Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 29, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000814585 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2019 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Trading Symbol | MBI | |
Entity Registrant Name | MBIA INC | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 80,051,402 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity File Number | 1-9583 | |
Entity Tax Identification Number | 06-1185706 | |
Entity Address, Address Line One | 1 Manhattanville Road, Suite 301 | |
Entity Address, City or Town | Purchase | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10577 | |
Entity Incorporation, State or Country Code | CT | |
City Area Code | 914 | |
Local Phone Number | 273-4545 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Investments: | ||
Cash and cash equivalents | $ 81 | $ 280 |
Total assets | 7,606 | 8,107 |
Liabilities: | ||
Total liabilities | 6,558 | 6,975 |
Commitments and contingencies (Refer to Note 14: Commitments and Contingencies) | ||
Equity: | ||
Preferred stock, par value $1 per share; authorized shares--10,000,000; issued and outstanding—none | 0 | 0 |
Common stock, par value $1 per share; authorized shares--400,000,000; issued shares--283,625,689 and 283,625,689 | 284 | 284 |
Additional paid-in capital | 2,997 | 3,025 |
Retained earnings | 850 | 966 |
Accumulated other comprehensive income (loss), net of tax of $21 and $8 | (43) | (156) |
Treasury stock, at cost--203,157,759 and 193,803,976 shares | (3,053) | (3,000) |
Total shareholders' equity of MBIA Inc. | 1,035 | 1,119 |
Preferred stock of subsidiary | 13 | 13 |
Total equity | 1,048 | 1,132 |
Total liabilities and equity | 7,606 | 8,107 |
Non Variable Interest Entity [Member] | ||
Investments: | ||
Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $2,734 and $3,601) | 2,840 | 3,565 |
Investments carried at fair value | 217 | 222 |
Investments pledged as collateral, at fair value (amortized cost $14 and $46) | 10 | 43 |
Short-term investments, at fair value (amortized cost $429 and $241) | 428 | 241 |
Other investments at amortized cost | 0 | 1 |
Total investments | 3,495 | 4,072 |
Cash and cash equivalents | 76 | 222 |
Premiums receivable | 273 | 296 |
Deferred acquisition costs | 63 | 74 |
Insurance loss recoverable | 1,843 | 1,595 |
Other assets | 224 | 122 |
Liabilities: | ||
Unearned premium revenue | 499 | 587 |
Loss and loss adjustment expense reserves | 859 | 965 |
Long-term debt | 2,199 | 2,249 |
Medium-term notes (includes financial instruments carried at fair value of $106 and $102) | 670 | 722 |
Investment agreements | 310 | 311 |
Derivative liabilities | 194 | 199 |
Other liabilities | 195 | 198 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Investments: | ||
Investments carried at fair value | 88 | 157 |
Other assets | 25 | 31 |
Cash | 5 | 58 |
Investments held-to-maturity, at amortized cost (fair value $977 and $925) | 890 | 890 |
Loans receivable at fair value | 146 | 172 |
Loan repurchase commitments | 478 | 418 |
Liabilities: | ||
Variable interest entity notes (includes financial instruments carried at fair value of $472 and $480) | $ 1,632 | $ 1,744 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
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 | 283,625,689 | 283,625,689 |
Accumulated other comprehensive income (loss), taxes | $ 21 | $ 8 |
Treasury stock, shares | 203,157,759 | 193,803,976 |
Non Variable Interest Entity [Member] | ||
Fixed-maturity securities held as available-for-sale, amortized cost | $ 2,734 | $ 3,601 |
Investments pledged as collateral, amortized cost | 14 | 46 |
Short-term investments, amortized cost | 429 | 241 |
Medium-term notes, financial instruments carried at fair value | 106 | 102 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Investments held-to-maturity, fair value | 977 | 925 |
Variable interest entity notes, financial instruments carried at fair value | $ 472 | $ 480 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Change in fair value of insured derivatives: | ||||
Unrealized gains (losses) on insured derivatives | $ 23 | $ 36 | ||
Net investment losses related to other-than-temporary impairments: | ||||
Total revenues | $ 172 | $ 105 | 252 | 190 |
Expenses: | ||||
Total expenses | 83 | 150 | 389 | 477 |
Income (loss) before income taxes | 89 | (45) | (137) | (287) |
Provision (benefit) for income taxes | 18 | 0 | (21) | 2 |
Net income (loss) | $ 71 | $ (45) | $ (116) | $ (289) |
Net income (loss) per common share: | ||||
Basic | $ 0.86 | $ (0.50) | $ (1.40) | $ (3.24) |
Diluted | $ 0.86 | $ (0.50) | $ (1.40) | $ (3.24) |
Weighted average number of common shares outstanding: | ||||
Basic | 78,686,542 | 89,490,267 | 82,813,523 | 89,075,892 |
Diluted | 78,686,542 | 89,490,267 | 82,813,523 | 89,075,892 |
Non Variable Interest Entity [Member] | ||||
Premiums earned: | ||||
Scheduled premiums earned | $ 17 | $ 44 | $ 52 | $ 96 |
Refunding premiums earned | 3 | 18 | 13 | 42 |
Premiums earned (net of ceded premiums of $1, $1, $4 and $4) | 20 | 62 | 65 | 138 |
Net investment income | 27 | 31 | 89 | 96 |
Fees and reimbursements | 0 | 17 | 1 | 23 |
Change in fair value of insured derivatives: | ||||
Realized gains (losses) and other settlements on insured derivatives | (9) | (5) | (10) | (49) |
Unrealized gains (losses) on insured derivatives | 9 | 4 | 23 | 36 |
Net change in fair value of insured derivatives | 0 | (1) | 13 | (13) |
Net gains (losses) on financial instruments at fair value and foreign exchange | 44 | 5 | 40 | 18 |
Net investment losses related to other-than-temporary impairments: | ||||
Other-than-temporary impairments recognized in accumulated other comprehensive income (loss) | 0 | (1) | (37) | (3) |
Net investment losses related to other-than-temporary impairments | 0 | (1) | (37) | (3) |
Net gains (losses) on extinguishment of debt | (1) | 3 | (1) | 3 |
Other net realized gains (losses) | 0 | 1 | 2 | 0 |
Expenses: | ||||
Losses and loss adjustment | (13) | 46 | 89 | 177 |
Amortization of deferred acquisition costs | 3 | 9 | 9 | 17 |
Operating | 23 | 18 | 68 | 57 |
Interest | 50 | 52 | 154 | 155 |
Variable Interest Entity Primary Beneficiary [Member] | ||||
Premiums earned: | ||||
Net investment income | 10 | 9 | 30 | 25 |
Change in fair value of insured derivatives: | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 76 | 12 | 112 | 29 |
Net investment losses related to other-than-temporary impairments: | ||||
Other net realized gains (losses) | (4) | (33) | (62) | (126) |
Expenses: | ||||
Operating | 2 | 3 | 6 | 8 |
Interest | $ 18 | $ 22 | $ 63 | $ 63 |
Consolidated Statements Of Op_2
Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financial Guarantee Insurance Segment [Member] | ||||
Ceded premiums earned | $ 1 | $ 1 | $ 4 | $ 4 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statements of Comprehensive Income (Loss) | ||||
Net income (loss) | $ 71 | $ (45) | $ (116) | $ (289) |
Unrealized gains (losses) on available-for-sale securities: [Abstract] | ||||
Unrealized gains (losses) arising during the period | 39 | (4) | 164 | (61) |
Provision (benefit) for income taxes | (11) | 0 | 29 | 5 |
Total | 50 | (4) | 135 | (66) |
Reclassification adjustments for (gains) losses included in net income (loss) | 8 | (2) | (15) | (3) |
Available-for-sale securities with other-than-temporary impairments: [Abstract] | ||||
Other-than-temporary impairments and unrealized gains (losses) arising during the period | (32) | 25 | (2) | 48 |
Reclassification adjustments for (gains) losses included in net income (loss) | (42) | 2 | (5) | 3 |
Foreign currency translation: [Abstract] | ||||
Foreign currency translation gains (losses) | 1 | 0 | 1 | 2 |
Instrument-specific credit risk of liabilities measured at fair value: [Abstract] | ||||
Unrealized gains (losses) arising during the period | (27) | 28 | (27) | (4) |
Reclassification adjustments for (gains) losses included in net income (loss) | 3 | 0 | 26 | 0 |
Total other comprehensive income (loss) | (39) | 49 | 113 | (20) |
Comprehensive income (loss) | $ 32 | $ 4 | $ (3) | $ (309) |
Consolidated Statement Of Chang
Consolidated Statement Of Changes In Shareholders' Equity - USD ($) $ in Millions | Total | Preferred Stock [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, 2017 | $ 1,413 | $ 3,171 | $ 1,095 | $ (19) | $ (3,118) | |||
Balance (in common stock shares) at Dec. 31, 2017 | 283,717,973 | |||||||
Balance (in treasury stock shares) at Dec. 31, 2017 | (192,233,526) | |||||||
Cumulative effect of prospective application of new accounting principle | ASU 2016-01 [Member] | 164 | (164) | ||||||
Cumulative effect of prospective application of new accounting principle | ASU 2018-02 [Member] | 3 | (3) | ||||||
Net income (loss) | $ (289) | (289) | ||||||
Total other comprehensive income (loss) | (20) | (20) | ||||||
Treasury shares issued | (21) | $ 34 | ||||||
Treasury shares issued (in shares) | 1,277,620 | |||||||
Treasury shares acquired | $ (14) | |||||||
Treasury shares acquired (in shares) | (1,961,711) | |||||||
Share-based compensation, net of tax | 5 | $ 0 | ||||||
Share-based compensation (in shares) | (92,284) | (18,412) | ||||||
Period change | (305) | |||||||
Total equity balance at Sep. 30, 2018 | 1,120 | $ 12 | 1,108 | $ 284 | 3,155 | 973 | (206) | $ (3,098) |
Balance (in common stock shares) at Sep. 30, 2018 | 283,625,689 | |||||||
Balance (in treasury stock shares) at Sep. 30, 2018 | (192,936,029) | |||||||
Balance (in preferred stock shares) at Sep. 30, 2018 | 1,315 | |||||||
Total equity balance at Jun. 30, 2018 | 1,103 | 3,154 | 1,018 | (255) | $ (3,098) | |||
Balance (in common stock shares) at Jun. 30, 2018 | 283,625,689 | |||||||
Balance (in treasury stock shares) at Jun. 30, 2018 | (192,963,698) | |||||||
Cumulative effect of prospective application of new accounting principle | ASU 2016-01 [Member] | 0 | 0 | ||||||
Cumulative effect of prospective application of new accounting principle | ASU 2018-02 [Member] | 0 | 0 | ||||||
Net income (loss) | (45) | (45) | ||||||
Total other comprehensive income (loss) | 49 | 49 | ||||||
Treasury shares issued | 0 | $ 0 | ||||||
Treasury shares issued (in shares) | 0 | |||||||
Treasury shares acquired | $ 0 | |||||||
Treasury shares acquired (in shares) | 0 | |||||||
Share-based compensation, net of tax | 1 | $ 0 | ||||||
Share-based compensation (in shares) | 0 | 27,669 | ||||||
Period change | 5 | |||||||
Total equity balance at Sep. 30, 2018 | 1,120 | $ 12 | 1,108 | $ 284 | 3,155 | 973 | (206) | $ (3,098) |
Balance (in common stock shares) at Sep. 30, 2018 | 283,625,689 | |||||||
Balance (in treasury stock shares) at Sep. 30, 2018 | (192,936,029) | |||||||
Balance (in preferred stock shares) at Sep. 30, 2018 | 1,315 | |||||||
Total equity balance at Dec. 31, 2018 | $ 1,132 | 1,119 | 3,025 | 966 | (156) | $ (3,000) | ||
Balance (in common stock shares) at Dec. 31, 2018 | 283,625,689 | 283,625,689 | ||||||
Balance (in treasury stock shares) at Dec. 31, 2018 | (193,803,976) | (193,803,976) | ||||||
Cumulative effect of prospective application of new accounting principle | ASU 2016-01 [Member] | 0 | 0 | ||||||
Cumulative effect of prospective application of new accounting principle | ASU 2018-02 [Member] | 0 | 0 | ||||||
Net income (loss) | $ (116) | (116) | ||||||
Total other comprehensive income (loss) | 113 | 113 | ||||||
Treasury shares issued | 0 | $ 0 | ||||||
Treasury shares issued (in shares) | 0 | |||||||
Treasury shares acquired | $ (93) | |||||||
Treasury shares acquired (in shares) | (10,273,891) | |||||||
Share-based compensation, net of tax | (28) | $ 40 | ||||||
Share-based compensation (in shares) | 0 | 920,108 | ||||||
Period change | (84) | |||||||
Total equity balance at Sep. 30, 2019 | $ 1,048 | $ 13 | 1,035 | $ 284 | 2,997 | 850 | (43) | $ (3,053) |
Balance (in common stock shares) at Sep. 30, 2019 | 283,625,689 | 283,625,689 | ||||||
Balance (in treasury stock shares) at Sep. 30, 2019 | (203,157,759) | (203,157,759) | ||||||
Balance (in preferred stock shares) at Sep. 30, 2019 | 0 | 1,315 | ||||||
Total equity balance at Jun. 30, 2019 | 1,040 | 2,995 | 779 | (4) | $ (3,014) | |||
Balance (in common stock shares) at Jun. 30, 2019 | 283,625,689 | |||||||
Balance (in treasury stock shares) at Jun. 30, 2019 | (198,824,693) | |||||||
Cumulative effect of prospective application of new accounting principle | ASU 2016-01 [Member] | 0 | 0 | ||||||
Cumulative effect of prospective application of new accounting principle | ASU 2018-02 [Member] | 0 | 0 | ||||||
Net income (loss) | $ 71 | 71 | ||||||
Total other comprehensive income (loss) | (39) | (39) | ||||||
Treasury shares issued | 0 | $ 0 | ||||||
Treasury shares issued (in shares) | 0 | |||||||
Treasury shares acquired | $ (39) | |||||||
Treasury shares acquired (in shares) | (4,341,232) | |||||||
Share-based compensation, net of tax | 2 | $ 0 | ||||||
Share-based compensation (in shares) | 0 | 8,166 | ||||||
Period change | (5) | |||||||
Total equity balance at Sep. 30, 2019 | $ 1,048 | $ 13 | $ 1,035 | $ 284 | $ 2,997 | $ 850 | $ (43) | $ (3,053) |
Balance (in common stock shares) at Sep. 30, 2019 | 283,625,689 | 283,625,689 | ||||||
Balance (in treasury stock shares) at Sep. 30, 2019 | (203,157,759) | (203,157,759) | ||||||
Balance (in preferred stock shares) at Sep. 30, 2019 | 0 | 1,315 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Premiums, fees and reimbursements received | $ 19 | $ 73 |
Investment income received | 143 | 162 |
Insured derivative commutations and losses paid | (11) | (49) |
Financial guarantee losses and loss adjustment expenses paid | (477) | (367) |
Proceeds from recoveries and reinsurance | 117 | 46 |
Operating and employee related expenses paid | (60) | (68) |
Interest paid, net of interest converted to principal | (144) | (119) |
Income taxes (paid) received | (2) | (1) |
Net cash provided (used) by operating activities | (415) | (323) |
Cash flows from investing activities: | ||
Purchases of available-for-sale investments | (1,759) | (1,684) |
Sales of available-for-sale investments | 1,875 | 1,647 |
Paydowns and maturities of available-for-sale investments | 722 | 245 |
Purchases of investments at fair value | (129) | (142) |
Sales, paydowns, maturities and other proceeds of investments at fair value | 583 | 162 |
Sales, paydowns and maturities (purchases) of short-term investments, net | (131) | 269 |
Paydowns and maturities of loans receivable | 68 | 365 |
Consolidation of variable interest entities | 72 | 0 |
Deconsolidation of variable interest entities | (2) | (7) |
(Payments) proceeds for derivative settlements | (95) | (19) |
Net cash provided (used) by investing activities | 1,204 | 836 |
Cash flows from financing activities: | ||
Proceeds from investment agreements | 11 | 9 |
Principal paydowns of investment agreements | (13) | (30) |
Principal paydowns of medium-term notes | (57) | (62) |
Principal paydowns of variable interest entity notes | (671) | (382) |
Principal paydowns of long-term debt | (150) | 0 |
Purchases of treasury stock | (96) | (15) |
Other financing | (12) | 0 |
Net cash provided (used) by financing activities | (988) | (480) |
Net increase (decrease) in cash and cash equivalents | (199) | 33 |
Cash and cash equivalents—beginning of period | 280 | 146 |
Cash and cash equivalents—end of period | 81 | 179 |
Reconciliation of net income (loss) to net cash provided (used) by operating activities: | ||
Net income (loss) | (116) | (289) |
Change in: | ||
Premiums receivable | 40 | 54 |
Deferred acquisition costs | 9 | 18 |
Accrued investment income | 19 | 9 |
Unearned premium revenue | (88) | (142) |
Loss and loss adjustment expense reserves | (34) | 50 |
Insurance loss recoverable | (249) | (192) |
Accrued interest payable | 75 | 113 |
Accrued expenses | 5 | (10) |
Net investment losses related to other-than-temporary impairments | 37 | 3 |
Unrealized (gains) losses on insured derivatives | (23) | (36) |
Net (gains) losses on financial instruments at fair value and foreign exchange | (152) | (47) |
Other net realized (gains) losses | 60 | 126 |
Deferred income tax provision (benefit) | (29) | 1 |
Interest on variable interest entities, net | (4) | 14 |
Other operating | 35 | 5 |
Total adjustments to net income (loss) | (299) | (34) |
Net cash provided (used) by operating activities | $ (415) | $ (323) |
Business Developments and Risks
Business Developments and Risks and Uncertainties | 9 Months Ended |
Sep. 30, 2019 | |
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 within the financial guarantee insurance industry. MBIA manages three operating segments: 1) United States (“U.S.”) public finance insurance; 2) corporate; and 3) international and structured finance insurance. The Company’s U.S. public finance insurance business is managed through National Public Finance Guarantee Corporation (“National”), the corporate segment is operated through MBIA Inc. and several of its subsidiaries, including its service company, MBIA Services Corporation (“MBIA Services”) and its international and structured finance insurance business is primarily operated through MBIA Insurance Corporation and its subsidiaries (“MBIA Corp.”). Refer to “Note 11: Business Segments” for further information about the Company’s operating segments. Business Developments Puerto Rico On January 1, 2019 and July 1, 2019, the Commonwealth of Puerto Rico and certain of its instrumentalities (“Puerto Rico”) defaulted on scheduled debt service for National insured bonds and National paid gross claims in the aggregate of $393 million. As of September 30, 2019, National had $2.4 billion of gross insured par outstanding related to Puerto Rico. Refer to the “Risks and Uncertainties” section below for additional information on the Company’s Puerto Rico exposures. PREPA RSA In September of 2019, National agreed to join the restructuring support agreement, as amended (“RSA”), with the Puerto Rico Electric Power Authority (“PREPA”), other monoline insurers, a group of uninsured PREPA bondholders, Puerto Rico, and the Financial Oversight and Management Board for Puerto Rico. The restructuring transaction described in the RSA is intended to, among other things, provide a framework for the consensual resolution of the treatment of National’s insured PREPA revenue bonds in PREPA’s recovery plan. Upon consummation of the restructuring transaction, PREPA’s revenue bonds will be exchanged into new securitization bonds issued by a special purpose entity and secured by a segregated transition charge assessed on customer’s electricity bills. The closing of the restructuring transaction is subject to a number of conditions, including the Title III Court’s approval of the RSA and settlement described therein, support of a minimum of 67% of voting bondholders for a plan of adjustment that includes th e COFINA Plan of Adjustment In February of 2019, the District Court confirmed the Puerto Rico Sales Tax Financing Corporation (“COFINA”) Plan of Adjustment, including the settlement agreement between Puerto Rico and COFINA. National insured bondholders were given the option of commuting their insurance policy and receiving uninsured COFINA bonds or placing their new uninsured COFINA bonds into the National Custodial Trusts (the “Trusts”), receive Trust certificates and continue to benefit from a National insurance policy. The Trusts operate on a pass-through basis; as the Trusts receive debt service payments from the new COFINA bonds, or sells these new bonds, the Trusts’ cash will be paid to the Trusts’ certificate holders and National’s insured exposure will reduce accordingly. To the extent National’s policy obligations have not been satisfied by the maturity date of the original National insurance policies, the Trusts’ certificate holders will receive a claim payment from National at their maturity date for any remaining amounts. The Trusts were consolidated as variable interest entities (“VIEs”) within the U.S. public finance segment during the first quarter of 2019. Refer to “Note 4: Variable Interest Entities” for additional information about the COFINA VIEs. During the third quarter of 2019, all of the uninsured bonds held in the Trusts were sold and the proceeds were used to extinguish a substantial amount of debt issued by the Trusts. MBIA Corp. Financing Facility In July of 2019, MBIA Corp. consummated a financing facility (the “Refinanced Facility”) between MZ Funding LLC (“MZ Funding”) and certain purchasers, pursuant to which the purchasers or their affiliates (collectively, the “Senior Lenders”), agreed to refinance the outstanding insured senior notes of MZ Funding, and MBIA Inc. received amended subordinated notes of MZ Funding. In connection with the refinancing transaction, MZ Funding and MBIA Corp. entered into an amended and restated credit agreement (the “New Credit Agreement” and the loans thereunder, the “MBIA Loans”). MBIA Corp. issued new financial guarantee insurance policies insuring the Refinanced Facility. Refer to “Note 9: Debt” for further information on the Refinanced 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 statements and business objectives in future periods. U.S. Public Finance Market Conditions National continues to monitor and remediate its existing insured portfolio and will seek opportunities to enhance shareholder value using its substantial financial resources, while protecting the interests of all policyholders. Certain state and local governments and territory obligors that National insures are under financial and budgetary stress. This could lead to an increase in defaults by such entities on the payment of their obligations and losses or impairments on a greater number of National’s insured transactions. National monitors and analyzes these situations and other stressed credits closely, and the overall extent and duration of this stress is uncertain. Puerto Rico is experiencing significant fiscal stress and constrained liquidity due to, among other things, Puerto Rico’s structural budget imbalance, the lack of access to the capital markets, a stagnating local economy, net migration of people out of Puerto Rico and a high debt burden. Puerto Rico continues in its efforts to rebuild its infrastructure and to otherwise recover from the impact of Hurricane Maria in 2017, aided in part by Federal Emergency Management Agency and other federal agencies. As part of the Title III proceedings under Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”), Puerto Rico submitted several draft fiscal plans and an independent Financial Oversight and Management Board for Puerto Rico (“Oversight Board”) voted to certify the most recent fiscal plan. The current plan, or any revisions thereto, can provide no assurance that National will fully recover past amounts paid or future amounts that may be covered under its insurance policies. In addition, the extent and duration of such aid is inherently uncertain, and the necessary and greater involvement of the federal government, through its actions to deliver disaster relief and other support services, in addition to the role of the Oversight Board and the role of Puerto Rico in its own recovery, heightens political risk in connection with the restructuring of legacy debt. This risk could lead the Oversight Board, Puerto Rico or the federal government to seek to extract greater concessions from creditors based on the uncertainty of Puerto Rico’s long term recovery prospects. In this event, losses at National on select Puerto Rico exposures could increase materially. MBIA Corp. Insured Portfolio MBIA Corp.’s primary objectives are to satisfy all claims by its policyholders and to maximize future recoveries, if any, for its senior lending and surplus note holders, and then its preferred stock holders. MBIA Corp. is executing this strategy by, among other things, pursuing various actions focused on maximizing the collection of recoveries and by reducing potential losses on its insurance exposures. MBIA Corp.’s insured portfolio performance could deteriorate and result in additional significant loss reserves and claim payments. MBIA Corp.’s ability to meet its obligations is limited by available liquidity and its ability to secure additional liquidity through financing and other transactions. There can be no assurance that MBIA Corp. will be successful in generating sufficient resources to meet its obligations. Zohar and RMBS Recoveries Payment of claims totaling $919 million in November of 2015 and January of 2017, on MBIA Corp.’s policies insuring the Class A-1 A-2 2003-1, 2005-1, While the stay of litigation provided for in the settlement has expired, on September 27, 2019, the Court ruled that the monetization process will continue, which ruling has been appealed though not stayed. Salvage and subrogation recoveries related to Zohar I and Zohar II are reported within “Insurance loss recoverable” on the Company’s consolidated balance sheet. Notwithstanding the Zohar Bankrup tcy Settlement, there can be no assurance 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. In particular, on October 17, 2019, one of the companies (Dura Automotive Systems, LLC), and certain of its affiliates, filed for bankruptcy protection in federal bankruptcy court in the Middle District of Tennessee (the “Dura Bankruptcy Cases”). On November 1, 2019, the Court overseeing the Zohar Funds Bankruptcy Cases entered an Order directing that, effective November 8, 2019, the Dura Bankruptcy Cases shall be transferred to the District of Delaware. The Zohar debtors have substantial interests in the Dura debtors, and hold secured term loan indebtedness and an indirect interest in the majority of the equity in the Dura debtors. There can be no assurance that the outcome of the Dura Bankruptcy Cases will not have a material adverse impact on MBIA Corp.’s ability to recover all or substantially all of the payments it made on Zohar II. MBIA Corp. also projects to collect excess spread from insured residential mortgage-backed securities (“RMBS”), and to recover proceeds from Credit Suisse Securities (USA) LLC and DLJ Mortgage Capital, Inc. (collectively, “Credit Suisse”) arising from its failure to repurchase ineligible loans that were included in a Credit Suisse sponsored RMBS transaction. However, the amount and timing of these recoveries and collections are uncertain. Failure to collect a substantial amount of its expected recoveries could impede MBIA Corp.’s ability to make payments when due on other policies. MBIA Corp. believes that if the New York State Department of Financial Services (“NYSDFS”) concludes at any time that MBIA Insurance Corporation will not be able to pay its policyholder claims, the NYSDFS would likely put MBIA Insurance Corporation into a rehabilitation or liquidation proceeding under Article 74 of the New York Insurance Law (“NYIL”) and/or take such other actions as the NYSDFS may deem necessary to protect the interests of MBIA Insurance Corporation’s policyholders. The determination to commence such a proceeding or take other such actions is within the exclusive control of the NYSDFS. Given the separation of MBIA Inc. and MBIA Corp. as distinct legal entities, the absence of any cross defaults between the entities and the lack of reliance by MBIA Inc. on MBIA Corp. for dividends, the Company does not believe that a rehabilitation or liquidation proceeding with respect to MBIA Insurance Corporation would have any significant liquidity impact on MBIA Inc. Such a proceeding could have material adverse consequences for MBIA Corp., including the termination of insured credit default swaps (“CDS”) and other derivative contracts for which counterparties may assert market-based claims, the acceleration of debt obligations issued by affiliates and insured by MBIA Corp., the loss of control of MBIA Insurance Corporation to a rehabilitator or liquidator, and unplanned costs. Refer to “Note 5: Loss and Loss Adjustment Expense Reserves” for additional information about MBIA Corp.’s recoveries . Corporate Liquidity Subsequent to September 30, 2019, National declared and paid a dividend of $110 million to its ultimate parent, MBIA Inc. 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. continues to have liquidity risk that could be caused by interruption of or reduction in dividends or tax payments received from operating subsidiaries, deterioration in the performance of invested assets, impaired access to the capital markets, as well as other factors, which are not anticipated at this time. Furthermore, failure by MBIA Inc. to settle liabilities that are insured by MBIA Corp. could result in claims on MBIA Corp. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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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 10-K. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q S-X 10-K The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As additional information becomes available or actual amounts become determinable, the recorded estimates are revised and reflected in operating results. The results of operations for the three and nine months ended September 30, 2019 may not be indicative of the results that may be expected for the year ending December 31, 2019. The December 31, 2018 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP for annual periods. Loss and Loss Adjustment Expenses The Company recognizes loss reserves on a contract-by-contract The Company recognizes potential recoveries on paid claims based on probability-weighted net cash inflows present valued at applicable risk-free rates as of the measurement date. Such amounts are reported within “Insurance loss recoverable” on the Company’s consolidated balance sheets. To the extent the Company had recorded potential recoveries in its loss reserves previous to a claim payment, such recoveries are reclassified to “Insurance loss recoverable” upon payment of the related claim and remeasured each reporting period. Beginning with the second quarter of 2019, the Company changed its presentation of its insurance loss recoverable and its loss and loss adjustment expense (“LAE”) reserves related to its insured first-lien RMBS exposure. The Company’s first-lien RMBS insurance loss recoverable previously represented discounted and probability-weighted estimated recoveries, net of claims expected to be paid, when the result was a net receivable, and its first-lien RMBS loss and LAE reserves previously represented discounted and probability-weighted estimated claims, net of expected recoveries to be collected, when the result was a net payable. The Company now reports its first-lien RMBS insurance loss recoverable gross of expected claim payments and all expected claim payments are reported within loss and LAE reserves on the Company’s balance sheet. This treatment is consistent with the Company’s balance sheet presentation for insurance loss recoverable and loss and LAE reserves of its other major insured exposures. Certain amounts have been reclassified in prior years’ financial statements to conform to the current presentation. This includes a reclassification of $31 million resulting in an increase to insurance loss recoverable and a corresponding increase to loss and LAE reserves on the Company’s consolidated balance sheet as of December 31, 2018. This reclassification had no impact on total revenues, total expenses, shareholders’ equity, operating cash flows, investing cash flows, or financing cash flows for all periods presented. In addition, prior period amounts included in the Company’s disclosures have been updated to reflect the new presentation. The Company’s loss reserve, insurance loss recoverable, and accruals for LAE incurred are disclosed in “Note 5: Loss and Loss Adjustment Expense Reserves.” |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
