Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000814585 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Trading Symbol | MBI | |
Entity Registrant Name | MBIA INC. | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 51,139,497 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity File Number | 1-9583 | |
Entity Tax Identification Number | 06-1185706 | |
Entity Address, Address Line One | 1 Manhattanville Road, Suite 301 | |
Entity Address, City or Town | Purchase | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10577 | |
Entity Incorporation, State or Country Code | CT | |
City Area Code | 914 | |
Local Phone Number | 273-4545 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Investments: | ||
Assets held for sale | $ 74 | $ 80 |
Total assets | 2,990 | 3,375 |
Liabilities: | ||
Liabilities held for sale | 65 | 61 |
Total liabilities | 4,218 | 4,251 |
Commitments and contingencies (Refer to Note 13: Commitments and Contingencies) | ||
Equity: | ||
Preferred stock, par value $1 per share; authorized shares—10,000,000; issued and outstanding—none | 0 | 0 |
Common stock, par value $1 per share; authorized shares--400,000,000; issued shares--283,186,115 and 283,186,115 | 283 | 283 |
Additional paid-in capital | 2,919 | 2,925 |
Retained earnings (deficit) | (1,006) | (653) |
Accumulated other comprehensive income (loss), net of tax of $7 and $8 | (263) | (283) |
Treasury stock, at cost--232,046,875 and 228,333,444 shares | (3,172) | (3,154) |
Total shareholders' equity of MBIA Inc. | (1,239) | (882) |
Preferred stock of subsidiary and noncontrolling interest held for sale | 11 | 6 |
Total equity | (1,228) | (876) |
Total liabilities and equity | 2,990 | 3,375 |
Non Variable Interest Entity [Member] | ||
Investments: | ||
Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $1,808 and $2,044) | 1,555 | 1,812 |
Investments carried at fair value | 346 | 511 |
Short-term investments, at fair value (amortized cost $444 and $353) | 444 | 353 |
Other investments at amortized cost | 3 | 0 |
Total investments | 2,348 | 2,676 |
Cash and cash equivalents | 70 | 50 |
Premiums receivable (net of allowance for credit losses $0 and $0) | 151 | 160 |
Deferred acquisition costs | 32 | 35 |
Insurance loss recoverable | 177 | 137 |
Assets held for sale | 74 | 80 |
Other assets | 78 | 73 |
Liabilities: | ||
Unearned premium revenue | 240 | 266 |
Loss and loss adjustment expense reserves | 450 | 439 |
Long-term debt | 2,546 | 2,428 |
Medium-term notes (includes financial instruments carried at fair value of $37 and $41) | 495 | 501 |
Investment agreements | 225 | 233 |
Derivative liabilities | 23 | 49 |
Liabilities held for sale | 65 | 61 |
Other liabilities | 82 | 94 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Investments: | ||
Investments carried at fair value | 22 | 47 |
Other assets | 2 | 23 |
Cash | 4 | 16 |
Loans receivable at fair value | 32 | 78 |
Liabilities: | ||
Derivative liabilities | 11 | 6 |
Variable interest entity debt (includes financial instruments carried at fair value of $78 and $172) | $ 81 | $ 174 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, authorized shares | 400,000,000 | 400,000,000 |
Common stock, issued shares | 283,186,115 | 283,186,115 |
Accumulated other comprehensive income (loss), taxes | $ 7 | $ 8 |
Treasury stock, shares | 232,046,875 | 228,333,444 |
Non Variable Interest Entity [Member] | ||
Fixed-maturity securities held as available-for-sale, amortized cost | $ 1,808 | $ 2,044 |
Short-term investments, amortized cost | 444 | 353 |
Premiums receivable (net of allowance for credit losses) | 0 | 0 |
Medium-term notes, financial instruments carried at fair value | 37 | 41 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable interest entity debt (includes financial instruments carried at fair value) | $ 78 | $ 172 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Revenues: | |||||
Net realized investment gains (losses) | $ (23) | $ (37) | |||
Net gains (losses) on financial instruments at fair value and foreign exchange | $ 21 | $ 25 | 20 | 51 | |
Net gains (losses) on extinguishment of debt | 0 | 0 | 1 | 4 | |
Fees and reimbursements | 0 | 0 | 0 | 4 | |
Total revenues | 8 | 17 | 38 | 97 | |
Expenses: | |||||
Losses and loss adjustment | 123 | (12) | 158 | 57 | |
Interest | 53 | 46 | 157 | 130 | |
Total expenses | 193 | 52 | 384 | 241 | |
Income (loss) from continuing operations before income taxes | (185) | (35) | (346) | (144) | |
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 | |
Income (loss) from continuing operations | (185) | (35) | (346) | (144) | |
Income (loss) from discontinued operations, net of income taxes | (1) | 1 | (2) | 1 | |
Net income (loss) | (186) | (34) | (348) | (143) | |
Less: Net income from discontinued operations attributable to noncontrolling interest | (1) | 0 | 5 | 0 | |
Net income (loss) attributable to MBIA Inc. | $ (185) | $ (34) | $ (353) | $ (143) | |
Net income (loss) per common share attributable to MBIA Inc. - basic and diluted | |||||
Continuing operations - basic | $ (3.93) | $ (0.68) | $ (7.1) | $ (2.88) | |
Continuing operations - diluted | (3.93) | (0.68) | (7.1) | (2.88) | |
Discontinued operations - basic | (0.01) | 0.01 | (0.15) | 0.01 | |
Discontinued operations - diluted | (0.01) | 0.01 | (0.15) | 0.01 | |
Net income (loss) per common share attributable to MBIA Inc. - basic | (3.94) | (0.67) | (7.25) | (2.87) | |
Net income (loss) per common share attributable to MBIA Inc. - diluted | $ (3.94) | $ (0.67) | $ (7.25) | $ (2.87) | |
Weighted average number of common shares outstanding: | |||||
Basic | [1] | 47,009,765 | 49,878,191 | 48,654,638 | 49,779,681 |
Diluted | [1] | 47,009,765 | 49,878,191 | 48,654,638 | 49,779,681 |
Non Variable Interest Entity [Member] | |||||
Revenues: | |||||
Scheduled premiums earned | $ 9 | $ 10 | $ 27 | $ 31 | |
Refunding premiums earned | 1 | 1 | 1 | 6 | |
Premiums earned (net of ceded premiums of $0, $0, $0 and $1) | 10 | 11 | 28 | 37 | |
Net investment income | 26 | 24 | 89 | 67 | |
Net realized investment gains (losses) | (13) | (13) | (23) | (37) | |
Net gains (losses) on financial instruments at fair value and foreign exchange | 21 | 25 | 20 | 51 | |
Other net realized gains (losses) | (6) | 1 | (5) | (18) | |
Expenses: | |||||
Losses and loss adjustment | 123 | (12) | 158 | 57 | |
Amortization of deferred acquisition costs | 1 | 2 | 3 | 5 | |
Operating | 15 | 14 | 0 | 44 | |
Interest | 53 | 46 | 157 | 130 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Revenues: | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | (23) | (36) | (47) | (16) | |
Other net realized gains (losses) | (7) | 5 | (25) | 5 | |
Expenses: | |||||
Operating | $ 1 | $ 2 | $ 9 | $ 5 | |
[1] Includes approximately 1 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the three and nine months ended September 30, 2023 and 2022 . |
Consolidated Statements Of Op_2
Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financial Guarantee Insurance Segment [Member] | ||||
Ceded premiums earned | $ 0 | $ 0 | $ 0 | $ 1 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statements of Comprehensive Income (Loss) | ||||
Net income (loss) attributable to MBIA Inc. | $ (185) | $ (34) | $ (353) | $ (143) |
Available-for-sale securities with no credit losses: | ||||
Unrealized gains (losses) arising during the period | (65) | (102) | (37) | (399) |
Reclassification adjustments for (gains) losses included in net income (loss) | 3 | (3) | 16 | (5) |
Available-for-sale securities with credit losses: | ||||
Unrealized gains (losses) arising during the period | 0 | 1 | 0 | 0 |
Foreign currency translation: | ||||
Foreign currency translation gains (losses) | 0 | 0 | 0 | 1 |
Instrument-specific credit risk of liabilities measured at fair value: | ||||
Unrealized gains (losses) arising during the period | 1 | (2) | (4) | (22) |
Reclassification adjustments for (gains) losses included in net income (loss) | 11 | 23 | 45 | 11 |
Total other comprehensive income (loss) | (50) | (83) | 20 | (414) |
Comprehensive income (loss) attributable to MBIA Inc. | $ (235) | $ (117) | $ (333) | $ (557) |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total Shareholders' Equity Of MBIA Inc. [Member] | Preferred Stock [Member] | Preferred Stock And Non Controlling Interest Held For Sale [Member] |
Balance (in common stock shares) | 283,186,115 | ||||||||
Balance (in preferred stock shares) | 1,315 | ||||||||
Total equity balance at Dec. 31, 2021 | $ 283 | $ 2,931 | $ (458) | $ 100 | $ (3,169) | $ (313) | $ 13 | ||
Balance (in treasury stock shares) at Dec. 31, 2021 | (228,630,003) | ||||||||
Net income (loss) attributable to MBIA Inc. | $ (143) | (143) | |||||||
Other comprehensive income (loss) | (414) | (414) | |||||||
Treasury shares acquired under share repurchase program | $ 0 | ||||||||
Treasury shares acquired under share repurchase program (in shares) | 0 | ||||||||
Other | $ 17 | ||||||||
Others (in shares) | 344,097 | ||||||||
Period change | (10) | (550) | 1 | ||||||
Total equity balance at Sep. 30, 2022 | (849) | $ 283 | 2,921 | (601) | (314) | $ (3,152) | (863) | 14 | |
Balance (in treasury stock shares) at Sep. 30, 2022 | (228,285,906) | ||||||||
Balance (in common stock shares) | 283,186,115 | ||||||||
Balance (in preferred stock shares) | 1,315 | ||||||||
Total equity balance at Jun. 30, 2022 | $ 283 | 2,919 | (567) | (231) | $ (3,152) | (748) | 13 | ||
Balance (in treasury stock shares) at Jun. 30, 2022 | (228,286,399) | ||||||||
Net income (loss) attributable to MBIA Inc. | (34) | (34) | |||||||
Other comprehensive income (loss) | (83) | (83) | |||||||
Treasury shares acquired under share repurchase program | $ 0 | ||||||||
Treasury shares acquired under share repurchase program (in shares) | 0 | ||||||||
Other | $ 0 | ||||||||
Others (in shares) | 493 | ||||||||
Period change | 2 | (115) | 1 | ||||||
Total equity balance at Sep. 30, 2022 | $ (849) | $ 283 | 2,921 | (601) | (314) | $ (3,152) | (863) | 14 | |
Balance (in treasury stock shares) at Sep. 30, 2022 | (228,285,906) | ||||||||
Balance (in common stock shares) | 283,186,115 | ||||||||
Balance (in preferred stock shares) | 1,315 | ||||||||
Balance (in common stock shares) | 283,186,115 | 283,186,115 | |||||||
Balance (in preferred stock shares) | 0 | 1,315 | |||||||
Total equity balance at Dec. 31, 2022 | $ (876) | $ 283 | 2,925 | (653) | (283) | $ (3,154) | (882) | 6 | |
Balance (in treasury stock shares) at Dec. 31, 2022 | (228,333,444) | (228,333,444) | |||||||
Net income (loss) attributable to MBIA Inc. | $ (353) | (353) | |||||||
Other comprehensive income (loss) | 20 | 20 | |||||||
Treasury shares acquired under share repurchase program | $ (29) | ||||||||
Treasury shares acquired under share repurchase program (in shares) | (3,568,886) | ||||||||
Other | $ 11 | ||||||||
Others (in shares) | (144,545) | ||||||||
Period change | (6) | (357) | 5 | ||||||
Total equity balance at Sep. 30, 2023 | $ (1,228) | $ 283 | 2,919 | (1,006) | (263) | $ (3,172) | (1,239) | 11 | |
Balance (in treasury stock shares) at Sep. 30, 2023 | (232,046,875) | (232,046,875) | |||||||
Balance (in common stock shares) | 283,186,115 | ||||||||
Balance (in preferred stock shares) | 1,315 | ||||||||
Total equity balance at Jun. 30, 2023 | $ 283 | 2,915 | (821) | (213) | $ (3,165) | (1,001) | 12 | ||
Balance (in treasury stock shares) at Jun. 30, 2023 | (231,143,200) | ||||||||
Net income (loss) attributable to MBIA Inc. | $ (185) | (185) | |||||||
Other comprehensive income (loss) | (50) | (50) | |||||||
Treasury shares acquired under share repurchase program | $ (6) | ||||||||
Treasury shares acquired under share repurchase program (in shares) | (672,066) | ||||||||
Other | $ (1) | ||||||||
Others (in shares) | (231,609) | ||||||||
Period change | 0 | (238) | (1) | ||||||
Total equity balance at Sep. 30, 2023 | $ (1,228) | $ 283 | $ 2,919 | $ (1,006) | $ (263) | $ (3,172) | $ (1,239) | $ 11 | |
Balance (in treasury stock shares) at Sep. 30, 2023 | (232,046,875) | (232,046,875) | |||||||
Balance (in common stock shares) | 283,186,115 | 283,186,115 | |||||||
Balance (in preferred stock shares) | 0 | 1,315 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Premiums, fees and reimbursements received | $ 12 | $ 17 |
Investment income received | 77 | 68 |
Financial guarantee losses and loss adjustment expenses paid | (210) | (481) |
Proceeds from recoveries and reinsurance, net of salvage paid to reinsurers | 11 | 647 |
Operating expenses paid and other operating | (55) | (79) |
Other proceeds from consolidated variable interest entities | 28 | 0 |
Interest paid, net of interest converted to principal | (49) | (35) |
Cash (used) provided by discontinued operations | (7) | 3 |
Net cash provided (used) by operating activities | (193) | 140 |
Cash flows from investing activities: | ||
Purchases of available-for-sale investments | (352) | (836) |
Sales of available-for-sale investments | 380 | 859 |
Paydowns, maturities and other proceeds of available-for-sale investments | 187 | 325 |
Purchases of investments at fair value | (61) | (121) |
Sales, paydowns, maturities and other proceeds of investments at fair value | 251 | 189 |
Sales, paydowns and maturities (purchases) of short-term investments, net | (86) | (371) |
Paydowns and maturities of loans receivable | 7 | 7 |
Consolidation of variable interest entities | 0 | 2 |
Deconsolidation of variable interest entities | (2) | 0 |
(Payments) proceeds for derivative settlements | (8) | (9) |
Proceeds (payments) from discontinued operations | (9) | 10 |
Net cash provided (used) by investing activities | 307 | 55 |
Cash flows from financing activities: | ||
Proceeds from investment agreements | 6 | 6 |
Principal paydowns of investment agreements | (4) | (9) |
Principal paydowns of medium-term notes | (10) | (74) |
Proceeds from variable interest entity debt | 62 | 2 |
Principal paydowns/redemptions of variable interest entity debt | (141) | (122) |
Principal paydowns of long-term debt | 0 | (29) |
Purchases of treasury stock | (35) | (3) |
Cash provided (used) by discontinued operations | 5 | 0 |
Net cash provided (used) by financing activities | (117) | (229) |
Effect of exchange rate changes on cash and cash equivalents | 0 | (2) |
Net increase (decrease) in cash and cash equivalents | (3) | (36) |
Cash and cash equivalents - beginning of period | 78 | 160 |
Cash and cash equivalents - end of period | 75 | 124 |
Reconciliation of net income (loss) to net cash provided (used) by operating activities: | ||
Net income (loss) | (348) | (143) |
Income (loss) from discontinued operations, net of income taxes | (2) | 1 |
Income (loss) from continuing operations | (346) | (144) |
Change in: | ||
Unearned premium revenue | (26) | (35) |
Loss and loss adjustment expense reserves | 1 | 145 |
Insurance loss recoverable | (40) | 106 |
Accrued interest payable | 100 | 86 |
Other liabilities | 10 | (49) |
Net realized investment gains (losses) | 23 | 37 |
Net (gains) losses on financial instruments at fair value and foreign exchange | 27 | (35) |
Other net realized (gains) losses | 30 | 13 |
Other operating | 28 | 16 |
Total adjustments to income (loss) from continuing operations | 153 | 284 |
Net cash provided (used) by operating activities | (193) | 140 |
Non-cash investing and finanacing activities: | ||
Loans receivable disposed of a variable interest entity | 28 | 0 |
Other investments, received from sale of net assets held for sale | 3 | 0 |
Fixed-maturity securities held as available-for-sale, received as salvage | 0 | 459 |
Investments carried at fair value, received as salvage | 0 | 277 |
Variable interest entity notes disposed of upon deconsolidation | $ 22 | $ 0 |
Business Developments and Risks
Business Developments and Risks and Uncertainties | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Business Developments and Risks and Uncertainties | Note 1: Business De velopments and Risks and Uncertainties Summary MBIA Inc., together with its consolidated subsidiaries, (collectively, “MBIA” or the “Company”) operates within the financial guarantee insurance industry. MBIA manages three operating segments: 1) United States (“U.S.”) public finance insurance; 2) corporate; and 3) international and structured finance insurance. The Company’s U.S. public finance insurance business is managed through National Public Finance Guarantee Corporation (“National”), the corporate segment is operated through MBIA Inc. and several of its subsidiaries, including its service company, MBIA Services Corporation (“MBIA Services”) and its international and structured finance insurance business is primarily operated through MBIA Insurance Corporation and its subsidiaries (“MBIA Corp.”). Refer to “Note 10: Business Segments” for further information about the Company’s operating segments. Business Developments Puerto Rico On January 1, 2023, the Puerto Rico Electric Power Authority (“PREPA”) defaulted on scheduled debt service for National insured bonds and National paid gross claims in the aggregate of $ 18 million. In addition, on July 1, 2023, PREPA defaulted on scheduled debt service for National insured bonds and National paid gross claims in the aggregate of $ 119 million. As of September 30, 2023, National had $ 808 million of debt service outstanding related to PREPA. PREPA On March 8, 2022, the Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”) and PREPA terminated the restructuring support agreement. On April 8, 2022, the Court appointed a new panel of judges to commence mediation among the Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”), the Ad Hoc creditor group of holders of PREPA Senior Bonds, Assured Guaranty Corp. and Assured Guaranty Municipal Corp. (“Assured”), National and Syncora Guarantee, Inc. The mediation initially terminated on September 16, 2022; however on September 29, 2022 the Court entered an order restarting mediation through January 31, 2023. Mediation was further continued until July 28, 2023. On January 31, 2023, National entered into the PREPA Plan Support Agreement (“PREPA PSA”) with the Oversight Board, on behalf of itself and as the sole Title III representative of PREPA. On February 9, 2023, the Oversight Board filed an amendment to PREPA’s Plan of Adjustment originally filed with the Title III Court on December 16, 2022 (the “Amended Plan”), that reflects the entry into the PREPA PSA and the settlement described therein. On June 26, 2023, the Court entered an order reducing bondholder allowed net unsecured claims to $ 2.4 billion from approximately $ 7.6 billion. On August 25, 2023, National entered into the First Amendment to the PREPA Plan Support Agreement (the “Amended PSA”) with the Oversight Board, on behalf of itself and as the sole Title III representative of PREPA. On August 25, 2023, the Oversight Board filed its Third Amended Title III Plan of Adjustment (the “Third Amended Plan”) incorporating, among other things, the terms of the Amended PSA. The Amended PSA provides that, upon the effective date of the Third Amended Plan, National shall receive cash, together with certain fees and expense reimbursement payments, in an amount based in part on the ultimate participation by a joinder date, if any, of certain currently non-accepting holders of uninsured PREPA bonds. The Amended PSA also provides National with additional consideration in the form of two types of contingent values instruments, whose value cannot be assured. The Amended PSA remains subject to a number of conditions, including (but not limited to) the Title III Court’s approval of the Amended PSA and the confirmation and effectiveness of the Third Amended Plan, as it may be further amended with the Court’s approval. Refer to “Note 5: Loss and Loss Adjustment Expense Reserves” for a further discussion of the Company’s Puerto Rico reserves and recoveries. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 1: Business Developments and Risks and Uncertainties (continued) Zohar CDOs Payment of claims on MBIA Corp.’s policies insuring the Class A-1 and A-2 notes issued by Zohar collateralized debt obligation (“CDO”) 2003-1, Limited (“Zohar I”) and Zohar II 2005-1, Limited (“Zohar II”) (collectively, the “Zohar CDOs”), entitled MBIA Corp. to reimbursement of such amounts plus interest and expenses and/or to exercise certain rights and remedies to seek recovery of such amounts. MBIA Corp. has anticipated that it would receive substantial recoveries on the loans made to, and equity interests in, portfolio companies that, until late March of 2020, were purportedly controlled and managed by the sponsor and former collateral manager of the Zohar CDOs (collectively, the “Zohar Collateral”). Since March of 2018, MBIA Corp. had been pursuing those recoveries in a Delaware bankruptcy proceeding filed by the Zohar CDOs (“Zohar Funds Bankruptcy Cases”). Pursuant to a plan of liquidation that became effective in August of 2022, all remaining Zohar Collateral was distributed to MBIA Corp. either directly or in the form of interests in certain asset recovery entities. There still remains significant uncertainty with respect to the realizable value of the remaining loans and equity interests that formerly constituted the Zohar Collateral. Further, as the monetization of these assets unfolds, and new information concerning the financial condition of the portfolio companies is disclosed, the Company will continue to revise its expectations for recoveries. The interests in the asset recovery entities include various loans to and equity interest in portfolio companies. For those portfolio companies in which the Company does not have a majority of the voting interest, the Company recorded these assets as investments. For those portfolio companies in which the Company owns a majority of the voting interest, the Company consolidated the assets, liabilities, and financial results of these companies. In accordance with Accounting Standards Codification (“ASC”) 360-10, Property, Plant, and Equipment and ASC 205-20, Presentation of Financial Statements-Discontinued Operations, certain of these portfolio companies met the criteria to be classified as held for sale and discontinued operations. Refer to the following “Discontinued Operations” section below for further information about the Company’s discontinued operations. In addition, certain of the Zohar debtors’ litigation claims were transferred into a litigation trust that the Company consolidated as a variable interest entity (“VIE”). Discontinued Operations For those Zohar-related portfolio companies in which the Company acquired an interest and which have met the criteria for held for sale classification in accordance with ASC 360, the Company classified these entities as held for disposition. Accordingly, the Company classified the assets and liabilities of consolidated portfolio companies and the interests in certain nonconsolidated portfolio companies as held for sale. Furthermore, as these entities met the one-year probable sale criteria on the acquisition date, and the remaining held for sale criteria within a short period following the acquisition date, these entities were classified as discontinued operations in accordance with ASC 205. As of September 30, 2023 and December 31, 2022, the assets and liabilities of these entities are presented within “Assets held for sale” and “Liabilities held for sale” on the Company’s consolidated balance sheets. Additionally, the results of operations for these entities are classified as “Income from discontinued operations, net of income taxes” on the Company’s consolidated statements of operations for the three and nine months ended September 30, 2023. During the three months ended September 30, 2023, the net assets of one of the Company's Zohar-related portfolio companies that was classified as held for sale was disposed. The consideration received as part of this disposition was approximate to the carrying value of the assets and liabilities held for sale. In the first quarter of 2023, the Company recorded income from discontinued operations, net of income taxes of $ 18 million to correct the overstatement of a loss recognized in the fourth quarter of 2022 related to the loss on disposal group. Additionally, the Company recorded a loss from discontinued operations attributable to noncontrolling interests in the first quarter of 2023 of $ 8 million to correct the overstatement of a loss attributable to noncontrolling interests recognized in the fourth quarter of 2022. The Company evaluated the materiality of these errors in accordance with Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin No. 99, Materiality, and SEC Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements When Quantifying Misstatements in Current Year Financial Statements, and concluded that these errors, individually and in the aggregate, were immaterial to the current and the prior periods to which these errors relate. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 1: Business Developments and Risks and Uncertainties (continued) The following table summarizes the components of assets and liabilities held for sale: As of In millions September 30, 2023 December 31, 2022 Assets held for sale Cash $ 1 $ 12 Accounts receivable 18 24 Goodwill 90 90 Other assets 11 8 Loss on disposal group ( 46 ) ( 54 ) Total assets held for sale $ 74 $ 80 Liabilities held for sale Accounts payable $ 8 $ 12 Debt 37 30 Accrued expenses and other 20 19 Total liabilities held for sale $ 65 $ 61 The results of operations from discontinued operations for the three and nine months ended September 30, 2023 and 2022 consist of the following: Three Months Ended September 30, Nine Months Ended September 30, In millions 2023 2022 2023 2022 Revenues: Revenues $ 29 $ 23 $ 92 $ 23 Cost of sales 15 11 46 11 Total revenues from discontinued operations 14 12 46 12 Expenses: Operating 16 11 53 11 Interest 1 - 3 - Increase (decrease) on loss on disposal group ( 2 ) - ( 8 ) - Total expenses from discontinued operations 15 11 48 11 Income (loss) before income taxes from discontinued operations ( 1 ) 1 ( 2 ) 1 Provision (benefit) for income taxes from discontinued operations - - - - Income (loss) from discontinued operations, net of income taxes $ ( 1 ) $ 1 $ ( 2 ) $ 1 Risks and Uncertainties The Company’s financial statements include estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The outcome of certain significant risks and uncertainties could cause the Company to revise its estimates and assumptions or could cause actual results to differ materially from the Company’s estimates. The discussion below highlights the significant risks and uncertainties that could have a material effect on the Company’s financial statements and business objectives in future periods. National’s Insured Portfolio National continues to monitor and remediate its existing insured portfolio and may also pursue other transactions, including a special dividend that could enhance shareholder value. Certain state and local governments and territory obligors that National insures are under financial and budgetary stress. This could lead to an increase in defaults by such entities on the payment of their obligations and losses or impairments on a greater number of National’s insured transactions. In particular, PREPA is currently in bankruptcy-like proceedings in the United States District Court for the District of Puerto Rico. While National has entered into an agreement to support a plan to resolve the PREPA proceeding, PREPA may continue to fail to make payments when due, which could cause National to make additional claims payments which could be material. There is no assurance the PREPA amended plan of adjustment will ultimately be confirmed and go effective. National monitors and analyzes these situations and other stressed credits closely, and the overall extent and duration of this stress is uncertain. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 1: Business Developments and Risks and Uncertainties (continued) MBIA Corp.’s Insured Portfolio MBIA Corp.’s primary objectives are to satisfy all claims by its policyholders and to maximize future recoveries, if any, for its surplus note holders, and then its preferred stock holders. MBIA Corp. is executing this strategy by, among other things, taking steps to maximize the collection of recoveries and by reducing and mitigating potential losses on its insurance exposures. MBIA Corp.’s insured portfolio performance could deteriorate and result in additional significant loss reserves and claim payments. MBIA Corp.’s ability to meet its obligations is limited by available liquidity and its ability to secure additional liquidity through financing and other transactions. There can be no assurance that MBIA Corp. will be successful in generating sufficient resources to meet its obligations. Recoveries In addition to the recoveries on the Zohar Collateral, MBIA Corp. also projects to collect recoveries from prior claims associated with insured residential mortgage-backed securities (“RMBS”); however, the amount and timing of these collections are uncertain. Failure to collect its expected recoveries could impede MBIA Corp.’s ability to make payments when due on other policies. MBIA Corp. believes that if the New York State Department of Financial Services (“NYSDFS”) concludes at any time that MBIA Insurance Corporation will not be able to pay its policyholder claims, the NYSDFS would likely put MBIA Insurance Corporation into a rehabilitation or liquidation proceeding under Article 74 of the New York Insurance Law (“NYIL”) and/or take such other actions as the NYSDFS may deem necessary to protect the interests of MBIA Insurance Corporation’s policyholders. The determination to commence such a proceeding or take other such actions is within the exclusive control of the NYSDFS. Given the separation of MBIA Inc. and MBIA Corp. as distinct legal entities, the absence of any cross defaults between the entities and the lack of reliance by MBIA Inc. on MBIA Corp. for dividends, the Company does not believe that a rehabilitation or liquidation proceeding with respect to MBIA Insurance Corporation would have any significant liquidity impact on MBIA Inc. Such a proceeding could have material adverse consequences for MBIA Corp., including the termination of derivative contracts for which counterparties may assert market-based claims, the acceleration of debt obligations issued by affiliates and insured by MBIA Corp., the loss of control of MBIA Insurance Corporation to a rehabilitator or liquidator, and unplanned costs. Refer to “Note 5: Loss and Loss Adjustment Expense Reserves” for additional information about MBIA Corp.’s recoveries. Corporate Liquidity Based on the Company’s projections of National’s dividends and other cash inflows, the Company expects that MBIA Inc. will have sufficient cash to satisfy its debt service and general corporate needs. However, MBIA Inc. continues to have liquidity risk that could be caused by interruption of or reduction in dividends from National, deterioration in the performance of invested assets, impaired access to the capital markets, as well as other factors, which are not anticipated at this time. Furthermore, failure by MBIA Inc. to settle liabilities that are insured by MBIA Corp. could result in claims on MBIA Corp. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Significant Accounting Policies | Note 2: Signif icant Accounting Policies The Company has disclosed its significant accounting policies in “Note 2: Significant Accounting Policies” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The following significant accounting policies provide an update to those included in the Company’s Annual Report on Form 10-K. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 2: Significant Accounting Policies (continued) Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and, accordingly, do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual periods. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board (U.S.), but in the opinion of management such financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company’s consolidated financial position and results of operations. All material intercompany balances and transactions have been eliminated. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As additional information becomes available or actual amounts become determinable, the recorded estimates are revised and reflected in operating results. The results of operations for the three and nine months ended September 30, 2023 may not be indicative of the results that may be expected for the year ending December 31, 2023. The December 31, 2022 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP for annual periods. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Recent Accounting Pronouncements | Note 3: Recen t Accounting Pronouncements Recently Adopted Accounting Standards In January of 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-01, “Reference Rate Reform – Scope,” which clarified the scope and application of the original guidance, ASU 2020-04,“Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” issued in March of 2020. In December of 2022, the FASB issued ASU 2022-06,“Reference Rate Reform – Deferral of the Sunset Date of Topic 848,” which extends the sunset date to December 31, 2024. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships that reference London Interbank Offered Rate (“LIBOR”) or other rates that are expected to be discontinued, subject to meeting certain criteria. These ASUs were effective upon issuance, and the Company may elect to apply the amendments prospectively through December 31, 2024. The Company adopted these ASUs in the second quarter of 2023 and the adoption of these ASUs did not materially affect the Company’s consolidated financial statements. The Company has identified LIBOR transition primarily effecting its insurance portfolio exposures that reference or are indexed to LIBOR, interest rate swaps referencing LIBOR, investments indexed to an interbank offered rate, including LIBOR, and MBIA Corp.’s surplus notes. The Company will be applying the accounting relief as relevant contract modifications are made through December 31, 2024. Contract modifications are expected to only include those that address a LIBOR transition. The Company has not adopted any other new accounting pronouncements that had a material impact on its consolidated financial statements. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Variable Interest Entities | Note 4: Va riable Interest Entities Primarily through MBIA’s international and structured finance insurance segment, the Company provides credit protection to issuers of obligations that may involve issuer-sponsored special purpose entities (“SPEs”). An SPE may be considered a variable interest entity (“VIE”) to the extent the SPE’s total equity at risk is not sufficient to permit the SPE to finance its activities without additional subordinated financial support or its equity investors lack any one of the following characteristics: (i) the power to direct the activities of the SPE that most significantly impact the entity’s economic performance or (ii) the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the entity. A holder of a variable interest or interests in a VIE is required to assess whether it has a controlling financial interest, and thus is required to consolidate the entity as primary beneficiary. An assessment of a controlling financial interest identifies the primary beneficiary as the variable interest holder that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. An ongoing reassessment of controlling financial interest is required to be performed based on any substantive changes in facts and circumstances involving the VIE and its variable interests. The Company evaluates issuer-sponsored SPEs initially to determine if an entity is a VIE, and is required to reconsider its initial determination if certain events occur. For all entities determined to be VIEs, MBIA performs an ongoing reassessment to determine whether its guarantee to provide credit protection on obligations issued by VIEs provides the Company with a controlling financial interest. Based on its ongoing reassessment of controlling financial interest, the Company determines whether a VIE is required to be consolidated or deconsolidated. The Company makes its determination for consolidation based on a qualitative assessment of the purpose and design of a VIE, the terms and characteristics of variable interests of an entity, and the risks a VIE is designed to create and pass through to holders of variable interests. The Company generally provides credit protection on obligations issued by VIEs, and holds certain contractual rights according to the purpose and design of a VIE. The Company may have the ability to direct certain activities of a VIE depending on facts and circumstances, including the occurrence of certain contingent events, and these activities may be considered the activities that most significantly impact the VIE’s economic performance. The Company generally considers its guarantee of principal and interest payments of insured obligations, given nonperformance by a VIE, to be an obligation to absorb losses of the entity that could potentially be significant to the VIE. At the time the Company determines it has the ability to direct the activities of a VIE that most significantly impact the economic performance of the entity based on facts and circumstances, MBIA is deemed to have a controlling financial interest in the VIE and is required to consolidate the entity as primary beneficiary. The Company performs an ongoing reassessment of controlling financial interest that may result in consolidation or deconsolidation of any VIE. Consolidated VIEs The carrying amounts of assets and liabilities are presented separately in “Assets of consolidated variable interest entities” and “Liabilities of consolidated variable interest entities” on the Company’s consolidated balance sheets. VIEs are consolidated or deconsolidated based on an ongoing reassessment of controlling financial interest, when events occur or circumstances arise, and whether the ability to exercise rights that constitute power to direct activities of any VIE are present according to the design and characteristics of these entities. During the third, second and first quarters of 2023, the Company deconsolidated one structured finance VIE each quarter due to the commutation of the credit enhancement on or prepayments of the outstanding notes of the VIEs that the Company insured and recorded losses of $ 7 million, $ 7 million and $ 15 million, respectively. For the nine months ended September 30, 2023, no additional VIEs were consolidated. During the third quarter of 2022, the Company consolidated one VIE related to the Zohar CDOs' emergence from bankruptcy. Also, in the third quarter of 2022, the Company deconsolidated one VIE. There were no gains (losses) on the consolidation and deconsolidation of the VIEs in the third quarter of 2022. During second and first quarters of 2022, there were no consolidation or deconsolidation of VIEs by the Company. Consolidation and deconsolidation gains and losses, if any, are recorded within “Other net realized gains (losses)” under “Revenues of consolidated variable interest entities” on the Company’s consolidated statements of operations. Holders of insured obligations of issuer-sponsored VIEs do not have recourse to the general assets of the Company. In the event of nonpayment of an insured obligation issued by a consolidated VIE, the Company is obligated to pay principal and interest, when due, on the respective insured obligation only. The Company’s exposure to consolidated VIEs is limited to the credit protection provided on insured obligations and any additional variable interests held by the Company. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 4: Variable Interest Entities (continued) Nonconsolidated VIEs The following tables present the Company’s maximum exposure to loss for nonconsolidated VIEs and carrying values of the assets and liabilities for its interests in these VIEs in its insurance operations as of September 30, 2023 and December 31, 2022. The maximum exposure to loss as a result of MBIA’s variable interests in VIEs is represented by insurance in force. Insurance in force is the maximum future payments of principal and interest which may be required under commitments to make payments on insured obligations issued by nonconsolidated VIEs. The Company has aggregated nonconsolidated VIEs based on the underlying credit exposure of the insured obligation. The nature of the Company’s variable interests in nonconsolidated VIEs is related to financial guarantees and any investments in obligations issued by nonconsolidated VIEs. September 30, 2023 Carrying Value of Assets Carrying Value of Liabilities In millions Maximum Exposure to Loss Investments Premiums Receivable Insurance Loss Recoverable Unearned Premium Revenue Loss and Loss Adjustment Expense Reserves Insurance: Global structured finance: Mortgage-backed residential $ 848 $ 18 $ 5 $ 19 $ 3 $ 219 Consumer asset-backed 130 - - 1 - 3 Corporate asset-backed 413 - 2 7 3 - Total global structured finance 1,391 18 7 27 6 222 Global public finance 216 - 4 - 4 - Total insurance $ 1,607 $ 18 $ 11 $ 27 $ 10 $ 222 December 31, 2022 Carrying Value of Assets Carrying Value of Liabilities In millions Maximum Exposure to Loss Investments Premiums Receivable Insurance Loss Recoverable Unearned Premium Revenue Loss and Loss Adjustment Expense Reserves Insurance: Global structured finance: Mortgage-backed residential $ 996 $ 75 $ 6 $ 21 $ 4 $ 277 Consumer asset-backed 164 - - - 1 5 Corporate asset-backed 450 - 3 7 3 - Total global structured finance 1,610 75 9 28 8 282 Global public finance 230 - 5 - 4 - Total insurance $ 1,840 $ 75 $ 14 $ 28 $ 12 $ 282 |
Loss and Loss Adjustment Expens
Loss and Loss Adjustment Expense Reserves | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Loss and Loss Adjustment Expense Reserves | Note 5: Loss an d Loss Adjustment Expense Reserves U.S. Public Finance Insurance U.S. public finance insured transactions consist of municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utilities, airports, health care institutions, higher educational facilities, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. The Company estimates future losses by using probability-weighted cash flow scenarios that are customized to each insured transaction. Future loss estimates consider debt service due for each insured transaction, which includes par outstanding and interest due, as well as recoveries for such payments, if any. Gross par outstanding for capital appreciation bonds represents the par amount at the time of issuance of the insurance policy. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 5: Loss and Loss Adjustment Expense Reserves (continued) Puerto Rico In formulating loss reserves and recoveries for its Puerto Rico exposures, estimates in the Company’s probability-weighted scenarios include assumptions related to the nature, value, and timing of net cash flows considering the following: environmental, economic, and political developments on the island; litigation and ongoing discussions with creditors and obligors on the Title III proceedings; contractual debt service payments; any existing settlement agreements or proposals and deviations from these proposals; the remediation strategy for insured obligations that have defaulted or are expected to default; and values of other obligations of the issuer. Refer to “Note 1: Business Developments and Risks and Uncertainties” for further information on the Company’s Puerto Rico exposures. International and Structured Finance Insurance The international and structured finance insurance segment’s case basis reserves and insurance loss recoveries recorded in accordance with GAAP do not include reserves and recoveries on consolidated VIEs, since they are eliminated in consolidation. RMBS Case Basis Reserves (Financial Guarantees) The Company’s RMBS case basis reserves primarily relate to RMBS backed by alternative A-paper and subprime mortgage loans. The Company calculated RMBS case basis reserves as of September 30, 2023 using a process called the Roll Rate Methodology (“Roll Rate Methodology”). The Roll Rate Methodology is a multi-step process using databases of loan level information, proprietary internal cash flow models, and commercially available models to estimate potential losses and recoveries on insured bonds. Roll Rate is defined as the probability that current loans become delinquent and subsequently default and loans in the delinquent pipeline are charged-off or liquidated. The loss reserve estimates are based on a probability-weighted average of potential scenarios of loan losses. Additional data used for both first and second-lien loans include historic averages of deal specific voluntary prepayment rates, forward projections of the secured overnight financing rate, and historic averages of deal-specific loss severities. Where applicable, the Company factors in termination scenarios when clean up calls are imminent. In calculating ultimate cumulative losses for RMBS, the Company estimates the amount of first-lien loans that are expected to be liquidated in the future through foreclosure or short sale, and estimates, the amount of second-lien loans that are expected to be charged-off (deemed uncollectible by servicers of the transactions). The time to liquidation for a defaulted loan is specific to the loan’s delinquency bucket. For all RMBS transactions, cash flow models consider allocations and other structural aspects and claims against MBIA Corp.’s insurance policy consistent with such policy’s terms and conditions. The estimated net claims from the procedure above are then discounted using a risk-free rate to a net present value reflecting MBIA’s general obligation to pay claims over time and not on an accelerated basis. The Company monitors RMBS portfolio performance on a monthly basis against projected performance, reviewing delinquencies, roll rates, and prepayment rates (including voluntary and involuntary). However, loan performance remains difficult to predict and losses may exceed expectations. In the event of a material deviation in actual performance from projected performance, the Company would increase or decrease the case basis reserves accordingly and re-evaluate its assumptions. RMBS Recoveries The Company’s RMBS recoveries relate to structural features within the trust structures that allow for the Company to be reimbursed for prior claims paid. These reimbursements for specific trusts include recoveries that are generated from the excess spread of the transactions. Excess spread within insured RMBS securitizations is the difference between interest inflows on mortgage loan collateral and interest outflows on the insured RMBS notes. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 5: Loss and Loss Adjustment Expense Reserves (continued) Summary of Loss and LAE Reserves and Recoveries The Company’s loss and LAE reserves and recoveries before consolidated VIE eliminations, along with amounts that were eliminated as a result of consolidating VIEs for the international and structured finance insurance segment, which are included in the Company’s consolidated balance sheets as of September 30, 2023 and December 31, 2022 are presented in the following table: As of September 30, 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 $ 150 $ 228 $ 107 $ 154 International and Structured Finance Insurance: Before VIE eliminations 28 314 32 488 VIE eliminations ( 1 ) ( 92 ) ( 2 ) ( 203 ) Total international and structured finance insurance 27 222 30 285 Total $ 177 $ 450 $ 137 $ 439 (1) - Amounts are net of estimated recoveries of expected future claims. Changes in Loss and LAE Reserves Loss and LAE reserves represent the Company’s estimate of future claims and LAE payments, net of any future recoveries of such payments. The following table presents changes in the Company’s loss and LAE reserves for the nine months ended September 30, 2023. Changes in loss and LAE reserves, with the exception of loss and LAE payments and the impact of the revaluation of loss reserves denominated in amounts other than U.S. dollars, are recorded in “Losses and loss adjustment” expenses in the Company’s consolidated statements of operations. As of September 30, 2023 , the weighted average risk-free rate used to discount the Company’s loss reserves (claim liability) was 4.80 %. LAE reserves are generally expected to be settled within a one-year period and are not discounted. As of September 30, 2023 and December 31, 2022 , the Company’s gross loss and LAE reserves included $ 10 million and $ 12 million, respectively, related to LAE. In millions Changes in Loss and LAE Reserves for the Nine Months Ended September 30, 2023 Gross Loss Gross Loss and LAE Accretion Changes in and LAE Reserves as of Loss of Claim Changes in Unearned Reserves as of December 31, and LAE Liability Discount Changes in Premium September 30, 2022 Payments Discount Rates Assumptions (1) Revenue 2023 $ 439 $ ( 210 ) $ 9 $ ( 24 ) $ 234 $ 2 $ 450 (1) - Includes changes in amount and timing of estimated payments and recoveries. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 5: Loss and Loss Adjustment Expense Reserves (continued) The increase in the Company’s loss and LAE reserves was primarily due to updated scenarios to reflect the Amended PSA with PREPA, partially offset by claims payments on PREPA and the termination of a first-lien RMBS insured transaction. In addition, an increase in risk-free rates during 2023, caused future liabilities, net of recoveries to decline primarily on our RMBS insured transactions. Changes in Insurance Loss Recoverable Insurance loss recoverable represents the Company’s estimate of expected recoveries on paid claims and LAE. The Company recognizes potential recoveries on paid claims based on the probability-weighted net cash inflows present valued at applicable risk-free rates as of the measurement date. The following table presents changes in the Company’s insurance loss recoverable for the nine months ended September 30, 2023. Changes in insurance loss recoverable with the exception of collections, are recorded in “Losses and loss adjustment” expenses in the Company’s consolidated statements of operations. Changes in Insurance Loss Recoverable for the Nine Months Ended September 30, 2023 Gross Gross Recoverable Recoverable as of Accretion Changes in as of December 31, Collections of Discount Changes in September 30, In millions 2022 for Cases Recoveries Rates Assumptions 2023 Insurance loss recoverable $ 137 $ ( 7 ) $ 3 $ 1 $ 43 $ 177 The increase in the Company’s insurance loss recoverable reflected in the preceding table was primarily due to the PREPA January and July debt services payments, and includes a change in scenarios to reflect the current status of a proposed settlement which is expected in 2024. Loss and LAE Activity For the three and nine months ended September 30, 2023, the incurred loss primarily relates to updating PREPA scenarios to reflect the Amended PSA, which resulted in lower net expected recoveries. Changes in scenario assumptions also include extending the effective date of a settlement until 2024. This incurred loss was partially offset by an increase in risk-free rates, which caused future reserves, net of recoveries, to decline, primarily on the Company’s first-lien RMBS portfolio. In addition, for the nine months ended September 30, 2023, the incurred loss included the termination of a first-lien RMBS insured transaction. For the three months ended September 30, 2022, the loss and LAE benefit primarily related to an increase in risk-free rates, which decreased the present value of net case reserves on first-lien RMBS transactions. This was partially offset by changes in assumptions used to estimate the fair value of the new Puerto Rico Highway and Transportation Authority (“HTA”) bonds that National expected to receive. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 5: Loss and Loss Adjustment Expense Reserves (continued) For the nine months ended September 30, 2022, loss and LAE incurred primarily related to changes in the Company’s estimate of expected recoveries on National’s PREPA exposure to reflect the current status of a PREPA remediation. PREPA loss reserves and recoveries include certain assumptions about the timing and amount of claims payments and recoveries, including assumptions about the values of recoveries on the date the Company expects to receive reimbursement under a remediation. During the nine months ended September 30, 2022, the Company updated assumptions used to estimate the value of recoveries and the timing and amount of claim payments to reflect the current status of remediation. These assumption changes resulted in a decrease in the Company’s estimated present value of expected PREPA recoveries. This was partially offset by loss benefits related to HTA and Puerto Rico Commonwealth GO (“GO”) Bonds recoveries. During the nine months ended September 30, 2022, the Company’s HTA recoveries increased, based on updated information related to the fair value of the HTA contingent value instrument that National received in July of 2022 and its estimated value of the HTA bonds National expected to receive. In addition, the Company recorded a loss benefit on its GO recoveries to reflect the fair values of the consideration received as of the acquisition date, which was higher than its previous estimate. Additionally, an increase in risk-free rates during the first nine months of 2022, resulted in a decrease in the present value of net case reserves on first-lien RMBS. Costs associated with remediating insured obligations assigned to the Company’s surveillance categories are recorded as LAE and are included in “Losses and loss adjustment” expenses on the Company’s consolidated statements of operations. For the three months ended September 30, 2023 and 2022 , gross LAE related to remediating insured obligations were $ 2 million and a benefit of $ 1 million, respectively. For the nine months ended September 30, 2023 and 2022 , gross LAE related to remediating insured obligations was $ 7 million and $ 4 million, respectively. Surveillance Categories The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of September 30, 2023: Surveillance Categories Caution Caution Caution List List List Classified $ in millions Low Medium High List Total Number of policies 36 1 - 95 132 Number of issues (1) 13 1 - 78 92 Remaining weighted average contract period (in years) 5.6 0.3 - 7.0 6.3 Gross insured contractual payments outstanding: (2) Principal $ 1,411 $ 2 $ - $ 1,255 $ 2,668 Interest 1,697 - - 494 2,191 Total $ 3,108 $ 2 $ - $ 1,749 $ 4,859 Gross Claim Liability (3) $ - $ - $ - $ 653 $ 653 Less: Gross Potential Recoveries (4) - - - 235 235 Discount, net (5) - - - 147 147 Net claim liability (recoverable) $ - $ - $ - $ 271 $ 271 Unearned premium revenue $ 9 $ - $ - $ 8 $ 17 Reinsurance recoverable on paid and unpaid losses (6) $ 13 (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. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 5: Loss and Loss Adjustment Expense Reserves (continued) 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 Caution Caution Caution List List List Classified $ in millions Low Medium High 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. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Fair Value Of Financial Instruments | Note 6: Fair Value of Financial Instruments Fair Value Measurement Financial Assets and Liabilities Financial assets held by the Company primarily consist of investments in debt and equity securities and loans receivables at fair value held by consolidated VIEs. Financial liabilities, excluding derivative liabilities, issued by the Company primarily consist of debt issued for general corporate purposes within its corporate segment, MTNs, investment agreements, and debt issued by consolidated VIEs. The Company’s derivative liabilities are primarily interest rate swaps. Valuation Techniques Valuation techniques for financial instruments measured at fair value are described below. Fixed-Maturity Securities Held as Available-For-Sale, Investments Carried at Fair Value, Investments Pledged as Collateral and Short-term Investments These investments include investments in U.S. Treasury and government agencies, state and municipal bonds, foreign governments, corporate obligations, MBS, ABS, money market securities, and equity investments. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 6: Fair Value of Financial Instruments (continued) Substantially all of these investments are valued based on recently executed transaction prices or quoted market prices by independent third parties, including pricing services and brokers. When quoted market prices are not available, fair value is generally determined using quoted prices of similar investments or a valuation model based on observable and unobservable inputs. Inputs vary depending on the type of investment. Observable inputs include contractual cash flows, interest rate yield curves, credit default swap (“CDS”) spreads, prepayment and volatility scores, diversity scores, cross-currency basis index spreads, and credit spreads for structures similar to the financial instrument in terms of issuer, maturity and seniority. Unobservable inputs include cash flow projections, the value of any credit enhancement and for certain equity investments, EBITDA multiples, discount rates, hard asset values and type certificate values. Investments based on quoted market prices of identical investments in active markets are classified as Level 1 of the fair value hierarchy. Level 1 investments generally consist of U.S. Treasury and government agency, money market securities and equity investments. Quoted market prices of investments in less active markets, as well as investments which are valued based on other than quoted prices for which the inputs are observable, such as interest rate yield curves, are categorized in Level 2 of the fair value hierarchy. Investments that contain significant inputs that are not observable are categorized as Level 3. Cash and Cash Equivalents The carrying amounts of cash and cash equivalents approximate fair value due to the short-term nature and credit worthiness of these instruments and are categorized in Level 1 of the fair value hierarchy. Loans Receivable at Fair Value Loans receivable at fair value are assets held by consolidated VIEs consisting of residential mortgage loans and are categorized in Level 3 of the fair value hierarchy. Fair values of residential mortgage loans are determined using quoted prices for similar securities or internal cash flow models, adjusted for the fair values of the financial guarantees provided by MBIA Corp. on the related MBS. The fair values of the financial guarantees consider expected claim payments, net of recoveries, under MBIA Corp.’s policies. Other Assets Other assets include receivables representing the right to receive reimbursement payments on claim payments expected to be made on certain insured VIE liabilities due to risk mitigating transactions with third parties executed to effectively defease, or, in-substance commute the Company’s exposure on its financial guarantee policies. The right to receive reimbursement payments is based on the value of the Company’s financial guarantee determined using a cash flow model. The fair value of the financial guarantee primarily contains unobservable inputs and is categorized in Level 3 of the fair value hierarchy. Medium-term Notes at Fair Value The Company has elected to measure certain medium-term notes (“MTNs”) at fair value on a recurring basis. The fair values of certain MTNs are based on quoted market prices provided by third-party sources, where available. When quoted market prices are not available, the Company applies a matrix pricing grid to determine fair value based on the quoted market prices received for similar instruments and considering the MTNs’ stated maturity and interest rate. Nonperformance risk is included in the quoted market prices and the matrix pricing grid. MTNs are categorized in Level 3 of the fair value hierarchy and do not include accrued interest. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 6: Fair Value of Financial Instruments (continued) Variable Interest Entity Debt The fair values of VIE debt are determined based on recently executed transaction prices or quoted prices where observable. When position-specific quoted prices are not observable, fair values are based on quoted prices of similar securities or internal cash flow models. Fair values based on quoted prices of similar securities and internal cash flow models may be adjusted for factors unique to the securities, including any credit enhancement. Observable inputs include interest rate yield curves, bond spreads of similar securities and MBIA Corp.’s CDS spreads. Unobservable inputs include the value of any credit enhancement. VIE debt are categorized in Level 3 of the fair value hierarchy based on the lowest level input that is significant to the fair value measurement in its entirety. Derivatives The corporate segment has entered into derivative transactions primarily consisting of interest rate swaps. Fair values of over-the-counter derivatives are determined using valuation models based on observable inputs, nonperformance risk of the Company and nonperformance risk of the counterparties. Observable and market-based inputs include interest rate yields, credit spreads and volatilities. These derivatives are categorized in Level 2 of the fair value hierarchy based on the lowest level input that is significant to the fair value measurement in its entirety. A VIE consolidated by the Company entered into a derivative instrument consisting of a cross currency swap. The cross currency swap was entered into to manage the variability in cash flows resulting from fluctuations in foreign currency rates. The fair value of the VIE derivative was determined based on the valuation provided by an independent third party, which is included in “Liabilities of consolidated variable interest entities – Derivative liabilities” on the Company’s consolidated balance sheets. As the significant inputs are unobservable, the derivative contract is categorized in Level 3 of the fair value hierarchy. Significant Unobservable Inputs The following tables provide quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022: Fair Value as of Range September 30, (Weighted In millions 2023 Valuation Techniques Unobservable Input Average) Assets: Equity Investments $ 115 Discounted cash flow EBITDA multiples (1) Discount rate (1) Sum of the parts Hard asset values (1) Type certificate values (1) Assets of consolidated VIEs: Loans receivable at fair value 32 Market prices of similar liabilities or internal cash flow models adjusted for financial guarantees provided to VIE obligations Impact of financial guarantee 32 % - 32 % ( 32 %) (2) Liabilities of consolidated VIEs: Variable interest entity notes 78 Market prices of VIE assets adjusted for financial guarantees provided or market prices of similar liabilities Impact of financial guarantee 74 % - 74 % ( 74 %) (2) (1) - Range for EBITDA multiples, discount rate, hard asset values and type certificate values reflects their potential variability. (2) - Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 6: Fair Value of Financial Instruments (continued) Fair Value as of Range December 31, (Weighted In millions 2022 Valuation Techniques Unobservable Input Average) Assets: Equity Investments $ 115 Discounted cash flow EBITDA multiples (1) Discount rate (1) Sum of the parts Hard asset values (1) Type certificate values (1) Assets of consolidated VIEs: Loans receivable at fair value 78 Market prices of similar liabilities or internal cash flow models adjusted for financial guarantees provided to VIE obligations Impact of financial guarantee 12 % - 88 % ( 52 %) (2) Liabilities of consolidated VIEs: Variable interest entity notes 172 Market prices of VIE assets adjusted for financial guarantees provided or market prices of similar liabilities Impact of financial guarantee 34 % - 82 % ( 68 %) (2) (1) - Range for EBITDA multiples, discount rate, hard asset values and type certificate values reflects their potential variability. (2) - Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. Sensitivity of Significant Unobservable Inputs The significant unobservable inputs used in the fair value measurement of the Company’s equity investments at fair value are EBITDA multiples, the discount rate, hard asset values and type certificate values. The fair value of equity investments is determined by taking a weighted average of valuation scenarios. If there had been lower or higher EBITDA multiples, hard asset values or type certificate values, the value of equity investments would have been lower or higher, respectively. If there had been a lower or higher discount rate, the value of equity investments would have been higher or lower, respectively. The significant unobservable input used in the fair value measurement of the Company’s residential loans receivable at fair value of consolidated VIEs is the impact of the financial guarantee. The fair value of residential loans receivable is calculated by subtracting the value of the financial guarantee from the market value of similar instruments to that of the VIE liabilities or the market value derived from internal cash flow models. The value of a financial guarantee is estimated by the Company as the present value of expected cash payments, net of recoveries, under the policy. If there had been a lower expected cash flow on the underlying loans receivable of the VIE, the value of the financial guarantee provided by the Company under the insurance policy would have been higher. This would have resulted in a lower fair value of the residential loans receivable in relation to the obligations of the VIE. The significant unobservable input used in the fair value measurement of the Company’s VIE notes of consolidated VIEs is the impact of the financial guarantee. The fair value of VIE notes is calculated by adding the value of the financial guarantee to the market value of VIE assets. When the VIE note is backed by RMBS, the fair value of the VIE liability is calculated by applying the market value of similar instruments to that of the VIE liabilities or internal cash flow models. The value of a financial guarantee is estimated by the Company as the present value of expected cash payments under the policy. If the value of the guarantee provided by the Company to the obligations issued by the VIE had increased, the credit support would have added value to the liabilities of the VIE. This would have resulted in an increased fair value of the liabilities of the VIE. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 6: Fair Value of Financial Instruments (continued) Fair Value Measurements The following tables present the fair value of the Company’s assets (including short-term investments) and liabilities measured and reported at fair value on a recurring basis as of September 30, 2023 and December 31, 2022: Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Balance as of Assets Inputs Inputs September 30, In millions (Level 1) (Level 2) (Level 3) 2023 Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 379 $ 52 $ - $ 431 State and municipal bonds - 118 - 118 Foreign governments - 22 - 22 Corporate obligations - 799 1 800 Mortgage-backed securities: Residential mortgage-backed agency - 183 - 183 Residential mortgage-backed non-agency - 34 - 34 Commercial mortgage-backed - 22 - 22 Asset-backed securities: Collateralized debt obligations - 161 - 161 Other asset-backed - 65 - 65 Total fixed-maturity investments 379 1,456 1 1,836 Money market securities 338 - - 338 Equity investments 37 19 115 171 Cash and cash equivalents 70 - - 70 Assets of consolidated VIEs: Mortgage-backed securities: Residential mortgage-backed non-agency - 11 - 11 Commercial mortgage-backed - 9 - 9 Asset-backed securities: Collateralized debt obligations - 1 - 1 Other asset-backed - 1 - 1 Cash 4 - - 4 Loans receivable at fair value: Residential loans receivable - - 32 32 Other assets - - 2 2 Total assets $ 828 $ 1,497 $ 150 $ 2,475 Liabilities: Medium-term notes $ - $ - $ 37 $ 37 Derivative liabilities: Insured credit derivatives - 1 - 1 Non-insured interest rate derivatives - 22 - 22 Liabilities of consolidated VIEs: Variable interest entity notes - - 78 78 Currency derivatives - - 11 11 Total liabilities $ - $ 23 $ 126 $ 149 MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 6: Fair Value of Financial Instruments (continued) Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Balance as of Assets Inputs Inputs December 31, In millions (Level 1) (Level 2) (Level 3) 2022 Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 463 $ 54 $ - $ 517 State and municipal bonds - 323 - 323 Foreign governments - 21 - 21 Corporate obligations - 797 - 797 Mortgage-backed securities: Residential mortgage-backed agency - 207 - 207 Residential mortgage-backed non-agency - 95 - 95 Commercial mortgage-backed - 24 - 24 Asset-backed securities: Collateralized debt obligations - 159 - 159 Other asset-backed - 127 - 127 Total fixed-maturity investments 463 1,807 - 2,270 Money market securities 234 - - 234 Equity investments 38 19 115 172 Cash and cash equivalents 50 - - 50 Assets of consolidated VIEs: Corporate obligations - 4 - 4 Mortgage-backed securities: Residential mortgage-backed non-agency - 22 - 22 Commercial mortgage-backed - 9 - 9 Asset-backed securities: Collateralized debt obligations - 5 - 5 Other asset-backed - 7 - 7 Cash 16 - - 16 Loans receivable at fair value: Residential loans receivable - - 78 78 Other assets - - 23 23 Total assets $ 801 $ 1,873 $ 216 $ 2,890 Liabilities: Medium-term notes - - 41 41 Derivative liabilities: Non-insured interest rate derivatives - 49 - 49 Liabilities of consolidated VIEs: Variable interest entity notes - - 172 172 Currency derivatives - - 6 6 Total liabilities $ - $ 49 $ 219 $ 268 Level 3 assets at fair value as of September 30, 2023 and December 31, 2022 represented approximately 6 % and 7 %, respectively, of total assets measured at fair value. Level 3 liabilities at fair value as of September 30, 2023 and December 31, 2022 represented approximately 85 % and 82 %, respectively, of total liabilities measured at fair value. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 6: Fair Value of Financial Instruments (continued) The following tables present the fair values and carrying values of the Company’s assets and liabilities that are disclosed at fair value but not reported at fair value on the Company’s consolidated balance sheets as of September 30, 2023 and December 31, 2022. The majority of the financial assets and liabilities that the Company requires fair value reporting or disclosures are valued based on the Company’s or a third- party’s estimate of discounted cash flow model estimates, or quoted market values for identical or similar products. Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Significant Fair Value Carry Value Active Markets for Other Observable Unobservable Balance as of Balance as of Identical Assets Inputs Inputs September 30, September 30, In millions (Level 1) (Level 2) (Level 3) 2023 2023 Assets: Other investments $ - $ - $ 3 $ 3 $ 3 Total assets $ - $ - $ 3 $ 3 $ 3 Liabilities: Long-term debt $ - $ 272 $ - $ 272 $ 2,546 Medium-term notes - - 286 286 457 Investment agreements - - 238 238 225 Liabilities of consolidated VIEs: Variable interest entity loans payable - - 3 3 3 Total liabilities $ - $ 272 $ 527 $ 799 $ 3,231 Financial Guarantees: Gross liability (recoverable) $ - $ - $ 764 $ 764 $ 513 Ceded recoverable (liability) - - 19 19 17 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Significant Fair Value Carry Value Active Markets for Other Observable Unobservable Balance as of Balance as of Identical Assets Inputs Inputs December 31, December 31, In millions (Level 1) (Level 2) (Level 3) 2022 2022 Liabilities: Long-term debt $ - $ 330 $ - $ 330 $ 2,428 Medium-term notes - - 310 310 458 Investment agreements - - 257 257 233 Liabilities of consolidated VIEs: Variable interest entity loans payable - - 2 2 2 Total liabilities $ - $ 330 $ 569 $ 899 $ 3,121 Financial Guarantees: Gross liability (recoverable) $ - $ - $ 864 $ 864 $ 568 Ceded recoverable (liability) - - 21 21 15 MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 6: Fair Value of Financial Instruments (continued) The following tables present information about changes in Level 3 assets (including short-term investments) and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2023 and 2022: Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2023 Change in Change in Unrealized Unrealized Gains Gains (Losses) for (Losses) for the Period the Period Included in Included in Total Earnings OCI Gains / Unrealized for Assets for Assets (Losses) Gains / still held still held Balance, Included (Losses) Transfers Transfers as of as of Beginning in Included into out of Ending September 30, September 30, In millions of Period Earnings in OCI (1) Purchases Issuances Settlements Sales Level 3 Level 3 Balance 2023 2023 (1) Assets: Corporate obligations $ 1 $ - $ - $ - $ - $ - $ - $ - $ - $ 1 $ - $ - Equity investments 115 - - - - - - - - 115 - - Assets of consolidated VIEs: Loans receivable - 70 ( 7 ) - - - ( 2 ) ( 29 ) - - 32 ( 8 ) - Other 2 - - - - - - - - 2 - - Total assets $ 188 $ ( 7 ) $ - $ - $ - $ ( 2 ) $ ( 29 ) $ - $ - $ 150 $ ( 8 ) $ - Change in Change in Unrealized Unrealized (Gains) (Gains) Losses for Losses for the Period the Period Included in Included in Total Unrealized Earnings for OCI for (Gains) / (Gains) / Liabilities Liabilities Losses Losses 37 still held still held Balance, Included Included Transfers Transfers as of as of Beginning in in into out of Ending September 30, September 30, In millions of Period Earnings in OCI (2) Purchases Issuances Settlements Sales Level 3 Level 3 Balance 2023 2023 (2) Liabilities: Medium-term notes $ 38 $ ( 3 ) $ 2 $ - $ - $ - $ - $ - $ - $ 37 $ ( 3 ) $ 2 Liabilities of consolidated VIEs: VIE notes 183 15 ( 14 ) - - ( 21 ) ( 85 ) - - 78 2 - Currency derivatives 12 ( 1 ) - - - - - - - 11 ( 1 ) - Total liabilities $ 233 $ 11 $ ( 12 ) $ - $ - $ ( 21 ) $ ( 85 ) $ - $ - $ 126 $ ( 2 ) $ 2 (1) - Reported within the "Unrealized gains (losses) on available-for-sale securities" on MBIA's Consolidated Statement of Comprehensive Income/Loss. (2) - Reported within the "Instrument-specific credit risk of liabilities measured at fair value" on MBIA's Consolidated Statement of Comprehensive Income/Loss. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 6: Fair Value of Financial Instruments (continued) Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2022 Change in Change in Unrealized Unrealized Gains Gains (Losses) for (Losses) for the Period the Period Included in Included in Total Earnings for OCI for Gains / Unrealized Assets Assets (Losses) Gains / still held still held Balance, Included (Losses) Transfers Transfers as of as of Beginning in Included into out of Ending September 30, September 30, In millions of Period Earnings in OCI (1) Purchases Issuances Settlements Sales Level 3 Level 3 Balance 2022 2022 (1) Assets: Residential mortgage- $ 55 $ - $ ( 2 ) $ 1 $ - $ - $ ( 17 ) $ - $ - $ 37 $ - $ ( 3 ) Equity investments - - - 101 - - - - - 101 - - Assets of consolidated VIEs: Loans receivable- 68 13 - - - ( 2 ) - - - 79 11 - Currency derivatives 9 ( 9 ) - - - - - - - - ( 9 ) - Other 16 - - - - - - - - 16 - - Total assets $ 148 $ 4 $ ( 2 ) $ 102 $ - $ ( 2 ) $ ( 17 ) $ - $ - $ 233 $ 2 $ ( 3 ) Change in Change in Unrealized Unrealized (Gains) (Gains) Losses for Losses for the Period the Period Included in Included in Total Earnings for OCI for (Gains) / Unrealized Liabilities Liabilities Losses (Gains) / still held still held Balance, Included Losses Transfers Transfers as of as of Beginning in Included into out of Ending September 30, September 30, In millions of Period Earnings in OCI (2) Purchases Issuances Settlements Sales Level 3 Level 3 Balance 2022 2022 (2) Liabilities: Medium-term notes $ 42 $ ( 8 ) $ 4 $ - $ - $ - $ - $ - $ - $ 38 $ ( 8 ) $ 4 Liabilities of consolidated VIEs: VIE notes 217 33 ( 25 ) - - ( 52 ) - - - 173 ( 2 ) 1 Currency - 5 - - - - - - - 5 5 - Total liabilities $ 259 $ 30 $ ( 21 ) $ - $ - $ ( 52 ) $ - $ - $ - $ 216 $ ( 5 ) $ 5 (1) - Reported within the "Unrealized gains (losses) on available-for-sale securities" on MBIA's Consolidated Statement of Comprehensive Income/Loss. (2) - Reported within the "Instrument-specific credit risk of liabilities measured at fair value" on MBIA's Consolidated Statement of Comprehensive Income/Loss. For the three months ended September 30, 2023, sales include the impact of the deconsolidation of a VIE. Refer to “Note 4: Variable Interest Entities” for additional information about the deconsolidation of VIEs. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 6: Fair Value of Financial Instruments (continued) For the three months ended September 30, 2023 and 2022, there were no transfers into or out of Level 3. The following tables present information about changes in Level 3 assets (including short-term investments) and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2023 and 2022: Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2023 Change in Change in Unrealized Unrealized Gains Gains (Losses) for (Losses) for the Period the Period Included in Included in Total Earnings for OCI for Gains / Unrealized Assets Assets (Losses) Gains / still held still held Balance Included (Losses) Transfers Transfers as of as of Beginning in Included into out of Ending September 30, September 30, In millions of Year Earnings in OCI (1) Purchases Issuances Settlements Sales Level 3 Level 3 Balance 2023 2023 (1) Assets: Corporate obligations $ - $ - $ - $ - $ - $ - $ - $ 1 $ - $ 1 $ - $ - Equity investments 115 - - - - - - - - 115 - - Assets of consolidated VIEs: Loans receivable - 78 ( 10 ) - - - ( 7 ) ( 29 ) - - 32 ( 3 ) - Other 23 3 - - - - ( 24 ) - - 2 ( 1 ) - Total assets $ 216 $ ( 7 ) $ - $ - $ - $ ( 7 ) $ ( 53 ) $ 1 $ - $ 150 $ ( 4 ) $ - Change in Change in Unrealized Unrealized (Gains) (Gains) Losses for Losses for the Period the Period Included in Included in Total Unrealized Earnings for OCI for (Gains) / (Gains) / Liabilities Liabilities Losses Losses still held still held Balance, Included Included in Transfers Transfers as of as of Beginning in Credit Risk into out of Ending September 30, September 30, In millions of Year Earnings in OCI (2) Purchases Issuances Settlements Sales Level 3 Level 3 Balance 2023 2023 (2) Liabilities: Medium-term notes $ 41 $ ( 2 ) $ ( 2 ) $ - $ - $ - $ - $ - $ - $ 37 $ ( 2 ) $ ( 2 ) Liabilities of consolidated VIEs: VIE notes 172 48 ( 39 ) - 62 ( 45 ) ( 120 ) - - 78 3 1 Currency derivatives 6 5 - - - - - - - 11 5 - Total liabilities $ 219 $ 51 $ ( 41 ) $ - $ 62 $ ( 45 ) $ ( 120 ) $ - $ - $ 126 $ 6 $ ( 1 ) (1) - Reported within the "Unrealized gains (losses) on available-for-sale securities" on MBIA's Consolidated Statement of Comprehensive Income/Loss. (2) - Reported within the "Instrument-specific credit risk of liabilities measured at fair value" on MBIA's Consolidated Statement of Comprehensive Income/Loss. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 6: Fair Value of Financial Instruments (continued) Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2022 Change in Change in Unrealized Unrealized Gains Gains (Losses) for (Losses) for the Period the Period Included in Included in Total Earnings for Earnings for Gains / Unrealized Assets Assets (Losses) Gains / still held still held Balance, Included (Losses) Transfers Transfers as of as of Beginning in Included into out of Ending September 30, September 30, In millions of Year Earnings in OCI (1) Purchases Issuances Settlements Sales Level 3 Level 3 Balance 2022 2022 (1) Assets: Residential mortgage- $ - $ - $ ( 6 ) $ 60 $ - $ - $ ( 17 ) $ - $ - $ 37 $ - $ - Equity securities - - - 101 - - - - - 101 - - Assets of consolidated VIEs: Collateralized debt obligations 4 - - - - ( 4 ) - - - - - - Loans receivable - 77 8 - - - ( 6 ) - - - 79 2 - Currency derivatives 9 ( 9 ) - - - - - - - - ( 9 ) - Other 14 2 - - - - - - - 16 2 - Total assets $ 104 $ 1 $ ( 6 ) $ 161 $ - $ ( 10 ) $ ( 17 ) $ - $ - $ 233 $ ( 5 ) $ - Change in Change in Unrealized Unrealized (Gains) (Gains) Losses for Losses for the Period the Period Included in Included in Total Earnings for OCI for (Gains) / Unrealized Liabilities Liabilities Losses (Gains) / still held still held Balance, Included Losses Transfers Transfers as of as of Beginning in Included into out of Ending September 30, September 30, In millions of Year Earnings in OCI (2) Purchases Issuances Settlements Sales Level 3 Level 3 Balance 2022 2022 (2) Liabilities: Medium-term notes $ 98 $ ( 29 ) $ 17 $ - $ - $ ( 48 ) $ - $ - $ - $ 38 $ ( 28 ) $ 18 Liabilities of consolidated VIEs: VIE notes 291 8 ( 6 ) - - ( 120 ) - - - 173 ( 9 ) 4 Currency derivatives - 5 - - - - - - - 5 5 - Total liabilities $ 389 $ ( 16 ) $ 11 $ - $ - $ ( 168 ) $ - $ - $ - $ 216 $ ( 32 ) $ 22 (1) - Reported within the "Unrealized gains (losses) on available-for-sale securities" on MBIA's Consolidated Statement of Comprehensive Income/Loss. (2) - Reported within the "Instrument-specific credit risk of liabilities measured at fair value" on MBIA's Consolidated Statement of Comprehensive Income/Loss. For the nine months ended September 30, 2023, sales include the impact of the deconsolidation of VIEs. Refer to “Note 4: Variable Interest Entities” for additional information about the deconsolidation of VIEs. For the nine months ended September 30, 2023, transfers into Level 3 and out of Level 2 were related to corporate obligations, where inputs, which are significant to their valuation, became unobservable during the year. These inputs included spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. There were no transfers out of Level 3. For the nine months ended September 30, 2022, there were no transfers into or out of Level 3. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 6: Fair Value of Financial Instruments (continued) Gains and losses (realized and unrealized) included in earnings related to Level 3 assets and liabilities for the three months ended September 30, 2023 and 2022 are reported on the Company’s consolidated statements of operations as follows: Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Change in Change in Unrealized Unrealized Gains (Losses) Gains (Losses) for the for the Period Included Period Included in Earnings in Earnings for Assets for Assets and and Total Gains Liabilities still Total Gains Liabilities still (Losses) held as of (Losses) held as of Included September 30, Included September 30, In millions in Earnings 2023 in Earnings 2022 Revenues: Net gains (losses) on financial instruments $ 3 $ 3 $ 8 $ 8 Revenues of consolidated VIEs: Net gains (losses) on financial instruments ( 14 ) ( 9 ) ( 34 ) ( 1 ) Other net realized gains (losses) ( 7 ) - - - Total $ ( 18 ) $ ( 6 ) $ ( 26 ) $ 7 Gains and losses (realized and unrealized) included in earnings relating to Level 3 assets and liabilities for the nine months ended September 30, 2023 and 2022 are reported on the Company’s consolidated statements of operations as follows: Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Change in Change in Unrealized Unrealized Gains (Losses) Gains (Losses) for the for the Period Included Period Included in Earnings in Earnings for Assets for Assets and and Total Gains Liabilities still Total Gains Liabilities still (Losses) held as of (Losses) held as of Included September 30, Included September 30, In millions in Earnings 2023 in Earnings 2022 Revenues: Net gains (losses) on financial instruments $ 2 $ 2 $ 29 $ 28 Revenues of consolidated VIEs: Net gains (losses) on financial instruments ( 32 ) ( 12 ) ( 12 ) ( 1 ) Other net realized gains (losses) ( 28 ) - - - Total $ ( 58 ) $ ( 10 ) $ 17 $ 27 Fair Value Option The Company elected to record at fair value certain financial instruments, including certain equity investments and financial instruments that are consolidated in connection with the adoption of the accounting guidance for consolidation of VIEs. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 6: Fair Value of Financial Instruments (continued) The following table presents the gains and (losses) included in the Company's consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022 for financial instruments for which the fair value option was elected: Three Months Ended September 30, Nine Months Ended September 30, In millions 2023 2022 2023 2022 Investments carried at fair value (1) $ ( 2 ) $ ( 7 ) $ 1 $ ( 33 ) Fixed-maturity securities held at fair value-VIE (3) - ( 1 ) ( 4 ) ( 4 ) Loans receivable at fair value: Residential mortgage loans (2) ( 7 ) 13 ( 10 ) 8 Other assets-VIE (3) - - 3 2 Medium-term notes (1) 3 8 2 29 Variable interest entity notes (3) ( 15 ) ( 35 ) ( 48 ) ( 12 ) (1) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange" on MBIA's consolidated statements of operations. (2) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" on MBIA's consolidated statements of operations. (3) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" and "Other net realized gains (losses)-VIE" on MBIA's consolidated statements of operations. The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of September 30, 2023 and December 31, 2022 for loans and notes for which the fair value option was elected: As of September 30, 2023 As of December 31, 2022 Contractual Contractual Outstanding Fair Outstanding Fair In millions Principal Value Difference Principal Value Difference Loans receivable at fair value: Residential mortgage loans - current $ 18 $ 18 $ - $ 39 $ 39 $ - Residential mortgage loans (90 days or more past due) 57 14 43 149 39 110 Total loans receivable and other instruments at fair value $ 75 $ 32 $ 43 $ 188 $ 78 $ 110 Variable interest entity notes $ 329 $ 78 $ 251 $ 780 $ 172 $ 608 Medium-term notes $ 53 $ 37 $ 16 $ 53 $ 41 $ 12 The difference |
Investments
Investments | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Investments | Note 7: Inve stments Investments, excluding equity instruments, those elected under the fair value option and those classified as trading, primarily consist of debt instruments classified as available-for-sale (“AFS”). The following tables present the amortized cost, allowance for credit losses, corresponding gross unrealized gains and losses and fair value for AFS investments in the Company’s consolidated investment portfolio as of September 30, 2023 and December 31, 2022: September 30, 2023 Allowance Gross Gross Amortized for Credit Unrealized Unrealized Fair In millions Cost Losses Gains Losses Value AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 462 $ - $ 1 $ ( 41 ) $ 422 State and municipal bonds 131 - 1 ( 15 ) 117 Foreign governments 25 - 1 ( 4 ) 22 Corporate obligations 884 - - ( 158 ) 726 Mortgage-backed securities: Residential mortgage-backed agency 197 - - ( 26 ) 171 Residential mortgage-backed non-agency 33 - - ( 7 ) 26 Commercial mortgage-backed 22 - - ( 1 ) 21 Asset-backed securities: Collateralized debt obligations 114 - 1 ( 2 ) 113 Other asset-backed 46 - - ( 3 ) 43 Total AFS investments $ 1,914 $ - $ 4 $ ( 257 ) $ 1,661 MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 7: Investments (continued) December 31, 2022 Allowance Gross Gross Amortized for Credit Unrealized Unrealized Fair In millions Cost Losses Gains Losses Value AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 541 $ - $ 5 $ ( 38 ) $ 508 State and municipal bonds 173 - 2 ( 11 ) 164 Foreign governments 23 - - ( 3 ) 20 Corporate obligations 862 - 1 ( 148 ) 715 Mortgage-backed securities: Residential mortgage-backed agency 217 - - ( 22 ) 195 Residential mortgage-backed non-agency 96 - 3 ( 11 ) 88 Commercial mortgage-backed 24 - - ( 1 ) 23 Asset-backed securities: Collateralized debt obligations 117 - - ( 5 ) 112 Other asset-backed 110 - - ( 4 ) 106 Total AFS investments $ 2,163 $ - $ 11 $ ( 243 ) $ 1,931 The following table presents the distribution by contractual maturity of AFS fixed-maturity securities at amortized cost, net of allowance for credit losses, and fair value as of September 30, 2023. Contractual maturity may differ from expected maturity as borrowers may have the right to call or prepay obligations. AFS Securities Net Amortized Fair In millions Cost Value Due in one year or less $ 172 $ 172 Due after one year through five years 379 364 Due after five years through ten years 280 233 Due after ten years 671 518 Mortgage-backed and asset-backed 412 374 Total fixed-maturity investments $ 1,914 $ 1,661 MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 7: Investments (continued) Deposited and Pledged Securities The fair value of securities on deposit with various regulatory authorities as of September 30, 2023 and December 31, 2022 was $ 10 million. These deposits are required to comply with state insurance laws. Investment agreement obligations require the Company to pledge securities as collateral. Securities pledged in connection with investment agreements may not be repledged by the investment agreement counterparty. As of September 30, 2023 and December 31, 2022 , the fair value of securities pledged as collateral for these investment agreements were $ 209 million and $ 251 million, respectively. The Company’s collateral as of September 30, 2023 consisted principally of U.S. Treasury and government agency and corporate obligations, and was primarily held with major U.S. banks. Refer to “Note 8: Derivative Instruments” for information about securities posted to derivative counterparties. Impaired Investments The following tables present the non-credit related gross unrealized losses related to AFS investments as of September 30, 2023 and December 31, 2022: September 30, 2023 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized In millions Value Losses Value Losses Value Losses AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 64 $ ( 3 ) $ 196 $ ( 38 ) $ 260 $ ( 41 ) State and municipal bonds 48 ( 3 ) 54 ( 12 ) 102 ( 15 ) Foreign governments 5 - 8 ( 4 ) 13 ( 4 ) Corporate obligations 192 ( 5 ) 500 ( 153 ) 692 ( 158 ) Mortgage-backed securities: Residential mortgage-backed agency 13 - 132 ( 26 ) 145 ( 26 ) Residential mortgage-backed non-agency 3 - 22 ( 7 ) 25 ( 7 ) Commercial mortgage-backed 11 ( 1 ) 7 - 18 ( 1 ) Asset-backed securities: Collateralized debt obligations 9 - 101 ( 2 ) 110 ( 2 ) Other asset-backed 3 - 34 ( 3 ) 37 ( 3 ) Total AFS investments $ 348 $ ( 12 ) $ 1,054 $ ( 245 ) $ 1,402 $ ( 257 ) MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 7: Investments (continued) December 31, 2022 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized In millions Value Losses Value Losses Value Losses AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 266 $ ( 34 ) $ 29 $ ( 4 ) $ 295 $ ( 38 ) State and municipal bonds 92 ( 10 ) 1 ( 1 ) 93 ( 11 ) Foreign governments 9 ( 3 ) - - 9 ( 3 ) Corporate obligations 508 ( 106 ) 141 ( 42 ) 649 ( 148 ) Mortgage-backed securities: Residential mortgage-backed agency 112 ( 9 ) 65 ( 13 ) 177 ( 22 ) Residential mortgage-backed non-agency 65 ( 10 ) 2 ( 1 ) 67 ( 11 ) Commercial mortgage-backed 18 ( 1 ) 1 - 19 ( 1 ) Asset-backed securities: Collateralized debt obligations 51 ( 1 ) 60 ( 4 ) 111 ( 5 ) Other asset-backed 44 ( 3 ) 24 ( 1 ) 68 ( 4 ) Total AFS investments $ 1,165 $ ( 177 ) $ 323 $ ( 66 ) $ 1,488 $ ( 243 ) Gross unrealized losses on AFS investments increased as of September 30, 2023 compared with December 31, 2022 primarily due to higher interest rates, partially offset by tighter credit spreads. With the weighting applied on the fair value of each security relative to the total fair value, the weighted average contractual maturity of securities in an unrealized loss position as of September 30, 2023 and December 31, 2022 was 13 and 14 years , respectively. As of September 30, 2023 and December 31, 2022 , there