Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 04, 2017 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MBI | |
Entity Registrant Name | MBIA INC | |
Entity Central Index Key | 814,585 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 129,428,380 | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 152 | $ 187 |
Insurance loss recoverable | 486 | 504 |
Assets held for sale | 555 | |
Loan repurchase commitments | 409 | 404 |
Total assets | 11,017 | 11,137 |
Liabilities: | ||
Loss and loss adjustment expense reserves | 559 | 541 |
Liabilities held for sale | 346 | |
Total liabilities | 7,791 | 7,898 |
Commitments and contingencies (Refer to Note 14) | ||
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-- 283,905,896 and 283,989,999 | 284 | 284 |
Additional paid-in capital | 3,166 | 3,160 |
Retained earnings | 2,628 | 2,700 |
Accumulated other comprehensive income (loss), net of tax of $17 and $37 | (31) | (128) |
Treasury stock, at cost-- 153,946,569 and 148,789,168 shares | (2,833) | (2,789) |
Total shareholders' equity of MBIA Inc. | 3,214 | 3,227 |
Preferred stock of subsidiary | 12 | 12 |
Total equity | 3,226 | 3,239 |
Total liabilities and equity | 11,017 | 11,137 |
Non Variable Interest Entity [Member] | ||
Assets | ||
Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $4,723 and $4,713) | 4,701 | 4,694 |
Investments carried at fair value | 150 | 146 |
Investments pledged as collateral, at fair value (amortized cost $136 and $234) | 137 | 233 |
Short-term investments held as available-for-sale, at fair value (amortized cost $398 and $552) | 398 | 552 |
Other investments (includes investments at fair value of $4 and $5) | 6 | 8 |
Total investments | 5,392 | 5,633 |
Cash and cash equivalents | 112 | 163 |
Premiums receivable | 408 | 409 |
Deferred acquisition costs | 112 | 118 |
Insurance loss recoverable | 486 | 504 |
Assets held for sale | 0 | 555 |
Deferred income taxes, net | 1,019 | 970 |
Other assets | 157 | 113 |
Liabilities: | ||
Unearned premium revenue | 913 | 958 |
Loss and loss adjustment expense reserves | 559 | 541 |
Long-term debt | 2,034 | 1,986 |
Medium-term notes (includes financial instruments carried at fair value of $104 and $101) | 830 | 895 |
Investment agreements | 390 | 399 |
Derivative liabilities | 313 | 299 |
Liabilities held for sale | 0 | 346 |
Other liabilities | 235 | 233 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Assets | ||
Investments carried at fair value | 246 | 255 |
Other assets | 30 | 33 |
Cash | 40 | 24 |
Investments held-to-maturity, at amortized cost (fair value $879 and $876) | 890 | 890 |
Loans receivable at fair value | 1,716 | 1,066 |
Loan repurchase commitments | 409 | 404 |
Liabilities: | ||
Variable interest entity notes (includes financial instruments carried at fair value of $1,306 and $1,351) | $ 2,517 | $ 2,241 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 5,206 | $ 5,450 |
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 | 283,905,896 | 283,989,999 |
Accumulated other comprehensive income (loss), taxes | $ 17 | $ 37 |
Treasury stock, shares | 153,946,569 | 148,789,168 |
Non Variable Interest Entity [Member] | ||
Fixed-maturity securities held as available-for-sale, amortized cost | $ 4,723 | $ 4,713 |
Investments pledged as collateral, amortized cost | 136 | 234 |
Short-term investments held as available-for-sale, amortized cost | 398 | 552 |
Other investments, fair value | 4 | 5 |
Medium-term notes, financial instruments carried at fair value | 104 | 101 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Investments held-to-maturity, fair value | 879 | 876 |
Variable interest entity notes, financial instruments carried at fair value | $ 1,306 | $ 1,351 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Change in fair value of insured derivatives: | ||
Unrealized gains (losses) on insured derivatives | $ (22) | $ (14) |
Net change in fair value of insured derivatives | (53) | (28) |
Net gains (losses) on financial instruments at fair value and foreign exchange | 17 | (69) |
Net investment losses related to other-than-temporary impairments: | ||
Net investment losses related to other-than-temporary impairments | (2) | (1) |
Net gains (losses) on extinguishment of debt | 8 | 2 |
Other net realized gains (losses) | 3 | (1) |
Total revenues | 77 | 32 |
Expenses: | ||
Losses and loss adjustment | 94 | 22 |
Interest | 48 | 50 |
Total expenses | 197 | 133 |
Income (loss) before income taxes | (120) | (101) |
Provision (benefit) for income taxes | (48) | (23) |
Net income (loss) | $ (72) | $ (78) |
Net income (loss) per common share: | ||
Basic | $ (0.55) | $ (0.58) |
Diluted | $ (0.55) | $ (0.58) |
Weighted average number of common shares outstanding: | ||
Basic | 131,402,465 | 135,814,835 |
Diluted | 131,402,465 | 135,814,835 |
Non Variable Interest Entity [Member] | ||
Premiums earned: | ||
Scheduled premiums earned | $ 28 | $ 45 |
Refunding premiums earned | 21 | 30 |
Premiums earned (net of ceded premiums of $1 and $2) | 49 | 75 |
Net investment income | 52 | 39 |
Fees and reimbursements | 2 | 1 |
Change in fair value of insured derivatives: | ||
Realized gains (losses) and other settlements on insured derivatives | (31) | (14) |
Unrealized gains (losses) on insured derivatives | (22) | (14) |
Net change in fair value of insured derivatives | (53) | (28) |
Net gains (losses) on financial instruments at fair value and foreign exchange | 17 | (69) |
Net investment losses related to other-than-temporary impairments: | ||
Investment losses related to other-than-temporary impairments | 0 | (1) |
Other-than-temporary impairments recognized in accumulated other comprehensive income (loss) | (2) | 0 |
Net investment losses related to other-than-temporary impairments | (2) | (1) |
Net gains (losses) on extinguishment of debt | 8 | 2 |
Other net realized gains (losses) | 3 | (1) |
Expenses: | ||
Losses and loss adjustment | 94 | 22 |
Amortization of deferred acquisition costs | 7 | 10 |
Operating | 29 | 35 |
Interest | 48 | 50 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Premiums earned: | ||
Net investment income | 6 | 15 |
Change in fair value of insured derivatives: | ||
Net gains (losses) on financial instruments at fair value and foreign exchange | (33) | (1) |
Net investment losses related to other-than-temporary impairments: | ||
Other net realized gains (losses) | 28 | 0 |
Expenses: | ||
Operating | 2 | 4 |
Interest | $ 17 | $ 12 |
Consolidated Statements Of Ope5
Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Financial Guarantee Insurance Segment [Member] | ||
Ceded premiums earned | $ 1 | $ 2 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statements of Comprehensive Income (Loss) | ||
Net income (loss) | $ (72) | $ (78) |
Unrealized gains (losses) on available-for-sale securities: [Abstract] | ||
Unrealized gains (losses) arising during the period | (40) | 123 |
Provision (benefit) for income taxes | (6) | 43 |
Total | (34) | 80 |
Reclassification adjustments for (gains) losses included in net income (loss) | (2) | (5) |
Provision (benefit) for income taxes | (1) | (2) |
Total | (1) | (3) |
Available-for-sale securities with other-than-temporary impairments: [Abstract] | ||
Other-than-temporary impairments and unrealized gains (losses) arising during the period | 13 | (3) |
Provision (benefit) for income taxes | 5 | (1) |
Total | 8 | (2) |
Reclassification adjustments for (gains) losses included in net income (loss) | 2 | 0 |
Provision (benefit) for income taxes | 1 | 0 |
Total | 1 | 0 |
Foreign currency translation: [Abstract] | ||
Foreign currency translation gains (losses) | 144 | (14) |
Provision (benefit) for income taxes | 21 | (5) |
Total | 123 | (9) |
Total other comprehensive income (loss) | 97 | 66 |
Comprehensive income (loss) | $ 25 | $ (12) |
Consolidated Statement Of Chang
Consolidated Statement Of Changes In Shareholders' Equity - 3 months ended Mar. 31, 2017 - USD ($) $ in Millions | Total | Preferred Stock Of Subsidiary And Noncontrolling Interest [Member] | Total Shareholders' Equity Of MBIA Inc. [Member] | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
Total equity balance at Dec. 31, 2016 | $ 3,239 | $ 12 | $ 3,227 | $ 284 | $ 3,160 | $ 2,700 | $ (128) | $ (2,789) |
Balance (in common stock shares) at Dec. 31, 2016 | 283,989,999 | 283,989,999 | ||||||
Balance (in treasury stock shares) at Dec. 31, 2016 | (148,789,168) | (148,789,168) | ||||||
Balance (in preferred stock shares) at Dec. 31, 2016 | 0 | 1,315 | ||||||
Net income (loss) | $ (72) | (72) | (72) | |||||
Total other comprehensive income (loss) | 97 | 97 | 97 | |||||
Share-based compensation | 2 | 2 | $ 0 | 6 | $ (4) | |||
Share-based compensation (in shares) | (84,103) | (345,942) | ||||||
Treasury shares acquired | (40) | (40) | $ (40) | |||||
Treasury shares acquired (in shares) | (4,811,459) | |||||||
Total equity balance at Mar. 31, 2017 | $ 3,226 | $ 12 | $ 3,214 | $ 284 | $ 3,166 | $ 2,628 | $ (31) | $ (2,833) |
Balance (in common stock shares) at Mar. 31, 2017 | 283,905,896 | 283,905,896 | ||||||
Balance (in treasury stock shares) at Mar. 31, 2017 | (153,946,569) | (153,946,569) | ||||||
Balance (in preferred stock shares) at Mar. 31, 2017 | 0 | 1,315 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Premiums, fees and reimbursements received | $ 9 | $ 23 |
Investment income received | 64 | 113 |
Insured derivative commutations and losses paid | (31) | (15) |
Financial guarantee losses and loss adjustment expenses paid | (469) | (17) |
Proceeds from recoveries and reinsurance | 44 | 24 |
Operating and employee related expenses paid | (53) | (51) |
Interest paid, net of interest converted to principal | (35) | (37) |
Net cash provided (used) by operating activities | (471) | 40 |
Cash flows from investing activities: | ||
Purchases of available-for-sale investments | (394) | (452) |
Sales of available-for-sale investments | 271 | 281 |
Paydowns and maturities of available-for-sale investments | 169 | 122 |
Purchases of investments at fair value | (69) | (24) |
Sales, paydowns and maturities of investments at fair value | 75 | 92 |
Sales, paydowns and maturities (purchases) of short-term investments, net | 206 | (32) |
Sales, paydowns and maturities of held-to-maturity investments | 0 | 1,799 |
Paydowns and maturities of loans receivable | 70 | 56 |
Consolidation of variable interest entities | 18 | 9 |
(Payments) proceeds for derivative settlements | (7) | (20) |
Collateral (to) from swap counterparty | (5) | (13) |
Other investing | (23) | (4) |
Net cash provided (used) by investing activities | 311 | 1,814 |
Cash flows from financing activities: | ||
Proceeds from investment agreements | 2 | 5 |
Principal paydowns of investment agreements | (13) | (15) |
Principal paydowns of medium-term notes | (67) | 0 |
Proceeds from the MBIA Corp. Financing Facility | 328 | 0 |
Principal paydowns of variable interest entity notes | (93) | (1,939) |
Purchases of treasury stock | (31) | (98) |
Other financing | (2) | 0 |
Net cash provided (used) by financing activities | 124 | (2,047) |
Effect of exchange rate changes on cash and cash equivalents | 1 | 3 |
Net increase (decrease) in cash and cash equivalents | (35) | (190) |
Cash and cash equivalents - beginning of period | 187 | 522 |
Cash and cash equivalents - end of period | 152 | 332 |
Reconciliation of net income (loss) to net cash provided (used) by operating activities: [Abstract] | ||
Net income (loss) | (72) | (78) |
Change in: [Abstract] | ||
Premiums receivable | 3 | 53 |
Deferred acquisition costs | 6 | 10 |
Unearned premium revenue | (45) | (81) |
Loss and loss adjustment expense reserves | 359 | 9 |
Insurance loss recoverable | (691) | 21 |
Accrued interest payable | 37 | 28 |
Accrued expenses | (28) | (21) |
Unrealized (gains) losses on insured derivatives | 22 | 14 |
Net (gains) losses on financial instruments at fair value and foreign exchange | 16 | 70 |
Other net realized (gains) losses | (31) | 1 |
Deferred income tax provision (benefit) | (49) | (23) |
Interest on variable interest entities, net | 10 | 22 |
Other operating | (8) | 15 |
Total adjustments to net income (loss) | (399) | 118 |
Net cash provided (used) by operating activities | (471) | 40 |
Supplementary Disclosure of Consolidated Cash Flow Information | ||
Non-cash consideration received from the sale of MBIA UK Insurance Limited | $ 332 | $ 0 |
Business Developments and Risks
Business Developments and Risks and Uncertainties | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Business Developments and Risks and Uncertainties | Note 1: Business Developments and Risks and Uncertainties Summary MBIA Inc., together with its consolidated subsidiaries, (collectively, “MBIA” or the “Company”) operates one of the largest financial guarantee insurance businesses in the 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 primarily operated through National Public Finance Guarantee Corporation (“National”) and its international and structured finance insurance business is primarily operated through MBIA Insurance Corporation and its subsidiaries (“MBIA Corp.”). Effective on January 10, 2017, MBIA Corp.’s wholly - owned subsidiary, MBIA UK (Holdings) Limited (“MBI A UK Holdings”), sold its operating subsidiary, MBIA UK Insurance Limited (“MBIA UK”) , to Assured Guaranty Corp. (“Assured”), a subsidiary of Assured Guaranty Ltd. Refer below for a further discussion of the sale of MBIA UK. Unless otherwise indicated or t he context otherwise requires, references to “MBIA Corp.” are (i) for any references relating to the period ended January 10, 2 017, to MBIA Insurance Corporation, together with its subsidiaries, MBIA UK , and MBIA Mexico S.A. d e C.V . (“MBIA Mexico”) and (ii) for any references relating to the period after January 10, 2 017, to MBIA Insurance Corporation together with MBIA Mexico. Refer to “Note 12: Business Segments” for further i nformation about the Company’s operating segments. Business Developments Sale of MBIA UK On January 10, 2017, MBIA UK Hol dings sold its operating subsidiary, MBIA UK, and made a cash payment of $ 23 million, to Assured in exchange for the receipt by MBIA UK Holdings of certain notes (“Zohar II Notes”) owned by Assured that were issued by Zohar II 2005-1, Limited (“Zohar II”) with an aggregate outstanding principal amount of $ 347 million as of January 1 0 , 201 7 (the “Sale Transaction”). For the three months ended March 31, 2017, the Company recorded a gain of $ 5 million to adjust the carrying value of MBIA UK to its fair value less costs to sell as of the sale date. This gain was reflected in the results of the Company’s international and structured finance insurance segment and included in “Other net realized gains (losses)” on the Company’s consolidated statement of operations. Held for Sale Classification The assets and liabilities of MBIA UK were classified as held for sale as of December 31, 2016 and presented within “Assets held for sale” and “Liabilities held for sale” on the Company’s consolidated balance sheet. Income before income taxes for MBIA UK was $ 9 million for the three months ended March 31, 2016. The following table summarizes the components of assets and liabilities held for sale as of December 31 , 2016: As of In millions December 31, 2016 Assets Investments $ 466 Cash and cash equivalents 73 Premiums receivable 267 Other assets 19 Valuation allowance (270) Total assets held for sale $ 555 Liabilities Unearned premium revenue $ 304 Other liabilities 42 Total liabilities held for sale $ 346 MBIA Corp. Financing Facility On January 10, 2017, MBIA Corp. consummated a financing facility (the “Facility”) with affiliates of certain holders of 14 % Fixed-to-Floating Rate Surplus Notes of MBIA Corp. (collectively, the “Senior Lenders”), and with MBIA Inc., pursuant to which the Senior Lenders have provided $ 325 million of senior financing and MBIA Inc. has provide d $ 38 million of subordinated financing to MZ Funding LLC (“MZ Funding”), a newly formed wholly-owned subsidiary of the Company, which i n turn lent the proceeds of such financing to MBIA Corp. MBIA Corp. issued financial guarantee insurance policies insuring MZ Funding’s obligations to the Senior Lender and MBIA Inc. under the Facility. Refer to “ Note 9: Debt ” for further information about th e Facility. 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 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 s tatements and business objectives in future periods. U.S. Public Finance Market Conditions National’s insured portfolio continued to perform satisfactorily against a backdrop of strengthening domestic economic activity. While a stable or growing economy will generally benefit tax revenues and fees charged for essential municipal services which secure National’s insured bond portfolio, some state and local governments and territory obligors National insures remain 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 the Company’s insured transactions. The Company monitors and analyzes these situations and other stressed credits c losely, and the overall extent and duration of this stress is uncertain. In particular, the Commonwealth of Puerto Rico and certain of its instrumentalities (“Puerto Rico”) is experiencing significant fiscal stress and constrained liquidity due to, among other things, Puerto Rico’s structural budget imbalance, limited access to the capital markets, a stagnating local economy, net migration of people out of Puerto Rico and a high debt burden . Although Puerto Rico has tried to address its challenges through various fiscal policies, it continues to experience significant fiscal stress. On January 1, 2017, Puerto Rico also defaulted on a scheduled debt service for National insured bonds and National paid gross claims in the aggregate of $ 24 million as a result . The Company continue s to believe, based on its analysis of Puerto Rico’s fiscal and structural circumstances, the details of its insured exposures, and its legal and contractual rights, that all of National’s insured Puerto Rico related debt , and any cla ims National has made thereon, will ultimately be substantially repaid. MBIA Corp. Insured Portfolio MBIA Corp.’s primary objectives are to satisfy claims of its policyholders, and to maximize future recoveries, if any, for its Senior Lenders and surplus note holders and, thereafter, its preferred stock holders. MBIA Corp. is executing this strategy by pursuing various actions focused on maximizing the collection of recoveries and by reducing potential losses on its insurance exposures. MBIA Corp.’s insur ed portfolio 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 cash to meet its obligations. On January 20, 2017, MBIA Corp. was presented with and fully satisfied a claim of $ 770 million ( the “Zohar II Claim”) on an insurance policy it had written insuring certain notes (the “Zohar II Notes”) issued by Zohar II 2005-1, Limited (“Zohar II”). MBIA Corp. was able to satisfy the Zohar II Claim as a result of having completed the Sale Transactio n and by borrowing from the Facility , as described above, together with using approximately $ 60 million from its own resources. Refer to “ Note 1: Business Developments and Risks and Uncertainties ” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K fo r the year ended December 31, 2016 for information about these transactions. RMBS Recoveries The amount and timing of projected collections from excess spread from residential mortgage-backed securities (“RMBS”) and the put-back recoverable from Credit Suisse are uncertain. Zohar Recoveries Payment of a claim in November of 2015 on MBIA Corp.’s policy insuring the class A-1 and A-2 notes issued by Zohar CDO 2003-1, Limited (“Zohar I”) and satisfying the Zohar II Claim entitles MBIA Corp. to reimbursem ent of such amounts plus interest and expenses and/or to exercise certain rights and remedies to seek recovery of such amounts. There can be no assurance, however, that the value of the Zohar assets will be sufficient to permit MBIA Corp. to recover all or substantially all of the payments it made on Zohar I and Zohar II. Refer to “ Note 5: Loss and Loss Adjustment Expense Reserves ” for information about MBIA Corp.’s r ecoveries. Corporate Liquidity Based on the Company’s projections of National’s dividends, additional anticipated releases under its tax sharing agreement and related tax escrow account (“ Tax Escrow Account ”) , 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. continue s to have liquidity risk which could be triggered by deterioration in the performance of invested assets, interruption of or reduction in dividends or tax payments received from operating subsidiaries, impaired access to the capital markets, as well as oth er factors which cannot be anticipated at this time. Furthermore, failure by MBIA Inc. to settle liabilities that are also insured by MBIA Corp. could result in claims on MBIA Corp. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Significant Accounting Policies | Note 2: Significant 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, 2016 . The following significant accounting policies provide an update to those included in the Company’s Annual Report on Form 10-K. Basis of Presentation The accompanying unaudited conso lidated financial statements have been prepared in accordance with the instructions to Fo rm 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 re ad 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, 2016 . The accompanying consolidated financial statements have not been audited by an independent re gistered 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, n ecessary 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 estima tes 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. Actu al 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 months ended March 31, 2017 may not be indicative of the results that may be expected for the year ending December 31, 2017 . The December 31, 2016 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures requi red by GAAP for annual periods. Certain amounts have been reclassified in the prior year ’ s financial statements to conform to the current presentation. This includes a change in the presentation of cash paid when withholding shares for tax-withholding purp oses in “ Purchases of treasury stock ” on the Company’s consolidated statement of cash flows as required under Accounting Standards Update ( “ASU”) 2016-09 , “Compensation-Stock Compensation (Topic 718) ” . The change in presentation effected “ Operating and employee related expenses paid ” , in operating cash flows and “ Purchases of treasury stock ” , in financing cash flows, on the Company’s consolidated statement of cash flows in prior periods. Such reclassifications did not materially impact total revenu es, expenses, assets, liabilities, shareholders’ equity , operating cash flows, investing cash flows, or financing cash flows for all periods presente d. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Recent Accounting Pronouncements | Note 3: Recent Accounting Pronouncements Recently Adopted Accounting Standards The Company has not adopted any new accounting pronouncements that had a material impact on its consolidated financial statements. Recent Accounting Developments Revenue from Contracts with Customers (Topic 606) (ASU 2014-09) and Deferral of the Effective Date (ASU 201 5 - 14 ) In May of 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 amends the accounting guidance for recognizing revenue for the transfer of goods or services from contracts with customers unless those contracts are within the scope of other accounting standards. ASU 2014-09 does not apply to financial guarantee insurance contracts within the scope of Topic 944, “Financial Services — Insura nce.” ASU 2014-09 applies to certain fees and reimbursements, and is not expected to materially impact revenue recogni tion of these fees and reimbursements. In August of 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) — Deferral of the Effective Date. ” ASU 2015-14 defers the effective date of ASU 2014-09 to interim and annual periods beginning January 1, 2018, and is applied on a retrospective or modified retrospective basis. The adoption of ASU 2014-09 is not expected to materially impact the Company’s consolidated financial statements. Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) In January of 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 requires certain equity investments other than those accounted for under the equity method of accounting or result in consolidation of the investee to be measured at fair value with changes in fair value recognized in net income, and permits an entity to measure equity investments that do not have readily determinable fair values at cost less any impairment plus or minus adjustments for certain changes in observable prices. An entity is also required to evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale (“AFS”) debt securities in combination with the entity’s other deferred tax assets. ASU 2016-01 requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability that results from a change in t he instrument-specific credit risk for financial liabilities that the entity has elected to measure at fair value in accordance with the fair value option for financial instruments. ASU 2016-01 is effective for interim and annual periods beginning January 1, 2018, and is applied on a modified retrospective basis. Early adoption is not permitted with the exception of early application of the guidance that requires separate presentation in other comprehensive income of the change in the instrument-specific cr edit risk for financial liabilities measured at fair value in accordance with the fair value option . Upon adoption of ASU 2016-01, the Company does not expect there to be a material impact to the Company’s consolidated financial statements. Based on the fa ir values as of March 31, 2017 of financial liabilities measured at fair value in accordance with the fair value option, the cumulative-effect adjustment, net of tax, related to the instrument-specific credit risk portion of such financial liabilities was a gain of approximately $ 100 million , which represents the amount that would have been reclassed from retained earnings to accumulated other comprehensive income (loss) had the Company adopted ASU 2016-01 on March 31, 2017. In addition, based on fair value s as of March 31, 2017 of equity investments, the cumulative-effect adjustment, net of tax, related to net unrealized gains of such investments was approximately $ 0.3 million, which represents the amount that would have been reclassed from accumulated othe r comprehensive income (loss) to retained earnings had the Company adopted ASU 2016-01 on March 31, 2017. The Company plans to adopt ASU 2016-01 in its entirety on January 1, 2018. The amounts provided as of March 31, 2017 are subject to change when the Co mpany adopts ASU 2016-01. Leases (Topic 842) (ASU 2016-02) In February of 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” that amends the accounting guidance for leasing transactions. ASU 2016-02 requires a lessee to classify lease contracts as finance or operating leases, and to recognize assets and liabilities for the rights and obligations created by leasing transactions with lease terms more than twelve months. ASU 2016-02 substantially retains the criteria for classifying leasing transaction s as finance or operating leases. For finance leases, a lessee recognizes a right-of-use asset and a lease liability initially measured at the present value of the lease payments, and recognizes interest expense on the lease liability separately from the a mortization of the right-of-use asset. For operating leases, a lessee recognizes a right-of-use asset and a lease liability initially measured at the present value of the lease payments, and recognizes lease expense on a straight-line basis. ASU 2016-02 is effective for interim and annual periods beginning January 1, 2019 with early adoption permitted, and is applied on a modified retrospective basis. The adoption of ASU 2016-02 is not expected to materially impact the Company’s consolidated financial state ments. Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) In June of 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Fina ncial Instruments.” ASU 2016-13 requires financing receivables and other financial assets measured at amortized cost basis to be presented at the net amount expected to be collected by recording an allowance for credit losses with changes in the allowance recorded as credit loss expense or reversal of credit loss expense based on management’s current estimate of expected credit losses each period. ASU 2016-13 does not apply to credit losses on financial guarantee insurance contracts within the scope of Topi c 944, “Financial Services-Insurance.” ASU 2016-13 also requires impairment relating to credit losses on AFS debt securities to be presented through an allowance for credit losses with changes in the allowance recorded in the period of the change as credit loss expense or reversal of credit loss expense. Any impairment amount not recorded through an allowance for credit losses on AFS debt securities is recorded through other comprehensive income. ASU 2016-13 is effective for interim and annual periods begin ning January 1, 2020 with early adoption permitted beginning January 1, 2019. ASU 2016-13 is applied on a modified retrospective basis except that prospective application is applied to AFS debt securities with other-than-temporary impairments (“OTTI”) reco gnized before the date of adoption. The Company is evaluating the impact of adopting ASU 2016-13. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Variable Interest Entities | Note 4: Variable Interest Entities 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 activit ies 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 inter ests 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 recei ve 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 ent ities 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 o f 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 a nd 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 contractua l 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 considere d the activities of a VIE that most significantly impact the entity’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 absor b 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 circum stances, 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. N o n c o n s o l i d a t e d V I Es T h e f ol l owin g t able s p r e s en t t h e t o t a l a ss e t s o f n o n c on s oli d a t e d V I E s i n whi ch t h e Co m p a n y ho l d s a v a r iab l e i n t e r e s t as o f March 31, 2017 a n d December 31, 2016 , through its insurance operations. T h e f o l lowi n g t abl e s al so p r e s en t t h e Co m pan y ’ s m a x i m u m e x po s u re t o l o ss f o r n o n c on s olid a t e d V I Es and carrying v a lu e s o f t h e a s s e t s a n d liab i li t ie s f o r i t s in t e r e st s in t he se V I Es a s o f March 31, 2017 an d December 31, 2016 . T h e Co m pa n y ha s agg r eg a t e d non c o n s o lida t e d V I Es b a s e d o n t he und e r l y in g c r e di t e x p o s u r e o f t h e in s u r e d ob l iga t ion . T h e na t u re o f t h e C o m p a n y ’ s v a r i a bl e in t e r e s t s i n non c on s o l ida t ed V I Es i s r el a t e d t o f in a n c ia l gua r an t ee s, i n s u r e d credit default swap (“ CD S ”) c on t r a c t s an d an y i n v e s t m en t s i n o b liga t io n s i ss ue d by non c o n s o lida t e d V I Es. March 31, 2017 Carrying Value of Assets Carrying Value of Liabilities Loss and Loss Maximum Unearned Adjustment VIE Exposure Premiums Insurance Loss Premium Expense In millions Assets to Loss Investments (1) Receivable (2) Recoverable (3) Revenue (4) Reserves (5) Insurance: Global structured finance: Collateralized debt obligations $ 1,955 $ 995 $ 13 $ 1 $ - $ - $ - Mortgage-backed residential 8,575 4,499 20 27 282 25 396 Mortgage-backed commercial 247 132 - - - - - Consumer asset-backed 5,059 1,267 - 6 2 5 10 Corporate asset-backed 2,406 2,015 - 16 - 18 - Total global structured finance 18,242 8,908 33 50 284 48 406 Global public finance 19,035 3,062 - 11 - 18 - Total insurance $ 37,277 $ 11,970 $ 33 $ 61 $ 284 $ 66 $ 406 __________ (1) - Reported within "Investments" on MBIA's consolidated balance sheets. (2) - Reported within "Premiums receivable" on MBIA's consolidated balance sheets. (3) - Reported within "Insurance loss recoverable" on MBIA's consolidated balance sheets. (4) - Reported within "Unearned premium revenue" on MBIA's consolidated balance sheets. (5) - Reported within "Loss and loss adjustment expense reserves" on MBIA's consolidated balance sheets. December 31, 2016 Carrying Value of Assets Carrying Value of Liabilities Loss and Loss Maximum Unearned Adjustment VIE Exposure Premiums Insurance Loss Premium Expense In millions Assets to Loss Investments (1) Receivable (2) Recoverable (3) Revenue (4) Reserves (5) Insurance: Global structured finance: Collateralized debt obligations $ 3,167 $ 1,914 $ 51 $ 2 $ - $ - $ 73 Mortgage-backed residential 9,146 4,796 20 28 304 27 325 Mortgage-backed commercial 257 145 - - - - - Consumer asset-backed 4,893 1,331 - 7 2 5 8 Corporate asset-backed 2,625 2,205 5 18 - 20 - Total global structured finance 20,088 10,391 76 55 306 52 406 Global public finance 44,306 12,051 - 11 - 18 - Total insurance $ 64,394 $ 22,442 $ 76 $ 66 $ 306 $ 70 $ 406 __________ (1) - Reported within "Investments" on MBIA's consolidated balance sheets. (2) - Reported within "Premiums receivable" on MBIA's consolidated balance sheets. Excludes $125 million that is included within “Assets held for sale” on the Company’s consolidated balance sheet. (3) - Reported within "Insurance loss recoverable" on MBIA's consolidated balance sheets. (4) - Reported within "Unearned premium revenue" on MBIA's consolidated balance sheets. Excludes $134 million that is included within “Liabilities held for sale” on the Company’s consolidated balance sheet. (5) - Reported within "Loss and loss adjustment expense reserves" on MBIA's consolidated balance sheets. T he 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 princip a l a nd i n te r est whic h ma y be r e qu i r ed und e r c o mmitment s t o ma ke p a y me n t s on i n s ur e d ob li g atio ns iss u e d by n on co n s o li d ate d V I E s. Consolidated VIEs The carrying amounts of assets and liabilities of consolidated VIEs were $ 3.3 billion and $ 2.5 billion , respectively, as of March 31, 2017 , and $ 2.7 billion and $ 2.2 billion, respectively, as of December 31, 2016 . The carrying amou nts of assets and liabilities are presented separately in “Assets of consolidated variable interest entities” and “Liabilities of consolidated variable interest entiti es” 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 constitu te power to direct activities of any VIEs are present according to the design and characteristics of these entities. Two additional VIE s w ere consolidated during the three months ended March 31, 2017 and one additional VIE w as consolidated during the three months ended March 31, 2016 . Holders of insured obligations of issuer-sponsored VIEs related to the Company’s international and structured finance insurance segment do not have recourse to the general assets of MBIA. 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 insur ed obligations and any additional variable interests held by MBIA. |