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Recent Accounting Pronouncements | Note 3: Recent Accounting Pronouncements Recently Adopted Accounting Standards Leases (Topic 842) (ASU 2016-02) In February of 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, 2016-02 2016-02 right-of-use right-of-use right-of-use The Company adopted ASU 2016-02 Accounting Stand ards Codifi cation (“ASC”) Topic 840, Leases, and do not include any retrospective adjustments to comparative periods to reflect the adoption of ASU 2016-02. The Company recorded a right-of-use asset and lease liability of $ million. The gross up of the assets and liabilities does not have a cumulative effect adjustment to the opening balance of retained earnings and does not impact the Company’s statement of operations. Refer to “Note 14: Commitments and Contingencies” for information about the Company’s lease commitments. Disclosure Update and Simplification In August of 2018, the Securities and Exchange Commission (“SEC”) published Release No. 33-10532, The Company has not adopted any other new accounting pronouncements that had a material impact on its consolidated financial statements. Recent Accounting Developments 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, 2016-13 2016-13 ASC 2016-13 available-for-sale 2016-13 2016-13 2016-13. Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13) In August of 2018, the FASB issued ASU 2018-13, 2018-13 2018-13 2018-13. 2018-13 2018-13 |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2019 | |
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Variable Interest Entities | Note 4: Variable Interest Entities Primarily through MBIA’s international and structured finance insurance segment, the Company provides credit protection to issuers of obligations that may involve issuer-sponsored special purpose entities (“SPEs”). An SPE may be considered a VIE to the extent the SPE’s total equity at risk is not sufficient to permit the SPE to finance its activities without additional subordinated financial support or its equity investors lack any one of the following characteristics: (i) the power to direct the activities of the SPE that most significantly impact the entity’s economic performance or (ii) the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the entity. A holder of a variable interest or interests in a VIE is required to assess whether it has a controlling financial interest, and thus is required to consolidate the entity as primary beneficiary. An assessment of a controlling financial interest identifies the primary beneficiary as the variable interest holder that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. An ongoing reassessment of controlling financial interest is required to be performed based on any substantive changes in facts and circumstances involving the VIE and its variable interests. The Company evaluates issuer-sponsored SPEs initially to determine if an entity is a VIE, and is required to reconsider its initial determination if certain events occur. For all entities determined to be VIEs, MBIA performs an ongoing reassessment to determine whether its guarantee to provide credit protection on obligations issued by VIEs provides the Company with a controlling financial interest. Based on its ongoing reassessment of controlling financial interest, the Company determines whether a VIE is required to be consolidated or deconsolidated. The Company makes its determination for consolidation based on a qualitative assessment of the purpose and design of a VIE, the terms and characteristics of variable interests of an entity, and the risks a VIE is designed to create and pass through to holders of variable interests. The Company generally provides credit protection on obligations issued by VIEs, and holds certain contractual rights according to the purpose and design of a VIE. The Company may have the ability to direct certain activities of a VIE depending on facts and circumstances, including the occurrence of certain contingent events, and these activities may be considered the activities 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 absorb losses of the entity that could potentially be significant to the VIE. At the time the Company determines it has the ability to direct the activities of a VIE that most significantly impact the economic performance of the entity based on facts and circumstances, MBIA is deemed to have a controlling financial interest in the VIE and is required to consolidate the entity as primary beneficiary. The Company performs an ongoing reassessment of controlling financial interest that may result in consolidation or deconsolidation of any VIE. Consolidated VIEs The carrying amounts of assets and liabilities of consolidated VIEs were $1.6 billion, as of September 30, 2019, and $1.7 billion, as of December 31, 2018. The carrying amounts of assets and liabilities are presented separately in “Assets of consolidated variable interest entities” and “Liabilities of consolidated variable interest entities” on the Company’s consolidated balance sheets. VIEs are consolidated or deconsolidated based on an ongoing reassessment of controlling financial interest, when events occur or circumstances arise, and whether the ability to exercise rights that constitute power to direct activities of any VIEs are present according to the design and characteristics of these entities. In the first quarter of 2019, the Company consolidated seven VIEs related to the Trusts. On the initial consolidation of the Trusts, the Company recorded a loss of $42 million, representing the difference between the fair value of the Company’s financial guarantee within the trusts and the carrying value of the insurance related balances on the COFINA policies. In the second quarter of 2019, two VIEs were deconsolidated. In the second quarter of 2018, the Company deconsolidated two VIEs related to the Zohar Bankruptcy Settlement. The Company recorded a loss of $93 million which represented the difference between the fair value of the VIE assets that were deconsolidated and the Company’s current estimate of salvage and subrogation recoveries from those VIEs under insurance accounting. These consolidation and deconsolidation losses are recorded within “Other net realized gains (losses)” under “Revenues of consolidated variable interest entities” on the Company’s consolidated statement of operations. Refer to “Note 1: Business Developments and Risks and Uncertainties” for further information about COFINA and the Zohar Bankruptcy Settlement. In the third quarter of 2018, three VIEs were deconsolidated. Holders of insured obligations of issuer-sponsored VIEs do not have recourse to the general assets of the Company. In the event of nonpayment of an insured obligation issued by a consolidated VIE, the Company is obligated to pay principal and interest, when due, on the respective insured obligation only. The Company’s exposure to consolidated VIEs is limited to the credit protection provided on insured obligations and any additional variable interests held by the Company. Nonconsolidated VIEs The following tables present the Company’s maximum exposure to loss for nonconsolidated VIEs and carrying values of the assets and liabilities for its interests in these VIEs in its insurance operations as of September 30, 2019 and December 31, 2018. The maximum exposure to loss as a result of MBIA’s variable interests in VIEs is represented by insurance in force. Insurance in force is the maximum future payments of principal and interest which may be required under commitments to make payments on insured obligations issued by nonconsolidated VIEs. The Company has aggregated nonconsolidated VIEs based on the underlying credit exposure of the insured obligation. The nature of the Company’s variable interests in nonconsolidated VIEs is related to financial guarantees and any investments in obligations issued by nonconsolidated VIEs. September 30, 2019 Carrying Value of Assets Carrying Value of Liabilities In millions Maximum Investments (1) Premiums (2) Insurance Loss (3) Unearned (4) Loss and Loss (5) Insurance: Global structured finance: Mortgage-backed residential $ 2,320 $ 15 $ 17 $ 99 $ 15 $ 447 Mortgage-backed commercial 32 - - - - - Consumer asset-backed 406 - 1 2 1 10 Corporate asset-backed 1,057 - 7 795 8 - Total global structured finance 3,815 15 25 896 24 457 Global public finance 2,076 - 8 - 10 - Total insurance $ 5,891 $ 15 $ 33 $ 896 $ 34 $ 457 (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, 2018 Carrying Value of Assets Carrying Value of Liabilities In millions Maximum Investments (1) Premiums (2) Insurance Loss (3) Unearned (4) Loss and Loss (5) Insurance: Global structured finance: Mortgage-backed residential $ 3,103 $ 17 $ 19 $ 128 $ 17 $ 345 Mortgage-backed commercial 52 - - - - - Consumer asset-backed 560 - 3 1 2 12 Corporate asset-backed 1,338 - 9 858 10 - Total global structured finance 5,053 17 31 987 29 357 Global public finance 2,231 - 9 - 12 - Total insurance $ 7,284 $ 17 $ 40 $ 987 $ 41 $ 357 (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 Expens
Loss and Loss Adjustment Expense Reserves | 9 Months Ended |
Sep. 30, 2019 | |
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Loss and Loss Adjustment Expense Reserves | Note 5: Loss and Loss Adjustment Expense Reserves U.S. Public Finance Insurance U.S. public finance insured transactions consist of municipal bonds, including tax-exempt Certain local governments remain under financial and budgetary stress and a few have filed for protection under Title 11 of the United States Code (the “Bankruptcy Code”), or have entered into state statutory proceedings established to assist municipalities in managing through periods of severe fiscal stress. In the case of Puerto Rico, certain credits that the Company insures have filed petitions for covered instrumentalities under Title III of PROMESA, which incorporates by reference provisions from the Bankruptcy Code. This could lead to an increase in defaults by such entities on the payment of their obligations and losses or impairments in greater amounts on the Company’s insured transactions. The filing for protection under the Bankruptcy Code or entering state statutory proceedings does not necessarily result in a default or indicate that an ultimate loss will occur. In February of 2019, the COFINA Plan of Adjustment was confirmed by the District Court and in September of 2019, National agreed to join the RSA with PREPA, other monoline insurers, a group of uninsured PREPA bondholders, Puerto Rico, and the Financial Oversight and Management Board for Puerto Rico. Refer to “Note : Business Development and Risk and Uncertainties”, for further information on the Company’s Puerto Rico exposures. International and Structured Finance Insurance The international and structured finance insurance segment’s case basis reserves and insurance loss recoveries recorded in accordance with GAAP do not include estimates for a policy insuring a credit derivative or on financial guarantee VIEs that are eliminated in consolidation. The policy insuring a credit derivative contract is accounted for as a derivative and is carried at fair value in the Company’s consolidated financial statements under GAAP. The fair value of an insured credit derivative contract is influenced by a variety of market and transaction-specific factors that may be unrelated to potential future claim payments under the Company’s insurance policies. Refer to “Note 8: Derivative Instruments” for a further discussion of 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 closed-end 10-K The Company monitors portfolio performance on a monthly basis against projected performance, reviewing delinquencies, roll rates, and prepayment rates (including voluntary and involuntary). However, loan performance remains difficult to predict and losses may exceed expectations. In the event of a material deviation in actual performance from projected performance, the Company would increase or decrease the case basis reserves accordingly. 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” 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 depends on the future loss trends, which include future delinquency trends, average time to charge-off/liquidate charged-off Second-lien Put-Back The Company has settled the majority of its put-back put-back put-back put-back put-back The uncertainty remaining with respect to the ultimate outcome of the litigation with Credit Suisse is contemplated in the probability-weighted scenario based-modeling the Company uses. The Credit Suisse recovery scenarios are based on certain probabilities of ultimate resolution of the dispute with Credit Suisse and are discounted using the current risk-free discount rates based on the weighted average life of the transaction. The Company continues to consider relevant facts and circumstances in developing its assumptions on expected cash inflows, probability of potential recoveries (including the timing and the put-back out-of-court CDO Reserves and Recoveries The Company also has loss and LAE reserves on certain transactions within its collateralized debt obligations (“CDO”) portfolio, primarily its multi-sector CDO asset class that was 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 includes, but are not limited to, RMBS-related collateral, multi-sector and corporate CDOs). 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 Zohar Recoveries MBIA Corp. is seeking to recover the payments it made (plus interest and expenses) with respect to Zohar I and Zohar II. MBIA Corp. anticipates that the primary source of the recoveries will come from the monetization of the Zohar Assets as anticipated in the Zohar Bankruptcy Settlement. Refer to “Note 1: Business Developments and Risks and Uncertainties” for additional information about the estimated Zohar recoveries. Notwithstanding the procedures agreed to in the Zohar Bankruptcy Settlement and confirmed by the Cou r Summary of Loss and LAE Reserves and Recoveries The Company’s loss and LAE reserves and recoveries before consolidated VIE eliminations, along with amounts that were eliminated as a result of consolidating VIEs, which are included in the Company’s consolidated balance sheets as of September 30, 2019 and December 31, 2018, are presented in the following table: As of September 30, 2019 As of December 31, 2018 In millions Balance Sheet Line Item Balance Sheet Line Item Insurance Loss and (2) Insurance Loss (2) U.S. Public Finance Insurance Before VIE eliminations $ 945 $ 438 $ 571 $ 551 VIE eliminations - (64 ) - - Total U.S. public finance insurance 945 374 571 551 International and Structured Finance Insurance: Before VIE eliminations (1) 1,389 797 1,461 668 VIE eliminations (1) (491 ) (312 ) (437 ) (254 ) Total international and structured finance insurance 898 485 1,024 414 Total $ 1,843 $ 859 $ 1,595 $ 965 (1) - Includes loan repurchase commitments of $478 million and $418 million as of September 30, 2019 and December 31, 2018, respectively. (2) - Amounts are net of expected recoveries. Beginning with the second quarter of 2019, the Company changed its presentation of its insurance loss recoverable and its loss and LAE reserves related to its insured first-lien RMBS exposure. Certain amounts have been reclassified in prior years’ financial statements to conform to the current presentation. Refer to “Note 2: Significant Accounting Policies” for additional information about this presentation change. Changes in Loss and LAE Reserves The following table presents changes in the Company’s loss and LAE reserves for the nine months ended September 30, 2019. 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 estimated recoveries on such claims, 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 September 30, 2019, the weighted average risk-free rate used to discount the Company’s loss reserves (claim liability) was 1.78%. LAE reserves are generally expected to be settled within a one-year In millions Changes in Loss and LAE Reserves for the Nine Months Ended September 30, 2019 Gross Loss 2018 (1) Loss Accretion Claim Changes in Changes in Changes in Changes in Other Gross Loss 2019 (1) $ 965 $ (425 ) $ 14 $ (59 ) $ 369 $ 24 $ (23 ) $ (6 ) $ 859 (1) - Amounts are net of expected recoveries of unpaid claims. The decrease in the Company’s loss reserves primarily relates to payments made on certain Puerto Rico credits and the consolidation of credits with loss reserves as VIEs. This was partially offset by an increase in reserves related to certain Puerto Rico credits as well as first-lien RMBS transactions. Changes in Insurance Loss Recoverable Insurance loss recoverable represents the Company’s estimate of recoveries on paid claims and LAE. The following table presents changes in the Company’s insurance loss recoverable for the nine months ended September 30, 2019. 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 and loss adjustment” expenses in the Company’s consolidated statements of operations. Changes in Insurance Loss Recoverable for the Nine Months Ended September 30, 2019 In millions Gross Collections Accretion Changes in Changes in (1) Other (2) Gross as of September 30, Insurance loss recoverable $ 1,595 $ (110 ) $ 27 $ 87 $ 216 $ 28 $ 1,843 (1) - Includes amounts related to paid claims and LAE that are expected to be recovered in the future. (2) - Primarily changes in amount and timing of collections. The increase in the Company’s insurance loss recoverable reflected in the preceding table was primarily due to amounts related to the anticipated recovery of claims paid on certain Puerto Rico credits and additional recoveries on insured RMBS transactions partially offset by collections on insured RMBS transactions and a decline in expected recoveries on CDOs. Loss and LAE Activity For the three and nine months ended September 30, 2019, loss and LAE activity primarily related to an increase in losses incurred Costs associated with remediating insured obligations assigned to the Company’s surveillance categories are recorded as LAE and are included in “Losses and loss adjustment” expenses on the Company’s consolidated statements of operations. For the three months ended September 30, 2019 and 2018, gross LAE related to remediating insured obligations was $ 16 a nd $6 million , respectively Surveillance Categories The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of September 30, 2019: Surveillance Categories $ in millions Caution Caution Caution Classified Total Number of policies 46 19 - 216 281 Number of issues (1) 13 5 - 97 115 Remaining weighted average contract period (in years) 7.2 7.2 - 8.0 7.7 Gross insured contractual payments outstanding: (2) Principal $ 1,625 $ 256 $ - $ 3,850 $ 5,731 Interest 2,173 117 - 1,669 3,959 Total $ 3,798 $ 373 $ - $ 5,519 $ 9,690 Gross Claim Liability (3) $ - $ - $ - $ 944 $ 944 Less: Gross Potential Recoveries (4) - - - 2,321 2,321 Discount, net (5) - - - (417 ) (417) Net claim liability (recoverable) $ - $ - $ - $ (960 ) $ (960) Unearned premium revenue $ 7 $ 3 $ - $ 39 $ 49 Reinsurance recoverable on paid and unpaid losses (6) $ 16 (1) - An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt. (2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA. (3) - The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position. (4) - Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position. (5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries. (6) - Included in “Other assets” on the Company’s consolidated balance sheets. The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of December 31, 2018: Surveillance Categories $ in millions Caution Caution Caution Classified Total Number of policies 50 18 - 233 301 Number of issues (1) 16 4 - 102 122 Remaining weighted average contract period (in years) 6.7 8.0 - 9.7 8.9 Gross insured contractual payments outstanding: (2) Principal $ 1,604 $ 249 $ - $ 5,353 $ 7,206 Interest 2,118 123 - 5,414 7,655 Total $ 3,722 $ 372 $ - $ 10,767 $ 14,861 Gross Claim Liability (3) $ - $ - $ - $ 1,085 $ 1,085 Less: Gross Potential Recoveries (4) - - - 2,363 2,363 Discount, net (5) - - - (670) (670) Net claim liability (recoverable) $ - $ - $ - $ (608) $ (608) Unearned premium revenue $ 5 $ 4 $ - $ 63 $ 72 Reinsurance recoverable on paid and unpaid losses (6) $ 21 (1) - An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt. (2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA. (3) - The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position. (4) - Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position. (5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries. (6) - Included in “Other assets” on the Company’s consolidated balance sheets. both |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
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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 value or broker quote for each instrument, which represents a non-binding Financial Liabilities (excluding 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 and debt issued by consolidated VIEs. 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 Company’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 an insured credit derivative. The Company’s insured credit derivative contract is a non-traded 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. The valuation committee reviews, among other things, key assumptions 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 reviews any significant impairment or improvements in fair values of the financial instruments from prior periods. The committee is comprised of senior finance and other team members with relevant experience in the financial instruments the committee is responsible for. The committee documents 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 are described below. Fixed-Maturity Securities Held as Available-For-Sale, Investments Carried at Fair Value, Investments Pledged as Collateral and Short-term Investments These investments include investments in U.S. Treasury and government agencies, state and municipal bonds, foreign governments, corporate obligations, mortgage-backed securities (“MBS”), asset-backed securities, money market securities, and perpetual debt and equity securities. 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 model based on observable and unobservable inputs. Inputs vary depending on the type of investment. Observable inputs include contractual cash flows, interest rate yield curves, 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-income 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 limitations. 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 the remaining investment balance as of the first, second, third and fourth consecutive quarters, respectively. As of December 31, 2018, the investment in money market securities was also measured at fair value by applying the net asset value per share practical expedient and was not required to be classified in the fair value hierarchy. These funds were backed by high quality, very liquid short-term instruments and the probability is remote that the funds would be sold for a value other than net asset value. Investments based on quoted market prices of identical investments in active markets are classified as Level 1 of the fair value hierarchy. Level 1 investments generally consist of U.S. Treasury and government agency and perpetual debt 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 Level 2 of the fair value hierarchy. Investments that contain significant inputs that are not observable are categorized as Level 3. Cash and Cash Equivalents The carrying amounts of cash and cash equivalents approximate fair value due to the short-term nature and credit worthiness of these instruments and are categorized in Level 1 of the fair value hierarchy. Loans Receivable at Fair Value Loans receivable at fair value are comprised of loans and other instruments held by consolidated VIEs consisting of residential mortgage loans are categorized in Level 3 of the fair value hierarchy. 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 related MBS. The fair values of the financial guarantees consider expected claim payments, net of recoveries, under MBIA Corp.’s policies. 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. These assets represent 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 cure, 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 and contractual interest Other Assets A VIE consolidated by the Company has entered into a derivative instrument consisting of a cross currency swap. The cross currency swap is entered into to manage the variability in cash flows resulting from fluctuations in foreign currency rates. The fair value of the VIE derivative is determined based on inputs from unobservable cash flows projection of the derivative, discounted using observable discount rates. As the significant inputs are unobservable, the derivative contract is categorized in Level 3 of the fair value hierarchy. Other assets also include receivables representing the right to receive reimbursement payments on claim payments expected to be made on certain insured VIE liabilities due to risk mitigating transactions with third parties executed to effectively defease, or, in-substance Medium-term Notes at Fair Value The Company has elected to measure certain MTNs at fair value on a recurring basis. The fair values of certain MTNs are based on quoted market prices provided by third-party sources, where available. When quoted market prices are not available, the Company applies a matrix pricing grid to determine fair value based on the quoted market prices received for similar instruments and considering the MTNs’ stated maturity and interest rate. Nonperformance risk is included in the quoted market prices and the matrix pricing grid. MTNs are categorized in Level 3 of the fair value hierarchy. Variable Interest Entity Notes The fair values of VIE notes are determined based on recently executed transaction prices or quoted prices where observable. When position-specific quoted prices are not observable, fair values are based on quoted prices of similar securities. Fair values based on quoted prices of similar securities may be adjusted for factors unique to the securities, including any credit enhancement. Observable 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 over-the-counter 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 participants would use. The Company uses an internally developed Direct Price Model to value its insured credit derivative that incorporates market prices or estimated prices for all collateral within the transaction, the present value of the market-implied potential losses, and nonperformance risk. The valuation of the insured credit derivative includes the impact of its credit standing. The insured credit derivative is categorized in Level 3 of the fair value hierarchy based on unobservable inputs that are significant to the fair value measurement in its entirety. Derivatives—Other The Company also has other derivative liabilities as a result of a commutation that occurred in 2014. 