were 589 and 210 securities, respectively, that were in an unrealized loss position for a continuous twelve- month period or longer, of which, fair values of 509 and 190 securities, respectively, were below book value by more than 5 %. The following table presents the distribution of securities in an unrealized loss position for a continuous twelve-month period or longer where fair value was below book value by more than 5% as of September 30, 2023: AFS Securities Percentage of Fair Value Number of Book Value Fair Value Below Book Value Securities (in millions) (in millions) > 5 % to 15 % 194 $ 336 $ 304 > 15 % to 25 % 153 386 309 > 25 % to 50 % 159 373 244 > 50 % 3 5 2 Total 509 $ 1,100 $ 859 MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 7: Investments (continued) As of September 30, 2023, the Company concluded that it does not have the intent to sell securities in an unrealized loss position and it is more likely than not, that it would not have to sell these securities before recovery of their cost basis. In making this conclusion, the Company examined the cash flow projections for its investment portfolios, the potential sources and uses of cash in its businesses, and the cash resources available to its business other than sales of securities. It also considered the existence of any risk management or other plans as of September 30, 2023 that would require the sale of impaired securities. For the three and nine months ended September 30, 2023 , impairment loss due to intent to sell securities in an unrealized position was $ 8 million and reported in "Other net realized gains (losses)" on the Company's consolidated results of operations. For the three and nine months ended September 30, 2022 , impairment loss due to intent to sell securities in an unrealized loss position was $ 2 million and $ 21 million, respectively, and reported in “Other net realized gains (losses)” on the Company’s consolidated results of operations. For the three months ended September 30, 2022, the impairment loss was previously recognized as an allowance for credit loss, but was impaired to fair value during the third quarter of 2022 due to the intent to sell these securities. Credit Losses on Investments The Company’s fixed-maturity securities for which fair value is less than amortized cost are reviewed quarterly in order to determine whether a credit loss exists. If the Company determines that the declines in the fair value are related to credit loss, the Company will establish an allowance for credit losses and recognize the credit component through earnings. Refer to “Note 8: Investments” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for a discussion of the Company’s policy for its determination of credit losses. The Company did not purchase any credit-deteriorated assets for the nine months ended September 30, 2023. Allowance for Credit Losses Rollforward for AFS The following tables present the rollforward of allowance for credit losses on AFS investments for the three and nine months ended September 30, 2022. The additions to the allowance for credit losses for the nine months ended September 30, 2022 were related to concerns on an issuer’s credit deterioration as a result of the Ukraine and Russia conflict. In the third quarter of 2022, these securities were impaired to fair value due to the Company's intent to sell and the credit losses were reversed. The Company did not establish an allowance for credit losses for AFS securities for the three or nine months ended September 30, 2023. Three Months Ended September 30, 2022 Balance Additions Additions Reductions Reductions- Change in Balance as of not arising from Intent Allowance as of June 30, previously from PCD Securities to sell Previously Write September 30, In millions 2022 recorded Assets Sold or MLTN Recorded Offs Recoveries 2022 AFS Investments Fixed-maturity investments: Corporate obligations $ 3 $ - $ - $ - $ 3 $ - $ - $ - $ - Total Allowance on AFS investments $ 3 $ - $ - $ - $ 3 $ - $ - $ - $ - Nine Months Ended September 30, 2022 Balance Additions Additions Reductions Reductions- Change in Balance as of not arising from Intent Allowance as of December 31, previously from PCD Securities to sell Previously Write September 30, In millions 2021 recorded Assets Sold or MLTN Recorded Offs Recoveries 2022 AFS Investments Fixed-maturity investments: Corporate obligations $ - $ 3 $ - $ - $ 3 $ - $ - $ - $ - Total Allowance on AFS investments $ - $ 3 $ - $ - $ 3 $ - $ - $ - $ - The Company does not recognize credit losses on securities insured by MBIA Corp. and National since those securities, whether or not owned by the Company, are evaluated for impairments in accordance with its loss reserving policy. The following table provides information about securities held by the Company as of September 30, 2023 that were in an unrealized loss position and insured by a financial guarantor, along with the amount of insurance loss reserves corresponding to the par amount owned by the Company. The Company did not hold any securities in an unrealized loss position that were insured by a third-party financial guarantor as of September 30, 2023. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 7: Investments (continued) Unrealized Insurance Loss In millions Fair Value Loss Reserve (1) Mortgage-backed $ 16 $ ( 5 ) $ 20 Corporate obligations 77 ( 42 ) - Other 7 - - Total $ 100 $ ( 47 ) $ 20 (1) - Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured and are discounted using a discount rate equal to the risk-free rate applicable to the currency and weighted average remaining life of the insurance contract and may differ from the fair value. Sales of Available-for-Sale Investments Gross realized gains and losses from sales of AFS investments are recorded within “Net realized investment gains (losses)”on the Company’s consolidated statements of operations. The proceeds and the gross realized gains and losses from sales of fixed-maturity securities held as AFS for the three and nine months ended September 30, 2023 and 2022 are as follows: Three Months Ended September 30, Nine Months Ended September 30, In millions 2023 2022 2023 2022 Proceeds from sales $ 108 $ 339 $ 380 $ 859 Gross realized gains $ - $ 2 $ 1 $ 3 Gross realized losses $ ( 13 ) $ ( 17 ) $ ( 24 ) $ ( 42 ) Equity and Trading Investments Equity and trading investments are included within “Investments carried at fair value” on the Company’s consolidated balance sheets. Unrealized gains and losses recognized on equity and trading investments held as of the end of each period for the three and nine months ended September 30, 2023 and 2022 are as follows: Three Months Ended September 30, Nine Months Ended September 30, In millions 2023 2022 2023 2022 Net gains (losses) recognized during the period on equity and trading securities $ ( 1 ) $ ( 3 ) $ 2 $ ( 31 ) Less: Net gains (losses) recognized during the period on equity and trading securities sold during the period ( 1 ) ( 6 ) ( 1 ) ( 6 ) Unrealized gains (losses) recognized during the period on equity and trading securities still held at the reporting date $ - $ 3 $ 3 $ ( 25 ) |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Derivative Instruments | Note 8: Deri vative Instruments The Company has primarily entered into derivative instruments consisting of interest rate swaps to manage the risks associated with fluctuations in interest rates affecting the value of certain assets in the corporate segment. Additionally, the Company has insured interest rate swaps and inflation-linked swaps related to its insured debt issuances in the U.S. public finance insurance and the international and structured finance insurance segments. These derivatives do not qualify for the financial guarantee scope exception and are accounted for as derivative instruments. The Company’s international and structured finance insurance segment consolidated a VIE which is party to a cross currency swap, entered into to manage the variability in cash flows resulting from fluctuations in foreign currency rates. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 8: Derivative Instruments (continued) Credit Derivatives Sold The following tables present information about credit derivatives sold by the Company’s insurance operations that were outstanding as of September 30, 2023 and December 31, 2022. Credit ratings represent the lower of underlying ratings assigned to the collateral by Moody’s Investor Services (“Moody’s”), Standard& Poor’s Financial Services, LLC (“S&P”) or MBIA. $ in millions As of September 30, 2023 Notional Value Credit Derivatives Sold Weighted Average Remaining Expected Maturity AAA AA A BBB Below Investment Grade Total Notional Fair Value Asset (Liability) Insured swaps 13.5 Years $ - $ 43 $ 970 $ 210 $ 60 $ 1,283 $ ( 1 ) Total fair value $ - $ - $ - $ - $ ( 1 ) $ ( 1 ) $ in millions As of December 31, 2022 Notional Value Credit Derivatives Sold Weighted Average Remaining Expected Maturity AAA AA A BBB Below Investment Grade Total Notional Fair Value Asset (Liability) Insured swaps 13.7 Years $ - $ 50 $ 1,013 $ 227 $ 60 $ 1,350 $ - Total fair value $ - $ - $ - $ - $ - $ - MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 8: Derivative Instruments (continued) Internal credit ratings assigned by MBIA on the underlying credit exposures are assigned by the Company’s surveillance group. In assigning an internal rating, current status reports from issuers and trustees, as well as publicly available transaction-specific information, are reviewed. The maximum potential amount of future payments (undiscounted) on insured swaps that are primarily insured interest rate swaps is estimated as the net interest settlements plus principal payments where applicable, on amortizing swaps. MBIA may hold recourse provisions through subrogation rights of the swap counterparty, whereby if MBIA makes a claim payment, it may be entitled to receive net swap settlements from the issuer under the swap agreement. Counterparty Credit Risk The Company manages counterparty credit risk on an individual counterparty basis through master netting agreements covering derivative instruments in the corporate segment. These agreements allow the Company to contractually net amounts due from a counterparty with those amounts due to such counterparty when certain triggering events occur. The Company only executes swaps under master netting agreements, which typically contain mutual credit downgrade provisions that generally provide the ability to require assignment or termination in the event either MBIA or the counterparty is downgraded below a specified credit rating. Under these agreements, the Company may receive or provide cash, U.S. Treasury or other highly rated securities to secure counterparties’ exposure to the Company or its exposure to counterparties, respectively. Such collateral is available to the holder to pay for replacing the counterparty in the event that the counterparty defaults. As of September 30, 2023 and December 31, 2022 , the Company did no t hold or post cash collateral to derivative counterparties. As of September 30, 2023 and December 31, 2022 , the Company had securities with a fair value of $ 40 million and $ 73 million, respectively, posted to derivative counterparties, and these amounts are included within “Fixed-maturity securities held as available-for-sale, at fair value” on the Company’s consolidated balance sheets. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 8: Derivative Instruments (continued) As of September 30, 2023 and December 31, 2022 , the fair value on one Credit Support Annex (“CSA”) was a liability of $ 1 million. This CSA governs collateral posting requirements between MBIA and its derivative counterparties. The Company did not receive collateral due to the Company’s credit rating, which was below the CSA minimum credit ratings level for holding counterparty collateral. As of September 30, 2023 and December 31, 2022, the counterparty was rated Aa3 by Moody’s and A+ by S&P. Financial Statement Presentation The fair value of amounts recognized for eligible derivative contracts executed with the same counterparty under a master netting agreement, including any cash collateral that may have been received or posted by the Company, is presented on a net basis in accordance with accounting guidance for the offsetting of fair value amounts related to derivative instruments. Insured swaps are not subject to master netting agreements. VIE derivative assets and liabilities are not presented net of any master netting agreements. Counterparty netting of derivative assets and liabilities offsets balances in “Interest rate swaps”, when applicable. The following tables present the total fair value of the Company’s derivative assets and liabilities by instrument and balance sheet location, before counterparty netting, as of September 30, 2023 and December 31, 2022: September 30, 2023 In millions Derivative Assets (1) Derivative Liabilities (1) Notional Amount Fair Fair Derivative Instruments Outstanding Balance Sheet Location Value Balance Sheet Location Value Not designated as hedging instruments: Insured swaps $ 1,283 Other assets $ - Derivative liabilities $ ( 1 ) Interest rate swaps 323 Other assets - Derivative liabilities ( 22 ) Interest rate swaps-embedded 193 Medium-term notes 1 Medium-term notes - Currency swaps-VIE 13 Other assets-VIE - Derivative liabilities-VIE ( 11 ) Total non-designated derivatives $ 1,812 $ 1 $ ( 34 ) (1) - In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Company’s embedded derivative instruments is determined by the location of the related host contract. December 31, 2022 In millions Derivative Assets (1) Derivative Liabilities (1) Notional Amount Fair Fair Derivative Instruments Outstanding Balance Sheet Location Value Balance Sheet Location Value Not designated as hedging instruments: Insured swaps $ 1,350 Other assets $ - Derivative liabilities $ - Interest rate swaps 380 Other assets - Derivative liabilities ( 49 ) Interest rate swaps-embedded 194 Medium-term notes 1 Medium-term notes ( 2 ) Currency swaps-VIE 36 Other assets-VIE - Derivative liabilities-VIE ( 6 ) Total non-designated derivatives $ 1,960 $ 1 $ ( 57 ) (1) - In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Company’s embedded derivative instruments is determined by the location of the related host contract. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 8: Derivative Instruments (continued) The following table presents the effect of derivative instruments on the consolidated statements of operations for the three months ended September 30, 2023 and 2022: In millions Derivatives Not Designated Three Months Ended September 30, as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2023 2022 Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange $ 20 $ 23 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE 2 ( 14 ) Total $ 22 $ 9 The following table presents the effect of derivative instruments on the consolidated statements of operations for the nine months ended September 30, 2023 and 2022: In millions Derivatives Not Designated Nine Months Ended September 30, as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2023 2022 Insured swaps Net gains (losses) on financial instruments at fair value and foreign exchange $ - $ 1 Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange 21 79 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE ( 4 ) ( 14 ) Total $ 17 $ 66 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9: Inco me Taxes The Company’s income taxes and the related effective tax rates for the three and nine months ended September 30, 2023 and 2022 are as follows: Three Months Ended September 30, Nine Months Ended September 30, In millions 2023 2022 2023 2022 Income (loss) from continuing operations before income taxes $ ( 185 ) $ ( 35 ) $ ( 346 ) $ ( 144 ) Provision (benefit) for income taxes $ - $ - $ - $ - Effective tax rate 0.0 % 0.0 % 0.0 % 0.0 % For the nine months ended September 30, 2023 and 2022, the Company’s effective tax rate applied to its loss from continuing operations before income taxes was lower than the U.S. statutory tax rate due to the full valuation allowance on the changes in its net deferred tax asset. Deferred Tax Asset, Net of Valuation Allowance The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of its existing deferred tax assets. A significant piece of objective negative evidence evaluated was the Company having a three-year cumulative loss. Such objective evidence limits the ability to consider other subjective evidence, such as the Company’s projections of pre-tax income. On the basis of this evaluation, the Company has recorded a full valuation allowance against its net deferred tax asset of $ 1.2 billion as of September 30, 2023 and December 31, 2022. The Company will continue to analyze the valuation allowance on a quarterly basis. Net operating losses (“NOLs”) of property and casualty insurance companies are permitted to be carried back two years and carried forward 20 years. NOLs of property and casualty insurance companies are not subject to the 80 percent taxable income limitation and indefinite lived carryforward period required by the Tax Cuts and Jobs Act applicable to general corporate NOLs. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 9: Income Taxes (continued) Accounting for Uncertainty in Income Taxes The Company’s policy is to record and disclose any change in unrecognized tax benefit (“UTB”) and related interest and/or penalties to income tax in the consolidated statements of operations. The Company includes interest as a component of income tax expense. As of September 30, 2023 and December 31, 2022 , the Company had no UTB. Federal income tax returns through 2011 have been examined or surveyed. As of September 30, 2023 , the Company’s NOL is approximately $ 4.1 billion. NOLs generated prior to tax reform and property and casualty NOLs generated after tax reform will expire between tax years 2026 through 2043. As of September 30, 2023 , the Company has a foreign tax credit carryforward of $ 58 million, which will expire between tax years 2023 through 2033. Section 382 of the Internal Revenue Code Included in the Company’s Amended By-Laws are restrictions on certain acquisitions of Company stock that otherwise may have increased the likelihood of an ownership change within the meaning of Section 382 of the Internal Revenue Code. With certain exceptions, the By-Laws generally prohibit a person from becoming a “Section 382 five-percent shareholder” by acquiring, directly or by attribution, 5% or more of the outstanding shares of the Company’s common stock. Inflation Reduction Act On August 16, 2022, the Inflation Reduction Act (“IRA”) was signed into law and includes several tax changes, notably a new 15 % minimum tax on the book income of large corporations and a 1 % excise tax on most stock buybacks. The IRA will not have a material impact on the Company’s financial results. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Business Segments | Note 10: Busi ness Segments As defined by segment reporting, an operating segment is a component of a company (i) that engages in business activities from which it earns revenue and incurs expenses, (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker to assess the performance of the segment and to make decisions about the allocation of resources to the segment and, (iii) for which discrete financial information is available. The Company manages its businesses across three operating segments: 1) U.S. public finance insurance; 2) corporate; and 3) international and structured finance insurance. The Company’s U.S. public finance insurance business is operated through National and its international and structured finance insurance business is operated through MBIA Corp. The following sections provide a description of each of the Company’s reportable operating segments. U.S. Public Finance Insurance The Company’s U.S. public finance insurance portfolio is managed through National. The financial guarantees issued by National provide unconditional and irrevocable guarantees of the payment of the principal of, and interest or other amounts owing on, U.S. public finance insured obligations when due. The obligations are not subject to acceleration, except that National may have the right, at its discretion, to accelerate insured obligations upon default or otherwise. National’s guarantees insure municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utilities, airports, health care institutions, higher educational facilities, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. Municipal bonds and privately issued bonds used for the financing of public purpose projects are generally supported by taxes, assessments, fees or tariffs related to the use of these projects, lease payments or other similar types of revenue streams. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Notes 10: Business Segments (continued) Corporate The Company’s corporate segment consists of general corporate activities, including providing support services to MBIA Inc.’s subsidiaries as well as asset and capital management. Support services are provided by the Company’s service company, MBIA Services, and include, among others, management, legal, accounting, treasury, information technology, and insurance portfolio surveillance, on a fee-for-service basis. Capital management includes activities related to servicing obligations issued by MBIA Inc. and its subsidiary, MBIA Global Funding, LLC (“GFL”). MBIA Inc. issued debt to finance the operations of the MBIA group. GFL raised funds through the issuance of MTNs with varying maturities, which were in turn guaranteed by MBIA Corp. GFL lent the proceeds of these MTN issuances to MBIA Inc. MBIA Inc. also provided customized investment agreements, guaranteed by MBIA Corp., for bond proceeds and other public funds for such purposes as construction, loan origination, escrow and debt service or other reserve fund requirements. The Company has ceased issuing new MTNs and investment agreements and the outstanding liability balances and corresponding asset balances have declined over time as liabilities matured, terminated or were called or repurchased. All of the debt within the corporate segment is managed collectively and is serviced by available liquidity. International and Structured Finance Insurance The Company’s international and structured finance insurance segment is principally conducted through MBIA Corp. The financial guarantees issued by MBIA Corp. generally provide unconditional and irrevocable guarantees of the payment of principal of, and interest or other amounts owing on, non-U.S. public finance and global structured finance insured obligations when due, or in the event MBIA Corp. has the right, at its discretion, to accelerate insured obligations upon default or otherwise. MBIA Corp. insures non-U.S. public finance and global structured finance obligations, including asset-backed obligations. MBIA Corp. has insured sovereign-related and sub- sovereign bonds, utilities, privately issued bonds used for the financing of projects that include toll roads, bridges, public transportation facilities, and other types of infrastructure projects serving a substantial public purpose. Global structured finance and asset-backed obligations typically are securities repayable from expected cash flows generated by a specified pool of assets, such as residential and commercial mortgages, structured settlements, consumer loans, and corporate loans and bonds. MBIA Corp. insures the investment contracts written by MBIA Inc., and if MBIA Inc. were to have insufficient assets to pay amounts due upon maturity or termination, MBIA Corp. would make such payments. MBIA Insurance Corporation also insures debt obligations of GFL. MBIA Corp. has also written policies guaranteeing obligations under certain derivative contracts, including termination payments that may become due upon certain insolvency or payment defaults of the financial guarantor or the issuer. MBIA Corp. has not written any meaningful amount of business since 2008. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 10: Business Segments (continued) Segments Results The following tables provide the Company’s segment results for the three months ended September 30, 2023 and 2022: Three Months Ended September 30, 2023 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 15 $ ( 1 ) $ 4 $ ( 1 ) $ 17 Net gains (losses) on financial instruments at fair value and foreign exchange ( 1 ) 23 ( 1 ) - 21 Revenues of consolidated VIEs - - ( 30 ) - ( 30 ) Inter-segment revenues (2) 6 13 1 ( 20 ) - Total revenues 20 35 ( 26 ) ( 21 ) 8 Losses and loss adjustment 143 - ( 20 ) - 123 Amortization of deferred acquisition costs and operating - 11 3 2 16 Interest - 13 40 - 53 Expenses of consolidated VIEs - - 1 - 1 Inter-segment expenses (2) 11 7 5 ( 23 ) - Total expenses 154 31 29 ( 21 ) 193 Income (loss) from continuing operations before income taxes $ ( 134 ) $ 4 $ ( 55 ) $ - $ ( 185 ) Identifiable assets per segment $ 2,379 $ 564 $ 978 $ ( 1,005 ) (3) $ 2,916 Assets held for sale - - - - 74 Total identifiable assets $ 2,379 $ 564 $ 978 $ ( 1,005 ) $ 2,990 (1) - Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). (2) - Primarily represents intercompany service charges and intercompany net investment income and expenses. (3) - Consists principally of intercompany reinsurance balances. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 10: Business Segments (continued) Three Months Ended September 30, 2022 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 17 $ ( 3 ) $ 9 $ - $ 23 Net gains (losses) on financial instruments at fair value and foreign exchange ( 6 ) 35 ( 4 ) - 25 Revenues of consolidated VIEs - - ( 31 ) - ( 31 ) Inter-segment revenues (2) 6 12 2 ( 20 ) - Total revenues 17 44 ( 24 ) ( 20 ) 17 Losses and loss adjustment 16 - ( 28 ) - ( 12 ) Amortization of deferred acquisition costs and operating 2 12 2 - 16 Interest - 14 32 - 46 Expenses of consolidated VIEs - - 2 - 2 Inter-segment expenses (2) 10 5 6 ( 21 ) - Total expenses 28 31 14 ( 21 ) 52 Income (loss) from continuing operations before income taxes $ ( 11 ) $ 13 $ ( 38 ) $ 1 $ ( 35 ) (1) - Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). (2) - Primarily represents intercompany service charges and intercompany net investment income and expenses. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 10: Business Segments (continued) The following tables provide the Company’s segment results for the nine months ended September 30, 2023 and 2022: Nine Months Ended September 30, 2023 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 56 $ 6 $ 28 $ ( 1 ) $ 89 Net gains (losses) on financial instruments at fair value and foreign exchange 1 25 ( 6 ) - 20 Net gains (losses) on extinguishment of debt - 1 - - 1 Revenues of consolidated VIEs - - ( 72 ) - ( 72 ) Inter-segment revenues (2) 20 41 4 ( 65 ) - Total revenues 77 73 ( 46 ) ( 66 ) 38 Losses and loss adjustment 169 - ( 11 ) - 158 Amortization of deferred acquisition costs and operating 4 47 8 1 60 Interest - 41 116 - 157 Expenses of consolidated VIEs - - 9 - 9 Inter-segment expenses (2) 31 18 17 ( 66 ) - Total expenses 204 106 139 ( 65 ) 384 Income (loss) from continuing operations before income taxes $ ( 127 ) $ ( 33 ) $ ( 185 ) $ ( 1 ) $ ( 346 ) Identifiable assets per segment $ 2,379 $ 564 $ 978 $ ( 1,005 ) (3) $ 2,916 Assets held for sale - - - - 74 Total identifiable assets $ 2,379 $ 564 $ 978 $ ( 1,005 ) $ 2,990 (1) - Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). (2) - Primarily represents intercompany service charges and intercompany net investment income and expenses. (3) - Consists principally of intercompany reinsurance balances. Nine Months Ended September 30, 2022 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 24 $ 3 $ 26 $ - $ 53 Net gains (losses) on financial instruments at fair value and foreign exchange ( 43 ) 111 ( 17 ) - 51 Net gains (losses) on extinguishment of debt - 5 - ( 1 ) 4 Revenues of consolidated VIEs - - ( 11 ) - ( 11 ) Inter-segment revenues (2) 20 43 7 ( 70 ) - Total revenues 1 162 5 ( 71 ) 97 Losses and loss adjustment 152 - ( 95 ) - 57 Amortization of deferred acquisition costs and operating 6 35 8 - 49 Interest - 42 88 - 130 Expenses of consolidated VIEs - - 5 - 5 Inter-segment expenses (2) 33 17 20 ( 70 ) - Total expenses 191 94 26 ( 70 ) 241 Income (loss) from continuing operations before income taxes $ ( 190 ) $ 68 $ ( 21 ) $ ( 1 ) $ ( 144 ) (1) - Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). (2) - Primarily represents intercompany service charges and intercompany net investment income and expenses. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Earnings Per Share | Note 11: Ea rnings Per Share Earnings per share is calculated using the two-class method in which earnings are allocated to common stock and participating securities based on their rights to receive nonforfeitable dividends or dividend equivalents. The Company grants restricted stock to certain employees and non-employee directors in accordance with the Company’s long-term incentive programs, which entitle the participants to receive nonforfeitable dividends or dividend equivalents during the vesting period on the same basis as those dividends are paid to common shareholders. These unvested stock awards represent participating securities. During periods of net income, the calculation of earnings per share exclude the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. During periods of net loss, no effect is given to participating securities in the numerator and the denominator excludes the dilutive impact of these securities since they do not share in the losses of the Company. Basic earnings per share excludes dilution and is reported separately for continuing operations and discontinued operations. Basic earnings per share for continuing operations and discontinued operations is computed by dividing net income from continuing operations and discontinued operations available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the dilutive effect of all unvested restricted stock outstanding during the period that could potentially result in the issuance of common stock. The dilution from unvested restricted stock is calculated by applying the two-class method and using the treasury stock method. The treasury stock method assumes the proceeds from the unrecognized compensation expense from unvested restricted stock will be used to purchase shares of the Company’s common stock at the average market price during the period. If the potentially dilutive securities disclosed in the table below become vested, the transaction would be net share settled resulting in a significantly lower impact to the outstanding share balance in comparison to the total amount of the potentially dilutive securities. During periods of net loss, unvested restricted stock is excluded from the calculation because it would have an antidilutive effect. Therefore, in periods of net loss, the calculation of basic and diluted earnings per share would result in the same value. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 11: Earnings Per Share (continued) The following table presents the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, In millions except per share amounts 2023 2022 2023 2022 Basic and diluted earnings per share: Net income (loss) from continuing operations available to common shareholders $ ( 185 ) $ ( 35 ) $ ( 346 ) $ ( 144 ) Income (loss) from discontinued operations, net of income taxes ( 1 ) 1 ( 2 ) 1 Less: Net income (loss) from discontinued operations attributable to noncontrolling interests ( 1 ) - 5 - Net income (loss) from discontinued operations attributable to MBIA Inc. - 1 ( 7 ) 1 Net income (loss) attributable to MBIA Inc. $ ( 185 ) $ ( 34 ) $ ( 353 ) $ ( 143 ) Basic and diluted weighted average shares (1) 47.0 49.9 48.7 49.8 Net income (loss) per common share attributable to MBIA Inc. - basic and diluted: Continuing operations $ ( 3.93 ) $ ( 0.68 ) $ ( 7.10 ) $ ( 2.88 ) Discontinued operations ( 0.01 ) 0.01 ( 0.15 ) 0.01 Net income (loss) per share attributable to MBIA Inc. - basic and diluted $ ( 3.94 ) $ ( 0.67 ) $ ( 7.25 ) $ ( 2.87 ) Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect 4.3 5.0 4.3 5.0 (1) - Includes approximately 1 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the three and nine months ended September 30, 2023 and 2022 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Accumulated Other Comprehensive Income | Note 12: Accum ulated Other Comprehensive Income The following table presents the changes in the components of AOCI for the nine months ended September 30, 2023: In millions Unrealized Gains (Losses) on AFS Securities, Net Foreign Currency Translation, Net Instrument- Specific Credit Risk of Liabilities Measured at Fair Value, Net Total Balance, December 31, 2022 $ ( 234 ) $ ( 4 ) $ ( 45 ) $ ( 283 ) Other comprehensive income (loss) before reclassifications ( 37 ) - ( 4 ) ( 41 ) Amounts reclassified from AOCI 16 - 45 61 Net period other comprehensive income (loss) ( 21 ) - 41 20 Balance, September 30, 2023 $ ( 255 ) $ ( 4 ) $ ( 4 ) $ ( 263 ) MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 12: Accumulated Other Comprehensive Income The following table presents the details of the reclassifications from AOCI for the three and nine months ended September 30, 2023 and 2022: In millions Amounts Reclassified from AOCI Three Months Ended September 30, Nine Months Ended September 30, Details about AOCI Components 2023 2022 2023 2022 Affected Line Item on the Unrealized gains (losses) on AFS securities: Realized gains (losses) on sale of securities $ ( 3 ) $ 3 $ ( 16 ) $ 5 Net realized investment gains (losses) Instrument-specific credit risk of liabilities: Deconsolidation of VIEs 1 - ( 20 ) - Other net realized gains (losses) - VIE Settlement of liabilities ( 12 ) ( 23 ) ( 25 ) ( 11 ) Net gains (losses) on financial instruments at Total reclassifications for the period $ ( 14 ) $ ( 20 ) $ ( 61 ) $ ( 6 ) Net income (loss) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Commitments and Contingencies | Note 13: Com mitments and Contingencies The following commitments and contingencies provide an update of those discussed in “Note 19: Commitments and Contingencies” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and should be read in conjunction with the complete descriptions provided in the aforementioned Form 10-K. Litigation Refer to “Note 1: Business Developments and Risks and Uncertainties ” for further information regarding PREPA's Title III proceedings. There are otherwise no material legal proceedings pending or, to the knowledge of the Company, threatened, to which the Company or any of its subsidiaries is a party. Lease Commitments The Company has a lease agreement for its headquarters in Purchase, New York. The initial lease term expires in 2030 with the option to terminate the lease in 2025 upon the payment of a termination amount. This lease agreement included an incentive amount to fund certain leasehold improvements, renewal options, escalation clauses and a free rent period. This lease agreement has been classified as an operating lease, and operating rent expense is recognized on a straight-line basis. The following table provides information about the Company’s leases as of September 30, 2023: $ in millions As of September 30, 2023 Balance Sheet Location Right-of-use asset $ 16 Other assets Lease liability $ 16 Other liabilities Weighted average remaining lease term (years) 6.9 Discount rate used for operating leases 7.5 % Total future minimum lease payments $ 21 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and, accordingly, do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual periods. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board (U.S.), but in the opinion of management such financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company’s consolidated financial position and results of operations. All material intercompany balances and transactions have been eliminated. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As additional information becomes available or actual amounts become determinable, the recorded estimates are revised and reflected in operating results. The results of operations for the three and nine months ended September 30, 2023 may not be indicative of the results that may be expected for the year ending December 31, 2023. The December 31, 2022 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP for annual periods. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In January of 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-01, “Reference Rate Reform – Scope,” which clarified the scope and application of the original guidance, ASU 2020-04,“Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” issued in March of 2020. In December of 2022, the FASB issued ASU 2022-06,“Reference Rate Reform – Deferral of the Sunset Date of Topic 848,” which extends the sunset date to December 31, 2024. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships that reference London Interbank Offered Rate (“LIBOR”) or other rates that are expected to be discontinued, subject to meeting certain criteria. These ASUs were effective upon issuance, and the Company may elect to apply the amendments prospectively through December 31, 2024. The Company adopted these ASUs in the second quarter of 2023 and the adoption of these ASUs did not materially affect the Company’s consolidated financial statements. The Company has identified LIBOR transition primarily effecting its insurance portfolio exposures that reference or are indexed to LIBOR, interest rate swaps referencing LIBOR, investments indexed to an interbank offered rate, including LIBOR, and MBIA Corp.’s surplus notes. The Company will be applying the accounting relief as relevant contract modifications are made through December 31, 2024. Contract modifications are expected to only include those that address a LIBOR transition. The Company has not adopted any other new accounting pronouncements that had a material impact on its consolidated financial statements. |
Business Developments and Ris_2
Business Developments and Risks and Uncertainties (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Schedule of Discontinued Operations Components of Assets and Liabilities Held for Sale | The following table summarizes the components of assets and liabilities held for sale: As of In millions September 30, 2023 December 31, 2022 Assets held for sale Cash $ 1 $ 12 Accounts receivable 18 24 Goodwill 90 90 Other assets 11 8 Loss on disposal group ( 46 ) ( 54 ) Total assets held for sale $ 74 $ 80 Liabilities held for sale Accounts payable $ 8 $ 12 Debt 37 30 Accrued expenses and other 20 19 Total liabilities held for sale $ 65 $ 61 |
Schedule of Results of Operations from Discontinued Operation | The results of operations from discontinued operations for the three and nine months ended September 30, 2023 and 2022 consist of the following: Three Months Ended September 30, Nine Months Ended September 30, In millions 2023 2022 2023 2022 Revenues: Revenues $ 29 $ 23 $ 92 $ 23 Cost of sales 15 11 46 11 Total revenues from discontinued operations 14 12 46 12 Expenses: Operating 16 11 53 11 Interest 1 - 3 - Increase (decrease) on loss on disposal group ( 2 ) - ( 8 ) - Total expenses from discontinued operations 15 11 48 11 Income (loss) before income taxes from discontinued operations ( 1 ) 1 ( 2 ) 1 Provision (benefit) for income taxes from discontinued operations - - - - Income (loss) from discontinued operations, net of income taxes $ ( 1 ) $ 1 $ ( 2 ) $ 1 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Summary of Nonconsolidated VIEs Assets and Liabilities | September 30, 2023 Carrying Value of Assets Carrying Value of Liabilities In millions Maximum Exposure to Loss Investments Premiums Receivable Insurance Loss Recoverable Unearned Premium Revenue Loss and Loss Adjustment Expense Reserves Insurance: Global structured finance: Mortgage-backed residential $ 848 $ 18 $ 5 $ 19 $ 3 $ 219 Consumer asset-backed 130 - - 1 - 3 Corporate asset-backed 413 - 2 7 3 - Total global structured finance 1,391 18 7 27 6 222 Global public finance 216 - 4 - 4 - Total insurance $ 1,607 $ 18 $ 11 $ 27 $ 10 $ 222 December 31, 2022 Carrying Value of Assets Carrying Value of Liabilities In millions Maximum Exposure to Loss Investments Premiums Receivable Insurance Loss Recoverable Unearned Premium Revenue Loss and Loss Adjustment Expense Reserves Insurance: Global structured finance: Mortgage-backed residential $ 996 $ 75 $ 6 $ 21 $ 4 $ 277 Consumer asset-backed 164 - - - 1 5 Corporate asset-backed 450 - 3 7 3 - Total global structured finance 1,610 75 9 28 8 282 Global public finance 230 - 5 - 4 - Total insurance $ 1,840 $ 75 $ 14 $ 28 $ 12 $ 282 |
Loss and Loss Adjustment Expe_2
Loss and Loss Adjustment Expense Reserves (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Present Value Of The Probability-Weighted Future Claim Payments And Recoveries | The Company’s loss and LAE reserves and recoveries before consolidated VIE eliminations, along with amounts that were eliminated as a result of consolidating VIEs for the international and structured finance insurance segment, which are included in the Company’s consolidated balance sheets as of September 30, 2023 and December 31, 2022 are presented in the following table: As of September 30, 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 $ 150 $ 228 $ 107 $ 154 International and Structured Finance Insurance: Before VIE eliminations 28 314 32 488 VIE eliminations ( 1 ) ( 92 ) ( 2 ) ( 203 ) Total international and structured finance insurance 27 222 30 285 Total $ 177 $ 450 $ 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 Nine Months Ended September 30, 2023 Gross Loss Gross Loss and LAE Accretion Changes in and LAE Reserves as of Loss of Claim Changes in Unearned Reserves as of December 31, and LAE Liability Discount Changes in Premium September 30, 2022 Payments Discount Rates Assumptions (1) Revenue 2023 $ 439 $ ( 210 ) $ 9 $ ( 24 ) $ 234 $ 2 $ 450 (1) - Includes changes in amount and timing of estimated payments and recoveries. |
Schedule Of Insurance Loss Recoverable | Changes in Insurance Loss Recoverable for the Nine Months Ended September 30, 2023 Gross Gross Recoverable Recoverable as of Accretion Changes in as of December 31, Collections of Discount Changes in September 30, In millions 2022 for Cases Recoveries Rates Assumptions 2023 Insurance loss recoverable $ 137 $ ( 7 ) $ 3 $ 1 $ 43 $ 177 |
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 September 30, 2023: Surveillance Categories Caution Caution Caution List List List Classified $ in millions Low Medium High List Total Number of policies 36 1 - 95 132 Number of issues (1) 13 1 - 78 92 Remaining weighted average contract period (in years) 5.6 0.3 - 7.0 6.3 Gross insured contractual payments outstanding: (2) Principal $ 1,411 $ 2 $ - $ 1,255 $ 2,668 Interest 1,697 - - 494 2,191 Total $ 3,108 $ 2 $ - $ 1,749 $ 4,859 Gross Claim Liability (3) $ - $ - $ - $ 653 $ 653 Less: Gross Potential Recoveries (4) - - - 235 235 Discount, net (5) - - - 147 147 Net claim liability (recoverable) $ - $ - $ - $ 271 $ 271 Unearned premium revenue $ 9 $ - $ - $ 8 $ 17 Reinsurance recoverable on paid and unpaid losses (6) $ 13 (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. 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 Caution Caution Caution List List List Classified $ in millions Low Medium High 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. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following tables provide quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022: Fair Value as of Range September 30, (Weighted In millions 2023 Valuation Techniques Unobservable Input Average) Assets: Equity Investments $ 115 Discounted cash flow EBITDA multiples (1) Discount rate (1) Sum of the parts Hard asset values (1) Type certificate values (1) Assets of consolidated VIEs: Loans receivable at fair value 32 Market prices of similar liabilities or internal cash flow models adjusted for financial guarantees provided to VIE obligations Impact of financial guarantee 32 % - 32 % ( 32 %) (2) Liabilities of consolidated VIEs: Variable interest entity notes 78 Market prices of VIE assets adjusted for financial guarantees provided or market prices of similar liabilities Impact of financial guarantee 74 % - 74 % ( 74 %) (2) (1) - Range for EBITDA multiples, discount rate, hard asset values and type certificate values reflects their potential variability. (2) - Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. Fair Value as of Range December 31, (Weighted In millions 2022 Valuation Techniques Unobservable Input Average) Assets: Equity Investments $ 115 Discounted cash flow EBITDA multiples (1) Discount rate (1) Sum of the parts Hard asset values (1) Type certificate values (1) Assets of consolidated VIEs: Loans receivable at fair value 78 Market prices of similar liabilities or internal cash flow models adjusted for financial guarantees provided to VIE obligations Impact of financial guarantee 12 % - 88 % ( 52 %) (2) Liabilities of consolidated VIEs: Variable interest entity notes 172 Market prices of VIE assets adjusted for financial guarantees provided or market prices of similar liabilities Impact of financial guarantee 34 % - 82 % ( 68 %) (2) (1) - Range for EBITDA multiples, discount rate, hard asset values and type certificate values reflects their potential variability. (2) - Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. |
Company's Assets And Liabilities Measured At Fair Value On Recurring Basis | The following tables present the fair value of the Company’s assets (including short-term investments) and liabilities measured and reported at fair value on a recurring basis as of September 30, 2023 and December 31, 2022: Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Balance as of Assets Inputs Inputs September 30, In millions (Level 1) (Level 2) (Level 3) 2023 Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 379 $ 52 $ - $ 431 State and municipal bonds - 118 - 118 Foreign governments - 22 - 22 Corporate obligations - 799 1 800 Mortgage-backed securities: Residential mortgage-backed agency - 183 - 183 Residential mortgage-backed non-agency - 34 - 34 Commercial mortgage-backed - 22 - 22 Asset-backed securities: Collateralized debt obligations - 161 - 161 Other asset-backed - 65 - 65 Total fixed-maturity investments 379 1,456 1 1,836 Money market securities 338 - - 338 Equity investments 37 19 115 171 Cash and cash equivalents 70 - - 70 Assets of consolidated VIEs: Mortgage-backed securities: Residential mortgage-backed non-agency - 11 - 11 Commercial mortgage-backed - 9 - 9 Asset-backed securities: Collateralized debt obligations - 1 - 1 Other asset-backed - 1 - 1 Cash 4 - - 4 Loans receivable at fair value: Residential loans receivable - - 32 32 Other assets - - 2 2 Total assets $ 828 $ 1,497 $ 150 $ 2,475 Liabilities: Medium-term notes $ - $ - $ 37 $ 37 Derivative liabilities: Insured credit derivatives - 1 - 1 Non-insured interest rate derivatives - 22 - 22 Liabilities of consolidated VIEs: Variable interest entity notes - - 78 78 Currency derivatives - - 11 11 Total liabilities $ - $ 23 $ 126 $ 149 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Balance as of Assets Inputs Inputs December 31, In millions (Level 1) (Level 2) (Level 3) 2022 Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 463 $ 54 $ - $ 517 State and municipal bonds - 323 - 323 Foreign governments - 21 - 21 Corporate obligations - 797 - 797 Mortgage-backed securities: Residential mortgage-backed agency - 207 - 207 Residential mortgage-backed non-agency - 95 - 95 Commercial mortgage-backed - 24 - 24 Asset-backed securities: Collateralized debt obligations - 159 - 159 Other asset-backed - 127 - 127 Total fixed-maturity investments 463 1,807 - 2,270 Money market securities 234 - - 234 Equity investments 38 19 115 172 Cash and cash equivalents 50 - - 50 Assets of consolidated VIEs: Corporate obligations - 4 - 4 Mortgage-backed securities: Residential mortgage-backed non-agency - 22 - 22 Commercial mortgage-backed - 9 - 9 Asset-backed securities: Collateralized debt obligations - 5 - 5 Other asset-backed - 7 - 7 Cash 16 - - 16 Loans receivable at fair value: Residential loans receivable - - 78 78 Other assets - - 23 23 Total assets $ 801 $ 1,873 $ 216 $ 2,890 Liabilities: Medium-term notes - - 41 41 Derivative liabilities: Non-insured interest rate derivatives - 49 - 49 Liabilities of consolidated VIEs: Variable interest entity notes - - 172 172 Currency derivatives - - 6 6 Total liabilities $ - $ 49 $ 219 $ 268 |
Fair Value Hierarchy Table Presents The Company's Assets And Liabilities Not Recorded At Fair Value On The Company's Consolidated Balance Sheet | Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Significant Fair Value Carry Value Active Markets for Other Observable Unobservable Balance as of Balance as of Identical Assets Inputs Inputs September 30, September 30, In millions (Level 1) (Level 2) (Level 3) 2023 2023 Assets: Other investments $ - $ - $ 3 $ 3 $ 3 Total assets $ - $ - $ 3 $ 3 $ 3 Liabilities: Long-term debt $ - $ 272 $ - $ 272 $ 2,546 Medium-term notes - - 286 286 457 Investment agreements - - 238 238 225 Liabilities of consolidated VIEs: Variable interest entity loans payable - - 3 3 3 Total liabilities $ - $ 272 $ 527 $ 799 $ 3,231 Financial Guarantees: Gross liability (recoverable) $ - $ - $ 764 $ 764 $ 513 Ceded recoverable (liability) - - 19 19 17 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Significant Fair Value Carry Value Active Markets for Other Observable Unobservable Balance as of Balance as of Identical Assets Inputs Inputs December 31, December 31, In millions (Level 1) (Level 2) (Level 3) 2022 2022 Liabilities: Long-term debt $ - $ 330 $ - $ 330 $ 2,428 Medium-term notes - - 310 310 458 Investment agreements - - 257 257 233 Liabilities of consolidated VIEs: Variable interest entity loans payable - - 2 2 2 Total liabilities $ - $ 330 $ 569 $ 899 $ 3,121 Financial Guarantees: Gross liability (recoverable) $ - $ - $ 864 $ 864 $ 568 Ceded recoverable (liability) - - 21 21 15 |
Changes In Level 3 Assets Measured At Fair Value On A Recurring Basis | Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2023 Change in Change in Unrealized Unrealized Gains Gains (Losses) for (Losses) for the Period the Period Included in Included in Total Earnings OCI Gains / Unrealized for Assets for Assets (Losses) Gains / still held still held Balance, Included (Losses) Transfers Transfers as of as of Beginning in Included into out of Ending September 30, September 30, In millions of Period Earnings in OCI (1) Purchases Issuances Settlements Sales Level 3 Level 3 Balance 2023 2023 (1) Assets: Corporate obligations $ 1 $ - $ - $ - $ - $ - $ - $ - $ - $ 1 $ - $ - Equity investments 115 - - - - - - - - 115 - - Assets of consolidated VIEs: Loans receivable - 70 ( 7 ) - - - ( 2 ) ( 29 ) - - 32 ( 8 ) - Other 2 - - - - - - - - 2 - - Total assets $ 188 $ ( 7 ) $ - $ - $ - $ ( 2 ) $ ( 29 ) $ - $ - $ 150 $ ( 8 ) $ - Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2022 Change in Change in Unrealized Unrealized Gains Gains (Losses) for (Losses) for the Period the Period Included in Included in Total Earnings for OCI for Gains / Unrealized Assets Assets (Losses) Gains / still held still held Balance, Included (Losses) Transfers Transfers as of as of Beginning in Included into out of Ending September 30, September 30, In millions of Period Earnings in OCI (1) Purchases Issuances Settlements Sales Level 3 Level 3 Balance 2022 2022 (1) Assets: Residential mortgage- $ 55 $ - $ ( 2 ) $ 1 $ - $ - $ ( 17 ) $ - $ - $ 37 $ - $ ( 3 ) Equity investments - - - 101 - - - - - 101 - - Assets of consolidated VIEs: Loans receivable- 68 13 - - - ( 2 ) - - - 79 11 - Currency derivatives 9 ( 9 ) - - - - - - - - ( 9 ) - Other 16 - - - - - - - - 16 - - Total assets $ 148 $ 4 $ ( 2 ) $ 102 $ - $ ( 2 ) $ ( 17 ) $ - $ - $ 233 $ 2 $ ( 3 ) Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2023 Change in Change in Unrealized Unrealized Gains Gains (Losses) for (Losses) for the Period the Period Included in Included in Total Earnings for OCI for Gains / Unrealized Assets Assets (Losses) Gains / still held still held Balance Included (Losses) Transfers Transfers as of as of Beginning in Included into out of Ending September 30, September 30, In millions of Year Earnings in OCI (1) Purchases Issuances Settlements Sales Level 3 Level 3 Balance 2023 2023 (1) Assets: Corporate obligations $ - $ - $ - $ - $ - $ - $ - $ 1 $ - $ 1 $ - $ - Equity investments 115 - - - - - - - - 115 - - Assets of consolidated VIEs: Loans receivable - 78 ( 10 ) - - - ( 7 ) ( 29 ) - - 32 ( 3 ) - Other 23 3 - - - - ( 24 ) - - 2 ( 1 ) - Total assets $ 216 $ ( 7 ) $ - $ - $ - $ ( 7 ) $ ( 53 ) $ 1 $ - $ 150 $ ( 4 ) $ - Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2022 Change in Change in Unrealized Unrealized Gains Gains (Losses) for (Losses) for the Period the Period Included in Included in Total Earnings for Earnings for Gains / Unrealized Assets Assets (Losses) Gains / still held still held Balance, Included (Losses) Transfers Transfers as of as of Beginning in Included into out of Ending September 30, September 30, In millions of Year Earnings in OCI (1) Purchases Issuances Settlements Sales Level 3 Level 3 Balance 2022 2022 (1) Assets: Residential mortgage- $ - $ - $ ( 6 ) $ 60 $ - $ - $ ( 17 ) $ - $ - $ 37 $ - $ - Equity securities - - - 101 - - - - - 101 - - Assets of consolidated VIEs: Collateralized debt obligations 4 - - - - ( 4 ) - - - - - - Loans receivable - 77 8 - - - ( 6 ) - - - 79 2 - Currency derivatives 9 ( 9 ) - - - - - - - - ( 9 ) - Other 14 2 - - - - - - - 16 2 - Total assets $ 104 $ 1 $ ( 6 ) $ 161 $ - $ ( 10 ) $ ( 17 ) $ - $ - $ 233 $ ( 5 ) $ - |
Changes In Level 3 Liabilities Measured At Fair Value On A Recurring Basis | Change in Change in Unrealized Unrealized (Gains) (Gains) Losses for Losses for the Period the Period Included in Included in Total Unrealized Earnings for OCI for (Gains) / (Gains) / Liabilities Liabilities Losses Losses 37 still held still held Balance, Included Included Transfers Transfers as of as of Beginning in in into out of Ending September 30, September 30, In millions of Period Earnings in OCI (2) Purchases Issuances Settlements Sales Level 3 Level 3 Balance 2023 2023 (2) Liabilities: Medium-term notes $ 38 $ ( 3 ) $ 2 $ - $ - $ - $ - $ - $ - $ 37 $ ( 3 ) $ 2 Liabilities of consolidated VIEs: VIE notes 183 15 ( 14 ) - - ( 21 ) ( 85 ) - - 78 2 - Currency derivatives 12 ( 1 ) - - - - - - - 11 ( 1 ) - Total liabilities $ 233 $ 11 $ ( 12 ) $ - $ - $ ( 21 ) $ ( 85 ) $ - $ - $ 126 $ ( 2 ) $ 2 (1) - Reported within the "Unrealized gains (losses) on available-for-sale securities" on MBIA's Consolidated Statement of Comprehensive Income/Loss. (2) - Reported within the "Instrument-specific credit risk of liabilities measured at fair value" on MBIA's Consolidated Statement of Comprehensive Income/Loss. Change in Change in Unrealized Unrealized (Gains) (Gains) Losses for Losses for the Period the Period Included in Included in Total Earnings for OCI for (Gains) / Unrealized Liabilities Liabilities Losses (Gains) / still held still held Balance, Included Losses Transfers Transfers as of as of Beginning in Included into out of Ending September 30, September 30, In millions of Period Earnings in OCI (2) Purchases Issuances Settlements Sales Level 3 Level 3 Balance 2022 2022 (2) Liabilities: Medium-term notes $ 42 $ ( 8 ) $ 4 $ - $ - $ - $ - $ - $ - $ 38 $ ( 8 ) $ 4 Liabilities of consolidated VIEs: VIE notes 217 33 ( 25 ) - - ( 52 ) - - - 173 ( 2 ) 1 Currency - 5 - - - - - - - 5 5 - Total liabilities $ 259 $ 30 $ ( 21 ) $ - $ - $ ( 52 ) $ - $ - $ - $ 216 $ ( 5 ) $ 5 (1) - Reported within the "Unrealized gains (losses) on available-for-sale securities" on MBIA's Consolidated Statement of Comprehensive Income/Loss. (2) - Reported within the "Instrument-specific credit risk of liabilities measured at fair value" on MBIA's Consolidated Statement of Comprehensive Income/Loss. Change in Change in Unrealized Unrealized (Gains) (Gains) Losses for Losses for the Period the Period Included in Included in Total Unrealized Earnings for OCI for (Gains) / (Gains) / Liabilities Liabilities Losses Losses still held still held Balance, Included Included in Transfers Transfers as of as of Beginning in Credit Risk into out of Ending September 30, September 30, In millions of Year Earnings in OCI (2) Purchases Issuances Settlements Sales Level 3 Level 3 Balance 2023 2023 (2) Liabilities: Medium-term notes $ 41 $ ( 2 ) $ ( 2 ) $ - $ - $ - $ - $ - $ - $ 37 $ ( 2 ) $ ( 2 ) Liabilities of consolidated VIEs: VIE notes 172 48 ( 39 ) - 62 ( 45 ) ( 120 ) - - 78 3 1 Currency derivatives 6 5 - - - - - - - 11 5 - Total liabilities $ 219 $ 51 $ ( 41 ) $ - $ 62 $ ( 45 ) $ ( 120 ) $ - $ - $ 126 $ 6 $ ( 1 ) (1) - Reported within the "Unrealized gains (losses) on available-for-sale securities" on MBIA's Consolidated Statement of Comprehensive Income/Loss. (2) - Reported within the "Instrument-specific credit risk of liabilities measured at fair value" on MBIA's Consolidated Statement of Comprehensive Income/Loss. Change in Change in Unrealized Unrealized (Gains) (Gains) Losses for Losses for the Period the Period Included in Included in Total Earnings for OCI for (Gains) / Unrealized Liabilities Liabilities Losses (Gains) / still held still held Balance, Included Losses Transfers Transfers as of as of Beginning in Included into out of Ending September 30, September 30, In millions of Year Earnings in OCI (2) Purchases Issuances Settlements Sales Level 3 Level 3 Balance 2022 2022 (2) Liabilities: Medium-term notes $ 98 $ ( 29 ) $ 17 $ - $ - $ ( 48 ) $ - $ - $ - $ 38 $ ( 28 ) $ 18 Liabilities of consolidated VIEs: VIE notes 291 8 ( 6 ) - - ( 120 ) - - - 173 ( 9 ) 4 Currency derivatives - 5 - - - - - - - 5 5 - Total liabilities $ 389 $ ( 16 ) $ 11 $ - $ - $ ( 168 ) $ - $ - $ - $ 216 $ ( 32 ) $ 22 (1) - Reported within the "Unrealized gains (losses) on available-for-sale securities" on MBIA's Consolidated Statement of Comprehensive Income/Loss. (2) - Reported within the "Instrument-specific credit risk of liabilities measured at fair value" on MBIA's Consolidated Statement of Comprehensive Income/Loss. |
Gains And Losses (Realized And Unrealized) Included In Earnings Pertaining To Level 3 Assets And Liabilities | Gains and losses (realized and unrealized) included in earnings related to Level 3 assets and liabilities for the three months ended September 30, 2023 and 2022 are reported on the Company’s consolidated statements of operations as follows: Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Change in Change in Unrealized Unrealized Gains (Losses) Gains (Losses) for the for the Period Included Period Included in Earnings in Earnings for Assets for Assets and and Total Gains Liabilities still Total Gains Liabilities still (Losses) held as of (Losses) held as of Included September 30, Included September 30, In millions in Earnings 2023 in Earnings 2022 Revenues: Net gains (losses) on financial instruments $ 3 $ 3 $ 8 $ 8 Revenues of consolidated VIEs: Net gains (losses) on financial instruments ( 14 ) ( 9 ) ( 34 ) ( 1 ) Other net realized gains (losses) ( 7 ) - - - Total $ ( 18 ) $ ( 6 ) $ ( 26 ) $ 7 Gains and losses (realized and unrealized) included in earnings relating to Level 3 assets and liabilities for the nine months ended September 30, 2023 and 2022 are reported on the Company’s consolidated statements of operations as follows: Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Change in Change in Unrealized Unrealized Gains (Losses) Gains (Losses) for the for the Period Included Period Included in Earnings in Earnings for Assets for Assets and and Total Gains Liabilities still Total Gains Liabilities still (Losses) held as of (Losses) held as of Included September 30, Included September 30, In millions in Earnings 2023 in Earnings 2022 Revenues: Net gains (losses) on financial instruments $ 2 $ 2 $ 29 $ 28 Revenues of consolidated VIEs: Net gains (losses) on financial instruments ( 32 ) ( 12 ) ( 12 ) ( 1 ) Other net realized gains (losses) ( 28 ) - - - Total $ ( 58 ) $ ( 10 ) $ 17 $ 27 |
Changes In Fair Value Included In The Company's Consolidated Statements Of Operations | The following table presents the gains and (losses) included in the Company's consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022 for financial instruments for which the fair value option was elected: Three Months Ended September 30, Nine Months Ended September 30, In millions 2023 2022 2023 2022 Investments carried at fair value (1) $ ( 2 ) $ ( 7 ) $ 1 $ ( 33 ) Fixed-maturity securities held at fair value-VIE (3) - ( 1 ) ( 4 ) ( 4 ) Loans receivable at fair value: Residential mortgage loans (2) ( 7 ) 13 ( 10 ) 8 Other assets-VIE (3) - - 3 2 Medium-term notes (1) 3 8 2 29 Variable interest entity notes (3) ( 15 ) ( 35 ) ( 48 ) ( 12 ) (1) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange" on MBIA's consolidated statements of operations. (2) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" on MBIA's consolidated statements of operations. (3) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" and "Other net realized gains (losses)-VIE" on MBIA's consolidated statements of operations. |
