MBIA expects loss payments of $700m-$800M for 2008

Bond insurer MBIA Inc. said it expects to make loss payments, before reinsurance, of $700 million to $800 million for 2008, mainly relating to insured credits in the residential mortgage-backed securities and home equity sectors.

In its annual report filed with the Securities and Exchange Commission, the Armonk, N.Y., financial services firm said it expects that its cash flow from operations in 2008 along with its current capital resources will be sufficient to meet its liquidity and operating cash requirements "in 2008 and the foreseeable future."

The company said it also expects surplus notes will require interest payments totaling $70 million in 2008.

MBIA said it expects additional material mark-to-market losses for January, due to widening credit-market spreads and rating action by two rating firms in late January and early February. The company said the mark-to-market position as of Jan. 31 isn't available at this time.