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. As the significant inputs are unobservable, the derivative contract is categorized in Level 3 of the fair value hierarchy. Other Liabilities Other payable relates to certain contingent consideration. The fair value of the liability is based on the cash flow methodologies using observable and unobservable inputs. Unobservable inputs include invested asset balances and asset management fees that are significant to the fair value estimate and the liability is categorized in Level 3 of the fair value hierarchy. Significant Unobservable Inputs The following tables provide quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018. In millions Fair Value as of Valuation Techniques Unobservable Input Range Assets of consolidated VIEs: Loans receivable at fair value $ 146 Market prices adjusted for Impact of financial guarantee (1) -12% - 83% (21%) Loan repurchase commitments 478 Discounted cash flow Recovery rates (2) Breach rates (2) Liabilities Variable interest entity notes 348 Market prices of VIE assets adjusted for financial guarantees provided Impact of financial guarantee 34% - 72% (59%) Credit CMBS 10 Direct Price Model Nonperformance risk 54% - Other derivative liabilities 30 Discounted cash flow Cash flows $ 0 49 (3) (1) - Negative percentage represents financial guarantee policies in a receivable position. (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. In millions Fair Value as of Valuation Techniques Unobservable Input Range Assets of consolidated Loans $ 172 Market prices adjusted for financial guarantees provided to Impact of financial guarantee (1) -17% - 75% (7%) Loan repurchase commitments 418 Discounted cash flow Recovery rates (2) Breach rates (2) Liabilities of consolidated VIEs: Variable interest entity notes 366 Market prices of VIE assets Impact of financial guarantee 0% - 63% (39%) Credit CMBS 33 Direct Price Model Nonperformance risk 54% - Other derivative liabilities 7 Discounted cash flow Cash flows $0 - 49 (3) (1) - Negative percentage represents financial guarantee policies in a receivable position. (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 used in the fair value measurement of the Company’s residential loans receivable at fair value of consolidated VIEs is the impact of the financial guarantee. The fair value of residential loans receivable is calculated by subtracting the value of the financial guarantee from the market value of VIE liabilities. The value of a financial guarantee is estimated by the Company as the present value of expected cash payments, net of recoveries, under the policy. If there is a lower expected cash flow on the underlying loans receivable of the VIE, the value of the financial guarantee provided by the Company under the insurance policy increases. This results in a lower fair value of the residential 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. Recovery 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 result 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 significantly 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 breach 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 the financial guarantee. The fair value of VIE notes is calculated by adding the value of the financial guarantee to the market value of VIE assets. The value of a financial guarantee is estimated by the Company as the present value of expected cash payments 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 VIE. The significant unobservable input used in the fair value measurement of MBIA Corp.’s commercial mortgage-backed securities (“CMBS”) credit derivative, which is valued using the Direct Price Model, is nonperformance risk. The nonperformance risk is an assumption 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 model, is the estimates of future cash flows discounted using market rates and CDS spreads. Any significant increase or decrease in future cash flows would result in an increase or decrease in the fair value of the derivative liability, respectively. Fair Value Measurements The following tables present the fair value of the Company’s assets (including short-term investments) and liabilities measured and reported at fair value on a recurring basis as of September 30, 2019 and December 31, 2018: Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Significant (Level 3) Counterparty Balance as of September 30, Assets: Fixed-maturity investments: U.S. Treasury and $ 775 $ 99 $ - $ - $ 874 State and municipal bonds - 230 - - 230 Foreign governments - 9 - - 9 Corporate obligations - 1,333 - - 1,333 Mortgage-backed securities: Residential mortgage-backed - 310 - - 310 Residential mortgage-backed non-agency - 21 - - 21 Commercial mortgage-backed - 26 - - 26 Asset-backed securities: Collateralized debt - 130 - - 130 Other asset-backed - 280 1 - 281 Total fixed-maturity 775 2,438 1 - 3,214 Money market securities 164 - - - 164 Perpetual debt and equity 28 37 - - 65 Fixed-income fund - - - - 52 (1) Cash and cash equivalents 76 - - - 76 Derivative assets: Non-insured Interest rate derivatives - 2 - - 2 Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Significant (Level 3) Counterparty Balance as of September 30, Assets of consolidated VIEs: Corporate obligations - 8 - - 8 Mortgage-backed securities: Residential mortgage-backed non-agency - 47 - - 47 Commercial mortgage-backed - 16 - - 16 Asset-backed securities: Collateralized debt obligations - 6 - - 6 Other asset-backed - 11 - - 11 Cash 5 - - - 5 Loans receivable at fair value: Residenti al loan s receivable - - 146 - 146 Loan repurchase commitments - - 478 - 478 Other assets: Currency derivative s - - 8 - 8 Other - - 17 - 17 Total assets $ 1,048 $ 2,565 $ 650 $ - $ 4,315 Liabilities: Medium-term notes $ - $ - $ 106 $ - $ 106 Derivative liabilities: Insured derivatives: Credit derivatives - 2 10 - 12 Non-insured Interest rate derivatives - 152 - - 152 Other - - 30 - 30 Other liabilities: Other payable - - 4 - 4 Liabilities of consolidated VIEs: Variable interest entity notes - 124 348 - 472 Total liabilities $ - $ 278 $ 498 $ - $ 776 (1) - 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 In millions Quoted Prices in (Level 1) Significant Significant (Level 3) Balance as of Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 1,028 $ 90 $ - $ 1,118 State and municipal bonds - 728 - 728 Foreign governments - 9 - 9 Corporate obligations - 1,410 - 1,410 Mortgage-backed securities: Residential mortgage-backed agency - 219 - 219 Residential mortgage-backed non-agency - 28 - 28 Commercial mortgage-backed - 47 7 54 Asset-backed securities: Collateralized debt obligations - 121 - 121 Other asset-backed - 181 3 184 Total fixed-maturity investments 1,028 2,833 10 3,871 Money market securities - - - 67 (1) Perpetual debt and equity securities 23 35 - 58 Fixed-income fund - - - 75 (1) Cash and cash equivalents 222 - - 222 Derivative assets: Non-insured Interest rate derivatives - 2 - 2 Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Active Markets for Identical Assets Significant Significant (Level 3) Balance as of Assets of consolidated VIEs: Corporate obligations - 9 5 14 Mortgage-backed securities: Residential mortgage-backed non-agency - 92 - 92 Commercial mortgage-backed - 34 - 34 Asset-backed securities: Collateralized debt obligations - 6 1 7 Other asset-backed - 10 - 10 Cash 58 - - 58 Loans receivable at fair value: Residential loans receivable - - 172 172 Loan repurchase commitments - - 418 418 Other assets: Currency derivatives - - 17 17 Other - - 14 14 Total assets $ 1,331 $ 3,021 $ 637 $ 5,131 Liabilities: Medium-term notes $ - $ - $ 102 $ 102 Derivative liabilities: Insured derivatives: Credit derivatives - 2 33 35 Non-insured Interest rate derivatives - 157 - 157 Other - - 7 7 Other liabilities: Other payable - - 5 5 Liabilities of consolidated VIEs: Variable interest entity notes - 114 366 480 Total liabilities $ - $ 273 $ 513 $ 786 (1) - The following tables present the fair values and carrying values of the Company’s assets and liabilities that are disclosed at fair value but not reported at fair value on the Company’s consolidated balance sheets as of September 30, 2019 and December 31, 2018: Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Other (Level 2) Significant (Level 3) Fair Value Carry Value Assets: Other investments $ - $ - $ - $ - $ - Assets of consolidated VIEs: Investments held-to-maturity - - 977 977 890 Total assets $ - $ - $ 977 $ 977 $ 890 Liabilities: Long-term debt $ - $ 1,092 $ - $ 1,092 $ 2,199 Medium-term notes - - 400 400 564 Investment agreements - - 414 414 310 Liabilities of consolidated VIEs: Variable interest entity notes - 290 977 1,267 1,160 Total liabilities $ - $ 1,382 $ 1,791 $ 3,173 $ 4,233 Financial Guarantees: Gross liability (recoverable) $ - $ - $ 1,236 $ 1,236 $ (485 ) Ceded - - 78 78 21 Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Other Significant Fair Value Carry Value Assets: Other investments $ - $ 1 $ - $ 1 $ 1 Assets of consolidated VIEs: Investments held-to-maturity - - 925 925 890 Total assets $ - $ 1 $ 925 $ 926 $ 891 Liabilities: Long-term debt $ - $ 1,101 $ - $ 1,101 $ 2,249 Medium-term notes - - 422 422 620 Investment agreements - - 388 388 311 Liabilities of consolidated VIEs: Variable interest entity notes - 378 925 1,303 1,264 Total liabilities $ - $ 1,479 $ 1,735 $ 3,214 $ 4,444 Financial Guarantees: Gross liability (recoverable) $ - $ - $ 993 $ 993 $ (43 ) Ceded - - 65 65 35 The following tables present information about changes in Level 3 assets (including short-term investments) and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2019 and 2018: Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2019 In millions Balance, Realized Unrealized Unrealized Foreign Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in for the Period for Assets as of Assets: Commercial mortgage-backed $ 4 $ - $ - $ - $ - $ - $ - $ (1 ) $ - $ - $ (3 ) $ - $ - Other asset-backed 1 - - - - - - - - - - 1 - Assets of consolidated VIEs: Loans receivable- residential 154 - (3 ) - - - - (5 ) - - - 146 (3 ) Loan 428 - 50 - - - - - - - - 478 50 Currency derivatives 11 - (4 ) - 1 - - - - - - 8 (4 ) Other 15 - 2 - - - - - - - - 17 2 Total assets $ 613 $ - $ 45 $ - $ 1 $ - $ - $ (6 ) $ - $ - $ (3 ) $ 650 $ 45 In millions Balance, Realized Unrealized Unrealized Foreign Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in the Period for Liabilities still held as of Liabilities: Medium-term notes $ 110 $ - $ 3 $ (5) $ (2 ) $ - $ - $ - $ - $ - $ - $ 106 $ 1 Credit derivatives 18 10 (9 ) - - - - (9 ) - - - 10 (9 ) Other derivatives 16 - 14 - - - - - - - - 30 14 Other payable 3 - 1 - - - - - - - - 4 1 Liabilities of consolidated VIEs: VIE notes 342 14 (9 ) 10 (2 ) - 3 (10 ) - - - 348 (11 ) Total liabilities $ 489 $ 24 $ - $ 5 $ (4 ) $ - $ 3 $ (19 ) $ - $ - $ - $ 498 $ (4 ) (1) - Transferred in and out at the end of the period. Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months In millions Balance, Realized Unrealized Unrealized Foreign Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in for the Period for Assets as of Assets: Commercial mortgage-backed $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 7 $ - $ 7 $ - Other asset-backed 6 - - - - - - - - - (2 ) 4 - Assets of consolidated VIEs: Corporate obligations 5 - - - - - - - - - - 5 - Collateralized debt obligations 1 - - - - - - - - - - 1 - Loans receivable-residential 683 - 20 - - - - (24 ) (251 ) - - 428 21 Loan repurchase 415 - - - - - - - - - - 415 - Currency derivatives 14 - 2 - (2 ) - - - - - - 14 - Other 14 - 1 - - - - - - - - 15 1 Total assets $ 1,138 $ - $ 23 $ - $ (2 ) $ - $ - $ (24 ) $ (251 ) $ 7 $ (2 ) $ 889 $ 22 In millions Balance, Realized Unrealized Unrealized Foreign Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in the Period for Liabilities still held as of Liabilities: Medium-term notes $ 149 $ (5) $ (1 ) $ 11 $ (1 ) $ - $ - $ (30 ) $ - $ - $ - $ 123 $ (2 ) Credit derivatives 31 6 (4 ) - - - - (6 ) - - - 27 (4 ) Other derivatives 4 - 3 - - - - - - - - 7 3 Other payable 5 - - - - - - - - - - 5 - Liabilities of consolidated VIE notes 389 10 3 (11 ) 5 - 1 (15 ) - - - 382 8 Total liabilities $ 578 $ 11 $ 1 $ - $ 4 $ - $ 1 $ (51 ) $ - $ - $ - $ 544 $ 5 (1) - Transferred in and out at the end of the period. For the three months ended September 30, 2018, sales included the impact of the deconsolidation of VIEs. Refer to “Note 4: Variable Interest Entities” for additional information about the deconsolidation of VIEs. For the three months ended September 30, 2019, there were no transfers into Level 3 and out of Level 2. CMBS comprised the instruments transferred out of Level 3 where inputs, which are significant to their valuation, became observable during the quarter. These inputs included spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. For the three months ended September 30, 2018, transfers into Level 3 and out of Level 2 were related to CMBS, where inputs, which are significant to their valuation, became unobservable during the quarter. Other asset-backed comprised the instruments transferred out of Level 3 where inputs, which are significant to their valuation, became observable during the quarter. These inputs included spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. There were no transfers into or out of Level 1 for the three months ended September 30, 2019 and 2018. All Level 1, 2 and 3 designations are made at the end of each accounting period. The following tables present information about changes in Level 3 assets (including short-term investments) and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2019 and 2018: Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended In millions Balance, Realized Unrealized Unrealized Foreign Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in for the Period for Assets as of Assets: Commercial mortgage-backed $ 7 $ - $ - $ - $ - $ - $ - $ (4 ) $ - $ - $ (3 ) $ - $ - Other asset-backed 3 (1 ) - - - - - (1 ) - - - 1 - Assets of consolidated VIEs: Corporate obligations 5 - - - - - - (2 ) - - (3 ) - - Collateralized debt obligations 1 - - - - - - - (1 ) - - - - Loans receivable-residential 172 - 40 - - - - (18 ) (48 ) - - 146 35 Loan repurchase 418 - 60 - - - - - - - - 478 60 Currency derivatives 17 - (9 ) - - - - - - - - 8 (9 ) Other 14 - 3 - - - - - - - - 17 3 Total assets $ 637 $ (1 ) $ 94 $ - $ - $ - $ - $ (25 ) $ (49 ) $ - $ (6 ) $ 650 $ 89 In millions Balance, Realized Unrealized Unrealized Foreign Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in the Period for Liabilities still held as of Liabilities: Medium-term $ 102 $ - $ 8 $ 1 $ (2 ) $ - $ - $ (3 ) $ - $ - $ - $ 106 $ 1 Credit 33 11 (23 ) - - - - (11 ) - - - 10 (23 ) Other 7 - 23 - - - - - - - - 30 23 Other payable 5 - 2 - - - - (3 ) - - - 4 2 Liabilities of VIE notes 366 21 33 3 (1 ) - 7 (21 ) (60 ) - - 348 32 Total liabilities $ 513 $ 32 $ 43 $ 4 $ (3 ) $ - $ 7 $ (38 ) $ (60 ) $ - $ - $ 498 $ 35 (1) - Transferred in and out at the end of the period. Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2018 In millions Balance, Realized Unrealized Unrealized Foreign Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in Assets: Corporate obligations $ 2 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (2 ) $ - $ - Commercial mortgage- 7 - - - - - - - - 7 (7 ) 7 - Other asset- 5 - - - - 5 - (2 ) (2 ) - (2 ) 4 - Assets of consolidated Corporate obligations - - - - - - - (1 ) - 6 - 5 - Commercial mortgage- 6 - - - - - - - - - (6) - - Collateralized 1 - - - - - - - - - - 1 - Loans receivable-residential 759 - 26 - - - - (106 ) (251 ) - - 428 23 Loans receivable-corporate 920 - 11 - - - - (6 ) (925 ) - - - - Loan repurchase 407 - 8 - - - - - - - - 415 8 Currency derivatives 19 - (3 ) - (2 ) - - - - - - 14 (5 ) Other 14 - 1 - - - - - - - - 15 1 Total assets $ 2,140 $ - $ 43 $ - $ (2 ) $ 5 $ - $ (115 ) $ (1,178 ) $ 13 $ (17) $ 889 $ 27 In millions Balance, Realized Unrealized Unrealized Foreign Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in Liabilities: Medium-term notes $ 115 $ (5) $ (1) $ 51 $ (7) $ - $ - $ (30) $ - $ - $ - $ 123 $ (8) Credit derivatives 63 49 (36) - - - - (49) - - - 27 (36) Other derivatives 4 - 3 - - - - - - - - 7 3 Other payable 7 - 2 - - - - (4) - - - 5 2 Liabilities of consolidated VIEs: VIE notes 406 22 (12) (10) 3 - 7 (34) - - - 382 (9) Total liabilities $ 595 $ 66 $ (44) $ 41 $ (4) $ - $ 7 $ (117) $ - $ - $ - $ 544 $ (48) (1) - Transferred in and out at the end of the period. For the nine months ended September 30, 2019 and 2018, sales include the impact of the deconsolidation of VIEs. Refer to “Note 4: Variable Interest Entities” for additional information about the deconsolidation of VIEs. For the nine months ended September 30, 2019, there were no transfers into Level 3 and out of Level 2. CMBS and corporate obligations comprised the majority of the instruments transferred out of Level 3 where inputs, which are significant to their valuation, became observable during the period. These inputs included spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. There were no transfers into or out of Level 1. For the nine months ended September 30, 2018, transfers into Level 3 and out of Level 2 were principally related to CMBS and corporate obligations, where inputs, which are significant to their valuation, became unobservable during the period. CMBS, corporate obligations and other asset-backed comprised the majority of the instruments transferred out of Level 3 where inputs, which are significant to their valuation, became observable during the period. These inputs included spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. There were no transfers into or out of Level 1. All Level 1, 2 and 3 designations are made at the end of each accounting period. Gains and losses (realized and unrealized) included in earnings related to Level 3 assets and liabilities for the three months ended September 30, 2019 and 2018 are reported on the Company’s consolidated statements of operations as follows: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 In millions Total Gains (Losses) Earnings Change in Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held as of September 30, 2019 Total Gains Earnings Change in Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held as of September 30, 2018 Revenues: Unrealized gains (losses) on insured derivatives $ 9 $ 9 $ 4 $ 4 Realized gains (losses) and other settlements on (10 ) - (6 ) - Net gains |
Investments
Investments | 9 Months Ended |
Sep. 30, 2019 | |
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 held-to-maturity The following tables present the amortized cost, fair value, corresponding gross unrealized gains and losses and OTTI for AFS and HTM investments in the Company’s consolidated investment portfolio as of September 30, 2019 and December 31, 2018: September 30, 2019 In millions Amortized Gross Gross Fair Other-Than- Impairments (1) AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 807 $ 59 $ (1 ) $ 865 $ - State and municipal bonds 205 24 - 229 - Foreign governments 8 - - 8 - Corporate obligations 1,239 58 (34 ) 1,263 (33 ) Mortgage-backed securities: Residential mortgage-backed agency 297 4 (1 ) 300 - Residential mortgage-backed non-agency 25 1 (5 ) 21 - Commercial mortgage-backed 23 1 - 24 - Asset-backed securities: Collateralized debt obligations 129 - (2 ) 127 - Other asset-backed 275 1 - 276 - Total AFS investments $ 3,008 $ 148 $ (43 ) $ 3,113 $ (33 ) HTM Investments Assets of consolidated VIEs: Corporate obligations $ 890 $ 87 $ - $ 977 $ - Total HTM investments $ 890 $ 87 $ - $ 977 $ - (1) - Represents unrealized gains or losses on OTTI securities recognized in AOCI, which includes the non-credit December 31, 2018 In millions Amortized Gross Gross Fair Other-Than- Impairments (1) AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 1,093 $ 26 $ (10 ) $ 1,109 $ - State and municipal bonds 641 97 (11 ) 727 42 Foreign governments 9 - - 9 - Corporate obligations 1,473 6 (131 ) 1,348 (68 ) Mortgage-backed securities: Residential mortgage-backed agency 218 1 (5 ) 214 - Residential mortgage-backed non-agency 30 1 (4 ) 27 - Commercial mortgage-backed 53 - (2 ) 51 - Asset-backed securities: Collateralized debt obligations 122 - (3 ) 119 - Other asset-backed 178 - (1 ) 177 - Total AFS investments $ 3,817 $ 131 $ (167 ) $ 3,781 $ (26 ) HTM Investments Assets of consolidated VIEs: Corporate obligations $ 890 $ 35 $ - $ 925 $ - Total HTM investments $ 890 $ 35 $ - $ 925 $ - (1) - Represents unrealized gains or losses on OTTI securities recognized in AOCI, which includes the non-credit The following table presents the distribution by contractual maturity of AFS and HTM fixed-maturity securities at amortized cost and fair value as of September 30, 2019. Contractual maturity may differ from expected maturity as borrowers may have the right to call or prepay obligations. AFS Securities HTM Securities Consolidated VIEs In millions Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 598 $ 599 $ - $ - Due after one year through five years 496 503 - - Due after five years through ten years 436 423 - - Due after ten years 729 840 890 977 Mortgage-backed and asset-backed 749 748 - - Total fixed-maturity investments $ 3,008 $ 3,113 $ 890 $ 977 Deposited and Pledged Securities The fair value of securities on deposit with various regulatory authorities as of September 30, 2019 and December 31, 2018 was $11 million. These deposits are required to comply with state insurance laws. 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. Investment agreement obligations require the Company to pledge securities as collateral. Securities pledged in connection with investment agreements may not be repledged by the investment agreement counterparty. As of September 30, 2019 and December 31, 2018, the fair value of securities pledged as collateral for these investment agreements approximated $317 million and $314 million, respectively. The Company’s collateral as of September 30, 2019 consisted principally of U.S. Treasury and government agency and corporate obligations, and was primarily held with major U.S. banks. Additionally, the Company pledged cash as collateral under investment agreements in the amount of $6 million as of September 30, 2019. Refer to “Note 8: Derivative Instruments” for information about securities posted to derivative counterparties. Impaired Investments The following tables present the gross unrealized losses related to AFS and HTM investments as of September 30, 2019 and December 31, 2018: September 30, 2019 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 $ 102 $ - $ 84 $ (1 ) $ 186 $ (1 ) State and municipal bonds 5 - 26 - 31 - Foreign governments 5 - - - 5 - Corporate obligations 182 (1 ) 55 (33 ) 237 (34 ) Mortgage-backed securities: Residential mortgage-backed agency 35 (1 ) 32 - 67 (1 ) Residential mortgage-backed non-agency - - 11 (5 ) 11 (5 ) Commercial mortgage-backed 6 - - - 6 - Asset-backed securities: Collateralized debt obligations 43 - 68 (2 ) 111 (2 ) Other asset-backed 16 - 9 - 25 - Total AFS investments $ 394 $ (2 ) $ 285 $ (41 ) $ 679 $ (43 ) December 31, 2018 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 $ 231 $ (1 ) $ 278 $ (9 ) $ 509 $ (10) State and municipal bonds 60 (1 ) 135 (10 ) 195 (11) Foreign governments 5 - 2 - 7 - Corporate obligations 900 (41 ) 335 (90 ) 1,235 (131) Mortgage-backed securities: Residential mortgage-backed agency 29 (1 ) 118 (4 ) 147 (5) Residential mortgage-backed non-agency 2 - 13 (4 ) 15 (4) Commercial mortgage-backed 24 - 21 (2 ) 45 (2) Asset-backed securities: Collateralized debt obligations 98 (3 ) 7 - 105 (3) Other asset-backed 127 - 35 (1 ) 162 (1) Total AFS investments $ 1,476 $ (47 ) $ 944 $ (120 ) $ 2,420 $ (167) Gross unrealized losses on AFS investments decreased as of September 30, 2019 compared with December 31, 2018 primarily due to lower interest rates and tightening credit spreads. With the weighting applied on the fair value of each security relative to the total fair value, the weighted average contractual maturity of securities in an unrealized loss position as of September 30, 2019 and December 31, 2018 was 7 and 11 years, respectively. As of September 30, 2019 and December 31, 2018, there were 68 and 182 securities, respectively, that were in an unrealized loss position for a continuous twelve-month period or longer, of which, fair values of 15 and 64 securities, respectively, were below book value by more than 5%. The following table presents the distribution of securities in an unrealized loss position for a continuous twelve-month period or longer where fair value was below book value by more than 5% as of September 30, 2019: AFS Securities Percentage of Fair Value Below Book Value Number of Book Value Fair Value > 5% to 15% 9 $ 19 $ 19 > 15% to 25% 1 1 - > 25% to 50% 2 14 10 > 50% 3 63 30 Total 15 $ 97 $ 59 The Company concluded that it does not have the intent to sell securities in an unrealized loss position and it is more likely than not, that it would not have to sell these securities before recovery of their cost basis. In making this conclusion, the Company examined the cash flow projections for its investment portfolios, the potential sources and uses of cash in its businesses, and the cash resources available to its business other than sales of securities. It also considered the existence of any risk management or other plans as of September 30, 2019 that would require the sale of impaired securities. Impaired securities that 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 determine whether a credit loss exists. The portion of certain OTTI losses on fixed-maturity securities that does not represent credit losses is recognized in AOCI. Refer to “Note 8: Investments” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K nine months ended September 30, 2019 and the In millions Three Months Ended September 30, Nine Months Ended September 30, Credit Losses Recognized in Earnings Related to Other-Than- Temporary Impairments 2019 2018 2019 2018 Beginning balance $ 74 $ 34 $ 37 $ 32 Additions for credit loss impairments recognized in the current period on securities previously impaired - 1 37 3 Ending balance $ 74 $ 35 $ 74 $ 35 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 September 30, 2019 that were in an unrealized loss position and insured by a financial guarantor, along with the amount of insurance loss reserves corresponding to the par amount owned by the Company: In millions Fair Value Unrealized Loss Insurance Loss Reserve (2) Mortgage-backed: MBIA (1) $ 11 $ (5) $ 19 (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 Gross realized gains and losses 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 and nine months ended September 30, 2019 and 2018 are as follows: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Proceeds from sales $ 508 $ 583 $ 1,875 $ 1,647 Gross realized gains $ 79 $ 1 $ 100 $ 4 Gross realized losses $ - $ (2 ) $ (3 ) $ (15 ) Equity Investments Unrealized gains and losses recognized on equity investments held as of the end of each period for the three and nine months ended September 30, 2019 and 2018 are as follows: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Net gains (losses) recognized during the period on equity securities $ 2 $ 3 $ 9 $ 3 Less: Net gains (losses) recognized during the period on equity securities sold during the period - - 1 1 Unrealized gains (losses) recognized during the period on equity securities still held at the reporting date $ 2 $ 3 $ 8 $ 2 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2019 | |