Difference Between Aggregate Fair Value And The Aggregate Remaining Contractual Principal Balance Outstanding | The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of September 30, 2023 and December 31, 2022 for loans and notes for which the fair value option was elected: As of September 30, 2023 As of December 31, 2022 Contractual Contractual Outstanding Fair Outstanding Fair In millions Principal Value Difference Principal Value Difference Loans receivable at fair value: Residential mortgage loans - current $ 18 $ 18 $ - $ 39 $ 39 $ - Residential mortgage loans (90 days or more past due) 57 14 43 149 39 110 Total loans receivable and other instruments at fair value $ 75 $ 32 $ 43 $ 188 $ 78 $ 110 Variable interest entity notes $ 329 $ 78 $ 251 $ 780 $ 172 $ 608 Medium-term notes $ 53 $ 37 $ 16 $ 53 $ 41 $ 12 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Amortized Cost And Fair Value Of Available-For-Sale And Held-To-Maturity Investment Portfolios | The following tables present the amortized cost, allowance for credit losses, corresponding gross unrealized gains and losses and fair value for AFS investments in the Company’s consolidated investment portfolio as of September 30, 2023 and December 31, 2022: September 30, 2023 Allowance Gross Gross Amortized for Credit Unrealized Unrealized Fair In millions Cost Losses Gains Losses Value AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 462 $ - $ 1 $ ( 41 ) $ 422 State and municipal bonds 131 - 1 ( 15 ) 117 Foreign governments 25 - 1 ( 4 ) 22 Corporate obligations 884 - - ( 158 ) 726 Mortgage-backed securities: Residential mortgage-backed agency 197 - - ( 26 ) 171 Residential mortgage-backed non-agency 33 - - ( 7 ) 26 Commercial mortgage-backed 22 - - ( 1 ) 21 Asset-backed securities: Collateralized debt obligations 114 - 1 ( 2 ) 113 Other asset-backed 46 - - ( 3 ) 43 Total AFS investments $ 1,914 $ - $ 4 $ ( 257 ) $ 1,661 MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 7: Investments (continued) December 31, 2022 Allowance Gross Gross Amortized for Credit Unrealized Unrealized Fair In millions Cost Losses Gains Losses Value AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 541 $ - $ 5 $ ( 38 ) $ 508 State and municipal bonds 173 - 2 ( 11 ) 164 Foreign governments 23 - - ( 3 ) 20 Corporate obligations 862 - 1 ( 148 ) 715 Mortgage-backed securities: Residential mortgage-backed agency 217 - - ( 22 ) 195 Residential mortgage-backed non-agency 96 - 3 ( 11 ) 88 Commercial mortgage-backed 24 - - ( 1 ) 23 Asset-backed securities: Collateralized debt obligations 117 - - ( 5 ) 112 Other asset-backed 110 - - ( 4 ) 106 Total AFS investments $ 2,163 $ - $ 11 $ ( 243 ) $ 1,931 |
Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments | The following table presents the distribution by contractual maturity of AFS fixed-maturity securities at amortized cost, net of allowance for credit losses, and fair value as of September 30, 2023. Contractual maturity may differ from expected maturity as borrowers may have the right to call or prepay obligations. AFS Securities Net Amortized Fair In millions Cost Value Due in one year or less $ 172 $ 172 Due after one year through five years 379 364 Due after five years through ten years 280 233 Due after ten years 671 518 Mortgage-backed and asset-backed 412 374 Total fixed-maturity investments $ 1,914 $ 1,661 |
Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments | The following tables present the non-credit related gross unrealized losses related to AFS investments as of September 30, 2023 and December 31, 2022: September 30, 2023 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized In millions Value Losses Value Losses Value Losses AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 64 $ ( 3 ) $ 196 $ ( 38 ) $ 260 $ ( 41 ) State and municipal bonds 48 ( 3 ) 54 ( 12 ) 102 ( 15 ) Foreign governments 5 - 8 ( 4 ) 13 ( 4 ) Corporate obligations 192 ( 5 ) 500 ( 153 ) 692 ( 158 ) Mortgage-backed securities: Residential mortgage-backed agency 13 - 132 ( 26 ) 145 ( 26 ) Residential mortgage-backed non-agency 3 - 22 ( 7 ) 25 ( 7 ) Commercial mortgage-backed 11 ( 1 ) 7 - 18 ( 1 ) Asset-backed securities: Collateralized debt obligations 9 - 101 ( 2 ) 110 ( 2 ) Other asset-backed 3 - 34 ( 3 ) 37 ( 3 ) Total AFS investments $ 348 $ ( 12 ) $ 1,054 $ ( 245 ) $ 1,402 $ ( 257 ) MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 7: Investments (continued) December 31, 2022 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized In millions Value Losses Value Losses Value Losses AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 266 $ ( 34 ) $ 29 $ ( 4 ) $ 295 $ ( 38 ) State and municipal bonds 92 ( 10 ) 1 ( 1 ) 93 ( 11 ) Foreign governments 9 ( 3 ) - - 9 ( 3 ) Corporate obligations 508 ( 106 ) 141 ( 42 ) 649 ( 148 ) Mortgage-backed securities: Residential mortgage-backed agency 112 ( 9 ) 65 ( 13 ) 177 ( 22 ) Residential mortgage-backed non-agency 65 ( 10 ) 2 ( 1 ) 67 ( 11 ) Commercial mortgage-backed 18 ( 1 ) 1 - 19 ( 1 ) Asset-backed securities: Collateralized debt obligations 51 ( 1 ) 60 ( 4 ) 111 ( 5 ) Other asset-backed 44 ( 3 ) 24 ( 1 ) 68 ( 4 ) Total AFS investments $ 1,165 $ ( 177 ) $ 323 $ ( 66 ) $ 1,488 $ ( 243 ) |
Distribution Of Securities By Percentage Of Fair Value Below Book Value By More Than 5% | The following table presents the distribution of securities in an unrealized loss position for a continuous twelve-month period or longer where fair value was below book value by more than 5% as of September 30, 2023: AFS Securities Percentage of Fair Value Number of Book Value Fair Value Below Book Value Securities (in millions) (in millions) > 5 % to 15 % 194 $ 336 $ 304 > 15 % to 25 % 153 386 309 > 25 % to 50 % 159 373 244 > 50 % 3 5 2 Total 509 $ 1,100 $ 859 |
Summary of Allowance for Credit Losses on AFS Investments | The following tables present the rollforward of allowance for credit losses on AFS investments for the three and nine months ended September 30, 2022. The additions to the allowance for credit losses for the nine months ended September 30, 2022 were related to concerns on an issuer’s credit deterioration as a result of the Ukraine and Russia conflict. In the third quarter of 2022, these securities were impaired to fair value due to the Company's intent to sell and the credit losses were reversed. The Company did not establish an allowance for credit losses for AFS securities for the three or nine months ended September 30, 2023. Three Months Ended September 30, 2022 Balance Additions Additions Reductions Reductions- Change in Balance as of not arising from Intent Allowance as of June 30, previously from PCD Securities to sell Previously Write September 30, In millions 2022 recorded Assets Sold or MLTN Recorded Offs Recoveries 2022 AFS Investments Fixed-maturity investments: Corporate obligations $ 3 $ - $ - $ - $ 3 $ - $ - $ - $ - Total Allowance on AFS investments $ 3 $ - $ - $ - $ 3 $ - $ - $ - $ - Nine Months Ended September 30, 2022 Balance Additions Additions Reductions Reductions- Change in Balance as of not arising from Intent Allowance as of December 31, previously from PCD Securities to sell Previously Write September 30, In millions 2021 recorded Assets Sold or MLTN Recorded Offs Recoveries 2022 AFS Investments Fixed-maturity investments: Corporate obligations $ - $ 3 $ - $ - $ 3 $ - $ - $ - $ - Total Allowance on AFS investments $ - $ 3 $ - $ - $ 3 $ - $ - $ - $ - |
Securities Held In Unrealized Loss Position And Insured By Financial Guarantor and The Related Insurance Loss Reserve On Company Insured Investments | The following table provides information about securities held by the Company as of September 30, 2023 that were in an unrealized loss position and insured by a financial guarantor, along with the amount of insurance loss reserves corresponding to the par amount owned by the Company. The Company did not hold any securities in an unrealized loss position that were insured by a third-party financial guarantor as of September 30, 2023. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 7: Investments (continued) Unrealized Insurance Loss In millions Fair Value Loss Reserve (1) Mortgage-backed $ 16 $ ( 5 ) $ 20 Corporate obligations 77 ( 42 ) - Other 7 - - Total $ 100 $ ( 47 ) $ 20 (1) - Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured and are discounted using a discount rate equal to the risk-free rate applicable to the currency and weighted average remaining life of the insurance contract and may differ from the fair value. |
Gross Realized Gains and Losses From Sales Of Available-For-Sale Securities | The proceeds and the gross realized gains and losses from sales of fixed-maturity securities held as AFS for the three and nine months ended September 30, 2023 and 2022 are as follows: Three Months Ended September 30, Nine Months Ended September 30, In millions 2023 2022 2023 2022 Proceeds from sales $ 108 $ 339 $ 380 $ 859 Gross realized gains $ - $ 2 $ 1 $ 3 Gross realized losses $ ( 13 ) $ ( 17 ) $ ( 24 ) $ ( 42 ) |
Portion Of Unrealized Gains Losses Recognized On Equity Investments | Three Months Ended September 30, Nine Months Ended September 30, In millions 2023 2022 2023 2022 Net gains (losses) recognized during the period on equity and trading securities $ ( 1 ) $ ( 3 ) $ 2 $ ( 31 ) Less: Net gains (losses) recognized during the period on equity and trading securities sold during the period ( 1 ) ( 6 ) ( 1 ) ( 6 ) Unrealized gains (losses) recognized during the period on equity and trading securities still held at the reporting date $ - $ 3 $ 3 $ ( 25 ) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Credit Derivatives Sold | $ in millions As of September 30, 2023 Notional Value Credit Derivatives Sold Weighted Average Remaining Expected Maturity AAA AA A BBB Below Investment Grade Total Notional Fair Value Asset (Liability) Insured swaps 13.5 Years $ - $ 43 $ 970 $ 210 $ 60 $ 1,283 $ ( 1 ) Total fair value $ - $ - $ - $ - $ ( 1 ) $ ( 1 ) $ in millions As of December 31, 2022 Notional Value Credit Derivatives Sold Weighted Average Remaining Expected Maturity AAA AA A BBB Below Investment Grade Total Notional Fair Value Asset (Liability) Insured swaps 13.7 Years $ - $ 50 $ 1,013 $ 227 $ 60 $ 1,350 $ - Total fair value $ - $ - $ - $ - $ - $ - |
Total Fair Value Of Company's Derivative Assets And Liabilities By Instrument And Balance Sheet Location, Before Counterparty Netting | The following tables present the total fair value of the Company’s derivative assets and liabilities by instrument and balance sheet location, before counterparty netting, as of September 30, 2023 and December 31, 2022: September 30, 2023 In millions Derivative Assets (1) Derivative Liabilities (1) Notional Amount Fair Fair Derivative Instruments Outstanding Balance Sheet Location Value Balance Sheet Location Value Not designated as hedging instruments: Insured swaps $ 1,283 Other assets $ - Derivative liabilities $ ( 1 ) Interest rate swaps 323 Other assets - Derivative liabilities ( 22 ) Interest rate swaps-embedded 193 Medium-term notes 1 Medium-term notes - Currency swaps-VIE 13 Other assets-VIE - Derivative liabilities-VIE ( 11 ) Total non-designated derivatives $ 1,812 $ 1 $ ( 34 ) (1) - In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Company’s embedded derivative instruments is determined by the location of the related host contract. December 31, 2022 In millions Derivative Assets (1) Derivative Liabilities (1) Notional Amount Fair Fair Derivative Instruments Outstanding Balance Sheet Location Value Balance Sheet Location Value Not designated as hedging instruments: Insured swaps $ 1,350 Other assets $ - Derivative liabilities $ - Interest rate swaps 380 Other assets - Derivative liabilities ( 49 ) Interest rate swaps-embedded 194 Medium-term notes 1 Medium-term notes ( 2 ) Currency swaps-VIE 36 Other assets-VIE - Derivative liabilities-VIE ( 6 ) Total non-designated derivatives $ 1,960 $ 1 $ ( 57 ) (1) - In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Company’s embedded derivative instruments is determined by the location of the related host contract. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 8: Derivative Instruments (continued) |
Effect Of Derivative Instruments On Consolidated Statements Of Operations | The following table presents the effect of derivative instruments on the consolidated statements of operations for the three months ended September 30, 2023 and 2022: In millions Derivatives Not Designated Three Months Ended September 30, as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2023 2022 Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange $ 20 $ 23 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE 2 ( 14 ) Total $ 22 $ 9 The following table presents the effect of derivative instruments on the consolidated statements of operations for the nine months ended September 30, 2023 and 2022: In millions Derivatives Not Designated Nine Months Ended September 30, as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2023 2022 Insured swaps Net gains (losses) on financial instruments at fair value and foreign exchange $ - $ 1 Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange 21 79 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE ( 4 ) ( 14 ) Total $ 17 $ 66 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income tax rate reconciliation from statutory to effective tax rate | The Company’s income taxes and the related effective tax rates for the three and nine months ended September 30, 2023 and 2022 are as follows: Three Months Ended September 30, Nine Months Ended September 30, In millions 2023 2022 2023 2022 Income (loss) from continuing operations before income taxes $ ( 185 ) $ ( 35 ) $ ( 346 ) $ ( 144 ) Provision (benefit) for income taxes $ - $ - $ - $ - Effective tax rate 0.0 % 0.0 % 0.0 % 0.0 % |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Summary of company's segment results | The following tables provide the Company’s segment results for the three months ended September 30, 2023 and 2022: Three Months Ended September 30, 2023 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 15 $ ( 1 ) $ 4 $ ( 1 ) $ 17 Net gains (losses) on financial instruments at fair value and foreign exchange ( 1 ) 23 ( 1 ) - 21 Revenues of consolidated VIEs - - ( 30 ) - ( 30 ) Inter-segment revenues (2) 6 13 1 ( 20 ) - Total revenues 20 35 ( 26 ) ( 21 ) 8 Losses and loss adjustment 143 - ( 20 ) - 123 Amortization of deferred acquisition costs and operating - 11 3 2 16 Interest - 13 40 - 53 Expenses of consolidated VIEs - - 1 - 1 Inter-segment expenses (2) 11 7 5 ( 23 ) - Total expenses 154 31 29 ( 21 ) 193 Income (loss) from continuing operations before income taxes $ ( 134 ) $ 4 $ ( 55 ) $ - $ ( 185 ) Identifiable assets per segment $ 2,379 $ 564 $ 978 $ ( 1,005 ) (3) $ 2,916 Assets held for sale - - - - 74 Total identifiable assets $ 2,379 $ 564 $ 978 $ ( 1,005 ) $ 2,990 (1) - Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). (2) - Primarily represents intercompany service charges and intercompany net investment income and expenses. (3) - Consists principally of intercompany reinsurance balances. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 10: Business Segments (continued) Three Months Ended September 30, 2022 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 17 $ ( 3 ) $ 9 $ - $ 23 Net gains (losses) on financial instruments at fair value and foreign exchange ( 6 ) 35 ( 4 ) - 25 Revenues of consolidated VIEs - - ( 31 ) - ( 31 ) Inter-segment revenues (2) 6 12 2 ( 20 ) - Total revenues 17 44 ( 24 ) ( 20 ) 17 Losses and loss adjustment 16 - ( 28 ) - ( 12 ) Amortization of deferred acquisition costs and operating 2 12 2 - 16 Interest - 14 32 - 46 Expenses of consolidated VIEs - - 2 - 2 Inter-segment expenses (2) 10 5 6 ( 21 ) - Total expenses 28 31 14 ( 21 ) 52 Income (loss) from continuing operations before income taxes $ ( 11 ) $ 13 $ ( 38 ) $ 1 $ ( 35 ) (1) - Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). (2) - Primarily represents intercompany service charges and intercompany net investment income and expenses. MBIA Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 10: Business Segments (continued) The following tables provide the Company’s segment results for the nine months ended September 30, 2023 and 2022: Nine Months Ended September 30, 2023 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 56 $ 6 $ 28 $ ( 1 ) $ 89 Net gains (losses) on financial instruments at fair value and foreign exchange 1 25 ( 6 ) - 20 Net gains (losses) on extinguishment of debt - 1 - - 1 Revenues of consolidated VIEs - - ( 72 ) - ( 72 ) Inter-segment revenues (2) 20 41 4 ( 65 ) - Total revenues 77 73 ( 46 ) ( 66 ) 38 Losses and loss adjustment 169 - ( 11 ) - 158 Amortization of deferred acquisition costs and operating 4 47 8 1 60 Interest - 41 116 - 157 Expenses of consolidated VIEs - - 9 - 9 Inter-segment expenses (2) 31 18 17 ( 66 ) - Total expenses 204 106 139 ( 65 ) 384 Income (loss) from continuing operations before income taxes $ ( 127 ) $ ( 33 ) $ ( 185 ) $ ( 1 ) $ ( 346 ) Identifiable assets per segment $ 2,379 $ 564 $ 978 $ ( 1,005 ) (3) $ 2,916 Assets held for sale - - - - 74 Total identifiable assets $ 2,379 $ 564 $ 978 $ ( 1,005 ) $ 2,990 (1) - Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). (2) - Primarily represents intercompany service charges and intercompany net investment income and expenses. (3) - Consists principally of intercompany reinsurance balances. Nine Months Ended September 30, 2022 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 24 $ 3 $ 26 $ - $ 53 Net gains (losses) on financial instruments at fair value and foreign exchange ( 43 ) 111 ( 17 ) - 51 Net gains (losses) on extinguishment of debt - 5 - ( 1 ) 4 Revenues of consolidated VIEs - - ( 11 ) - ( 11 ) Inter-segment revenues (2) 20 43 7 ( 70 ) - Total revenues 1 162 5 ( 71 ) 97 Losses and loss adjustment 152 - ( 95 ) - 57 Amortization of deferred acquisition costs and operating 6 35 8 - 49 Interest - 42 88 - 130 Expenses of consolidated VIEs - - 5 - 5 Inter-segment expenses (2) 33 17 20 ( 70 ) - Total expenses 191 94 26 ( 70 ) 241 Income (loss) from continuing operations before income taxes $ ( 190 ) $ 68 $ ( 21 ) $ ( 1 ) $ ( 144 ) (1) - Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). (2) - Primarily represents intercompany service charges and intercompany net investment income and expenses. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, In millions except per share amounts 2023 2022 2023 2022 Basic and diluted earnings per share: Net income (loss) from continuing operations available to common shareholders $ ( 185 ) $ ( 35 ) $ ( 346 ) $ ( 144 ) Income (loss) from discontinued operations, net of income taxes ( 1 ) 1 ( 2 ) 1 Less: Net income (loss) from discontinued operations attributable to noncontrolling interests ( 1 ) - 5 - Net income (loss) from discontinued operations attributable to MBIA Inc. - 1 ( 7 ) 1 Net income (loss) attributable to MBIA Inc. $ ( 185 ) $ ( 34 ) $ ( 353 ) $ ( 143 ) Basic and diluted weighted average shares (1) 47.0 49.9 48.7 49.8 Net income (loss) per common share attributable to MBIA Inc. - basic and diluted: Continuing operations $ ( 3.93 ) $ ( 0.68 ) $ ( 7.10 ) $ ( 2.88 ) Discontinued operations ( 0.01 ) 0.01 ( 0.15 ) 0.01 Net income (loss) per share attributable to MBIA Inc. - basic and diluted $ ( 3.94 ) $ ( 0.67 ) $ ( 7.25 ) $ ( 2.87 ) Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect 4.3 5.0 4.3 5.0 (1) - Includes approximately 1 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the three and nine months ended September 30, 2023 and 2022 . |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Changes In The Components Of AOCI | The following table presents the changes in the components of AOCI for the nine months ended September 30, 2023: In millions Unrealized Gains (Losses) on AFS Securities, Net Foreign Currency Translation, Net Instrument- Specific Credit Risk of Liabilities Measured at Fair Value, Net Total Balance, December 31, 2022 $ ( 234 ) $ ( 4 ) $ ( 45 ) $ ( 283 ) Other comprehensive income (loss) before reclassifications ( 37 ) - ( 4 ) ( 41 ) Amounts reclassified from AOCI 16 - 45 61 Net period other comprehensive income (loss) ( 21 ) - 41 20 Balance, September 30, 2023 $ ( 255 ) $ ( 4 ) $ ( 4 ) $ ( 263 ) |
Reclassifications From AOCI | The following table presents the details of the reclassifications from AOCI for the three and nine months ended September 30, 2023 and 2022: In millions Amounts Reclassified from AOCI Three Months Ended September 30, Nine Months Ended September 30, Details about AOCI Components 2023 2022 2023 2022 Affected Line Item on the Unrealized gains (losses) on AFS securities: Realized gains (losses) on sale of securities $ ( 3 ) $ 3 $ ( 16 ) $ 5 Net realized investment gains (losses) Instrument-specific credit risk of liabilities: Deconsolidation of VIEs 1 - ( 20 ) - Other net realized gains (losses) - VIE Settlement of liabilities ( 12 ) ( 23 ) ( 25 ) ( 11 ) Net gains (losses) on financial instruments at Total reclassifications for the period $ ( 14 ) $ ( 20 ) $ ( 61 ) $ ( 6 ) Net income (loss) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Operating Leases Of Lessee Disclosure | The following table provides information about the Company’s leases as of September 30, 2023: $ in millions As of September 30, 2023 Balance Sheet Location Right-of-use asset $ 16 Other assets Lease liability $ 16 Other liabilities Weighted average remaining lease term (years) 6.9 Discount rate used for operating leases 7.5 % Total future minimum lease payments $ 21 |
Business Developments And Ris_3
Business Developments And Risks And Uncertainties (Narrative) (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 01, 2023 USD ($) | Jan. 01, 2023 USD ($) | Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) Segments | Jun. 26, 2023 USD ($) | |
Business Acquisition [Line Items] | |||||
Number of operating segments | Segments | 3 | ||||
Correction of error income (loss) from discontinued operations, net of tax | $ 18 | ||||
Noncontrolling Interest [Member] | |||||
Business Acquisition [Line Items] | |||||
Correction of error income (loss) from discontinued operations, net of tax | $ 8 | ||||
Puerto Rico Electric Power Authority [Member] | |||||
Business Acquisition [Line Items] | |||||
Outstanding bonds | $ 808 | ||||
Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Liabilities Subject to Compromise, Provision for Expected and Allowed Claims | $ 7,600 | ||||
Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Liabilities Subject to Compromise, Provision for Expected and Allowed Claims | $ 2,400 | ||||
Puerto Rico [Member] | National Public Finance Guarantee Corporation [Member] | |||||
Business Acquisition [Line Items] | |||||
Claims payments | $ 119 | $ 18 |
Business Developments and Ris_4
Business Developments and Risks and Uncertainties (Schedule of Discontinued Operations Components of Assets and Liabilities Held for Sale) (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Assets held for sale | ||
Cash | $ 1 | $ 12 |
Accounts receivable | 18 | 24 |
Goodwill | 90 | 90 |
Other assets | 11 | 8 |
Loss on disposal group | (46) | (54) |
Total assets held for sale | 74 | 80 |
Liabilities held for sale | ||
Accounts payable | 8 | 12 |
Debt | 37 | 30 |
Accrued expenses and other | 20 | 19 |
Total liabilities held for sale | $ 65 | $ 61 |
Business Developments and Ris_5
Business Developments and Risks and Uncertainties (Schedule of Results of Operations from Discontinued Operation) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Revenues | $ 29 | $ 23 | $ 92 | $ 23 |
Cost of sales | 15 | 11 | 46 | 11 |
Total revenues from discontinued operations | 14 | 12 | 46 | 12 |
Expenses: | ||||
Operating | 16 | 11 | 53 | 11 |
Interest | 1 | 0 | 3 | 0 |
Increase (decrease) on loss on disposal group | (2) | 0 | (8) | 0 |
Total expenses from discontinued operations | 15 | 11 | 48 | 11 |
Income (loss) before income taxes from discontinued operations | (1) | 1 | (2) | 1 |
Provision (benefit) for income taxes from discontinued operations | 0 | 0 | 0 | 0 |
Income (loss) from discontinued operations, net of income taxes | $ (1) | $ 1 | $ (2) | $ 1 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Detail) - Variable Interest Entity, Primary Beneficiary [Member] $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 USD ($) VariableInterestEntities | Jun. 30, 2023 USD ($) VariableInterestEntities | Mar. 31, 2023 USD ($) VariableInterestEntities | Sep. 30, 2022 USD ($) VariableInterestEntities | Jun. 30, 2022 VariableInterestEntities | Mar. 31, 2022 VariableInterestEntities | Sep. 30, 2023 VariableInterestEntities | |
Variable Interest Entity [Line Items] | |||||||
Gains (losses) on the consolidation and deconsolidation | $ | $ 0 | ||||||
Structured Finance and International Insurance [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Number of variable interest entities deconsolidated | VariableInterestEntities | 1 | 1 | 1 | 1 | 0 | 0 | |
Number of variable interest entities consolidated | VariableInterestEntities | 1 | 0 | |||||
Structured Finance and International Insurance [Member] | Recorded Due To Credit Losses in AOCI [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Net realized gains (losses) related to deconsolidation | $ | $ (7) | $ (7) | $ (15) |
Variable Interest Entities (Sum
Variable Interest Entities (Summary of Nonconsolidated VIEs Assets and Liabilities) (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | $ 1,607 | $ 1,840 |
Carrying Value of VIE Assets | 2,990 | 3,375 |
Carrying Value of VIE Liabilities | 4,218 | 4,251 |
Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 18 | 75 |
Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 11 | 14 |
Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 27 | 28 |
Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 10 | 12 |
Loss And Loss Adjustment Expense Reserves [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 222 | 282 |
Corporate Asset Backed [Member] | Loss And Loss Adjustment Expense Reserves [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 0 | |
Global Structured Finance [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 1,391 | 1,610 |
Global Structured Finance [Member] | Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 18 | 75 |
Global Structured Finance [Member] | Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 7 | 9 |
Global Structured Finance [Member] | Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 27 | 28 |
Global Structured Finance [Member] | Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 6 | 8 |
Global Structured Finance [Member] | Loss And Loss Adjustment Expense Reserves [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 222 | 282 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 848 | 996 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 18 | 75 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 5 | 6 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 19 | 21 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 3 | 4 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Loss And Loss Adjustment Expense Reserves [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 219 | 277 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 130 | 164 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 0 | 0 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 0 | 0 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 1 | 0 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 0 | 1 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Loss And Loss Adjustment Expense Reserves [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 3 | 5 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 413 | 450 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 0 | 0 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 2 | 3 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 7 | 7 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 3 | 3 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Loss And Loss Adjustment Expense Reserves [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 0 | |
Global Public Finance [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 216 | 230 |
Global Public Finance [Member] | Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 0 | 0 |
Global Public Finance [Member] | Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 4 | 5 |
Global Public Finance [Member] | Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 0 | 0 |
Global Public Finance [Member] | Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 4 | 4 |
Global Public Finance [Member] | Loss And Loss Adjustment Expense Reserves [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | $ 0 | $ 0 |
Loss and Loss Adjustment Expe_3
Loss and Loss Adjustment Expense Reserves (Schedule of Losses and Loss Adjustment Expenses Reserves and Recoveries) (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Loss And Lae Reserves [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Loss and loss adjustment expense reserves | [1] | $ 450 | $ 439 |
Insurance Loss Recoverable [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Insurance Loss Recoverable | 177 | 137 | |
Non Variable Interest Entity [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Insurance Loss Recoverable | 177 | 137 | |
Loss and loss adjustment expense reserves | 450 | 439 | |
US Public Finance Insurance [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Insurance Loss Recoverable | 150 | 107 | |
Loss and loss adjustment expense reserves | [1] | 228 | 154 |
International And Structured Finance Insurance [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Insurance Loss Recoverable | 28 | 32 | |
Loss and loss adjustment expense reserves | [1] | 314 | 488 |
International And Structured Finance Insurance [Member] | Non Variable Interest Entity [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Insurance Loss Recoverable | 27 | 30 | |
Loss and loss adjustment expense reserves | [1] | 222 | 285 |
Consolidation Elimination [Member] | International And Structured Finance Insurance [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Insurance Loss Recoverable | (1) | (2) | |
Loss and loss adjustment expense reserves | [1] | $ (92) | $ (203) |
[1] Amounts are net of estimated recoveries of expected future claims. |
Loss and Loss Adjustment Expe_4
Loss and Loss Adjustment Expense Reserves (Loss and LAE Activity) (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Loss And Loss Adjustment Expense Reserves [Line Items] | |||||
Weighted average risk-free rate used to discount claim liability | 4.80% | ||||
Lae [Member] | |||||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||||
Losses and loss adjustment | $ 2 | $ 1 | $ 7 | $ 4 | |
Loss and loss adjustment expense reserves | $ 10 | $ 10 | $ 12 | ||
Changes in Loss and LAE Reserves | one-year |
Loss and Loss Adjustment Expe_5
