MBIA posts $3bn loss and takes further step to improve capital

Most of the proceeds of its share offer will support its insurance subsidiary • Fitch places AAA rating under review

Hard on the heels of Ambac’s $5bn pre-tax loss for full year 2007, fellow US bond insurer MBIA posted a $3.1bn pre-tax deficit last year against a $1.1bn profit for 2006. MBIA’s net loss for the full year stood at $1.9bn, compared with net income of $819mn in 2006.