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 instruments primarily consisting of interest rate swaps to manage the risks associated with fluctuations in interest rates affecting the value of certain assets. During the third quarter of 2019, the Company terminated a portion of its outstanding interest rate swaps. The termination amount paid in cash reflected the fair values of the swaps at the termination date and all collateral held by the counterparty to the interest rate swaps was returned to the Company. The termination of these swaps was executed to reduce future exposure to interest rate movements. International and Structured Finance Insurance The Company has entered into a derivative instrument to provide financial guarantee insurance to a structured finance transaction that does not qualify for the financial guarantee scope exception and, therefore, is accounted for as a derivative. The insured CDS contract, referencing CMBS, is intended to be held for 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 that occurred in 2014. Changes in the fair value of the Company’s non-insured Variable Interest Entities A VIE consolidated by the Company has entered into a cross currency swap, which was entered into to manage the variability in cash flows resulting from fluctuations in foreign currency rates. Credit Derivatives Sold The following tables present information about credit derivatives sold by the Company’s insurance operations that were outstanding as of September 30, 2019 and December 31, 2018. Credit ratings represent the lower of underlying ratings assigned to the collateral by Moody’s, S&P or MBIA. $ in millions As of September 30, 2019 Notional Value Credit Derivatives Sold Weighted AAA AA A BBB Below Total Fair Insured credit default swaps 0.3 $ - $ - $ - $ - $ 34 $ 34 $ (10 ) Insured swaps 14.8 Years - 66 1,295 461 - 1,822 (2 ) Total notional $ - $ 66 $ 1,295 $ 461 $ 34 $ 1,856 Total fair value $ - $ - $ (1 ) $ (1 ) $ (10 ) $ (12 ) $ in millions As of December 31, 2018 Notional Value Credit Derivatives Sold Weighted AAA AA A BBB Below Total Fair Insured credit default swaps 1.0 Years $ - $ - $ - $ - $ 70 $ 70 $ (33 ) Insured swaps 15.7 Years - 74 1,463 896 - 2,433 (2 ) Total notional $ - $ 74 $ 1,463 $ 896 $ 70 $ 2,503 Total fair value $ - $ - $ (1 ) $ (1 ) $ (33 ) $ (35 ) Internal credit ratings assigned by MBIA on the underlying collateral are derived by the Company’s surveillance group. In assigning an internal rating, current status reports from issuers and trustees, as well as publicly available transaction-specific information, are reviewed. Also, where appropriate, cash flow analyses and collateral valuations are considered. The maximum potential amount of future payments (undiscounted) on insured CDS and insured swaps is estimated as the notional value of such contracts. MBIA may hold recourse provisions with third parties in derivative instruments through subrogation rights, whereby if MBIA makes a claim payment, it may be entitled to any rights of the insured counterparty, including the right to any assets held as collateral. Counterparty Credit Risk The Company manages counterparty credit risk on an individual counterparty basis through master netting agreements covering derivative instruments in the corporate segment. These agreements allow the Company to contractually net amounts due from a counterparty with those amounts due to such counterparty when certain triggering events occur. The Company only executes swaps under master netting agreements, which typically contain mutual credit downgrade provisions that generally provide the ability to require assignment or termination in the event either MBIA or the counterparty is downgraded below a specified credit rating. Under these agreements, the Company may receive or provide cash, U.S. Treasury or other highly rated securities to secure counterparties’ exposure to the Company or its exposure to counterparties, respectively. Such collateral is available to the holder to pay for replacing the counterparty in the event that the counterparty defaults. As of September 30, 2019 and no As of September 30, 2019 and December 31, 2018, the Company had securities with a fair value of $210 million and $205 million, respectively, posted to derivative counterparties and these amounts are included within “Fixed-maturity securities held as available-for-sale, As of September 30, 2019 and December 31, 2018, the fair value on one a3 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 master netting agreements. Counterparty netting of derivative assets and liabilities offsets balances in “Interest rate swaps”, when applicable. The following table presents the total fair value of the Company’s derivative assets and liabilities by instrument and balance sheet location, before counterparty netting, as of September 30, 2019: In millions Derivative Assets (1) Derivative Liabilities (1) Derivative Instruments Notional Balance Sheet Location Fair Value Balance Sheet Location Fair Value Not designated as hedging instruments: Insured credit default swaps $ 34 Other assets $ - Derivative liabilities $ (10) Insured swaps 1,822 Other assets - Derivative liabilities (2) Interest rate swaps 440 Other assets 2 Derivative liabilities (152) Interest rate swaps-embedded 227 Medium-term - Medium-term (17) Currency swaps-VIE 56 Other assets-VIE 8 Derivative liabilities-VIE - All other 49 Other assets - Derivative liabilities (30) Total non-designated $ 2,628 $ 10 $ (211) (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 derivative assets and liabilities by instrument and balance sheet location, before counterparty netting, as of December 31, 2018: In millions Derivative Assets (1) Derivative Liabilities (1) Derivative Instruments Notional Balance Sheet Location Fair Value Balance Sheet Location Fair Value Not designated as Insured credit default swaps $ 70 Other assets $ - Derivative liabilities $ (33 ) Insured swaps 2,433 Other assets - Derivative liabilities (2 ) Interest rate swaps 712 Other assets 2 Derivative liabilities (157 ) Interest rate swaps-embedded 293 Medium-term - Medium-term (13 ) Currency swaps-VIE 62 Other assets-VIE 16 Derivative liabilities-VIE - All other 49 Other assets - Derivative liabilities (7 ) Total non-designated $ 3,619 $ 18 $ (212 ) (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 effect of derivative instruments on the consolidated statements of operations for the three months ended September 30, 2019 and 2018: In millions Derivatives Not Designated as Three Months Ended September 30, Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2019 2018 Insured credit default swaps Unrealized gains (losses) on insured derivatives $ 9 $ 4 Insured credit default swaps Realized gains (losses) and other settlements on insured derivatives (10) (5) Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange (30) 7 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE (3) - All other Net gains (losses) on financial instruments at fair value and foreign exchange (14) (4) Total $ (48) $ 2 The following table presents the effect of derivative instruments on the consolidated statements of operations for the nine months ended September 30, 2019 and 2018: In millions Derivatives Not Designated as Nine Months Ended September 30, Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2019 2018 Insured credit default swaps Unrealized gains (losses) on insured derivatives $ 23 $ 36 Insured credit default swaps Realized gains (losses) and other settlements on insured derivatives (11) (49) Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange (85) 33 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE (8) (5) All other Net gains (losses) on financial instruments at fair value and foreign exchange (23) (4) Total $ (104) $ 11 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 9: Debt The Company 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 10-K . Long-Term Debt During the nine months ended September 30, 2019, the Company redeemed $150 million principal amount of its 6.400 Other Borrowing Arrangements MBIA Corp. Financing Facility In connection with the Refinanced Facility, original notes issued by MZ Funding on January 10, 2017 (the “Original MZ Funding Notes”) were redeemed or amended, as applicable, and the Senior Lenders purchased new senior notes issued by MZ Funding (the “Insured Senior Notes”) with an aggregate principal amount of $278 million. In addition, MBIA Inc. received amended subordinated notes issued by MZ Funding (the “Insured Subordinated Notes” and together with the Insured Senior Notes, the “New MZ Funding Notes”) with an aggregate principal amount of $54 million (with the New MZ Funding Notes replacing the Original MZ Funding Notes). The New MZ Funding Notes mature on January 20, 2022 The Company recorded the refinancing of the MZ Funding debt in accordance with ASC Topic 470, “Debt”, which resulted in a portion of the refinancing being accounted for as a debt modification and a portion of the refinancing being accounted for as a debt extinguishment. In connection with the Refinanced Facility, the Company paid debt issuance costs of $6 million, of which $3 million was expensed and the remainder is being amortized over the term of the Refinanced Facility. The Company also recorded debt extinguishment costs of $1 million to write off the previously capitalized debt issuance costs. These costs are included in “Other net realized gains (losses)” under “Expenses of consolidated variable interest entities” on the Company’s consolidated statement of operations. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Income Taxes | Note 10: Income Taxes The Company’s in c Three Months Ended September 30, Nine Months Ended September 30, In millions 2019 2018 2019 2018 Income (loss) before income taxes $ 89 $ (45) $ (137) $ (287) Provision (benefit) for income taxes $ 18 $ - $ (21) $ 2 Effective tax rate 20.2% 0.0% 15.3% -0.7% For the nine months ended September 30, 2019, the Company’ effective tax rate applied to its loss before income taxes was lower than the U.S. statutory tax rate due to the full valuation allowance on the changes in its net deferred tax asset and the application of intraperiod tax accounting, partially offset by state income tax expense. There is an offsetting expense recorded to other comprehensive income for the change in the valuation allowance related to the application of intraperiod tax accounting. For the nine months ended September 30, 2018, the Company’s effective tax rate applied to its loss before income taxes was lower than the U.S. statutory rate due to the full valuation allowance on the changes in its net deferred tax asset. Deferred Tax Asset, Net of Valuation Allowance The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of its existing deferred tax assets. A significant piece of objective negative evidence evaluated was the Company having a three-year cumulative loss. Such objective evidence limits the ability to consider other subjective evidence, such as the Company’s projections of pre-tax Under the Act, net operating losses (“NOLs”) of property and casualty insurance companies retain their current two-year 20-year non-insurance Accounting for Uncertainty in Income Taxes The Company’s policy is to record and disclose any change in unrecognized tax benefit (“UTB”) and related interest and/or penalties to income tax in the consolidated statements of operations. The Company includes interest as a component of income tax expense. As of September 30, 2019 and December 31, no Federal income tax returns through 2011 have been examined or surveyed. As of September 30, 2019, the Company’s NOL is approximately $2.5 billion. The NOL will expire between tax years 2032 through 2039. As of September 30, 2019, the Company has a foreign tax credit carryforward of $62 million, which will expire between tax years 2019 through 2029. As of September 30, 2019, the Company has an alternative minimum tax (“AMT”) credit carryforward of $26 million, which does not expire. As a result of tax reform, AMT credits are now fully refundable no later than 2022. The AMT credit has been reclassed out of the deferred tax asset and into other assets as the AMT credits are now a receivable. Section 382 of the Internal Revenue Code On May 2, 2018, MBIA Inc.’s shareholders ratified an amendment to the Company’s By-Laws, |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Business Segments | Note 11: Business Segments As defined by segment reporting, an operating segment is a component of a company (i) that engages in business activities from which it earns revenue and incurs expenses, (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker to assess the performance of the segment and to make decisions about the allocation of resources to the segment and, (iii) for which discrete financial information is available. The Company manages its businesses across three The following sections provide a description of each of the Company’s reportable operating segments. U.S. Public Finance Insurance The Company’s U.S. public finance insurance portfolio is managed through National. The financial guarantees issued by National provide unconditional and irrevocable guarantees of the payment of the principal of, and interest or other amounts owing on, U.S. public finance insured obligations when due. The obligations are not subject to acceleration, except that National may have the right, at its discretion, to accelerate insured obligations upon default or otherwise. National’s guarantees insure municipal bonds, including tax-exempt Corporate The Company’s corporate segment consists of general corporate activities, including providing support services to MBIA Inc.’s subsidiaries as well as asset and capital management. Support services are provided by the Company’s service company, MBIA Services, and include, among others, management, legal, accounting, treasury, information technology, and insurance portfolio surveillance, on a fee-for-service International and Structured Finance Insurance The Company’s international and structured finance insurance segment is principally conducted through MBIA Corp. The financial guarantees issued by MBIA Corp. generally provide unconditional and irrevocable guarantees of the payment of principal of, and interest or other amounts owing on, non-U.S. • MBIA Inc.; • GFL; • IMC; • MZ Funding LLC; and • LaCrosse Financial Products, LLC, a wholly-owned affiliate, to which MBIA Insurance Corporation has 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. insures non-U.S. sub-sovereign Segments Results The following tables provide the Company’s segment results for the three months ended September 30, 2019 and 2018: Three Months Ended September 30, 2019 In millions U.S. Public Corporate International Eliminations Consolidated Revenues (1) $ 30 $ 6 $ 11 $ - $ 47 Net gains (losses) on financial instruments at fair value and foreign exchange 78 (20) (14) - 44 Net gains (losses) on extinguishment of debt - (1) - - (1) Other net realized gains (losses) - (1) 1 - - Revenues of consolidated VIEs 32 - 50 - 82 Inter-segment revenues (2) 7 15 6 (28) - Total revenues 147 (1) 54 (28) 172 Losses and loss adjustment (90) - 77 - (13) Operating 4 15 7 - 26 Interest - 17 33 - 50 Expenses of consolidated VIEs - - 20 - 20 Inter-segment expenses (2) 14 6 8 (28) - Total expenses (72) 38 145 (28) 83 Income (loss) before income taxes $ 219 $ (39) $ (91) $ - $ 89 Identifiable assets $ 4,271 $ 939 $ 4,678 $ (2,282) (3) $ 7,606 (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 primarily of intercompany reinsurance balances and repurchase agreements. Three Months Ended September 30, 2018 In millions U.S. Public Corporate International Eliminations Consolidated Revenues (1) $ 45 $ 7 $ 58 $ - $ 110 Net change in fair value of insured derivatives - - (1) - (1) Net gains (losses) on financial instruments at fair value and foreign exchange 1 17 (13) - 5 Net investment losses related to other-than-temporary impairments (1) - - - (1) Net gains (losses) on extinguishment of debt - 3 - - 3 Other net realized gains (losses) - - 1 - 1 Revenues of consolidated VIEs - - (12) - (12) Inter-segment revenues (2) 7 11 6 (24) - Total revenues 52 38 39 (24) 105 Losses and loss adjustment 48 - (2) - 46 Operating 5 13 9 - 27 Interest - 20 32 - 52 Expenses of consolidated VIEs - - 25 - 25 Inter-segment expenses (2) 10 5 9 (24) - Total expenses 63 38 73 (24) 150 Income (loss) before income taxes $ (11) $ - $ (34) $ - $ (45) Identifiable assets $ 4,453 $ 1,062 $ 5,058 $ (2,180) (3) $ 8,393 (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 primarily of intercompany reinsurance balances and repurchase agreements. The following tables provide the Company’s segment results for the nine months ended September 30, 2019 and 2018: Nine Months Ended September 30, 2019 In millions U.S. Public Corporate International Eliminations Consolidated Revenues (1) $ 106 $ 21 $ 28 $ - $ 155 Net change in fair value of insured derivatives - - 13 - 13 Net gains (losses) on financial instruments at fair value and foreign exchange 135 (71) (24) - 40 Net investment losses related to other-than-temporary impairments (37) - - - (37) Net gains (losses) on extinguishment of debt - (1) - - (1) Other net realized gains (losses) 1 (2) 3 - 2 Revenues of consolidated VIEs 38 - 41 1 80 Inter-segment revenues (2) 22 48 15 (85) - Total revenues 265 (5) 76 (84) 252 Losses and loss adjustment (34) - 123 - 89 Operating 8 53 16 - 77 Interest - 56 98 - 154 Expenses of consolidated VIEs - - 69 - 69 Inter-segment expenses (2) 41 17 26 (84) - Total expenses 15 126 332 (84) 389 Income (loss) before income taxes $ 250 $ (131) $ (256) $ - $ (137) Identifiable assets $ 4,271 $ 939 $ 4,678 $ (2,282) (3) $ 7,606 (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 primarily of intercompany reinsurance balances and repurchase agreements. Nine Months Ended September 30, 2018 In millions U.S. Public Corporate International Eliminations Consolidated Revenues (1) $ 139 $ 20 $ 98 $ - $ 257 Net change in fair value of insured derivatives - - (13) - (13) Net gains (losses) on financial instruments at fair value and foreign exchange (13) 48 (17) - 18 Net investment losses related to other-than-temporary impairments (3) - - - (3) Net gains (losses) on extinguishment of debt - 3 - - 3 Other net realized gains (losses) - (2) 2 - - Revenues of consolidated VIEs - - (72) - (72) Inter-segment revenues (2) 20 36 18 (74) - Total revenues 143 105 16 (74) 190 Losses and loss adjustment 184 - (7) - 177 Operating 14 39 21 - 74 Interest - 60 95 - 155 Expenses of consolidated VIEs - - 71 - 71 Inter-segment expenses (2) 34 14 27 (75) - Total expenses 232 113 207 (75) 477 Income (loss) before income taxes $ (89) $ (8) $ (191) $ 1 $ (287) Identifiable assets $ 4,453 $ 1,062 $ 5,058 $ (2,180) $ 8,393 (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 primarily of intercompany reinsurance balances and repurchase agreements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Earnings Per Share | Note 12: Earnings Per Share Earnings per share is calculated using the two-class non-employee 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 period. Diluted earnings per share reflects the dilutive effect of all warrants and unvested restricted stock outstanding during the period that could potentially result in the issuance of common stock. The dilution from warrants and unvested restricted stock are calculated by applying the two-class In the second quarter of 2018, the holder of all of the outstanding MBIA Inc. warrants exercised its right to purchase shares of MBIA Inc. common stock. As of September 30, 2019, there were no warrants outstanding. The following table presents the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2019 and 2018: In millions except per share amounts 2019 2018 2019 2018 Basic earnings per share: Net income (loss) $ 71 $ (45 ) $ (116 ) $ (289 ) Less: undistributed earnings allocated to participating securities 4 - - - Net income (loss) available to common shareholders 67 (45 ) (116 ) (289 ) Basic weighted average shares (1) 78.7 89.5 82.8 89.1 Net income (loss) per basic common share $ 0.86 $ (0.50 ) $ (1.40 ) $ (3.24 ) Diluted earnings per share: Net income (loss) $ 71 $ (45 ) $ (116 ) $ (289 ) Less: undistributed earnings allocated to participating securities 4 - - - Net income (loss) available to common shareholders 67 (45) (116 ) (289 ) Diluted weighted average shares 78.7 89.5 82.8 89.1 Net income (loss) per diluted common share $ 0.86 $ (0.50 ) $ (1.40 ) $ (3.24 ) Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect 4.5 1.4 4.5 1.4 (1) - Includes 1.1 million and 0.9 , 0.8 nine |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Accumulated Other Comprehensive Income | Note 13: Accumulated Other Comprehensive Income The following table presents the changes in the components of AOCI for the nine months ended September 30, 2019: In millions Unrealized Instrument-Specific Total Balance, December 31, 2018 $ (39) $ (7) $ (110) $ (156) Other comprehensive income (loss) 133 1 (27) 107 Amounts reclassified from AOCI (20) - 26 6 Net period other comprehensive 113 1 (1) 113 Balance, September 30, 2019 $ 74 $ (6) $ (111) $ (43 The following table presents the details of the reclassifications from AOCI for the three and nine months ended September 30, 2019 and 2018: In millions Amounts Reclassified from AOCI Three Months Ended September 30, Nine Months Ended September 30, Details about AOCI Components 201 9 2018 201 9 2018 Affected Line Item o n the Consolidated S O Unrealized gains (losses) Realized gains (losses) $ (7) $ 2 $ 16 $ 4 Net gains (losses) on financial OTTI 42 (2) 5 (3) Net investment losses related to Amortization on (1) - (1) (1) Net investment income Total unrealized gains (losses) on AFS securities 34 - 20 - Instrument-specific credit risk of liabilities: Settlement of liabilities (3) - (26) - Net gains (losses) on financial Total reclassifications for $ 31 $ - $ (6) $ - Net income (loss) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
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Commitments and Contingencies | Note 14: Commitments and Contingencies The following commitments and contingencies provide an update of those discussed in “Note 20: Commitments and Contingencies” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K 10-K. Litigation MBIA Insurance Corp. v. Credit Suisse Securities (USA) LLC, et al. On September 13, 2018, the Appellate Division of the Supreme Court, First Judicial Department issued a ruling on the parties’ cross-appeals from the court’s March 31, 2017 decision and order on the parties’ summary judgment motions. The ruling affirmed the trial court’s decision, except reversed as to the trial court’s determination to interpret as a matter of law, prior to trial, certain of the representations and warranties that form the predicate for certain of MBIA Corp.’s breach of contract claims. Trial began on July 22, 2019 and concluded on August 2, 2019. Post-trial briefs were exchanged on October 17, 2019, and replies are due November 21, 2019, following which the case will be under submission to the Court. Lynn Tilton and Patriarch Partners XV, LLC v. MBIA Inc. and MBIA Insurance Corp.; No. 7:19-cv-09733-WHP (S.D.N.Y.) On November 2, 2015, Lynn Tilton and Patriarch Partners XV, LLC filed a complaint in New York State Supreme Court, Westchester . Patriarch Partners, LLC et al. v. MBIA Ins. Corp. et al., Case No. 17-cv-00307 On November 22, 2017, in a previously pending litigation commenced by the Zohar Funds against Lynn Tilton and her various Patriarch Partners and Octaluna affiliates (collectively “Tilton”), Tilton filed twenty-two Tilton et al. v. MBIA Inc. et al., Adversary Case No. 19-50390 On October 1, 2019, Lynn Tilton and her various Patriarch Partners and Octaluna affiliated entities commenced an adversary proceeding in the Zohar Funds Bankruptcy Cases by filing a complaint against MBIA Inc., MBIA Corp. and other Zohar Fund creditors seeking the equitable subordination of those creditors’ claims with respect to the Zohar Funds. The plaintiffs claim they are entitled to subordination of the defendants’ claims in the Zohar Funds based on similar allegedly inequitable and unfair conduct described in plaintiffs’ allegations in the Westchester Action and SDNY Action. The plaintiffs further allege that MBIA Inc. and MBIA Corp. engaged in inequitable conduct following the commencement of the Zohar Funds Bankruptcy Cases. Assured Guaranty Corp. et al. v. Commonwealth of Puerto Rico et al. 3567-LTS . On May 21, 2017, the Oversight Board filed a petition under Title III of PROMESA to adjust the debts for the Puerto Rico Highways & Transportation Authority (“PRHTA”). On June 3, 2017, National, together with Assured Guaranty Corp. and Assured Guaranty Municipal Corp. and Financial Guaranty Insurance Company, filed an adversary complaint in the case commenced by the Title III filing, alleging that the Commonwealth and PRHTA are unlawfully diverting pledged special revenues from the payment of certain PRHTA bonds to the Commonwealth’s General Fund. Motions to dismiss were filed on June 28, 2017, and oral arguments were heard on November 21, 2017. On January 30, 2018, the court granted the Commonwealth defendants’ motion to dismiss the PRHTA-related adversary complaint. On February 9, 2018, National, together with Assured, Assured Guaranty Municipal Corp. and Financial Guaranty Insurance Company filed their notice of appeal of the motions to dismiss to the United States Court of Appeals for the First Circuit. Appellants filed their opening brief on May 9, 2018, and Appellees filed their opposition brief on July 9, 2018. Appellants’ reply brief was filed on August 8, 2018. Oral argument was held on November 5, 2018. On March 26, 2019, the First Circuit held that consensual prepetition liens on special revenues will remain in place after the filing of the bankruptcy petition, but agreed with the district court that the provision “does not mandate the turnover of special revenues or require continuity of payments of the PRHTA Bonds during the pendency of the Title III proceeding.” Appellants have submitted a motion seeking review of this opinion by the full First Circuit panel, and will determine within the 90 days of this decision whether to file a writ of certiorari for hearing before the United States Supreme Court. On July 31, 2019, the First Circuit denied the request for full panel review, which permit s On September 20, 2019, Appellants filed a petition for a writ of certiorari requesting Supreme Court review of the First Circuit’s ruling. Motion of Assured Guaranty Corp., Assured Guaranty Municipal Corp., and National Public Finance Guarantee Corporation for Adequate Protection or, in the Alternative, for Relief from the Automatic Stay 3567-LTS On August 23, 2019, National and Assured (“Movants”) filed a motion in the Title III case for PRHTA for adequate protection or, in the alternative, relief from the automatic stay. The motion argues that the revenues securing the bonds insured by Movants are being improperly diverted away from PRHTA, despite such revenues being the exclusive property of PRHTA and its bondholders. The proceeding is currently stayed until December 1 The Financial Oversight and Management Board for Puerto Rico, as Representative of the Puerto Rico Highways and Transportation Authority, et al. v. National Public Finance Guarantee Corporation, et al 19-00363 On May 20, 2019, the Oversight Board and the Official Committee of Unsecured Creditors of all Title III Debtors filed an adversary complaint against National and numerous other defendants, challenging the extent and enforceability of certain security interests in PRHTA revenues. The proceeding is currently stayed until December 1 The Financial Oversight and Management Board for Puerto Rico, as representative of The Puerto Rico Electric Power Authority, et al. 4780-LTS On July 18, 2017, National, together with other PREPA bondholders, asked the court overseeing PREPA’s Title III bankruptcy proceeding to lift the automatic bankruptcy stay, and permit bondholders to seek appointment of a receiver to oversee PREPA. On September 14, 2017, the court held that PROMESA barred relief from the stay because the appointment of a receiver would (i) interfere with PREPA’s property and governmental powers, and (ii) violate the court’s exclusive jurisdiction over PREPA’s property. The court also held that a comparison of the harms facing both parties pointed towards denying relief from the stay. The bondholders appealed the decision to the First Circuit. As of April 23, 2018, the appeal was fully briefed. The First Circuit heard oral argument on June 5, 2018​​​​​​​. On August 8, 2018, the United State Court of Appeals for the First Circuit issued an order reversing Judge Swain’s decision on jurisdictional grounds and remanding the motion. On October 3, 2018, National, together with Assured Guaranty Corp., Assured Guaranty Municipal Corp., and Syncora Guarantee Inc. (collectively, “Movants”) filed an updated motion for relief from the automatic stay to allow Movants to exercise their statutory right to have a receiver appointed at PREPA (the “Receiver Motion”). Discovery in connection with the Receiver Motion is ongoing. The Oversight Board filed a Motion to Dismiss the Receiver Motion (together with the Receiver Motion, the “Motions”). The Title III Court approved a number of requests to extend the deadline for the Oversight Board to respond to the Receiver Motion and for Movants to respond to the Motion to Dismiss the Receiver Motion. The Motions have been stayed until the Court rules on the motion currently scheduled to be heard on January 14, 2020 seeking to approve the Definitive Restructuring Support Agreement (as amended, the “RSA”). Definitive Restructuring Support Agreement for PREPA On May 3, 2019, PREPA, the Oversight Board, the Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”), the Ad Hoc Group of PREPA bondholders (the “Ad Hoc Group”), and Assured Guaranty Corp. and Assured Guaranty Municipal Corp. (“Assured”) (together, the “RSA Parties”) previously entered into the RSA. On September 9, 2019 National, and Syncora Guarantee Inc. (“Syncora”), and the RSA Parties agreed on an amendment to the RSA pursuant to which National and Syncora joined the RSA. Among other things, the RSA contemplates a transaction pursuant to which, upon the effective date of a plan of adjustment, PREPA’s legacy bonds will be exchanged for new securitization bonds to be issued in two tranches (the “Securitization Bonds”). In addition, beginning on the last day of the month in which the order approving the RSA is entered , holders of bonds that are subject to the RSA will receive monthly settlement payments funded by a settlement charge to be included on customer bills (the “Settlement Payments”) until the effective date of a plan of adjustment for PREPA. The Settlement Payments are subject to increase if a plan of adjustment is not confirmed before March 31, 2021. The RSA provides that supporting parties will receive an administrative claim equal to interest accrued on certain of the securitization bonds, less the amount of any Settlement Payments made on account of such bonds, which administrative claim shall survive termination of the RSA. Additionally, pursuant to the RSA, supporting creditors will also receive certain fees and expense reimbursements. The RSA contemplates the filing of a plan of adjustment for PREPA by March 31, 2020. Pursuant to the RSA, the Oversight Board filed a 9019 motion with the Title III court in May 2019 seeking approval of the RSA (the “Settlement Motion”) . The RSA requires, upon entry of the order approving the Settlement Motion (the “9019 Order”), that Movants will withdraw the Receiver Motion , and will su ch wi thdrawal Approximately 90 As contemplated by the RSA, on July 1, 2019, the Oversight Board and AAFAF also filed an adversary complaint against the Trustee for the PREPA Bonds, challenging the validity of the liens arising under the Trust Agreement that secure insured obligations of National. The adversary proceeding is stayed until the earlier of (a) 60 days after the Court denies the Sett leme nt Cortland Capital Market Services LLC, et al. v. The Financial Oversight and Management Board for Puerto Rico et, al., 19-00396 On July 9, 2019, the “Fuel Line Lenders,” parties who extended approximately $700 million in working capital to PREPA beginning in 2012 to fund fuel purchases, filed an adversary complaint against the Oversight Board, PREPA, AAFAF, and the Trustee for the PREPA Bonds, alleging that they are entitled to be paid in full before National and other bondholders have any lien