Insurer MBIA still reeling from mortgage losses

NEW YORK: MBIA Inc said that it incurred heavier losses in its insurance business than expected, saddling the bond insurer with a third-quarter loss after two straight quarters of profits.

Higher losses on MBIA's coverage of mortgage-related securities and complex investments known as derivatives overwhelmed investment income and premiums collected on its insurance policies. That led to a loss of $727.8 million, or $3.50 per share, for the period ended Sept 30.

A year earlier, the company had a wider loss of $806.5 million, or $3.42 per share. The loss per share was narrower in the 2008 third quarter due to more shares outstanding in that period.