MBIA Inc. and Capital Re Corp. yesterday both announced strong increases in net income for the first half of 1993.

MBIA Inc., the holding company for Municipal Bond Investors Assurance Corp., said earnings were up 50% from the first six months of 1992, jumping to $136.5 million from $91.2 million.

Capital Re saw profits increase 20%, to $18.2 million in the first half of 1993 from $15.2 million in the same period last year.

For the second quarter, MBIA's net income rose to $63.8 million from $47.9 million, and Capital Re's net income increased to $9.2 million from $8.6 million.

MBIA insures municipal bond issues in the primary market. Capital Re is a municipal bond reinsurer that also handles transactions in related special risk markets.

"MBIA's second-quarter financial results reflect our strong underlying earnings growth, as operating income per share, excluding the benefit of refundings, rose 20%," said David H. Elliott, president and chief executive officer there. "This year's record premium writings will contribute to higher operating earnings for years to come."

MBIA insured $22.5 billion of new-issue municipal bonds in the first half of 1993, a 60% increase over the $14.1 billion the company handled in the same period last year. MBIA accounted for 38% of the entire market for the first six months.

Michael E. Satz, Capital Re's chairman and chief executive officer, noted that the company's net premiums earned increased 42% in the first six months of 1993.

"Despite the significant positive effect of refundings on net premiums earned by accelerating deferred premium revenue, Capital Re's deferred premium revenue - its reservoir for future earnings - experienced an increase of more than 21%," Satz said.

MBIA's and Capital Re's growth in income continue a recent trend of solid gains in the financial guaranty industry. AMBAC Inc. announced last week that net income in the first half rose 44%. to $89.9 million from $62.3 million. Financial Guaranty Insurance Co. last month announced a 27% increase, to $83 million from $65.2 million.

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