Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 22, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000814585 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Trading Symbol | MBI | ||
Entity Registrant Name | MBIA INC | ||
Entity Filer Category | Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 404,974,161 | ||
Entity Common Stock, Shares Outstanding | 53,726,305 | ||
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 | ||
ICFR Auditor Attestation Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Cash and cash equivalents | $ 167 | $ 83 |
Premiums receivable (net of allowance for credit losses $5 and $—) | 216 | 249 |
Total assets | 5,751 | 7,284 |
Liabilities: | ||
Total liabilities | 5,602 | 6,445 |
Commitments and contingencies (Refer to Note 19) | ||
Equity: | ||
Preferred stock, par value $1 per share; authorized shares—10,000,000; issued and outstanding—none | 0 | 0 |
Common stock, par value $1 per share; authorized shares—400,000,000; issued shares—283,186,115 and 283,433,401 | 283 | 283 |
Additional paid-in capital | 2,962 | 2,999 |
Retained earnings (deficit) | (13) | 607 |
Accumulated other comprehensive income (loss), net of tax of $8 and $8 | 115 | (2) |
Treasury stock, at cost—229,508,967 and 204,000,108 shares | (3,211) | (3,061) |
Total shareholders' equity of MBIA Inc. | 136 | 826 |
Preferred stock of subsidiary | 13 | 13 |
Total equity | 149 | 839 |
Total liabilities and equity | 5,751 | 7,284 |
Non Variable Interest Entity [Member] | ||
Investments: | ||
Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $2,078 and $2,705) | 2,257 | 2,820 |
Investments carried at fair value | 196 | 209 |
Investments pledged as collateral, at fair value (amortized cost $6 and $15) | 1 | 10 |
Short-term investments, at fair value (amortized cost $281 and $423) | 282 | 423 |
Total investments | 2,736 | 3,462 |
Cash and cash equivalents | 158 | 75 |
Premiums receivable (net of allowance for credit losses $5 and $—) | 216 | 249 |
Deferred acquisition costs | 50 | 60 |
Insurance loss recoverable | 1,677 | 1,694 |
Other assets | 84 | 115 |
Liabilities: | ||
Unearned premium revenue | 405 | 482 |
Loss and loss adjustment expense reserves | 990 | 901 |
Long-term debt | 2,229 | 2,228 |
Medium-term notes (includes financial instruments carried at fair value of $110 and $108) | 710 | 680 |
Investment agreements | 269 | 304 |
Derivative liabilities | 215 | 175 |
Other liabilities | 161 | 136 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Investments: | ||
Investments carried at fair value | 77 | 83 |
Other assets | 20 | 26 |
Cash | 9 | 8 |
Investments held-to-maturity, at amortized cost (fair value $— and $892) | 0 | 890 |
Loans receivable at fair value | 120 | 136 |
Loan repurchase commitments | 604 | 486 |
Total assets | 830 | 1,600 |
Liabilities: | ||
Variable interest entity notes (includes financial instruments carried at fair value of $350 and $403) | 623 | 1,539 |
Total liabilities | $ 623 | $ 1,500 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, authorized shares | 400,000,000 | 400,000,000 |
Common stock, issued shares | 283,186,115 | 283,433,401 |
Accumulated other comprehensive income (loss), taxes | $ 8 | $ 8 |
Treasury stock, shares | 229,508,967 | 204,000,108 |
Non Variable Interest Entity [Member] | ||
Fixed-maturity securities held as available-for-sale, amortized cost | $ 2,078 | $ 2,705 |
Investments pledged as collateral, amortized cost | 6 | 15 |
Short-term investments, amortized cost | 281 | 423 |
Premiums receivable (net of allowance for credit losses) | 5 | 0 |
Medium-term notes, financial instruments carried at fair value | 110 | 108 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Investments held-to-maturity, fair value | 0 | 892 |
Variable interest entity notes, financial instruments carried at fair value | $ 350 | $ 403 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Change in fair value of insured derivatives: | ||||
Unrealized gains (losses) on insured derivatives | $ 7 | $ 25 | $ 31 | |
Net change in fair value of insured derivatives | 6 | 15 | (25) | |
Net gains (losses) on financial instruments at fair value and foreign exchange | (38) | 52 | (17) | |
Net investment losses related to other-than-temporary impairments: | ||||
Net investment losses related to other-than-temporary impairments | (67) | (5) | ||
Net gains (losses) on extinguishment of debt | (1) | 3 | ||
Other net realized gains (losses) | 0 | 4 | 0 | |
Total revenues | 282 | 280 | 162 | |
Expenses: | ||||
Losses and loss adjustment | 530 | 242 | 63 | |
Interest | 178 | 201 | 206 | |
Total expenses | 860 | 637 | 458 | |
Income (loss) before income taxes | (578) | (357) | (296) | |
Provision (benefit) for income taxes | 0 | 2 | 0 | |
Net income (loss) | $ (578) | $ (359) | $ (296) | |
Net income (loss) per common share: | ||||
Basic | $ (9.78) | $ (4.43) | $ (3.33) | |
Diluted | $ (9.78) | $ (4.43) | $ (3.33) | |
Weighted average number of common shares outstanding: | ||||
Basic | [1] | 59,071,843 | 81,014,285 | 89,013,711 |
Diluted | 59,071,843 | 81,014,285 | 89,013,711 | |
Non Variable Interest Entity [Member] | ||||
Premiums earned: | ||||
Scheduled premiums earned | $ 59 | $ 68 | $ 114 | |
Refunding premiums earned | 14 | 17 | 48 | |
Premiums earned (net of ceded premiums of $5, $5 and $5) | 73 | 85 | 162 | |
Net investment income | 76 | 114 | 130 | |
Fees and reimbursements | 2 | 1 | 25 | |
Change in fair value of insured derivatives: | ||||
Realized gains (losses) and other settlements on insured derivatives | (1) | (10) | (56) | |
Unrealized gains (losses) on insured derivatives | 7 | 25 | 31 | |
Net change in fair value of insured derivatives | 6 | 15 | (25) | |
Net gains (losses) on financial instruments at fair value and foreign exchange | (38) | 52 | (17) | |
Net investment losses related to other-than-temporary impairments: | ||||
Other-than-temporary impairments recognized in accumulated other comprehensive income (loss) | 0 | (67) | (5) | |
Net investment losses related to other-than-temporary impairments | 0 | (67) | (5) | |
Net gains (losses) on extinguishment of debt | 0 | (1) | 3 | |
Other net realized gains (losses) | 0 | 4 | 0 | |
Expenses: | ||||
Losses and loss adjustment | 530 | 242 | 63 | |
Amortization of deferred acquisition costs | 10 | 11 | 20 | |
Operating | 87 | 92 | 71 | |
Interest | 178 | 201 | 206 | |
Variable Interest Entity Primary Beneficiary [Member] | ||||
Premiums earned: | ||||
Net investment income | 18 | 34 | 35 | |
Change in fair value of insured derivatives: | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 108 | 105 | 25 | |
Net investment losses related to other-than-temporary impairments: | ||||
Other net realized gains (losses) | 37 | (62) | (171) | |
Expenses: | ||||
Operating | 5 | 9 | 11 | |
Interest | $ 50 | $ 82 | $ 87 | |
[1] | Includes 0.9 million, 1.0 million and 0.8 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the years ended December 31, 2020, 2019 and 2018, respectively. |
Consolidated Statements Of Op_2
Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Guarantee Insurance Segment [Member] | |||
Ceded premiums earned | $ 5 | $ 5 | $ 5 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statements of Comprehensive Income (Loss) | |||
Net income (loss) | $ (578) | $ (359) | $ (296) |
Available-for-sale securities with no credit losses: | |||
Unrealized gains (losses) arising during the period | 83 | 139 | (60) |
Provision (benefit) for income taxes | 0 | 0 | 5 |
Total | 83 | 139 | (65) |
Reclassification adjustments for (gains) losses included in net income (loss) | (19) | (13) | (5) |
Available-for-sale securities with credit losses: | |||
Unrealized gains (losses) arising during the period | 0 | 0 | 41 |
Reclassification adjustments for (gains) losses included in net income (loss) | 0 | 25 | 5 |
Total | 0 | 25 | 5 |
Foreign currency translation: | |||
Foreign currency translation gains (losses) | (3) | 0 | 2 |
Total | (3) | 0 | 2 |
Instrument-specific credit risk of liabilities measured at fair value: | |||
Unrealized gains (losses) arising during the period | 50 | (25) | 52 |
Reclassification adjustments for (gains) losses included in net income (loss) | 6 | 28 | 0 |
Total other comprehensive income (loss) | 117 | 154 | 30 |
Comprehensive income (loss) | $ (461) | $ (205) | $ (266) |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total Shareholders' Equity Of MBIA Inc. [Member] | Preferred Stock [Member] |
Total equity balance at Dec. 31, 2017 | $ 284 | $ 3,171 | $ 1,095 | $ (19) | $ (3,118) | $ 1,413 | $ 12 | |
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 2016-13 [Member] | 0 | |||||||
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) | $ (296) | (296) | ||||||
Other comprehensive income (loss) | $ 30 | 30 | ||||||
Treasury shares issued for warrant exercises | (21) | $ 34 | ||||||
Treasury shares issued for warrant exercises (in shares) | 1,277,620 | |||||||
Treasury shares acquired under share repurchase program | $ (48) | |||||||
Treasury shares acquired under share repurchase program (in shares) | (5,800,000) | (5,842,567) | ||||||
Share-based compensation | (125) | $ 132 | ||||||
Share-based compensation (in shares) | (92,284) | 2,994,497 | ||||||
Period change | $ 0 | (294) | 1 | |||||
Total equity balance at Dec. 31, 2018 | $ 1,132 | $ 284 | 3,025 | 966 | (156) | $ (3,000) | 1,119 | $ 13 |
Balance (in common stock shares) at Dec. 31, 2018 | 283,625,689 | |||||||
Balance (in treasury stock shares) at Dec. 31, 2018 | (193,803,976) | |||||||
Balance (in preferred stock shares) at Dec. 31, 2018 | 1,315 | |||||||
Cumulative effect of prospective application of new accounting principle | ASU 2016-13 [Member] | 0 | |||||||
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) | (359) | (359) | ||||||
Other comprehensive income (loss) | $ 154 | 154 | ||||||
Treasury shares issued for warrant exercises | 0 | $ 0 | ||||||
Treasury shares issued for warrant exercises (in shares) | 0 | |||||||
Treasury shares acquired under share repurchase program | $ (101) | |||||||