Loss and Loss Adjustment Expens
Loss and Loss Adjustment Expense Reserves | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Loss and Loss Adjustment Expense Reserves | Note 5: Loss and Loss Adjustment Expense Reserves U.S. Public Finance Insurance U.S. public finance insur ed 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, student loan issuers, 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 cas h 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 outs tanding for c apital appreciation bonds represents the par amount at the time of issuance of the insurance policy . Certain local governments remain under financial and budgetary stress and a few have filed for protection under the United States Bankruptcy C ode, or have entered into state statutory proceedings established to assist municipalities in managing through periods of severe fiscal stress. This could lead to an increase in defaults by such entities on the payment of their obligations and losses or im pairments i n greater amounts on the Company’s insured transactions. The Company monitor s and analyze s these situations closely , however , the overall extent and duration of such events are uncertain . Also, the filing for protection under the United States B ankruptcy Code or entering state statutory proceedings does not necessarily result in a default or indicate that an ultimate loss will occur . International and Structured Finance Insurance T he international and structured finance insurance segment’s c ase basis reserves and insurance loss recoveries recorded in accordance with GAAP do not include estimates for policies insuring credit derivatives or on financial guarantee VIEs that are eliminated in consolidation . Policies insuring credit derivative con tracts are accounted for as derivatives and are carried at fair value in the Company’s consolidated financial statements under GAAP. The fair values of insured credit derivative contracts are influenced by a variety of market and transaction-specific facto rs that may be unrelated to potential future claim payments under the Company’s insurance policies. In the absence of credit impairments on insured credit derivative contracts or the early termination of such contracts at a loss, the cumulative unrealized losses recorded from these contracts should reverse before or at the maturity of the contracts. As the Company’s insured credit derivatives have similar terms, conditions, risks, and economic profiles to its financial guarantee in surance policies, the Company evaluates them for impairment , under Statutory accounting, in the same way that it estimates loss and loss adjustment expense (“ LAE ”) for its financial guarantee policies. Refer to “ Note 8: Derivative Instruments ” for a further discussion o f the Company’s use of derivatives and their impact on the Company’s consolidated financial statements. RMBS Case Basis Reserves (Financial Guarantees) The Company’s RMBS reserves and recoveries relate to financial guarantee insurance policies , excluding those on consolidated VIEs . The Company’s first-lien RMBS case basis reserves primarily relate to RMBS backed by alternative A-paper and subprime mortgage loans. The Company’s second-lien RMBS case basis reserves relate to RMBS backed by home equity lines of credit and closed-end second mortgages. The Company calculated RMBS case basis reserves as of March 31, 2017 for both first and second-lien RMBS transactions using a process called the “Roll Rate Methodology .” The Roll Rate Methodology is a multi- step process using database s of loan level information, proprietary internal cash flow model s , and commercially available model s to estimate potential losses and recoveries on insured bonds. Refer to “Note 6: Loss and Loss Adjustment Expense Reserves” in t he Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, for additional information on the Company’s Roll Rate Methodology for its RMBS case basis reserves. The Company monit ors portfolio performance on a monthly basis against projected performance, reviewing delinquencies, r oll r ates, and prepayment rates (including voluntary and involuntary). However, loan performance remains difficult to predict and losses may exceed expect ations. In the event of a material deviation in actual performance from projected performance, the Company would increase or decrease the case basis reserves accordingly. RMBS Recoveries The Company primarily records two types of recoveries related to insured RMBS exposures: excess spread that is generated from the trust structures in the insured transactions; and second-lien “put-back” claims related to those mortgage loans whose inclusion in an insured securitization failed to comply with representations and warra nties (“ineligible loans”). Excess Spread Excess spread within insured RMBS securitizations is the difference between interest inflows on mortgage loan collateral and interest outflows on the insured RMBS notes. The aggregate amount of excess spread depend s on the future loss trends (which include future delinquency trends, average time to charge-off/liquidate delinquent loans, and the availability of pool mortgage insurance), the future spread between Prime and the London Interbank Offered Rate interest ra tes, and borrower refinancing behavior (which may be affected by changes in the interest rate environment) that results in voluntary prepayments. Minor deviations in loss trends and voluntary prepayments may substantially impact the amounts collected from excess spread. Excess spread may also include estimated recoverables from mortgage insurance contracts and subsequent recoveries on charged-off loans associated with the insured RMBS securitizations. Second-lien Put-Back Claims Related to Ineligible Mortga ge Loans To date, MBIA has settled the majority of the Company’s put-back claims . Only its claims against Credit Suisse remain outstanding. To date, settlement amounts have been consistent with the put-back recoveries that had been included in the Company’s financial statements at the times preceding the settlements . The put-back contract claim remaining with Credit Suisse is related to the inclusion of ineligible mortgage loans in the 2007-2 Home Equity Mortgage Trust securitizati on. Credit Suisse has challenged the Company’s assessment of the ineligibility of individual mortgage loans and the dispute is the subject of litigation for which there is no assurance that the Company will prevail. Based on the Company’s assessment of th e strength of its contractual put-back rights against Credit Suisse, as well as on its prior settlements with other sellers/servicers and success of other monolines’ put-back settlements, the Company believes it will prevail in enforcing its contractual ri ghts and that it is entitled to collect the full amount of its incurred losses, which totaled $ 440 million through March 31, 2017 . The Company is also entitled to collect interest on amounts paid; it believes that in the context of its put-back litig ation, the appropriate interest rate should be the New York State statutory rate. However, the Company currently calculates its put-back recoveries using the contractual interest rate, which is lower than the New York State statutory rate. Notwithstanding the foregoing, u ncertainty remains with respect to the ultimate outcome of the litigation with Credit Suisse, which is contemplated in the probability-weighted cash flow scenario based-modeling the Company uses. The Credit Suisse recovery scenarios are bas ed on the amount of incurred losses measured against certain probabilities of ultimate resolution of the dispute with Credit Suisse. Most of the probability weight is assigned to partial recovery scenarios and a re discounted using the current risk-free dis count rates associated against the underlying transaction’s cash flows . The Company continues to consider relevant facts and circumstances in developing its assumptions on expected cash inflows, probability of potential recoveries (including the outcome o f litigation) and recovery period. The estimated amount and likelihood of potential recoveries are expected to be revised and supplemented to the extent there are developments in the pending litigation and/or changes to the financial condition of Credit Su isse. While the Company believes it will be successful in realizing its recoveries from its put-back contract claims against Credit Suisse , the ultimate amount recovered may be materially different from th at recorded by the Company given the inherent uncer tainty of the manner of resolving the claims ( i. e., litigation and/or negotiated out-of-court settlement ) and the assumptions used in the required estimation process for accounting purposes which are based, in part, on judgments and other information that are not easily corroborated by historical data or other relevant benchmarks. CDO Reserves The Company also has loss and LAE reserves on certain transactions within its collateralized debt obligation (“ CDO ”) portfolio, including its multi-sector CDO and hig h yield corporate CDO asset classes that were insured in the form of financial guarantee policies. MBIA’s insured multi-sector CDOs are transactions that include a variety of collateral ranging from corporate bonds to structured finance assets (which inclu des , but are not limited to , RMBS-related collateral, multi-sector and corporate CDOs). MBIA’s high yield corporate CDO portfolio consists of a middle-market/special-opportunity corporate loan transaction. Zohar Recoveries MBIA Corp. will seek to recover the payment s it made (plus interest and expenses) with respect to Zohar I and the Zohar II Claim . MBIA Corp. anticipates that the primary source of the recovery of the Zohar II Claim w ill come from the monetization of the assets of Zohar II, which include, among other things, loans made to, and equity interests in, companies purportedly controlled by the sponsor and former collateral manager of Zohar I and Zohar II (the “Zohar Sponsor”) (all the assets of Zohar II, the “Zohar II Assets”). In connection wit h the exercise of its rights and remedies, MBIA Corp. directed the trustee for Zohar I to commence an auction (the “Auction”) of all of the assets of Zohar I, which occurred in 2016. MBIA Corp. was the winning bidder in the Auction, and in connection there with, acquired the beneficial ownership of the Zohar I assets, which include loans made to, and equity interests in, companies purportedly controlled by the Zohar Sponsor (all the assets of Zohar I, the “Zohar I Assets”). Over time, MBIA Corp. expects to a cquire the legal ownership of the Zohar I Assets and recover all or substantially all of the payment it made (plus interest and expenses) with regards to the Zohar I Claim. As of March 31, 2017, the recoveries of Zohar I and Zohar II are included in “Loans receivable at fair value” which are presented in “Assets of consolidated variable interest entities” on the Company’s consolidated balance sheets. There can be no assurance, however, that the value of the Zohar II Assets and the Zohar I Assets will be suf ficient to permit MBIA Corp. to recover all or substantially all of the payments it made on the Zohar II Claim and the Zohar I Claim. Failure to recover a substantial amount of such payments could impede its ability to make payments when due on other polic ies. 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 in to 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. Refer to “Note 6: Loss and Loss Adjustment Expense Reserves” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, for additional information on the Company’s loss reserving process including risk-management activities. Summary of Loss and LAE Reserves and Recoveries The Company’s loss and LAE reserves and recoveri es before consolidated VIE eliminations, along with amounts that were eliminated as a result of consolidat ed VIEs, which are included in the Company’s consolidated balance sheets as of March 31, 2017 and December 31, 2016 are presented in the follo wing table: As of March 31, 2017 As of December 31, 2016 In millions Balance Sheet Line Item Balance Sheet Line Item Insurance loss recoverable Loan repurchase commitments Loss and LAE reserves Insurance loss recoverable Loan repurchase commitments Loss and LAE reserves U.S. Public Finance Insurance $ 197 $ - $ 106 $ 174 $ - $ 97 International and Structured Finance Insurance: Before VIE eliminations 1,200 409 687 551 404 650 VIE eliminations (911) - (234) (221) - (206) Total international and structured finance insurance 289 409 453 330 404 444 Total $ 486 $ 409 $ 559 $ 504 $ 404 $ 541 Changes in Loss and LAE Reserves The following table present s changes in the Company’s loss and LAE reserves for the three months ended March 31, 2017 . Changes in loss reserves attributable to the accretion of the claim liability discount, changes in discount rates, changes in amount and timing of estimated claim payments and recoveries, changes in assumptions and changes in LAE reserves are recorded in “Losses and loss adjustment” expenses in the Company’s consolidated statements of operations. As of March 31, 2017 , the weighted average risk-free rate used to discount the Company’s loss reserves (claim liability) was 2.14 % . L AE reserves are generally expected to be settled within a one-year period and are not discounted . As of March 31, 2017 and December 31, 2016 , the Company’s gross loss and LAE reserves included $ 62 million and $ 60 million, respectively, related to LAE. In millions Changes in Loss and LAE Reserves for the Three Months Ended March 31, 2017 Gross Loss Loss Gross Loss and LAE Payments Accretion Changes in and LAE Reserves as of for Cases of Claim Changes in Unearned Changes in Reserves as of December 31, with Liability Discount Changes in Premium LAE March 31, 2016 Reserves (1) Discount Rates Assumptions Revenue Reserves Other (2) 2017 $ 541 $ (804) $ 1 $ 5 $ 96 $ 4 $ 2 $ 714 $ 559 ____________ (1) - Includes payments made to satisfy the Zohar II Claim. (2) - Primarily changes in the amount to satisfy the Zohar II Claim. The increase in the Company ’s gross loss and LAE reserves reflected in the preceding table was primarily related to increases due to changes in assumptions on insured RMBS transactions , partially offset by decreases in changes in amount of payments on CDOs. Changes in Insurance Loss Recoverable and Recoveries on Unpaid Losses C u rr en t pe r io d ch a nge s i n th e C o m pan y ’ s est i mat e o f p o tent i a l r e c o v e r i e s ma y be r e c o r de d a s a n in s u r an c e l oss r e c ove r a bl e as s et , net t e d a g ain s t th e g r os s l o s s an d L A E r e se r v e l i abi l i t y , or bo t h . The following table present s changes in the Company’s insurance loss recoverable and changes in recoveries on unpaid losses reported within the Company’s claim liability for the three months ended March 31, 2017 . Changes in insurance loss recoverable attributable to the accretion of the discount on the recoverable, changes in discount rates, changes in amount and timing of estimated collections, changes in assumptions and changes in LAE recoveries are recorded in “Losses a nd loss adjustment” expenses in the Company’s consolidated statements of operations. Changes in Insurance Loss Recoverable and Recoveries on Unpaid Losses for the Three Months Ended March 31, 2017 Gross Gross Reserve Collections Reserve as of for Cases Accretion Changes in Changes in as of December 31, with of Discount Changes in LAE March 31, In millions 2016 Recoveries Recoveries Rates Assumptions Recoveries Other (1) 2017 Insurance loss recoverable $ 504 $ (42) $ 2 $ 3 $ (4) $ - $ 23 $ 486 Recoveries on unpaid losses (2) 79 - - 1 (25) (4) - 51 Total $ 583 $ (42) $ 2 $ 4 $ (29) $ (4) $ 23 $ 537 ____________ (1) - Primarily changes in amount and timing of collections. (2) - As of March 31, 2017 and December 31, 2016, excludes Puerto Rico recoveries, and as of December 31, 2016, the Zohar II recoveries, which have been netted against reserves. The decrease in the Company’s insurance loss recoverable and recoveries on unpaid losses reflected in the preceding table was primarily due to a decrease in changes in assumptions on insured RMBS transactions . Loss and LAE Activity The Company’s financial guarantee insurance losses and LAE (excluding insured credit derivatives and consolidated VIEs) , net of reinsurance for the three months ended March 31, 2017 and 2016 are presented in the following table: Three Months Ended March 31, In millions 2017 2016 U.S. Public Finance Insurance Segment $ 11 $ 9 International and Structured Finance Insurance Segment: Second-lien RMBS 23 12 First-lien RMBS 57 26 CDOs 2 (31) Other (1) 1 6 Losses and LAE expense (benefit) $ 94 $ 22 ________________ (1) - Includes non-U.S. public finance and other issues. For the three months ended March 31, 2017 , losses and LAE primarily related to increases in expected payments on insured RMBS transactions and decreases in projected collections from excess spread within insured RMBS securitizations. For the three months ended March 31, 2016 , losses and LAE primarily related to increases in expected payments on insured first-lien RMBS transactions and certain Puerto Rico exposu r es and decreases in projected collections from excess spread within insured second-lien RMBS securitizations. These were partially offset by de creases in expected payments related to CDOs . Costs associated with remediating insured obligations assigned to the Company’s surveillance categories are recorded as LAE and included in “Losses and loss adjustment” expenses on the Company’s consolidated statements of operations. For the three months ended March 31, 2017 and 2016 , gross LAE related to remediating insured obligations were $ 12 million and $ 8 million , respectively. Surveillance Categories T h e f ol l owin g t abl e p r o v ide s in f o rm a t i o n a bou t t h e f i nan c ia l gu a r a n t e e s an d r el a t e d c la i m li a bili t y i n c lude d i n ea ch of M B I A ’ s s u rv e i llan ce c a t ego r ie s a s o f March 31, 2017 : Surveillance Categories Caution Caution Caution List List List Classified $ in millions Low Medium High List Total Number of policies 89 5 3 326 423 Number of issues (1) 18 4 2 122 146 Remaining weighted average contract period (in years) 7.6 4.1 24.4 7.7 9.0 Gross insured contractual payments outstanding: (2) Principal $ 2,779 $ 14 $ 792 $ 6,081 $ 9,666 Interest 2,729 3 3,538 2,612 8,882 Total $ 5,508 $ 17 $ 4,330 $ 8,693 $ 18,548 Gross Claim Liability (3) $ - $ - $ - $ 721 $ 721 Less: Gross Potential Recoveries - - - 704 704 Discount, net (4) - - - (35) (35) Net claim liability (recoverable) $ - $ - $ - $ 52 $ 52 Unearned premium revenue $ 8 $ - $ 25 $ 65 $ 98 __________ (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. (4) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries. T h e f ol l owin g t abl e p r o v ide s in f o rm a t i o n a bou t t h e f i nan c ia l gu a r a n t e e s an d r el a t e d c la i m li a bili t y i n c lude d i n ea ch of M B I A ’ s s u rv e i llan ce c a t ego r ie s a s o f December 31, 2016 : Surveillance Categories Caution Caution Caution List List List Classified $ in millions Low Medium High List Total Number of policies 90 6 3 331 430 Number of issues (1) 17 4 2 126 149 Remaining weighted average contract period (in years) 7.5 3.4 7.2 7.0 7.1 Gross insured contractual payments outstanding: (2) Principal $ 2,917 $ 17 $ 320 $ 7,031 $ 10,285 Interest 2,795 4 107 2,777 5,683 Total $ 5,712 $ 21 $ 427 $ 9,808 $ 15,968 Gross Claim Liability (3) $ - $ - $ - $ 718 $ 718 Less: Gross Potential Recoveries - - - 770 770 Discount, net (4) - - - (75) (75) Net claim liability (recoverable) $ - $ - $ - $ 23 $ 23 Unearned premium revenue $ 9 $ - $ 8 $ 68 $ 85 __________ (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 and Zohar II exposures are net of expected recoveries. (4) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries. The gross claim liabilities in the preceding tables represent the Company’s estimate of undiscounted probability-weighted estimated future claim payments. The gross claim liability with respect to Puerto Rico exposure as of March 31, 2017 and December 31, 2016, and the Zohar II exposure as of December 31, 2016, is net of expected recoveries. As of March 31, 2017 and December 31, 2016 , the gross claim liability primarily related to insured first-lien R MBS transactions. The gross potential recoveries represent the Company’s estimate of undiscounted probability-weighted recoveries of actual claim payments and recoveries of estimated future claim payments. Gross potential recoveries exclude amounts related to Puerto Rico exposure as of March 31, 2017 and December 31, 2016, and the Zohar II exposure as of December 31, 2016 that ha ve been netted against the claim liability. As of March 31, 2017 and December 31, 2016 , the gross potential recoveries pr incipally related to U.S. public finance transactions and insured second-lien RMBS transactions. As of March 31, 2017, these potential recoveries exclude the recoveries of Zohar I and Zohar II that are included in “Loans receivable at fair value” which are presented in “Assets of consolidated variable interest entities” on the Company’s consolidated balance sheets . The Company’s recoveries have been, and remain based on either salvage rights, the rights conferred to MBIA through the transactional documents (inclusive of the insurance agreement), or subrogation rights embedded within financial guarantee insurance policies. Expected salvage and subrogation recoveries, as well as recoveries from other remediation efforts, reduce the Company’s claim liability. O nce a claim payment has been made, the claim liability has been satisfied and MBIA’s right to recovery is no longer considered an offset to future expected claim payments, it is recorded as a salvage asset. The amount of recoveries recorded by the Company is limited to paid claims plus the present value of projected estimated future claim payments. As claim payments are made, the recorded amount of potential recoveries may exceed the remaining amount of the claim liability for a given policy. The gross clai m liability and gross potential recoveries reflect the elimination of claim liabilities and potential recoveries related to VIEs consolidated by the Company. As of March 31, 2017 and December 31, 2016 , reinsurance recoverable on paid and unpaid lo sses was $ 6 million and w as included in “ Other assets ” on the Company’s consolidated balance sheets. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Fair Value Measurement | Note 6: Fair Value of Financial Instruments Fair Value Measurement Financial Assets Financial assets held by the Company primarily consist of investments in debt securities. Substantially all of the Company’s investments are priced by independent third parties, including pricing services and brokers. Typically, the Company receives one pricing service v alue or broker quote for each instrument, which represents a non-binding indication of value. The Company, along with its third-party portfolio manager, reviews the assumptions, inp uts and methodologies used by pricing services and brokers to obtain reason able assurance that the prices used in its valuations reflect fair value. When the Company and its third-party portfolio manager believe a third-party quotation differs significantl y from its internally developed expectation of fair value, whether higher or lower, the Company reviews its data or assumptions with the provider. This review includes comparing significant assumptions such as prepayment speeds, default ratios, forward yie ld curves, credit spreads and other significant quantitative inputs to internal assumptions, and working with the price provider to reconcile the differences. The price provider may subsequently provide an updated price. In the event that the price provide r does not update its price, and the Company still does not agree with the price provided, its third-party portfolio manager will obtain a price from another third-party provider or use an internally developed price which it believes represents the fair va lue of the investment. The fair values of investments for which internal prices were used were not significant to the aggregate fair value of the Company’s investment portfolio as of March 31, 2017 or 2016 . All challenges to third-party prices are reviewed by staff of the Company as well as its third-party portfolio manager with relevant expertise to ensure reasonableness of assumptions. A pricing analysis is reviewed and approved by the Company’s v aluation c ommittee. Financial Liabilities (excludi ng derivative liabilities) Financial liabilities, excluding derivative liabilities, issued by the Company primarily consist of debt issued for general corporate purposes within its corporate segment, medium-term notes (“ MTNs ”), investment agreements , debt issued by consolidated VIEs and warrants. The majority of the financial liabilities that the Company has elected to fair value or that require fair value reporting or disclosures are valued based on the estimated value of the underlying collateral, the Com pany’s or a third-party’s estimate of discounted cash flow model estimates, or quoted market values for similar products. These valuations include adjustments for expected nonperformance risk of the Company. Derivative Liabilities The Company’s derivative liabilities are primarily interest rate swaps and insured credit derivatives . The Company’s insured credit derivative contracts are non-traded structured credit derivative transactions. Since insured derivatives are highly customized and there is generally no observable market for these derivatives, the Company estimates their fair values in a hypothetical market based on internal models simulating what a similar company would charge to assume the Company’s position in the transaction at the measurement dat e. This pricing would be based on the expected loss of the exposure. The Company reviews its valuation model results on a quarterly basis to assess the appropriateness of the assumptions and results in light of current market activity and conditions. This review is performed by internal staff with relevant expertise. When market spreads or securities prices are observable for similar transactions, those spreads are an integral part of the analysis. Internal Review Process All significant financial assets and liabilities are reviewed by the valuation committee to ensure compliance with the Company’s policies and risk procedures in the development of fair values of financial assets and liabilities. Th e valuation committee review s , among other things, key ass umptions used for internally developed prices, significant changes in sources and uses of inputs, including changes in model approaches, and any adjustments from third-party inputs or prices to internally developed inputs or prices. The committee also revi ew s any significant impairment or improvements in fair values of the financial instruments from prior periods. The committee is comprised of senior finance team members with relevant experience in the financial instruments their committee is responsible fo r. T he committee document s its agreement with the fair value measurements reported in the Company’s consolidated financial statements. Valuation Techniques Valuation techniques for financial instruments measured at fair value or disclosed at fair value are described below. Fixed-Maturity Securities (including short-term investments) Held as Available-For-Sale, Investments Carried at Fair Value, Investments Pledged as Collateral, Investments Held-to-Maturity, and Other Investments These investments include i nvestments in U.S. Treasury and government agencies, state and municipal bonds, foreign governments, corporate obligations, mortgage-backed securities (“MB S ”) , asset-backed securities (“ ABS ”) , money market securities, and perpetual debt and equity securiti es. These investments are generally valued based on recently executed transaction prices or quoted market prices. When quoted market prices are not available, fair value is generally determined using quoted prices of similar investments or a valuation m odel based on observable and unobservable inputs. Inputs vary depending on the type of investment. Observable inputs include contractual cash flows, interest rate yield curves, 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 and the value of any credit enhancement. The investment in the fixed - i ncome fund was measured at fair value by applying the net asset value per share practical expedient. The investment in the fixed - income fund may be redeemed on a quarterly basis with prior redemption notification of ninety days subject to withdrawal limita tions. The investment is required to be held for a minimum of twelve months, and any subsequent quarterly redemption is limited to 25% of the investment or a complete redemption over four consecutive quarters in the amounts of 25%, 33%, 50%, and 100% of th e remaining investment balance as of the first, second, third and fourth consecutive quarters, respectively. The fair value of the held-to-maturity (“ HTM ”) investments is determined using discounted cash flow models. Key inputs include unobservable cash flows projected over the expected term of the investment discounted using observable interest rate yield curves of similar securities. Investments based on q uoted 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, foreign government , money market securities and perpetual de bt and equity securities . 