Supplemental Information dated January 9, 2008

Safe Harbor Disclosure

This presentation and our remarks may contain forward-looking

statements. Important factors such as general market conditions and the

competitive environment could cause actual results to differ materially

from those projected in these forward-looking statements. Risk factors

are detailed in our 10K, which is available on our website,

www.mbia.com. The company undertakes no obligation to revise or

update any forward-looking statements to reflect changes in events or

expectations.

In addition, the definitions of the non-GAAP terms that are included in

this

presentation

may

found

our

website

www.mbia.com.

MBIA’s Insured Portfolio is Large and Diverse

$432.7 billion Public Finance

Insured Portfolio

Percent of Net Par Outstanding by Bond Type

$240.2 billion Structured Finance

Insured Portfolio

Percent of Net Par Outstanding by Bond Type

Total of $673 billion Net Par Outstanding as of 9/30/07

Special Revenue, 11%

Sovereign/Sub

Sovereign, 3%

Investor-Owned

Utilities, 3%

Housing, 4%

Municipal Utility,

18%

Higher Education, 6%

General Obligation,

39%

Health Care, 6%

Transportation, 10%

Commercial Real

Estate CDOs, 4%

Corporate CDOs, 24%

Multi-Sector CDOs,

13%

Direct RMBS, 19%

Commercial

Real Estate

Loan Pools, 3%

Structured CMBS

Pools, 13%

Other, 2%

Corporate Asset

Backed, 11%

Consumer Asset

Backed, 11%

Market Dislocation Has Impacted Our Insured Portfolio

Mortgage market disruption

•

Increasing delinquencies

and

defaults

mortgages

are

impacting

our

RMBS

and

ABS CDO portfolios causing us to increase loss reserves

•

MTM losses resulting from market disruption are not economic in the absence of credit

impairments

•

Rating agency

capital

charges

have

gone

and

have

increased

our

expectation

of credit losses in the stress scenarios

2007 operating results will be impacted

•

Case reserves related to prime second-lien RMBS portfolio estimated at $614 million

•

MTM loss at $3.3 billion: $3.1 billion non-economic and $200 million credit impairment

associated with CDS contracts/CDOs

•

Increase in unallocated case reserve by $100 million

MBIA’s capital plan

•

Exceeds all rating agencies Triple-A requirements

•

Creates “dry powder”

to capitalize on new business opportunities

Credit Road Map: RMBS and Multi-Sector CDOs

•High quality, Triple-A only since 2004

$4.7

Subprime

Increase in loss reserve of $614mm on

HELOC and Closed-End Seconds

•Performing below expectation

•Mostly European Triple-A

Comment

$45.2 Bn

Total RMBS

11.1

Closed-End Seconds

11.7

HELOC

17.8

Prime First Mortgage

Net Par ($Bn)

RMBS

•70% of collateral Triple-A rated with 41%

originated 2005 or prior

•$200mm impairment in portfolio

•Diversified across 2000-2004 origination

•Only 1 US deal written since 2004

•High quality, low risk book

Comment

$30.6 Bn

Total Multi-Sector CDO

9.0

CDOs

of CDOs

1.8

Secondary Market

3.7

Mezzanine

$16.1

High Grade

Net Par ($Bn)

Multi Sector CDOs

MBIA’s RMBS Exposure

Subprime, $4.5,

10%

Prime Closed-End

Seconds, $11.1,

25%

Prime HELOCs, $11.7,

26%

Prime First Mortgage,

$17.6,

39%

$45.2

billion

RMBS

Exposure

Closed-End

Seconds

HELOCs

Vintage

RMBS exposure comprises 7% of insured portfolio as of 9/30/07

MBIA wraps 100%

of issuance

Excess Spread and

Overcollateralization

BBB

$ bn

2005 and Prior

5.3

23%

2006

8.4

37%

2007

9.1

40%

Total

22.8

100%

MBIA

Collateral

•

Total HELOC and Closed-End Seconds Portfolio of $22.8bn

•

MBIA identified several HELOC and Closed-End Seconds deals

totaling $9.5bn of net par outstanding performing below expectations

–

Defaults consumed excess spread and overcollateralization

–

“Layered”

risk unexpectedly increased

•

Low documentation (i.e. limited income/employment verification)

•

High Combined Loan to Value (CLTV)

•

Negative Home Price Appreciation (HPA) environment)

•

Speculation

•

MBIA has announced loss reserves of $614 million

•

MBIA has paid $46 million of claims so far

Prime HELOC and Closed-End Seconds Portfolio More

Exposed

Multi-Sector CDOs

Structural protections include:

–

Most senior position

–

Full control rights within the deal documentation

–

Interest coverage and overcollateralization tests (funded deals)

–

Collateral portfolio quality tests (managed deals)

–

Events of default (including par based OC tests)

•

Collateral manager termination and replacement rights

•

Acceleration and liquidation of collateral fully in control of MBIA

In the event of impairment, our CDOs have one of the three payout patterns:

–

Principal only or capped–

$4.3bn

–

Scheduled interest and ultimate principal –

$18.2bn

–

Credit events as they occur-

$8.1bn

Typical Multi-Sector High Grade CDO Exposure Losses

20% CDO

(70% ABS

CDO)

30%

prime

RMBS

20% other

ABS

30%

subprime

RMBS

$1 billion CDO, with $1 billion in High

Grade Collateral.