Treasury shares acquired under share repurchase program (in shares) | (11,100,000) | (11,098,995) | ||||||
Share-based compensation | (26) | $ 40 | ||||||
Share-based compensation (in shares) | (192,288) | 902,863 | ||||||
Period change | $ (1) | (293) | $ 0 | |||||
Total equity balance at Dec. 31, 2019 | $ 839 | $ 283 | 2,999 | 607 | (2) | $ (3,061) | 826 | $ 13 |
Balance (in common stock shares) at Dec. 31, 2019 | 283,433,401 | 283,433,401 | ||||||
Balance (in treasury stock shares) at Dec. 31, 2019 | (204,000,108) | (204,000,108) | ||||||
Balance (in preferred stock shares) at Dec. 31, 2019 | 0 | 1,315 | ||||||
Cumulative effect of prospective application of new accounting principle | ASU 2016-13 [Member] | (42) | |||||||
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) | $ (578) | (578) | ||||||
Other comprehensive income (loss) | $ 117 | 117 | ||||||
Treasury shares issued for warrant exercises | 0 | $ 0 | ||||||
Treasury shares issued for warrant exercises (in shares) | 0 | |||||||
Treasury shares acquired under share repurchase program | $ (198) | |||||||
Treasury shares acquired under share repurchase program (in shares) | (26,400,000) | (26,430,768) | ||||||
Share-based compensation | (37) | $ 48 | ||||||
Share-based compensation (in shares) | (247,286) | 921,909 | ||||||
Period change | $ 0 | (690) | $ 0 | |||||
Total equity balance at Dec. 31, 2020 | $ 149 | $ 283 | $ 2,962 | $ (13) | $ 115 | $ (3,211) | $ 136 | $ 13 |
Balance (in common stock shares) at Dec. 31, 2020 | 283,186,115 | 283,186,115 | ||||||
Balance (in treasury stock shares) at Dec. 31, 2020 | (229,508,967) | (229,508,967) | ||||||
Balance (in preferred stock shares) at Dec. 31, 2020 | 0 | 1,315 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Premiums, fees and reimbursements received | $ 28 | $ 47 | $ 86 |
Investment income received | 118 | 176 | 205 |
Insured derivative commutations and losses paid | (1) | (11) | (56) |
Financial guarantee losses and loss adjustment expenses paid | (475) | (489) | (385) |
Proceeds from recoveries and reinsurance | 84 | 155 | 61 |
Operating and employee related expenses paid | (73) | (77) | (83) |
Interest paid, net of interest converted to principal | (84) | (180) | (146) |
Income taxes (paid) received | 13 | 11 | (1) |
Net cash provided (used) by operating activities | (390) | (368) | (319) |
Cash flows from investing activities: | |||
Purchases of available-for-sale investments | (1,133) | (2,140) | (2,265) |
Sales of available-for-sale investments | 1,095 | 2,195 | 2,117 |
Paydowns and maturities of available-for-sale investments | 724 | 857 | 329 |
Purchases of investments at fair value | (179) | (151) | (189) |
Sales, paydowns and maturities of investments at fair value | 198 | 617 | 212 |
Sales, paydowns and maturities (purchases) of short-term investments, net | 143 | (157) | 420 |
Sales, paydowns and maturities of held-to-maturity investments | 890 | 0 | 0 |
Paydowns and maturities of loans receivable and other instruments at fair value | 16 | 74 | 614 |
Consolidation of variable interest entities | 0 | 72 | 0 |
Deconsolidation of variable interest entities | 0 | (2) | (7) |
(Payments) proceeds for derivative settlements | (16) | (98) | (24) |
Capital expenditures | 0 | 0 | (1) |
Net cash provided (used) by investing activities | 1,738 | 1,267 | 1,206 |
Cash flows from financing activities: | |||
Proceeds from investment agreements | 12 | 15 | 12 |
Principal paydowns of investment agreements | (48) | (25) | (37) |
Principal paydowns of medium-term notes | 0 | (57) | (85) |
Principal paydowns of variable interest entity notes | (914) | (765) | (598) |
Principal paydowns of long-term debt | (115) | (150) | 0 |
Purchases of treasury stock | (200) | (106) | (44) |
Other financing | 0 | (8) | 0 |
Net cash provided (used) by financing activities | (1,265) | (1,096) | (752) |
Effect of exchange rate changes on cash and cash equivalents | 1 | 0 | (1) |
Net increase (decrease) in cash and cash equivalents | 84 | (197) | 134 |
Cash and cash equivalents—beginning of year | 83 | 280 | 146 |
Cash and cash equivalents—end of year | 167 | 83 | 280 |
Reconciliation of net income (loss) to net cash provided (used) by operating activities: | |||
Net income (loss) | (578) | (359) | (296) |
Change in: | |||
Premiums receivable | 29 | 62 | 60 |
Deferred acquisition costs | 10 | 12 | 21 |
Accrued investment income | 6 | 20 | 8 |
Unearned premium revenue | (77) | (105) | (165) |
Loss and loss adjustment expense reserves | 86 | 0 | (46) |
Insurance loss recoverable | 16 | (99) | (213) |
Accrued interest payable | 133 | 106 | 157 |
Accrued expenses | 34 | 12 | (9) |
Net investment losses related to other-than-temporary impairments | 0 | 67 | 5 |
Unrealized (gains) losses on insured derivatives | (7) | (25) | (31) |
Net (gains) losses on financial instruments at fair value and foreign exchange | (70) | (157) | (8) |
Other net realized (gains) losses | (37) | 58 | 171 |
Deferred income tax provision (benefit) | 12 | 13 | 0 |
Interest on variable interest entities, net | 6 | (3) | 17 |
Other operating | 47 | 30 | 10 |
Total adjustments to net income (loss) | 188 | (9) | (23) |
Net cash provided (used) by operating activities | $ (390) | $ (368) | $ (319) |
Business Developments and Risks
Business Developments and Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2020 | |
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 subsidiary (“MBIA Corp.”). Refer to “Note 12: Business Segments” for further information about the Company’s operating segments. Business Developments Puerto Rico During 2020, 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 $391 million . On January , , Puerto Rico also defaulted on scheduled debt service for National insured bonds and National paid gross claim payments in the aggregate of $ million . As of December , , National had $ billion of debt service 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 “Oversight Board”). The Rule 9019 hearing to approve the RSA has been delayed several times, and most recently was adjourned due to the outbreak of the novel coronavirus COVID-19 (“COVID-19”) until further notice. The debt restructuring contemplated by the RSA will not be effective until (i) confirmation of a plan of adjustment under the Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”), (ii) negotiation and In addition, the restructuring the RSA contemplates has received criticism from various parties including members of the Puerto Rico government and other stakeholders. This opposition could adversely impact the ability of the Oversight Board and RSA Parties to obtain final approval of the RSA. GO PSA On June 17, 2019, the Oversight Board announced it had reached a plan support agreement (“PSA”) with certain Commonwealth General Obligation (“GO”) bondholders and guaranteed Puerto Rico Buildings Authority (“PBA”) bondholders on a framework for a plan of adjustment to resolve $35.0 billion worth of debt and unsecured claims against the Commonwealth. On February 9, 2020, the Oversight Board posted an amended PSA. National and the other monolines were not parties to the amended PSA. On February 10, 2021, following several months of Court recommend mediation, the Oversight Board filed a motion stating it had an agreement in principle with certain PSA parties representing approximately $7 billion in GO and PBA Bonds, and requested until March 8, 2021 to file an amended plan. The Court approved the request. On February 22, 2021, National agreed to join a revised PSA, dated as of February 22, 2021 (the “2021 PSA”), among the Oversight Board, certain holders of GO Bonds and PBA Bonds, Assured Guaranty Corp. and Assured Guaranty Municipal Corp, and Syncora Guarantee Inc. in connection with the GO and PBA Title III cases. The 2021 PSA provides that, among other things, National shall receive a pro rata share of allocable cash, newly issued General Obligation bonds, a contingent value instrument and certain fees. National has the right to unilaterally terminate its participation in the 2021 PSA on or prior to March 31, 2021. The 2021 PSA contemplates a plan becoming effective on or before December 15, 2021. In the event that National does not terminate its participation in the 2021 PSA on or prior to March 31, 2021, the Oversight Board and National shall jointly request the entry of an order in the Title III court staying National’s actions to lift the automatic stay in the GO and HTA cases and to appoint a trustee in the HTA Title III case pursuant to Section 926, both currently before the First Circuit Court of Appeals, together with other actions related to the clawback of HTA funds from the Commonwealth, and National shall take no further action with respect to those proceedings subject to the Commonwealth plan becoming effective. On October 5, 2020, National filed a motion seeking entry of an order directing an investigation into whether certain hedge funds violated the Court’s orders by trading in the debtors’ securities, including GO bonds and PBA bonds, during the Title III mediation process. On October 28, 2020, the Court heard argument and denied National’s motion. Credit Suisse In November of 2020, the court overseeing MBIA Corp.’s litigation against Credit Suisse Securities (USA) LLC and DLJ Mortgage Capital, Inc. (collectively, “Credit Suisse”), issued a decision declaring that MBIA Corp. had succeeded at trial in establishing that a majority of the loans in the HEMT 2007-2 RMBS transaction sponsored by Credit Suisse were ineligible. In January of 2021, the Court issued an order declaring that Credit Suisse was liable to MBIA Corp. for approximately $604 million in damages. On February 9, 2021, the parties to the litigation entered into a settlement agreement pursuant to which Credit Suisse paid MBIA Corp. $600 million and on February 11, 2021, the court entered an order dismissing the case. Refer to “Note 6: Loss and Loss Adjustment Expense Reserves” for a discussion of the Company’s Credit Suisse put-back claims. Risks and Uncertainties The Company’s financial statements include estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The outcome of certain significant risks and uncertainties could cause the Company to revise its estimates and assumptions or could cause actual results to differ materially from the Company’s estimates. The discussion below highlights the significant risks and uncertainties that could have a material effect on the Company’s financial statements and business objectives in future periods. COVID-19 COVID-19, a respiratory disease caused by a new strain of coronavirus, was declared a pandemic by the World Health Organization in March of 2020 and continues to affect a wide range of economic activities, as well as domestic and global business and financial markets. In December of 2020, the U.S. Food and Drug Administration approved the distribution of COVID-19 vaccines that, once widely adopted and utilized, may materially reduce the impact of COVID-19 going forward, although the impact of the virus including certain new strains remain uncertain. The impact, scope and duration of any new strains of the virus, and the ability to successfully distribute the vaccines, remain largely unknown. The attendant governmental policy and social responses, and economic and financial consequences, continue to be the subject of considerable attention and development. The Company continues to perform all of its traditional operations, including surveilling and, as necessary, remediating, the credits in its insured portfolios. Insured portfolios The Company continues to regularly assess the financial impact of the pandemic on its operating insurance companies’ overall insured portfolios. It remains challenging to comprehensively quantify, or account for the impact of the outbreak on most of the specific credits within the Company’s insured portfolios, due to, in part, challenges in determining whether and to what extent the underlying credits will be able or willing to continue to meet their debt service obligations or avoid long term impairment in this environment. Adverse developments on macroeconomic factors resulting from the spread of COVID-19, including without limitation reduced economic activity and certainty, increased unemployment, increased loan defaults or delinquencies, and increased stress on municipal budgets, including due to reduced tax revenues and the ability to raise taxes or limit spending, could materially and adversely affect the performance of the Company’s insured portfolios. The impact of the pandemic on the Company’s financial guarantee credits is likely to vary based on the nature of the taxes, fees and revenues pledged to debt repayment and their sensitivity to the related slowdown in economic activity. The duration of the pandemic, the availability of federal aid to state and local governments, and the breadth and speed of economic recovery may all contribute to the ultimate degree and length of the economic stress incurred by the credits in the Company’s insured portfolios. Further, any national recession that may result from the pandemic and its aftermath could present additional but yet unknown credit risks to the Company’s insured portfolios. Federal legislation passed to combat the economic impact of the pandemic, principally the $2.7 trillion Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, included significant aid to public sector issuers including states, territories, healthcare, higher education and transportation issuers. In addition, the Federal Reserve has announced several actions in furtherance of its mandate from Congress to promote the stability of the financial system that are directly supportive of the municipal market. It is premature to assess whether these or any subsequent federal responses will prevent or reduce financial distress in the municipal sector. If the issuers of the obligations in National’s insured portfolio, including Puerto Rico, are unable to raise taxes, reduce spending, or receive federal assistance, the Company may experience new or additional losses or impairments on those obligations, which could materially and adversely affect its business, financial condition and financial results. In December of 2020, Congress passed an additional $900 billion coronavirus relief bill, however, this latest aid package does not include direct funding to states and local governments. In January of 2021, a new $1.9 trillion relief plan was proposed that includes assistance to further stabilize the financial system, help with vaccine distribution, and direct funding for states and local governments. Certain of MBIA Corp.’s structured finance policies, including those in which the underlying principal obligations are comprised of residential or commercial mortgages and mortgage-backed securities (“MBS”), could be negatively impacted by delays or failures of borrowers to make payments of principal and interest when due, or delays or moratoriums on foreclosures or enforcement actions with respect to delinquent or defaulted mortgages imposed by governmental authorities. MBIA Corp. has recorded significant loss reserves on its residential mortgage-backed securities (“RMBS”) and collateralized debt obligations (“CDO”) exposures, and there can be no assurance that these reserves will be sufficient if the pandemic causes further deterioration to the economy. These transactions are also subject to servicer risks, which relate to problems with the transaction’s servicer that could adversely impact performance of the underlying assets. Additionally, several of the Company’s credits, particularly within its international public finance sector, feature large, near term debt-service payments, and there can be no assurance that the liquidity position of MBIA Corp. will enable it to satisfy any claims that arise if the issuers of such credits are unable or unwilling to refinance or repay their obligations. MBIA Corp. has recorded substantial expected recoveries on certain RMBS transactions, and the forbearance options that mortgage borrowers who were facing financial difficulties took advantage of under the CARES Act, may delay or impair collections on these recoveries. Liquidity The Company continues to monitor its cash and liquid asset resources using cash forecasting and stress-scenario testing. Members of the Company’s senior management meet regularly to review liquidity metrics, discuss contingency plans and establish target liquidity levels. It remains premature to predict the full impact the pandemic may have on the Company’s future liquidity position and needs. Declines in the market value or rating eligibility of assets pledged against the Company’s obligations as a result of credit market deterioration caused by COVID-19 require additional eligible assets to be pledged in order to meet minimum required collateral amounts against these obligations. This could require the Company to sell assets, potentially with substantial losses or use free cash or other assets to meet the collateral requirements, thus negatively impacting the Company’s liquidity position. Associated declines in the yields in its insurance companies’ fixed-income portfolios could materially impact investment income. U.S. Public Finance Market Conditions National continues to monitor and remediate its existing insured portfolio and may also pursue strategic alternatives that could enhance shareholder value. Certain state and local governments and territory obligors that National insures are under financial and budgetary stress. This could lead to an increase in defaults by such entities on the payment of their obligations and losses or impairments on a greater number of National’s insured transactions. National monitors and analyzes these situations and other stressed credits closely, and the overall extent and duration of this stress is uncertain. 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 on MBIA Corp.’s policies insuring the Class A-1 A-2 2003-1, 2005-1, MBIA Corp. also projects to collect excess spread from insured RMBS; however, the amount and timing of these collections are uncertain. Failure to collect its expected recoveries could impede MBIA Corp.’s ability to make payments when due on other policies. MBIA Corp. believes that if the New York State Department of Financial Services (“NYSDFS”) concludes at any time that MBIA Insurance Corporation will not be able to pay its policyholder claims, the NYSDFS would likely put MBIA Insurance Corporation into a rehabilitation or liquidation proceeding under Article 74 of the New York Insurance Law (“NYIL”) and/or take such other actions as the NYSDFS may deem necessary to protect the interests of MBIA Insurance Corporation’s policyholders. The determination to commence such a proceeding or take other such actions is within the exclusive control of the NYSDFS. Given the separation of MBIA Inc. and MBIA Corp. as distinct legal entities, the absence of any cross defaults between the entities and the lack of reliance by MBIA Inc. on MBIA Corp. for dividends, the Company does not believe that a rehabilitation or liquidation proceeding with respect to MBIA Insurance Corporation would have any significant liquidity impact on MBIA Inc. Such a proceeding could have material adverse consequences for MBIA Corp., including the termination of derivative contracts for which counterparties may assert market-based claims, the acceleration of debt obligations issued by affiliates and insured by MBIA Corp., the loss of control of MBIA Insurance Corporation to a rehabilitator or liquidator, and unplanned costs. Refer to “Note 6: Loss and Loss Adjustment Expense Reserves” for additional information about MBIA Corp.’s recoveries. Corporate Liquidity Based on the Company’s projections of National’s dividends and other cash inflows, the Company expects that MBIA Inc. will have sufficient cash to satisfy its debt service and general corporate needs. However, MBIA Inc. continues to have liquidity risk that could be caused by interruption of or reduction in dividends from National, deterioration in the performance of invested assets, impaired access to the capital markets, as well as other factors, which are not anticipated at this time. Furthermore, failure by MBIA Inc. to settle liabilities that are insured by MBIA Corp. could result in claims on MBIA Corp. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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Significant Accounting Policies | Note 2: Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP 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. Consolidation The consolidated financial statements include the accounts of MBIA Inc., its wholly-owned subsidiaries and all other entities in which the Company has a controlling financial interest. All intercompany balances and transactions have been eliminated. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether an entity is a voting interest entity or a VIE. Voting interest entities are entities in which (i) the total equity investment at risk is sufficient to enable an entity to finance its activities independently and (ii) the equity holders have the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. Voting interest entities are consolidated when the Company has a majority voting interest. VIEs are entities that lack one or more of the characteristics of a voting interest entity. The consolidation of a VIE is required if an entity has a variable interest (such as an equity or debt investment, a beneficial interest, a guarantee, a written put option or a similar obligation) and that variable interest or interests give it a controlling financial interest in the VIE. A controlling financial interest is present when an enterprise has both (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The enterprise with the controlling financial interest, known as the primary beneficiary, is required to consolidate the VIE. The Company consolidates all VIEs in which it is the primary beneficiary. The Company elected to apply the fair value option to all financial assets and financial liabilities of certain consolidated VIEs on a VIE-by-VIE basis. Refer to “Note 4: Variable Interest Entities” for additional information. Investments The Company classifies its investments as available-for-sale held-to-maturity non-credit and losses, net of applicable deferred income taxes, reflected in accumulated other comprehensive income (loss) (“AOCI”) in shareholders’ equity. The specific identification method is used to determine realized gains and losses on AFS securities. HTM investments, for which the Company had the ability and intent to hold such investments to maturity, were redeemed during 2020, and were reported in the consolidated balance sheets at amortized cost (net of an allowance for credit losses). Investments carried at fair value consist of equity instruments, and certain investments elected under the fair value option, or classified as trading. Short-term investments held as AFS include all fixed-maturity securities with a remaining maturity of less than one year at the date of purchase, commercial paper and money market securities. Changes in fair value of investments carried at fair value and realized gains and losses from the sale of investment securities are reflected in earnings as part of “Net gains (losses) on financial instruments at fair value and foreign exchange” on the Company’s consolidated statements of operations. Investment income is recorded as earned which includes the current period interest accruals deemed collectible. Accrued interest income is recorded as part of “Other assets” on the Company’s consolidated balance sheets. Bond discounts and premiums are amortized using the effective yield method over the remaining term of the securities and reported in “Net investment income” on the Company’s consolidated statements of operations. However, premiums on certain callable debt securities are amortized to the earliest call date. For MBS and asset-backed securities (“ABS”), discounts and premiums are amortized using the retrospective or prospective method. As part of the adoption of Accounting Standards Update (“ASU”) 2016-13, Credit Losses on Debt Securities For AFS debt securities, the Company’s consolidated statements of operations reflect the full impairment (the difference between a security’s amortized cost basis and fair value) if the Company intends to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis. For AFS debt securities in an unrealized loss position and HTM debt securities held prior to their redemption during 2020, the securities are evaluated on a quarterly basis to determine if credit losses exist. The Company considers that credit losses exist when the Company does not expect to recover the entire amortized cost basis of the debt security. The Company measures an allowance for credit losses on a security-by-security As part of the adoption of ASU 2016-13, Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits, and deposits with banks with original maturities of less than three months. Deferred Acquisition Costs The Company deferred acquisition costs that were directly related to new or renewal insurance business. Acquisition costs are costs to acquire an insurance contract which result directly from and are essential to the insurance contracts transaction and would not have been incurred by the Company had the contract transaction not occurred. Acquisition costs include compensation of employees involved in underwriting, certain rating agency fees, state premium taxes and certain other underwriting expenses, reduced by ceding commission income on premiums ceded to reinsurers. Acquisition costs also included ceding commissions paid by the Company in connection with assuming business from other financial guarantors. Acquisition costs, net of ceding commissions received, related to non-derivative Derivatives Derivative instruments are reported at fair value on the consolidated balance sheets as either assets or liabilities depending on the rights or obligations under the contract, and changes in fair value are reported in the consolidated statements of operations within “Net gains (losses) on financial instruments at fair value and foreign exchange” or “Unrealized gains (losses) on insured derivatives” depending on the nature of the derivative. The net change in the fair value of the Company’s insured derivatives has two primary components: (i) realized gains (losses) and other settlements on insured derivatives and (ii) unrealized gains (losses) on insured derivatives. “Realized gains (losses) and other settlements on insured derivatives” include (i) premiums received and receivable on sold CDS contracts, (ii) premiums paid and payable to reinsurers in respect to CDS contracts, (iii) net amounts received or paid on reinsurance commutations, (iv) losses paid and payable to CDS contract counterparties due to the occurrence of a credit event or settlement agreement, (v) losses recovered and recoverable on purchased CDS contracts due to the occurrence of a credit event or settlement agreement and (vi) fees relating to CDS contracts. “Unrealized gains (losses) on insured derivatives” include all other changes in the fair values of the insured derivative contracts. As of December 31, 2020, the Company had no remaining insured exposure accounted for as an insured CDS derivative. In certain instances, the Company purchased or issued securities that contain embedded derivatives that were separated from the host contract and accounted for as derivative instruments. In addition, the Company elected to record at fair value certain financial instruments that contain an embedded derivative that would have otherwise required bifurcation from the host contract and been accounted for separately as a derivative instrument. These hybrid financial instruments included certain medium-term notes (“MTNs”) and certain AFS securities. The Company elected to fair value these hybrid financial instruments in their entirety given the complexity of bifurcating the embedded derivatives. Refer to “Note 9: Derivative Instruments” for a further discussion of the Company’s use of derivatives and their impact on the Company’s consolidated financial statements and “Note 7: Fair Value of Financial Instruments” for derivative valuation techniques and fair value disclosures. Fair Value Measurements—Definition and Hierarchy The Company carries certain financial instruments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement of financial instruments held or issued by the Company are determined through the use of observable market data when available. Market data is obtained from a variety of third-party sources, including dealer quotes. If dealer quotes are not available for an instrument that is infrequently traded, the Company uses alternate valuation methods, including either dealer quotes for similar instruments or pricing models that use market data inputs. The use of alternate valuation methods generally requires considerable judgment in the application of estimates and assumptions and changes to such estimates and assumptions may produce materially different fair values. The Company considers its own nonperformance risk and the nonperformance risk of its counterparties when measuring fair value. The accounting guidance establishes a fair value hierarchy that categorizes into three levels, the inputs used to measure fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available and reliable. Observable inputs are those that the Company believes market participants would use in pricing an asset or liability based on available market data. Unobservable inputs are those that reflect the Company’s beliefs about the assumptions market participants would use in pricing the asset or liability based on the best information available. The three levels of the fair value hierarchy are defined as follows: • Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company can access. Valuations are based on quoted prices that are readily and regularly available in an active market, with significant trading volumes. • Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 2 assets include debt securities with quoted prices that are traded less frequently than exchange-traded instruments, securities which are priced using observable inputs and derivative contracts whose values are determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. • Level 3—Valuations based on inputs that are unobservable or supported by little or no market activity, and that are significant to the overall fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques where significant inputs are unobservable, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The availability of observable inputs can vary from financial instrument to financial instrument and period to period depending on the type of instrument, market activity, the approach used to measure fair value, and other factors. The Company categorizes a financial instrument within the fair value hierarchy based on the least observable input that is significant to the fair value measurement. When the inputs used to measure fair value of an asset or a liability are categorized within different levels based on the definition of the fair value hierarchy, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. Refer to “Note 7: Fair Value of Financial Instruments” for additional fair value disclosures. 