on or recourse to PREPA’s assets, including pursuant to the RSA. On September 17, 2019, National, Assured, Syncora, and the Ad Hoc Group moved to intervene in the proceeding. On September 30, 2019, the Fuel Line Lenders filed an amended complaint which added National, Assured, Syncora, and the Ad Hoc Group as defendants. Sistema de Retiro de los Empleados de la Autoridad de Energa Elctrica (SREAEE) v. The Financial Oversight and Management Board for Puerto Rico et, al., 19-00405 On August 6, 2019, the Sistema de Retiro de los Empleados de la Autoridad de EnergĂa ElĂ©ctrica filed an adversary complaint against the Oversight Board, PREPA, AAFAF, and the Trustee for the PREPA Bonds, which asserts an entitlement under the Trust Agreement to payment priority ahead of PREPA’s bondholders. On September 17, 2019, National, Assured, Syncora, and the Ad Hoc Group moved to intervene in the proceeding. Responses to the intervention motion were filed October 7, 2019, and replies were filed October 18, 2019. The Third Amended Title III Plan of Adjustment for COFINA On June 5, 2018, the Commonwealth and COFINA Agents agreed in principle to settle the Commonwealth-COFINA Dispute regarding the pledge of sales and use taxes and related issues under the Agents’ mediation authority. The Title III Court held a hearing to approve the settlement agreement, as amended by the parties, and confirm a plan of adjustment in the COFINA case incorporating the settlement on January 16 and 17, 2019 (the “Confirmation Hearing”). On February 4, 2019, the District Court for the District of Puerto Rico entered the order confirming the Third Amended Title III Plan of Adjustment for COFINA. The Plan effective date was February 12, 2019. The Financial Oversight and Management Board for Puerto Rico, as Representative of the Commonwealth of Puerto Rico, et al. v. the Puerto Rico Public Buildings Authority 18-00149 On December 21, 2018, the Oversight Board and the Official Committee of Unsecured Creditors of all Debtors other than COFINA filed an adversary complaint against the Puerto Rico Public Buildings Authority (“PBA”), seeking a declaration that leases purportedly entered into by PBA are in fact disguised financing transactions and that PBA therefore has no right under PROMESA or the Bankruptcy Code to receive post-petition payments from the Title III debtors or administrative claims against the debtors. On January 28, 2019, National filed a motion to intervene in the proceeding. On March 12, 2019, the Court granted National’s intervention motion. On March 19, 2019, National filed an answer to the complaint. The proceeding is currently stayed until December 31, 2019, pending the outcome of mandatory mediation ordered by the Title III Court. The Financial Oversight and Management Board for Puerto Rico, as Representative of the Commonwealth of Puerto Rico, et al. v. National Public Finance Guarantee Corporation, et al 19-00291 On May 2, 2019, the Oversight Board and the Official Committee of Unsecured Creditors of all Title III Debtors filed an adversary complaint against National and numerous other defendants, challenging the existence, extent, and enforceability of asserted consensual and statutory liens on general obligation bonds issued by the Commonwealth. The proceeding is currently stayed until December 31, 2019, pending the outcome of mandatory mediation ordered by the Title III Court. National Public Finance Guarantee Corporation et al. v. UBS Financial Services, Inc. et al., 19-422-LTS On August 8, 2019, National and MBIA Corp. filed suit in the Court of First Instance in San Juan, Puerto Rico against UBS Financial Services, Inc., UBS Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Merrill Lynch, Fenner & Smith Inc., RBC Capital Markets LLC, and Santander Securities LLC, bringing two claims under Puerto Rico law: doctrina de actos propios (the doctrine of one’s own acts) and unilateral declaration of will. These claims concern the insurance by National and MBIA of bonds issued by the Commonwealth of Puerto Rico and its instrumentalities that were underwritten by these defendants. National and MBIA allege that, when the defendants solicited bond insurance, they represented through their acts that they would investigate certain information they provided to National and MBIA and that they had a reasonable basis to believe that information was true and complete. National and MBIA further allege, however, that the defendants, contrary to their representations, did not perform such investigations and that key information was untrue or incomplete. National and MBIA relied on defendants’ acts to their detriment. National and MBIA seek damages to be proven at trial. On September 9, 2019, Defendants removed National’s claims to federal court in the District of Puerto Rico. National filed its motion to remand the case on October 9, 2019. Defendants’ opposition is due no later than November 8, 2019 and National expects to file its reply no later than November 29, 2019. For those aforementioned actions in which it is a defendant, the Company is defending against those 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 has 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 is a plaintiff. There are no 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 and San Francisco, California, as well as office equipment. 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. This lease agreement has been classified as an operating lease, and operating rent expense is recognized on a straight-line basis. The following table provides information about the Company’s leases as of September 30, 2019: $ in millions As of September 30, 2019 Balance Sheet Location Right-of-use $ Other assets Lease liability $ 22 Other liabilities Weighted average remaining lease term (years) 8.2 Discount rate used for operating leases 7.5 % Total future minimum lease payments $ 33 |
Subsequent Events
Subsequent Events | 9 Months Ended |
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Subsequent Events | Note 15: Subsequent Even t Refer to “Note 14: Commitments and Contingencies” for information about legal proceedings that occurred after September 30, 2019. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
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Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q S-X 10-K The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As additional information becomes available or actual amounts become determinable, the recorded estimates are revised and reflected in operating results. The results of operations for the three and nine months ended September 30, 2019 may not be indicative of the results that may be expected for the year ending December 31, 2019. The December 31, 2018 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP for annual periods. |
Loss and Loss Adjustment Expenses | Loss and Loss Adjustment Expenses The Company recognizes loss reserves on a contract-by-contract The Company recognizes potential recoveries on paid claims based on probability-weighted net cash inflows present valued at applicable risk-free rates as of the measurement date. Such amounts are reported within “Insurance loss recoverable” on the Company’s consolidated balance sheets. To the extent the Company had recorded potential recoveries in its loss reserves previous to a claim payment, such recoveries are reclassified to “Insurance loss recoverable” upon payment of the related claim and remeasured each reporting period. Beginning with the second quarter of 2019, the Company changed its presentation of its insurance loss recoverable and its loss and loss adjustment expense (“LAE”) reserves related to its insured first-lien RMBS exposure. The Company’s first-lien RMBS insurance loss recoverable previously represented discounted and probability-weighted estimated recoveries, net of claims expected to be paid, when the result was a net receivable, and its first-lien RMBS loss and LAE reserves previously represented discounted and probability-weighted estimated claims, net of expected recoveries to be collected, when the result was a net payable. The Company now reports its first-lien RMBS insurance loss recoverable gross of expected claim payments and all expected claim payments are reported within loss and LAE reserves on the Company’s balance sheet. This treatment is consistent with the Company’s balance sheet presentation for insurance loss recoverable and loss and LAE reserves of its other major insured exposures. Certain amounts have been reclassified in prior years’ financial statements to conform to the current presentation. This includes a reclassification of $31 million resulting in an increase to insurance loss recoverable and a corresponding increase to loss and LAE reserves on the Company’s consolidated balance sheet as of December 31, 2018. This reclassification had no impact on total revenues, total expenses, shareholders’ equity, operating cash flows, investing cash flows, or financing cash flows for all periods presented. In addition, prior period amounts included in the Company’s disclosures have been updated to reflect the new presentation. The Company’s loss reserve, insurance loss recoverable, and accruals for LAE incurred are disclosed in “Note 5: Loss and Loss Adjustment Expense Reserves.” |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Leases (Topic 842) (ASU 2016-02) In February of 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, 2016-02 2016-02 right-of-use right-of-use right-of-use The Company adopted ASU 2016-02 Accounting Stand ards Codifi cation (“ASC”) Topic 840, Leases, and do not include any retrospective adjustments to comparative periods to reflect the adoption of ASU 2016-02. The Company recorded a right-of-use asset and lease liability of $ million. The gross up of the assets and liabilities does not have a cumulative effect adjustment to the opening balance of retained earnings and does not impact the Company’s statement of operations. Refer to “Note 14: Commitments and Contingencies” for information about the Company’s lease commitments. Disclosure Update and Simplification In August of 2018, the Securities and Exchange Commission (“SEC”) published Release No. 33-10532, The Company has not adopted any other new accounting pronouncements that had a material impact on its consolidated financial statements. |
New Accounting Pronouncements Not Yet Adopted | Recent Accounting Developments 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, 2016-13 2016-13 ASC 2016-13 available-for-sale 2016-13 2016-13 2016-13. Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13) In August of 2018, the FASB issued ASU 2018-13, 2018-13 2018-13 2018-13. 2018-13 2018-13 |
Variable Interest Entities (Tab
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Summary Of Nonconsolidated VIEs Assets And Liabilities | September 30, 2019 Carrying Value of Assets Carrying Value of Liabilities In millions Maximum Investments (1) Premiums (2) Insurance Loss (3) Unearned (4) Loss and Loss (5) Insurance: Global structured finance: Mortgage-backed residential $ 2,320 $ 15 $ 17 $ 99 $ 15 $ 447 Mortgage-backed commercial 32 - - - - - Consumer asset-backed 406 - 1 2 1 10 Corporate asset-backed 1,057 - 7 795 8 - Total global structured finance 3,815 15 25 896 24 457 Global public finance 2,076 - 8 - 10 - Total insurance $ 5,891 $ 15 $ 33 $ 896 $ 34 $ 457 (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, 2018 Carrying Value of Assets Carrying Value of Liabilities In millions Maximum Investments (1) Premiums (2) Insurance Loss (3) Unearned (4) Loss and Loss (5) Insurance: Global structured finance: Mortgage-backed residential $ 3,103 $ 17 $ 19 $ 128 $ 17 $ 345 Mortgage-backed commercial 52 - - - - - Consumer asset-backed 560 - 3 1 2 12 Corporate asset-backed 1,338 - 9 858 10 - Total global structured finance 5,053 17 31 987 29 357 Global public finance 2,231 - 9 - 12 - Total insurance $ 7,284 $ 17 $ 40 $ 987 $ 41 $ 357 (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 Expe_2
Loss and Loss Adjustment Expense Reserves (Tables) | 9 Months Ended |
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Present Value Of The Probability-Weighted Future Claim Payments And Recoveries | As of September 30, 2019 As of December 31, 2018 In millions Balance Sheet Line Item Balance Sheet Line Item Insurance Loss and (2) Insurance Loss (2) U.S. Public Finance Insurance Before VIE eliminations $ 945 $ 438 $ 571 $ 551 VIE eliminations - (64 ) - - Total U.S. public finance insurance 945 374 571 551 International and Structured Finance Insurance: Before VIE eliminations (1) 1,389 797 1,461 668 VIE eliminations (1) (491 ) (312 ) (437 ) (254 ) Total international and structured finance insurance 898 485 1,024 414 Total $ 1,843 $ 859 $ 1,595 $ 965 (1) - Includes loan repurchase commitments of $478 million and $418 million as of September 30, 2019 and December 31, 2018, respectively. (2) - Amounts are net of expected recoveries. |
Schedule Of Loss And Loss Adjustment Expenses Reserves | In millions Changes in Loss and LAE Reserves for the Nine Months Ended September 30, 2019 Gross Loss 2018 (1) Loss Accretion Claim Changes in Changes in Changes in Changes in Other Gross Loss 2019 (1) $ 965 $ (425 ) $ 14 $ (59 ) $ 369 $ 24 $ (23 ) $ (6 ) $ 859 (1) - Amounts are net of expected recoveries of unpaid claims. |
Schedule Of Insurance Loss Recoverable | Changes in Insurance Loss Recoverable for the Nine Months Ended September 30, 2019 In millions Gross Collections Accretion Changes in Changes in (1) Other (2) Gross as of September 30, Insurance loss recoverable $ 1,595 $ (110 ) $ 27 $ 87 $ 216 $ 28 $ 1,843 (1) - Includes amounts related to paid claims and LAE that are expected to be recovered in the future. (2) - Primarily changes in amount and timing of collections. |
Schedule Of Financial Guarantees And Related Claim Liability | Surveillance Categories $ in millions Caution Caution Caution Classified Total Number of policies 46 19 - 216 281 Number of issues (1) 13 5 - 97 115 Remaining weighted average contract period (in years) 7.2 7.2 - 8.0 7.7 Gross insured contractual payments outstanding: (2) Principal $ 1,625 $ 256 $ - $ 3,850 $ 5,731 Interest 2,173 117 - 1,669 3,959 Total $ 3,798 $ 373 $ - $ 5,519 $ 9,690 Gross Claim Liability (3) $ - $ - $ - $ 944 $ 944 Less: Gross Potential Recoveries (4) - - - 2,321 2,321 Discount, net (5) - - - (417 ) (417) Net claim liability (recoverable) $ - $ - $ - $ (960 ) $ (960) Unearned premium revenue $ 7 $ 3 $ - $ 39 $ 49 Reinsurance recoverable on paid and unpaid losses (6) $ 16 (1) - An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt. (2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA. (3) - The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position. (4) - Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position. (5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries. (6) - Included in “Other assets” on the Company’s consolidated balance sheets. The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of December 31, 2018: Surveillance Categories $ in millions Caution Caution Caution Classified Total Number of policies 50 18 - 233 301 Number of issues (1) 16 4 - 102 122 Remaining weighted average contract period (in years) 6.7 8.0 - 9.7 8.9 Gross insured contractual payments outstanding: (2) Principal $ 1,604 $ 249 $ - $ 5,353 $ 7,206 Interest 2,118 123 - 5,414 7,655 Total $ 3,722 $ 372 $ - $ 10,767 $ 14,861 Gross Claim Liability (3) $ - $ - $ - $ 1,085 $ 1,085 Less: Gross Potential Recoveries (4) - - - 2,363 2,363 Discount, net (5) - - - (670) (670) Net claim liability (recoverable) $ - $ - $ - $ (608) $ (608) Unearned premium revenue $ 5 $ 4 $ - $ 63 $ 72 Reinsurance recoverable on paid and unpaid losses (6) $ 21 (1) - An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt. (2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA. (3) - The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position. (4) - Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position. (5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries. (6) - Included in “Other assets” on the Company’s consolidated balance sheets. |
Fair Value of Financial Instr_2
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Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis | In millions Fair Value as of Valuation Techniques Unobservable Input Range Assets of consolidated VIEs: Loans receivable at fair value $ 146 Market prices adjusted for Impact of financial guarantee (1) -12% - 83% (21%) Loan repurchase commitments 478 Discounted cash flow Recovery rates (2) Breach rates (2) Liabilities Variable interest entity notes 348 Market prices of VIE assets adjusted for financial guarantees provided Impact of financial guarantee 34% - 72% (59%) Credit CMBS 10 Direct Price Model Nonperformance risk 54% - Other derivative liabilities 30 Discounted cash flow Cash flows $ 0 49 (3) (1) - Negative percentage represents financial guarantee policies in a receivable position. (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. In millions Fair Value as of Valuation Techniques Unobservable Input Range Assets of consolidated Loans $ 172 Market prices adjusted for financial guarantees provided to Impact of financial guarantee (1) -17% - 75% (7%) Loan repurchase commitments 418 Discounted cash flow Recovery rates (2) Breach rates (2) Liabilities of consolidated VIEs: Variable interest entity notes 366 Market prices of VIE assets Impact of financial guarantee 0% - 63% (39%) Credit CMBS 33 Direct Price Model Nonperformance risk 54% - Other derivative liabilities 7 Discounted cash flow Cash flows $0 - 49 (3) (1) - Negative percentage represents financial guarantee policies in a receivable position. (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 In millions Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Significant (Level 3) Counterparty Balance as of September 30, Assets: Fixed-maturity investments: U.S. Treasury and $ 775 $ 99 $ - $ - $ 874 State and municipal bonds - 230 - - 230 Foreign governments - 9 - - 9 Corporate obligations - 1,333 - - 1,333 Mortgage-backed securities: Residential mortgage-backed - 310 - - 310 Residential mortgage-backed non-agency - 21 - - 21 Commercial mortgage-backed - 26 - - 26 Asset-backed securities: Collateralized debt - 130 - - 130 Other asset-backed - 280 1 - 281 Total fixed-maturity 775 2,438 1 - 3,214 Money market securities 164 - - - 164 Perpetual debt and equity 28 37 - - 65 Fixed-income fund - - - - 52 (1) Cash and cash equivalents 76 - - - 76 Derivative assets: Non-insured Interest rate derivatives - 2 - - 2 Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Significant (Level 3) Counterparty Balance as of September 30, Assets of consolidated VIEs: Corporate obligations - 8 - - 8 Mortgage-backed securities: Residential mortgage-backed non-agency - 47 - - 47 Commercial mortgage-backed - 16 - - 16 Asset-backed securities: Collateralized debt obligations - 6 - - 6 Other asset-backed - 11 - - 11 Cash 5 - - - 5 Loans receivable at fair value: Residenti al loan s receivable - - 146 - 146 Loan repurchase commitments - - 478 - 478 Other assets: Currency derivative s - - 8 - 8 Other - - 17 - 17 Total assets $ 1,048 $ 2,565 $ 650 $ - $ 4,315 Liabilities: Medium-term notes $ - $ - $ 106 $ - $ 106 Derivative liabilities: Insured derivatives: Credit derivatives - 2 10 - 12 Non-insured Interest rate derivatives - 152 - - 152 Other - - 30 - 30 Other liabilities: Other payable - - 4 - 4 Liabilities of consolidated VIEs: Variable interest entity notes - 124 348 - 472 Total liabilities $ - $ 278 $ 498 $ - $ 776 (1) - 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 In millions Quoted Prices in (Level 1) Significant Significant (Level 3) Balance as of Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 1,028 $ 90 $ - $ 1,118 State and municipal bonds - 728 - 728 Foreign governments - 9 - 9 Corporate obligations - 1,410 - 1,410 Mortgage-backed securities: Residential mortgage-backed agency - 219 - 219 Residential mortgage-backed non-agency - 28 - 28 Commercial mortgage-backed - 47 7 54 Asset-backed securities: Collateralized debt obligations - 121 - 121 Other asset-backed - 181 3 184 Total fixed-maturity investments 1,028 2,833 10 3,871 Money market securities - - - 67 (1) Perpetual debt and equity securities 23 35 - 58 Fixed-income fund - - - 75 (1) Cash and cash equivalents 222 - - 222 Derivative assets: Non-insured Interest rate derivatives - 2 - 2 Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Active Markets for Identical Assets Significant Significant (Level 3) Balance as of Assets of consolidated VIEs: Corporate obligations - 9 5 14 Mortgage-backed securities: Residential mortgage-backed non-agency - 92 - 92 Commercial mortgage-backed - 34 - 34 Asset-backed securities: Collateralized debt obligations - 6 1 7 Other asset-backed - 10 - 10 Cash 58 - - 58 Loans receivable at fair value: Residential loans receivable - - 172 172 Loan repurchase commitments - - 418 418 Other assets: Currency derivatives - - 17 17 Other - - 14 14 Total assets $ 1,331 $ 3,021 $ 637 $ 5,131 Liabilities: Medium-term notes $ - $ - $ 102 $ 102 Derivative liabilities: Insured derivatives: Credit derivatives - 2 33 35 Non-insured Interest rate derivatives - 157 - 157 Other - - 7 7 Other liabilities: Other payable - - 5 5 Liabilities of consolidated VIEs: Variable interest entity notes - 114 366 480 Total liabilities $ - $ 273 $ 513 $ 786 (1) - |
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 In millions Quoted Prices in Significant Other (Level 2) Significant (Level 3) Fair Value Carry Value Assets: Other investments $ - $ - $ - $ - $ - Assets of consolidated VIEs: Investments held-to-maturity - - 977 977 890 Total assets $ - $ - $ 977 $ 977 $ 890 Liabilities: Long-term debt $ - $ 1,092 $ - $ 1,092 $ 2,199 Medium-term notes - - 400 400 564 Investment agreements - - 414 414 310 Liabilities of consolidated VIEs: Variable interest entity notes - 290 977 1,267 1,160 Total liabilities $ - $ 1,382 $ 1,791 $ 3,173 $ 4,233 Financial Guarantees: Gross liability (recoverable) $ - $ - $ 1,236 $ 1,236 $ (485 ) Ceded - - 78 78 21 Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Other Significant Fair Value Carry Value Assets: Other investments $ - $ 1 $ - $ 1 $ 1 Assets of consolidated VIEs: Investments held-to-maturity - - 925 925 890 Total assets $ - $ 1 $ 925 $ 926 $ 891 Liabilities: Long-term debt $ - $ 1,101 $ - $ 1,101 $ 2,249 Medium-term notes - - 422 422 620 Investment agreements - - 388 388 311 Liabilities of consolidated VIEs: Variable interest entity notes - 378 925 1,303 1,264 Total liabilities $ - $ 1,479 $ 1,735 $ 3,214 $ 4,444 Financial Guarantees: Gross liability (recoverable) $ - $ - $ 993 $ 993 $ (43 ) Ceded - - 65 65 35 |
Changes In Level 3 Assets Measured At Fair Value On A Recurring Basis | Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2019 In millions Balance, Realized Unrealized Unrealized Foreign Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in for the Period for Assets as of Assets: Commercial mortgage-backed $ 4 $ - $ - $ - $ - $ - $ - $ (1 ) $ - $ - $ (3 ) $ - $ - Other asset-backed 1 - - - - - - - - - - 1 - Assets of consolidated VIEs: Loans receivable- residential 154 - (3 ) - - - - (5 ) - - - 146 (3 ) Loan 428 - 50 - - - - - - - - 478 50 Currency derivatives 11 - (4 ) - 1 - - - - - - 8 (4 ) Other 15 - 2 - - - - - - - - 17 2 Total assets $ 613 $ - $ 45 $ - $ 1 $ - $ - $ (6 ) $ - $ - $ (3 ) $ 650 $ 45 Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months In millions Balance, Realized Unrealized Unrealized Foreign Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in for the Period for Assets as of Assets: Commercial mortgage-backed $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 7 $ - $ 7 $ - Other asset-backed 6 - - - - - - - - - (2 ) 4 - Assets of consolidated VIEs: Corporate obligations 5 - - - - - - - - - - 5 - Collateralized debt obligations 1 - - - - - - - - - - 1 - Loans receivable-residential 683 - 20 - - - - (24 ) (251 ) - - 428 21 Loan repurchase 415 - - - - - - - - - - 415 - Currency derivatives 14 - 2 - (2 ) - - - - - - 14 - Other 14 - 1 - - - - - - - - 15 1 Total assets $ 1,138 $ - $ 23 $ - $ (2 ) $ - $ - $ (24 ) $ (251 ) $ 7 $ (2 ) $ 889 $ 22 Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended In millions Balance, Realized Unrealized Unrealized Foreign Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in for the Period for Assets as of Assets: Commercial mortgage-backed $ 7 $ - $ - $ - $ - $ - $ - $ (4 ) $ - $ - $ (3 ) $ - $ - Other asset-backed 3 (1 ) - - - - - (1 ) - - - 1 - Assets of consolidated VIEs: Corporate obligations 5 - - - - - - (2 ) - - (3 ) - - Collateralized debt obligations 1 - - - - - - - (1 ) - - - - Loans receivable-residential 172 - 40 - - - - (18 ) (48 ) - - 146 35 Loan repurchase 418 - 60 - - - - - - - - 478 60 Currency derivatives 17 - (9 ) - - - - - - - - 8 (9 ) Other 14 - 3 - - - - - - - - 17 3 Total assets $ 637 $ (1 ) $ 94 $ - $ - $ - $ - $ (25 ) $ (49 ) $ - $ (6 ) $ 650 $ 89 Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2018 In millions Balance, Realized Unrealized Unrealized Foreign Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in Assets: Corporate obligations $ 2 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (2 ) $ - $ - Commercial mortgage- 7 - - - - - - - - 7 (7 ) 7 - Other asset- 5 - - - - 5 - (2 ) (2 ) - (2 ) 4 - Assets of consolidated Corporate obligations - - - - - - - (1 ) - 6 - 5 - Commercial mortgage- 6 - - - - - - - - - (6) - - Collateralized 1 - - - - - - - - - - 1 - Loans receivable-residential 759 - 26 - - - - (106 ) (251 ) - - 428 23 Loans receivable-corporate 920 - 11 - - - - (6 ) (925 ) - - - - Loan repurchase 407 - 8 - - - - - - - - 415 8 Currency derivatives 19 - (3 ) - (2 ) - - - - - - 14 (5 ) Other 14 - 1 - - - - - - - - 15 1 Total assets $ 2,140 $ - $ 43 $ - $ (2 ) $ 5 $ - $ (115 ) $ (1,178 ) $ 13 $ (17) $ 889 $ 27 |
Changes In Level 3 Liabilities Measured At Fair Value On A Recurring Basis | In millions Balance, Realized Unrealized Unrealized Foreign Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in the Period for Liabilities still held as of Liabilities: Medium-term notes $ 110 $ - $ 3 $ (5) $ (2 ) $ - $ - $ - $ - $ - $ - $ 106 $ 1 Credit derivatives 18 10 (9 ) - - - - (9 ) - - - 10 (9 ) Other derivatives 16 - 14 - - - - - - - - 30 14 Other payable 3 - 1 - - - - - - - - 4 1 Liabilities of consolidated VIEs: VIE notes 342 14 (9 ) 10 (2 ) - 3 (10 ) - - - 348 (11 ) Total liabilities $ 489 $ 24 $ - $ 5 $ (4 ) $ - $ 3 $ (19 ) $ - $ - $ - $ 498 $ (4 ) (1) - Transferred in and out at the end of the period. In millions Balance, Realized Unrealized Unrealized Foreign Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in the Period for Liabilities still held as of Liabilities: Medium-term notes $ 149 $ (5) $ (1 ) $ 11 $ (1 ) $ - $ - $ (30 ) $ - $ - $ - $ 123 $ (2 ) Credit derivatives 31 6 (4 ) - - - - (6 ) - - - 27 (4 ) Other derivatives 4 - 3 - - - - - - - - 7 3 Other payable 5 - - - - - - - - - - 5 - Liabilities of consolidated VIE notes 389 10 3 (11 ) 5 - 1 (15 ) - - - 382 8 Total liabilities $ 578 $ 11 $ 1 $ - $ 4 $ - $ 1 $ (51 ) $ - $ - $ - $ 544 $ 5 (1) - Transferred in and out at the end of the period. In millions Balance, Realized Unrealized Unrealized Foreign Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in the Period for Liabilities still held as of Liabilities: Medium-term $ 102 $ - $ 8 $ 1 $ (2 ) $ - $ - $ (3 ) $ - $ - $ - $ 106 $ 1 Credit 33 11 (23 ) - - - - (11 ) - - - 10 (23 ) Other 7 - 23 - - - - - - - - 30 23 Other payable 5 - 2 - - - - (3 ) - - - 4 2 Liabilities of VIE notes 366 21 33 3 (1 ) - 7 (21 ) (60 ) - - 348 32 Total liabilities $ 513 $ 32 $ 43 $ 4 $ (3 ) $ - $ 7 $ (38 ) $ (60 ) $ - $ - $ 498 $ 35 (1) - Transferred in and out at the end of the period. In millions Balance, Realized Unrealized Unrealized Foreign Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in Liabilities: Medium-term notes $ 115 $ (5) $ (1) $ 51 $ (7) $ - $ - $ (30) $ - $ - $ - $ 123 $ (8) Credit derivatives 63 49 (36) - - - - (49) - - - 27 (36) Other derivatives 4 - 3 - - - - - - - - 7 3 Other payable 7 - 2 - - - - (4) - - - 5 2 Liabilities of consolidated VIEs: VIE notes 406 22 (12) (10) 3 - 7 (34) - - - 382 (9) Total liabilities $ 595 $ 66 $ (44) $ 41 $ (4) $ - $ 7 $ (117) $ - $ - $ - $ 544 $ (48) (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 September 30, 2019 Three Months Ended September 30, 2018 In millions Total Gains (Losses) Earnings Change in Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held as of September 30, 2019 Total Gains Earnings Change in Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held as of September 30, 2018 Revenues: Unrealized gains (losses) on insured derivatives $ 9 $ 9 $ 4 $ 4 Realized gains (losses) and other settlements on (10 ) - (6 ) - Net gains (losses) on (15 ) (15 ) 4 (1 ) Other net realized gains (1 ) (1 ) - - Revenues of consolidated Net gains (losses) on financial 43 56 3 14 Total $ 26 $ 49 $ 5 $ 17 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 In millions Total Gains Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held as of September 30, 2019 Total Gains Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held as of 2018 Revenues: Unrealized gains (losses) on $ 23 $ 23 $ 36 $ 36 Realized gains (losses) and other settlements on insured (11 ) - (49 ) - Net gains (losses) on financial instruments at fair value and foreign exchange (24 ) (24 ) 10 5 Net investment losses related to other-than-temporary (1 ) - - - Other net realized gains (losses) (2 ) (2 ) (2 ) (2 ) Revenues of consolidated VIEs: Net gains (losses) on financial instruments at fair value and foreign exchange 41 57 28 36 Total $ 26 $ 54 $ 23 $ 75 |
