Welcome to the MBIA Inc. Fourth Quarter and Full-Year 2019 Financial Results Conference Call. I would now like to turn the call over to Greg Diamond, Managing Director of Investor and Media Relations at MBIA. Please go ahead, sir.

Thank you, Maria. After the market closed yesterday, we issued and posted several items on our websites, including our financial results, 10-K, quarterly operating supplements and statutory financial statements for both MBIA Insurance Corporation and National Public Finance Guarantee Corporation. We also posted updates to the listings of our insurance portfolios. Regarding today's call, please note that anything said on the call is qualified by the information provided in the company's 10-K and other SEC filings as our company's definitive disclosures are incorporated in those documents. We urge investors to read our 10-K as it contain our most current disclosures about the company and its financial and operating results. 10-K also contains information that may not be addressed on today's call. The definitions and reconciliations of the non-GAAP terms included in our remarks today are also included in our 10-K as well as our financial results report and our quarterly operating supplement. A recorded replay of today's call will become available approximately two hours after the end of the call, and the information for accessing it is included in last week's press release and the financial results we posted on the website yesterday. Now, I'll read our Safe Harbor disclosure statement. Our remarks on today's conference call may contain forward-looking statements. Important factors such as general market conditions and the competitive environment could cause our actual results to differ materially from the projected results referenced in our forward-looking statements. Risk factors are detailed in our 10-K, which are available on our website at mbia.com. The company cautions not to place undue reliance on any such forward-looking statements. The company also undertakes no obligation to publicly correct or update any forward-looking statement if it later becomes aware that such statement is no longer accurate. For our call today, Bill Fallon and Anthony McKiernan will provide some introductory comments and then a question-and-answer session will follow. Now, here is Bill Fallon.

Thanks, Craig. Good morning, everyone. Thank you for being with us today. Remediating our Puerto Rico credits continues to be our main priority. During 2019, we were able to resolve and then fully extinguish our Puerto Rico sales tax bond, or COFINA exposure. Our COFINA exposure accounted for approximately one half of our total insured Puerto Rico debt service. As a result of the restructuring and the extinguishment of our COFINA exposure, along with claims payments that we have made on our other insured Puerto Rico exposure, our total insured debt service on Puerto Rico bonds has declined from $7.9 billion at year-end 2018 to $3.3 billion at the end of 2019. Our remaining Puerto Rico exposure is largely comprised of three Puerto Rico credits. The Commonwealth pre-2011 general obligation PBA bonds; the Puerto Rico Electric Power Authority, PREPA; and the Puerto Rico Highway and Transportation Authority, or HTA. At year-end 2019, our exposure to the general obligation and PBA bonds was about $655 million of gross par, or about $833 million of total debt service. Our PREPA exposure was just under $1 billion of gross par, or $1.3 billion of total debt service. And our HTA exposure was about $600 million of gross par or $1 billion of total debt service. At this time, there is a restructuring support agreement for the PREPA bonds that has been approved by the Federal Oversight Management Board and over 90% of the PREPA creditors. A court hearing for the related 9019 motion is scheduled for June. Governor Vasquez and the Puerto Rico legislature has stated publicly that they do not support the agreement. There was also a plan support agreement between the Oversight Board and a group of commonwealth bondholders representing approximately 54% of the par amount. We and the other monolines…

Thanks, Bill. And good morning. I will begin with a review of our fourth quarter 2019 and full-year 2019 GAAP and non-GAAP results, then cover the holding company balance sheet and, lastly, walk through our statutory results for National and MBIA Insurance Corp. The company reported a consolidated GAAP net loss of $243 million or a negative $3.21 per share for the quarter ended December 31 2019 compared to a consolidated GAAP net loss of $7 million or negative $0.08 per share for the quarter ended December 31, 2018. The results for the quarter were driven by several factors. Increased loss and loss adjustment expense at National related to its remaining Puerto Rico exposures, reflecting both views of the credits and the effect of higher discount rates on the present value of estimated future recoveries; increased loss and loss adjustment expense at MBIA Corp., primarily due to a reduction in expected recoveries on claims paid on the Zohar CLOs; net investment losses due to the impairment of a legacy remediation municipal security, which was subsequently sold in January; a fair value VIE loss related to the accelerated $66 million payoff of the remaining COFINA trust certificates which also eliminated our remaining COFINA exposure – that fair value loss was equity neutral as losses were reclassified from other comprehensive income into earnings – and higher operating expenses due to legal expenses associated with National's litigation filed in 2019 against a number of investment banks that underwrote Puerto Rico debt. The tax expense for the quarter reflects the early adoption of a new tax accounting guidance, which removed the requirement to allocate taxes between earnings from continuing operations and other comprehensive income and which is equity neutral. Going forward, GAAP quarterly tax expense should be negligible, reflecting the full valuation allowance against…

[Operator Instructions]. And I'm showing we have no questions at this time, sir.

Okay. Thank you, Maria, we'll end the call then.

And thanks to those of you listening to the call. Please contact us directly if you have any additional questions. We also recommend that you visit our website at mbia. com for additional information about the company. Thank you for your interest in MBIA. Good day and goodbye.

Thank you, ladies and gentlemen. This does conclude today's conference call. You may now disconnect.