in liquidity and asset values within the global credit markets, the Company’s ability to fully implement its strategic plan, including its ability to achieve high stable ratings for National or any other insurance subsidiaries, and the Company’s ability to commute certain of its insured exposures, including as a result of limited available liquidity, the Company’s ability to favorably resolve litigation claims against the Company, and changes in general economic and competitive conditions. These and other factors that could affect financial performance or could cause actual results to differ materially from estimates contained in or underlying the Company’s forward-looking statements are discussed under the “Risk Factors” section in MBIA Inc.’s most recent Annual Report on Form 10-K, which may be updated or amended in the Company’s subsequent filings with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only to their respective dates. The Company undertakes no obligation to publicly correct or update any forward-looking statement if it later becomes aware that such result is not likely to be achieved.

MBIA Inc., headquartered in Armonk, New York is a holding company whose subsidiaries provide financial guarantee insurance, as well as related reinsurance, advisory and portfolio services, for the public and structured finance markets, and asset management advisory services. The Company services its clients around the globe with offices in New York, Denver, San Francisco, Paris, London, Madrid and Mexico City. Please visit MBIA's website at www.mbia.com.

Explanation of Non-GAAP Financial Measures

The following are explanations of why MBIA believes that the non-GAAP financial measures used in this press release, which serve to supplement GAAP information, are meaningful to investors.

Adjusted Book Value: Adjusted Book Value (ABV), a non-GAAP measure, is used by the Company to supplement its analysis of GAAP book value. The Company uses ABV as a measure of fundamental value and considers the change in ABV an important measure of periodic financial performance. ABV adjusts GAAP book value to remove the impact of certain items which the Company believes will reverse over time, as well as to 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 which the likelihood and amount can be reasonably estimated. ABV assumes no new business activity. The Company has presented ABV to allow investors and analysts to evaluate the Company using the same measure that MBIA’s management regularly uses to measure financial performance. ABV is not a substitute for and should not be viewed in isolation from GAAP book value.

ABV is calculated on a consolidated basis and a segment basis. ABV by segment provides information about each segment’s contribution to consolidated ABV and is calculated using the same formula.

ABV per share represents that amount of ABV allocated to each common share outstanding at the measurement date.

Adjusted Pre-tax Income: Adjusted pre-tax income, a non-GAAP measure, is used by the Company to supplement its analysis of GAAP pre-tax income. The Company uses adjusted pre-tax income as a measure of fundamental periodic financial performance. Adjusted pre-tax income adjusts GAAP pre-tax income to remove the effects of consolidating insured VIEs and gains and losses related to fair valuing insured credit derivatives, which the Company believes will reverse over time, and adds in changes in the present value of insurance claims the Company expects to pay on insured credit derivatives based on its ongoing insurance loss monitoring and loss adjustment expenses. Adjusted pre-tax income is not a substitute for and should not be viewed in isolation from GAAP pre-tax income and the Company’s definition of adjusted pre-tax income may differ from that used by other companies.

Claims-paying Resources (CPR): CPR is a key measure of the resources available to National and MBIA Corp. to pay claims under their respective 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. The Company has provided CPR to allow investors and analysts to evaluate National and MBIA Corp. using the same measure that MBIA’s management uses to evaluate their resources to pay claims under their respective insurance policies. There is no directly comparable GAAP measure.

Credit Impairments on Insured Derivatives: Credit impairments on insured derivatives represent actual payments for the period plus the present value of the Company’s estimate of expected future claim payments for such transactions, using a discount rate required by statutory accounting principles, plus loss adjustment expenses. Since the Company’s insured credit derivatives have similar terms, conditions, risks, and economic profiles to its financial guarantee insurance policies, the Company evaluates them for impairment periodically in the same way that it estimates loss and LAE for its financial guarantee insurance policies. Credit impairments on insured derivatives are equal to the Company’s statutory losses and loss adjustment expenses for such contracts.

Credit impairments on insured derivatives may differ from the fair values recorded in the Company’s financial statements. The Company expects that the majority of its exposure written in derivative form will not be settled at fair value. The fair value of an insured derivative contract will be influenced by a variety of market and transaction-specific factors that may be unrelated to potential future claim payments. In the absence of credit impairments or the termination of derivatives at losses, the cumulative unrealized losses recorded from fair valuing insured derivatives should reverse before or at the maturity of the contracts. Contracts also may be settled prior to maturity at amounts that may be more or less than their recorded fair values. Those settlements can result in realized gains or losses, and the reversal of unrealized losses. For these reasons, the Company believes its disclosure of credit impairments on insured derivatives provides additional meaningful information to investors about potential realized losses on these contracts.

CONTACT:
MBIA Inc., Media:
Kevin Brown, +1-914-765-3648
or
Elizabeth James, +1-914-765-3889
or
MBIA Inc., Investor Relations:
Greg Diamond, +1-914-765-3190