Loss and Loss Adjustment Expense Reserves (Schedule of Loss and Loss Adjustment Expenses Reserves) (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Changes in unearned premium revenue | $ 26 | $ 35 | |
Loss And Lae Reserves [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Gross loss and LAE reserve, beginning balance | [1] | 439 | |
Loss payments for cases | (210) | ||
Accretion of claim liability discount | 9 | ||
Changes in discount rates | (24) | ||
Changes in assumptions | [2] | 234 | |
Changes in unearned premium revenue | 2 | ||
Gross loss and LAE reserve, ending balance | [1] | $ 450 | |
[1] Amounts are net of estimated recoveries of expected future claims. Includes changes in amount and timing of estimated payments and recoveries. |
Loss and Loss Adjustment Expe_6
Loss and Loss Adjustment Expense Reserves (Schedule of Insurance Loss Recoverable) (Detail) - Insurance Loss Recoverable [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Roll forward of Insurance Loss Recoverable [Line Items] | |
Gross Reserve beginning balance, Insurance loss recoverable | $ 137 |
Collections for Cases | (7) |
Accretion of Recoveries | 3 |
Changes in Discount Rates | 1 |
Changes in Assumptions | 43 |
Gross Reserve ending balance, Insurance loss recoverable | $ 177 |
Loss and Loss Adjustment Expe_7
Loss and Loss Adjustment Expense Reserves (Schedule Of Financial Guarantees And Related Claim Liability) (Detail) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 USD ($) Issue Policy | Dec. 31, 2022 USD ($) Issue Policy | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Number of policies | Policy | 132 | 161 | |
Number of issues | Issue | [1] | 92 | 99 |
Remaining weighted average contract period (in years) | 6 years 3 months 18 days | 6 years 4 months 24 days | |
Principal | [2] | $ 2,668 | $ 3,185 |
Interest | [2] | 2,191 | 2,508 |
Total | [2] | 4,859 | 5,693 |
Gross claim liability | [3] | 653 | 677 |
Less: Gross potential recoveries | [4] | 235 | 198 |
Discount, net | [5] | 147 | 179 |
Net claim liability (recoverable) | 271 | 300 | |
Unearned premium revenue | 17 | 20 | |
Reinsurance recoverable on paid and unpaid losses | [6] | $ 13 | $ 10 |
Caution List Low [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Number of policies | Policy | 36 | 57 | |
Number of issues | Issue | [1] | 13 | 17 |
Remaining weighted average contract period (in years) | 5 years 7 months 6 days | 5 years 8 months 12 days | |
Principal | [2] | $ 1,411 | $ 1,723 |
Interest | [2] | 1,697 | 1,905 |
Total | [2] | 3,108 | 3,628 |
Gross claim liability | [3] | 0 | 0 |
Less: Gross potential recoveries | [4] | 0 | 0 |
Discount, net | [5] | 0 | 0 |
Net claim liability (recoverable) | 0 | 0 | |
Unearned premium revenue | $ 9 | $ 11 | |
Caution List Medium [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Number of policies | Policy | 1 | 3 | |
Number of issues | Issue | [1] | 1 | 2 |
Remaining weighted average contract period (in years) | 3 months 18 days | 2 years 4 months 24 days | |
Principal | [2] | $ 2 | $ 4 |
Interest | [2] | 0 | 1 |
Total | [2] | 2 | 5 |
Gross claim liability | [3] | 0 | 0 |
Less: Gross potential recoveries | [4] | 0 | 0 |
Discount, net | [5] | 0 | 0 |
Net claim liability (recoverable) | 0 | 0 | |
Unearned premium revenue | $ 0 | $ 0 | |
Caution List High [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Number of policies | Policy | 0 | 0 | |
Number of issues | Issue | [1] | 0 | 0 |
Principal | [2] | $ 0 | $ 0 |
Interest | [2] | 0 | 0 |
Total | [2] | 0 | 0 |
Gross claim liability | [3] | 0 | 0 |
Less: Gross potential recoveries | [4] | 0 | 0 |
Discount, net | [5] | 0 | 0 |
Net claim liability (recoverable) | 0 | 0 | |
Unearned premium revenue | $ 0 | $ 0 | |
Classified List [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Number of policies | Policy | 95 | 101 | |
Number of issues | Issue | [1] | 78 | 80 |
Remaining weighted average contract period (in years) | 7 years | 7 years 2 months 12 days | |
Principal | [2] | $ 1,255 | $ 1,458 |
Interest | [2] | 494 | 602 |
Total | [2] | 1,749 | 2,060 |
Gross claim liability | [3] | 653 | 677 |
Less: Gross potential recoveries | [4] | 235 | 198 |
Discount, net | [5] | 147 | 179 |
Net claim liability (recoverable) | 271 | 300 | |
Unearned premium revenue | $ 8 | $ 9 | |
[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. Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA. The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position. Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position. Represents discount related to Gross Claim Liability and Gross Potential Recoveries. Included in "Other assets" on the Company's consolidated balance sheets. |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Percentage of level 3 assets at fair value in total assets measured at fair value value | 6% | 6% | 7% | ||
Percentage of level 3 liabilities at fair value in total liabilities measured at fair value | 85% | 85% | 82% | ||
Gain (loss) on cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option | $ (263) | $ (263) | $ (283) | ||
Instrument-specific credit risk of liabilities measured at fair value, net [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Gain (loss) on cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option | (4) | (4) | $ (45) | ||
Gain (loss) on instrument-specific credit risk recognized in earnings | $ (11) | $ (23) | $ (45) | $ (11) |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |||
Discounted Cash Flow [Member] | Equity Investments [Member] | EBITDA Multiples Discount Rate Hard Asset Values Type Certificate Values [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Fair Value, assets | $ 115 | [1] | $ 115 | [2] | |
Variable Interest Entity Primary Beneficiary [Member] | Variable Interest Entity Notes [Member] | Impact Of Financial Guarantee [Member] | Market Prices Of VIE Assets Adjusted For Financial Guarantees Provided Or Market Prices Of Similar Liabilities [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Fair value, liabilities | 78 | 172 | |||
Variable Interest Entity Primary Beneficiary [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices of Similar Liabilities Adjusted for Financial Guarantees Provided to VIE Obligations [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Fair Value, assets | $ 32 | $ 78 | |||
Variable Interest Entity Primary Beneficiary [Member] | Minimum [Member] | Variable Interest Entity Notes [Member] | Impact Of Financial Guarantee [Member] | Market Prices Of VIE Assets Adjusted For Financial Guarantees Provided Or Market Prices Of Similar Liabilities [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Range percentage | 74% | 34% | |||
Variable Interest Entity Primary Beneficiary [Member] | Minimum [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices of Similar Liabilities Adjusted for Financial Guarantees Provided to VIE Obligations [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Range percentage | 32% | 12% | |||
Variable Interest Entity Primary Beneficiary [Member] | Maximum [Member] | Variable Interest Entity Notes [Member] | Impact Of Financial Guarantee [Member] | Market Prices Of VIE Assets Adjusted For Financial Guarantees Provided Or Market Prices Of Similar Liabilities [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Range percentage | 74% | 82% | |||
Variable Interest Entity Primary Beneficiary [Member] | Maximum [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices of Similar Liabilities Adjusted for Financial Guarantees Provided to VIE Obligations [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Range percentage | 32% | 88% | |||
Variable Interest Entity Primary Beneficiary [Member] | Weighted Average [Member] | Variable Interest Entity Notes [Member] | Impact Of Financial Guarantee [Member] | Market Prices Of VIE Assets Adjusted For Financial Guarantees Provided Or Market Prices Of Similar Liabilities [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Range percentage | 74% | [3] | 68% | [4] | |
Variable Interest Entity Primary Beneficiary [Member] | Weighted Average [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices of Similar Liabilities Adjusted for Financial Guarantees Provided to VIE Obligations [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Range percentage | [3] | 32% | 52% | ||
[1] Range for EBITDA multiples, discount rate, hard asset values and type certificate values reflects their potential variability. Range for EBITDA multiples, discount rate, hard asset values and type certificate values reflects their potential variability. Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Company's Assets And Liabilities Measured At Fair Value On Recurring Basis) (Detail) - Fair Value Measurements Recurring [Member] - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | $ 2,475 | $ 2,890 |
Fair value financial liabilities measured on recurring basis | 149 | 268 |
Money Market Securities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 338 | 234 |
Medium-term Notes [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 37 | 41 |
Equity investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 171 | 172 |
Cash and Cash Equivalents [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 70 | 50 |
Fixed Maturities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 1,836 | 2,270 |
Fixed Maturities [Member] | U S Treasury And Government [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 431 | 517 |
Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 118 | 323 |
Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 22 | 21 |
Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 800 | 797 |
Fixed Maturities [Member] | Residential Mortgage Backed Agency [Member] | Mortgage-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 183 | 207 |
Fixed Maturities [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 34 | 95 |
Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 22 | 24 |
Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 161 | 159 |
Fixed Maturities [Member] | Other Asset Backed [Member] | Asset-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 65 | 127 |
Assets Of Consolidated V I Es [Member] | Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 4 | |
Assets Of Consolidated V I Es [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 11 | 22 |
Assets Of Consolidated V I Es [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 9 | 9 |
Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 1 | 5 |
Assets Of Consolidated V I Es [Member] | Other Asset Backed [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 1 | 7 |
Assets Of Consolidated V I Es [Member] | Loans Receivable and Other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 32 | 78 |
Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 4 | 16 |
Assets Of Consolidated V I Es [Member] | Other [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 2 | 23 |
Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 1 | |
Derivative Liabilities [Member] | Interest rate derivatives [Member] | Non-insured interest rate derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 22 | 49 |
Liabilities Of Consolidated Vies [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 11 | 6 |
Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 78 | 172 |
Fair Value Inputs Level 1 [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 828 | 801 |
Fair value financial liabilities measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Money Market Securities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 338 | 234 |
Fair Value Inputs Level 1 [Member] | Medium-term Notes [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Equity investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 37 | 38 |
Fair Value Inputs Level 1 [Member] | Cash and Cash Equivalents [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 70 | 50 |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 379 | 463 |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | U S Treasury And Government [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 379 | 463 |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Agency [Member] | Mortgage-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Other Asset Backed [Member] | Asset-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Other Asset Backed [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Loans Receivable and Other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 4 | 16 |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Other [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | |
Fair Value Inputs Level 1 [Member] | Derivative Liabilities [Member] | Interest rate derivatives [Member] | Non-insured interest rate derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Liabilities Of Consolidated Vies [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 2 [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 1,497 | 1,873 |
Fair value financial liabilities measured on recurring basis | 23 | 49 |
Fair Value Inputs Level 2 [Member] | Money Market Securities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Medium-term Notes [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Equity investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 19 | 19 |
Fair Value Inputs Level 2 [Member] | Cash and Cash Equivalents [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 1,456 | 1,807 |
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | U S Treasury And Government [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 52 | 54 |
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 118 | 323 |
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 22 | 21 |
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 799 | 797 |
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Agency [Member] | Mortgage-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 183 | 207 |
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 34 | 95 |
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 22 | 24 |
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 161 | 159 |
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Other Asset Backed [Member] | Asset-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 65 | 127 |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 4 | |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 11 | 22 |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 9 | 9 |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 1 | 5 |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Other Asset Backed [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 1 | 7 |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Loans Receivable and Other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Other [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 1 | |
Fair Value Inputs Level 2 [Member] | Derivative Liabilities [Member] | Interest rate derivatives [Member] | Non-insured interest rate derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 22 | 49 |
Fair Value Inputs Level 2 [Member] | Liabilities Of Consolidated Vies [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 150 | 216 |
Fair value financial liabilities measured on recurring basis | 126 | 219 |
Fair Value Inputs Level 3 [Member] | Money Market Securities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Medium-term Notes [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 37 | 41 |
Fair Value Inputs Level 3 [Member] | Equity investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 115 | 115 |
Fair Value Inputs Level 3 [Member] | Cash and Cash Equivalents [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 1 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | U S Treasury And Government [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 1 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Agency [Member] | Mortgage-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Other Asset Backed [Member] | Asset-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Other Asset Backed [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Loans Receivable and Other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 32 | 78 |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Other [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 2 | 23 |
Fair Value Inputs Level 3 [Member] | Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | |
Fair Value Inputs Level 3 [Member] | Derivative Liabilities [Member] | Interest rate derivatives [Member] | Non-insured interest rate derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Liabilities Of Consolidated Vies [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 11 | 6 |
Fair Value Inputs Level 3 [Member] | Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | $ 78 | $ 172 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Fair Value Hierarchy Table Presents The Company's Assets And Liabilities At Fair Value Not Recorded On The Company's Consolidated Balance Sheet) (Detail) - Value Disclosed At Fair Value Not Recorded At Fair Value [Member] - Fair Value Measurements Nonrecurring [Member] - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Carrying Reported Amount Fair Value Disclosure [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Other investments | $ 3 | |
Total assets | 3 | |
Long-term debt | 2,546 | $ 2,428 |
Medium-term notes | 457 | 458 |
Investment agreements | 225 | 233 |
Variable interest entity loans payable | 3 | 2 |
Total liabilities | 3,231 | 3,121 |
Gross liability (recoverable) | 513 | 568 |
Ceded recoverable (liability) | 17 | 15 |
Fair Value [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Other investments | 3 | |
Total assets | 3 | |
Long-term debt | 272 | 330 |
Medium-term notes | 286 | 310 |
Investment agreements | 238 | 257 |
Variable interest entity loans payable | 3 | 2 |
Total liabilities | 799 | 899 |
Gross liability (recoverable) | 764 | 864 |
Ceded recoverable (liability) | 19 | 21 |
Fair Value [Member] | Fair Value Inputs Level 1 [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Other investments | 0 | |
Total assets | 0 | |
Long-term debt | 0 | 0 |
Medium-term notes | 0 | 0 |
Investment agreements | 0 | 0 |
Variable interest entity loans payable | 0 | 0 |
Total liabilities | 0 | 0 |
Gross liability (recoverable) | 0 | 0 |
Ceded recoverable (liability) | 0 | 0 |
Fair Value [Member] | Fair Value Inputs Level 2 [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Other investments | 0 | |
Total assets | 0 | |
Long-term debt | 272 | 330 |
Medium-term notes | 0 | 0 |
Investment agreements | 0 | 0 |
Variable interest entity loans payable | 0 | 0 |
Total liabilities | 272 | 330 |
Gross liability (recoverable) | 0 | 0 |
Ceded recoverable (liability) | 0 | 0 |
Fair Value [Member] | Fair Value Inputs Level 3 [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Other investments | 3 | |
Total assets | 3 | |
Long-term debt | 0 | 0 |
Medium-term notes | 286 | 310 |
Investment agreements | 238 | 257 |
Variable interest entity loans payable | 3 | 2 |
Total liabilities | 527 | 569 |
Gross liability (recoverable) | 764 | 864 |
Ceded recoverable (liability) | $ 19 | $ 21 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - Fair Value Inputs Level 3 [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | $ 188 | $ 148 | $ 216 | $ 104 | |
Total gains/(losses) included in earnings, assets | (7) | 4 | (7) | 1 | |
Unrealized gains/(losses) included in OCI, assets | [1] | 0 | (2) | 0 | (6) |
Purchases, assets | 0 | 102 | 0 | 161 | |
Issuances, assets | 0 | 0 | 0 | 0 | |
Settlements, assets | (2) | (2) | (7) | (10) | |
Sales, assets | (29) | (17) | (53) | (17) | |
Transfers into level 3, assets | 0 | 0 | 1 | 0 | |
Transfers out of level 3, assets | 0 | 0 | 0 | 0 | |
Ending balance, fair value assets | 150 | 233 | 150 | 233 | |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (8) | 2 | (4) | (5) | |
Change in unrealized gains/(losses) for the period included in OCI for Assets still held, assets | [1] | 0 | (3) | 0 | 0 |
Beginning balance, fair value liabilities | 233 | 259 | 219 | 389 | |
Total (gains)/losses included in earnings, liabilities | 11 | 30 | 51 | (16) | |
Unrealized (gains)/losses included in OCI, liabilities | [2] | (12) | (21) | (41) | 11 |
Purchases, liabilities | 0 | 0 | 0 | 0 | |
Issuances, liabilities | 0 | 0 | 62 | 0 | |
Settlements, liabilities | (21) | (52) | (45) | (168) | |
Sales, liabilities | (85) | 0 | (120) | 0 | |
Transfers into Level 3, liabilities | 0 | 0 | 0 | 0 | |
Transfers out of Level 3, liabilities | 0 | 0 | 0 | 0 | |
Ending balance, fair value liabilities | 126 | 216 | 126 | 216 | |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | (2) | (5) | 6 | (32) | |
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held | [2] | 2 | 5 | (1) | 22 |
Loans receivable - residential [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | 70 | 68 | 78 | 77 | |
Total gains/(losses) included in earnings, assets | (7) | 13 | (10) | 8 | |
Unrealized gains/(losses) included in OCI, assets | [1] | 0 | 0 | 0 | 0 |
Purchases, assets | 0 | 0 | 0 | 0 | |
Issuances, assets | 0 | 0 | 0 | 0 | |
Settlements, assets | (2) | (2) | (7) | (6) | |
Sales, assets | (29) | 0 | (29) | 0 | |
Transfers into level 3, assets | 0 | 0 | 0 | 0 | |
Transfers out of level 3, assets | 0 | 0 | 0 | 0 | |
Ending balance, fair value assets | 32 | 79 | 32 | 79 | |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (8) | 11 | (3) | 2 | |
Change in unrealized gains/(losses) for the period included in OCI for Assets still held, assets | [1] | 0 | 0 | 0 | 0 |
Residential Mortgage-Backed Non Agency [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | 55 | 0 | |||
Total gains/(losses) included in earnings, assets | 0 | 0 | |||
Unrealized gains/(losses) included in OCI, assets | [1] | (2) | (6) | ||
Purchases, assets | 1 | 60 | |||
Issuances, assets | 0 | 0 | |||
Settlements, assets | 0 | 0 | |||
Sales, assets | (17) | (17) | |||
Transfers into level 3, assets | 0 | 0 | |||
Transfers out of level 3, assets | 0 | 0 | |||
Ending balance, fair value assets | 37 | 37 | |||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 0 | 0 | |||
Change in unrealized gains/(losses) for the period included in OCI for Assets still held, assets | [1] | (3) | 0 | ||
Corporate Obligations [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | 1 | 0 | |||
Total gains/(losses) included in earnings, assets | 0 | 0 | |||
Unrealized gains/(losses) included in OCI, assets | [1] | 0 | 0 | ||
Purchases, assets | 0 | 0 | |||
Issuances, assets | 0 | 0 | |||
Settlements, assets | 0 | 0 | |||
Sales, assets | 0 | 0 | |||
Transfers into level 3, assets | 0 | 1 | |||
Transfers out of level 3, assets | 0 | 0 | |||
Ending balance, fair value assets | 1 | 1 | |||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 0 | 0 | |||
Change in unrealized gains/(losses) for the period included in OCI for Assets still held, assets | [1] | 0 | 0 | ||
Equity investments [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | 115 | 0 | 115 | 0 | |
Total gains/(losses) included in earnings, assets | 0 | 0 | 0 | 0 | |
Unrealized gains/(losses) included in OCI, assets | [1] | 0 | 0 | 0 | 0 |
Purchases, assets | 0 | 101 | 0 | 101 | |
Issuances, assets | 0 | 0 | 0 | 0 | |
Settlements, assets | 0 | 0 | 0 | 0 | |
Sales, assets | 0 | 0 | 0 | 0 | |
Transfers into level 3, assets | 0 | 0 | 0 | 0 | |
Transfers out of level 3, assets | 0 | 0 | 0 | 0 | |
Ending balance, fair value assets | 115 | 101 | 115 | 101 | |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 0 | 0 | 0 | 0 | |
Change in unrealized gains/(losses) for the period included in OCI for Assets still held, assets | [1] | 0 | 0 | 0 | 0 |
Collateralized Debt Obligations [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | 4 | ||||
Total gains/(losses) included in earnings, assets | 0 | ||||
Unrealized gains/(losses) included in OCI, assets | [1] | 0 | |||
Purchases, assets | 0 | ||||
Issuances, assets | 0 | ||||
Settlements, assets | (4) | ||||
Sales, assets | 0 | ||||
Transfers into level 3, assets | 0 | ||||
Transfers out of level 3, assets | 0 | ||||
Ending balance, fair value assets | 0 | 0 | |||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 0 | ||||
Change in unrealized gains/(losses) for the period included in OCI for Assets still held, assets | [1] | 0 | |||
Medium Term Notes [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value liabilities | 38 | 42 | 41 | 98 | |
Total (gains)/losses included in earnings, liabilities | (3) | (8) | (2) | (29) | |
Unrealized (gains)/losses included in OCI, liabilities | [2] | 2 | 4 | (2) | 17 |
Purchases, liabilities | 0 | 0 | 0 | 0 | |
Issuances, liabilities | 0 | 0 | 0 | 0 | |
Settlements, liabilities | 0 | 0 | (48) | ||
Sales, liabilities | 0 | 0 | 0 | 0 | |
Transfers into Level 3, liabilities | 0 | 0 | 0 | 0 | |
Transfers out of Level 3, liabilities | 0 | 0 | 0 | 0 | |
Ending balance, fair value liabilities | 37 | 38 | 37 | 38 | |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | (3) | (8) | (2) | (28) | |
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held | [2] | 2 | 4 | (2) | 18 |
Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value liabilities | 183 | 217 | 172 | 291 | |
Total (gains)/losses included in earnings, liabilities | 15 | 33 | 48 | 8 | |
Unrealized (gains)/losses included in OCI, liabilities | [2] | (14) | (25) | (39) | (6) |
Purchases, liabilities | 0 | 0 | 0 | 0 | |
Issuances, liabilities | 0 | 0 | 62 | 0 | |
Settlements, liabilities | (21) | (52) | (45) | (120) | |
Sales, liabilities | (85) | 0 | (120) | 0 | |
Transfers into Level 3, liabilities | 0 | 0 | 0 | 0 | |
Transfers out of Level 3, liabilities | 0 | 0 | 0 | 0 | |
Ending balance, fair value liabilities | 78 | 173 | 78 | 173 | |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 2 | (2) | 3 | (9) | |
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held | [2] | 0 | 1 | 1 | 4 |
Currency Derivatives [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | 9 | 9 | |||
Total gains/(losses) included in earnings, assets | (9) | (9) | |||
Unrealized gains/(losses) included in OCI, assets | [1] | 0 | 0 | ||
Purchases, assets | 0 | 0 | |||
Issuances, assets | 0 | 0 | |||
Settlements, assets | 0 | 0 | |||
Sales, assets | 0 | 0 | |||
Transfers into level 3, assets | 0 | 0 | |||
Transfers out of level 3, assets | 0 | 0 | |||
Ending balance, fair value assets | 0 | 0 | |||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (9) | (9) | |||
Change in unrealized gains/(losses) for the period included in OCI for Assets still held, assets | [1] | 0 | 0 | ||
Beginning balance, fair value liabilities | 12 | 0 | 6 | 0 | |
Total (gains)/losses included in earnings, liabilities | (1) | 5 | 5 | 5 | |
Unrealized (gains)/losses included in OCI, liabilities | [2] | 0 | 0 | 0 | 0 |
Purchases, liabilities | 0 | 0 | 0 | 0 | |
Issuances, liabilities | 0 | 0 | 0 | 0 | |
Settlements, liabilities | 0 | 0 | 0 | 0 | |
Sales, liabilities | 0 | 0 | 0 | 0 | |
Transfers into Level 3, liabilities | 0 | 0 | 0 | 0 | |
Transfers out of Level 3, liabilities | 0 | 0 | 0 | 0 | |
Ending balance, fair value liabilities | 11 | 5 | 11 | 5 | |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | (1) | 5 | 5 | 5 | |
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held | [2] | 0 | 0 | 0 | 0 |
Other Assets [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | 2 | 16 | 23 | 14 | |
Total gains/(losses) included in earnings, assets | 0 | 0 | 3 | 2 | |
Unrealized gains/(losses) included in OCI, assets | [1] | 0 | 0 | 0 | 0 |
Purchases, assets | 0 | 0 | 0 | 0 | |
Issuances, assets | 0 | 0 | 0 | 0 | |
Settlements, assets | 0 | 0 | 0 | 0 | |
Sales, assets | 0 | 0 | (24) | 0 | |
Transfers into level 3, assets | 0 | 0 | 0 | 0 | |
Transfers out of level 3, assets | 0 | 0 | 0 | 0 | |
Ending balance, fair value assets | 2 | 16 | 2 | 16 | |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 0 | 0 | 1 | 2 | |
Change in unrealized gains/(losses) for the period included in OCI for Assets still held, assets | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
[1] Reported within the "Unrealized gains (losses) on available-for-sale securities" on MBIA's Consolidated Statement of Comprehensive Income/Loss. Reported within the "Instrument-specific credit risk of liabilities measured at fair value" on MBIA's Consolidated Statement of Comprehensive Income/Loss. |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments (Realized And Unrealized Gains And Losses Included In Earnings Pertaining To Level 3 Assets And Liabilities) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | $ 21 | $ 25 | $ 20 | $ 51 |
Fair Value, Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Realized Investment Gains (Losses) | Realized Investment Gains (Losses) | Realized Investment Gains (Losses) | Realized Investment Gains (Losses) |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | $ (23) | $ (36) | $ (47) | $ (16) |
Other net realized gains (losses) | (7) | 5 | (25) | 5 |
Fair Value Inputs Level 3 [Member] | Total Gains (Losses) Included in Earnings [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 3 | 8 | 2 | 29 |
Total revenues | (18) | (26) | (58) | 17 |
Fair Value Inputs Level 3 [Member] | Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 3 | 8 | 2 | 28 |
Total revenues | (6) | 7 | (10) | 27 |
Fair Value Inputs Level 3 [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Total Gains (Losses) Included in Earnings [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | (14) | (34) | (32) | (12) |
Other net realized gains (losses) | (7) | 0 | (28) | 0 |
Fair Value Inputs Level 3 [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | (9) | (1) | (12) | (1) |
Other net realized gains (losses) | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments (Gains And Losses On Fair Value Option Included In The Company's Consolidated Statements Of Operations) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | $ 21 | $ 25 | $ 20 | $ 51 | |
Non Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 21 | 25 | 20 | 51 | |
Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | (23) | (36) | (47) | (16) | |
Investments Carried At Fair Value [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [1] | (2) | (7) | 1 | (33) |
Fixed Maturity Securities Held At Fair Value - VIE [Member] | Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [2] | 0 | (1) | (4) | (4) |
Loans Receivable and Other Instruments at Fair Value [Member] | Variable Interest Entity [Member] | Residential Mortgage Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [3] | (7) | 13 | (10) | 8 |
Other Assets [Member] | Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [2] | 0 | 0 | 3 | 2 |
Medium Term Notes [Member] | Non Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [1] | 3 | 8 | 2 | 29 |
Variable Interest Entity Notes [Member] | Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [2] | $ (15) | $ (35) | $ (48) | $ (12) |
