MBIA Inc. turned a profit in the second quarter as the bond insurer assumed it will not have to cover losses on mortgages it considers ineligible for insurance.

The Armonk, N.Y.-based company on Wednesday reported net income of $894.7 million, or $4.30 per share, during the quarter, compared with $1.7 billion, or $7.14 per share, in the second quarter of 2008.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.