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 Leve l 2 of the fair value hierarchy. Investments that contain significant inputs that are not observable are categorized as Level 3. Cash and Cash Equivalents, Receivable for Investments Sold, Payable for Investments Purchas ed, and Accrued Investment Income The carrying amounts of cash and cash equivale nts, receivable for investments sold, securities sold, not yet purchased, payable for investments purchased, and accrued investment income approximate fair values due to the sh ort-term nature and credit worthiness of these instruments. These items are categorized in Level 1 or Level 2 of the fair value hierarchy. Loans Receivable at Fair Value Loans receivable at fair value are comprised of loans held by consolidated VIEs consis ting of residential mortgage and corporate loans. Fair values of residential mortgage loans are determined using quoted prices for MBS issued by the respective VIE and adjusted for the fair values of the financial guarantees provided by MBIA Corp. on the r elated MBS. Fair values of corporate l oans are based on discounted cash flow methodologies . Loans receivable at fair value are categorized in Level 3 of the fair value hierarchy based on an unobservable input that is significant to the fair value measureme nt in its entirety. Loan Repurchase Commitments Loan repurchase commitments are obligations owed by the sellers/servicers of mortgage loans to MBIA as reimbursement of paid claims. Loan repurchase commitments are assets of the consolidated VIEs. This asset represents the rights of MBIA against the sellers/servicers for breaches of representations and warranties that the securitized residential mortgage loans sold to the trust to comply with stated underwriting guidelines and for the sellers/servicers to cur e, replace, or repurchase mortgage loans. Fair value measurements of loan repurchase commitments represent the amounts owed by the sellers/servicers to MBIA as reimbursement of paid claims. Loan repurchase commitments are not securities and no quoted price s or comparable market transaction information are observable or available. Fair values of loan repurchase commitments are determined using discounted cash flow techniques and are categorized in Level 3 of the fair value hierarchy . Long-term Debt The fair value of long-term notes, debentures and surplus notes are estimated based on quoted prices for the se or similar securities. The fair value of the accrued interest expense on the surplus notes due in 2033 is determined based on the scheduled interest payme nts discounted by the market’s perception of the credit risk related to the repayment of the surplus notes. The credit risk related to the repayment of the surplus notes is based on recent trades of the surplus notes. The carrying amounts of accrued inte rest expense on all other long-term debt approximate fair value due to the short-term nature of the interest payment. Long-term debt is categorized in Level 2 of the fair value hierarchy. Medium- t erm Notes The fair values of certain MTNs are based on quote d 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 consider ing the MTNs’ stated maturity and interest rate. Nonperformance risk is included in the quoted market prices and the matrix pricing grid. The Company has elected to measure certain MTNs at fair value on a recurring basis with changes in fair value reflecte d in earnings. MTNs are categorized in Level 3 of the fair value hierarchy. Investment Agreements The fair values of investment agreements are determined using discounted cash flow techniques based on contractual cash flows and observable interest rates cu rrently being offered for similar agreements with comparable maturity dates. Investment agreements contain collateralization and termination agreements that substantially mitigate the nonperformance risk of the Company. As the terms of the notes are privat e, and the timing and amount of contractual cash flows are not observable, these investment agreements are categorized in Level 3 of the fair value hierarchy. Variable Interest Entity Notes The fair values of VIE notes are determined based on recently exec uted 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. Fair values based on quoted prices of similar securities may be adjusted for f actors unique to the securities, including any credit enhancement. When observable quoted prices are not available, fair value is determined based on discounted cash flow techniques of the underlying collateral using observable and unobservable inputs. Obs ervable inputs include interest rate yield curves and bond spreads of similar securities. Unobservable inputs include the value of any credit enhancement. VIE notes are categorized in Level 2 or 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 OTC 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 Lev el 2 or 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—Insurance The derivative contracts insured by the Company cannot be legally traded and generally do not have observable market prices. The Company determines the fair values of insured credit derivatives using valuation models based on observable inputs and considering nonperformance risk of the Company . Negotiated settlements are also considered to validate the valuation models and to reflect assumptions the Company believes market participant s would use . Valuation Model Overv iew For the three months ended March 31, 2017, the Company used an internally developed Direct Price Model to value insured CDS contracts that incorporate market prices or estimated prices of similar securities that are obtained for all collateral within a transaction, the present value of the market-implied potential losses, and nonperformance risk. The valuation of insured derivatives includes the impact of its credit standing. The insured credit derivatives are categorized as Level 3 of the fair value hi erarchy based on unobservable inputs that are significant to the fair value measurement in its entirety. Prior to 2017, t he Company use d the B inomial E xpansion T echnique (“BET”) Model and the Direct Price Model to value insured CDS contracts. The BET Model estimate s what a bond insurer would charge to guarantee a transaction at the measurement date, based on the market-implied default risk of the underlying collateral and the remaining structural protection in a deductible or subordination. Inputs to the pr ocess of determining fair value for structured transactions using the BET Model include estimates of collateral loss, allocation of loss to separate tranches of the capital structure, credit spreads, recovery rates and nonperformance risk and weighted aver age life. A significant driver of changes in fair value is MBIA Corp.’s nonperformance risk. In aggregate, the nonperformance calculation resulted in a pre-tax net insured derivative liability that was $ 12 million and $ 11 million lower than the net liability that would have been estimated if MBIA Corp. excluded nonperformance risk in its valuation as of March 31, 2017 and December 31, 2016 , respectively. The Company has also entered into a derivative contract as a result of a commutation. The fair value of the derivative is determined using a discounted cash flow model. Key inputs include unobservable cash flows projected over the expected term of the derivative, discounted using observable discount rates and CDS spreads. Warrants Stock warrants issued by the Company are valued using the Black-Scholes model and are recorded at fair value. Inputs into the warrant valuation include the Company’s stock price, a volatility parameter, interest rates, and dividend data. As all s ignificant inputs are market-based and observable, warrants are categorized in Level 2 of the fair value hierarchy. Held For Sale As of December 31, 2016, the Company estimated the fair value of the assets and liabilities of MBIA UK held for sale based on the fair value of the expected total consideration for the sale of MBIA UK. The fair value of the sale consideration is categorized in Level 2 of the fair value hierarchy. Refer to “Note 1: Business Developments and Risks and Uncertainties” for additional information about the sale of MBIA UK. Financial Guarantees Gross Financial Guarantees —The fair value of gross financial guarantees is determined using discounted cash flow techniques based on inputs that include (i) assumptions of expected losses on fi nancial guarantee policies where loss reserves have not been recognized, (ii) amount of losses expected on financial guarantee policies where loss reserves have been established, net of expected recoveries, (iii) the cost of capital reserves required to su pport the financial guarantee liability, (iv) operating expenses, and (v) discount rates. The MBIA Corp. CDS spread and recovery rate are used as the discount rate for MBIA Corp., while the CDS spread and recovery rate of a similar municipal bond insuranc e company are used as the discount rate for National, as National does not have a published CDS spread and recovery rate. The carrying value of the Company’s gross financial guarantees consists of unearned premium revenue and loss and LAE reserves, net of the insurance loss recoverable as reported on MBIA’s consolidated balance sheets. Ceded Financial Guarantees — The fair value of ceded financial guarantees is determined by applying the percentage ceded to reinsurers to the related fair value of the gross financial guarantees. The carrying value of ceded financial guarantees consists of prepaid reinsurance premiums and reinsurance recoverable on paid and unpaid losses as reported within “Other assets” on the Company’s consolidated balance sheets. Significa nt 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 March 31, 2017 and December 31, 2016 . These tables exclude inputs used to measure fair value that are not developed by the Company, such as broker prices and other third-party pricing service valuations. Fair Value as of Range March 31, (Weighted In millions 2017 Valuation Techniques Unobservable Input Average) Assets of consolidated VIEs: Loans receivable at fair value $ 1,716 Market prices adjusted for financial Impact of financial guarantee 0% - 34% (5%) guarantees provided to VIE obligations Discounted cash flow Multiples (1) Loan repurchase commitments 409 Discounted cash flow Recovery rates (2) Breach rates (2) Liabilities of consolidated VIEs: Variable interest entity notes 491 Market prices of VIE assets Impact of financial guarantee 0% - 63% (26%) adjusted for financial guarantees provided Credit derivative liabilities, net: CMBS and multi-sector CDO 86 Direct Price Model Nonperformance risk 46% - 46% (46%) Other derivative liabilities 20 Discounted cash flow Cash flows $0 - $83 ($42) (3) ____________ (1) - Unobservable inputs are not developed by the Company. (2) - Recovery rates and breach rates include estimates about potential variations in the outcome of litigation with a counterparty. (3) - Midpoint of cash flows are used for the weighted average. Fair Value as of Range December 31, (Weighted In millions 2016 Valuation Techniques Unobservable Input Average) Assets of consolidated VIEs: Loans receivable at fair value $ 916 Market prices adjusted for financial Impact of financial guarantee 0% - 28% (3%) guarantees provided to VIE obligations Discounted cash flow Multiples (1) Loan repurchase commitments 404 Discounted cash flow Recovery rates (2) Breach rates (2) Liabilities of consolidated VIEs: Variable interest entity notes 476 Market prices of VIE assets Impact of financial guarantee 0% - 54% (24%) adjusted for financial guarantees provided Credit derivative liabilities, net: CMBS 62 BET Model Recovery rates 25% - 40% (33%) Nonperformance risk 10% - 32% (32%) Weighted average life (in years) 1.1 - 1.5 (1.3) CMBS spreads 25% - 35% (30%) Multi-sector CDO 2 Direct Price Model Nonperformance risk 58% - 58% (58%) Other derivative liabilities 20 Discounted cash flow Cash flows $0 - $83 ($42) (3) ____________ (1) - Unobservable inputs are not developed by the Company. (2) - Recovery rates and breach rates include estimates about potential variations in the outcome of litigation with a counterparty. (3) - Midpoint of cash flows are used for the weighted average. Sensitivity of Significant Unobservable Inputs The significant unobservable input s used in the fair value measurement of the Company’s loans receivable at fair value of consolidated VIEs are t he impact of the financial guarantee and multiples . The fair value of loans receivable are calculated by subtracting the value of the financial guarantee from the market value of VIE liabilities and by discounted cash flow methodologies . The value of a financial guarantee is estimated by the Company as th e present value of expected cash payments under the policy. As expected cash payments provided by the Company under the insurance policy increase , there is a lower expected cash flow on the underlying loans receivable of the VIE. This results in a lower fa ir value of the loans receivable in relation to the obligations of the VIE. The significant unobservable inputs used in the fair value measurement of the Company’s loan repurchase commitments of consolidated VIEs are the recovery rates and breach rates. Re covery rates reflect the estimates of future cash flows reduced for litigation delays and risks and/or potential financial distress of the sellers/servicers. The estimated recoveries of the loan repurchase commitments may differ from the actual recoveries that may be received in the future. Breach rates represent the rate at which mortgages fail to comply with stated representations and warranties of the sellers/servicers. Significant increases or decreases in the recovery rates and the breach rates would r esult in significantly higher or lower fair values of the loan repurchase commitments, respectively. Additionally, changes in the legal environment and the ability of the counterparties to pay would impact the recovery rate assumptions, which could signifi cantly impact the fair value measurement. Any significant challenges by the counterparties to the Company’s determination of breaches of representations and warranties could have a material adverse impact on the fair value measurement. Recovery rates and b reach rates are determined independently. Changes in one input will not necessarily have any impact on the other input. The significant unobservable input used in the fair value measurement of the Company’s VIE notes of consolidated VIEs is the impact of t he 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. The value of a financial guarantee is estimated by the Company as the present value of expected cash payment s under the policy. As the value of the guarantee provided by the Company to the obligations issued by the VIE increases, the credit support adds value to the liabilities of the VIE. This results in an increase in the fair value of the liabilities of the V IE. The significant unobservable input s used in the fair value measurement of MBIA Corp. ’s commercial mortgage-backed securities (“CMBS”) credit derivatives, and multi-sector CDO credit derivatives, which are valued using the Direct Price Model, is nonperformance risk. The nonperformance risk is an as sumption of MBIA Corp.’s own ability to pay and whether MBIA Corp. will have the necessary resources to pay the obligations as they come due. Any significant increase or decrease in MBIA Corp.’s nonperformance risk would result in a decrease or increase in the fair value of the derivative liabilities, respectively. The significant unobservable input used in the fair value measurement of MBIA Corp.’s other derivatives, which are valued using a discounted cash flow m odel , is the estimates of future cash flows discounted usin g market rates and CDS spreads. Any significant increase or decrease in future cash flows would result in a n increase or decrease in the fair value of the derivative liabilit y , respectively . Fair Value Measurements The following tables present the fair val ue of the Company’s assets (including short-term investments) and liabilities measured and reported at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 : Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Counterparty for Identical Observable Unobservable and Cash Balance as of Assets Inputs Inputs Collateral March 31, In millions (Level 1) (Level 2) (Level 3) Netting 2017 Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 785 $ 110 $ - $ - $ 895 State and municipal bonds - 1,404 1 (1) - 1,405 Foreign governments - 10 - - 10 Corporate obligations 75 1,417 - - 1,492 Mortgage-backed securities: Residential mortgage-backed agency - 791 - - 791 Residential mortgage-backed non-agency - 54 - - 54 Commercial mortgage-backed - 40 - - 40 Asset-backed securities: Collateralized debt obligations - 39 13 (1) - 52 Other asset-backed - 261 5 (1) - 266 Total fixed-maturity investments 860 4,126 19 - 5,005 Money market securities 271 - - - 271 Perpetual debt and equity securities 27 9 - - 36 Fixed-income fund - - - - 78 (2) Cash and cash equivalents 112 - - - 112 Derivative assets: Non-insured derivative assets: Interest rate derivatives - 3 - - 3 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Counterparty for Identical Observable Unobservable and Cash Balance as of Assets Inputs Inputs Collateral March 31, In millions (Level 1) (Level 2) (Level 3) Netting 2017 Assets of consolidated VIEs: Corporate obligations - 19 6 (1) - 25 Mortgage-backed securities: Residential mortgage-backed non-agency - 145 - - 145 Commercial mortgage-backed 4 45 - - 49 Asset-backed securities: Collateralized debt obligations - 7 1 (1) - 8 Other asset-backed - 18 1 (1) - 19 Cash 40 - - - 40 Loans receivable at fair value: Residential loans receivable - - 844 - 844 Corporate loans receivable - - 872 - 872 Loan repurchase commitments - - 409 - 409 Derivative assets: Currency derivatives - - 13 (1) - 13 Total assets $ 1,314 $ 4,372 $ 2,165 $ - $ 7,929 Liabilities: Medium-term notes $ - $ - $ 104 (1) $ - $ 104 Derivative liabilities: Insured derivatives: Credit derivatives - 2 86 - 88 Non-insured derivatives: Interest rate derivatives - 205 - - 205 Other - - 20 - 20 Other liabilities: Warrants - 13 - - 13 Liabilities of consolidated VIEs: Variable interest entity notes - 815 491 - 1,306 Total liabilities $ - $ 1,035 $ 701 $ - $ 1,736 ____________ (1) - Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities. (2) - Investment that was measured at fair value by applying the net asset value per share practical expedient, and was required not to be classified in the fair value hierarchy. Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Counterparty for Identical Observable Unobservable and Cash Balance as of Assets Inputs Inputs Collateral December 31, In millions (Level 1) (Level 2) (Level 3) Netting 2016 Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 825 $ 112 $ - $ - $ 937 State and municipal bonds - 1,440 - - 1,440 Foreign governments - 9 - - 9 Corporate obligations - 1,332 2 (1) - 1,334 Mortgage-backed securities: Residential mortgage-backed agency - 868 - - 868 Residential mortgage-backed non-agency - 45 - - 45 Commercial mortgage-backed - 43 - - 43 Asset-backed securities: Collateralized debt obligations - 7 15 (1) - 22 Other asset-backed - 257 44 (1) - 301 Total fixed-maturity investments 825 4,113 61 - 4,999 Money market securities 521 - - - 521 Perpetual debt and equity securities 26 9 - - 35 Fixed-income funds - - - - 75 (2) Cash and cash equivalents 163 - - - 163 Derivative assets: Non-insured derivative assets: Interest rate derivatives - 3 - - 3 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Counterparty for Identical Observable Unobservable and Cash Balance as of Assets Inputs Inputs Collateral December 31, In millions (Level 1) (Level 2) (Level 3) Netting 2016 Assets of consolidated VIEs: Corporate obligations - 27 - - 27 Mortgage-backed securities: Residential mortgage-backed non-agency - 149 - - 149 Commercial mortgage-backed - 52 - - 52 Asset-backed securities: Collateralized debt obligations - 7 1 (1) - 8 Other asset-backed - 18 1 (1) - 19 Cash 24 - - - 24 Loans receivable at fair value: Residential loans receivable - - 916 - 916 Corporate loans receivable - - 150 (1) - 150 Loan repurchase commitments - - 404 - 404 Derivative assets: Currency derivatives - - 19 (1) - 19 Total assets $ 1,559 $ 4,378 $ 1,552 $ - $ 7,564 Liabilities: Medium-term notes $ - $ - $ 101 (1) $ - $ 101 Derivative liabilities: Insured derivatives: Credit derivatives - 2 64 - 66 Non-insured derivatives: Interest rate derivatives - 213 - - 213 Other - - 20 - 20 Other liabilities: Warrants - 33 - - 33 Liabilities of consolidated VIEs: Variable interest entity notes - 875 476 - 1,351 Total liabilities $ - $ 1,123 $ 661 $ - $ 1,784 ____________ (1) - Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities. (2) - Investment that were measured at fair value by applying the net asset value per share practical expedient, and was required not to be classified in the fair value hierarchy. Level 3 assets at fair value as of March 31, 2017 and December 31, 2016 represented approximately 27 % and 21 %, respectively, of total assets measured at fair value. Level 3 liabilities at fair value as of March 31, 2017 and December 31, 2016 represented approximately 40 % and 37 %, respectively, of total liabilities measured at fair value. The following tables present the fair values and carrying va lues 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 March 31, 2017 and December 31, 2016 : 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 March 31, March 31, In millions (Level 1) (Level 2) (Level 3) 2017 2017 Assets: Other investments $ - $ 2 $ - $ 2 $ 2 Accrued investment income (1) - 37 - 37 37 Receivable for investments sold (1) - 52 - 52 52 Assets of consolidated VIEs: Investments held-to-maturity - - 879 879 890 Total assets $ - $ 91 $ 879 $ 970 $ 981 Liabilities: Long-term debt $ - $ 1,047 $ - $ 1,047 $ 2,034 Medium-term notes - - 456 456 726 Investment agreements - - 496 496 390 Payable for investments purchased (2) - 89 - 89 89 Liabilities of consolidated VIEs: Variable interest entity notes - 337 874 1,211 1,211 Total liabilities $ - $ 1,473 $ 1,826 $ 3,299 $ 4,450 Financial Guarantees: Gross $ - $ - $ 2,499 $ 2,499 $ 986 Ceded - - 35 35 43 __________ (1) - Reported within "Other assets" on MBIA's consolidated balance sheets. (2) - Reported within "Other liabilities" on MBIA's consolidated balance sheets. 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) 2016 2016 Assets: Other investments $ - $ 2 $ - $ 2 $ 3 Accrued investment income (1) - 40 - 40 40 Assets held for sale - 306 - 306 306 Assets of consolidated VIEs: Investments held-to-maturity - - 876 876 890 Total assets $ - $ 348 $ 876 $ 1,224 $ 1,239 Liabilities: Long-term debt $ - $ 1,030 $ - $ 1,030 $ 1,986 Medium-term notes |
Investments
Investments | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Investments | Note 7: Investments Investments, excluding those elected under the fair value option, include debt and equity securities classified as either AFS or HTM. Other AFS investments primarily comprise money market funds. T h e f o l l o w i n g t a b l e s p r e s en t t h e a m o r t i z e d c o st , f a i r v a l u e , corresponding gross unrealized gains and losses and other-than-temporary impairments (“ OTTI”) for AFS and HTM investments in the Company’s c o n s o l i d a te d i n v es t m en t p o r tf o l i o a s o f March 31, 2017 a nd December 31, 2016 : March 31, 2017 Gross Gross Other-Than- Amortized Unrealized Unrealized Fair Temporary In millions Cost Gains Losses Value Impairments (1) AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 865 $ 31 $ (8) $ 888 $ - State and municipal bonds 1,364 60 (20) 1,404 - Foreign governments 10 1 (1) 10 - Corporate obligations 1,495 20 (90) 1,425 (63) Mortgage-backed securities: Residential mortgage-backed agency 796 2 (13) 785 - Residential mortgage-backed non-agency 59 1 (6) 54 (2) Commercial mortgage-backed 38 - - 38 - Asset-backed securities: Collateralized debt obligations 52 - - 52 - Other asset-backed 257 2 (1) 258 1 Total fixed-maturity investments 4,936 117 (139) 4,914 (64) Money market securities 267 - - 267 - Perpetual debt and equity securities 3 1 - 4 - Total AFS investments $ 5,206 $ 118 $ (139) $ 5,185 $ (64) HTM Investments Assets of consolidated VIEs: Corporate obligations $ 890 $ - $ (11) $ 879 $ - Total HTM investments $ 890 $ - $ (11) $ 879 $ - _______________ (1) - Represents unrealized gains or losses on OTTI securities recognized in AOCI, which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities reported in AOCI. December 31, 2016 Gross Gross Other-Than- Amortized Unrealized Unrealized Fair Temporary In millions Cost Gains Losses Value Impairments (1) AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 909 $ 30 $ (10) $ 929 $ - State and municipal bonds 1,382 72 (15) 1,439 - Foreign governments 8 - - 8 - Corporate obligations 1,352 20 (102) 1,270 (73) Mortgage-backed securities: Residential mortgage-backed agency 871 3 (12) 862 - Residential mortgage-backed non-agency 50 1 (6) 45 (3) Commercial mortgage-backed 41 - - 41 - Asset-backed securities: Collateralized debt obligations 22 - - 22 - Other asset-backed 294 2 (3) 293 1 Total fixed-maturity investments 4,929 128 (148) 4,909 (75) Money market securities 517 - - 517 - Perpetual debt and equity securities 4 1 - 5 - Total AFS investments $ 5,450 $ 129 $ (148) $ 5,431 $ (75) HTM Investments Assets of consolidated VIEs: Corporate obligations $ 890 $ - $ (14) $ 876 $ - Total HTM investments $ 890 $ - $ (14) $ 876 $ - _______________ (1) - Represents unrealized gains or losses on OTTI securities recognized in AOCI, which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities reported in AOCI. T h e f ol l owin g t abl e p r e s en t s t h e di s t r i bu t io n b y c on t r a c t u a l m a t u r i t y o f AFS and HTM f i x ed -m a t u r i t y securities at a m o r t i z e d c o st a n d f ai r v alu e a s o f March 31, 2017 . Con t r a c t ua l m a t u r i t y m a y d i f f e r f r o m e x pe c t e d m a t u r i t y a s bo rr ow e r s m a y h a v e t h e r igh t t o c a l l o r p r e p a y ob l iga t ion s. AFS Securities HTM Securities Consolidated VIEs Amortized Amortized In millions Cost Fair Value Cost Fair Value Due in one year or less $ 400 $ 399 $ - $ - Due after one year through five years 1,209 1,215 - - Due after five years through ten years 773 727 - - Due after ten years 1,352 1,386 890 879 Mortgage-backed and asset-backed 1,202 1,187 - - Total fixed-maturity investments $ 4,936 $ 4,914 $ 890 $ 879 Deposited and Pledged Securities T h e f ai r v alu e o f s e c u r i t ie s o n depo s i t wi t h v a r io u s r egu l a t o r y au t ho r i t ie s a s o f March 31, 2017 and December 31, 2016 wa s $ 10 million and $ 11 million, respectively . T h e se d epo s i t s a re r equi r e d t o c o m p l y wi t h s t a t e in s u r an ce law s. Pursuant to the Company’s tax sharing agreement, securities held by MBIA Inc. in the Tax Escrow Account are included as “Investments pledged as collateral, at fair value” on the Company’s consolidated balance sheets. I n v e s t m en t ag r ee m en t obligations r equ i re t h e Co m pan y t o ple d g e s e c u r i t i e s a s c o lla t e r al. Securities pledged in connection with investment agreement s may not be repled ged by the investment agreement counterparty. As o f March 31, 2017 a nd December 31, 2016 , t h e f ai r v a l u e o f s e c u r i t ie s p ledge d a s c olla t e r a l for these in v e s t m en t ag r e e m e n t s app r o x i m a t e d $ 415 m i llio n an d $ 416 m i l lion , r e s p e c t i v e l y . T h e Co m pan y ’ s c olla t e r a l a s o f March 31, 2017 c on s i s t e d p r i n c ipal l y o f U . S . T r ea s u ry a n d go v e r n m en t ag e n cy and state and municipal bonds , and wa s p r i m a r il y hel d wi t h m a j o r U . S. ban ks. A ddi t io n all y, t h e Co m pan y pledg e d c a sh an d m one y m a rk e t s e c u r i t i e s as c oll a t e r a l u n de r i n v e s t m en t a g r ee m en t s of $ 6 m il l io n a s o f December 31, 2016 . Impaired Investments The following tables present the gross unrealized losses related to AFS and HTM investments as of March 31, 2017 and December 31, 2016 : March 31, 2017 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 $ 479 $ (8) $ - $ - $ 479 $ (8) State and municipal bonds 441 (20) 8 - 449 (20) Foreign governments 3 (1) - - 3 (1) Corporate obligations 549 (26) 68 (64) 617 (90) Mortgage-backed securities: Residential mortgage-backed agency 464 (10) 104 (3) 568 (13) Residential mortgage-backed non-agency 11 - 28 (6) 39 (6) Commercial mortgage-backed 12 - 12 - 24 - Asset-backed securities: Collateralized debt obligations 4 - 13 - 17 - Other asset-backed 125 (1) 2 - 127 (1) Total AFS investments $ 2,088 $ (66) $ 235 $ (73) $ 2,323 $ (139) HTM Investments Assets of consolidated VIEs: Corporate obligations $ - $ - $ 879 $ (11) $ 879 $ (11) Total HTM investments $ - $ - $ 879 $ (11) $ 879 $ (11) December 31, 2016 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 $ 432 $ (10) $ - $ - $ 432 $ (10) State and municipal bonds 339 (13) 18 (2) 357 (15) Foreign governments 5 - - - 5 - Corporate obligations 534 (29) 52 (73) 586 (102) Mortgage-backed securities: Residential mortgage-backed agency 436 (9) 122 (3) 558 (12) Residential mortgage-backed non-agency 1 - 29 (6) 30 (6) Commercial mortgage-backed 6 - 15 - 21 - Asset-backed securities: Collateralized debt obligations 7 - 15 - 22 - Other asset-backed 112 (1) 49 (2) 161 (3) Total AFS investments $ 1,872 $ (62) $ 300 $ (86) $ 2,172 $ (148) HTM Investments Assets of consolidated VIEs: Corporate obligations $ - $ - $ 876 $ (14) $ 876 $ (14) Total HTM investments $ - $ - $ 876 $ (14) $ 876 $ (14) With the weighting applied on the fair value of each security relative to the total fair value, the weighted average contract ual maturity of securities in an unrealized loss position as of March 31, 2017 and December 31, 2016 was 21 and 22 years , respectively . As of March 31, 2017 and December 31, 2016 , there were 37 and 46 securities, respectively, that were in an unrealized loss position for a continuous twelve-month period or longer, of which , fair value s of 13 and 12 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 valu e by more than 5% as of March 31, 2017 : AFS Securities HTM Securities Percentage of Fair Value Number of Book Value Fair Value Number of Book Value Fair Value Below Book Value Securities (in millions) (in millions) Securities (in millions) (in millions) > 5% to 15% 7 $ 15 $ 14 - $ - $ - > 15% to 25% 4 31 25 - - - > 25% to 50% 1 1 - - - - > 50% 1 101 38 - - - Total 13 $ 148 $ 77 - $ - $ - 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 w ould 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 March 31, 2017 that would require the sale of impaired securities. Impaired securities tha t the Company intends to sell before the expected recovery of such securities’ fair values have been written down to fair value. Other-Than-Temporary Impairments The Company’s fixed - maturity securities for which fair value is less than amortized cost are reviewed quarterly in order to determin e whether a credit loss exists. The portion of certain OTTI losses on fixed - maturity securities that does not represent credit losses is recognized in accumulated other comprehensive income (loss) (“AOCI”). Refer to “Note 8: Investments” in the Notes to Con solidated Financial Statements included in the Company’s Annual Report on Form 10 - K for the year ended December 31, 2016 for a discussion of the Company’s policy for OTTI and its determination of credit loss. The following table presents the amount of credi t loss impairments recognized in earnings on fixed - maturity securities held by M BIA as of the dates indica ted, for which a portion of the OTTI losses was recognized in AOCI, and the corresponding changes in such amounts. The additional credit loss impairment for the three months ended March 31, 2017 was primarily related to one impair ed security for which a loss was recognized as the difference between its amortized cost and the net present value of its projected cash flows. This OTTI resulted from liquidity concerns and other adverse financial conditions of the issuer. In millions Three Months Ended March 31, Credit Losses Recognized in Earnings Related to Other-Than-Temporary Impairments 2017 2016 Beginning balance $ 29 $ 26 Additions for credit loss impairments recognized in the current period on securities previously impaired 2 - Ending balance $ 31 $ 26 (1) - Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security's amortized cost. The Company does not recognize OTTI 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 March 31, 2017 that were in an unrealized loss position and insured by a financial guarantor, along with the amount of insurance loss reserves corresponding to the pa r amount owned by the Company: Unrealized Insurance Loss In millions Fair Value Loss Reserve (2) Asset-backed: MBIA (1) $ 13 $ - $ - Mortgage-backed: MBIA (1) 16 (3) 16 Corporate obligations: MBIA (1) 41 (2) - Other: MBIA (1) 6 - - Other 2 - - Total $ 78 $ (5) $ 16 _______________ (1) - Includes investments insured by MBIA Corp. and National. (2) - Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured. Sales of