[1] Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange" on MBIA's consolidated statements of operations. Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" and "Other net realized gains (losses)-VIE" on MBIA's consolidated statements of operations. Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" on MBIA's consolidated statements of operations. |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments (Aggregate Fair Value And Remaining Contractual Principal Balance Outstanding On Fair Value Option) (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Residential Mortgage Loans [Member] | Loans Receivable [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Loans receivable and other instruments, contractual outstanding principal | $ 18 | $ 39 |
Loans receivable and other instruments, 90 days or more past due, contractual outstanding principal | 57 | 149 |
Loans receivable and other instruments, fair value | 18 | 39 |
Loans receivable and other instruments, 90 days or more past due, fair value | 14 | 39 |
Loans receivable and other instruments, difference | 0 | 0 |
Loans receivable and other instruments, 90 days or more past due, difference | 43 | 110 |
Total Loans Receivable and Other Instruments [Member] | Loans Receivable [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Loans receivable and other instruments, contractual outstanding principal | 75 | 188 |
Loans receivable and other instruments, fair value | 32 | 78 |
Loans receivable and other instruments, difference | 43 | 110 |
Variable Interest Entity Notes [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Long-term debt instruments, contractual outstanding principal | 329 | 780 |
Long-term debt instruments, fair value | 78 | 172 |
Long-term debt instruments, difference | 251 | 608 |
Medium Term Notes [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Long-term debt instruments, contractual outstanding principal | 53 | 53 |
Long-term debt instruments, fair value | 37 | 41 |
Long-term debt instruments, difference | $ 16 | $ 12 |
Investments (Narrative) (Detail
Investments (Narrative) (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) Security | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) Security | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) Security | |
Schedule Of Investments [Line Items] | |||||
Fair value of securities on deposit with various regulatory authorities | $ 10 | $ 10 | $ 10 | ||
Number of securities in unrealized loss position for a continuous 12 month period | Security | 589 | 589 | 210 | ||
Rate that a security's fair value is below book value | 5% | 5% | 5% | ||
Increase decrease in other net realized (gains) losses | $ 30 | $ 13 | |||
Asset Pledged as Collateral [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair value of securities pledged as collateral | $ 209 | $ 209 | $ 251 | ||
Securities In Unrealized Loss Position [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Weighted average contractual maturity period in years for securities in an unrealized loss position | 13 years | 14 years | |||
Increase decrease in other net realized (gains) losses | $ 8 | $ 2 | $ 8 | $ 21 | |
Fair Value Below Book Value Greater Than Five Percent [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Number of securities in unrealized loss position for a continuous 12 month period | Security | 509 | 509 | 190 |
Investments (Amortized Cost And
Investments (Amortized Cost And Fair Value Of Available-For-Sale and Held-To-Maturity Investment Portfolios) (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
U S Treasury And Government [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | $ 462 | $ 541 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 1 | 5 |
Gross unrealized losses | (41) | (38) |
Total available-for-sale, fair value | 422 | 508 |
US States And Political Subdivisions [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 131 | 173 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 1 | 2 |
Gross unrealized losses | (15) | (11) |
Total available-for-sale, fair value | 117 | 164 |
Foreign Governments [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 25 | 23 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 1 | 0 |
Gross unrealized losses | (4) | (3) |
Total available-for-sale, fair value | 22 | 20 |
Corporate Obligations [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 884 | 862 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 0 | 1 |
Gross unrealized losses | (158) | (148) |
Total available-for-sale, fair value | 726 | 715 |
Residential Mortgage-Backed Agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 197 | 217 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (26) | (22) |
Total available-for-sale, fair value | 171 | 195 |
Residential Mortgage-Backed Non-Agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 33 | 96 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 0 | 3 |
Gross unrealized losses | (7) | (11) |
Total available-for-sale, fair value | 26 | 88 |
Commercial Mortgage-Backed [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 22 | 24 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1) | (1) |
Total available-for-sale, fair value | 21 | 23 |
Collateralized Debt Obligations [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 114 | 117 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 1 | 0 |
Gross unrealized losses | (2) | (5) |
Total available-for-sale, fair value | 113 | 112 |
Other Asset-Backed [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 46 | 110 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (3) | (4) |
Total available-for-sale, fair value | 43 | 106 |
Fixed Maturities [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 1,914 | 2,163 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 4 | 11 |
Gross unrealized losses | (257) | (243) |
Total available-for-sale, fair value | $ 1,661 | $ 1,931 |
Investments (Distribution By Co
Investments (Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments) (Detail) - Fixed Maturities [Member] - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Available For Sale Securities [Abstract] | ||
Due in one year or less | $ 172 | |
Due after one year through five years | 379 | |
Due after five years through ten years | 280 | |
Due after ten years | 671 | |
Mortgage-backed and asset-backed | 412 | |
Total fixed-maturity investments | 1,914 | |
Due in one year or less | 172 | |
Due after one year through five years | 364 | |
Due after five years through ten years | 233 | |
Due after ten years | 518 | |
Mortgage-backed and asset-backed | 374 | |
Total fixed-maturity investments | $ 1,661 | $ 1,931 |
Investments (Gross Unrealized L
Investments (Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments) (Detail) - Fixed Maturities [Member] - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | $ 348 | $ 1,165 |
Less than 12 months, unrealized losses | (12) | (177) |
12 months or longer, fair value | 1,054 | 323 |
12 months or longer, unrealized losses | (245) | (66) |
Total, fair value | 1,402 | 1,488 |
Tota, unrealized losses | (257) | (243) |
U.S. Treasury and government agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 64 | 266 |
Less than 12 months, unrealized losses | (3) | (34) |
12 months or longer, fair value | 196 | 29 |
12 months or longer, unrealized losses | (38) | (4) |
Total, fair value | 260 | 295 |
Tota, unrealized losses | (41) | (38) |
State and municipal bonds [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 48 | 92 |
Less than 12 months, unrealized losses | (3) | (10) |
12 months or longer, fair value | 54 | 1 |
12 months or longer, unrealized losses | (12) | (1) |
Total, fair value | 102 | 93 |
Tota, unrealized losses | (15) | (11) |
Foreign Governments [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 5 | 9 |
Less than 12 months, unrealized losses | 0 | (3) |
12 months or longer, fair value | 8 | 0 |
12 months or longer, unrealized losses | (4) | 0 |
Total, fair value | 13 | 9 |
Tota, unrealized losses | (4) | (3) |
Corporate Obligations [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 192 | 508 |
Less than 12 months, unrealized losses | (5) | (106) |
12 months or longer, fair value | 500 | 141 |
12 months or longer, unrealized losses | (153) | (42) |
Total, fair value | 692 | 649 |
Tota, unrealized losses | (158) | (148) |
Residential Mortgage backed Agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 13 | 112 |
Less than 12 months, unrealized losses | 0 | (9) |
12 months or longer, fair value | 132 | 65 |
12 months or longer, unrealized losses | (26) | (13) |
Total, fair value | 145 | 177 |
Tota, unrealized losses | (26) | (22) |
Residential Mortgage Backed Non Agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 3 | 65 |
Less than 12 months, unrealized losses | 0 | (10) |
12 months or longer, fair value | 22 | 2 |
12 months or longer, unrealized losses | (7) | (1) |
Total, fair value | 25 | 67 |
Tota, unrealized losses | (7) | (11) |
Commercial mortgage backed Securities [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 11 | 18 |
Less than 12 months, unrealized losses | (1) | (1) |
12 months or longer, fair value | 7 | 1 |
12 months or longer, unrealized losses | 0 | 0 |
Total, fair value | 18 | 19 |
Tota, unrealized losses | (1) | (1) |
Collateralized debt obligations [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 9 | 51 |
Less than 12 months, unrealized losses | 0 | (1) |
12 months or longer, fair value | 101 | 60 |
12 months or longer, unrealized losses | (2) | (4) |
Total, fair value | 110 | 111 |
Tota, unrealized losses | (2) | (5) |
Other asset backed [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 3 | 44 |
Less than 12 months, unrealized losses | 0 | (3) |
12 months or longer, fair value | 34 | 24 |
12 months or longer, unrealized losses | (3) | (1) |
Total, fair value | 37 | 68 |
Tota, unrealized losses | $ (3) | $ (4) |
Investments (Distribution Of Se
Investments (Distribution Of Securities By Percentage Of Fair Value Below Book Value By More Than 5% For A Continuous Twelve Month Period Or Longer) (Detail) - Unrealized loss position > 12 months [Member] $ in Millions | Sep. 30, 2023 USD ($) Security |
> 5% To 15% [Member] | |
Available For Sale Securities [Abstract] | |
Number of securities | Security | 194 |
Book Value | $ 336 |
Fair Value | $ 304 |
Held To Maturity Securities [Abstract] | |
Percentage Of Fair Value Below Book Value Minimum | 5% |
Percentage Of Fair Value Below Book Value Maximum | 15% |
> 15% To 25% [Member] | |
Available For Sale Securities [Abstract] | |
Number of securities | Security | 153 |
Book Value | $ 386 |
Fair Value | $ 309 |
Held To Maturity Securities [Abstract] | |
Percentage Of Fair Value Below Book Value Minimum | 15% |
Percentage Of Fair Value Below Book Value Maximum | 25% |
> 25% To 50% [Member] | |
Available For Sale Securities [Abstract] | |
Number of securities | Security | 159 |
Book Value | $ 373 |
Fair Value | $ 244 |
Held To Maturity Securities [Abstract] | |
Percentage Of Fair Value Below Book Value Minimum | 25% |
Percentage Of Fair Value Below Book Value Maximum | 50% |
> 50% [Member] | |
Available For Sale Securities [Abstract] | |
Number of securities | Security | 3 |
Book Value | $ 5 |
Fair Value | $ 2 |
Held To Maturity Securities [Abstract] | |
Percentage Of Fair Value Below Book Value Minimum | 50% |
Greater Than 5% [Member] | |
Available For Sale Securities [Abstract] | |
Number of securities | Security | 509 |
Book Value | $ 1,100 |
Fair Value | $ 859 |
Investments (Summary of Allowan
Investments (Summary of Allowance for Credit Losses on AFS Investments) (Detail) - Accounting Standards Update 2016-13 [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | $ 3 | $ 0 |
Additions not previously recorded | 0 | 3 |
Additions arising from PCD Assets | 0 | 0 |
Reductions from Securities Sold | 0 | 0 |
Reductions – Intent to sell or MLTN | 3 | 3 |
Change in Allowance Previously Recorded | 0 | 0 |
Write- Offs | 0 | 0 |
Recoveries | 0 | 0 |
Ending balance | 0 | 0 |
Corporate Obligations [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 3 | 0 |
Additions not previously recorded | 0 | 3 |
Additions arising from PCD Assets | 0 | 0 |
Reductions from Securities Sold | 0 | 0 |
Reductions – Intent to sell or MLTN | 3 | 3 |
Change in Allowance Previously Recorded | 0 | 0 |
Write- Offs | 0 | 0 |
Recoveries | 0 | 0 |
Ending balance | $ 0 | $ 0 |
Investments (Securities Held In
Investments (Securities Held In Unrealized Loss Position And Insured By Financial Guarantor) (Detail) - Financial Guarantee [Member] $ in Millions | Sep. 30, 2023 USD ($) | |
Schedule Of Investments [Line Items] | ||
Fair value | $ 100 | |
Unrealized loss | (47) | |
Insurance loss reserve | 20 | [1] |
Mortgage-backed [Member] | ||
Schedule Of Investments [Line Items] | ||
Fair value | 16 | |
Unrealized loss | (5) | |
Insurance loss reserve | 20 | [1] |
Corporate Obligations [Member] | ||
Schedule Of Investments [Line Items] | ||
Fair value | 77 | |
Unrealized loss | (42) | |
Insurance loss reserve | 0 | [1] |
Other [Member] | ||
Schedule Of Investments [Line Items] | ||
Fair value | 7 | |
Unrealized loss | 0 | |
Insurance loss reserve | $ 0 | [1] |
[1] Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured and are discounted using a discount rate equal to the risk-free rate applicable to the currency and weighted average remaining life of the insurance contract and may differ from the fair value. |
Investments (Net Realized Gains
Investments (Net Realized Gains (Losses) From Sales Of Available-For-Sale Securities) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments [Abstract] | ||||
Proceeds from sales | $ 108 | $ 339 | $ 380 | $ 859 |
Available For Sale Securities Realized Gain Loss [Abstract] | ||||
Gross realized gains | 0 | 2 | 1 | 3 |
Gross realized losses | $ (13) | $ (17) | $ (24) | $ (42) |
Investments (Portion Of Unreali
Investments (Portion Of Unrealized Gains And Losses On Equity Investments Held) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | $ (23) | $ (37) | ||
Equity and Trading securities [Member] | Net gains (losses) recognized during the period on equity and trading securities [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | $ (1) | $ (3) | 2 | (31) |
Equity and Trading securities [Member] | Net gains (losses) recognized during the period on equity and trading securities sold during the period [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | (1) | (6) | (1) | (6) |
Equity and Trading securities [Member] | Unrealized gains (losses) recognized during the period on equity and trading securities still held at the reporting date [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | $ 0 | $ 3 | $ 3 | $ (25) |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Detail) $ in Millions | Sep. 30, 2023 USD ($) CreditSupportAnnex | Dec. 31, 2022 USD ($) CreditSupportAnnex |
Derivative [Line Items] | ||
Cash collateral posted to derivative counterparties | $ 0 | $ 0 |
Securities posted as collateral to derivative counterparties | $ 40 | $ 73 |
Number of credit support annexes | CreditSupportAnnex | 1 | 1 |
Fair value of credit support annexes | $ (1) | $ (1) |
Derivative Instruments (Credit
Derivative Instruments (Credit Derivatives Sold) (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Weighted average remaining expected maturity | 13 years 6 months | 13 years 8 months 12 days |
Insurance Operations [Member] | ||
Derivative [Line Items] | ||
Total fair value of credit derivatives | $ (1) | $ 0 |
Insurance Operations [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 1,283 | 1,350 |
Total fair value of credit derivatives | (1) | 0 |
Credit Rating Aaa [Member] | Insurance Operations [Member] | ||
Derivative [Line Items] | ||
Total fair value of credit derivatives | 0 | 0 |
Credit Rating Aaa [Member] | Insurance Operations [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | ||
Credit Rating Aa [Member] | Insurance Operations [Member] | ||
Derivative [Line Items] | ||
Total fair value of credit derivatives | 0 | 0 |
Credit Rating Aa [Member] | Insurance Operations [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 43 | 50 |
Credit Rating A [Member] | Insurance Operations [Member] | ||
Derivative [Line Items] | ||
Total fair value of credit derivatives | 0 | 0 |
Credit Rating A [Member] | Insurance Operations [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 970 | 1,013 |
Credit Rating Bbb [Member] | Insurance Operations [Member] | ||
Derivative [Line Items] | ||
Total fair value of credit derivatives | 0 | 0 |
Credit Rating Bbb [Member] | Insurance Operations [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 210 | 227 |
Credit Rating Below Investment Grade [Member] | Insurance Operations [Member] | ||
Derivative [Line Items] | ||
Total fair value of credit derivatives | (1) | 0 |
Credit Rating Below Investment Grade [Member] | Insurance Operations [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 60 | $ 60 |
Derivative Instruments (Total F
Derivative Instruments (Total Fair Value Of Company's Derivative Assets And Liabilities By Instrument And Balance Sheet Location, Before Counterparty Netting) (Detail) - Not Designated as Hedging Instrument [Member] - Derivative Instrument [Member] - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | ||
Derivative [Line Items] | ||||
Derivative notional amount | $ 1,812 | $ 1,960 | ||
Derivative Assets, Not designated, Fair Value | 1 | [1] | 1 | [2] |
Derivative Liabilities, Not designated, Fair Value | (34) | [1] | (57) | [2] |
Insured swaps [Member] | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 1,283 | 1,350 | ||
Insured swaps [Member] | Other assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Assets, Not designated, Fair Value | 0 | [1] | 0 | [2] |
Insured swaps [Member] | Derivative liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liabilities, Not designated, Fair Value | (1) | [1] | 0 | [2] |
Interest rate swaps [Member] | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 323 | 380 | ||
Interest rate swaps [Member] | Other assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Assets, Not designated, Fair Value | 0 | [1] | 0 | [2] |
Interest rate swaps [Member] | Derivative liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liabilities, Not designated, Fair Value | (22) | [1] | (49) | [2] |
Interest rate swaps-embedded [Member] | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 193 | 194 | ||
Interest rate swaps-embedded [Member] | Medium-term notes [Member] | ||||
Derivative [Line Items] | ||||
Derivative Assets, Not designated, Fair Value | 1 | [1] | 1 | [2] |
Derivative Liabilities, Not designated, Fair Value | 0 | [1] | (2) | [2] |
Currency swaps-VIE [Member] | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 13 | 36 | ||
Currency swaps-VIE [Member] | Other assets-VIE [Member] | ||||
Derivative [Line Items] | ||||
Derivative Assets, Not designated, Fair Value | 0 | [1] | 0 | [2] |
Currency swaps-VIE [Member] | Derivative liabilities-VIE [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liabilities, Not designated, Fair Value | $ (11) | [1] | $ (6) | [2] |
[1] In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Company’s embedded derivative instruments is determined by the location of the related host contract. In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Company’s embedded derivative instruments is determined by the location of the related host contract. |
Derivative Instruments (Effect
Derivative Instruments (Effect Of Derivative Instruments On Consolidated Statements Of Operations) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | $ 22 | $ 9 | $ 17 | $ 66 |
Insured swaps [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | 0 | 1 | ||
Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | 20 | 23 | 21 | 79 |
Currency swaps-VIE [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | $ 2 | $ (14) | $ (4) | $ (14) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) $ in Millions | Aug. 16, 2022 | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Non Variable Interest Entities [Line Items] | |||
NOL carryforward | $ 4,100 | ||
Foreign tax credit | 58 | ||
Unrecognized Tax Benefits | 0 | $ 0 | |
Valuation allowance on net deferred tax asset | $ 1,200 | $ 1,200 | |
Effective income tax rate reconciliation, alternative minimum tax on the book income of large corporations, percent | 15 | ||
Effective income tax rate reconciliation, excise tax on most stock buybacks, percent. | 1 |
Income Taxes (Income Taxes And
Income Taxes (Income Taxes And Related Effective Tax Rates) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disclosure Income Taxes Income Taxes And Related Effective Tax Rates [Abstract] | ||||
Income (loss) from continuing operations before income taxes | $ (185) | $ (35) | $ (346) | $ (144) |
Provision (benefit) for income taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Effective tax rate | 0% | 0% | 0% | 0% |
Business Segments (Narrative) (
Business Segments (Narrative) (Detail) | 9 Months Ended |
Sep. 30, 2023 Segments | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
Business Segments (Summary Of C
Business Segments (Summary Of Company's Segment Results) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | ||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | $ 17 | $ 23 | $ 89 | $ 53 | |
Net gains (losses) on financial instruments at fair value and foreign exchange | 21 | 25 | 20 | 51 | ||
Revenues of consolidated VIEs | (30) | (31) | (72) | (11) | ||
Inter-segment revenues | [2] | 0 | 0 | 0 | 0 | |
Total revenues | 8 | 17 | 38 | 97 | ||
Losses and loss adjustment | 123 | (12) | 158 | 57 | ||
Amortization of deferred acquisition costs and operating | 16 | 16 | 60 | 49 | ||
Interest | 53 | 46 | 157 | 130 | ||
Expenses of consolidated VIEs | 1 | 2 | 9 | 5 | ||
Inter-segment expenses | [2] | 0 | 0 | 0 | 0 | |
Total expenses | 193 | 52 | 384 | 241 | ||
Income (loss) from continuing operations before income taxes | (185) | (35) | (346) | (144) | ||
Identifiable assets per segment | 2,916 | 2,916 | ||||
Net gains (losses) on extinguishment of debt | 0 | 0 | 1 | 4 | ||
Assets held for sale | 74 | 74 | ||||
Total identifiable assets | 2,990 | 2,990 | $ 3,375 | |||
Operating Segments [Member] | US Public Finance Insurance [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | 15 | 17 | 56 | 24 | |
Net gains (losses) on financial instruments at fair value and foreign exchange | (1) | (6) | 1 | (43) | ||
Revenues of consolidated VIEs | 0 | 0 | 0 | 0 | ||
Inter-segment revenues | [2] | 6 | 6 | 20 | 20 | |
Total revenues | 20 | 17 | 77 | 1 | ||
Losses and loss adjustment | 143 | 16 | 169 | 152 | ||
Amortization of deferred acquisition costs and operating | 0 | 2 | 4 | 6 | ||
Interest | 0 | 0 | 0 | 0 | ||
Expenses of consolidated VIEs | 0 | 0 | 0 | 0 | ||
Inter-segment expenses | [2] | 11 | 10 | 31 | 33 | |
Total expenses | 154 | 28 | 204 | 191 | ||
Income (loss) from continuing operations before income taxes | (134) | (11) | (127) | (190) | ||
Identifiable assets per segment | 2,379 | 2,379 | ||||
Net gains (losses) on extinguishment of debt | 0 | 0 | ||||
Assets held for sale | 0 | 0 | ||||
Total identifiable assets | 2,379 | 2,379 | ||||
Operating Segments [Member] | Corporate Operations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | (1) | (3) | 6 | 3 | |
Net gains (losses) on financial instruments at fair value and foreign exchange | 23 | 35 | 25 | 111 | ||
Revenues of consolidated VIEs | 0 | 0 | 0 | |||
Inter-segment revenues | [2] | 13 | 12 | 41 | 43 | |
Total revenues | 35 | 44 | 73 | 162 | ||
Losses and loss adjustment | 0 | 0 | 0 | 0 | ||
Amortization of deferred acquisition costs and operating | 11 | 12 | 47 | 35 | ||
Interest | 13 | 14 | 41 | 42 | ||
Expenses of consolidated VIEs | 0 | 0 | 0 | 0 | ||
Inter-segment expenses | [2] | 7 | 5 | 18 | 17 | |
Total expenses | 31 | 31 | 106 | 94 | ||
Income (loss) from continuing operations before income taxes | 4 | 13 | (33) | 68 | ||
Identifiable assets per segment | 564 | 564 | ||||
Net gains (losses) on extinguishment of debt | 0 | 5 | ||||
Assets held for sale | 0 | 0 | ||||
Total identifiable assets | 564 | 564 | ||||
Operating Segments [Member] | International And Structured Finance Insurance [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | 4 | 9 | 28 | 26 | |
Net gains (losses) on financial instruments at fair value and foreign exchange | (1) | (4) | (6) | (17) | ||
Revenues of consolidated VIEs | (30) | (31) | (72) | (11) | ||
Inter-segment revenues | [2] | 1 | 2 | 4 | 7 | |
Total revenues | (26) | (24) | (46) | 5 | ||
Losses and loss adjustment | (20) | (28) | (11) | (95) | ||
Amortization of deferred acquisition costs and operating | 3 | 2 | 8 | 8 | ||
Interest | 40 | 32 | 116 | 88 | ||
Expenses of consolidated VIEs | 1 | 2 | 9 | 5 | ||
Inter-segment expenses | [2] | 5 | 6 | 17 | 20 | |
Total expenses | 29 | 14 | 139 | 26 | ||
Income (loss) from continuing operations before income taxes | (55) | (38) | (185) | (21) | ||
Identifiable assets per segment | 978 | 978 | ||||
Net gains (losses) on extinguishment of debt | 0 | 0 | ||||
Assets held for sale | 0 | 0 | ||||
Total identifiable assets | 978 | 978 | ||||
Intersegment Elimination [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | (1) | 0 | (1) | 0 | |
Net gains (losses) on financial instruments at fair value and foreign exchange | 0 | 0 | 0 | 0 | ||
Revenues of consolidated VIEs | 0 | 0 | 0 | 0 | ||
Inter-segment revenues | [2] | (20) | (20) | (65) | (70) | |
Total revenues | (21) | (20) | (66) | (71) | ||
Losses and loss adjustment | 0 | 0 | 0 | 0 | ||
Amortization of deferred acquisition costs and operating | 2 | 0 | 1 | 0 | ||
Interest | 0 | 0 | 0 | 0 | ||
Expenses of consolidated VIEs | 0 | 0 | 0 | 0 | ||
Inter-segment expenses | [2] | (23) | (21) | (66) | (70) | |
Total expenses | (21) | (21) | (65) | (70) | ||
Income (loss) from continuing operations before income taxes | 0 | $ 1 | (1) | (1) | ||
Identifiable assets per segment | [3] | (1,005) | (1,005) | |||
Net gains (losses) on extinguishment of debt | 0 | $ (1) | ||||
Assets held for sale | 0 | 0 | ||||
Total identifiable assets | $ (1,005) | $ (1,005) | ||||
[1] Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). Primarily represents intercompany service charges and intercompany net investment income and expenses. Consists principally of intercompany reinsurance balances. |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Basic And Diluted Earnings Per Share) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Basic and diluted earnings per share: | |||||
Net income (loss) from continuing operations available to common shareholders - Basic | $ (185) | $ (35) | $ (346) | $ (144) | |
Income (loss) from discontinued operations, net of income taxes | (1) | 1 | (2) | 1 | |
Less: Net income (loss) from discontinued operations attributable to noncontrolling interests | (1) | 0 | 5 | 0 | |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 1 | (7) | 1 | |
Net Income (Loss) Attributable to Parent | $ (185) | $ (34) | $ (353) | $ (143) | |
Basic weighted average shares | [1] | 47,009,765 | 49,878,191 | 48,654,638 | 49,779,681 |
Diluted weighted average shares | [1] | 47,009,765 | 49,878,191 | 48,654,638 | 49,779,681 |
Continuing operations - Basic | $ (3.93) | $ (0.68) | $ (7.1) | $ (2.88) | |
Continuing operations - Diluted | (3.93) | (0.68) | (7.1) | (2.88) | |
Discontinued operations - Basic | (0.01) | 0.01 | (0.15) | 0.01 | |
Discontinued operations - Diluted | (0.01) | 0.01 | (0.15) | 0.01 | |
Net income (loss) per share attributable to MBIA Inc. - basic | (3.94) | (0.67) | (7.25) | (2.87) | |
Earnings Per Share, Diluted | $ (3.94) | $ (0.67) | $ (7.25) | $ (2.87) | |
Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect | 4.3 | 5 | 4.3 | 5 | |
[1] Includes approximately 1 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the three and nine months ended September 30, 2023 and 2022 . |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Changes In The Components Of AOCI) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Beginning balance | $ (283) | |||
Other comprehensive income (loss) before reclassifications | (41) | |||
Amounts reclassified from AOCI | 61 | |||
Total other comprehensive income (loss) | $ (50) | $ (83) | 20 | $ (414) |
Ending balance | (263) | (263) | ||
Unrealized gains (losses) on AFS, net [Member] | ||||
Beginning balance | (234) | |||
Other comprehensive income (loss) before reclassifications | (37) | |||
Amounts reclassified from AOCI | 16 | |||
Total other comprehensive income (loss) | (21) | |||
Ending balance | (255) | (255) | ||
Foreign currency translation, net [Member] | ||||
Beginning balance | (4) | |||
Other comprehensive income (loss) before reclassifications | 0 | |||
Amounts reclassified from AOCI | 0 | |||
Total other comprehensive income (loss) | 0 | |||
Ending balance | (4) | (4) | ||
Instrument-specific credit risk of liabilities measured at fair value, net [Member] | ||||
Beginning balance | (45) | |||
Other comprehensive income (loss) before reclassifications | (4) | |||
Amounts reclassified from AOCI | 45 | |||
Total other comprehensive income (loss) | 41 | |||
Ending balance | $ (4) | $ (4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Details Of The Reclassification From AOCI) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net gains (losses) on financial instruments at fair value and foreign exchange | $ 21 | $ 25 | $ 20 | $ 51 |
Net income (loss) | (185) | (34) | (353) | (143) |
Amounts reclassified from AOCI [Member] | ||||
Net income (loss) | (14) | (20) | (61) | (6) |
Unrealized gains (losses) on AFS, net [Member] | Amounts reclassified from AOCI [Member] | ||||
Net realized investment gains (losses) | (3) | 3 | (16) | 5 |
Instrument-specific credit risk of liabilities measured at fair value, net [Member] | Amounts reclassified from AOCI [Member] | ||||
Other net realized gains (losses) | 1 | 0 | (20) | 0 |
Net gains (losses) on financial instruments at fair value and foreign exchange | $ (12) | $ (23) | $ (25) | $ (11) |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Detail) | Sep. 30, 2023 LegalProceedings |
Commitments And Contingencies [Line Items] | |
Other material legal proceedings pending | 0 |
Commitments and Contingencies_3
Commitments and Contingencies (Lease Disclosures) (Detail) $ in Millions | Sep. 30, 2023 USD ($) |
Operating lease right of use asset | $ 16 |
Operating lease liability | $ 16 |
Operating lease weighted average remaining lease term | 6 years 10 months 24 days |
Operating lease weighted average discount rate percent | 7.50% |
Operating leases future minimum payments due | $ 21 |
Operating lease right of use asset | Other Assets |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities |