v3.23.1
Loss and Loss Adjustment Expense Reserves (Tables)
 3 Months Ended
Mar. 31, 2023
Text Block [Abstract]  
Present Value Of The Probability-Weighted Future Claim Payments And Recoveries
          
          
          
          
 
  
As of March 31, 2023
 
As of December 31, 2022
In millions
-
  
Balance Sheet Line Item
 
Balance Sheet Line Item
 
  
Insurance loss
recoverable
 
Loss and LAE
reserves 
(1)
 
Insurance loss
recoverable
 
Loss and LAE
reserves 
(1)
U.S. Public Finance Insurance
   
$
63
 
  
$
85
 
  
$
107
 
  
$
154
 
International and Structured Finance Insurance:
                                 
Before VIE eliminations
   
 
34
 
  
 
458
 
  
 
32
 
  
 
488
 
VIE eliminations
   
 
(2
) 
  
 
(164
) 
  
 
(2
) 
  
 
(203
) 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total international and structured finance insurance
   
 
32
 
  
 
294
 
  
 
30
 
  
 
285
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total
   
$
95
 
  
$
379
 
  
$
137
 
  
$
439
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
(1) - Amounts are net of estimated recoveries of expected future claims.
Schedule Of Loss And Loss Adjustment Expenses Reserves
In millions
 
 
Changes in Loss and LAE Reserves for the Three Months Ended March 31, 2023
 
 
 
 
Gross Loss
and LAE
Reserves as of
December 31,
2022
 
 
Loss and
LAE
Payments
 
 
Accretion
of Claim
Liability
Discount
 
 
Changes in
Discount
Rates
 
 
Changes in
Assumptions
(1)
 
 
Changes in
Unearned
Premium
Revenue
 
 
Gross Loss
and LAE
Reserves as of
March 31,
2023
 
 
$439
 
 
 
$(28)
 
 
 
$4
 
 
 
$11
 
 
 
$(47)
 
 
 
$-
 
 
 
$379
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) -Includes changes in amount and timing of estimated payments and recoveries.
Schedule Of Insurance Loss Recoverable
                                                                                                       
         
Changes in Insurance Loss Recoverable
    
         
for the Three Months Ended March 31,
2023
    
In millions
   
Gross
Recoverable as of
December 31,
2022
   
Collections
for Cases
  
Accretion
of
Recoveries
   
Changes in
Discount
Rates
   
Changes in
Assumptions
  
Gross
Recoverable as
of

March 31, 2023
Insurance loss recoverable
   
$
137
 
   
$
(2
) 
  
$
1
 
   
$
1
 
   
$
(42
) 
  
$
95
 
    
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
   
 
 
 
  
 
 
 
Schedule Of Financial Guarantees And Related Claim Liability
The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of March 31, 2023:
 
          
          
          
          
          
 
  
Surveillance Categories
$ in millions
  
Caution
List
Low
  
Caution
List
Medium
  
Caution
List
High
  
Classified

List
  
Total
Number of policies
   
 
41
 
   
 
1
 
   
 
-
 
   
 
100
 
   
 
142
 
Number of issues
(1)
   
 
15
 
   
 
1
 
   
 
-
 
   
 
79
 
   
 
95
 
Remaining weighted average contract period (in years)
   
 
5.8
 
   
 
0.8
 
   
 
-
 
   
 
7.0
 
   
 
6.4
 
Gross insured contractual payments outstanding:
(2)
                                             
Principal
   
$
1,496
 
   
$
2
 
   
$
-
 
   
$
1,441
 
   
$
2,939
 
Interest
   
 
1,751
 
   
 
-
 
   
 
-
 
   
 
572
 
   
 
2,323
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Total
   
$
3,247
 
   
$
2
 
   
$
-
 
   
$
2,013
 
   
$
5,262
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Gross Claim Liability
(3)
   
$
-
 
   
$
-
 
   
$
-
 
   
$
591
 
   
$
591
 
Less:
                                             
Gross Potential Recoveries
(4)
   
 
-
 
   
 
-
 
   
 
-
 
   
 
152
 
   
 
152
 
Discount, net
(5)
   
 
-
 
   
 
-
 
   
 
-
 
   
 
156
 
   
 
156
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Net claim liability (recoverable)
   
$
-
 
   
$
-
 
   
$
-
 
   
$
283
 
   
$
283
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Unearned premium revenue
   
$
10
 
   
$
-
 
   
$
-
 
   
$
9
 
   
$
19
 
Reinsurance recoverable on paid and unpaid losses
(6)
                                       
$
3
 
 
(1) - 
An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt.
 
(2) - 
Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.
 
(3) - 
The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position.
 
(4) - 
Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position.
 
(5) - 
Represents discount related to Gross Claim Liability and Gross Potential Recoveries.
 
(6) - 
Included in “Other assets” on the Company’s consolidated balance sheets.
 
15

 
The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of December 31, 2022:
 
          
          
          
          
          
 
  
Surveillance Categories
$ in millions
  
Caution
List
Low
  
Caution
List
Medium
  
Caution
List
High
  
Classified
List
  
Total
Number of policies
   
 
57
 
   
 
3
 
   
 
-
 
   
 
101
 
   
 
161
 
Number of issues
(1)
   
 
17
 
   
 
2
 
   
 
-
 
   
 
80
 
   
 
99
 
Remaining weighted average contract period (in years)
   
 
5.7
 
   
 
2.4
 
   
 
-
 
   
 
7.2
 
   
 
6.4
 
Gross insured contractual payments outstanding:
(2)
                                             
Principal
   
$
1,723
 
   
$
4
 
   
$
-
 
   
$
1,458
 
   
$
3,185
 
Interest
   
 
1,905
 
   
 
1
 
   
 
-
 
   
 
602
 
   
 
2,508
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total
   
$
3,628
 
   
$
5
 
   
$
-
 
   
$
2,060
 
   
$
5,693
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Gross Claim Liability
(3)
   
$
-
 
   
$
-
 
   
$
-
 
   
$
677
 
   
$
677
 
Less:
                                             
Gross Potential Recoveries
(4)
   
 
-
 
   
 
-
 
   
 
-
 
   
 
198
 
   
 
198
 
Discount, net
(5)
   
 
-
 
   
 
-
 
   
 
-
 
   
 
179
 
   
 
179
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Net claim liability (recoverable)
   
$
-
 
   
$
-
 
   
$
-
 
   
$
300
 
   
$
300
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Unearned premium revenue
   
$
11
 
   
$
-
 
   
$
-
 
   
$
9
 
   
$
20
 
Reinsurance recoverable on paid and unpaid losses
(6)
                                       
$
10
 
 
(1) - 
An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt.
 
(2) - 
Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.
 
(3) - 
The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position.
 
(4) - 
Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position.
 
(5) - 
Represents discount related to Gross Claim Liability and Gross Potential Recoveries.
 
(6) - 
Included in “Other assets” on the Company’s consolidated balance sheets.