Available-for-Sale Investments Gross r eali z e d ga i n s and l o s s e s are recorded within “Net gains (losses) on financial instruments at fair value and foreign exchange” 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 months ended March 31, 2017 and 2016 are as follows: Three Months Ended March 31, In millions 2017 2016 Proceeds from sales $ 271 $ 281 Gross realized gains 4 10 Gross realized losses (1) (4) |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Derivative Instruments | Note 8: Derivative Instruments U.S. Public Finance Insurance The Company’s derivative exposure within its U.S. public finance insurance operations primarily consists of insured interest rate and inflation-linked swaps related to insured U.S. public finance debt issues. These derivatives do not qualify for the financial guarantee scope exception and are accounted for as derivative instruments . Corporate The Company has entered into derivative instrument s primarily consisting of interest rate swaps to manage the risks a ssociated with fluctuations in interest rates affecting the value of certain assets . I n t e r na t i on a l and S t r u c t u r e d F i n an c e I n s u r an c e The Company has entered into derivative instrument s to provide financial guarantee insurance to structured finance transactions that do not qualify for the financial guarantee scope exception and, therefore, are accounted for as derivative s . These insured CDS contracts, primarily referencing CMBS, R MBS and A BS , are intended to be held f or the entire term of the contract unless a settlement with the counterparty is negotiated . The Company no longer insures new CDS contracts except for transactions related to the restructuring or reduction of existing derivative exposure . The Company’s derivative exposure within its international and structured finance insurance segment also includes insured interest rate and inflation-linked swaps related to insured debt issues. The Company has also entered into a derivative contract as a result of a commutation occurring in 2014. Changes in the fair value of the Company’s non-insured derivative are i ncluded in “Net gains (losses) on financial instruments at fair value and foreign exchange” on the Company’s consolidated statements of operations. Variable Interest Entities VIEs consolidated by the Company have entered into derivative instrument s consis ting of interest rate swaps, interest rate caps and cross currency swaps . Interest rate swaps and i nterest rate caps are entered into to mitigate the risks associated with fluctuations in interest rates or fair values of certain contracts. Cross currency s waps are entered into to manage the variability in cash flows resulting from fluctuations in foreign currency rates . Credit Derivatives Sold The following table s present information about credit derivatives sold by the Company’s insurance operations that were outstanding as of March 31, 2017 and December 31, 2016 . Credit ratings represent the lower of underlying ratings assigned to the collateral by Moody’s, S&P or MBIA. $ in millions As of March 31, 2017 Notional Value Credit Derivatives Sold Weighted Average Remaining Expected Maturity AAA AA A BBB Below Investment Grade Total Notional Fair Value Asset (Liability) Insured credit default swaps 3.9 Years $ - $ - $ 115 $ - $ 415 $ 530 $ (86) Insured swaps 16.0 Years - 133 2,009 731 20 2,893 (2) Total notional $ - $ 133 $ 2,124 $ 731 $ 435 $ 3,423 Total fair value $ - $ - $ (1) $ (1) $ (86) $ (88) $ in millions As of December 31, 2016 Notional Value Credit Derivatives Sold Weighted Average Remaining Expected Maturity AAA AA A BBB Below Investment Grade Total Notional Fair Value Asset (Liability) Insured credit default swaps 3.8 Years $ - $ - $ 115 $ - $ 473 $ 588 $ (64) Insured swaps 15.7 Years - 137 2,146 732 20 3,035 (2) Insured swaps - held for sale 14.3 Years - - - 420 - 420 - Total notional $ - $ 137 $ 2,261 $ 1,152 $ 493 $ 4,043 Total fair value $ - $ - $ (1) $ (1) $ (64) $ (66) Internal credit ratings assigned by MBIA on the underlying collateral are derived b y t h e Co m pan y ’ s s u r v e ill a n ce g r ou p . I n a ss ign i n g a n i n t e r n a l r a t i n g , c u rr en t s t a t u s r epo r t s f r o m i ss ue rs an d t r u s t ee s, a s w el l a s p ubli c l y a v ai l able t r a n s a c t i o n - s p e c i f i c i n f o rm a t ion , a re r e v iew e d . A l s o , whe re ap p r o p r ia t e , c a sh f l o w a n al ys e s an d c ol l a t e r a l v a l ua t ion s a re c on s id e r e d . T h e m a x i m u m p o t e n t i a l a m o u n t o f f u t u re p a y m en t s ( u n di sc oun t ed ) o n C D S c on t r a c t s a re e s t i m a t e d a s t he no t ion a l v a l u e plu s an y a d di t iona l d e b t s e rv i ce c o s t s, s u ch a s in t e r e st o r o t h e r a m ou n t s owin g o n CD S c on t r a c t s . T he m a x i m u m a m oun t o f f u t u re debt service pa ym en t s t ha t MB I A m a y b e r equi r e d t o m a ke und e r t he se g uarantees as of March 31, 2017 i s $ 575 million . T h e m a x i m u m po t en t ia l a m ou n t o f f u t u re pa ym en t s ( un d i s c o un t ed ) o n i n s u r e d s w a p s a re e s t i m a t e d a s t he no t ion a l v a l u e o f s u ch c o n t r a c t s. M B I A m a y hol d r e c ou rse p r o v i s ion s wi t h t hi rd pa r t ie s i n de r i v a t i ve instrument s t h r o u g h s ub r o ga t i on r igh t s , wh e r e b y i f M B I A m a k e s a c lai m pa ym en t , i t may be en t i t l e d t o an y r i gh t s o f t h e in s u r ed c oun t e r pa r t y, in c lu d in g t h e r ig h t t o an y a ss e t s hel d a s c o lla t e r al. 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 t o the holder to pay for replacing the counterparty in the event that the counterparty defaults. As of March 31, 2017 , the Company did not hold cash collateral to derivative counterparties but posted cash collateral to derivative counterparties of $ 9 million. All of the $ 9 million is included within “Other liabilities” as cash collateral netted against accrued interest on derivative liabilities. As of December 31, 2016 , the Company did not hold cash collateral to derivative counterparties but posted cash collateral to derivative counterparties of $ 1 million. All of the $ 1 million is included within “Other liabilities” as cash collateral netted against accrued interest on derivat ive liabilities . As of March 31, 2017 and December 31, 2016 , the Company had securities with a fair value of $ 257 million and $ 276 million , respectively, posted to derivative counterparties and th ese amount s are included within “Fixed-maturity securities held as available-for-sale, at fair value” on the Company’s consolidated balance sheets. As of March 31, 2017 and December 31, 2016 , the fair value on one Credit Support Annex (“CSA”) was $ 3 mil lion. 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 March 31, 2017 and December 31, 2016 , the counterpart y was rated A1 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 CDS and insured swaps are not subject to master netting agreements. VIE derivative assets and liabilities are not presented net of any m aster netting agreements. Counterparty netting of derivative assets and liabilities offsets balances in “Interest rate swaps” as of March 31, 2017 . The followi ng table presents the total fair value of the Company’s derivative assets and liabilities by instrument and balance sheet location, before counterparty netting and posting of cash collateral, as of March 31, 2017 : 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 credit default swaps $ 530 Other assets $ - Derivative liabilities $ (86) Insured swaps 2,893 Other assets - Derivative liabilities (2) Interest rate swaps 1,057 Other assets 3 Derivative liabilities (205) Interest rate swaps-embedded 382 Medium-term notes 2 Medium-term notes (15) Currency swaps-VIE 70 Other assets-VIE 13 Derivative liabilities-VIE - All other 83 Other assets - Derivative liabilities (20) All other-VIE 3 Other assets-VIE - Derivative liabilities-VIE - All other-embedded 2 Other investments - Other investments - Total non-designated derivatives $ 5,020 $ 18 $ (328) __________ (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. The following table presents the total fair value of the Company’s derivat ive assets and liabilities by instrument and balance sheet location, before counterparty netting and posting of cash collateral , as of December 31, 2016 : 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 credit default swaps $ 588 Other assets $ - Derivative liabilities $ (64) Insured swaps 3,035 Other assets - Derivative liabilities (2) Insured swaps - held for sale 420 Other assets - Derivative liabilities - Interest rate swaps 1,062 Other assets 3 Derivative liabilities (213) Interest rate swaps-embedded 376 Medium-term notes 2 Medium-term notes (17) Currency swaps-VIE 71 Other assets-VIE 20 Derivative liabilities-VIE - All other 83 Other assets - Derivative liabilities (20) All other-VIE 35 Other assets-VIE - Derivative liabilities-VIE - All other-embedded 5 Other investments - Other investments - Total non-designated derivatives $ 5,675 $ 25 $ (316) __________ (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. T h e f ol l owin g t able p r e s en t s t h e e f f e ct o f d e r i v a t i ve i n s t r u m en t s o n t h e c o n s olida t e d s t a t e m en t s o f ope r a t ion s f o r t h e three months ended March 31, 2017 and 2016 : In millions Derivatives Not Designated as Three Months Ended March 31, Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2017 2016 Insured credit default swaps Unrealized gains (losses) on insured derivatives $ (22) $ (14) Insured credit default swaps Realized gains (losses) and other settlements on insured derivatives (31) (14) Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange 4 (50) Interest rate swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE - 8 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE (6) (5) All other Net gains (losses) on financial instruments at fair value and foreign exchange - (2) Total $ (55) $ (77) |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Note 9: Debt The Com pany has disclosed its debt in “Note 10: Debt” in the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The following debt discussion is an update and should be read in conjunction with the Company’s Annual Report on Form 10-K. Other Borrowing Arrangements MBIA Corp. Financing Facility In connection with the Zohar II Claim in January of 2017, MBIA Corp. entered into the Facility. The initial outsta nding principal amount of the Facility was $ 366 million, of which, $38 million of subordinated financing was provided by MBIA Inc. and eliminated in consolidation. As of March 31, 2017, the consolidated outstanding amount of the Facility was $ 321 million a nd included in “ Variable interest entity notes ” which is presented in “ Liabilities of consolidated variable interest entities” on the Company’s consolidated balance sheets. Under the Facility, MBIA Inc. has agreed to provide an additional $ 50 million subor dinated financing to MZ Funding, which MZ Funding would then lend to MBIA Corp., if needed by MBIA Insurance Corporation for liquidity purposes. The Facility is secured by a first priority security interest in all of MBIA Corp.’s right, title and interest in the recovery of its claims from the assets of Zohar I and Zohar II which include, among other things, loans made to, and equity interests in, companies purportedly controlled by the Zohar Sponsor and any claims that the Company may have against the Zoha r Sponsor. MBIA Corp. was obligated to pay a commitment fee of $ 10 million for this facility. The Facility mature s on January 20, 2020 and bear s interest at 14% per annum. If funds received from MBIA Corp. under the Facility are insufficient to pay interest on interest payment dates, MZ Funding may elect to pay interest in kind, which increases the outstanding principal amount. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Income Taxes | Note 10: Income Taxes The Company’s i n c o m e t a x e s a nd t he r e l a t e d e f f e c ti v e t a x r a t e s f o r t he three months ended March 31, 2017 a nd 2016 a re a s fo l l o ws : Three Months Ended March 31, In millions 2017 2016 Income (loss) before income taxes $ (120) $ (101) Provision (benefit) for income taxes $ (48) $ (23) Effective tax rate 40.0% 22.8% F or the three months ended March 31, 2017 , the Company’s effective tax rate applied to its loss before income taxes is greater than the U.S. statutory tax rate primarily due to tax- exempt interest income and the fluctuation of the value of nontaxable warrants issued by the Company. F or the three months ended March 31, 2016 , the Company’s effective tax rate applied to its loss before income taxes is less than the U.S. statutory effective tax rate primarily due to a foreign tax credit adjustment and the fluctuation of the value of nondeductible warrants issued by the Company. Deferred Tax Asset, Net of Valuation Allowance The Company has come to the conclusion that it is more likely than not that its net deferred tax asset, other than that portion of the asset related to foreign tax credits which have been claimed on its prior years’ tax returns and are being carried forward, will be fully realized after weighing all positive and negative evidence available as required under GAAP. The positive evidence that was considered included the cumulative operating income the Company has earned over the last three years, and the significant unearned premium income to be included in taxable income. The positive evidence outweighs any negative evidence that exists. As such, the Company believes that no valuation allowance is necessary in connection with this deferred tax asset. The Company will continue to analyze the need for a valuation allowance on a quarterly basis. However, as the prediction of adequate future taxable income and foreign sourced income within the carryforward period is not assured, the Company has concluded that a valuation allowance for the foreign tax credits being carried forward is appropriate. As of March 31, 2017 and December 31, 2016 , the valuation allowance was $ 62 million and $ 7 million, respectively. The increase in the Company’s valuation allowan ce was primarily related to foreign tax credits that were generated as a result of the sale of MBIA UK. A cc o u n t i n g f o r U n c e r t a i n t y i n I n c o m e T ax e s The C o m p a ny ’ s po l i c y is t o r eco r d a n d d i s c l o s e an y c h an g e i n unrecognized tax benefits (“ U T B ”) an d r e l a t e d i n t e r es t a n d /or p e n a l t i e s t o i n c o m e t a x i n t h e co n s o l i d a t e d s t a t e m en t s o f o pe r a t i ons . The Company includes interest as a component of income tax expense. As of March 31, 2017 and December 31, 2016 , the Company had no UTB. Federal income tax returns through 2011 have been examined or surveyed. As of March 31, 2017 , the Company’s net operating loss (“NOL”) is approximately $ 2.6 billion . The NOL will expire between tax years 20 30 through 203 4 . As of March 31, 2017 , the Company has a foreign tax credit carryforward of $ 62 million, which will expire between tax years 2019 through 2027. As of March 31, 2017 , the Company has an alternative minimum tax credit carryforward of $ 2 6 million, which does not expire. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Business Segments | Note 11: Business Segments As defined by segment reporting, an operating segment is a com ponent 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 oper ating 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 segment is principally conducted 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 su bject to acceleration, except that National may have the right, at its discretion, to accelerate insured obligations upon default or otherwise. National issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utilit ies , airports, health care institutions, higher educational facilities, student loan issuers, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serv e 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 simila r types of revenue streams. Corporate The Company’s corporate segment consists of general corporate activities, including providing general support services to MBIA Inc. ’s subsidiaries as well as asset and capital management. General support services are provided by the Company’s service company , MBIA Services Corporation (“MBIA Services”) , and include , among others, management, legal, acco unting, 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 subsidiaries, MBIA Global Funding, LLC (“GFL”) a nd MBIA Investment Management Corp. (“IMC”) . 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 thes e MTN issuances to MBIA Inc. IMC, along with MBIA Inc., 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 rese rve fund requirements. The Company has ceased issuing these MTNs and investment agreements and the outstanding liability balances and corresponding asset balances have declined over time as liabilities mature, terminate or are retired. All of the debt with in 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 f inancial 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 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 Corp. insures debt obligations of the following affiliates: MBIA Inc.; GFL; IMC; and LaCrosse Financial Products, LLC, a wholly-owned affiliate, in which MBIA Insurance Corp oration ha s written insurance policies guaranteeing the obligations under CDS . Certain policies cover payments potentially due under CDS, including termination payments that may become due in certain circumstances, including the occurrence of certain insolvency or payment defaults under the CDS or derivatives contracts by the insured counterparty or by the guarantor. MBIA Corp. insure s non -U.S. public finance and global structured finance insured 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, airp orts, 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 speci fied pool of assets, such as residential and commercial mortgages, insurance policies, consumer loans, corporate loans and bonds, trade and export receivables, and leases for equipment, aircraft and real estate property. MBIA Corp. has also written policie s guaranteeing obligations under certain other derivative contracts, including termination payments that may become due upon certain insolvency or payment defaults of the financial guarantor or the issuer. The Company is no longer insuring new credit deriv ative contracts except for transactions related to the restructuring or reduction of existing derivative exposure. MBIA Corp. has not written any meaningful amount of business since 2008. Segments Results The following tables provide the Company’s segment results for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, 2017 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 68 $ 8 $ 27 $ - $ 103 Net change in fair value of insured derivatives - - (53) - (53) Net gains (losses) on financial instruments at fair value and foreign exchange 4 16 (3) - 17 Net investment losses related to other-than-temporary impairments (2) - - - (2) Net gains (losses) on extinguishment of debt - 8 - - 8 Other net realized gains (losses) - (1) 4 - 3 Revenues of consolidated VIEs - - 1 - 1 Inter-segment revenues (2) 5 16 9 (30) - Total revenues 75 47 (15) (30) 77 Losses and loss adjustment 11 - 83 - 94 Operating 10 18 8 - 36 Interest - 22 26 - 48 Expenses of consolidated VIEs - - 19 - 19 Inter-segment expenses (2) 15 1 14 (30) - Total expenses 36 41 150 (30) 197 Income (loss) before income taxes 39 6 (165) - (120) Provision (benefit) for income taxes 12 (4) (57) 1 (48) Net income (loss) $ 27 $ 10 $ (108) $ (1) $ (72) Identifiable assets $ 5,128 $ 2,335 $ 6,502 $ (2,948) (3) $ 11,017 ________________ (1) - Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. (2) - Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. (3) - Consists of intercompany deferred income taxes, reinsurance balances and repurchase agreements. Three Months Ended March 31, 2016 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 84 $ 5 $ 26 $ - $ 115 Net change in fair value of insured derivatives - - (28) - (28) Net gains (losses) on financial instruments at fair value and foreign exchange 9 (84) 6 - (69) Net investment losses related to other-than-temporary impairments - (1) - - (1) Net gains (losses) on extinguishment of debt - 2 - - 2 Other net realized gains (losses) - (1) - - (1) Revenues of consolidated VIEs - - 14 - 14 Inter-segment revenues (2) 6 16 12 (34) - Total revenues 99 (63) 30 (34) 32 Losses and loss adjustment 9 - 13 - 22 Operating 9 22 14 - 45 Interest - 23 27 - 50 Expenses of consolidated VIEs - - 16 - 16 Inter-segment expenses (2) 18 - 14 (32) - Total expenses 36 45 84 (32) 133 Income (loss) before income taxes 63 (108) (54) (2) (101) Provision (benefit) for income taxes 22 (24) (23) 2 (23) Net income (loss) $ 41 $ (84) $ (31) $ (4) $ (78) Identifiable assets $ 5,268 $ 2,478 $ 7,845 $ (2,840) (3) $ 12,751 ________________ (1) - Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. (2) - Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. (3) - Consists of intercompany deferred income taxes, reinsurance balances and repurchase agreements. Pr e m iu ms o n f inan c ia l g u a r an t ee s a n d i n s u r e d de r i v a t i v e s r ep o r t e d wi t hi n t h e C o m p an y ’ s i n s u r an ce s e g m e n t s a re gen e r a t e d wi t hi n a n d o u t s id e t h e U . S. T h e f o l lowin g t abl e s u m m a r i z e s p r e m iu ms ea r ne d o n f i nan c ia l gu a r a n t e e s and in s u r e d d e r i v a t i v e s b y g eog r aph i c l o c a t i o n o f r i sk f o r t h e three months ended March 31, 2017 and 2016 : Three Months Ended March 31, In millions 2017 2016 Total premiums earned: United States $ 41 $ 59 United Kingdom - 7 Europe (excluding United Kingdom) 1 1 Other Americas 7 7 Asia - 1 Other 1 1 Total $ 50 $ 76 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Earnings Per Share | Note 12: Earnings Per Share Earnings p e r s h a r e 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 and restricted stock units 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 par ticipating 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 s ecurities since they do not share in the losses of the Company. Basic earnings per share excludes dilution and is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the peri od. Diluted earnings per share reflects the dilutive effect of all stock options, warrants and unvested restricted stock outstanding during the period that could potentially result in the issuance of common stock. The dilution from stock options, warrants and unvested restricted stock are calculated by applying the two-class method and using the treasury stock method. The treasury stock method assumes the proceeds from the exercise of stock options and warrants or 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. During periods of net loss, stock options, warrants and unvested restricted stock are excluded from the calculation becau se they would have an antidilutive affect. Therefore, in periods of net loss, the calculation of basic and diluted earnings per share would result in the same value. T h e followin g tabl e present s th e computation of basic and diluted earnings per share f o r th e three months ended March 31, 2017 and 2016 : Three Months Ended March 31, $ in millions except per share amounts 2017 2016 Basic earnings per share: Net income (loss) available to common shareholders $ (72) $ (78) Basic weighted average shares (1) 131.4 135.8 Net income (loss) per basic common share $ (0.55) $ (0.58) Diluted earnings per share: Net income (loss) available to common shareholders (72) (78) Diluted weighted average shares 131.4 135.8 Net income (loss) per diluted common share $ (0.55) $ (0.58) Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect 14.8 16.7 _________________ (1) - Includes 0.3 million and 0.7 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the three months ended March 31, 2017 and 2016, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Accumulated Other Comprehensive Income [Text Block] | Note 13: Accumulated Other Comprehensive Income T h e followin g tabl e present s th e changes in the components of AOCI fo r th e three months ended March 31, 2017 : Unrealized Gains (Losses) on AFS Foreign Currency In millions Securities, Net Translation, Net Total Balance, December 31, 2016 $ 6 $ (134) $ (128) Other comprehensive income (loss) before reclassifications (26) 123 97 (1) Amounts reclassified from AOCI - - - Total other comprehensive income (loss) (26) 123 97 Balance, March 31, 2017 $ (20) $ (11) $ (31) ________________ (1) - Represents items included in the Company's loss calculation to adjust the carrying value of MBIA UK to its fair value less costs to sell for the year ended December 31, 2016. The sale was completed in January of 2017 and as such, these amounts included in AOCI were reversed and included in the Sale Transaction. T h e followin g tabl e present s th e details of the reclassifications from AOCI fo r th e three months ended March 31, 2017 and 2016 : In millions Amounts Reclassified from AOCI Three Months Ended March 31, Details about AOCI Components 2017 2016 Affected Line Item on the Consolidated Statements of Operations Unrealized gains (losses) on AFS securities: Realized gains (losses) on sale of securities $ 2 $ 8 Net gains (losses) on financial instruments at fair value and foreign exchange OTTI (2) - Net investment losses related to OTTI Amortization on securities - (3) Net investment income - 5 Income (loss) before income taxes - 2 Provision (benefit) for income taxes Total reclassifications for the period $ - $ 3 Net income (loss) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Commitments and Contingencies | Note 14: Commitments and Contingencies The following commitments and contingencies provide an update of those discussed in “Note 2 1 : 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, 2016 , and should be read in conjunction with the complete descriptions provided in the aforementioned Form 10-K. Litigation MBIA Insurance Corp. v. Credit Suisse Securities (USA) LLC, et al. ; Index No. 603751/2009 (N.Y. Sup. Ct., N.Y. County) E xpert discovery concluded in March of 2016 . On March 31, 2017, the court granted in part and denied in part MBIA’s summary judgment motion . The parties have each filed cross-appeals from the court’s March 31, 2017 decision and order. MBIA Insurance Corp. v. J.P. Morgan Securities LLC (f/k/a Bear, Stearns & Co. Inc.) ; Index No. 64676/2012 (N.Y. Sup. Ct., County of Westchester) On June 6, 2016, the court denied J.P. Morgan’s motion for summary judgment. J.P. Morgan filed a notice of a ppeal of that ruling on July 6, 2016. On November 2, 2016, the Second Department of the Appellate Division of the New York State Supreme Court (the “Second Department”) issued a decision on J.P. Morgan’s separate appeal, and MBIA Corp.’s cross appeal, from the trial court’s Order of September 18, 2014, which had granted MBIA’s motion for leave to amend its complaint to assert a cause of action for fraudulent concealment, and denied its motion to amend its complaint to assert cause of action alleging materia l misrepresentation in the procurement of an insurance contract brought under common law as informed by NYIL Section 3105. The Second Department decision affirmed the Order as it pertained to allowing the assertion of the fraudulent concealment claim, and reversed it as to the denial of the motion to add the claim of material misrepresentation in the procurement of an insurance contract. On April 3, 2017, MBIA voluntarily dismissed its claim for material misrepresentation in the procurement of an insurance contract as informed by NYIL Section 3105. A trial date has been set for October 10, 2017. Ambac Bond Insurance Coverage Cases, Coordinated Proceeding Case No. JCCP 4555 (Super. Ct. of Cal., County of San Francisco) Following a n appeal of the dismissal of the plaintiff’s anti-trust claim under California’s Cartwright Act , the California Court of Appeal reinstated those claims against the bond insurer defendants on February 18 , 201 6 . On April 8, 2016, Judge Mary E. Wiss recused a nd disqualified herself from further proceedings in the matter. On April 14, 2016, Judge Curtis E. A. Karnow was assigned to sit as the Coordination Trial Judge. On June 24, 2016, the defendants, including the MBIA parties, filed their answers to the compl aints. Lynn Tilton and Patriarch Partners XV, LLC v. MBIA Inc. and MBIA Insurance Corp. v. ; Index No.68880/2015 (N.Y. Sup. Ct., County of Westchester) On November 2, 2015, Lynn Tilton and Patriarch Partners XV, LLC filed a complaint in New York State Supre me Court, Westchester County, against MBIA Inc. and MBIA Corp., alleging fraudulent inducement and related claims arising from purported promises made in connection with insurance policies issued by MBIA Corp. on certain collateralized loan obligations man aged by Ms. Tilton and affiliated Patriarch entities, and seeking damages. The plaintiffs filed an amended complaint on January 15, 2016. On December 27, 2016, Justice Alan D. Scheinkman granted in part and denied in part MBIA’s motion to dismiss. On Janua ry 17, 2017, MBIA filed its answer. A scheduling order was entered on January 6, 2017 setting a Trial Readiness Conference for October 19, 2017. National Public Finance Guarantee Corporation v. Padilla, Civ. No. 16-cv-2101 (D.P.R. June 15, 2016) (Besosa, J .) On June 15, 2016, National filed a complaint in federal court in Puerto Rico challenging the Puerto Rico Emergency Moratorium and Financial Rehabilitation Act (Law 21-2016 or the “Moratorium Act”) as unconstitutional under the United States Constitution . On June 22, 2016, National filed a motion for partial summary judgment on its claim that the Moratorium Act is preempted by the federal Bankruptcy Code. On July 7, 2016, the Puerto Rico defendants filed a motion to stay the case pursuant to the Puerto Ri co Oversight, Management and Economic Stability Act (“PROMESA”), which was granted by the Court in August of 2016 . The defendants filed their answer to the c omplaint on July 26 , 2016. On November 15, 2016, the District Court denied National’s motion to lif t the litigation stay granted pursuant to PROMESA and on January 30, 2017, the District Court denied National’s partial motion for a summary judgement without prejudice. On January 11, 2017, the U.S. Court of Appeals for the First Circuit affirmed the denial of a separate plaintiff’s motion to lift the PROMESA stay in related action challenging the Moratorium Act. Accordingly, the case remained stayed through May 1, 2017, at which time the PROMESA stay expired. However, on May 3, 2017, Puerto Rico filed a Title III petition under PROMESA, thereby staying this dispute under Section 405(e) of PROMESA. Assured Guaranty Corp. et al. v. Commonwealth of Puerto Rico, Case No. 3:17-cv-01578 (D.P.R. May 3, 2017) (Swain, J.) On May 3, 2017, the Financial Oversight and Management Board filed a petition under Title III of PROMESA to adjust the debts of Puerto Rico. On the same day, National, together with Assured Guaranty Corp. and Assured Guaranty Municipal Corp., filed an adversary complaint in the case commenced by the Title III filing, alleging that the Fiscal Plan and the Fiscal Plan Compliance Act, signed into law by the Governor of Puerto Rico on April 29, 2017, violate PROMESA and the United States Constitution. For those aforementioned actions in which it is a defendant, t he Company is defending against th os e actions and expects ultimately to prevail on the merits. There is no assurance, however, that the Company will prevail in these actions. Adverse rulings in these actions could have a material adverse effect on the Company’s ability to implement its strategy and on its business, results of operations, cash flows and financial condition. At this stage of the litigation, there h as not been a determination as to the amount, if any, of damages. Accordingly, the Company is not able to estimate any amount of loss or range of loss. The Company similarly can provide no assurance that it will be successful in those actions in which it i s a plaintiff. There are no other material lawsuits 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 as well as other immaterial leases for offices in New York, New York, San Francisco, California and London, England. The Purchase, New York 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. Th is lease agreement has been classified as an operating lease, and operating rent expense has been recognized on a straight-line basis since the second quarter of 2014 . As of March 31, 2017, total future minimum lease payments remaining on this lease were $ 38 million . |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Subsequent Events | Note 15: Subsequent Events Re f e r t o “ Note 14: Commitments and Contingencies ” f o r in f o rm a t i o n a bou t l e ga l p r o c eed i ng s t ha t o cc u rr e d a f t e r March 31, 2017 . |