Changes In Fair Value Included In The Company's Consolidated Statements Of Operations | Three Months Ended September 30, Nine Months Ended September 30, In millions 2019 2018 2019 2018 Investments carried at fair value (1) $ 2 $ 1 $ 13 $ (4 ) Fixed-maturity securities held at fair value-VIE (2) 38 (7 ) 94 (19 ) Loans receivable at fair value: Residential mortgage loans (2) (3 ) (3 ) 40 (79 ) Corporate loans (2) - - - 11 Loan repurchase commitments (2) 50 - 60 9 Other assets-VIE (2) 2 1 3 1 Medium-term notes (1) (1 ) 7 (1 ) 14 Other liabilities (3) - - (2 ) (2 ) Variable interest entity notes (2) 3 23 (77 ) 106 (1) - Reported within “Net gains (losses) on financial instruments at fair value and foreign exchange” on MBIA’s consolidated statements of operations. (2) - Reported within “Net gains (losses) on financial instruments at fair value and foreign exchange-VIE” (3) - Reported within “Other net realized gains (losses)” on MBIA’s consolidated statements of operations. |
Difference Between Aggregate Fair Value And The Aggregate Remaining Contractual Principal Balance Outstanding | As of September 30, 2019 As of December 31, 2018 Contractual Contractual Outstanding Fair Outstanding Fair In millions Principal Value Difference Principal Value Difference Loans receivable at fair value: Residential mortgage loans $ 109 $ 109 $ - $ 168 $ 164 $ 4 Residential mortgage loans (90 days or more past due) 147 37 110 153 8 145 Total loans receivable and other instruments at fair value $ 256 $ 146 $ 110 $ 321 $ 172 $ 149 Variable interest entity notes $ 1,183 $ 472 $ 711 $ 1,295 $ 480 $ 815 Medium-term notes $ 109 $ 106 $ 3 $ 114 $ 102 $ 12 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Amortized Cost And Fair Value Of Available-For-Sale And Held-To-Maturity Investment Portfolios | September 30, 2019 In millions Amortized Gross Gross Fair Other-Than- Impairments (1) AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 807 $ 59 $ (1 ) $ 865 $ - State and municipal bonds 205 24 - 229 - Foreign governments 8 - - 8 - Corporate obligations 1,239 58 (34 ) 1,263 (33 ) Mortgage-backed securities: Residential mortgage-backed agency 297 4 (1 ) 300 - Residential mortgage-backed non-agency 25 1 (5 ) 21 - Commercial mortgage-backed 23 1 - 24 - Asset-backed securities: Collateralized debt obligations 129 - (2 ) 127 - Other asset-backed 275 1 - 276 - Total AFS investments $ 3,008 $ 148 $ (43 ) $ 3,113 $ (33 ) HTM Investments Assets of consolidated VIEs: Corporate obligations $ 890 $ 87 $ - $ 977 $ - Total HTM investments $ 890 $ 87 $ - $ 977 $ - (1) - Represents unrealized gains or losses on OTTI securities recognized in AOCI, which includes the non-credit December 31, 2018 In millions Amortized Gross Gross Fair Other-Than- Impairments (1) AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 1,093 $ 26 $ (10 ) $ 1,109 $ - State and municipal bonds 641 97 (11 ) 727 42 Foreign governments 9 - - 9 - Corporate obligations 1,473 6 (131 ) 1,348 (68 ) Mortgage-backed securities: Residential mortgage-backed agency 218 1 (5 ) 214 - Residential mortgage-backed non-agency 30 1 (4 ) 27 - Commercial mortgage-backed 53 - (2 ) 51 - Asset-backed securities: Collateralized debt obligations 122 - (3 ) 119 - Other asset-backed 178 - (1 ) 177 - Total AFS investments $ 3,817 $ 131 $ (167 ) $ 3,781 $ (26 ) HTM Investments Assets of consolidated VIEs: Corporate obligations $ 890 $ 35 $ - $ 925 $ - Total HTM investments $ 890 $ 35 $ - $ 925 $ - (1) - Represents unrealized gains or losses on OTTI securities recognized in AOCI, which includes the non-credit |
Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments | AFS Securities HTM Securities Consolidated VIEs In millions Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 598 $ 599 $ - $ - Due after one year through five years 496 503 - - Due after five years through ten years 436 423 - - Due after ten years 729 840 890 977 Mortgage-backed and asset-backed 749 748 - - Total fixed-maturity investments $ 3,008 $ 3,113 $ 890 $ 977 |
Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments | September 30, 2019 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 $ 102 $ - $ 84 $ (1 ) $ 186 $ (1 ) State and municipal bonds 5 - 26 - 31 - Foreign governments 5 - - - 5 - Corporate obligations 182 (1 ) 55 (33 ) 237 (34 ) Mortgage-backed securities: Residential mortgage-backed agency 35 (1 ) 32 - 67 (1 ) Residential mortgage-backed non-agency - - 11 (5 ) 11 (5 ) Commercial mortgage-backed 6 - - - 6 - Asset-backed securities: Collateralized debt obligations 43 - 68 (2 ) 111 (2 ) Other asset-backed 16 - 9 - 25 - Total AFS investments $ 394 $ (2 ) $ 285 $ (41 ) $ 679 $ (43 ) December 31, 2018 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 $ 231 $ (1 ) $ 278 $ (9 ) $ 509 $ (10) State and municipal bonds 60 (1 ) 135 (10 ) 195 (11) Foreign governments 5 - 2 - 7 - Corporate obligations 900 (41 ) 335 (90 ) 1,235 (131) Mortgage-backed securities: Residential mortgage-backed agency 29 (1 ) 118 (4 ) 147 (5) Residential mortgage-backed non-agency 2 - 13 (4 ) 15 (4) Commercial mortgage-backed 24 - 21 (2 ) 45 (2) Asset-backed securities: Collateralized debt obligations 98 (3 ) 7 - 105 (3) Other asset-backed 127 - 35 (1 ) 162 (1) Total AFS investments $ 1,476 $ (47 ) $ 944 $ (120 ) $ 2,420 $ (167) |
Distribution Of Securities By Percentage Of Fair Value Below Book Value By More Than 5% | AFS Securities Percentage of Fair Value Below Book Value Number of Book Value Fair Value > 5% to 15% 9 $ 19 $ 19 > 15% to 25% 1 1 - > 25% to 50% 2 14 10 > 50% 3 63 30 Total 15 $ 97 $ 59 |
Credit Losses Recognized In Earnings Related To OTTI Losses Recognized In Accumulated Other Comprehensive Income (Loss) | In millions Three Months Ended September 30, Nine Months Ended September 30, Credit Losses Recognized in Earnings Related to Other-Than- Temporary Impairments 2019 2018 2019 2018 Beginning balance $ 74 $ 34 $ 37 $ 32 Additions for credit loss impairments recognized in the current period on securities previously impaired - 1 37 3 Ending balance $ 74 $ 35 $ 74 $ 35 |
Securities Held In Unrealized Loss Position And Insured By Financial Guarantor and The Related Insurance Loss Reserve On Company Insured Investments | In millions Fair Value Unrealized Loss Insurance Loss Reserve (2) Mortgage-backed: MBIA (1) $ 11 $ (5) $ 19 (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 Nine Months Ended In millions 2019 2018 2019 2018 Proceeds from sales $ 508 $ 583 $ 1,875 $ 1,647 Gross realized gains $ 79 $ 1 $ 100 $ 4 Gross realized losses $ - $ (2 ) $ (3 ) $ (15 ) |
Portion Of Unrealized Gains Losses Recognized On Equity Investments [Table Text Block] | Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Net gains (losses) recognized during the period on equity securities $ 2 $ 3 $ 9 $ 3 Less: Net gains (losses) recognized during the period on equity securities sold during the period - - 1 1 Unrealized gains (losses) recognized during the period on equity securities still held at the reporting date $ 2 $ 3 $ 8 $ 2 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Credit Derivatives Sold | $ in millions As of September 30, 2019 Notional Value Credit Derivatives Sold Weighted AAA AA A BBB Below Total Fair Insured credit default swaps 0.3 $ - $ - $ - $ - $ 34 $ 34 $ (10 ) Insured swaps 14.8 Years - 66 1,295 461 - 1,822 (2 ) Total notional $ - $ 66 $ 1,295 $ 461 $ 34 $ 1,856 Total fair value $ - $ - $ (1 ) $ (1 ) $ (10 ) $ (12 ) $ in millions As of December 31, 2018 Notional Value Credit Derivatives Sold Weighted AAA AA A BBB Below Total Fair Insured credit default swaps 1.0 Years $ - $ - $ - $ - $ 70 $ 70 $ (33 ) Insured swaps 15.7 Years - 74 1,463 896 - 2,433 (2 ) Total notional $ - $ 74 $ 1,463 $ 896 $ 70 $ 2,503 Total fair value $ - $ - $ (1 ) $ (1 ) $ (33 ) $ (35 ) |
Total Fair Value Of Company's Derivative Assets And Liabilities By Instrument And Balance Sheet Location, Before Counterparty Netting | The following table presents the total fair value of the Company’s derivative assets and liabilities by instrument and balance sheet location, before counterparty netting, as of September 30, 2019: In millions Derivative Assets (1) Derivative Liabilities (1) Derivative Instruments Notional Balance Sheet Location Fair Value Balance Sheet Location Fair Value Not designated as hedging instruments: Insured credit default swaps $ 34 Other assets $ - Derivative liabilities $ (10) Insured swaps 1,822 Other assets - Derivative liabilities (2) Interest rate swaps 440 Other assets 2 Derivative liabilities (152) Interest rate swaps-embedded 227 Medium-term - Medium-term (17) Currency swaps-VIE 56 Other assets-VIE 8 Derivative liabilities-VIE - All other 49 Other assets - Derivative liabilities (30) Total non-designated $ 2,628 $ 10 $ (211) (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 derivative assets and liabilities by instrument and balance sheet location, before counterparty netting, as of December 31, 2018: In millions Derivative Assets (1) Derivative Liabilities (1) Derivative Instruments Notional Balance Sheet Location Fair Value Balance Sheet Location Fair Value Not designated as Insured credit default swaps $ 70 Other assets $ - Derivative liabilities $ (33 ) Insured swaps 2,433 Other assets - Derivative liabilities (2 ) Interest rate swaps 712 Other assets 2 Derivative liabilities (157 ) Interest rate swaps-embedded 293 Medium-term - Medium-term (13 ) Currency swaps-VIE 62 Other assets-VIE 16 Derivative liabilities-VIE - All other 49 Other assets - Derivative liabilities (7 ) Total non-designated $ 3,619 $ 18 $ (212 ) (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 | The following table presents the effect of derivative instruments on the consolidated statements of operations for the three months ended September 30, 2019 and 2018: In millions Derivatives Not Designated as Three Months Ended September 30, Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2019 2018 Insured credit default swaps Unrealized gains (losses) on insured derivatives $ 9 $ 4 Insured credit default swaps Realized gains (losses) and other settlements on insured derivatives (10) (5) Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange (30) 7 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE (3) - All other Net gains (losses) on financial instruments at fair value and foreign exchange (14) (4) Total $ (48) $ 2 The following table presents the effect of derivative instruments on the consolidated statements of operations for the nine months ended September 30, 2019 and 2018: In millions Derivatives Not Designated as Nine Months Ended September 30, Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2019 2018 Insured credit default swaps Unrealized gains (losses) on insured derivatives $ 23 $ 36 Insured credit default swaps Realized gains (losses) and other settlements on insured derivatives (11) (49) Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange (85) 33 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE (8) (5) All other Net gains (losses) on financial instruments at fair value and foreign exchange (23) (4) Total $ (104) $ 11 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Income (loss) from operations before provision (benefit) for income taxes | Three Months Ended September 30, Nine Months Ended September 30, In millions 2019 2018 2019 2018 Income (loss) before income taxes $ 89 $ (45) $ (137) $ (287) Provision (benefit) for income taxes $ 18 $ - $ (21) $ 2 Effective tax rate 20.2% 0.0% 15.3% -0.7% |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Summary of company's segment results | Three Months Ended September 30, 2019 In millions U.S. Public Corporate International Eliminations Consolidated Revenues (1) $ 30 $ 6 $ 11 $ - $ 47 Net gains (losses) on financial instruments at fair value and foreign exchange 78 (20) (14) - 44 Net gains (losses) on extinguishment of debt - (1) - - (1) Other net realized gains (losses) - (1) 1 - - Revenues of consolidated VIEs 32 - 50 - 82 Inter-segment revenues (2) 7 15 6 (28) - Total revenues 147 (1) 54 (28) 172 Losses and loss adjustment (90) - 77 - (13) Operating 4 15 7 - 26 Interest - 17 33 - 50 Expenses of consolidated VIEs - - 20 - 20 Inter-segment expenses (2) 14 6 8 (28) - Total expenses (72) 38 145 (28) 83 Income (loss) before income taxes $ 219 $ (39) $ (91) $ - $ 89 Identifiable assets $ 4,271 $ 939 $ 4,678 $ (2,282) (3) $ 7,606 (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 primarily of intercompany reinsurance balances and repurchase agreements. Three Months Ended September 30, 2018 In millions U.S. Public Corporate International Eliminations Consolidated Revenues (1) $ 45 $ 7 $ 58 $ - $ 110 Net change in fair value of insured derivatives - - (1) - (1) Net gains (losses) on financial instruments at fair value and foreign exchange 1 17 (13) - 5 Net investment losses related to other-than-temporary impairments (1) - - - (1) Net gains (losses) on extinguishment of debt - 3 - - 3 Other net realized gains (losses) - - 1 - 1 Revenues of consolidated VIEs - - (12) - (12) Inter-segment revenues (2) 7 11 6 (24) - Total revenues 52 38 39 (24) 105 Losses and loss adjustment 48 - (2) - 46 Operating 5 13 9 - 27 Interest - 20 32 - 52 Expenses of consolidated VIEs - - 25 - 25 Inter-segment expenses (2) 10 5 9 (24) - Total expenses 63 38 73 (24) 150 Income (loss) before income taxes $ (11) $ - $ (34) $ - $ (45) Identifiable assets $ 4,453 $ 1,062 $ 5,058 $ (2,180) (3) $ 8,393 (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 primarily of intercompany reinsurance balances and repurchase agreements. The following tables provide the Company’s segment results for the nine months ended September 30, 2019 and 2018: Nine Months Ended September 30, 2019 In millions U.S. Public Corporate International Eliminations Consolidated Revenues (1) $ 106 $ 21 $ 28 $ - $ 155 Net change in fair value of insured derivatives - - 13 - 13 Net gains (losses) on financial instruments at fair value and foreign exchange 135 (71) (24) - 40 Net investment losses related to other-than-temporary impairments (37) - - - (37) Net gains (losses) on extinguishment of debt - (1) - - (1) Other net realized gains (losses) 1 (2) 3 - 2 Revenues of consolidated VIEs 38 - 41 1 80 Inter-segment revenues (2) 22 48 15 (85) - Total revenues 265 (5) 76 (84) 252 Losses and loss adjustment (34) - 123 - 89 Operating 8 53 16 - 77 Interest - 56 98 - 154 Expenses of consolidated VIEs - - 69 - 69 Inter-segment expenses (2) 41 17 26 (84) - Total expenses 15 126 332 (84) 389 Income (loss) before income taxes $ 250 $ (131) $ (256) $ - $ (137) Identifiable assets $ 4,271 $ 939 $ 4,678 $ (2,282) (3) $ 7,606 (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 primarily of intercompany reinsurance balances and repurchase agreements. Nine Months Ended September 30, 2018 In millions U.S. Public Corporate International Eliminations Consolidated Revenues (1) $ 139 $ 20 $ 98 $ - $ 257 Net change in fair value of insured derivatives - - (13) - (13) Net gains (losses) on financial instruments at fair value and foreign exchange (13) 48 (17) - 18 Net investment losses related to other-than-temporary impairments (3) - - - (3) Net gains (losses) on extinguishment of debt - 3 - - 3 Other net realized gains (losses) - (2) 2 - - Revenues of consolidated VIEs - - (72) - (72) Inter-segment revenues (2) 20 36 18 (74) - Total revenues 143 105 16 (74) 190 Losses and loss adjustment 184 - (7) - 177 Operating 14 39 21 - 74 Interest - 60 95 - 155 Expenses of consolidated VIEs - - 71 - 71 Inter-segment expenses (2) 34 14 27 (75) - Total expenses 232 113 207 (75) 477 Income (loss) before income taxes $ (89) $ (8) $ (191) $ 1 $ (287) Identifiable assets $ 4,453 $ 1,062 $ 5,058 $ (2,180) $ 8,393 (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 primarily of intercompany reinsurance balances and repurchase agreements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2019 and 2018: In millions except per share amounts 2019 2018 2019 2018 Basic earnings per share: Net income (loss) $ 71 $ (45 ) $ (116 ) $ (289 ) Less: undistributed earnings allocated to participating securities 4 - - - Net income (loss) available to common shareholders 67 (45 ) (116 ) (289 ) Basic weighted average shares (1) 78.7 89.5 82.8 89.1 Net income (loss) per basic common share $ 0.86 $ (0.50 ) $ (1.40 ) $ (3.24 ) Diluted earnings per share: Net income (loss) $ 71 $ (45 ) $ (116 ) $ (289 ) Less: undistributed earnings allocated to participating securities 4 - - - Net income (loss) available to common shareholders 67 (45) (116 ) (289 ) Diluted weighted average shares 78.7 89.5 82.8 89.1 Net income (loss) per diluted common share $ 0.86 $ (0.50 ) $ (1.40 ) $ (3.24 ) Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect 4.5 1.4 4.5 1.4 (1) - Includes 1.1 million and 0.9 , 0.8 nine |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Changes In The Components Of AOCI | In millions Unrealized Instrument-Specific Total Balance, December 31, 2018 $ (39) $ (7) $ (110) $ (156) Other comprehensive income (loss) 133 1 (27) 107 Amounts reclassified from AOCI (20) - 26 6 Net period other comprehensive 113 1 (1) 113 Balance, September 30, 2019 $ 74 $ (6) $ (111) $ (43 |
Reclassifications From AOCI | In millions Amounts Reclassified from AOCI Three Months Ended September 30, Nine Months Ended September 30, Details about AOCI Components 201 9 2018 201 9 2018 Affected Line Item o n the Consolidated S O Unrealized gains (losses) Realized gains (losses) $ (7) $ 2 $ 16 $ 4 Net gains (losses) on financial OTTI 42 (2) 5 (3) Net investment losses related to Amortization on (1) - (1) (1) Net investment income Total unrealized gains (losses) on AFS securities 34 - 20 - Instrument-specific credit risk of liabilities: Settlement of liabilities (3) - (26) - Net gains (losses) on financial Total reclassifications for $ 31 $ - $ (6) $ - Net income (loss) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Operating Leases Of Lessee Disclosure | $ in millions As of September 30, 2019 Balance Sheet Location Right-of-use $ Other assets Lease liability $ 22 Other liabilities Weighted average remaining lease term (years) 8.2 Discount rate used for operating leases 7.5 % Total future minimum lease payments $ 33 |
Business Developments And Ris_2
Business Developments And Risks And Uncertainties (Narrative) (Detail) $ in Millions | Oct. 15, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($)segments |
Business Acquisition [Line Items] | |||
Number of business segments | segments | 3 | ||
Zohar [Member] | |||
Business Acquisition [Line Items] | |||
Aggregate claim amount | $ 919 | $ 919 | |
National [Member] | Subsequent Event [Member] | |||
Business Acquisition [Line Items] | |||
Dividends from subsidiaries | $ 110 | ||
Puerto Rico [Member] | |||
Business Acquisition [Line Items] | |||
Claims payments | 393 | ||
Outstanding bonds | $ 2,400 | $ 2,400 | |
Puerto Rico [Member] | Restructuring Support Agreement [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
PREPA percentage of voting bondholders | 67.00% |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Narrative) (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 |
Operating lease right of use asset | $ 22 | $ 23 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Detail) $ in Millions | 3 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019USD ($) | Sep. 30, 2018 | Jun. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Variable Interest Entity [Line Items] | ||||||
Carrying amounts of assets | $ 1,600 | $ 1,700 | ||||
Carrying amounts of liabilities | $ 1,600 | $ 1,700 | ||||
Variable Interest Entity Primary Beneficiary [Member] | U S Public Finance Insurance [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of variable interest entities consolidated | 7 | |||||
Net realized gains (losses) related to the initial consolidation | $ (42) | |||||
Variable Interest Entity Primary Beneficiary [Member] | Structured Finance And International Insurance [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of variable interest entities deconsolidated | 2 | 3 | ||||
Variable Interest Entity Primary Beneficiary [Member] | Structured Finance And International Insurance [Member] | Zohar Funds Bankruptcy Cases Debtors [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of variable interest entities deconsolidated | 2 | |||||
Deconsolidation, Gain (Loss), Amount | $ (93) |
Variable Interest Entities (Sum
Variable Interest Entities (Summary Of Nonconsolidated VIEs Assets And Liabilities) (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||
Maximum Exposure to Loss | $ 5,891 | $ 7,284 | |
Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [1] | 15 | 17 |
Premiums Receivable [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [2] | 33 | 40 |
Insurance Loss Recoverable [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [3] | 896 | 987 |
Unearned Premium Revenue [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Liabilities | [4] | 34 | 41 |
Loss And Loss Adjustment Expense Reserves Member [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Liabilities | [5] | 457 | 357 |
Global Structured Finance [Member] | |||
Variable Interest Entity [Line Items] | |||
Maximum Exposure to Loss | 3,815 | 5,053 | |
Global Structured Finance [Member] | Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [1] | 15 | 17 |
Global Structured Finance [Member] | Premiums Receivable [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [2] | 25 | 31 |
Global Structured Finance [Member] | Insurance Loss Recoverable [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [3] | 896 | 987 |
Global Structured Finance [Member] | Unearned Premium Revenue [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Liabilities | [4] | 24 | 29 |
Global Structured Finance [Member] | Loss And Loss Adjustment Expense Reserves Member [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Liabilities | [5] | 457 | 357 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | |||
Variable Interest Entity [Line Items] | |||
Maximum Exposure to Loss | 2,320 | 3,103 | |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [1] | 15 | 17 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Premiums Receivable [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [2] | 17 | 19 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Insurance Loss Recoverable [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [3] | 99 | 128 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Unearned Premium Revenue [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Liabilities | [4] | 15 | 17 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Loss And Loss Adjustment Expense Reserves Member [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Liabilities | [5] | 447 | 345 |
Global Structured Finance [Member] | Commercial Mortgage Backed Securities [Member] | |||
Variable Interest Entity [Line Items] | |||
Maximum Exposure to Loss | 32 | 52 | |
Global Structured Finance [Member] | Commercial Mortgage Backed Securities [Member] | Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [1] | 0 | 0 |
Global Structured Finance [Member] | Commercial Mortgage Backed Securities [Member] | Premiums Receivable [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [2] | 0 | 0 |
Global Structured Finance [Member] | Commercial Mortgage Backed Securities [Member] | Insurance Loss Recoverable [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [3] | 0 | 0 |
Global Structured Finance [Member] | Commercial Mortgage Backed Securities [Member] | Unearned Premium Revenue [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Liabilities | [4] | 0 | 0 |
Global Structured Finance [Member] | Commercial Mortgage Backed Securities [Member] | Loss And Loss Adjustment Expense Reserves Member [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Liabilities | [5] | 0 | 0 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | |||
Variable Interest Entity [Line Items] | |||
Maximum Exposure to Loss | 406 | 560 | |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [1] | 0 | 0 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Premiums Receivable [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [2] | 1 | 3 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Insurance Loss Recoverable [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [3] | 2 | 1 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Unearned Premium Revenue [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Liabilities | [4] | 1 | 2 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Loss And Loss Adjustment Expense Reserves Member [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Liabilities | [5] | 10 | 12 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | |||
Variable Interest Entity [Line Items] | |||
Maximum Exposure to Loss | 1,057 | 1,338 | |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [1] | 0 | 0 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Premiums Receivable [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [2] | 7 | 9 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Insurance Loss Recoverable [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [3] | 795 | 858 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Unearned Premium Revenue [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Liabilities | [4] | 8 | 10 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Loss And Loss Adjustment Expense Reserves Member [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Liabilities | [5] | 0 | 0 |
Global Public Finance [Member] | |||
Variable Interest Entity [Line Items] | |||
Maximum Exposure to Loss | 2,076 | 2,231 | |
Global Public Finance [Member] | Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [1] | 0 | 0 |
Global Public Finance [Member] | Premiums Receivable [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [2] | 8 | 9 |
Global Public Finance [Member] | Insurance Loss Recoverable [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Assets | [3] | 0 | 0 |
Global Public Finance [Member] | Unearned Premium Revenue [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Liabilities | [4] | 10 | 12 |
Global Public Finance [Member] | Loss And Loss Adjustment Expense Reserves Member [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying Value of VIE Liabilities | [5] | $ 0 | $ 0 |
[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 Expe_3
Loss And Loss Adjustment Expense Reserves (Loss And LAE Activity) (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Loss And Loss Adjustment Expense Reserves [Line Items] | |||||
Weighted average risk-free rate used to discount claim liability | 1.78% | ||||
Gross potential recoveries | $ 108 | ||||
Lae [Member] | |||||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||||
Losses and loss adjustment | $ 16 | $ 6 | $ 26 | $ 28 | |
Loss and loss adjustment expense reserves | $ 37 | $ 37 | $ 60 | ||
Changes in Loss and LAE Reserves | one-year |
Loss And Loss Adjustment Expe_4
Loss And Loss Adjustment Expense Reserves (Schedule Of Losses And Loss Adjustment Expenses Reserves and Recoveries) (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | ||
Loss And Lae Reserves [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Loss and loss adjustment expense reserves | [1],[2] | $ 859 | $ 965 | |
Insurance Loss Recoverable [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Insurance Loss Recoverable | 1,843 | 1,595 | ||
U S Public Finance Insurance [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Insurance Loss Recoverable | 945 | 571 | ||
Loss and loss adjustment expense reserves | [2] | 438 | 551 | |
U S Public Finance Insurance [Member] | Non Variable Interest Entity [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Insurance Loss Recoverable | 945 | 571 | ||
Loss and loss adjustment expense reserves | [2] | 374 | 551 | |
International And Structured Finance Insurance [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Insurance Loss Recoverable | [3] | 1,389 | 1,461 | |
Loss and loss adjustment expense reserves | [2],[3] | 797 | 668 | |
International And Structured Finance Insurance [Member] | Variable Interest Entity Primary Beneficiary [Member] | Loan Repurchase Commitments [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Loan repurchase commitments | 478 | 418 | ||
International And Structured Finance Insurance [Member] | Non Variable Interest Entity [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Insurance Loss Recoverable | 898 | 1,024 | ||
Loss and loss adjustment expense reserves | [2] | 485 | 414 | |
Intersegment Elimination [Member] | U S Public Finance Insurance [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Insurance Loss Recoverable | 0 | 0 | ||
Loss and loss adjustment expense reserves | (64) | [2] | 0 | |
Intersegment Elimination [Member] | International And Structured Finance Insurance [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Insurance Loss Recoverable | [3] | (491) | (437) | |
Loss and loss adjustment expense reserves | [2],[3] | $ (312) | $ (254) | |
[1] | Amounts are net of expected recoveries of unpaid claims. | |||
[2] | Amounts are net of expected recoveries. | |||
[3] | Includes loan repurchase commitments of $478 million and $418 million as of September 30, 2019 and December 31, 2018, respectively. |
Loss And Loss Adjustment Expe_5
Loss And Loss Adjustment Expense Reserves (Schedule Of Loss And Loss Adjustment Expenses Reserves) (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Changes in unearned premium revenue | $ 88 | $ 142 | |
Loss And Lae Reserves [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Gross loss and LAE reserve, beginning balance | [1],[2] | 965 | |
Loss payments for cases | (425) | ||
Accretion of claim liability discount | 14 | ||
Changes in discount rates | (59) | ||
Changes in assumptions | 369 | ||
Changes in unearned premium revenue | 24 | ||
Changes in LAE | (23) | ||
Other | (6) | ||
Gross loss and LAE reserve, ending balance | [1],[2] | $ 859 | |
[1] | Amounts are net of expected recoveries of unpaid claims. | ||
[2] | Amounts are net of expected recoveries. |
Loss And Loss Adjustment Expe_6
Loss And Loss Adjustment Expense Reserves (Schedule Of Insurance Loss Recoverable) (Detail) - Insurance Loss Recoverable [Member] $ in Millions | 9 Months Ended | |
Sep. 30, 2019USD ($) | ||
Roll forward of Insurance Loss Recoverable [Line Items] | ||
Gross Reserve beginning balance, Insurance loss recoverable | $ 1,595 | |
Collections for Cases | (110) | |
Accretion of Recoveries | 27 | |
Changes in Discount Rates | 87 | |
Changes in Assumptions | 216 | [1] |
Other | 28 | [2] |
Gross Reserve ending balance, Insurance loss recoverable | $ 1,843 | |
[1] | Includes amounts related to paid claims and LAE that are expected to be recovered in the future. | |
[2] | Primarily changes in amount and timing of collections. |
Loss And Loss Adjustment Expe_7
Loss And Loss Adjustment Expense Reserves (Schedule Of Financial Guarantees And Related Claim Liability) (Detail) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($)issuepolicy | Dec. 31, 2018USD ($)issuepolicy | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Number of policies | policy | 281 | 301 | ||
Number of issues | issue | [1] | 115 | 122 | |
Remaining weighted average contract period (in years) | 7 years 8 months 12 days | 8 years 10 months 24 days | ||
Principal | [2] | $ 5,731 | $ 7,206 | |
Interest | [2] | 3,959 | 7,655 | |
Total | [2] | 9,690 | 14,861 | |
Gross claim liability | [3] | 944 | 1,085 | |
Less: Gross potential recoveries | [4] | 2,321 | 2,363 | |
Discount, net | [5] | (417) | (670) | |
Net claim liability (recoverable) | (960) | (608) | ||
Unearned premium revenue | 49 | 72 | ||
Reinsurance recoverables on paid and unpaid losses | $ 16 | $ 21 | [6] | |
Caution List Low [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Number of policies | policy | 46 | 50 | ||
Number of issues | issue | [1] | 13 | 16 | |
Remaining weighted average contract period (in years) | 7 years 2 months 12 days | 6 years 8 months 12 days | ||
Principal | [2] | $ 1,625 | $ 1,604 | |
Interest | [2] | 2,173 | 2,118 | |
Total | [2] | 3,798 | 3,722 | |
Gross claim liability | [3] | 0 | 0 | |
Less: Gross potential recoveries | [4] | 0 | 0 | |
Discount, net | [5] | 0 | 0 | |
Net claim liability (recoverable) | 0 | 0 | ||
Unearned premium revenue | $ 7 | $ 5 | ||
Caution List Medium [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Number of policies | policy | 19 | 18 | ||
Number of issues | issue | [1] | 5 | 4 | |
Remaining weighted average contract period (in years) | 7 years 2 months 12 days | 8 years | ||
Principal | [2] | $ 256 | $ 249 | |
Interest | [2] | 117 | 123 | |
Total | [2] | 373 | 372 | |
Gross claim liability | [3] | 0 | 0 | |
Less: Gross potential recoveries | [4] | 0 | 0 | |
Discount, net | [5] | 0 | 0 | |
Net claim liability (recoverable) | 0 | 0 | ||
Unearned premium revenue | $ 3 | $ 4 | ||
Caution List High [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Number of policies | policy | 0 | 0 | ||
Number of issues | issue | [1] | 0 | 0 | |
Principal | [2] | $ 0 | $ 0 | |
Interest | [2] | 0 | 0 | |
Total | [2] | 0 | 0 | |
Gross claim liability | [3] | 0 | 0 | |
Less: Gross potential recoveries | [4] | 0 | 0 | |
Discount, net | [5] | 0 | 0 | |
Net claim liability (recoverable) | 0 | 0 | ||
Unearned premium revenue | $ 0 | $ 0 | ||
Classified List [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Number of policies | policy | 216 | 233 | ||
Number of issues | issue | [1] | 97 | 102 | |
Remaining weighted average contract period (in years) | 8 years | 9 years 8 months 12 days | ||
Principal | [2] | $ 3,850 | $ 5,353 | |
Interest | [2] | 1,669 | 5,414 | |
Total | [2] | 5,519 | 10,767 | |
Gross claim liability | [3] | 944 | 1,085 | |
Less: Gross potential recoveries | [4] | 2,321 | 2,363 | |
Discount, net | [5] | (417) | (670) | |
Net claim liability (recoverable) | (960) | (608) | ||
Unearned premium revenue | $ 39 | $ 63 | ||
[1] | An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt. | |||
[2] | Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA. | |||
[3] | The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position. | |||
[4] | Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position. | |||
[5] | Represents discount related to Gross Claim Liability and Gross Potential Recoveries. | |||
[6] | Included in “Other assets” on the Company’s consolidated balance sheets. |
Fair Value Of Financial Instr_3
Fair Value Of Financial Instruments (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Percentage of level 3 assets at fair value in total assets measured at fair value value | 15.00% | 15.00% | 12.00% | ||
Percentage of level 3 liabilities at fair value in total liabilities measured at fair value | 64.00% | 64.00% | 65.00% | ||
Cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option | $ (43) | $ (43) | $ (156) | ||
Instrument-specific credit risk included in earnings | 3 | $ 38 | 26 | $ 48 | |
Instrument-specific credit risk of liabilities measured at fair value, net [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option | $ (111) | $ (111) | $ (110) |
Fair Value Of Financial Instr_4
Fair Value Of Financial Instruments (Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Cash Flows [Member] | Other Derivatives Liabilities [Member] | Discounted cash flow [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Fair value, liabilities | $ 30 | $ 7 | |
Cash Flows [Member] | Other Derivatives Liabilities [Member] | Minimum [Member] | Discounted cash flow [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Range dollars | 0 | 0 | |
Cash Flows [Member] | Other Derivatives Liabilities [Member] | Maximum [Member] | Discounted cash flow [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Range dollars | 49 | 49 | |
Cash Flows [Member] | Other Derivatives Liabilities [Member] | Weighted Average [Member] | Discounted cash flow [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Range dollars | [1] | 25 | 25 |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Commercial Mortgage Backed Securities [Member] | Direct Price Model [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Fair value, liabilities | $ 10 | $ 33 | |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Commercial Mortgage Backed Securities [Member] | Minimum [Member] | Direct Price Model [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Range percentage | 54.00% | 54.00% | |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Commercial Mortgage Backed Securities [Member] | Maximum [Member] | Direct Price Model [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Range percentage | 54.00% | 54.00% | |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Commercial Mortgage Backed Securities [Member] | Weighted Average [Member] | Direct Price Model [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Range percentage | 54.00% | 54.00% | |
Loans Receivable and Other Instruments at Fair Value [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [Member] | 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 | $ 146 | $ 172 | |
Loans Receivable and Other Instruments at Fair Value [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [Member] | Minimum [Member] | 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 | [2] | (12.00%) | (17.00%) |
Loans Receivable and Other Instruments at Fair Value [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [Member] | Maximum [Member] | 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 | 83.00% | 75.00% | |
Loans Receivable and Other Instruments at Fair Value [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [Member] | Weighted Average [Member] | 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 | 21.00% | 7.00% | |
Loan Repurchase Commitments [Member] | Variable Interest Entity Primary Beneficiary [Member] | Recovery Rates And Breach Rates [Member] | Discounted cash flow [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Fair Value, assets | $ 478 | $ 418 | |
Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [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 | $ 348 | $ 366 | |
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 | 34.00% | 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 | 72.00% | 63.00% | |
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 | 59.00% | 39.00% | |
[1] | Midpoint of cash flows are used for the weighted average. | ||
[2] | Negative percentage represents financial guarantee policies in a receivable position. |
Fair Value Of Financial Instr_5
Fair Value Of Financial Instruments (Company's Assets And Liabilities Measured At Fair Value On Recurring Basis) (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | ||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | $ 4,315 | $ 5,131 | ||
Fair value financial liabilities measured on recurring basis | 776 | 786 | ||
Counterparty and cash collateral netting | 0 | |||
Money Market Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 164 | 67 | [1] | |
Medium-term Notes [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 106 | 102 | ||
Perpetual Debt And Equity Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 65 | 58 | ||
Cash and Cash Equivalents [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 76 | 222 | ||
Fixed Income Funds [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 52 | [1] | 75 | |
Fixed Maturities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 3,214 | 3,871 | ||
Fixed Maturities [Member] | U S Treasury And Government [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 874 | 1,118 | ||
Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 230 | 728 | ||
Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 9 | 9 | ||
Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1,333 | 1,410 | ||
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 | 310 | 219 | ||
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 | 21 | 28 | ||
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 | 26 | 54 | ||
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 | 130 | 121 | ||
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 | 281 | 184 | ||
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 | 2 | 2 | ||
Assets Of Consolidated V I Es [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 | 478 | 418 | ||
Assets Of Consolidated V I Es [Member] | Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 8 | 14 | ||
Assets Of Consolidated V I Es [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 47 | 92 | ||
Assets Of Consolidated V I Es [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 16 | 34 | ||
Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 6 | 7 | ||
Assets Of Consolidated V I Es [Member] | Other Asset Backed [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 11 | 10 | ||
Assets Of Consolidated V I Es [Member] | Loans Receivable and Other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 146 | 172 | ||
Assets Of Consolidated V I Es [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 | 8 | 17 | ||
Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 5 | 58 | ||
Assets Of Consolidated V I Es [Member] | Other [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 17 | 14 | ||
Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 12 | 35 | ||
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 | 152 | 157 | ||
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 | 30 | 7 | ||
Other Liabilities [Member] | Other Payable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 4 | 5 | ||
Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 472 | 480 | ||
Fair Value Inputs Level 1 [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1,048 | 1,331 | ||
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 | 164 | |||
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 | 28 | 23 | ||
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 | 76 | 222 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 775 | 1,028 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | U S Treasury And Government [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 775 | 1,028 | ||
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Other Asset Backed [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | |||
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 5 | 58 | ||
Fair Value Inputs Level 2 [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 2,565 | 3,021 | ||
Fair value financial liabilities measured on recurring basis | 278 | 273 | ||
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 | 37 | 35 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 2,438 | 2,833 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | U S Treasury And Government [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 99 | 90 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 230 | 728 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 9 | 9 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1,333 | 1,410 | ||
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 | 310 | 219 | ||
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 | 21 | 28 | ||
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 | 26 | 47 | ||
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 | 130 | 121 | ||
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 | 280 | 181 | ||
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 | 2 | 2 | ||
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 8 | 9 | ||
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 47 | 92 | ||
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 16 | 34 | ||
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 6 | 6 | ||
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Other Asset Backed [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 11 | 10 | ||
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 | 152 | 157 | ||
Fair Value Inputs Level 2 [Member] | Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 124 | 114 | ||
Fair Value Inputs Level 3 [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 650 | 637 | ||
Fair value financial liabilities measured on recurring basis | 498 | 513 | ||
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 | 106 | 102 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1 | 10 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 7 | |||
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 | 1 | 3 | ||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [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 | 478 | 418 | ||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 5 | |||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1 | |||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Loans Receivable and Other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 146 | 172 | ||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [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 | 8 | 17 | ||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Other [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 17 | 14 | ||
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 | 10 | 33 | ||
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 | 30 | 7 | ||
Fair Value Inputs Level 3 [Member] | Other Liabilities [Member] | Other Payable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 4 | 5 | ||
Fair Value Inputs Level 3 [Member] | Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | $ 348 | $ 366 | ||
[1] | 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 Of Financial Instr_6
Fair Value Of Financial Instruments (Fair Value Hierarchy Table Presents The Company's Assets And Liabilities At Fair Value Not Recorded On The Company's Consolidated Balance Sheet) (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Investments held-to-maturity, fair value | $ 977 | $ 925 |
Carrying Reported Amount Fair Value Disclosure [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Other investments | 1 | |
Total assets | 890 | 891 |
Long-term debt | 2,199 | 2,249 |
Medium-term notes | 564 | 620 |
Investment agreements | 310 | 311 |
Total liabilities | 4,233 | 4,444 |
Gross | (485) | (43) |
Ceded | 21 | 35 |
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 Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Investments held-to-maturity, fair value | 890 | 890 |
Variable interest entity notes | 1,160 | 1,264 |
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Other investments | 1 | |
Total assets | 977 | 926 |
Long-term debt | 1,092 | 1,101 |
Medium-term notes | 400 | 422 |
Investment agreements | 414 | 388 |
Total liabilities | 3,173 | 3,214 |
Gross | 1,236 | 993 |
Ceded | 78 | 65 |
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Variable Interest Entity Primary Beneficiary [Member] | Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Investments held-to-maturity, fair value | 977 | 925 |
Variable interest entity notes | 1,267 | 1,303 |
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 2 [Member] | Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Other investments | 1 | |
Total assets | 1 | |
Long-term debt | 1,092 | 1,101 |
Total liabilities | 1,382 | 1,479 |
Fair Value [Member] | 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 Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Variable interest entity notes | 290 | 378 |
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 3 [Member] | Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Total assets | 977 | 925 |
Medium-term notes | 400 | 422 |
Investment agreements | 414 | 388 |
Total liabilities | 1,791 | 1,735 |
Gross | 1,236 | 993 |
Ceded | 78 | 65 |
Fair Value [Member] | 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 Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Investments held-to-maturity, fair value | 977 | 925 |
Variable interest entity notes | $ 977 | $ 925 |
Fair Value Of Financial Instr_7
Fair Value Of Financial Instruments (Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - Fair Value Inputs Level 3 [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | $ 613 | $ 1,138 | $ 637 | $ 2,140 |
Realized gains/(losses), assets | 0 | 0 | (1) | 0 |
Unrealized gains/(losses) included in earnings, assets | 45 | 23 | 94 | 43 |
Unrealized gains/(losses) included in OCI, assets | 0 | 0 | 0 | 0 |
Foreign exchange recognized in OCI or earnings, assets | 1 | (2) | 0 | (2) |
Purchases, assets | 0 | 0 | 0 | 5 |
Issuances, assets | 0 | 0 | 0 | 0 |
Settlements, assets | (6) | (24) | (25) | (115) |
Sales, assets | 0 | (251) | (49) | (1,178) |
Transfers into level 3, assets | 0 | 7 | 0 | 13 |
Transfers out of level 3, assets | (3) | (2) | (6) | (17) |
Ending balance, fair value assets | 650 | 889 | 650 | 889 |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 45 | 22 | 89 | 27 |
Beginning balance, fair value liabilities | 489 | 578 | 513 | 595 |
Realized gains/(losses), liabilities | 24 | 11 | 32 | 66 |
Unrealized gains/(losses included in earnings, liabilities | 0 | 1 | 43 | (44) |
Unrealized gains/(losses) included in OCI, liabilities | 5 | 0 | 4 | 41 |
Foreign exchange recognized in OCI or earnings, liabilities | (4) | 4 | (3) | (4) |
Purchases, liabilities | 0 | 0 | 0 | 0 |
Issuances, liabilities | 3 | 1 | 7 | 7 |
Settlements, liabilities | (19) | (51) | (38) | (117) |
Sales, liabilities | 0 | 0 | (60) | 0 |
Transfers into Level 3, liabilities | 0 | 0 | 0 | 0 |
Transfers out of Level 3, liabilities | 0 | 0 | 0 | 0 |
Ending balance, fair value liabilities | 498 | 544 | 498 | 544 |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | (4) | 5 | 35 | (48) |
Residential Prime Financing Receivable [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 154 | 683 | 172 | 759 |
Unrealized gains/(losses) included in earnings, assets | (3) | 20 | 40 | 26 |
Settlements, assets | (5) | (24) | (18) | (106) |
Sales, assets | (251) | (48) | (251) | |
Ending balance, fair value assets | 146 | 428 | 146 | 428 |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (3) | 21 | 35 | 23 |
Corporate Loans Receivable and Other Instruments [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 920 | |||
Unrealized gains/(losses) included in earnings, assets | 11 | |||
Settlements, assets | (6) | |||
Sales, assets | (925) | |||
Ending balance, fair value assets | 0 | 0 | ||
Loan Repurchase Commitments [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 428 | 415 | 418 | 407 |
Unrealized gains/(losses) included in earnings, assets | 50 | 60 | 8 | |
Ending balance, fair value assets | 478 | 415 | 478 | 415 |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 50 | 60 | 8 | |
Corporate Obligations [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 2 | |||
Transfers out of level 3, assets | (2) | |||
Ending balance, fair value assets | 0 | 0 | ||
Corporate Obligations [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 5 | 5 | ||
Settlements, assets | (2) | (1) | ||
Transfers into level 3, assets | 6 | |||
Transfers out of level 3, assets | (3) | |||
Ending balance, fair value assets | 0 | 5 | 0 | 5 |
Commercial Mortgage Backed Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 4 | 7 | 7 | |
Settlements, assets | (1) | (4) | ||
Transfers into level 3, assets | 7 | 7 | ||
Transfers out of level 3, assets | (3) | (3) | (7) | |
Ending balance, fair value assets | 0 | 7 | 0 | 7 |
Commercial Mortgage Backed Securities [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 6 | |||
Transfers out of level 3, assets | (6) | |||
Ending balance, fair value assets | 0 | 0 | ||
Collateralized Debt Obligations [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 1 | 1 | 1 | |
Sales, assets | (1) | |||
Transfers out of level 3, assets | 0 | |||
Ending balance, fair value assets | 0 | 1 | 0 | 1 |
Other Asset Backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 1 | 6 | 3 | 5 |
Realized gains/(losses), assets | (1) | |||
Purchases, assets | 5 | |||
Settlements, assets | (1) | (2) | ||
Sales, assets | (2) | |||
Transfers out of level 3, assets | (2) | (2) | ||
Ending balance, fair value assets | 1 | 4 | 1 | 4 |
Medium Term Notes [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value liabilities | 110 | 149 | 102 | 115 |
Realized gains/(losses), liabilities | (5) | (5) | ||
Unrealized gains/(losses included in earnings, liabilities | 3 | (1) | 8 | (1) |
Unrealized gains/(losses) included in OCI, liabilities | (5) | 11 | 1 | 51 |
Foreign exchange recognized in OCI or earnings, liabilities | (2) | (1) | (2) | (7) |
Settlements, liabilities | (30) | (3) | (30) | |
Ending balance, fair value liabilities | 106 | 123 | 106 | 123 |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 1 | (2) | 1 | (8) |
Credit Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value liabilities | 18 | 31 | 33 | 63 |
Realized gains/(losses), liabilities | 10 | 6 | 11 | 49 |
Unrealized gains/(losses included in earnings, liabilities | (9) | (4) | (23) | (36) |
Settlements, liabilities | (9) | (6) | (11) | (49) |
Ending balance, fair value liabilities | 10 | 27 | 10 | 27 |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | (9) | (4) | (23) | (36) |
Other Derivatives Liabilities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value liabilities | 16 | 4 | 7 | 4 |
Unrealized gains/(losses included in earnings, liabilities | 14 | 3 | 23 | 3 |
Ending balance, fair value liabilities | 30 | 7 | 30 | 7 |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 14 | 3 | 23 | 3 |
Variable Interest Entity Notes [Member] | Liabilities Of Consolidated Vies [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value liabilities | 342 | 389 | 366 | 406 |
Realized gains/(losses), liabilities | 14 | 10 | 21 | 22 |
Unrealized gains/(losses included in earnings, liabilities | (9) | 3 | 33 | (12) |
Unrealized gains/(losses) included in OCI, liabilities | 10 | (11) | 3 | (10) |
Foreign exchange recognized in OCI or earnings, liabilities | (2) | 5 | (1) | 3 |
Issuances, liabilities | 3 | 1 | 7 | 7 |
Settlements, liabilities | (10) | (15) | (21) | (34) |
Sales, liabilities | (60) | |||
Ending balance, fair value liabilities | 348 | 382 | 348 | 382 |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | (11) | 8 | 32 | (9) |
Currency Derivatives [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 11 | 14 | 17 | 19 |
Unrealized gains/(losses) included in earnings, assets | (4) | 2 | (9) | (3) |
Foreign exchange recognized in OCI or earnings, assets | 1 | (2) | (2) | |
Ending balance, fair value assets | 8 | 14 | 8 | 14 |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (4) | (9) | (5) | |
Other Assets [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 15 | 14 | 14 | 14 |
Unrealized gains/(losses) included in earnings, assets | 2 | 1 | 3 | 1 |
Ending balance, fair value assets | 17 | 15 | 17 | 15 |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 2 | 1 | 3 | 1 |
Other Payable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value liabilities | 3 | 5 | 5 | 7 |
Unrealized gains/(losses included in earnings, liabilities | 1 | 2 | 2 | |
Settlements, liabilities | (3) | (4) | ||
Ending balance, fair value liabilities | 4 | $ 5 | 4 | 5 |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | $ 1 | $ 2 | $ 2 |
Fair Value Of Financial Instr_8
Fair Value Of Financial Instruments (Realized And Unrealized Gains And Losses Included In Earnings Pertaining To Level 3 Assets And Liabilities) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Unrealized gains (losses) on insured derivatives | $ 23 | $ 36 | ||
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 | $ 9 | $ 4 | 23 | 36 |
Realized gains (losses) and other settlements on insured derivatives | (10) | (6) | (11) | (49) |
Net gains (losses) on financial instruments at fair value and foreign exchange | (15) | 4 | (24) | 10 |
Net investment losses related to other-than-temporary impairments | (1) | |||
Other net realized gains (losses) | (1) | (2) | (2) | |
Total revenues | 26 | 5 | 26 | 23 |
Fair Value Inputs Level 3 [Member] | Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Unrealized gains (losses) on insured derivatives | 9 | 4 | 23 | 36 |
Realized gains (losses) and other settlements on insured derivatives | 0 | 0 | 0 | 0 |
Net gains (losses) on financial instruments at fair value and foreign exchange | (15) | (1) | (24) | 5 |
Net investment losses related to other-than-temporary impairments | 0 | 0 | ||
Other net realized gains (losses) | (1) | (2) | (2) | |
Total revenues | 49 | 17 | 54 | 75 |
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 | 43 | 3 | 41 | 28 |
Fair Value Inputs Level 3 [Member] | Variable Interest Entity Primary Beneficiary [Member] | Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | $ 56 | $ 14 | $ 57 | $ 36 |
Fair Value Of Financial Instr_9
Fair Value Of Financial Instruments (Gains And Losses On Fair Value Option Included In The Company's Consolidated Statements Of Operations) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Non Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | $ 44 | $ 5 | $ 40 | $ 18 | |
Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 76 | 12 | 112 | 29 | |
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 | [1] | 2 | 1 | 13 | (4) |
Fixed Maturity Securities Held At Fair Value - VIE [Member] | Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [2] | 38 | (7) | 94 | (19) |
Loans Receivable and Other Instruments at Fair Value [Member] | Variable Interest Entity [Member] | Residential Mortgage Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [2] | (3) | (3) | 40 | (79) |
Loans Receivable and Other Instruments at Fair Value [Member] | Variable Interest Entity [Member] | Corporate Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [2] | 0 | 0 | 0 | 11 |
Loan Repurchase Commitments [Member] | Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [2] | 50 | 0 | 60 | 9 |
Other Assets [Member] | Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [2] | 2 | 1 | 3 | 1 |
Medium Term Notes [Member] | Non Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [1] | (1) | 7 | (1) | 14 |
Other Liabilities [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 | [3] | 0 | 0 | (2) | (2) |
Variable Interest Entity Notes [Member] | Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [2] | $ 3 | $ 23 | $ (77) | $ 106 |
[1] | Reported within “Net gains (losses) on financial instruments at fair value and foreign exchange” on MBIA’s consolidated statements of operations. | ||||
[2] | Reported within “Net gains (losses) on financial instruments at fair value and foreign exchange-VIE” on MBIA’s consolidated statements of operations. | ||||
[3] | Reported within “Other net realized gains (losses)” on MBIA’s consolidated statements of operations. |
Fair Value Of Financial Inst_10
Fair Value Of Financial Instruments (Aggregate Fair Value And Remaining Contractual Principal Balance Outstanding On Fair Value Option) (Detail) - Variable Interest Entity [Member] - Loans Receivable [Member] - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Residential Mortgage Loans [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Loans receivable and other instruments, contractual outstanding principal | $ 109 | $ 168 |
Loans receivable and other instruments, 90 days or more past due, contractual outstanding principal | 147 | 153 |
Loans receivable and other instruments, fair value | 109 | 164 |
Loans receivable and other instruments, 90 days or more past due, fair value | 37 | 8 |
Loans receivable and other instruments, difference | 0 | 4 |
Loans receivable and other instruments, 90 days or more past due, difference | 110 | 145 |
Medium Term Notes [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Long-term debt instruments, contractual outstanding principal | 109 | 114 |
Long-term debt instruments, fair value | 106 | 102 |
Long-term debt instruments, difference | 3 | 12 |
Variable Interest Entity Notes [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Long-term debt instruments, contractual outstanding principal | 1,183 | 1,295 |
Long-term debt instruments, fair value | 472 | 480 |