Hypothetical Collateral Loss

Assumptions

12.3%

9.8%

•

49% loss of CDO collateral

(70% loss of ABS CDOs)

–

(70% x 20%) x 70% =

0.0%

•

0% loss =

1.0%

•

15% loss less, average 10%

overcollateralization

–

(15% -

10%) x 20% =

1.5%

•

15% loss, less average 10%

overcollateralization

–

(15% -

10%) x 30% =

Total

loss

12.3%

below

MBIA’s

15%

attachment

point.

MBIA wrapped top 85%, most senior tranche

CDOs of CDOs Exposure

•

9 transactions, $9bn in total

•

70% of the underlying collateral rated Triple-A

•

Subordination = 12% on average

•

$200 million of credit impairment

Other, 1%

RMBS, 12%

CDOs of ABS, 20%

CBO/CLO, 60%

Investment Grade

Corporate, 2%

Other ABS, 2%

TruPS, 3%

2005 and Prior, 41%

2007, 26%

2006, 33%

By collateral type

By vintage of underlying collateral

Rating Agency Capital Position

Estimating capital requirements

based on hypothetical:

•

“worst case”

ratings downgrades

•

“worst case”

economic losses

“Forward looking”

analyses incorporate future stress

•

S&P using 40% and 16% cumulative net loss (CNL) for Prime/Closed-

End Seconds (CES) mortgages and HELOCs

•

Moody’s using 19% CNL for subprime first mortgages

•

Fitch “downgrading”

all current CDO collateral 6 to 9 additional notches

Rating Agency Capital Position-

After Stress Analysis

Post re-rating & stress analysis: Capital Shortfall as of 9/30/07

$2.0

$1.4

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

Low

High

($ in billions)

Loss Reserve/Credit Impairment versus Capital

Requirement

2. Mark-to-Market (a)

(with credit impairment)

Capital Requirement

(Stress scenario –

worst

case loss in a 1 in 10,000

loss stress case plus 30%

added cushion)

Mark-to-Market (b)

(non-economic; will reverse

to zero as bonds approach

maturity)

Loss reserves

(expected losses in insured

portfolio)

Reason for

Capital Raise

Reflection of

Expected Losses

P&L

Impact

Capital Plan Exceeds Rating Agencies’

Capital

Requirement

Net maturities, amortization

$300-

$500 million

Q4 2007 Roll-off

Of Back Book

$2,350-

$2,650 million

Total

Warburg Pincus Commitment &

Backstopped Rights Offering

$1,000 million

Common Equity

Covering diversified portions of our

portfolio

$50-

$150 million

Reinsurance

Benefit

To be Completed

$1,000 million

Debt

MBIA has also announced a 62%

dividend cut

The Warburg Pincus Commitment

Announced December 10, 2007

Two “tranches”

•

$500 million common equity investment @$31 per share

•

$500 million commitment to backstop a rights offering to existing shareholders

Firm commitment

•

No “outs”

for rating agency outcomes or MAC

•

No bring-down of reps and warranties

Expected closing dates

•

First $500

million

upon

HSR

and

FSA

approvals

–

approximately

late

January

•

Rights offering expected to close in February

Estimated “Excess Capital”

Position After Capital

Plan Completion as of 12/31/2007

The capital plan will increase MBIA’s total claims-paying resources

from $14.2bn at 09/30/2007 to at least $16.2bn proforma at 12/31/2007.

$900

$500

$200

$400

$600

$800

$1,000

Low

High

($ in thousands)

Current Market Trends Play to MBIA’s Strengths

Demand for financial guarantee insurance is expected to

rebound

•

Credit market disruptions have reinforced the need for financial

guarantees

•

Public finance and global infrastructure finance needs are growing

–

Resilience of demand for the municipal bond insurance industry

•

Structured finance market is expected to recover from the dislocation

Market conditions are attractive

•

Wider spreads and increased overcollateralization

are creating significantly

higher ROE on new business

•

Competitive dynamics in the industry are shifting

•

Underwriting can be more selective

MBIA remains well positioned in this market.

Core Business Opportunities are Robust

Public Finance

•

Risk-adjusted pricing is improving

•

Public finance needs in the U.S. are expected to grow

•

Privatization of essential infrastructure projects globally continues to

present attractive opportunities

Structured Finance

•

Insured volume will be very low in the first half of 2008

•

Minimal impact on revenue due to long tail nature of business

•

As structured finance market rebuilds, MBIA will play a key role

resulting in new opportunities at attractive prices