Significant Accounting Polici24
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited conso lidated financial statements have been prepared in accordance with the instructions to Fo rm 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 re ad 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, 2016 . The accompanying consolidated financial statements have not been audited by an independent re gistered 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, n ecessary 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 estima tes 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. Actu al 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 months ended March 31, 2017 may not be indicative of the results that may be expected for the year ending December 31, 2017 . The December 31, 2016 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures requi red by GAAP for annual periods. Certain amounts have been reclassified in the prior year ’ s financial statements to conform to the current presentation. This includes a change in the presentation of cash paid when withholding shares for tax-withholding purp oses in “ Purchases of treasury stock ” on the Company’s consolidated statement of cash flows as required under Accounting Standards Update ( “ASU”) 2016-09 , “Compensation-Stock Compensation (Topic 718) ” . The change in presentation effected “ Operating and employee related expenses paid ” , in operating cash flows and “ Purchases of treasury stock ” , in financing cash flows, on the Company’s consolidated statement of cash flows in prior periods. Such reclassifications did not materially impact total revenu es, expenses, assets, liabilities, shareholders’ equity , operating cash flows, investing cash flows, or financing cash flows for all periods presente d. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards The Company has not adopted any new accounting pronouncements that had a material impact on its consolidated financial statements. |
New Accounting Pronouncements Not Yet Adopted | Recent Accounting Developments Revenue from Contracts with Customers (Topic 606) (ASU 2014-09) and Deferral of the Effective Date (ASU 201 5 - 14 ) In May of 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 amends the accounting guidance for recognizing revenue for the transfer of goods or services from contracts with customers unless those contracts are within the scope of other accounting standards. ASU 2014-09 does not apply to financial guarantee insurance contracts within the scope of Topic 944, “Financial Services — Insura nce.” ASU 2014-09 applies to certain fees and reimbursements, and is not expected to materially impact revenue recogni tion of these fees and reimbursements. In August of 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) — Deferral of the Effective Date. ” ASU 2015-14 defers the effective date of ASU 2014-09 to interim and annual periods beginning January 1, 2018, and is applied on a retrospective or modified retrospective basis. The adoption of ASU 2014-09 is not expected to materially impact the Company’s consolidated financial statements. Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) In January of 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 requires certain equity investments other than those accounted for under the equity method of accounting or result in consolidation of the investee to be measured at fair value with changes in fair value recognized in net income, and permits an entity to measure equity investments that do not have readily determinable fair values at cost less any impairment plus or minus adjustments for certain changes in observable prices. An entity is also required to evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale (“AFS”) debt securities in combination with the entity’s other deferred tax assets. ASU 2016-01 requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability that results from a change in t he instrument-specific credit risk for financial liabilities that the entity has elected to measure at fair value in accordance with the fair value option for financial instruments. ASU 2016-01 is effective for interim and annual periods beginning January 1, 2018, and is applied on a modified retrospective basis. Early adoption is not permitted with the exception of early application of the guidance that requires separate presentation in other comprehensive income of the change in the instrument-specific cr edit risk for financial liabilities measured at fair value in accordance with the fair value option . Upon adoption of ASU 2016-01, the Company does not expect there to be a material impact to the Company’s consolidated financial statements. Based on the fa ir values as of March 31, 2017 of financial liabilities measured at fair value in accordance with the fair value option, the cumulative-effect adjustment, net of tax, related to the instrument-specific credit risk portion of such financial liabilities was a gain of approximately $ 100 million , which represents the amount that would have been reclassed from retained earnings to accumulated other comprehensive income (loss) had the Company adopted ASU 2016-01 on March 31, 2017. In addition, based on fair value s as of March 31, 2017 of equity investments, the cumulative-effect adjustment, net of tax, related to net unrealized gains of such investments was approximately $ 0.3 million, which represents the amount that would have been reclassed from accumulated othe r comprehensive income (loss) to retained earnings had the Company adopted ASU 2016-01 on March 31, 2017. The Company plans to adopt ASU 2016-01 in its entirety on January 1, 2018. The amounts provided as of March 31, 2017 are subject to change when the Co mpany adopts ASU 2016-01. Leases (Topic 842) (ASU 2016-02) In February of 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” that amends the accounting guidance for leasing transactions. ASU 2016-02 requires a lessee to classify lease contracts as finance or operating leases, and to recognize assets and liabilities for the rights and obligations created by leasing transactions with lease terms more than twelve months. ASU 2016-02 substantially retains the criteria for classifying leasing transaction s as finance or operating leases. For finance leases, a lessee recognizes a right-of-use asset and a lease liability initially measured at the present value of the lease payments, and recognizes interest expense on the lease liability separately from the a mortization of the right-of-use asset. For operating leases, a lessee recognizes a right-of-use asset and a lease liability initially measured at the present value of the lease payments, and recognizes lease expense on a straight-line basis. ASU 2016-02 is effective for interim and annual periods beginning January 1, 2019 with early adoption permitted, and is applied on a modified retrospective basis. The adoption of ASU 2016-02 is not expected to materially impact the Company’s consolidated financial state ments. Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) In June of 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Fina ncial Instruments.” ASU 2016-13 requires financing receivables and other financial assets measured at amortized cost basis to be presented at the net amount expected to be collected by recording an allowance for credit losses with changes in the allowance recorded as credit loss expense or reversal of credit loss expense based on management’s current estimate of expected credit losses each period. ASU 2016-13 does not apply to credit losses on financial guarantee insurance contracts within the scope of Topi c 944, “Financial Services-Insurance.” ASU 2016-13 also requires impairment relating to credit losses on AFS debt securities to be presented through an allowance for credit losses with changes in the allowance recorded in the period of the change as credit loss expense or reversal of credit loss expense. Any impairment amount not recorded through an allowance for credit losses on AFS debt securities is recorded through other comprehensive income. ASU 2016-13 is effective for interim and annual periods begin ning January 1, 2020 with early adoption permitted beginning January 1, 2019. ASU 2016-13 is applied on a modified retrospective basis except that prospective application is applied to AFS debt securities with other-than-temporary impairments (“OTTI”) reco gnized before the date of adoption. The Company is evaluating the impact of adopting ASU 2016-13. |
Business Developments and Ris25
Business Developments and Risks and Uncertainties (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Assets And Liabilities Held For Sale | As of In millions December 31, 2016 Assets Investments $ 466 Cash and cash equivalents 73 Premiums receivable 267 Other assets 19 Valuation allowance (270) Total assets held for sale $ 555 Liabilities Unearned premium revenue $ 304 Other liabilities 42 Total liabilities held for sale $ 346 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Summary Of Nonconsolidated VIEs Assets And Liabilities | March 31, 2017 Carrying Value of Assets Carrying Value of Liabilities Loss and Loss Maximum Unearned Adjustment VIE Exposure Premiums Insurance Loss Premium Expense In millions Assets to Loss Investments (1) Receivable (2) Recoverable (3) Revenue (4) Reserves (5) Insurance: Global structured finance: Collateralized debt obligations $ 1,955 $ 995 $ 13 $ 1 $ - $ - $ - Mortgage-backed residential 8,575 4,499 20 27 282 25 396 Mortgage-backed commercial 247 132 - - - - - Consumer asset-backed 5,059 1,267 - 6 2 5 10 Corporate asset-backed 2,406 2,015 - 16 - 18 - Total global structured finance 18,242 8,908 33 50 284 48 406 Global public finance 19,035 3,062 - 11 - 18 - Total insurance $ 37,277 $ 11,970 $ 33 $ 61 $ 284 $ 66 $ 406 __________ (1) - Reported within "Investments" on MBIA's consolidated balance sheets. (2) - Reported within "Premiums receivable" on MBIA's consolidated balance sheets. (3) - Reported within "Insurance loss recoverable" on MBIA's consolidated balance sheets. (4) - Reported within "Unearned premium revenue" on MBIA's consolidated balance sheets. (5) - Reported within "Loss and loss adjustment expense reserves" on MBIA's consolidated balance sheets. December 31, 2016 Carrying Value of Assets Carrying Value of Liabilities Loss and Loss Maximum Unearned Adjustment VIE Exposure Premiums Insurance Loss Premium Expense In millions Assets to Loss Investments (1) Receivable (2) Recoverable (3) Revenue (4) Reserves (5) Insurance: Global structured finance: Collateralized debt obligations $ 3,167 $ 1,914 $ 51 $ 2 $ - $ - $ 73 Mortgage-backed residential 9,146 4,796 20 28 304 27 325 Mortgage-backed commercial 257 145 - - - - - Consumer asset-backed 4,893 1,331 - 7 2 5 8 Corporate asset-backed 2,625 2,205 5 18 - 20 - Total global structured finance 20,088 10,391 76 55 306 52 406 Global public finance 44,306 12,051 - 11 - 18 - Total insurance $ 64,394 $ 22,442 $ 76 $ 66 $ 306 $ 70 $ 406 __________ (1) - Reported within "Investments" on MBIA's consolidated balance sheets. (2) - Reported within "Premiums receivable" on MBIA's consolidated balance sheets. Excludes $125 million that is included within “Assets held for sale” on the Company’s consolidated balance sheet. (3) - Reported within "Insurance loss recoverable" on MBIA's consolidated balance sheets. (4) - Reported within "Unearned premium revenue" on MBIA's consolidated balance sheets. Excludes $134 million that is included within “Liabilities held for sale” on the Company’s consolidated balance sheet. (5) - Reported within "Loss and loss adjustment expense reserves" on MBIA's consolidated balance sheets. |
Loss and Loss Adjustment Expe27
Loss and Loss Adjustment Expense Reserves (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Present Value Of The Probability-Weighted Future Claim Payments And Recoveries | As of March 31, 2017 As of December 31, 2016 In millions Balance Sheet Line Item Balance Sheet Line Item Insurance loss recoverable Loan repurchase commitments Loss and LAE reserves Insurance loss recoverable Loan repurchase commitments Loss and LAE reserves U.S. Public Finance Insurance $ 197 $ - $ 106 $ 174 $ - $ 97 International and Structured Finance Insurance: Before VIE eliminations 1,200 409 687 551 404 650 VIE eliminations (911) - (234) (221) - (206) Total international and structured finance insurance 289 409 453 330 404 444 Total $ 486 $ 409 $ 559 $ 504 $ 404 $ 541 |
Schedule Of Loss And Loss Adjustment Expenses Reserves | In millions Changes in Loss and LAE Reserves for the Three Months Ended March 31, 2017 Gross Loss Loss Gross Loss and LAE Payments Accretion Changes in and LAE Reserves as of for Cases of Claim Changes in Unearned Changes in Reserves as of December 31, with Liability Discount Changes in Premium LAE March 31, 2016 Reserves (1) Discount Rates Assumptions Revenue Reserves Other (2) 2017 $ 541 $ (804) $ 1 $ 5 $ 96 $ 4 $ 2 $ 714 $ 559 ____________ (1) - Includes payments made to satisfy the Zohar II Claim. (2) - Primarily changes in the amount to satisfy the Zohar II Claim. |
Schedule Of Insurance Loss Recoverable And Changes In Recoveries On Unpaid Losses | Changes in Insurance Loss Recoverable and Recoveries on Unpaid Losses for the Three Months Ended March 31, 2017 Gross Gross Reserve Collections Reserve as of for Cases Accretion Changes in Changes in as of December 31, with of Discount Changes in LAE March 31, In millions 2016 Recoveries Recoveries Rates Assumptions Recoveries Other (1) 2017 Insurance loss recoverable $ 504 $ (42) $ 2 $ 3 $ (4) $ - $ 23 $ 486 Recoveries on unpaid losses (2) 79 - - 1 (25) (4) - 51 Total $ 583 $ (42) $ 2 $ 4 $ (29) $ (4) $ 23 $ 537 ____________ (1) - Primarily changes in amount and timing of collections. (2) - As of March 31, 2017 and December 31, 2016, excludes Puerto Rico recoveries, and as of December 31, 2016, the Zohar II recoveries, which have been netted against reserves. |
Schedule Of Losses And Loss Adjustment Expenses | Three Months Ended March 31, In millions 2017 2016 U.S. Public Finance Insurance Segment $ 11 $ 9 International and Structured Finance Insurance Segment: Second-lien RMBS 23 12 First-lien RMBS 57 26 CDOs 2 (31) Other (1) 1 6 Losses and LAE expense (benefit) $ 94 $ 22 ________________ (1) - Includes non-U.S. public finance and other issues. |
Schedule Of Financial Guarantees And Related Claim Liability | Surveillance Categories Caution Caution Caution List List List Classified $ in millions Low Medium High List Total Number of policies 89 5 3 326 423 Number of issues (1) 18 4 2 122 146 Remaining weighted average contract period (in years) 7.6 4.1 24.4 7.7 9.0 Gross insured contractual payments outstanding: (2) Principal $ 2,779 $ 14 $ 792 $ 6,081 $ 9,666 Interest 2,729 3 3,538 2,612 8,882 Total $ 5,508 $ 17 $ 4,330 $ 8,693 $ 18,548 Gross Claim Liability (3) $ - $ - $ - $ 721 $ 721 Less: Gross Potential Recoveries - - - 704 704 Discount, net (4) - - - (35) (35) Net claim liability (recoverable) $ - $ - $ - $ 52 $ 52 Unearned premium revenue $ 8 $ - $ 25 $ 65 $ 98 __________ (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. (4) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries. Surveillance Categories Caution Caution Caution List List List Classified $ in millions Low Medium High List Total Number of policies 90 6 3 331 430 Number of issues (1) 17 4 2 126 149 Remaining weighted average contract period (in years) 7.5 3.4 7.2 7.0 7.1 Gross insured contractual payments outstanding: (2) Principal $ 2,917 $ 17 $ 320 $ 7,031 $ 10,285 Interest 2,795 4 107 2,777 5,683 Total $ 5,712 $ 21 $ 427 $ 9,808 $ 15,968 Gross Claim Liability (3) $ - $ - $ - $ 718 $ 718 Less: Gross Potential Recoveries - - - 770 770 Discount, net (4) - - - (75) (75) Net claim liability (recoverable) $ - $ - $ - $ 23 $ 23 Unearned premium revenue $ 9 $ - $ 8 $ 68 $ 85 __________ (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 and Zohar II exposures are net of expected recoveries. (4) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries. |
Fair Value of Financial Instr28
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis | Fair Value as of Range March 31, (Weighted In millions 2017 Valuation Techniques Unobservable Input Average) Assets of consolidated VIEs: Loans receivable at fair value $ 1,716 Market prices adjusted for financial Impact of financial guarantee 0% - 34% (5%) guarantees provided to VIE obligations Discounted cash flow Multiples (1) Loan repurchase commitments 409 Discounted cash flow Recovery rates (2) Breach rates (2) Liabilities of consolidated VIEs: Variable interest entity notes 491 Market prices of VIE assets Impact of financial guarantee 0% - 63% (26%) adjusted for financial guarantees provided Credit derivative liabilities, net: CMBS and multi-sector CDO 86 Direct Price Model Nonperformance risk 46% - 46% (46%) Other derivative liabilities 20 Discounted cash flow Cash flows $0 - $83 ($42) (3) ____________ (1) - Unobservable inputs are not developed by the Company. (2) - Recovery rates and breach rates include estimates about potential variations in the outcome of litigation with a counterparty. (3) - Midpoint of cash flows are used for the weighted average. Fair Value as of Range December 31, (Weighted In millions 2016 Valuation Techniques Unobservable Input Average) Assets of consolidated VIEs: Loans receivable at fair value $ 916 Market prices adjusted for financial Impact of financial guarantee 0% - 28% (3%) guarantees provided to VIE obligations Discounted cash flow Multiples (1) Loan repurchase commitments 404 Discounted cash flow Recovery rates (2) Breach rates (2) Liabilities of consolidated VIEs: Variable interest entity notes 476 Market prices of VIE assets Impact of financial guarantee 0% - 54% (24%) adjusted for financial guarantees provided Credit derivative liabilities, net: CMBS 62 BET Model Recovery rates 25% - 40% (33%) Nonperformance risk 10% - 32% (32%) Weighted average life (in years) 1.1 - 1.5 (1.3) CMBS spreads 25% - 35% (30%) Multi-sector CDO 2 Direct Price Model Nonperformance risk 58% - 58% (58%) Other derivative liabilities 20 Discounted cash flow Cash flows $0 - $83 ($42) (3) ____________ (1) - Unobservable inputs are not developed by the Company. (2) - Recovery rates and breach rates include estimates about potential variations in the outcome of litigation with a counterparty. (3) - Midpoint of cash flows are used for the weighted average. |
Company's Assets And Liabilities Measured At Fair Value On Recurring Basis | Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Counterparty for Identical Observable Unobservable and Cash Balance as of Assets Inputs Inputs Collateral March 31, In millions (Level 1) (Level 2) (Level 3) Netting 2017 Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 785 $ 110 $ - $ - $ 895 State and municipal bonds - 1,404 1 (1) - 1,405 Foreign governments - 10 - - 10 Corporate obligations 75 1,417 - - 1,492 Mortgage-backed securities: Residential mortgage-backed agency - 791 - - 791 Residential mortgage-backed non-agency - 54 - - 54 Commercial mortgage-backed - 40 - - 40 Asset-backed securities: Collateralized debt obligations - 39 13 (1) - 52 Other asset-backed - 261 5 (1) - 266 Total fixed-maturity investments 860 4,126 19 - 5,005 Money market securities 271 - - - 271 Perpetual debt and equity securities 27 9 - - 36 Fixed-income fund - - - - 78 (2) Cash and cash equivalents 112 - - - 112 Derivative assets: Non-insured derivative assets: Interest rate derivatives - 3 - - 3 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Counterparty for Identical Observable Unobservable and Cash Balance as of Assets Inputs Inputs Collateral March 31, In millions (Level 1) (Level 2) (Level 3) Netting 2017 Assets of consolidated VIEs: Corporate obligations - 19 6 (1) - 25 Mortgage-backed securities: Residential mortgage-backed non-agency - 145 - - 145 Commercial mortgage-backed 4 45 - - 49 Asset-backed securities: Collateralized debt obligations - 7 1 (1) - 8 Other asset-backed - 18 1 (1) - 19 Cash 40 - - - 40 Loans receivable at fair value: Residential loans receivable - - 844 - 844 Corporate loans receivable - - 872 - 872 Loan repurchase commitments - - 409 - 409 Derivative assets: Currency derivatives - - 13 (1) - 13 Total assets $ 1,314 $ 4,372 $ 2,165 $ - $ 7,929 Liabilities: Medium-term notes $ - $ - $ 104 (1) $ - $ 104 Derivative liabilities: Insured derivatives: Credit derivatives - 2 86 - 88 Non-insured derivatives: Interest rate derivatives - 205 - - 205 Other - - 20 - 20 Other liabilities: Warrants - 13 - - 13 Liabilities of consolidated VIEs: Variable interest entity notes - 815 491 - 1,306 Total liabilities $ - $ 1,035 $ 701 $ - $ 1,736 ____________ (1) - Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities. (2) - Investment that was measured at fair value by applying the net asset value per share practical expedient, and was required not to be classified in the fair value hierarchy. Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Counterparty for Identical Observable Unobservable and Cash Balance as of Assets Inputs Inputs Collateral December 31, In millions (Level 1) (Level 2) (Level 3) Netting 2016 Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 825 $ 112 $ - $ - $ 937 State and municipal bonds - 1,440 - - 1,440 Foreign governments - 9 - - 9 Corporate obligations - 1,332 2 (1) - 1,334 Mortgage-backed securities: Residential mortgage-backed agency - 868 - - 868 Residential mortgage-backed non-agency - 45 - - 45 Commercial mortgage-backed - 43 - - 43 Asset-backed securities: Collateralized debt obligations - 7 15 (1) - 22 Other asset-backed - 257 44 (1) - 301 Total fixed-maturity investments 825 4,113 61 - 4,999 Money market securities 521 - - - 521 Perpetual debt and equity securities 26 9 - - 35 Fixed-income funds - - - - 75 (2) Cash and cash equivalents 163 - - - 163 Derivative assets: Non-insured derivative assets: Interest rate derivatives - 3 - - 3 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Counterparty for Identical Observable Unobservable and Cash Balance as of Assets Inputs Inputs Collateral December 31, In millions (Level 1) (Level 2) (Level 3) Netting 2016 Assets of consolidated VIEs: Corporate obligations - 27 - - 27 Mortgage-backed securities: Residential mortgage-backed non-agency - 149 - - 149 Commercial mortgage-backed - 52 - - 52 Asset-backed securities: Collateralized debt obligations - 7 1 (1) - 8 Other asset-backed - 18 1 (1) - 19 Cash 24 - - - 24 Loans receivable at fair value: Residential loans receivable - - 916 - 916 Corporate loans receivable - - 150 (1) - 150 Loan repurchase commitments - - 404 - 404 Derivative assets: Currency derivatives - - 19 (1) - 19 Total assets $ 1,559 $ 4,378 $ 1,552 $ - $ 7,564 Liabilities: Medium-term notes $ - $ - $ 101 (1) $ - $ 101 Derivative liabilities: Insured derivatives: Credit derivatives - 2 64 - 66 Non-insured derivatives: Interest rate derivatives - 213 - - 213 Other - - 20 - 20 Other liabilities: Warrants - 33 - - 33 Liabilities of consolidated VIEs: Variable interest entity notes - 875 476 - 1,351 Total liabilities $ - $ 1,123 $ 661 $ - $ 1,784 ____________ (1) - Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities. (2) - Investment that were measured at fair value by applying the net asset value per share practical expedient, and was required not to be classified in the fair value hierarchy. |
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 March 31, March 31, In millions (Level 1) (Level 2) (Level 3) 2017 2017 Assets: Other investments $ - $ 2 $ - $ 2 $ 2 Accrued investment income (1) - 37 - 37 37 Receivable for investments sold (1) - 52 - 52 52 Assets of consolidated VIEs: Investments held-to-maturity - - 879 879 890 Total assets $ - $ 91 $ 879 $ 970 $ 981 Liabilities: Long-term debt $ - $ 1,047 $ - $ 1,047 $ 2,034 Medium-term notes - - 456 456 726 Investment agreements - - 496 496 390 Payable for investments purchased (2) - 89 - 89 89 Liabilities of consolidated VIEs: Variable interest entity notes - 337 874 1,211 1,211 Total liabilities $ - $ 1,473 $ 1,826 $ 3,299 $ 4,450 Financial Guarantees: Gross $ - $ - $ 2,499 $ 2,499 $ 986 Ceded - - 35 35 43 __________ (1) - Reported within "Other assets" on MBIA's consolidated balance sheets. (2) - Reported within "Other liabilities" on MBIA's consolidated balance sheets. 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) 2016 2016 Assets: Other investments $ - $ 2 $ - $ 2 $ 3 Accrued investment income (1) - 40 - 40 40 Assets held for sale - 306 - 306 306 Assets of consolidated VIEs: Investments held-to-maturity - - 876 876 890 Total assets $ - $ 348 $ 876 $ 1,224 $ 1,239 Liabilities: Long-term debt $ - $ 1,030 $ - $ 1,030 $ 1,986 Medium-term notes - - 478 478 794 Investment agreements - - 508 508 399 Payable for investments purchased (2) - 32 - 32 32 Liabilities of consolidated VIEs: Variable interest entity notes - - 882 882 890 Total liabilities $ - $ 1,062 $ 1,868 $ 2,930 $ 4,101 Financial Guarantees: Gross $ - $ - $ 2,638 $ 2,638 $ 995 Ceded - - 18 18 43 __________ (1) - Reported within "Other assets" on MBIA's consolidated balance sheets. (2) - Reported within "Other liabilities" on MBIA's consolidated balance sheets. |
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 March 31, 2017 Change in Unrealized Gains (Losses) for the Period Included in Unrealized Earnings Gains / Unrealized Foreign for Assets (Losses) Gains / Exchange still held Balance, Realized Included (Losses) Recognized Transfers Transfers as of Beginning Gains / in Included in OCI or into out of Ending March 31, In millions of Period (Losses) Earnings in OCI Earnings Purchases Issuances Settlements Sales Level 3 (1) Level 3 (1) Balance 2017 Assets: Corporate obligations 2 - - - - - - - - - (2) - - Collateralized debt obligations 15 - - - - - - (2) - - - 13 - Other asset-backed 44 - - 2 - - - (41) - - - 5 - State and municipal bonds - - - - - - - - - 1 - 1 - Assets of consolidated VIEs: Corporate obligations - - - - - - - - - 6 - 6 - Commercial Collateralized debt obligations 1 - - - - - - - - - - 1 - Other asset-backed 1 - - - - - - - - 1 (1) 1 - Loans receivable- residential 916 - (4) - - - - (68) - - - 844 (3) Loans receivable- corporate 150 - 3 - - 719 - - - - - 872 3 Loan repurchase commitments 404 - 5 - - - - - - - - 409 5 Currency derivatives, net 19 - (3) - (3) - - - - - - 13 (6) Total assets $ 1,552 $ - $ 1 $ 2 $ (3) $ 719 $ - $ (111) $ - $ 8 $ (3) $ 2,165 $ (1) Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended March 31, 2016 Change in Unrealized Gains (Losses) for the Period Included in Unrealized Earnings for Gains / Unrealized Foreign Assets (Losses) Gains / Exchange still held Balance, Realized Included (Losses) Recognized Transfers Transfers as of Beginning Gains / in Included in OCI or into out of Ending March 31, In millions of Period (Losses) Earnings in OCI Earnings Purchases Issuances Settlements Sales Level 3 (1) Level 3 (1) Balance 2016 Assets: Foreign governments $ 2 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2 $ - Corporate obligations 7 - - - - - - - - - (6) 1 - Collateralized debt obligations 29 - - - - - - (3) - - - 26 - Other asset-backed 38 (1) (1) 5 - - - (2) - - - 39 (1) State and municipal bonds 41 - - - - - - (38) - - - 3 - Assets of consolidated VIEs: Corporate obligations 11 - (5) - - - - - - - (5) 1 - Commercial mortgage-backed - - - - - - - - - 2 - 2 - Collateralized debt obligations 1 - - - - - - - - - - 1 - Other asset-backed 6 - (6) - - - - - - 3 - 3 - Loans receivable- residential 1,185 - (14) - - - - (56) - - - 1,115 (14) Loans receivable-corporate 107 - - - - 146 - - - - - 253 - Loan repurchase commitments 396 - 3 - - - - - - - - 399 3 Currency derivatives, net 11 - (6) - - - - - - - - 5 (6) Total assets $ 1,834 $ (1) $ (29) $ 5 $ - $ 146 $ - $ (99) $ - $ 5 $ (11) $ 1,850 $ (18) |
Changes In Level 3 Liabilities Measured At Fair Value On A Recurring Basis | Change in Unrealized (Gains) Losses for the Period Included in Unrealized Earnings for (Gains) / Unrealized Foreign Liabilities Losses (Gains) / Exchange still held Balance, Realized Included Losses Recognized Transfers Transfers as of Beginning (Gains) / in Included in OCI or into out of Ending March 31, In millions of Period Losses Earnings in OCI Earnings Purchases Issuances Settlements Sales Level 3 (1) Level 3 (1) Balance 2017 Liabilities: Medium-term notes $ 101 $ - $ 1 $ - $ 2 $ - $ - $ - $ - $ - $ - $ 104 $ 3 Credit derivatives, net 64 31 22 - - - - (31) - - - 86 22 Other derivatives 20 - - - - - - - - - - 20 - Liabilities of consolidated VIEs: VIE notes 476 - 34 - - - - (19) - - - 491 34 Total liabilities $ 661 $ 31 $ 57 $ - $ 2 $ - $ - $ (50) $ - $ - $ - $ 701 $ 59 _______________ (1) - Transferred in and out at the end of the period. Change in Unrealized (Gains) Losses for the Period Included in Unrealized Earnings for (Gains) / Unrealized Foreign Liabilities Losses (Gains) / Exchange still held Balance, Realized Included Losses Recognized Transfers Transfers as of Beginning (Gains) / in Included in OCI or into out of Ending March 31, In millions of Period Losses Earnings in OCI Earnings Purchases Issuances Settlements Sales Level 3 (1) Level 3 (1) Balance 2016 Liabilities: Medium-term notes $ 161 $ - $ (3) $ - $ 7 $ - $ - $ - $ - $ - $ - $ 165 $ 5 Credit derivatives, net 85 14 14 - - - - (14) - - - 99 16 Other derivatives, net 18 - 1 - - - - - - - - 19 1 Liabilities of consolidated VIEs: VIE notes 1,267 - (22) - - 9 - (78) - - - 1,176 (22) Total liabilities $ 1,531 $ 14 $ (10) $ - $ 7 $ 9 $ - $ (92) $ - $ - $ - $ 1,459 $ - _______________ (1) - Transferred in and out at the end of the period. |
Gains And Losses (Realized And Unrealized) Included In Earnings Pertaining To Level 3 Assets And Liabilities | Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 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 March 31, Included March 31, In millions in Earnings 2017 in Earnings 2016 Revenues: Unrealized gains (losses) on insured derivatives $ (22) $ (22) $ (14) $ (16) Realized gains (losses) and other settlements on insured derivatives (31) - (14) - Net gains (losses) on financial instruments at fair value and foreign exchange (3) (3) (7) (7) Revenues of consolidated VIEs: Net gains (losses) on financial instruments at fair value and foreign exchange (36) (35) (6) 5 Total $ (92) $ (60) $ (41) $ (18) |
Changes In Fair Value Included In The Company's Consolidated Statements Of Operations | Three Months Ended March 31, In millions 2017 2016 Investments carried at fair value (1) $ 3 $ 3 Fixed-maturity securities held at fair value- VIE (2) (8) (85) Loans receivable at fair value: Residential mortgage loans (2) (72) (70) Other loans (2) 3 - Loan repurchase commitments (2) 6 2 Medium-term notes (1) (3) (5) Variable interest entity notes (2) (45) 166 _____________ (1) - Reported within "Net gains (losses) of financial instruments at fair value and foreign exchange" on MBIA's consolidated statements of operations. (2) - Reported within "Net gains (losses) of financial instruments at fair value and foreign exchange-VIE" on MBIA's consolidated statements of operations. |
Difference Between Aggregate Fair Value And The Aggregate Remaining Contractual Principal Balance Outstanding | As of March 31, 2017 As of December 31, 2016 Contractual Contractual Outstanding Fair Outstanding Fair In millions Principal Value Difference Principal Value Difference Loans receivable at fair value: Residential mortgage loans $ 890 $ 822 $ 68 $ 965 $ 894 $ 71 Residential mortgage loans (90 days or more past due) 163 22 141 143 22 121 Corporate loans (90 days or more past due) 890 872 18 150 150 - Total loans receivable at fair value 1,943 1,716 227 1,258 1,066 192 Variable interest entity notes 3,152 1,306 1,846 2,449 1,351 1,098 Medium-term notes 160 104 56 158 101 57 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Amortized Cost And Fair Value Of Available-For-Sale And Held-To-Maturity Investment Portfolios | March 31, 2017 Gross Gross Other-Than- Amortized Unrealized Unrealized Fair Temporary In millions Cost Gains Losses Value Impairments (1) AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 865 $ 31 $ (8) $ 888 $ - State and municipal bonds 1,364 60 (20) 1,404 - Foreign governments 10 1 (1) 10 - Corporate obligations 1,495 20 (90) 1,425 (63) Mortgage-backed securities: Residential mortgage-backed agency 796 2 (13) 785 - Residential mortgage-backed non-agency 59 1 (6) 54 (2) Commercial mortgage-backed 38 - - 38 - Asset-backed securities: Collateralized debt obligations 52 - - 52 - Other asset-backed 257 2 (1) 258 1 Total fixed-maturity investments 4,936 117 (139) 4,914 (64) Money market securities 267 - - 267 - Perpetual debt and equity securities 3 1 - 4 - Total AFS investments $ 5,206 $ 118 $ (139) $ 5,185 $ (64) HTM Investments Assets of consolidated VIEs: Corporate obligations $ 890 $ - $ (11) $ 879 $ - Total HTM investments $ 890 $ - $ (11) $ 879 $ - _______________ (1) - Represents unrealized gains or losses on OTTI securities recognized in AOCI, which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities reported in AOCI. December 31, 2016 Gross Gross Other-Than- Amortized Unrealized Unrealized Fair Temporary In millions Cost Gains Losses Value Impairments (1) AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 909 $ 30 $ (10) $ 929 $ - State and municipal bonds 1,382 72 (15) 1,439 - Foreign governments 8 - - 8 - Corporate obligations 1,352 20 (102) 1,270 (73) Mortgage-backed securities: Residential mortgage-backed agency 871 3 (12) 862 - Residential mortgage-backed non-agency 50 1 (6) 45 (3) Commercial mortgage-backed 41 - - 41 - Asset-backed securities: Collateralized debt obligations 22 - - 22 - Other asset-backed 294 2 (3) 293 1 Total fixed-maturity investments 4,929 128 (148) 4,909 (75) Money market securities 517 - - 517 - Perpetual debt and equity securities 4 1 - 5 - Total AFS investments $ 5,450 $ 129 $ (148) $ 5,431 $ (75) HTM Investments Assets of consolidated VIEs: Corporate obligations $ 890 $ - $ (14) $ 876 $ - Total HTM investments $ 890 $ - $ (14) $ 876 $ - _______________ (1) - Represents unrealized gains or losses on OTTI securities recognized in AOCI, which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities reported in AOCI. |
Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments | AFS Securities HTM Securities Consolidated VIEs Amortized Amortized In millions Cost Fair Value Cost Fair Value Due in one year or less $ 400 $ 399 $ - $ - Due after one year through five years 1,209 1,215 - - Due after five years through ten years 773 727 - - Due after ten years 1,352 1,386 890 879 Mortgage-backed and asset-backed 1,202 1,187 - - Total fixed-maturity investments $ 4,936 $ 4,914 $ 890 $ 879 |
Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments | March 31, 2017 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 $ 479 $ (8) $ - $ - $ 479 $ (8) State and municipal bonds 441 (20) 8 - 449 (20) Foreign governments 3 (1) - - 3 (1) Corporate obligations 549 (26) 68 (64) 617 (90) Mortgage-backed securities: Residential mortgage-backed agency 464 (10) 104 (3) 568 (13) Residential mortgage-backed non-agency 11 - 28 (6) 39 (6) Commercial mortgage-backed 12 - 12 - 24 - Asset-backed securities: Collateralized debt obligations 4 - 13 - 17 - Other asset-backed 125 (1) 2 - 127 (1) Total AFS investments $ 2,088 $ (66) $ 235 $ (73) $ 2,323 $ (139) HTM Investments Assets of consolidated VIEs: Corporate obligations $ - $ - $ 879 $ (11) $ 879 $ (11) Total HTM investments $ - $ - $ 879 $ (11) $ 879 $ (11) December 31, 2016 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 $ 432 $ (10) $ - $ - $ 432 $ (10) State and municipal bonds 339 (13) 18 (2) 357 (15) Foreign governments 5 - - - 5 - Corporate obligations 534 (29) 52 (73) 586 (102) Mortgage-backed securities: Residential mortgage-backed agency 436 (9) 122 (3) 558 (12) Residential mortgage-backed non-agency 1 - 29 (6) 30 (6) Commercial mortgage-backed 6 - 15 - 21 - Asset-backed securities: Collateralized debt obligations 7 - 15 - 22 - Other asset-backed 112 (1) 49 (2) 161 (3) Total AFS investments $ 1,872 $ (62) $ 300 $ (86) $ 2,172 $ (148) HTM Investments Assets of consolidated VIEs: Corporate obligations $ - $ - $ 876 $ (14) $ 876 $ (14) Total HTM investments $ - $ - $ 876 $ (14) $ 876 $ (14) |
Distribution Of Securities By Percentage Of Fair Value Below Book Value By More Than 5% | AFS Securities HTM Securities Percentage of Fair Value Number of Book Value Fair Value Number of Book Value Fair Value Below Book Value Securities (in millions) (in millions) Securities (in millions) (in millions) > 5% to 15% 7 $ 15 $ 14 - $ - $ - > 15% to 25% 4 31 25 - - - > 25% to 50% 1 1 - - - - > 50% 1 101 38 - - - Total 13 $ 148 $ 77 - $ - $ - |
Credit Losses Recognized In Earnings Related To OTTI Losses Recognized In Accumulated Other Comprehensive Income (Loss) | In millions Three Months Ended March 31, Credit Losses Recognized in Earnings Related to Other-Than-Temporary Impairments 2017 2016 Beginning balance $ 29 $ 26 Additions for credit loss impairments recognized in the current period on securities previously impaired 2 - Ending balance $ 31 $ 26 (1) - Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security's amortized cost. |
Securities Held In Unrealized Loss Position And Insured By Financial Guarantor and The Related Insurance Loss Reserve On Company Insured Investments | Unrealized Insurance Loss In millions Fair Value Loss Reserve (2) Asset-backed: MBIA (1) $ 13 $ - $ - Mortgage-backed: MBIA (1) 16 (3) 16 Corporate obligations: MBIA (1) 41 (2) - Other: MBIA (1) 6 - - Other 2 - - Total $ 78 $ (5) $ 16 _______________ (1) - Includes investments insured by MBIA Corp. and National. (2) - Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured. |
Gross Realized Gains and Losses From Sales Of Available-For-Sale Securities | Three Months Ended March 31, In millions 2017 2016 Proceeds from sales $ 271 $ 281 Gross realized gains 4 10 Gross realized losses (1) (4) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Credit Derivatives Sold | $ in millions As of March 31, 2017 Notional Value Credit Derivatives Sold Weighted Average Remaining Expected Maturity AAA AA A BBB Below Investment Grade Total Notional Fair Value Asset (Liability) Insured credit default swaps 3.9 Years $ - $ - $ 115 $ - $ 415 $ 530 $ (86) Insured swaps 16.0 Years - 133 2,009 731 20 2,893 (2) Total notional $ - $ 133 $ 2,124 $ 731 $ 435 $ 3,423 Total fair value $ - $ - $ (1) $ (1) $ (86) $ (88) $ in millions As of December 31, 2016 Notional Value Credit Derivatives Sold Weighted Average Remaining Expected Maturity AAA AA A BBB Below Investment Grade Total Notional Fair Value Asset (Liability) Insured credit default swaps 3.8 Years $ - $ - $ 115 $ - $ 473 $ 588 $ (64) Insured swaps 15.7 Years - 137 2,146 732 20 3,035 (2) Insured swaps - held for sale 14.3 Years - - - 420 - 420 - Total notional $ - $ 137 $ 2,261 $ 1,152 $ 493 $ 4,043 Total fair value $ - $ - $ (1) $ (1) $ (64) $ (66) |
Total Fair Value Of Company's Derivative Assets And Liabilities By Instrument And Balance Sheet Location, Before Counterparty Netting | 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 credit default swaps $ 530 Other assets $ - Derivative liabilities $ (86) Insured swaps 2,893 Other assets - Derivative liabilities (2) Interest rate swaps 1,057 Other assets 3 Derivative liabilities (205) Interest rate swaps-embedded 382 Medium-term notes 2 Medium-term notes (15) Currency swaps-VIE 70 Other assets-VIE 13 Derivative liabilities-VIE - All other 83 Other assets - Derivative liabilities (20) All other-VIE 3 Other assets-VIE - Derivative liabilities-VIE - All other-embedded 2 Other investments - Other investments - Total non-designated derivatives $ 5,020 $ 18 $ (328) __________ (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 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 credit default swaps $ 588 Other assets $ - Derivative liabilities $ (64) Insured swaps 3,035 Other assets - Derivative liabilities (2) Insured swaps - held for sale 420 Other assets - Derivative liabilities - Interest rate swaps 1,062 Other assets 3 Derivative liabilities (213) Interest rate swaps-embedded 376 Medium-term notes 2 Medium-term notes (17) Currency swaps-VIE 71 Other assets-VIE 20 Derivative liabilities-VIE - All other 83 Other assets - Derivative liabilities (20) All other-VIE 35 Other assets-VIE - Derivative liabilities-VIE - All other-embedded 5 Other investments - Other investments - Total non-designated derivatives $ 5,675 $ 25 $ (316) __________ (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. |
Effect Of Derivative Instruments On Consolidated Statements Of Operations | In millions Derivatives Not Designated as Three Months Ended March 31, Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2017 2016 Insured credit default swaps Unrealized gains (losses) on insured derivatives $ (22) $ (14) Insured credit default swaps Realized gains (losses) and other settlements on insured derivatives (31) (14) Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange 4 (50) Interest rate swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE - 8 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE (6) (5) All other Net gains (losses) on financial instruments at fair value and foreign exchange - (2) Total $ (55) $ (77) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Income (loss) from operations before provision (benefit) for income taxes | Three Months Ended March 31, In millions 2017 2016 Income (loss) before income taxes $ (120) $ (101) Provision (benefit) for income taxes $ (48) $ (23) Effective tax rate 40.0% 22.8% |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Summary of company's segment results | Three Months Ended March 31, 2017 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 68 $ 8 $ 27 $ - $ 103 Net change in fair value of insured derivatives - - (53) - (53) Net gains (losses) on financial instruments at fair value and foreign exchange 4 16 (3) - 17 Net investment losses related to other-than-temporary impairments (2) - - - (2) Net gains (losses) on extinguishment of debt - 8 - - 8 Other net realized gains (losses) - (1) 4 - 3 Revenues of consolidated VIEs - - 1 - 1 Inter-segment revenues (2) 5 16 9 (30) - Total revenues 75 47 (15) (30) 77 Losses and loss adjustment 11 - 83 - 94 Operating 10 18 8 - 36 Interest - 22 26 - 48 Expenses of consolidated VIEs - - 19 - 19 Inter-segment expenses (2) 15 1 14 (30) - Total expenses 36 41 150 (30) 197 Income (loss) before income taxes 39 6 (165) - (120) Provision (benefit) for income taxes 12 (4) (57) 1 (48) Net income (loss) $ 27 $ 10 $ (108) $ (1) $ (72) Identifiable assets $ 5,128 $ 2,335 $ 6,502 $ (2,948) (3) $ 11,017 ________________ (1) - Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. (2) - Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. (3) - Consists of intercompany deferred income taxes, reinsurance balances and repurchase agreements. Three Months Ended March 31, 2016 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 84 $ 5 $ 26 $ - $ 115 Net change in fair value of insured derivatives - - (28) - (28) Net gains (losses) on financial instruments at fair value and foreign exchange 9 (84) 6 - (69) Net investment losses related to other-than-temporary impairments - (1) - - (1) Net gains (losses) on extinguishment of debt - 2 - - 2 Other net realized gains (losses) - (1) - - (1) Revenues of consolidated VIEs - - 14 - 14 Inter-segment revenues (2) 6 16 12 (34) - Total revenues 99 (63) 30 (34) 32 Losses and loss adjustment 9 - 13 - 22 Operating 9 22 14 - 45 Interest - 23 27 - 50 Expenses of consolidated VIEs - - 16 - 16 Inter-segment expenses (2) 18 - 14 (32) - Total expenses 36 45 84 (32) 133 Income (loss) before income taxes 63 (108) (54) (2) (101) Provision (benefit) for income taxes 22 (24) (23) 2 (23) Net income (loss) $ 41 $ (84) $ (31) $ (4) $ (78) Identifiable assets $ 5,268 $ 2,478 $ 7,845 $ (2,840) (3) $ 12,751 ________________ (1) - Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. (2) - Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. (3) - Consists of intercompany deferred income taxes, reinsurance balances and repurchase agreements. |
Summary Of premiums earned on financial guarantees and insured derivatives by geographic location of risk old | Three Months Ended March 31, In millions 2017 2016 Total premiums earned: United States $ 41 $ 59 United Kingdom - 7 Europe (excluding United Kingdom) 1 1 Other Americas 7 7 Asia - 1 Other 1 1 Total $ 50 $ 76 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share | Three Months Ended March 31, $ in millions except per share amounts 2017 2016 Basic earnings per share: Net income (loss) available to common shareholders $ (72) $ (78) Basic weighted average shares (1) 131.4 135.8 Net income (loss) per basic common share $ (0.55) $ (0.58) Diluted earnings per share: Net income (loss) available to common shareholders (72) (78) Diluted weighted average shares 131.4 135.8 Net income (loss) per diluted common share $ (0.55) $ (0.58) Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect 14.8 16.7 _________________ (1) - Includes 0.3 million and 0.7 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the three months ended March 31, 2017 and 2016, respectively. |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Changes In The Components Of AOCI | Unrealized Gains (Losses) on AFS Foreign Currency In millions Securities, Net Translation, Net Total Balance, December 31, 2016 $ 6 $ (134) $ (128) Other comprehensive income (loss) before reclassifications (26) 123 97 (1) Amounts reclassified from AOCI - - - Total other comprehensive income (loss) (26) 123 97 Balance, March 31, 2017 $ (20) $ (11) $ (31) ________________ (1) - Represents items included in the Company's loss calculation to adjust the carrying value of MBIA UK to its fair value less costs to sell for the year ended December 31, 2016. The sale was completed in January of 2017 and as such, these amounts included in AOCI were reversed and included in the Sale Transaction. |
Reclassifications From AOCI | In millions Amounts Reclassified from AOCI Three Months Ended March 31, Details about AOCI Components 2017 2016 Affected Line Item on the Consolidated Statements of Operations Unrealized gains (losses) on AFS securities: Realized gains (losses) on sale of securities $ 2 $ 8 Net gains (losses) on financial instruments at fair value and foreign exchange OTTI (2) - Net investment losses related to OTTI Amortization on securities - (3) Net investment income - 5 Income (loss) before income taxes - 2 Provision (benefit) for income taxes Total reclassifications for the period $ - $ 3 Net income (loss) |
Business Developments And Ris35
Business Developments And Risks And Uncertainties (Narrative) (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($)segments | Mar. 31, 2016USD ($) | |
Business Acquisition [Line Items] | ||
Number of operating segments | segments | 3 | |
Fixed-to-Floating rate Surplus Notes | 14.00% | |
Income (loss) before income taxes | $ (120) | $ (101) |
Proceeds from Senior Lenders | 325 | |
Zohar II [Member] | ||
Business Acquisition [Line Items] | ||
Claims payments | 770 | |
Puerto Rico [Member] | ||
Business Acquisition [Line Items] | ||
Claims payments | 24 | |
Mbia Inc [Member] | ||
Business Acquisition [Line Items] | ||
Proceeds from subordinated financing | 38 | |
Mbia Corp [Member] | Zohar II [Member] | ||
Business Acquisition [Line Items] | ||
Claims payments | 60 | |
Assured Guaranty Corp [Member] | ||
Business Acquisition [Line Items] | ||
Payment for sale of subsidiary | 23 | |
Assured Guaranty Corp [Member] | Zohar II [Member] | ||
Business Acquisition [Line Items] | ||
Outstanding bonds | 347 | |
MBIA UK [Member] | ||
Business Acquisition [Line Items] | ||
Gain recorded on adjustment of carrying value to fair value less costs to sell | $ 5 | |
Income (loss) before income taxes | $ 9 | |
Sale effective date | Jan. 10, 2017 |
Business Developments And Ris36
Business Developments And Risks And Uncertainties (Assets And Liabilities Held For Sale) (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Assets And Liabilities Held For Sale By Major Category [Line Items] | |
Assets held for sale | $ 555 |
Liabilities held for sale | 346 |
Investments At Fair Value [Member] | |
Assets And Liabilities Held For Sale By Major Category [Line Items] | |
Assets held for sale | 466 |
Cash And Cash Equivalents [Member] | |
Assets And Liabilities Held For Sale By Major Category [Line Items] | |
Assets held for sale | 73 |
Premiums Receivable [Member] | |
Assets And Liabilities Held For Sale By Major Category [Line Items] | |
Assets held for sale | 267 |
Other Assets [Member] | |
Assets And Liabilities Held For Sale By Major Category [Line Items] | |
Assets held for sale | 19 |
Valuation Allowance [Member] | |
Assets And Liabilities Held For Sale By Major Category [Line Items] | |
Assets held for sale | (270) |
Unearned Premium Revenue [Member] | |
Assets And Liabilities Held For Sale By Major Category [Line Items] | |
Liabilities held for sale | 304 |
Other Liabilities [Member] | |
Assets And Liabilities Held For Sale By Major Category [Line Items] | |
Liabilities held for sale | $ 42 |
Recent Accounting Pronounceme37
Recent Accounting Pronouncements (Narrative) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |
Estimated reclassification of the cumulative effect from accumulated other comprehensive income to retained earnings for equity investments. | $ 0.3 |
Estimated reclassification of the cumulative effect from retained earning to accumulated other comprehensive income for financial liabilities | $ 100 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Detail) $ in Billions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Variable Interest Entity [Line Items] | ||
Carrying amounts of assets | $ 3.3 | $ 2.7 |
Carrying amounts of liabilities | $ 2.5 | $ 2.2 |
Number of variable interest entities consolidated | 2 | 1 |
Variable Interest Entities (Sum
Variable Interest Entities (Summary Of Nonconsolidated VIEs Assets And Liabilities) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | ||
Variable Interest Entity [Line Items] | ||||
Insurance loss recoverable | $ 486 | $ 504 | ||
Loss and loss adjustment expense reserves | 559 | 541 | ||
Global Structured Finance [Member] | ||||
Variable Interest Entity [Line Items] | ||||
VIE Assets | 18,242 | 20,088 | ||
Maximum Exposure to Loss | 8,908 | 10,391 | ||
Investments | [1] | 33 | 76 | |
Premiums receivable | [2] | 50 | 55 | |
Insurance loss recoverable | [3] | 284 | 306 | |
Unearned premium revenue | [4] | 48 | 52 | |
Loss and loss adjustment expense reserves | [5] | 406 | 406 | |
Global Structured Finance [Member] | Collateralized Debt Obligations [Member] | ||||
Variable Interest Entity [Line Items] | ||||
VIE Assets | 1,955 | 3,167 | ||
Maximum Exposure to Loss | 995 | 1,914 | ||
Investments | [1] | 13 | 51 | |
Premiums receivable | [2] | 1 | 2 | |
Unearned premium revenue | [4] | 0 | 0 | |
Loss and loss adjustment expense reserves | [5] | 0 | 73 | |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | ||||
Variable Interest Entity [Line Items] | ||||
VIE Assets | 8,575 | 9,146 | ||
Maximum Exposure to Loss | 4,499 | 4,796 | ||
Investments | [1] | 20 | 20 | |
Premiums receivable | [2] | 27 | 28 | |
Insurance loss recoverable | [3] | 282 | 304 | |
Unearned premium revenue | [4] | 25 | 27 | |
Loss and loss adjustment expense reserves | [5] | 396 | 325 | |
Global Structured Finance [Member] | Commercial Mortgage Backed Securities [Member] | ||||
Variable Interest Entity [Line Items] | ||||
VIE Assets | 247 | 257 | ||
Maximum Exposure to Loss | 132 | 145 | ||
Premiums receivable | [2] | 0 | 0 | |
Unearned premium revenue | [4] | 0 | 0 | |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | ||||
Variable Interest Entity [Line Items] | ||||
VIE Assets | 5,059 | 4,893 | ||
Maximum Exposure to Loss | 1,267 | 1,331 | ||
Premiums receivable | [2] | 6 | 7 | |
Insurance loss recoverable | 2 | [3] | 2 | |
Unearned premium revenue | [4] | 5 | 5 | |
Loss and loss adjustment expense reserves | [5] | 10 | 8 | |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | ||||
Variable Interest Entity [Line Items] | ||||
VIE Assets | 2,406 | 2,625 | ||
Maximum Exposure to Loss | 2,015 | 2,205 | ||
Investments | 0 | [1] | 5 | |
Premiums receivable | [2] | 16 | 18 | |
Insurance loss recoverable | [3] | 0 | 0 | |
Unearned premium revenue | [4] | 18 | 20 | |
Global Public Finance [Member] | ||||
Variable Interest Entity [Line Items] | ||||
VIE Assets | 19,035 | 44,306 | ||
Maximum Exposure to Loss | 3,062 | 12,051 | ||
Premiums receivable | [2] | 11 | 11 | |
Unearned premium revenue | [4] | 18 | 18 | |
Total Insurance [Member] | ||||
Variable Interest Entity [Line Items] | ||||
VIE Assets | 37,277 | 64,394 | ||
Maximum Exposure to Loss | 11,970 | 22,442 | ||
Investments | [1] | 33 | 76 | |
Premiums receivable | [2] | 61 | 66 | |
Insurance loss recoverable | [3] | 284 | 306 | |
Unearned premium revenue | [4] | 66 | 70 | |
Loss and loss adjustment expense reserves | [5] | $ 406 | $ 406 | |
[1] | Reported within Investments on MBIA's consolidated balance sheets. | |||
[2] | Reported within Premiums receivable on MBIA's consolidated balance sheets. | |||
[3] | Reported within Insurance loss recoverable on MBIA's consolidated balance sheets. | |||
[4] | Reported within Unearned premium revenue on MBIA's consolidated balance sheets. | |||
[5] | Reported within Loss and loss adjustment expense reserves on MBIA's consolidated balance sheets. |
Loss And Loss Adjustment Expe40
Loss And Loss Adjustment Expense Reserves (Loss And LAE Activity) (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Policyholder (Benefits) And Claims Incurred Net | $ 94 | $ 22 | |
Weighted average risk-free rate used to discount claim liability | 2.14% | ||
Insurance loss recoverable | $ 486 | $ 504 | |
Loss and loss adjustment expense reserves | 559 | 541 | |
Reinsurance Receivables Case Basis | 6 | 6 | |
Second Lien Residential Mortgage Backed Securities And Reserves [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Policyholder (Benefits) And Claims Incurred Net | 23 | 12 | |
Lae [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Policyholder (Benefits) And Claims Incurred Net | 12 | $ 8 | |
Loss and loss adjustment expense reserves | 62 | $ 60 | |
Ineligible Mortgage Loans [Member] | Second Lien Residential Mortgage Backed Securities And Reserves [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Contract Claims On Ineligible Mortgage Loans Inception To Date Incurred Loss On Transactions | $ 440 |
Loss And Loss Adjustment Expe41
Loss And Loss Adjustment Expense Reserves (Schedule OF Losses And Loss Adjustment Expenses Reserves and Recoveries) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Loss And Loss Adjustment Expense Reserves [Line Items] | ||
Loan repurchase commitments | $ 409 | $ 404 |
Insurance Loss Recoverable | 486 | 504 |
Loss and loss adjustment expense reserves | 559 | 541 |
Loss And Lae Reserves [Member] | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||
Loss and loss adjustment expense reserves | 559 | 541 |
Insurance Loss Recoverable [Member] | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||
Insurance Loss Recoverable | 486 | 504 |
U S Public Finance Insurance [Member] | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||
Insurance Loss Recoverable | 197 | 174 |
Loss and loss adjustment expense reserves | 106 | 97 |
International And Structured Finance Insurance [Member] | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||
Loan repurchase commitments | 409 | 404 |
Insurance Loss Recoverable | 289 | 330 |
Loss and loss adjustment expense reserves | 453 | 444 |
International And Structured Finance Insurance [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||
Insurance Loss Recoverable | (911) | (221) |
Loss and loss adjustment expense reserves | (234) | (206) |
International And Structured Finance Insurance [Member] | Non Variable Interest Entity [Member] | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||
Loan repurchase commitments | 409 | 404 |
Insurance Loss Recoverable | 1,200 | 551 |
Loss and loss adjustment expense reserves | $ 687 | $ 650 |
Loss And Loss Adjustment Expe42
Loss And Loss Adjustment Expense Reserves (Schedule Of Loss And Loss Adjustment Expenses Reserves) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Gross loss and LAE reserve, beginning balance | $ 541 | ||
Changes in unearned premium revenue | 45 | $ 81 | |
Gross loss and LAE reserve, ending balance | 559 | ||
Loss And Lae Reserves [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Gross loss and LAE reserve, beginning balance | 541 | ||
Loss payments for cases with reserves | [1] | (804) | |
Accretion of claim liability discount | 1 | ||
Changes in discount rates | 5 | ||
Changes in assumptions | 96 | ||
Changes in unearned premium revenue | 4 | ||
Changes in LAE | 2 | ||
Other | [2] | 714 | |
Gross loss and LAE reserve, ending balance | $ 559 | ||
[1] | Includes payments made to satisfy the Zohar II Claim. | ||
[2] | Primarily changes in the amount to satisfy the Zohar II Claim. |
Loss And Loss Adjustment Expe43
Loss And Loss Adjustment Expense Reserves (Schedule Of Insurance Loss Recoverable And Changes In Recoveries On Unpaid Losses) (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($) | ||
Loss And Loss Adjustment Expense Recoveries [Line Items] | ||
Gross Reserve beginning balance, Insurance loss recoverable | $ 504 | |
Gross Reserve beginning balance, Total | 583 | |
Collections for Cases with Recoveries | (42) | |
Accretion of Recoveries | 2 | |
Changes in Discount Rates | 4 | |
Changes in Assumptions | (29) | |
Changes in LAE Recoveries | (4) | |
Other | 23 | [1] |
Gross Reserve ending balance, Insurance loss recoverable | 486 | |
Gross Reserve ending balance, Total | 537 | |
Insurance Loss Recoverable [Member] | ||
Loss And Loss Adjustment Expense Recoveries [Line Items] | ||
Gross Reserve beginning balance, Insurance loss recoverable | 504 | |
Collections for Cases with Recoveries | (42) | |
Accretion of Recoveries | 2 | |
Changes in Discount Rates | 3 | |
Changes in Assumptions | (4) | |
Changes in LAE Recoveries | 0 | |
Other | 23 | [2] |
Gross Reserve ending balance, Insurance loss recoverable | 486 | |
Recoveries On Unpaid Losses [Member] | ||
Loss And Loss Adjustment Expense Recoveries [Line Items] | ||
Gross Reserve beginning balance,Recoveries on unpaid losses | 79 | [2] |
Collections for Cases with Recoveries | 0 | |
Accretion of Recoveries | 0 | |
Changes in Discount Rates | 1 | [2] |
Changes in Assumptions | (25) | [2] |
Changes in LAE Recoveries | (4) | [2] |
Other | 0 | |
Gross Reserve ending balance, Recoveries on unpaid losses | $ 51 | [2] |
[1] | Primarily changes in amount and timing of collections. | |
[2] | As of March 31, 2017 and December 31, 2016, excludes Puerto Rico recoveries, and as of December 31, 2016, the Zohar II recoveries, which have been netted against reserves. |
Loss And Loss Adjustment Expe44
Loss And Loss Adjustment Expense Reserves (Schedule Of Losses And Loss Adjustment Expenses) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Policyholder Benefits And Claims Incurred Net | $ 94 | $ 22 | |
U S Public Finance Insurance [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Policyholder Benefits And Claims Incurred Net | 11 | 9 | |
Second-Lien RMBS [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Policyholder Benefits And Claims Incurred Net | 23 | 12 | |
First-Lien RMBS [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Policyholder Benefits And Claims Incurred Net | 57 | 26 | |
CDOs [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Policyholder Benefits And Claims Incurred Net | 2 | (31) | |
Other [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Policyholder Benefits And Claims Incurred Net | [1] | $ 1 | $ 6 |
[1] | Includes non-U.S. public finance and other issues. |
Loss And Loss Adjustment Expe45
Loss And Loss Adjustment Expense Reserves (Schedule Of Financial Guarantees And Related Claim Liability) (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)issuepolicy | Dec. 31, 2016USD ($)issuepolicy | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Number of policies | policy | 423 | 430 | |
Number of issues | issue | [1] | 146 | 149 |
Remaining weighted average contract period (in years) | 9 years | 7 years 1 month 6 days | |
Principal | [2] | $ 9,666 | $ 10,285 |
Interest | [2] | 8,882 | 5,683 |
Total | [2] | 18,548 | 15,968 |
Gross claim liability | [3] | 721 | 718 |
Less: Gross potential recoveries | 704 | 770 | |
Discount, net | [4] | (35) | (75) |
Net claim liability (recoverable) | 52 | 23 | |
Unearned premium revenue | $ 98 | $ 85 | |
Caution List Low [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Number of policies | policy | 89 | 90 | |
Number of issues | issue | [1] | 18 | 17 |
Remaining weighted average contract period (in years) | 7 years 7 months 6 days | 7 years 6 months | |
Principal | [2] | $ 2,779 | $ 2,917 |
Interest | [2] | 2,729 | 2,795 |
Total | [2] | 5,508 | 5,712 |
Gross claim liability | [3] | 0 | |
Less: Gross potential recoveries | 0 | ||
Discount, net | [4] | 0 | |
Net claim liability (recoverable) | 0 | ||
Unearned premium revenue | $ 8 | $ 9 | |
Caution List Medium [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Number of policies | policy | 5 | 6 | |
Number of issues | issue | [1] | 4 | 4 |
Remaining weighted average contract period (in years) | 4 years 1 month 6 days | 3 years 4 months 24 days | |
Principal | [2] | $ 14 | $ 17 |
Interest | [2] | 3 | 4 |
Total | [2] | 17 | 21 |
Gross claim liability | [3] | 0 | |
Less: Gross potential recoveries | 0 | ||
Discount, net | [4] | 0 | |
Net claim liability (recoverable) | 0 | ||
Unearned premium revenue | $ 0 | $ 0 | |
Caution List High [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Number of policies | policy | 3 | 3 | |
Number of issues | issue | [1] | 2 | 2 |
Remaining weighted average contract period (in years) | 24 years 4 months 24 days | 7 years 2 months 12 days | |
Principal | [2] | $ 792 | $ 320 |
Interest | [2] | 3,538 | 107 |
Total | [2] | 4,330 | 427 |
Gross claim liability | [3] | 0 | |
Less: Gross potential recoveries | 0 | ||
Discount, net | [4] | 0 | |
Net claim liability (recoverable) | 0 | ||
Unearned premium revenue | $ 25 | $ 8 | |
Classified List [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Number of policies | policy | 326 | 331 | |
Number of issues | issue | [1] | 122 | 126 |
Remaining weighted average contract period (in years) | 7 years 8 months 12 days | 7 years | |
Principal | [2] | $ 6,081 | $ 7,031 |
Interest | [2] | 2,612 | 2,777 |
Total | [2] | 8,693 | 9,808 |
Gross claim liability | [3] | 721 | 718 |
Less: Gross potential recoveries | 704 | 770 | |
Discount, net | [4] | (35) | (75) |
Net claim liability (recoverable) | 52 | 23 | |
Unearned premium revenue | $ 65 | $ 68 | |
[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. | ||
[4] | Represents discount related to Gross Claim Liability and Gross Potential Recoveries. |
Fair Value Of Financial Instr46
Fair Value Of Financial Instruments (Narrative) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impact of including the nonperformance risk in valuation of pre-tax net insured derivative liability | $ 12 | $ 11 |
Percentage of level 3 assets at fair value in total assets measured at fair value value | 27.00% | 21.00% |
Percentage of level 3 liabilities at fair value in total liabilities measured at fair value | 40.00% | 37.00% |
Fair Value Of Financial Instr47
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) $ in Millions | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($)Y |
Other Derivative Liabilities [Member] | Discounted cash flow [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value, liabilities | $ 20 | $ 20 |
Nonperformance Risk [Member] | Commercial Mortgage-Backed and Multi Sector C D O [Member] | Minimum [Member] | Direct Price Model [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 46.00% | |
Nonperformance Risk [Member] | Commercial Mortgage-Backed and Multi Sector C D O [Member] | Maximum [Member] | Direct Price Model [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 46.00% | |
Nonperformance Risk [Member] | Commercial Mortgage-Backed and Multi Sector C D O [Member] | Weighted Average [Member] | Direct Price Model [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 46.00% | |
Discounted Cash Flows [Member] | Other Derivative Liabilities [Member] | Minimum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range dollars | $ 0 | 0 |
Discounted Cash Flows [Member] | Other Derivative Liabilities [Member] | Maximum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range dollars | 83 | 83 |
Discounted Cash Flows [Member] | Other Derivative Liabilities [Member] | Weighted Average [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range dollars | 42 | 42 |
Credit Derivatives [Member] | Commercial Mortgage Backed Securities [Member] | BET Model [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value, liabilities | 0 | 62 |
Credit Derivatives [Member] | Multi Sector C D O [Member] | Direct Price Model [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value, liabilities | 2 | |
Credit Derivatives [Member] | Other Derivative Liabilities [Member] | BET And Dual Default Valuation Models [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value, liabilities | 0 | $ 0 |
Credit Derivatives [Member] | Commercial Mortgage-Backed and Multi Sector C D O [Member] | Direct Price Model [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value, liabilities | 86 | |
Credit Derivatives [Member] | Recovery Rates [Member] | Commercial Mortgage Backed Securities [Member] | Minimum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 25.00% | |
Credit Derivatives [Member] | Recovery Rates [Member] | Commercial Mortgage Backed Securities [Member] | Maximum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 40.00% | |
Credit Derivatives [Member] | Recovery Rates [Member] | Commercial Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 33.00% | |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Commercial Mortgage Backed Securities [Member] | Minimum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 10.00% | |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Commercial Mortgage Backed Securities [Member] | Maximum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 32.00% | |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Commercial Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 32.00% | |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Multi Sector C D O [Member] | Minimum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 58.00% | |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Multi Sector C D O [Member] | Maximum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 58.00% | |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Multi Sector C D O [Member] | Weighted Average [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 58.00% | |
Credit Derivatives [Member] | Weighted Average Life [Member] | Commercial Mortgage Backed Securities [Member] | Minimum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Weighted Average (in years) | Y | 1.1 | |
Credit Derivatives [Member] | Weighted Average Life [Member] | Commercial Mortgage Backed Securities [Member] | Maximum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Weighted Average (in years) | Y | 1.5 | |
Credit Derivatives [Member] | Weighted Average Life [Member] | Commercial Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Weighted Average (in years) | Y | 1.3 | |
Credit Derivatives [Member] | Commercial Mortgage Backed Securities Spreads [Member] | Commercial Mortgage Backed Securities [Member] | Minimum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 25.00% | |
Credit Derivatives [Member] | Commercial Mortgage Backed Securities Spreads [Member] | Commercial Mortgage Backed Securities [Member] | Maximum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 35.00% | |
Credit Derivatives [Member] | Commercial Mortgage Backed Securities Spreads [Member] | Commercial Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 30.00% | |
Loans Receivable [Member] | Variable Interest Entity Primary Beneficiary [Member] | Quoted market prices adjusted for financial guarantees provided to VIE obligations [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair Value, assets | $ 1,716 | $ 916 |
Loans Receivable [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [Member] | Minimum [Member] | Quoted market prices adjusted for financial guarantees provided to VIE obligations [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 0.00% | 0.00% |
Loans Receivable [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [Member] | Maximum [Member] | Quoted market prices adjusted for financial guarantees provided to VIE obligations [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 34.00% | 28.00% |
Loans Receivable [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [Member] | Weighted Average [Member] | Quoted market prices adjusted for financial guarantees provided to VIE obligations [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 5.00% | 3.00% |
Loan Repurchase Commitments [Member] | Variable Interest Entity Primary Beneficiary [Member] | Discounted cash flow [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair Value, assets | $ 409 | $ 404 |
Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member] | Quoted market prices of VIE assets adjusted for financial guarantees provided [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value, liabilities | $ 491 | $ 476 |
Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [Member] | Minimum [Member] | Quoted market prices of VIE assets adjusted for financial guarantees provided [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 0.00% | 0.00% |
Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [Member] | Maximum [Member] | Quoted market prices of VIE assets adjusted for financial guarantees provided [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 63.00% | 54.00% |
Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [Member] | Weighted Average [Member] | Quoted market prices of VIE assets adjusted for financial guarantees provided [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 26.00% | 24.00% |
Fair Value Of Financial Instr48
Fair Value Of Financial Instruments (Company's Assets And Liabilities Measured At Fair Value On Recurring Basis) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | ||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | $ 7,929 | $ 7,564 | ||
Fair value financial liabilities measured on recurring basis | 1,736 | 1,784 | ||
Variable Interest Entity Primary Beneficiary [Member] | Loan Repurchase Commitments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 409 | 404 | ||
Corporate Obligations [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 25 | 27 | ||
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 | 145 | 149 | ||
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 | 49 | 52 | ||
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 | 8 | 8 | ||
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 | 19 | 19 | ||
Money Market Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 271 | 521 | ||
Loans Receivable 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 | 844 | 916 | ||
Loans Receivable At Fair Value [Member] | Variable Interest Entity Primary Beneficiary [Member] | Other Loans Receivable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 872 | 150 | ||
Medium Term Notes [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 104 | 101 | ||
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 | 1,306 | 1,351 | ||
Perpetual Debt And Equity Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 36 | 35 | ||
Cash And Cash Equivalents [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 112 | 163 | ||
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 | 40 | 24 | ||
Fixed Income Funds [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | [1] | 78 | 75 | |
Fixed Maturities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 5,005 | 4,999 | ||
Fixed Maturities [Member] | U S Treasury And Government [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 895 | 937 | ||
Fixed Maturities [Member] | State and municipal bonds [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1,405 | 1,440 | ||
Fixed Maturities [Member] | Foreign Government Debt [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 10 | 9 | ||
Fixed Maturities [Member] | Corporate Obligations [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1,492 | 1,334 | ||
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 | 791 | 868 | ||
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 | 54 | 45 | ||
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 | 40 | 43 | ||
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 | 52 | 22 | ||
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 | 266 | 301 | ||
Derivative Assets [Member] | Interest Rate Derivatives [Member] | Non Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 3 | 3 | ||
Derivative Assets [Member] | Currency Derivatives [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 13 | 19 | ||
Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 88 | 66 | ||
Derivative Liabilities [Member] | Interest Rate Derivatives [Member] | Non Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 205 | 213 | ||
Derivative Liabilities [Member] | Interest Rate Derivatives [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 0 | |||
Derivative Liabilities [Member] | Other Derivatives [Member] | Non Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 20 | 20 | ||
Other Liabilities [Member] | Warrant [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 13 | 33 | ||
Other Liabilities [Member] | Securities Sold Not Yet Purchased [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 0 | |||
Fair Value Inputs Level 1 [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1,314 | 1,559 | ||
Fair value financial liabilities measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [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 | 4 | |||
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 | 271 | 521 | ||
Fair Value Inputs Level 1 [Member] | Perpetual Debt And Equity Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 27 | 26 | ||
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 | 112 | 163 | ||
Fair Value Inputs Level 1 [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 | 40 | 24 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 860 | 825 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | U S Treasury And Government [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 785 | 825 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Foreign Government Debt [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | |||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Corporate Obligations [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 75 | |||
Fair Value Inputs Level 1 [Member] | Other Liabilities [Member] | Securities Sold Not Yet Purchased [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 0 | |||
Fair Value Inputs Level 2 [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 4,372 | 4,378 | ||
Fair value financial liabilities measured on recurring basis | 1,035 | 1,123 | ||
Fair Value Inputs Level 2 [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 | 19 | 27 | ||
Fair Value Inputs Level 2 [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 | 145 | 149 | ||
Fair Value Inputs Level 2 [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 | 45 | 52 | ||
Fair Value Inputs Level 2 [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 | 7 | 7 | ||
Fair Value Inputs Level 2 [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 | 18 | 18 | ||
Fair Value Inputs Level 2 [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 | 815 | 875 | ||
Fair Value Inputs Level 2 [Member] | Perpetual Debt And Equity Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 9 | 9 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 4,126 | 4,113 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | U S Treasury And Government [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 110 | 112 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | State and municipal bonds [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1,404 | 1,440 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Foreign Government Debt [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 10 | 9 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Corporate Obligations [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1,417 | 1,332 | ||
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 | 791 | 868 | ||
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 | 54 | 45 | ||
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 | 40 | 43 | ||
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 | 39 | 7 | ||
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 | 261 | 257 | ||
Fair Value Inputs Level 2 [Member] | Derivative Assets [Member] | Interest Rate Derivatives [Member] | Non Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 3 | 3 | ||
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 | 2 | 2 | ||
Fair Value Inputs Level 2 [Member] | Derivative Liabilities [Member] | Interest Rate Derivatives [Member] | Non Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 205 | 213 | ||
Fair Value Inputs Level 2 [Member] | Derivative Liabilities [Member] | Interest Rate Derivatives [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 0 | |||
Fair Value Inputs Level 2 [Member] | Other Liabilities [Member] | Warrant [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 13 | 33 | ||
Fair Value Inputs Level 3 [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 2,165 | 1,552 | ||
Fair value financial liabilities measured on recurring basis | 701 | 661 | ||
Fair Value Inputs Level 3 [Member] | Variable Interest Entity Primary Beneficiary [Member] | Loan Repurchase Commitments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 409 | 404 | ||
Fair Value Inputs Level 3 [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 | [2] | 6 | 0 | |
Fair Value Inputs Level 3 [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 | [2] | 1 | 1 | |
Fair Value Inputs Level 3 [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 | [2] | 1 | 1 | |
Fair Value Inputs Level 3 [Member] | Loans Receivable 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 | 844 | 916 | ||
Fair Value Inputs Level 3 [Member] | Loans Receivable At Fair Value [Member] | Variable Interest Entity Primary Beneficiary [Member] | Other Loans Receivable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 872 | [2] | 150 | |
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 | [2] | 104 | 101 | |
Fair Value Inputs Level 3 [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 | 491 | 476 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 19 | 61 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | State and municipal bonds [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | [2] | 1 | 0 | |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Foreign Government Debt [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | [2] | 0 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Corporate Obligations [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | [2] | 0 | 2 | |
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 | [2] | 13 | 15 | |
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 | [2] | 5 | 44 | |
Fair Value Inputs Level 3 [Member] | Derivative Assets [Member] | Currency Derivatives [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | [2] | 13 | 19 | |
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 | 86 | 64 | ||
Fair Value Inputs Level 3 [Member] | Derivative Liabilities [Member] | Other Derivatives [Member] | Non Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 20 | 20 | ||
Counterparty And Cash Collateral Netting [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair value financial liabilities measured on recurring basis | $ 0 | 0 | ||
Counterparty And Cash Collateral Netting [Member] | Derivative Assets [Member] | Interest Rate Derivatives [Member] | Non Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | |||
Counterparty And Cash Collateral Netting [Member] | Derivative Liabilities [Member] | Interest Rate Derivatives [Member] | Non Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | $ 0 | |||
[1] | Investment was measured at fair value by applying the net asset value per share practical expedient, and was not classified in the fair value hierarchy in accordance with ASC 820-10. The fair value amount presented was provided to permit reconciliation of the fair value of assets categorized within the fair value hierarchy to the amounts presented in the statement of financial position. | |||
[2] | Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities. |
Fair Value Of Financial Instr49
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) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | |||
Assets held for sale | $ 555 | ||
Variable Interest Entity Primary Beneficiary [Member] | |||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | |||
Investments held-to-maturity, fair value | $ 879 | 876 | |
Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 1 [Member] | |||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | |||
Total assets | 0 | 0 | |
Total liabilities | 0 | 0 | |
Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 2 [Member] | |||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | |||
Other investments | 2 | 2 | |
Accrued investment income | [1] | 37 | 40 |
Receivable for investments sold | [1] | 52 | |
Assets held for sale | 0 | 306 | |
Total assets | 91 | 348 | |
Long-term debt | 1,047 | 1,030 | |
Payable for investments purchased | [2] | 89 | 32 |
Total liabilities | 1,473 | 1,062 | |
Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 2 [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | |||
Variable interest entity notes | 337 | ||
Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 3 [Member] | |||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | |||
Total assets | 879 | 876 | |
Investment agreements | 496 | 508 | |
Medium-term notes | 456 | 478 | |
Total liabilities | 1,826 | 1,868 | |
Gross | 2,499 | 2,638 | |
Ceded | 35 | 18 | |
Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 3 [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | |||
Investments held-to-maturity, fair value | 879 | 876 | |
Variable interest entity notes | 874 | 882 | |
Carrying Reported Amount Fair Value Disclosure [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | |||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | |||
Other investments | 2 | 3 | |
Accrued investment income | [1] | 37 | 40 |
Receivable for investments sold | [1] | 52 | |
Assets held for sale | 0 | 306 | |
Total assets | 981 | 1,239 | |
Investment agreements | 390 | 399 | |
Medium-term notes | 726 | 794 | |
Long-term debt | 2,034 | 1,986 | |
Payable for investments purchased | [2] | 89 | 32 |
Total liabilities | 4,450 | 4,101 | |
Gross | 986 | 995 | |
Ceded | 43 | 43 | |
Carrying Reported Amount Fair Value Disclosure [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | |||
Investments held-to-maturity, fair value | 890 | 890 | |
Variable interest entity notes | 1,211 | 890 | |
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | |||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | |||
Other investments | 2 | 2 | |
Accrued investment income | [1] | 37 | 40 |
Receivable for investments sold | [1] | 52 | |
Assets held for sale | 0 | 306 | |
Total assets | 970 | 1,224 | |
Investment agreements | 496 | 508 | |
Medium-term notes | 456 | 478 | |
Long-term debt | 1,047 | 1,030 | |
Payable for investments purchased | [2] | 89 | 32 |
Total liabilities | 3,299 | 2,930 | |
Gross | 2,499 | 2,638 | |
Ceded | 35 | 18 | |
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | |||
Investments held-to-maturity, fair value | 879 | 876 | |
Variable interest entity notes | $ 1,211 | $ 882 | |
[1] | Reported within "Other assets" on MBIA's consolidated balance sheets. | ||
[2] | Reported within "Other liabilities" on MBIA's consolidated balance sheets. |
Fair Value Of Financial Instr50
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 | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value assets | $ 1,552 | $ 1,834 | |
Realized gains/(losses), assets | 0 | (1) | |
Unrealized gains/(losses) included in earnings, assets | 1 | (29) | |
Unrealized gains/(losses) included in OCI, assets | 2 | 5 | |
Foreign exchange recognized in OCI or earnings, assets | (3) | 0 | |
Purchases, assets | 719 | 146 | |
Issuances, assets | 0 | 0 | |
Settlements, assets | (111) | (99) | |
Sales, assets | 0 | 0 | |
Transfers into level 3, assets | [1] | 8 | 5 |
Transfers out of level 3, assets | [1] | (3) | (11) |
Ending balance, fair value assets | 2,165 | 1,850 | |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (1) | (18) | |
Beginning balance, fair value liabilities | 661 | 1,531 | |
Realized gains/(losses), liabilities | 31 | 14 | |
Unrealized gains/(losses included in earnings, liabilities | 57 | (10) | |
Unrealized gains/(losses) included in OCI, liabilities | 0 | 0 | |
Foreign exchange recognized in OCI or earnings, liabilities | 2 | 7 | |
Purchases, liabilities | 0 | 9 | |
Issuances, liabilities | 0 | 0 | |
Settlements, liabilities | (50) | (92) | |
Sales, liabilities | 0 | 0 | |
Transfers into Level 3, liabilities | [1] | 0 | 0 |
Transfers out of Level 3, liabilities | [1] | 0 | 0 |
Ending balance, fair value liabilities | 701 | 1,459 | |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 59 | 0 | |
Residential Prime Financing Receivable [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value assets | 916 | 1,185 | |
Unrealized gains/(losses) included in earnings, assets | (4) | (14) | |
Settlements, assets | (68) | (56) | |
Ending balance, fair value assets | 844 | 1,115 | |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (3) | (14) | |
Other Loans Receivable [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value assets | 150 | 107 | |
Unrealized gains/(losses) included in earnings, assets | 3 | ||
Purchases, assets | 719 | 146 | |
Ending balance, fair value assets | 872 | 253 | |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 3 | ||
Loan Repurchase Commitments [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value assets | 404 | 396 | |
Unrealized gains/(losses) included in earnings, assets | 5 | 3 | |
Ending balance, fair value assets | 409 | 399 | |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 5 | 3 | |
State and municipal bonds [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value assets | 0 | 41 | |
Settlements, assets | (38) | ||
Transfers into level 3, assets | [1] | 1 | |
Transfers out of level 3, assets | 0 | ||
Ending balance, fair value assets | 1 | 3 | |
Foreign Government Debt [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value assets | 0 | 2 | |
Purchases, assets | 0 | ||
Settlements, assets | 0 | ||
Ending balance, fair value assets | 0 | 2 | |
Corporate Obligations [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value assets | 2 | 7 | |
Settlements, assets | 0 | ||
Transfers out of level 3, assets | (2) | (6) | |
Ending balance, fair value assets | 0 | 1 | |
Corporate Obligations [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value assets | 0 | 11 | |
Unrealized gains/(losses) included in earnings, assets | (5) | ||
Transfers into level 3, assets | 6 | ||
Transfers out of level 3, assets | [1] | (5) | |
Ending balance, fair value assets | 6 | 1 | |
Residential Mortgage Backed Non Agency [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value assets | 0 | ||
Unrealized gains/(losses) included in earnings, assets | 0 | ||
Commercial Mortgage Backed Securities [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Transfers into level 3, assets | 0 | ||
Ending balance, fair value assets | 0 | ||
Commercial Mortgage Backed Securities [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value assets | 0 | ||
Unrealized gains/(losses) included in earnings, assets | 0 | ||
Transfers into level 3, assets | 0 | 2 | |
Ending balance, fair value assets | 0 | 2 | |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 0 | ||
Collateralized Debt Obligations [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value assets | 15 | 29 | |
Unrealized gains/(losses) included in OCI, assets | 0 | ||
Settlements, assets | (2) | (3) | |
Ending balance, fair value assets | 13 | 26 | |
Collateralized Debt Obligations [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value assets | 1 | 1 | |
Ending balance, fair value assets | 1 | 1 | |
Other Asset Backed [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value assets | 44 | 38 | |
Realized gains/(losses), assets | (1) | ||
Unrealized gains/(losses) included in earnings, assets | (1) | ||
Unrealized gains/(losses) included in OCI, assets | 2 | 5 | |
Settlements, assets | (41) | (2) | |
Transfers out of level 3, assets | [1] | 0 | |
Ending balance, fair value assets | 5 | 39 | |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (1) | ||
Other Asset Backed [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value assets | 1 | 6 | |
Unrealized gains/(losses) included in earnings, assets | (6) | ||
Transfers into level 3, assets | 1 | 3 | |
Transfers out of level 3, assets | (1) | ||
Ending balance, fair value assets | 1 | 3 | |
Medium Term Notes [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value liabilities | 101 | 161 | |
Unrealized gains/(losses included in earnings, liabilities | 1 | (3) | |
Foreign exchange recognized in OCI or earnings, liabilities | 2 | 7 | |
Settlements, liabilities | 0 | ||
Ending balance, fair value liabilities | 104 | 165 | |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 3 | 5 | |
Credit Derivatives [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value liabilities | 64 | 85 | |
Realized gains/(losses), liabilities | 31 | 14 | |
Unrealized gains/(losses included in earnings, liabilities | 22 | 14 | |
Settlements, liabilities | (31) | (14) | |
Ending balance, fair value liabilities | 86 | 99 | |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 22 | 16 | |
Other Derivative Liabilities [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value liabilities | 20 | 18 | |
Unrealized gains/(losses included in earnings, liabilities | 0 | 1 | |
Ending balance, fair value liabilities | 20 | 19 | |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 0 | 1 | |
Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value liabilities | 476 | 1,267 | |
Unrealized gains/(losses included in earnings, liabilities | 34 | (22) | |
Purchases, liabilities | 9 | ||
Settlements, liabilities | (19) | (78) | |
Ending balance, fair value liabilities | 491 | 1,176 | |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 34 | (22) | |
Currency Derivatives [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance, fair value assets | 19 | 11 | |
Unrealized gains/(losses) included in earnings, assets | (3) | (6) | |
Foreign exchange recognized in OCI or earnings, assets | (3) | ||
Ending balance, fair value assets | 13 | 5 | |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | $ (6) | $ (6) | |
[1] | Transferred in and out at the end of the period. |
Fair Value Of Financial Instr51
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Unrealized gains (losses) on insured derivatives | $ (22) | $ (14) |
Net gains (losses) on financial instruments at fair value and foreign exchange | 17 | (69) |
Net investment losses related to other-than-temporary impairments | (2) | (1) |
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] | ||
Unrealized gains (losses) on insured derivatives | (22) | (14) |
Realized gains and other settlements on insured derivatives | (31) | (14) |
Net gains (losses) on financial instruments at fair value and foreign exchange | (3) | (7) |
Total revenues | (92) | (41) |
Fair Value Inputs Level 3 [Member] | Change In Unrealized Gains Losses For Period Included In Earnings For Assets And Liabilities Still Held [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Unrealized gains (losses) on insured derivatives | (22) | (16) |
Net gains (losses) on financial instruments at fair value and foreign exchange | (3) | (7) |
Total revenues | (60) | (18) |
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 | (36) | (6) |
Fair Value Inputs Level 3 [Member] | Variable Interest Entity Primary Beneficiary [Member] | Change In Unrealized Gains Losses For 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 | $ (35) | $ 5 |
Fair Value Of Financial Instr52
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 | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
Accounts Notes And Loans Receivable [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | $ 17 | $ (69) | ||
Non Variable Interest Entity [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 17 | (69) | ||
Variable Interest Entity [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | (33) | (1) | ||
Variable Interest Entity [Member] | Loan Repurchase Commitments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [1] | 6 | 2 | |
Investments Carried At Fair Value [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 | [2] | 3 | 3 | |
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 | [1] | (8) | (85) | |
Residential Mortgage Loans [Member] | Variable Interest Entity [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [1] | (72) | (70) | |
Other Loans [Member] | 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 | 0 | |
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 | [2] | (3) | [1] | (5) |
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 | [1] | $ (45) | $ 166 | |
[1] | Reported within "Net gains (losses) of financial instruments at fair value and foreign exchange-VIE" on MBIA's consolidated statements of operations. | |||
[2] | Reported within "Net gains (losses) of financial instruments at fair value and foreign exchange" on MBIA's consolidated statements of operations. |
Fair Value Of Financial Instr53
Fair Value Of Financial Instruments (Aggregate Fair Value And Remaining Contractual Principal Balance Outstanding On Fair Value Option) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Non Variable Interest Entity [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Medium-term notes, contractual outstanding principal | $ 160 | $ 158 |
Medium-term notes, fair value | 104 | 101 |
Medium-term notes, difference | 56 | 57 |
Variable Interest Entity [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Loans receivable, contractual outstanding principal | 1,943 | 1,258 |
Variable interest entity notes, contractual outstanding principal | 3,152 | 2,449 |
Loans receivable, fair value | 1,716 | 1,066 |
Variable interest entity notes, fair value | 1,306 | 1,351 |
Loans receivable, difference | 227 | 192 |
Variable interest entity notes, difference | 1,846 | 1,098 |
Residential Mortgage Loans [Member] | Variable Interest Entity [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Loans receivable, contractual outstanding principal | 890 | 965 |
Loans receivable, 90 days or more past due, contractual outstanding principal | 163 | 143 |
Loans receivable, fair value | 822 | 894 |
Loans receivable, 90 days or more past due, fair value | 22 | 22 |
Loans receivable, difference | 68 | 71 |
Loans receivable, 90 days or more past due, difference | 141 | 121 |
Other Loans [Member] | Variable Interest Entity [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Loans receivable, contractual outstanding principal | 0 | 0 |
Loans receivable, 90 days or more past due, contractual outstanding principal | 890 | 150 |
Loans receivable, fair value | 0 | 0 |
Loans receivable, 90 days or more past due, fair value | 872 | 150 |
Loans receivable, difference | 0 | 0 |
Loans receivable, 90 days or more past due, difference | $ 18 | $ 0 |
Investments (Narrative) (Detail
Investments (Narrative) (Detail) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017USD ($)security | Dec. 31, 2016USD ($)security | |
Schedule Of Investments [Line Items] | ||
Fair value of securities on deposit with various regulatory authorities | $ 10 | $ 11 |
Fair value of securities pledged as collateral | $ 415 | 416 |
Cash and money market securities pledged as collateral under investment agreements | $ 6 | |
Weighted average contractual maturity period in years for securities in an unrealized loss position | 21 years | 22 years |
Number of securities in unrealized loss position for a continuous 12 month period | security | 37 | 46 |
Rate that a security's fair value is below book value | 5.00% | |
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 | 13 | 12 |
Investments (Amortized Cost And
Investments (Amortized Cost And Fair Value Of Available-For-Sale and Held-To-Maturity Investment Portfolios) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | $ 5,206 | $ 5,450 | |
Gross unrealized gains | 118 | 129 | |
Gross unrealized losses | (139) | (148) | |
Total available-for-sale securities, fair value | 5,185 | 5,431 | |
Other-than-temporary impairments | [1] | (64) | (75) |
Variable Interest Entity Primary Beneficiary [Member] | |||
Held To Maturity Securities [Abstract] | |||
Total held-to-maturity, amortized cost | 890 | 890 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | (11) | (14) | |
Total held-to-maturity investments, fair value | 879 | 876 | |
Other-Than-Temporary Impairments | [1] | 0 | 0 |
Corporate Obligations [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Held To Maturity Securities [Abstract] | |||
Total held-to-maturity, amortized cost | 890 | 890 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | (11) | (14) | |
Total held-to-maturity investments, fair value | 879 | 876 | |
Other-Than-Temporary Impairments | [1] | 0 | 0 |
Money Market Securities [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 267 | 517 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Total available-for-sale securities, fair value | 267 | 517 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Perpetual Debt And Equity Securities [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 3 | 4 | |