Long-term debt instruments, difference | 711 | 815 |
Total Loans Receivable and Other Instruments [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Loans receivable and other instruments, contractual outstanding principal | 256 | 321 |
Loans receivable and other instruments, fair value | 146 | 172 |
Loans receivable and other instruments, difference | $ 110 | $ 149 |
Investments (Narrative) (Detail
Investments (Narrative) (Detail) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security | |
Schedule Of Investments [Line Items] | ||
Fair value of securities on deposit with various regulatory authorities | $ 11 | $ 11 |
Fair value of securities pledged as collateral | $ 317 | $ 314 |
Number of securities in unrealized loss position for a continuous 12 month period | security | 68 | 182 |
Rate that a security's fair value is below book value | 5.00% | 5.00% |
Collateral Pledged [Member] | ||
Schedule Of Investments [Line Items] | ||
Cash | $ 6 | |
Securities In Unrealized Loss Position [Member] | ||
Schedule Of Investments [Line Items] | ||
Weighted average contractual maturity period in years for securities in an unrealized loss position | 7 years | 11 years |
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 | 15 | 64 |
Investments (Amortized Cost And
Investments (Amortized Cost And Fair Value Of Available-For-Sale and Held-To-Maturity Investment Portfolios) (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Variable Interest Entity Primary Beneficiary [Member] | |||
Held To Maturity Securities [Abstract] | |||
Total held-to-maturity, amortized cost | $ 890 | $ 890 | |
Gross unrealized gains | 87 | 35 | |
Gross unrealized losses | 0 | 0 | |
Total held-to-maturity investments, fair value | 977 | 925 | |
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 | 87 | 35 | |
Gross unrealized losses | 0 | 0 | |
Total held-to-maturity investments, fair value | 977 | 925 | |
Other-Than-Temporary Impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 3,008 | 3,817 | |
Gross unrealized gains | 148 | 131 | |
Gross unrealized losses | (43) | (167) | |
Total available-for-sale, fair value | 3,113 | 3,781 | |
Other-than-temporary impairments | [1] | (33) | (26) |
Fixed Maturities [Member] | U S Treasury And Government [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 807 | 1,093 | |
Gross unrealized gains | 59 | 26 | |
Gross unrealized losses | (1) | (10) | |
Total available-for-sale, fair value | 865 | 1,109 | |
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 | 205 | 641 | |
Gross unrealized gains | 24 | 97 | |
Gross unrealized losses | 0 | (11) | |
Total available-for-sale, fair value | 229 | 727 | |
Other-than-temporary impairments | [1] | 0 | 42 |
Fixed Maturities [Member] | Foreign Governments [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 8 | 9 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Total available-for-sale, fair value | 8 | 9 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | Corporate Obligations [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 1,239 | 1,473 | |
Gross unrealized gains | 58 | 6 | |
Gross unrealized losses | (34) | (131) | |
Total available-for-sale, fair value | 1,263 | 1,348 | |
Other-than-temporary impairments | [1] | (33) | (68) |
Fixed Maturities [Member] | Residential Mortgage-Backed Agency [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 297 | 218 | |
Gross unrealized gains | 4 | 1 | |
Gross unrealized losses | (1) | (5) | |
Total available-for-sale, fair value | 300 | 214 | |
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 | 25 | 30 | |
Gross unrealized gains | 1 | 1 | |
Gross unrealized losses | (5) | (4) | |
Total available-for-sale, fair value | 21 | 27 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | Commercial Mortgage-Backed [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 23 | 53 | |
Gross unrealized gains | 1 | 0 | |
Gross unrealized losses | 0 | (2) | |
Total available-for-sale, fair value | 24 | 51 | |
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 | 129 | 122 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | (2) | (3) | |
Total available-for-sale, fair value | 127 | 119 | |
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 | 275 | 178 | |
Gross unrealized gains | 1 | 0 | |
Gross unrealized losses | 0 | (1) | |
Total available-for-sale, fair value | 276 | 177 | |
Other-than-temporary impairments | [1] | $ 0 | $ 0 |
[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. |
Investments (Distribution By Co
Investments (Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments) (Detail) - Fixed Maturities [Member] $ in Millions | Sep. 30, 2019USD ($) |
Available For Sale Securities [Abstract] | |
Due in one year or less | $ 598 |
Due after one year through five years | 496 |
Due after five years through ten years | 436 |
Due after ten years | 729 |
Mortgage-Backed and Asset-Backed | 749 |
Total Available-For-Sale, amortized cost | 3,008 |
Due in one year or less | 599 |
Due after one year through five years | 503 |
Due after five years through ten years | 423 |
Due after ten years | 840 |
Mortgage-Backed and Asset-Backed | 748 |
Total Available-For-Sale, fair value | 3,113 |
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 | 977 |
Mortgage-Backed and Asset-Backed | 0 |
Held-To-Maturity Securities Fair Value | $ 977 |
Investments (Gross Unrealized L
Investments (Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments) (Detail) - Fixed Maturities [Member] - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | $ 394 | $ 1,476 |
Less than 12 months, unrealized losses | (2) | (47) |
12 months or longer, fair value | 285 | 944 |
12 months or longer, unrealized losses | (41) | (120) |
Total available-for-sale, fair value | 679 | 2,420 |
Total available-for-sale, unrealized losses | (43) | (167) |
U S Treasury And Government [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 102 | 231 |
Less than 12 months, unrealized losses | 0 | (1) |
12 months or longer, fair value | 84 | 278 |
12 months or longer, unrealized losses | (1) | (9) |
Total available-for-sale, fair value | 186 | 509 |
Total available-for-sale, unrealized losses | (1) | (10) |
US States And Political Subdivisions [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 5 | 60 |
Less than 12 months, unrealized losses | 0 | (1) |
12 months or longer, fair value | 26 | 135 |
12 months or longer, unrealized losses | 0 | (10) |
Total available-for-sale, fair value | 31 | 195 |
Total available-for-sale, unrealized losses | 0 | (11) |
Foreign Government Debt [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 5 | 5 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 0 | 2 |
12 months or longer, unrealized losses | 0 | 0 |
Total available-for-sale, fair value | 5 | 7 |
Total available-for-sale, unrealized losses | 0 | 0 |
Corporate Obligations [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 182 | 900 |
Less than 12 months, unrealized losses | (1) | (41) |
12 months or longer, fair value | 55 | 335 |
12 months or longer, unrealized losses | (33) | (90) |
Total available-for-sale, fair value | 237 | 1,235 |
Total available-for-sale, unrealized losses | (34) | (131) |
Residential Mortgage Backed Agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 35 | 29 |
Less than 12 months, unrealized losses | (1) | (1) |
12 months or longer, fair value | 32 | 118 |
12 months or longer, unrealized losses | 0 | (4) |
Total available-for-sale, fair value | 67 | 147 |
Total available-for-sale, unrealized losses | (1) | (5) |
Residential Mortgage Backed Non Agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 0 | 2 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 11 | 13 |
12 months or longer, unrealized losses | (5) | (4) |
Total available-for-sale, fair value | 11 | 15 |
Total available-for-sale, unrealized losses | (5) | (4) |
Commercial Mortgage Backed Securities [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 6 | 24 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 0 | 21 |
12 months or longer, unrealized losses | 0 | (2) |
Total available-for-sale, fair value | 6 | 45 |
Total available-for-sale, unrealized losses | 0 | (2) |
Collateralized Debt Obligations [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 43 | 98 |
Less than 12 months, unrealized losses | 0 | (3) |
12 months or longer, fair value | 68 | 7 |
12 months or longer, unrealized losses | (2) | 0 |
Total available-for-sale, fair value | 111 | 105 |
Total available-for-sale, unrealized losses | (2) | (3) |
Other Asset Backed [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 16 | 127 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 9 | 35 |
12 months or longer, unrealized losses | 0 | (1) |
Total available-for-sale, fair value | 25 | 162 |
Total available-for-sale, unrealized losses | $ 0 | $ (1) |
Investments (Distribution Of Se
Investments (Distribution Of Securities By Percentage Of Fair Value Below Book Value By More Than 5% For A Continuous Twelve Month Period Or Longer) (Detail) - Unrealized loss position > 12 months $ in Millions | Sep. 30, 2019USD ($)security |
> 5% To 15% [Member] | |
Available For Sale Securities [Abstract] | |
Number of available-for-sale securities in unrealized loss position | security | 9 |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 19 |
Available For Sale Securities | $ 19 |
> 15% To 25% [Member] | |
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 |
> 25% To 50% [Member] | |
Available For Sale Securities [Abstract] | |
Number of available-for-sale securities in unrealized loss position | security | 2 |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 14 |
Available For Sale Securities | $ 10 |
> 50% [Member] | |
Available For Sale Securities [Abstract] | |
Number of available-for-sale securities in unrealized loss position | security | 3 |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 63 |
Available For Sale Securities | $ 30 |
Greater Than 5% [Member] | |
Available For Sale Securities [Abstract] | |
Number of available-for-sale securities in unrealized loss position | security | 15 |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 97 |
Available For Sale Securities | $ 59 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other than temporary impairment credit lossesfor available for sale securities rollforward [Abstract] | ||||
Beginning Balance | $ 74 | $ 34 | $ 37 | $ 32 |
Additions For Credit Loss Impairments Recognized In The Current Period On Securities Previously Impaired | 0 | 1 | 37 | 3 |
Ending Balance | $ 74 | $ 35 | $ 74 | $ 35 |
Investments (Securities Held In
Investments (Securities Held In Unrealized Loss Position And Insured By Financial Guarantor) (Detail) - Mortgage-backed [Member] - Mbia Corp And National [Member] - Financial Guarantee [Member] $ in Millions | Sep. 30, 2019USD ($) | [1] |
Schedule Of Investments [Line Items] | ||
Total Available-For-Sale, Fair Value | $ 11 | |
Gross unrealized losses | (5) | |
Loss and loss adjustment expense reserves | $ 19 | [2] |
[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. |
Investments (Net Realized Gains
Investments (Net Realized Gains (Losses) From Sales Of Available-For-Sale Securities) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investments [Abstract] | ||||
Proceeds from sales | $ 508 | $ 583 | $ 1,875 | $ 1,647 |
Available For Sale Securities Realized Gain Loss [Abstract] | ||||
Gross realized gains | 79 | 1 | 100 | 4 |
Gross realized losses | $ 0 | $ (2) | $ (3) | $ (15) |
Investments (Portion Of Unreali
Investments (Portion Of Unrealized Gains And Losses On Equity Investments Held) (Detail) - Equity Securities [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Gains (losses) on equity investments [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | $ 2 | $ 3 | $ 9 | $ 3 |
Gains (losses) on equity investments sold during the period [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | 0 | 0 | 1 | 1 |
Gains (losses) on equity investments still held at the end of the period [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | $ 2 | $ 3 | $ 8 | $ 2 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Detail) $ in Millions | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Derivative [Line Items] | ||
Cash collateral posted to derivative counterparties | $ 0 | $ 0 |
Securities posted as collateral to derivative counterparties | $ 210 | $ 205 |
Number of credit support annexes | 1 | 1 |
Fair value of Credit Support Annex | $ 2 | $ 2 |
Derivative Instruments (Credit
Derivative Instruments (Credit Derivatives Sold) (Detail) - Insurance Operations [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Derivative notional amount | $ 1,856 | $ 2,503 |
Total fair value of credit derivatives | $ (12) | $ (35) |
Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Weighted average remaining expected maturity | 3 months 18 days | 1 year |
Derivative notional amount | $ 34 | $ 70 |
Total fair value of credit derivatives | $ (10) | $ (33) |
Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Weighted average remaining expected maturity | 14 years 9 months 18 days | 15 years 8 months 12 days |
Derivative notional amount | $ 1,822 | $ 2,433 |
Total fair value of credit derivatives | (2) | (2) |
Credit Rating Aaa [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | 0 |
Total fair value of credit derivatives | 0 | 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 | 0 |
Credit Rating Aa [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 66 | 74 |
Total fair value of credit derivatives | 0 | 0 |
Credit Rating Aa [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | 0 |
Credit Rating Aa [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 66 | 74 |
Credit Rating A [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 1,295 | 1,463 |
Total fair value of credit derivatives | (1) | (1) |
Credit Rating A [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | 0 |
Credit Rating A [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 1,295 | 1,463 |
Credit Rating Bbb [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 461 | 896 |
Total fair value of credit derivatives | (1) | (1) |
Credit Rating Bbb [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | 0 |
Credit Rating Bbb [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 461 | 896 |
Credit Rating Below Investment Grade [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 34 | 70 |
Total fair value of credit derivatives | (10) | (33) |
Credit Rating Below Investment Grade [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 34 | 70 |
Credit Rating Below Investment Grade [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 0 | $ 0 |
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) - Derivative Instrument [Member] - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Derivative notional amount | $ 2,628 | $ 3,619 | |
Derivative Assets, Not designated, Fair Value | [1] | 10 | 18 |
Derivative Liabilities, Not designated, Fair Value | [1] | (211) | (212) |
Interest Rate Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 440 | 712 | |
Credit Default Swap [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 34 | 70 | |
Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 1,822 | 2,433 | |
Interest Rate Swaps Embedded [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 227 | 293 | |
Currency swaps-VIE [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 56 | 62 | |
All Other [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 49 | 49 | |
Derivative Liabilities [Member] | Interest Rate Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | (152) | (157) |
Derivative Liabilities [Member] | Credit Default Swap [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | (10) | (33) |
Derivative Liabilities [Member] | Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | (2) | (2) |
Derivative Liabilities [Member] | All Other [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | (30) | (7) |
Medium-term Notes [Member] | Interest Rate Swaps Embedded [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | [1] | 0 | |
Derivative Liabilities, Not designated, Fair Value | [1] | (17) | (13) |
Other Assets [Member] | Interest Rate Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | [1] | 2 | 2 |
Other Assets [Member] | Credit Default Swap [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | [1] | 0 | |
Other Assets [Member] | Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | [1] | 0 | |
Other Assets [Member] | All Other [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | [1] | 0 | |
Other Assets V I E [Member] | Currency swaps-VIE [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | [1] | 8 | $ 16 |
Derivative Liabilities V I E [Member] | Currency swaps-VIE [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | $ 0 | |
[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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | $ (48) | $ 2 | $ (104) | $ 11 |
Unrealized Gains Losses On Insured Derivatives [Member] | Credit Default Swap [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | 9 | 4 | 23 | 36 |
Realized Gains Losses And Other Settlements On Insured Derivatives [Member] | Credit Default Swap [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | (10) | (5) | (11) | (49) |
Net gains (losses) on financial instruments at fair value and foreign exchange [Member | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | (30) | 7 | (85) | 33 |
Net gains (losses) on financial instruments at fair value and foreign exchange [Member | All Other [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | (14) | (4) | (23) | (4) |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE [Member] | Currency Swaps Vie [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | $ (3) | $ 0 | $ (8) | $ (5) |
Debt (Narrative) (Detail)
Debt (Narrative) (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Refinanced Facility [Member] | |
Senior notes, aggregate principal amount | $ 278 |
Proceeds from issuance of senior notes | $ 54 |
Debt Instrument, Maturity Date | Jan. 20, 2022 |
Debt instrument interest rate | 12.00% |
Debt issuance cost paid | $ 6 |
Refinanced Facility [Member] | Expenses Of Consolidated Variable Interest Entities [Member] | |
Debt issuance cost expensed | 3 |
Net gains (losses) on extinguishment of debt | $ 1 |
6.400% Senior Notes due 2022 [Member] | |
Debt instrument interest rate | 6.40% |
Long term debt redemption amount | $ 150 |
Percentage of debt redemption | 100.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Non Variable Interest Entities [Line Items] | ||
NOL carryforward | $ 2,500 | |
Alternative minimum tax credit carryforward - Other assets | 26 | |
Foreign tax credit | 62 | |
Unrecognized Tax Benefits | 0 | $ 0 |
Valuation allowance on net deferred tax asset | $ 832 | $ 834 |
Income Taxes (Income Taxes And
Income Taxes (Income Taxes And Related Effective Tax Rates) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disclosure Income Taxes Income Taxes And Related Effective Tax Rates [Abstract] | ||||
Income (loss) before income taxes | $ 89 | $ (45) | $ (137) | $ (287) |
Provision (benefit) for income taxes | $ 18 | $ 0 | $ (21) | $ 2 |
Effective tax rate | 20.20% | 0.00% | 15.30% | (0.70%) |
Business Segments (Narrative) (
Business Segments (Narrative) (Detail) | 9 Months Ended |
Sep. 30, 2019segments | |
Disclosure Business Segments Summary Of Companys Segment Results [Abstract] | |
Number of business segments | 3 |
Business Segments (Summary Of C
Business Segments (Summary Of Company's Segment Results) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | ||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | $ 47 | $ 110 | $ 155 | $ 257 | |
Revenues of consolidated VIEs | 82 | (12) | 80 | (72) | ||
Inter-segment revenues | [2] | 0 | 0 | 0 | 0 | |
Total revenues | 172 | 105 | 252 | 190 | ||
Operating | 26 | 27 | 77 | 74 | ||
Expenses of consolidated VIEs | 20 | 25 | 69 | 71 | ||
Inter-segment expenses | [2] | 0 | 0 | 0 | 0 | |
Total expenses | 83 | 150 | 389 | 477 | ||
Income (loss) before income taxes | 89 | (45) | (137) | (287) | ||
Identifiable assets | 7,606 | 8,393 | 7,606 | 8,393 | $ 8,107 | |
Non Variable Interest Entity [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net change in fair value of insured derivatives | 0 | (1) | 13 | (13) | ||
Net gains (losses) on financial instruments at fair value and foreign exchange | 44 | 5 | 40 | 18 | ||
Net investment losses related to other-than-temporary impairments | 0 | (1) | (37) | (3) | ||
Net gains (losses) on extinguishment of debt | (1) | 3 | (1) | 3 | ||
Other net realized gains (losses) | 0 | 1 | 2 | 0 | ||
Losses and loss adjustment | (13) | 46 | 89 | 177 | ||
Interest | 50 | 52 | 154 | 155 | ||
Operating Segments [Member] | U S Public Finance Insurance [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | 30 | 45 | 106 | 139 | |
Revenues of consolidated VIEs | 32 | 0 | 38 | 0 | ||
Inter-segment revenues | [2] | 7 | 7 | 22 | 20 | |
Total revenues | 147 | 52 | 265 | 143 | ||
Operating | 4 | 5 | 8 | 14 | ||
Expenses of consolidated VIEs | 0 | 0 | 0 | 0 | ||
Inter-segment expenses | [2] | 14 | 10 | 41 | 34 | |
Total expenses | (72) | 63 | 15 | 232 | ||
Income (loss) before income taxes | 219 | (11) | 250 | (89) | ||
Identifiable assets | 4,271 | 4,453 | 4,271 | 4,453 | ||
Operating Segments [Member] | U S Public Finance Insurance [Member] | Non Variable Interest Entity [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net change in fair value of insured derivatives | 0 | 0 | 0 | |||
Net gains (losses) on financial instruments at fair value and foreign exchange | 78 | 1 | 135 | (13) | ||
Net investment losses related to other-than-temporary impairments | (1) | (37) | (3) | |||
Net gains (losses) on extinguishment of debt | 0 | 0 | 0 | 0 | ||
Other net realized gains (losses) | 0 | 0 | 1 | 0 | ||
Losses and loss adjustment | (90) | 48 | (34) | 184 | ||
Interest | 0 | 0 | 0 | 0 | ||
Operating Segments [Member] | Corporate Operations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | 6 | 7 | 21 | 20 | |
Revenues of consolidated VIEs | 0 | 0 | 0 | 0 | ||
Inter-segment revenues | [2] | 15 | 11 | 48 | 36 | |
Total revenues | (1) | 38 | (5) | 105 | ||
Operating | 15 | 13 | 53 | 39 | ||
Expenses of consolidated VIEs | 0 | 0 | 0 | 0 | ||
Inter-segment expenses | [2] | 6 | 5 | 17 | 14 | |
Total expenses | 38 | 38 | 126 | 113 | ||
Income (loss) before income taxes | (39) | 0 | (131) | (8) | ||
Identifiable assets | 939 | 1,062 | 939 | 1,062 | ||
Operating Segments [Member] | Corporate Operations [Member] | Non Variable Interest Entity [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net change in fair value of insured derivatives | 0 | 0 | 0 | |||
Net gains (losses) on financial instruments at fair value and foreign exchange | (20) | 17 | (71) | 48 | ||
Net investment losses related to other-than-temporary impairments | 0 | 0 | 0 | |||
Net gains (losses) on extinguishment of debt | (1) | 3 | (1) | 3 | ||
Other net realized gains (losses) | (1) | 0 | (2) | (2) | ||
Losses and loss adjustment | 0 | 0 | 0 | 0 | ||
Interest | 17 | 20 | 56 | 60 | ||
Operating Segments [Member] | International And Structured Finance Insurance [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | 11 | 58 | 28 | 98 | |
Revenues of consolidated VIEs | 50 | (12) | 41 | (72) | ||
Inter-segment revenues | [2] | 6 | 6 | 15 | 18 | |
Total revenues | 54 | 39 | 76 | 16 | ||
Operating | 7 | 9 | 16 | 21 | ||
Expenses of consolidated VIEs | 20 | 25 | 69 | 71 | ||
Inter-segment expenses | [2] | 8 | 9 | 26 | 27 | |
Total expenses | 145 | 73 | 332 | 207 | ||
Income (loss) before income taxes | (91) | (34) | (256) | (191) | ||
Identifiable assets | 4,678 | 5,058 | 4,678 | 5,058 | ||
Operating Segments [Member] | International And Structured Finance Insurance [Member] | Non Variable Interest Entity [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net change in fair value of insured derivatives | (1) | 13 | (13) | |||
Net gains (losses) on financial instruments at fair value and foreign exchange | (14) | (13) | (24) | (17) | ||
Net investment losses related to other-than-temporary impairments | 0 | 0 | 0 | |||
Net gains (losses) on extinguishment of debt | 0 | 0 | 0 | 0 | ||
Other net realized gains (losses) | 1 | 1 | 3 | 2 | ||
Losses and loss adjustment | 77 | (2) | 123 | (7) | ||
Interest | 33 | 32 | 98 | 95 | ||
Intersegment Elimination [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | 0 | 0 | 0 | 0 | |
Revenues of consolidated VIEs | 0 | 0 | 1 | 0 | ||
Inter-segment revenues | [2] | (28) | (24) | (85) | (74) | |
Total revenues | (28) | (24) | (84) | (74) | ||
Operating | 0 | 0 | 0 | 0 | ||
Expenses of consolidated VIEs | 0 | 0 | 0 | 0 | ||
Inter-segment expenses | [2] | (28) | (24) | (84) | (75) | |
Total expenses | (28) | (24) | (84) | (75) | ||
Income (loss) before income taxes | 0 | 0 | 0 | 1 | ||
Identifiable assets | [3] | (2,282) | (2,180) | (2,282) | (2,180) | |
Intersegment Elimination [Member] | Non Variable Interest Entity [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net change in fair value of insured derivatives | 0 | 0 | 0 | |||
Net gains (losses) on financial instruments at fair value and foreign exchange | 0 | 0 | 0 | 0 | ||
Net investment losses related to other-than-temporary impairments | 0 | 0 | 0 | |||
Net gains (losses) on extinguishment of debt | 0 | 0 | 0 | 0 | ||
Other net realized gains (losses) | 0 | 0 | 0 | 0 | ||
Losses and loss adjustment | 0 | 0 | 0 | 0 | ||
Interest | $ 0 | $ 0 | $ 0 | $ 0 | ||
[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 primarily of intercompany reinsurance balances and repurchase agreements. |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Shares [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1.1 | 0.9 | 1 | 0.8 |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Basic And Diluted Earnings Per Share) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic earnings per share: | ||||
Net income (loss) | $ 71 | $ (45) | $ (116) | $ (289) |
Less: undistributed earnings allocated to participating securities | 4 | |||
Net income (loss) available to common shareholders | $ 67 | $ (45) | $ (116) | $ (289) |
Basic weighted average shares | 78,686,542 | 89,490,267 | 82,813,523 | 89,075,892 |
Net income (loss) per basic common share | $ 0.86 | $ (0.50) | $ (1.40) | $ (3.24) |
Diluted earnings per share: | ||||
Net income (loss) | $ 71 | $ (45) | $ (116) | $ (289) |
Less: undistributed earnings allocated to participating securities | 4 | |||
Net income (loss) available to common shareholders | $ 67 | $ (45) | $ (116) | $ (289) |
Diluted weighted average shares | 78,686,542 | 89,490,267 | 82,813,523 | 89,075,892 |
Net income (loss) per diluted common share | $ 0.86 | $ (0.50) | $ (1.40) | $ (3.24) |
Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect | 4,500,000 | 1,400,000 | 4,500,000 | 1,400,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Changes In The Components Of AOCI) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Beginning balance | $ (156) | |||
Other comprehensive income (loss) before reclassification | 107 | |||
Amounts reclassified from AOCI | 6 | |||
Total other comprehensive income (loss) | $ (39) | $ 49 | 113 | $ (20) |
Ending balance | (43) | (43) | ||
Unrealized gains (losses) on AFS, net [Member] | ||||
Beginning balance | (39) | |||
Other comprehensive income (loss) before reclassification | 133 | |||
Amounts reclassified from AOCI | (20) | |||
Total other comprehensive income (loss) | 113 | |||
Ending balance | 74 | 74 | ||
Foreign currency translation, net [Member] | ||||
Beginning balance | (7) | |||
Other comprehensive income (loss) before reclassification | 1 | |||
Amounts reclassified from AOCI | 0 | |||
Total other comprehensive income (loss) | 1 | |||
Ending balance | (6) | (6) | ||
Instrument-specific credit risk of liabilities measured at fair value, net [Member] | ||||
Beginning balance | (110) | |||
Other comprehensive income (loss) before reclassification | (27) | |||
Amounts reclassified from AOCI | 26 | |||
Total other comprehensive income (loss) | (1) | |||
Ending balance | $ (111) | $ (111) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Details Of The Reclassification From AOCI) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income (loss) before income taxes | $ 89 | $ (45) | $ (137) | $ (287) |
Net income (loss) | 71 | (45) | (116) | (289) |
Amounts reclassified from AOCI [Member] | ||||
Net income (loss) | 31 | 0 | (6) | 0 |
Unrealized gains (losses) on AFS, net [Member] | Amounts reclassified from AOCI [Member] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | (7) | 2 | 16 | 4 |
Net investment losses related to OTTI | 42 | (2) | 5 | (3) |
Net investment income | (1) | 0 | (1) | (1) |
Income (loss) before income taxes | 34 | 0 | 20 | 0 |
Instrument-specific credit risk of liabilities measured at fair value, net [Member] | Amounts reclassified from AOCI [Member] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | $ (3) | $ 0 | $ (26) | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Detail) $ in Millions | Jul. 09, 2019USD ($) | Sep. 30, 2019Lawsuits |
Commitments And Contingencies [Line Items] | ||
Other material lawsuits pending | Lawsuits | 0 | |
PREPA minimum settlement percentage | 60.00% | |
PREPA Bondholders in RSA | 90.00% | |
Fuel Line Lenders [Member] | ||
Commitments And Contingencies [Line Items] | ||
PREPA working capital | $ | $ 700 |
Commitments and Contingencies_3
Commitments and Contingencies (Lease Disclosures) (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 |
Lessee Disclosure [Abstract] | ||
Operating lease right of use asset | $ 22 | $ 23 |
Operating lease liability | $ 22 | |
Operating lease weighted average remaining lease term | 8 years 2 months 12 days | |
Operating lease weighted average discount rate percent | 7.50% | |
Operating leases future minimum payments due | $ 33 |