Gross unrealized gains | 1 | 1 | |
Gross unrealized losses | 0 | 0 | |
Total available-for-sale securities, fair value | 4 | 5 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 4,936 | 4,929 | |
Gross unrealized gains | 117 | 128 | |
Gross unrealized losses | (139) | (148) | |
Total available-for-sale securities, fair value | 4,914 | 4,909 | |
Other-than-temporary impairments | [1] | (64) | (75) |
Fixed Maturities [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Held To Maturity Securities [Abstract] | |||
Total held-to-maturity, amortized cost | 890 | ||
Total held-to-maturity investments, fair value | 879 | ||
Fixed Maturities [Member] | U S Treasury And Government [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 865 | 909 | |
Gross unrealized gains | 31 | 30 | |
Gross unrealized losses | (8) | (10) | |
Total available-for-sale securities, fair value | 888 | 929 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | US States And Political Subdivisions [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 1,364 | 1,382 | |
Gross unrealized gains | 60 | 72 | |
Gross unrealized losses | (20) | (15) | |
Total available-for-sale securities, fair value | 1,404 | 1,439 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | Foreign Governments [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 10 | 8 | |
Gross unrealized gains | 1 | 0 | |
Gross unrealized losses | (1) | 0 | |
Total available-for-sale securities, fair value | 10 | 8 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | Corporate Obligations [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 1,495 | 1,352 | |
Gross unrealized gains | 20 | 20 | |
Gross unrealized losses | (90) | (102) | |
Total available-for-sale securities, fair value | 1,425 | 1,270 | |
Other-than-temporary impairments | [1] | (63) | (73) |
Fixed Maturities [Member] | Residential Mortgage-Backed Agency [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 796 | 871 | |
Gross unrealized gains | 2 | 3 | |
Gross unrealized losses | (13) | (12) | |
Total available-for-sale securities, fair value | 785 | 862 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | Residential Mortgage-Backed Non-Agency [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 59 | 50 | |
Gross unrealized gains | 1 | 1 | |
Gross unrealized losses | (6) | (6) | |
Total available-for-sale securities, fair value | 54 | 45 | |
Other-than-temporary impairments | [1] | (2) | (3) |
Fixed Maturities [Member] | Commercial Mortgage-Backed [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 38 | 41 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Total available-for-sale securities, fair value | 38 | 41 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 52 | 22 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Total available-for-sale securities, fair value | 52 | 22 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | Other Asset-Backed [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 257 | 294 | |
Gross unrealized gains | 2 | 2 | |
Gross unrealized losses | (1) | (3) | |
Total available-for-sale securities, fair value | 258 | 293 | |
Other-than-temporary impairments | [1] | $ 1 | $ 1 |
[1] | Represents unrealized gains or losses on other than temporarily impaired securities recognized in AOCI, which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities reported in AOCI. |
Investments (Distribution By Co
Investments (Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Held To Maturity Securities [Abstract] | ||
Total held-to-maturity, amortized cost | $ 890 | $ 890 |
Total Held-To-Maturity, fair value | 879 | $ 876 |
Fixed Maturities [Member] | ||
Available For Sale Securities [Abstract] | ||
Due in one year or less | 400 | |
Due after one year through five years | 1,209 | |
Due after five years through ten years | 773 | |
Due after ten years | 1,352 | |
Mortgage-Backed and Asset-Backed | 1,202 | |
Total Available-For-Sale, amortized cost | 4,936 | |
Due in one year or less | 399 | |
Due after one year through five years | 1,215 | |
Due after five years through ten years | 727 | |
Due after ten years | 1,386 | |
Mortgage-Backed and Asset-Backed | 1,187 | |
Total Available-For-Sale, fair value | 4,914 | |
Fixed Maturities [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||
Held To Maturity Securities [Abstract] | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 0 | |
Due after ten years | 890 | |
Mortgage-Backed and Asset-Backed | 0 | |
Total held-to-maturity, amortized cost | 890 | |
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 0 | |
Due after ten years | 879 | |
Mortgage-Backed and Asset-Backed | 0 | |
Total Held-To-Maturity, fair value | $ 879 |
Investments (Gross Unrealized L
Investments (Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | $ 2,088 | $ 1,872 |
Less than 12 months, unrealized losses | (66) | (62) |
12 months or longer, fair value | 235 | 300 |
12 months or longer, unrealized losses | (73) | (86) |
Total available-for-sale, fair value | 2,323 | 2,172 |
Total available-for-sale, unrealized losses | (139) | (148) |
Variable Interest Entity Primary Beneficiary [Member] | ||
Held To Maturity Securities [Abstract] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 879 | 876 |
12 months or longer, unrealized losses | (11) | (14) |
Total held-to-maturity, fair value | 879 | 876 |
Total held-to-maturity, unrealized losses | (11) | (14) |
Corporate Obligations [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||
Held To Maturity Securities [Abstract] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 879 | 876 |
12 months or longer, unrealized losses | (11) | (14) |
Total held-to-maturity, fair value | 879 | 876 |
Total held-to-maturity, unrealized losses | (11) | (14) |
Perpetual Debt And Equity Securities [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 0 | 0 |
12 months or longer, unrealized losses | 0 | 0 |
Total available-for-sale, fair value | 0 | 0 |
Total available-for-sale, unrealized losses | 0 | 0 |
Fixed Maturities [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 2,088 | 1,872 |
Less than 12 months, unrealized losses | (66) | (62) |
12 months or longer, fair value | 235 | 300 |
12 months or longer, unrealized losses | (73) | (86) |
Total available-for-sale, fair value | 2,323 | 2,172 |
Total available-for-sale, unrealized losses | (139) | (148) |
Fixed Maturities [Member] | U S Treasury And Government [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 479 | 432 |
Less than 12 months, unrealized losses | (8) | (10) |
12 months or longer, fair value | 0 | 0 |
12 months or longer, unrealized losses | 0 | 0 |
Total available-for-sale, fair value | 479 | 432 |
Total available-for-sale, unrealized losses | (8) | (10) |
Fixed Maturities [Member] | US States And Political Subdivisions [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 441 | 339 |
Less than 12 months, unrealized losses | (20) | (13) |
12 months or longer, fair value | 8 | 18 |
12 months or longer, unrealized losses | 0 | (2) |
Total available-for-sale, fair value | 449 | 357 |
Total available-for-sale, unrealized losses | (20) | (15) |
Fixed Maturities [Member] | Foreign Government Debt [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 3 | 5 |
Less than 12 months, unrealized losses | (1) | 0 |
12 months or longer, fair value | 0 | 0 |
12 months or longer, unrealized losses | 0 | 0 |
Total available-for-sale, fair value | 3 | 5 |
Total available-for-sale, unrealized losses | (1) | 0 |
Fixed Maturities [Member] | Corporate Obligations [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 549 | 534 |
Less than 12 months, unrealized losses | (26) | (29) |
12 months or longer, fair value | 68 | 52 |
12 months or longer, unrealized losses | (64) | (73) |
Total available-for-sale, fair value | 617 | 586 |
Total available-for-sale, unrealized losses | (90) | (102) |
Fixed Maturities [Member] | Residential Mortgage Backed Agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 464 | 436 |
Less than 12 months, unrealized losses | (10) | (9) |
12 months or longer, fair value | 104 | 122 |
12 months or longer, unrealized losses | (3) | (3) |
Total available-for-sale, fair value | 568 | 558 |
Total available-for-sale, unrealized losses | (13) | (12) |
Fixed Maturities [Member] | Residential Mortgage Backed Non Agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 11 | 1 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 28 | 29 |
12 months or longer, unrealized losses | (6) | (6) |
Total available-for-sale, fair value | 39 | 30 |
Total available-for-sale, unrealized losses | (6) | (6) |
Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 12 | 6 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 12 | 15 |
12 months or longer, unrealized losses | 0 | 0 |
Total available-for-sale, fair value | 24 | 21 |
Total available-for-sale, unrealized losses | 0 | 0 |
Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 4 | 7 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 13 | 15 |
12 months or longer, unrealized losses | 0 | 0 |
Total available-for-sale, fair value | 17 | 22 |
Total available-for-sale, unrealized losses | 0 | 0 |
Fixed Maturities [Member] | Other Asset Backed [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 125 | 112 |
Less than 12 months, unrealized losses | (1) | (1) |
12 months or longer, fair value | 2 | 49 |
12 months or longer, unrealized losses | 0 | (2) |
Total available-for-sale, fair value | 127 | 161 |
Total available-for-sale, unrealized losses | $ (1) | $ (3) |
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) $ in Millions | Mar. 31, 2017USD ($)security | Dec. 31, 2016USD ($) |
Available For Sale Securities [Abstract] | ||
Fixed-maturity securities held as available-for-sale, amortized cost | $ 5,206 | $ 5,450 |
Available For Sale Securities | $ 5,185 | $ 5,431 |
> 5% To 15% [Member] | ||
Held To Maturity Securities [Abstract] | ||
Percentage Of Fair Value Below Book Value Minimum | 5.00% | |
Percentage Of Fair Value Below Book Value Maximum | 15.00% | |
> 5% To 15% [Member] | Unrealized loss position > 12 months | ||
Available For Sale Securities [Abstract] | ||
Number of available-for-sale securities in unrealized loss position | security | 7 | |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 15 | |
Available For Sale Securities | $ 14 | |
Held To Maturity Securities [Abstract] | ||
Number of Held-To-Maturity Securities in unrealized loss position | security | 0 | |
Held-To-Maturity Securities Amortized Cost | $ 0 | |
Held-To-Maturity Securities Fair Value | $ 0 | |
> 15% To 25% [Member] | ||
Held To Maturity Securities [Abstract] | ||
Percentage Of Fair Value Below Book Value Minimum | 15.00% | |
Percentage Of Fair Value Below Book Value Maximum | 25.00% | |
> 15% To 25% [Member] | Unrealized loss position > 12 months | ||
Available For Sale Securities [Abstract] | ||
Number of available-for-sale securities in unrealized loss position | security | 4 | |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 31 | |
Available For Sale Securities | $ 25 | |
Held To Maturity Securities [Abstract] | ||
Number of Held-To-Maturity Securities in unrealized loss position | security | 0 | |
Held-To-Maturity Securities Amortized Cost | $ 0 | |
Held-To-Maturity Securities Fair Value | $ 0 | |
> 25% To 50% [Member] | ||
Held To Maturity Securities [Abstract] | ||
Percentage Of Fair Value Below Book Value Minimum | 25.00% | |
Percentage Of Fair Value Below Book Value Maximum | 50.00% | |
> 25% To 50% [Member] | Unrealized loss position > 12 months | ||
Available For Sale Securities [Abstract] | ||
Number of available-for-sale securities in unrealized loss position | security | 1 | |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 1 | |
Available For Sale Securities | $ 0 | |
Held To Maturity Securities [Abstract] | ||
Number of Held-To-Maturity Securities in unrealized loss position | security | 0 | |
Held-To-Maturity Securities Amortized Cost | $ 0 | |
Held-To-Maturity Securities Fair Value | $ 0 | |
> 50% [Member] | ||
Held To Maturity Securities [Abstract] | ||
Percentage Of Fair Value Below Book Value Minimum | 50.00% | |
> 50% [Member] | Unrealized loss position > 12 months | ||
Available For Sale Securities [Abstract] | ||
Number of available-for-sale securities in unrealized loss position | security | 1 | |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 101 | |
Available For Sale Securities | $ 38 | |
Held To Maturity Securities [Abstract] | ||
Number of Held-To-Maturity Securities in unrealized loss position | security | 0 | |
Held-To-Maturity Securities Amortized Cost | $ 0 | |
Held-To-Maturity Securities Fair Value | $ 0 | |
Greater Than 5% [Member] | Unrealized loss position > 12 months | ||
Available For Sale Securities [Abstract] | ||
Number of available-for-sale securities in unrealized loss position | security | 13 | |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 148 | |
Available For Sale Securities | $ 77 | |
Held To Maturity Securities [Abstract] | ||
Number of Held-To-Maturity Securities in unrealized loss position | security | 0 | |
Held-To-Maturity Securities Amortized Cost | $ 0 | |
Held-To-Maturity Securities Fair Value | $ 0 |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings Related To OTTI Losses Recognized In Accumulated Other Comprehensive Income (Loss)) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other than temporary impairment credit lossesfor available for sale securities rollforward [Abstract] | ||
Beginning Balance | $ 29 | $ 26 |
Additions For Credit Loss Impairments Recognized In The Current Period On Securities Previously Impaired | 2 | 0 |
Ending Balance | $ 31 | $ 26 |
Investments (Securities Held In
Investments (Securities Held In Unrealized Loss Position And Insured By Financial Guarantor) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Investments [Line Items] | |||
Total Available-For-Sale, Fair Value | $ 2,323 | $ 2,172 | |
Wrapped Securities [Member] | |||
Schedule Of Investments [Line Items] | |||
Total Available-For-Sale, Fair Value | 78 | ||
Gross unrealized losses | (5) | ||
Loss and loss adjustment expense reserves | [1] | 16 | |
Asset-backed [Member] | Wrapped Securities [Member] | Mbia Corp And National [Member] | |||
Schedule Of Investments [Line Items] | |||
Total Available-For-Sale, Fair Value | [2] | 13 | |
Gross unrealized losses | [2] | 0 | |
Loss and loss adjustment expense reserves | [1],[2] | 0 | |
Mortgage-backed [Member] | Wrapped Securities [Member] | Mbia Corp And National [Member] | |||
Schedule Of Investments [Line Items] | |||
Total Available-For-Sale, Fair Value | [2] | 16 | |
Gross unrealized losses | [2] | (3) | |
Loss and loss adjustment expense reserves | [1],[2] | 16 | |
Corporate Obligations [Member] | Wrapped Securities [Member] | Mbia Corp And National [Member] | |||
Schedule Of Investments [Line Items] | |||
Total Available-For-Sale, Fair Value | [2] | 41 | |
Gross unrealized losses | [2] | (2) | |
Loss and loss adjustment expense reserves | [1],[2] | 0 | |
All Other Securities [Member] | Wrapped Securities [Member] | Mbia Corp And National [Member] | |||
Schedule Of Investments [Line Items] | |||
Total Available-For-Sale, Fair Value | [2] | 6 | |
Gross unrealized losses | [2] | 0 | |
Loss and loss adjustment expense reserves | [1],[2] | 0 | |
All Other Securities [Member] | Wrapped Securities [Member] | Other Insurers [Member] | |||
Schedule Of Investments [Line Items] | |||
Total Available-For-Sale, Fair Value | 2 | ||
Gross unrealized losses | 0 | ||
Loss and loss adjustment expense reserves | [1] | $ 0 | |
[1] | Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured. | ||
[2] | Includes investments insured by MBIA Corp. and National. |
Investments (Net Realized Gains
Investments (Net Realized Gains (Losses) From Sales Of Available-For-Sale Securities) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Investments [Abstract] | ||
Proceeds from sales | $ 271 | $ 281 |
Available For Sale Securities Realized Gain Loss [Abstract] | ||
Gross realized gains | 4 | 10 |
Gross realized losses | $ (1) | $ (4) |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Maximum amount of future guarantee payments | $ 575 | |
Cash collateral posted to derivative counterparties | 9 | $ 1 |
Securities posted as collateral to derivative counterparties | 257 | $ 276 |
Fair value of Credit Support Annex | $ 3 |
Derivative Instruments (Credit
Derivative Instruments (Credit Derivatives Sold) (Detail) - Insurance Operations [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Derivative notional amount | $ 3,423 | $ 4,043 |
Total fair value of credit derivatives | $ (88) | $ (66) |
Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Weighted average remaining expected maturity | 3 years 9 months | 3 years 9 months |
Derivative notional amount | $ 530 | $ 588 |
Total fair value of credit derivatives | $ (86) | $ (64) |
Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Weighted average remaining expected maturity | 16 years | 15 years 6 months |
Derivative notional amount | $ 2,893 | $ 3,035 |
Total fair value of credit derivatives | $ (2) | $ (2) |
Insured Swaps - Held for Sale [Member] | ||
Derivative [Line Items] | ||
Weighted average remaining expected maturity | 14 years 3 months | |
Derivative notional amount | $ 0 | $ 420 |
Credit Rating Aaa [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | 0 |
Total fair value of credit derivatives | 0 | |
Credit Rating Aaa [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | 0 |
Credit Rating Aaa [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | |
Credit Rating Aaa [Member] | Other Credit Derivatives [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | |
Credit Rating Aa [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 133 | 137 |
Total fair value of credit derivatives | 0 | |
Credit Rating Aa [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | |
Credit Rating Aa [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 133 | 137 |
Credit Rating Aa [Member] | Other Credit Derivatives [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | |
Credit Rating A [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 2,124 | 2,261 |
Total fair value of credit derivatives | (1) | (1) |
Credit Rating A [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 115 | 115 |
Credit Rating A [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 2,009 | 2,146 |
Credit Rating A [Member] | Other Credit Derivatives [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | |
Credit Rating Bbb [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 731 | 1,152 |
Total fair value of credit derivatives | (1) | (1) |
Credit Rating Bbb [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | |
Credit Rating Bbb [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 731 | 732 |
Credit Rating Bbb [Member] | Insured Swaps - Held for Sale [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | 420 |
Credit Rating Below Investment Grade [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 435 | 493 |
Total fair value of credit derivatives | (86) | (64) |
Credit Rating Below Investment Grade [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 415 | 473 |
Credit Rating Below Investment Grade [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 20 | $ 20 |
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] - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Derivative notional amount | $ 5,020 | $ 5,675 | |
Derivative Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | (328) | (316) |
Derivative Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | [1] | 18 | 25 |
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 1,057 | 1,062 | |
Interest Rate Swap [Member] | Derivative Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | (205) | (213) |
Interest Rate Swap [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | [1] | 3 | 3 |
Credit Default Swap [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 530 | 588 | |
Credit Default Swap [Member] | Derivative Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | (86) | (64) |
Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 2,893 | 3,035 | |
Insured Swaps [Member] | Derivative Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | (2) | (2) |
Interest Rate Swaps V I E [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 0 | 0 | |
Interest Rate Swaps V I E [Member] | Derivative Liabilities V I E [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | 0 | 0 |
Interest Rate Swaps V I E [Member] | Derivative Assets V I E [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | 0 | ||
Interest Rate Swaps Embedded [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 382 | 376 | |
Interest Rate Swaps Embedded [Member] | Medium Term Notes [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | [1] | 2 | 2 |
Derivative Liabilities, Not designated, Fair Value | [1] | (15) | (17) |
Currency Swaps Vie [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 70 | 71 | |
Currency Swaps Vie [Member] | Other Assets V I E [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | 13 | 20 | |
All Other [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 83 | 83 | |
All Other [Member] | Derivative Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | (20) | (20) |
All Other V I E [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 3 | 35 | |
All Other V I E [Member] | Other Assets V I E [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | 0 | ||
All Other Embedded [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 2 | 5 | |
Insured Swaps - Held for Sale [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | $ 0 | $ 420 | |
[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 |
Derivative Instruments (Effect
Derivative Instruments (Effect Of Derivative Instruments On Consolidated Statements Of Operations) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative [Line Items] | ||
Net gain/(loss) recognized in income | $ (55) | $ (77) |
Unrealized Gains Losses On Insured Derivatives [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Net gain/(loss) recognized in income | (22) | (14) |
Realized Gains Losses And Other Settlements On Insured Derivatives [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Net gain/(loss) recognized in income | (31) | (14) |
Foreign Exchange And Other Derivative Financial Instruments [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Net gain/(loss) recognized in income | 4 | (50) |
Foreign Exchange And Other Derivative Financial Instruments [Member] | All Other [Member] | ||
Derivative [Line Items] | ||
Net gain/(loss) recognized in income | 0 | (2) |
Foreign Exchange And Other Derivative Financial Instruments Attributable To V I E [Member] | Interest Rate Swaps V I E [Member] | ||
Derivative [Line Items] | ||
Net gain/(loss) recognized in income | 8 | |
Foreign Exchange And Other Derivative Financial Instruments Attributable To V I E [Member] | Currency Swaps Vie [Member] | ||
Derivative [Line Items] | ||
Net gain/(loss) recognized in income | $ (6) | $ (5) |
Debt (Narrative) (Detail)
Debt (Narrative) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |
Debt Instrument Interest Rate Stated Percentage | 14.00% |
Proceeds from Senior Lenders | $ 325 |
MBIA Corp Financing Facility [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, maturity date | Jan. 20, 2020 |
Long-term debt | $ 321 |
commitment fees | 10 |
MBIA Corp Financing Facility [Member] | Initial [Member] | |
Debt Instrument [Line Items] | |
Long-term debt | 366 |
Mbia Inc [Member] | |
Debt Instrument [Line Items] | |
Proceeds from subordinated financing | 38 |
Mbia Corp [Member] | Undrawn [Member] | |
Debt Instrument [Line Items] | |
Proceeds from subordinated financing | $ 50 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Non Variable Interest Entities [Line Items] | ||
Valuation allowance | $ 62 | $ 7 |
NOL carryforward | 2,600 | |
Foreign tax credit | 62 | |
Alternative minimum tax credit carryforward | $ 26 |
Income Taxes (Income Taxes And
Income Taxes (Income Taxes And Related Effective Tax Rates) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure Income Taxes Income Taxes And Related Effective Tax Rates [Abstract] | ||
Income (loss) before income taxes | $ (120) | $ (101) |
Provision (benefit) for income taxes | $ (48) | $ (23) |
Effective tax rate | 40.00% | 22.80% |
Business Segments (Narrative) (
Business Segments (Narrative) (Detail) | 3 Months Ended |
Mar. 31, 2017segments | |
Disclosure Business Segments Summary Of Companys Segment Results [Abstract] | |
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 | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | ||||
Revenues | [1] | $ 103 | $ 115 | |
Net change in fair value of insured derivatives | (53) | (28) | ||
Net gains (losses) on financial instruments at fair value and foreign exchange | 17 | (69) | ||
Net investment losses related to other-than-temporary impairments | (2) | (1) | ||
Net gains (losses) on extinguishment of debt | 8 | 2 | ||
Other net realized gains (losses) | 3 | (1) | ||
Revenues of consolidated VIEs | 1 | 14 | ||
Inter-segment revenues | [2] | 0 | 0 | |
Total revenues | 77 | 32 | ||
Losses and loss adjustment | 94 | 22 | ||
Operating | 36 | 45 | ||
Interest | 48 | 50 | ||
Expenses of consolidated VIEs | 19 | 16 | ||
Inter-segment expenses | [2] | 0 | 0 | |
Total expenses | 197 | 133 | ||
Income (loss) before income taxes | (120) | (101) | ||
Provision (benefit) for income taxes | (48) | (23) | ||
Net income (loss) | (72) | (78) | ||
Identifiable assets | 11,017 | 12,751 | $ 11,137 | |
U S Public Finance Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Losses and loss adjustment | 11 | 9 | ||
Operating Segments [Member] | U S Public Finance Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | [1] | 68 | 84 | |
Net gains (losses) on financial instruments at fair value and foreign exchange | 4 | 9 | ||
Net investment losses related to other-than-temporary impairments | (2) | |||
Inter-segment revenues | [2] | 5 | 6 | |
Total revenues | 75 | 99 | ||
Losses and loss adjustment | 11 | 9 | ||
Operating | 10 | 9 | ||
Inter-segment expenses | [2] | 15 | 18 | |
Total expenses | 36 | 36 | ||
Income (loss) before income taxes | 39 | 63 | ||
Provision (benefit) for income taxes | 12 | 22 | ||
Net income (loss) | 27 | 41 | ||
Identifiable assets | 5,128 | 5,268 | ||
Operating Segments [Member] | Corporate Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | [1] | 8 | 5 | |
Net gains (losses) on financial instruments at fair value and foreign exchange | 16 | (84) | ||
Net investment losses related to other-than-temporary impairments | (1) | |||
Net gains (losses) on extinguishment of debt | 8 | 2 | ||
Other net realized gains (losses) | (1) | (1) | ||
Inter-segment revenues | [2] | 16 | 16 | |
Total revenues | 47 | (63) | ||
Operating | 18 | 22 | ||
Interest | 22 | 23 | ||
Inter-segment expenses | [2] | 1 | ||
Total expenses | 41 | 45 | ||
Income (loss) before income taxes | 6 | (108) | ||
Provision (benefit) for income taxes | (4) | (24) | ||
Net income (loss) | 10 | (84) | ||
Identifiable assets | 2,335 | 2,478 | ||
Operating Segments [Member] | International And Structured Finance Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | [1] | 27 | 26 | |
Net change in fair value of insured derivatives | (53) | (28) | ||
Net gains (losses) on financial instruments at fair value and foreign exchange | (3) | 6 | ||
Other net realized gains (losses) | 4 | |||
Revenues of consolidated VIEs | 1 | 14 | ||
Inter-segment revenues | [2] | 9 | 12 | |
Total revenues | (15) | 30 | ||
Losses and loss adjustment | 83 | 13 | ||
Operating | 8 | 14 | ||
Interest | 26 | 27 | ||
Expenses of consolidated VIEs | 19 | 16 | ||
Inter-segment expenses | [2] | 14 | 14 | |
Total expenses | 150 | 84 | ||
Income (loss) before income taxes | (165) | (54) | ||
Provision (benefit) for income taxes | (57) | (23) | ||
Net income (loss) | (108) | (31) | ||
Identifiable assets | 6,502 | 7,845 | ||
Intersegment Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Inter-segment revenues | [2] | (30) | (34) | |
Total revenues | (30) | (34) | ||
Inter-segment expenses | [2] | (30) | (32) | |
Total expenses | (30) | (32) | ||
Income (loss) before income taxes | 0 | (2) | ||
Provision (benefit) for income taxes | 1 | 2 | ||
Net income (loss) | (1) | (4) | ||
Identifiable assets | [3] | $ (2,948) | $ (2,840) | |
[1] | Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. | |||
[2] | Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. | |||
[3] | Consists of intercompany deferred income taxes, reinsurance balances and repurchase agreements. |
Business Segments (Summary Of P
Business Segments (Summary Of Premiums Earned On Financial Guarantees And Insured Derivatives By Geographic Location Of Risk) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Total premiums earned | $ 50 | $ 76 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Total premiums earned | 41 | 59 |
United Kingdom [Member] | ||
Segment Reporting Information [Line Items] | ||
Total premiums earned | 0 | 7 |
Europe Excluding United Kingdom [Member] | ||
Segment Reporting Information [Line Items] | ||
Total premiums earned | 1 | 1 |
Other Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Total premiums earned | 7 | 7 |
Asia [Member] | ||
Segment Reporting Information [Line Items] | ||
Total premiums earned | 0 | 1 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total premiums earned | $ 1 | $ 1 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive Shares [Abstract] | ||
Antidilutive stock options, restricted stock and warrants outstanding | 14.8 | 16.7 |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Basic earnings per share: [Abstract] | ||
Net income (loss) | $ (72) | $ (78) |
Less: Undistributed earnings allocated to participating securities | 0 | 0 |
Net income (loss) available to common stockholders | $ (72) | $ (78) |
Basic weighted average shares | 131,402,465 | 135,814,835 |
Basic | $ (0.55) | $ (0.58) |
Diluted earnings per share: [Abstract] | ||
Net income (loss) | $ (72) | $ (78) |
Less: Undistributed earnings allocated to participating securities | 0 | 0 |
Net income (loss) available to common stockholders | $ (72) | $ (78) |
Basic weighted average shares | 131,402,465 | 135,814,835 |
Stock options | 0 | 0 |
Warants | 0 | 0 |
Diluted weighted average shares | 131,402,465 | 135,814,835 |
Diluted | $ (0.55) | $ (0.58) |
Unvested Restricted Stock And Units That Receive Nonforfeitable Dividends Or Dividend Equivalents That Have Met Service Condition | 300,000 | 700,000 |
Accumulated Other Comprehensi74
Accumulated Other Comprehensive Income (Changes In The Components Of AOCI) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Beginning balance | $ (128) | ||
Other comprehensive income (loss) before reclassification | [1] | 97 | |
Amounts reclassified from AOCI | 0 | ||
Total other comprehensive income (loss) | 97 | $ 66 | |
Ending balance | (31) | ||
Unrealized gains (losses) on AFS, net [Member] | |||
Beginning balance | 6 | ||
Other comprehensive income (loss) before reclassification | (26) | ||
Amounts reclassified from AOCI | 0 | ||
Total other comprehensive income (loss) | (26) | ||
Ending balance | (20) | ||
Foreign currency translation, net [Member] | |||
Beginning balance | (134) | ||
Other comprehensive income (loss) before reclassification | 123 | ||
Amounts reclassified from AOCI | 0 | ||
Total other comprehensive income (loss) | 123 | ||
Ending balance | $ (11) | ||
[1] | Represents items included in the Company's loss calculation to adjust the carrying value of MBIA UK to its fair value less costs to sell for the year ended December 31, 2016. The sale was completed in January of 2017 and as such, these amounts included in AOCI were reversed and included in the Sale Transaction. |
Accumulated Other Comprehensi75
Accumulated Other Comprehensive Income (Details Of The Reclassification From AOCI) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net gains (losses) on financial instruments at fair value and foreign exchange | $ 17 | $ (69) |
Income (loss) before income taxes | (120) | (101) |
Provision (benefit) for income taxes | (48) | (23) |
Net income (loss) | (72) | (78) |
Amounts reclassified from AOCI [Member] | ||
Net income (loss) | 0 | 3 |
Unrealized gains (losses) on AFS, net [Member] | Amounts reclassified from AOCI [Member] | ||
Net gains (losses) on financial instruments at fair value and foreign exchange | 2 | 8 |
Other-than-temporary impairments recognized in accumulated other comprehensive income (loss) | (2) | 0 |
Net investment income | 0 | (3) |
Income (loss) before income taxes | 0 | 5 |
Provision (benefit) for income taxes | 0 | 2 |
Net income (loss) | $ 0 | $ 3 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Detail) $ in Millions | Mar. 31, 2017USD ($)Lawsuits |
Commitments and Contingencies [Abstract] | |
Other material lawsuits pending | Lawsuits | 0 |
Operating leases future minimum payments due | $ | $ 38 |