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 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. The Company’s loss reserve, insurance loss recoverable, and accruals for loss adjustment expense (“LAE”) incurred are disclosed in “Note 6: Loss and Loss Adjustment Expense Reserves.” Long-term Debt Long-term debt is carried at the principal amount outstanding plus accrued interest and net of unamortized debt issuance costs and discounts. Interest expense is accrued at the contractual interest rate. Debt issuance costs and discounts are amortized and reported as interest expense. Medium-Term Notes and Investment Agreements MTNs and investment agreements are carried at the principal amount outstanding plus accrued interest and net of unamortized discounts, or at fair value for certain MTNs. Interest expense is accrued at the contractual interest rate. Discounts are amortized and reported as interest expense. Financial Guarantee Insurance Premiums Unearned Premium Revenue and Receivable for Future Premiums The Company recognizes a liability for unearned premium revenue at the inception of financial guarantee insurance and reinsurance contracts on a contract-by-contract Credit Losses on Premium Receivables The Company evaluates the collectability of outstanding premium receivables on a quarterly basis and measures any allowance for credit losses as the difference between the recorded premium receivable amount and the current projected net present value of premiums expected to be collected, discounted at the effective interest rate, which is the applicable risk-free rate described in the preceding paragraph. Estimating the allowance for credit losses involves substantial judgment, including forecasting an insured transaction’s cash flows, such as the future performance of the transaction’s underlying assets and the impact of certain macro-economic factors, as well as incorporating any historical experience of uncollectible balances and a transaction’s liability structure, including the seniority of premium payments to the Company. Premium Revenue Recognition The Company recognizes and measures premium revenue over the period of the contract in proportion to the amount of insurance protection provided. Premium revenue is measured by applying a constant rate to the insured principal amount outstanding in a given period to recognize a proportionate share of the premium received or expected to be received on a financial guarantee insurance contract. A constant rate for each respective financial guarantee insurance contract is calculated as the ratio of (a) the present value of premium received or expected to be received over the period of the contract to (b) the sum of all insured principal amounts outstanding during each period over the term of the contract. An issuer of an insured financial obligation may retire the obligation prior to its scheduled maturity through refinancing or legal defeasance in satisfaction of the obligation according to its indenture, which results in the Company’s obligation being extinguished under the financial guarantee contract. The Company recognizes any remaining unearned premium revenue on the insured obligation as refunding premiums earned in the period the contract is extinguished to the extent the unearned premium revenue has been collected. Non-refundable non-refundable Fee and Reimbursement Revenue Recognition The Company collects insurance related fees for services performed in connection with certain transactions. Fees are earned when the related services are completed. Types of fees include work, waiver and consent, and termination fees. Stock-Based Compensation The Company recognizes in earnings all stock-based payment transactions at the fair value of the stock-based compensation provided. Refer to “Note 15: Benefit Plans” for a further discussion regarding the methodology utilized in recognizing employee stock compensation expense. Foreign Currency Translation Financial statement assets and liabilities denominated in foreign currencies are reported in U.S. dollars generally using rates of exchange prevailing as of the balance sheet date. Translation adjustments resulting from the translation of the financial statements of the Company’s non-U.S. non-U.S. non-functional Income Taxes Deferred income taxes are recorded with respect to loss carryforwards and temporary differences between the tax bases of assets and liabilities and the reported amounts in the Company’s financial statements that will result in deductible or taxable amounts in future years when the reported amounts of assets and liabilities are recovered or settled. Such temporary differences relate principally to net operating losses (“NOLs”), accrued surplus note interest, loss reserve deductions, premium revenue recognition, deferred acquisition costs, asset impairments and foreign tax credits. Valuation allowances are established to reduce deferred tax assets to the amount that more likely than not will be realized. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates in the period in which changes are approved by the relevant authority. MBIA Inc. and its eligible U.S. subsidiaries file a consolidated federal income tax return. The U.S. income taxes are allocated based on the provisions of the Company’s tax sharing agreement which governs the intercompany settlement of tax obligations and benefits. The method of allocation between the members is based upon calculations as if each member filed its separate tax return. Under the Company’s tax sharing agreement, each member with a NOL will receive the benefits of its tax losses and credits as it is able to earn them out in the future. In establishing a liability for an unrecognized tax benefit (“UTB”), assumptions may be made in determining whether a tax position is more likely than not to be sustained upon examination by the taxing authority and also in determining the ultimate amount that is likely to be realized. A tax position is recognized only when, based on management’s judgment regarding the application of income tax laws, it is more likely than not that the tax position will be sustained upon examination. The amount of tax benefit recognized is based on the Company’s assessment of the largest amount of benefit that is more likely than not to be realized on ultimate settlement with the taxing authority. This measurement is based on many factors, including whether a tax dispute may be settled through negotiation with the taxing authority or is only subject to review in the courts. As new information becomes available, the Company evaluates its tax positions, and adjusts its UTB, as appropriate. If the tax benefit ultimately realized differs from the amount previously recognized, the Company recognizes an adjustment of the UTB. Refer to “Note 11: Income Taxes” for additional information about the Company’s income taxes. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
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Recent Accounting Pronouncements | Note 3: Recent Accounting Pronouncements Recently Adopted Accounting Standards Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) In June of 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, 2016-13 2016-13 2016-13 2016-13 2016-13 The Company adopted ASU 2016-13 in its entirety as of January 1, 2020. For financial assets held by the Company and measured at amortized cost, which primarily include HTM debt securities, premiums receivable, accrued investment income and reinsurance recoverables, the Company’s aggregate cumulative-effect adjustment, net of tax, related to allowances for credit losses as of the date of adoption was a $42 million reduction in retained earnings. In addition, the Company updated its models and implemented or modified processes and controls necessary for the proper identification, measurement and recording of expected credit losses on financial assets within the scope of ASU 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, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements. ASU 2018-13 was effective for interim and annual periods beginning January 1, 2020 with early adoption permitted to remove or modify disclosures upon issuance of the standard and delay adoption of the additional disclosures until the effective date. Since the amendments of ASU 2018-13 only impact disclosure requirements, the adoption of ASU 2018-13 did not impact the Company’s consolidated financial statements. The Company adopted the amendments of ASU 2018-13 in its entirety as of January 1, 2020. The adoption of ASU 2018-13 only impacted the fair value disclosures within the Company’s consolidated financial statements and did not impact amounts reported on the Company’s balance sheet, statement of operations, statement of comprehensive income or statement of cash flows. The Company has not adopted any other new accounting pronouncements that had a material impact on its consolidated financial statements. Recent Accounting Developments Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04) In March of 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships that reference London Interbank Offered Rate (“LIBOR”) or other rates that are expected to be discontinued, subject to meeting certain criteria. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. The Company is evaluating the impact of adopting ASU 2020-04. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
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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 variable interest entity (“VIE”) to the extent the SPE’s total equity at risk is not sufficient to permit the SPE to finance its activities without additional subordinated financial support or its equity investors lack any one of the following characteristics: (i) the power to direct the activities of the SPE that most significantly impact the entity’s economic performance or (ii) the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the entity. A holder of a variable interest or interests in a VIE is required to assess whether it has a controlling financial interest, and thus is required to consolidate the entity as primary beneficiary. An assessment of a controlling financial interest identifies the primary beneficiary as the variable interest holder that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. An ongoing reassessment of controlling financial interest is required to be performed based on any substantive changes in facts and circumstances involving the VIE and its variable interests. The Company evaluates issuer-sponsored SPEs initially to determine if an entity is a VIE, and is required to reconsider its initial determination if certain events occur. For all entities determined to be VIEs, MBIA performs an ongoing reassessment to determine whether its guarantee to provide credit protection on obligations issued by VIEs provides the Company with a controlling financial interest. Based on its ongoing reassessment of controlling financial interest, the Company determines whether a VIE is required to be consolidated or deconsolidated. The Company makes its determination for consolidation based on a qualitative assessment of the purpose and design of a VIE, the terms and characteristics of variable interests of an entity, and the risks a VIE is designed to create and pass through to holders of variable interests. The Company generally provides credit protection on obligations issued by VIEs, and holds certain contractual rights according to the purpose and design of a VIE. The Company may have the ability to direct certain activities of a VIE depending on facts and circumstances, including the occurrence of certain contingent events, and these activities may be considered the activities of a VIE that m Consolidated VIEs The carrying amounts of assets and liabilities of consolidated VIEs were $830 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 December 31, 2020 and 2019. 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. December 31, 2020 Carrying Value of Assets Carrying Value of Liabilities In millions Maximum Investments Premiums Insurance Unearned Loss and Insurance: Global structured finance: Mortgage-backed residential $ 1,835 $ 21 $ 16 $ 90 $ 14 $ 482 Consumer asset-backed 293 — 1 1 1 15 Corporate asset-backed 735 — 5 364 5 — Total global structured finance 2,863 21 22 455 20 497 Global public finance 1,434 — 7 — 7 2 Total insurance $ 4,297 $ 21 $ 29 $ 455 $ 27 $ 499 December 31, 2019 Carrying Value of Assets Carrying Value of Liabilities In millions Maximum Investments Premiums Insurance Unearned Loss and Insurance: Global structured finance: Mortgage-backed residential $ 2,253 $ 15 $ 19 $ 107 $ 16 $ 436 Mortgage-backed commercial 26 — — — — — Consumer asset-backed 384 — 1 1 1 11 Corporate asset-backed 937 — 6 673 7 — Total global structured finance 3,600 15 26 781 24 447 Global public finance 1,926 — 8 — 9 — Total insurance $ 5,526 $ 15 $ 34 $ 781 $ 33 $ 447 |
Insurance Premiums
Insurance Premiums | 12 Months Ended |
Dec. 31, 2020 | |
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Insurance Premiums | Note 5: Insurance Premiums The Company recognizes and measures premiums related to financial guarantee (non-derivative) insurance and reinsurance contracts in accordance with the accounting principles for financial guarantee insurance contracts. As of December 31, 2020, the Company recorded $5 million as an allowance for credit losses on premium receivables. Refer to “Note 2: Significant Accounting Policies” and “Note 3: Recent Accounting Pronouncements” for further information regarding the accounting related to credit losses on premium receivables. As of December 31, 2020 and 2019, the weighted average risk-free rates used to discount future installment premiums were 2.7% and 2.8%, respectively, and the weighted average expected collection term of the premiums receivable was 8.75 years and 8.86 years, respectively. As of December 31, 2020 and 2019, reinsurance premiums payable was $15 million and $17 million, respectively, and is included in “Other liabilities” in the Company’s consolidated balance sheets. The reinsurance premiums payable is accreted and paid to reinsurers as premiums due to MBIA are accreted and collected. The following tables present a roll forward of the Company’s premiums receivable for the years ended December 31, 2020 and 2019. In millions Adjustments Premiums Premium Premiums Changes in Accretion of (1) Other (2) Premiums $ 249 $ (30) $ — $ (1) $ 6 $ (8) $ 216 (1)—Recorded within premiums earned on MBIA’s consolidated statement of operations. (2)—The change primarily relates to a reduction in installment premiums due to refunding activity and the recording of an allowance for credit losses under Financial Instruments-Credit Losses, partially offset by changes in foreign exchange currency rates. In millions Adjustments Premiums Receivable as of December 31, 2018 Premium Premiums Changes in Accretion of (1) Other (2) Premiums $ 296 $ (43) $ — $ (4) $ 7 $ (7) $ 249 (1)—Recorded within premiums earned on MBIA’s consolidated statement of operations. (2)—Primarily relates to the write off of uncollectible premiums and to a lesser extent realized gains due to changes in foreign currency exchange rates. The following table presents the undiscounted future amount of premiums expected to be collected and the period in which those collections are expected to occur: In millions Expected Three months ending: March 31, 2021 $ 3 June 30, 2021 10 September 30, 2021 5 December 31, 2021 10 Twelve months ending: December 31, 2022 24 December 31, 2023 22 December 31, 2024 20 December 31, 2025 18 Five years ending: December 31, 2030 64 December 31, 2035 45 December 31, 2040 and thereafter 54 Total $ 275 The following table presents the unearned premium revenue balance and future expected premium earnings as of and for the periods presented: In millions Unearned Revenue Expected Future Accretion Total Expected Earnings Upfront Installments December 31, 2020 $ 405 Three months ending: March 31, 2021 392 $ 6 $ 7 $ 1 $ 14 June 30, 2021 379 6 7 1 14 September 30, 2021 367 6 6 2 14 December 31, 2021 355 6 6 1 13 Twelve months ending: December 31, 2022 310 21 24 5 50 December 31, 2023 271 19 20 4 43 December 31, 2024 235 17 19 4 40 December 31, 2025 204 15 16 4 35 Five years ending: December 31, 2030 104 50 50 15 115 December 31, 2035 50 24 30 9 63 December 31, 2040 and thereafter — 16 34 9 59 Total $ 186 $ 219 $ 55 $ 460 |
Loss and Loss Adjustment Expens
Loss and Loss Adjustment Expense Reserves | 12 Months Ended |
Dec. 31, 2020 | |
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Loss and Loss Adjustment Expense Reserves | Note 6: Loss and Loss Adjustment Expense Reserves The Company’s insured portfolio management groups within its U.S. public finance insurance and international and structured finance insurance businesses (collectively, “IPM”) monitor the Company’s outstanding insured obligations with the objective of minimizing losses. IPM meets this objective by identifying issuers that, because of deterioration in credit quality or changes in the economic, regulatory or political environment, are at a heightened risk of defaulting on debt service of obligations insured by the Company. In such cases, IPM works with the issuer, trustee, bond counsel, servicer, underwriter and other interested parties in an attempt to alleviate or remedy the problem and avoid defaults on debt service payments. The Company typically requires the issuer, servicer (if applicable) and the trustee of insured obligations to furnish periodic financial and asset-related information, including audited financial statements, to IPM for review. IPM also monitors publicly available information related to insured obligations. Potential problems uncovered through this review, such as poor financial results, low fund balances, covenant or trigger violations and trustee or servicer problems, or other events that could have an adverse impact on the insured obligation, could result in an immediate surveillance review and an evaluation of possible remedial actions. IPM also monitors and evaluates the impact on issuers of general economic conditions, current and proposed legislation and regulations, political developments, as well as sovereign, state and municipal finances and budget developments. The frequency and extent of IPM’s monitoring is based on the criteria and categories described below. Insured obligations that are judged to merit more frequent and extensive monitoring or remediation activities due to a deterioration in the underlying credit quality of the insured obligation or the occurrence of adverse events related to the underlying credit of the issuer are assigned to a surveillance category (“Caution List—Low,” “Caution List—Medium,” “Caution List—High” or “Classified List”) depending on the extent of credit deterioration or the nature of the adverse events. IPM monitors insured obligations assigned to a surveillance category more frequently and, if needed, develops a remediation plan to address any credit deterioration. Remediation actions may involve, among other things, waivers or renegotiations of financial covenants or triggers, waivers of contractual provisions, the granting of consents, transfer of servicing, consideration of restructuring plans, acceleration, security or collateral enforcement, actions in bankruptcy or receivership, litigation and similar actions. The types of remedial actions pursued are based on the insured obligation’s risk type and the nature and scope of the event giving rise to the remediation. As part of any such remedial actions, the Company seeks to improve its security position and to obtain concessions from the issuer of the insured obligation. From time to time, the issuer of an insured obligation by the Company may, with the consent of the Company, restructure the insured obligation by extending the term, increasing or decreasing the par amount or decreasing the related interest rate, with the Company insuring the restructured obligation. The Company does not establish any case basis reserves for insured obligations that are assigned to “Caution List—Low,” “Caution List—Medium” or “Caution List—High.” In the event MBIA expects to pay a claim with respect to an insured transaction, it places the insured transaction on its “Classified List” and establishes a case basis reserve. The following provides a description of each surveillance category: “Caution List—Low” — “Caution List—Medium” — “Caution List—High” — “Classified List” — The establishment of the appropriate level of loss reserves is an inherently uncertain process involving numerous assumptions, estimates and subjective judgments by management that depend primarily on the nature of the underlying insured obligation. These variables include the nature and creditworthiness of the issuers of the insured obligations, expected recovery rates on unsecured obligations, the projected cash flow or market value of any assets pledged as collateral on secured obligations, and the expected rates of recovery, cash flow or market values on such obligations or assets. Factors that may affect the actual ultimate realized losses for any policy include economic conditions and trends, political developments, the extent to which sellers/servicers comply with the representations or warranties made in connection therewith, levels of interest rates, borrower behavior, the default rate and salvage values of specific collateral, and the Company’s ability to enforce contractual rights through litigation and otherwise, including the collection of contractual interest on claim payments. The Company’s remediation strategy for an insured obligation that has defaulted or is expected to default may also have an impact on the Company’s loss reserves. In establishing case basis loss reserves, the Company calculates the present value of probability-weighted estimated loss payments, net of estimated recoveries, using a discount rate equal to the risk-free rate applicable to the currency and the weighted average remaining life of the insurance contract as required by accounting principles for financial guarantee contracts. Yields on U.S. Treasury offerings are used to discount loss reserves denominated in U.S. dollars, which represent the majority of the loss reserves. Similarly, yields on foreign government offerings are used to discount loss reserves denominated in currencies other than the U.S. dollar. Significant changes in discount rates from period to period may have a material impact on the present value of the Company’s loss reserves and expected recoveries. In addition, if the Company were to apply different discount rates, its case basis reserves may have been higher or lower than those established as of December 31, 2020. For example, a higher discount rate applied to expected future payments would have decreased the amount of a case basis reserve established by the Company and a lower rate would have increased the amount of a reserve established by the Company. Similarly, a higher discount rate applied to the potential future recoveries would have decreased the amount of a loss recoverable established by the Company and a lower rate would have increased the amount of a loss recoverable established by the Company. U.S. Public Finance Insurance U.S. public finance insured transactions consist of municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utilities, airports, health care institutions, higher educational facilities, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. The Company estimates future losses by using probability-weighted cash flow scenarios that are customized to each insured transaction. Future loss estimates consider debt service due for each insured transaction, which includes par outstanding and interest due, as well as recoveries for such payments, if any. Gross par outstanding for capital appreciation bonds represents the par amount at the time of issuance of the insurance policy. Certain state and local governments and territory obligors that National insures are under financial and budgetary stress. In addition, the COVID-19 pandemic may present additional but unknown credit risks to National’s insured portfolio. Puerto Rico had been experiencing significant fiscal stress and constrained liquidity, and in response, the U.S. Congress passed PROMESA. In formulating loss reserves, the Company considers the following: environmental and political impacts; litigation; ongoing discussions with creditors; timing and amount of debt service payments and future recoveries; existing proposed restructuring plans or agreements; and deviations from these proposals in its probability-weighted scenarios. 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 Oversight Board. Refer to “Note 1: Business Developments and Risk and Uncertainties”, for further information on COVID-19 and the Company’s Puerto Rico exposures. Recoveries on Puerto Rico Losses For recoveries on paid Puerto Rico losses, the estimates include assumptions related to the following: economic conditions and trends; political developments; the Company’s ability to enforce contractual rights through litigation and otherwise; discussions with other creditors and the obligors, any existing proposals; and the remediation strategy for an insured obligation that has defaulted or is expected for default. 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 financial guarantee VIEs that are eliminated in consolidation. In addition, COVID-19 COVID-19. RMBS Case Basis Reserves (Financial Guarantees) The Company’s RMBS reserves and recoveries relate to financial guarantee insurance policies, excluding those on consolidated VIEs. The Company’s first-lien RMBS case basis reserves primarily relate to RMBS backed by alternative A-paper and subprime mortgage loans. The Company’s second-lien RMBS case basis reserves relate to RMBS backed by home equity lines of credit and closed-end charged-off In calculating ultimate cumulative losses for RMBS, the Company estimates the amount of second-lien loans that are expected to be charged-off (deemed uncollectible by servicers of the transactions) and, for first-lien RMBS, the Company estimates the amount of loans that are expected to be liquidated in the future through foreclosure or short sale. The time to liquidation for a defaulted loan is specific to the loan’s delinquency bucket. For all RMBS transactions, cash flow models consider allocations and other structural aspects and claims against MBIA Corp.’s insurance policy consistent with such policy’s terms and conditions. The estimated net claims from the procedure above are then discounted using a risk-free rate to a net present value reflecting MBIA’s general obligation to pay claims over time and not on an accelerated basis. The Company monitors RMBS portfolio performance on a monthly basis against projected performance, reviewing delinquencies, roll rates, and prepayment rates (including voluntary and involuntary). However, loan performance remains difficult to predict and losses may exceed expectations. In the event of a material deviation in actual performance from projected performance, the Company would increase or decrease the case basis reserves accordingly and re-evaluate its assumptions. RMBS Recoveries The Company primarily records two types of recoveries related to insured RMBS exposures: excess spread that is generated from the trust structures in the insured transactions; and second-lien “put-back” claims related to those mortgage loans whose inclusion in an insured securitization failed to comply with representations and warranties (“ineligible loans”). Excess Spread Excess spread within insured RMBS securitizations is the difference between interest inflows on mortgage loan collateral and interest outflows on the insured RMBS notes. The aggregate amount of excess spread depends on the future loss trends, which include future delinquency trends, average time to charge-off/liquidate delinquent loans, the future spread between Prime and the LIBOR interest rates, and borrower refinancing behavior (which may be affected by changes in the interest rate environment) that results in voluntary prepayments. Excess spread also includes subsequent recoveries on previously charged-off loans associated with insured second-lien RMBS securitizations. Second-lien Put-Back As of December 31, 2020, the Company had settled all of its put-back to MBIA Corp. for approximately $604 million in damages. On February 9, 2021, the parties to the litigation entered into a settlement agreement pursuant to which Credit Suisse paid MBIA Corp. $600 million, and on February 11, 2021, the court entered an order dismissing the case. Refer to “Note 19: Commitments and Contingencies” for further information about the Company’s litigation with Credit Suisse. As of December 31, 2020, the Company consolidated the RMBS securitization originated by Credit Suisse as a VIE and, therefore, eliminates its estimate of recoveries from its insurance accounting and reflects such recoveries in its accounting for the loan repurchase commitments asset of the VIE using a fair value measurement. CDO Reserves and Recoveries The Company also has loss and LAE reserves on certain transactions within its 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, commercial mortgage-backed securities (“CMBS”), ABS and CDO collateral). The Company’s process for estimating reserves and credit impairments on these policies is determined as the present value of the probability-weighted potential future losses, net of estimated recoveries, across multiple scenarios. The Company considers several factors when developing the range of potential outcomes and their impact on MBIA. A range of loss scenarios is considered under different default and severity rates for each transaction’s collateral. Additionally, each transaction is evaluated for its commutation potential. Zohar Recoveries MBIA Corp. is seeking to recover the payments it made (plus interest and expenses) with respect to Zohar I and Zohar II. In March of 2018, the then-director of Zohar I and Zohar II placed those funds into voluntary bankruptcy proceedings in federal bankruptcy court in the District of Delaware (the “Zohar Funds Bankruptcy Cases”). In May of 2018, MBIA and certain parties to the Zohar Funds Bankruptcy Cases agreed to a stay of litigation and a process, among other things (the “Zohar Bankruptcy Settlement”) by which the debtor funds, through an independent director and a chief restructuring officer, would work with the original sponsor of the funds to monetize the Zohar Assets and repay creditors, including MBIA Corp. While the stay of litigation provided for in the Zohar Bankruptcy Settlement has expired, the court has ruled that the monetization process will continue, a decision that was affirmed by the federal District Court for the District of Delaware in July of 2020. While MBIA Corp. anticipates that the primary source of the recoveries will come from the monetization of the Zohar Assets, significant uncertainty remains with respect to realizable value. In late March of 2020, the original sponsor of the Zohar Funds resigned from her role as director and manager of all but one of the portfolio companies, which companies have debt and equity that comprise, in part, the Zohar Assets. New directors and managers are currently in place at all but two of the portfolio companies, which are all subject to the above-referenced monetization process. There can be no assurance, however, that the recent coronavirus outbreak and/or other developments will not cause the monetization of the Zohar Assets to be delayed or impacted. Salvage and subrogation recoveries related to Zohar I and Zohar II are reported within “Insurance loss recoverable” on the Company’s consolidated balance sheet. The Company’s estimate of the insurance loss recoverable for Zohar I and Zohar II includes probability-weighted scenarios of the ultimate monetized recovery from the Zohar Assets. Notwithstanding the procedures agreed to in the Zohar Bankruptcy Settlement and confirmed by the court, there can be no assurance that the monetization of the Zohar Assets will yield amounts sufficient to permit MBIA Corp. to recover a substantial portion of the payments it made on Zohar I and Zohar II. In particular, as the monetization process unfolds in coordination with the new directors and managers in place, and new information concerning the financial condition of the portfolio companies is disclosed, the Company may revise its expectations for recoveries. For example, at a June 3, 2020 hearing, counsel for one of the portfolio companies announced that the monetization process for that company would be delayed as a consequence of having to investigate issues relating to the integrity of the company’s financial statements. Failure to recover a substantial portion of the payments made on Zohar I and Zohar II could impede MBIA Corp.’s ability to make payments when due on other policies. MBIA Corp. believes that if the 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 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. Summary of Loss and LAE Reserves and Recoveries The Company’s loss and LAE reserves and recoveries before consolidated VIE eliminations, along with amounts that were eliminated as a result of consolidating VIEs for the international and structured finance insurance segment, which are included in the Company’s consolidated balance sheets as of December 31, 2020 and 2019 are presented in the following table: As As In millions Balance Sheet Line Item Balance Sheet Line Item Insurance Loss (2) Insurance Loss (2) U.S. Public Finance Insurance $ 1,220 $ 469 $ 911 $ 432 International and Structured Finance Insurance: Before VIE eliminations (1) 1,082 780 1,286 749 VIE eliminations (1) (625) (259) (503) (280) Total international and structured finance insurance 457 521 783 469 Total $ 1,677 $ 990 $ 1,694 $ 901 (1)—Includes loan repurchase commitments of $604 million and $486 million as of December 31, 2020 and 2019, respectively. (2)—Amounts are net of expected recoveries. Changes in Loss and LAE Reserves The following table presents changes in the Company’s loss and LAE reserves for the years ended December 31, 2020 and 2019. Changes in loss and LAE reserves, with the exception of loss and LAE payments are recorded in “Losses and loss adjustment” expenses in the Company’s consolidated statements of operations. As of December 31, 2020, the weighted average risk-free rate used to discount the Company’s loss reserves (claim liability) was 0.92%. LAE reserves are generally expected to be settled within a one-year period and are not discounted. As of December 31, 2020 and 2019 the Company’s gross loss and LAE reserves included $30 million and $34 million, respectively, related to LAE. In millions Changes in Loss and LAE Reserves for the Year Ended December 31, 2020 Gross Loss and (1) Loss Payments Accretion of Changes in Changes in Changes in Other Gross Loss (1) $ 901 $ (441) $ 11 $ (86) $ 606 $ 8 $ (9) $ 990 (1)—Includes changes in amount and timing of estimated payments and recoveries. In millions Changes in Loss and LAE Reserves for the Year Ended December 31, 2019 Gross Loss and (1) Loss Accretion of Changes in Changes in Changes in Changes in Other Gross Loss (1) $ 965 $ (431) $ 18 $ (54) $ 407 $ 23 $ (26) $ (1) $ 901 (1)—Includes changes in amount and timing of estimated payments and recoveries. The increase in the Company’s loss and LAE reserves for the year ended December 31, 2020, primarily related to an increase in expected payments on certain Puerto Rico exposures and an increase in losses on insured first-lien RMBS due to the decline in risk-free rates during 2020 used to present value loss reserves. This increase was partially offset by actual payments made and favorable changes in future recoveries on unpaid losses due to the decline in risk-free rates on certain Puerto Rico exposures. The decrease in the Company’s loss reserves during 2019 primarily relates to payments on certain Puerto Rico exposures and the elimination of COFINA loss reserves due to the consolidation of the Trusts as VIEs. These decreases were partially offset by an increase in loss reserves related to certain Puerto Rico exposures and 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 Company recognizes potential recoveries on paid claims based on the probability-weighted net cash inflows present valued at applicable risk-free rates as of the measurement date. The following table presents changes in the Company’s insurance loss recoverable for the years ended December 31, 2020 and 2019. Changes in insurance loss recoverable with the exception of collections, are recorded in “Losses and loss adjustment” expenses in the Company’s consolidated statements of operations. Changes in Insurance Loss Recoverable for the Year Ended December 31, 2020 In millions Gross Collections Accretion Changes Changes in (1) Other Gross Insurance loss recoverable $ 1,694 $ (49) $ 14 $ 115 $ (94) $ (3) $ 1,677 (1)—Includes amounts related to paid claims and LAE. Changes in Insurance Loss Recoverable In millions Gross Collections Accretion of Changes in Changes in (1) Other (2) Gross Insurance loss recoverable $ 1,595 $ (148) $ 35 $ 70 $ 105 $ 37 $ 1,694 (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 decrease in the Company’s insurance loss recoverable during 2020 was primarily due to a decline in expected recoveries on CDOs. This was partially offset by certain Puerto Rico claim payments that are expected to be recovered in the future as well as a decline in risk-free rates on certain Puerto Rico exposures. The increase in the Company’s insurance loss recoverable during 2019 was primarily due to estimated recoveries of claims paid on certain Puerto Rico credits, partially offset by amounts received related to recoveries on second-lien RMBS and CDO transactions and a decline in the amount of estimated future recoveries related to CDO transactions. Loss and LAE Activity For the year ended December 31, 2020, loss and LAE incurred primarily related to a decrease in expected salvage collections related to CDOs, an increase in actual and expected payments on certain Puerto Rico credits and an increase in losses on first-lien RMBS due to the decline in risk-free rates during 2020 used to present value loss reserves. During 2020, overall, risk-free rates used to discount loss reserve and recovery cash flows declined. The decline in risk-free rates had the impact of increasing the present value of recoveries, primarily on certain Puerto Rico credits, which was partially offset by the impact of increasing the present value of future claim payments across the Company’s insured portfolio. For the year ended December 31, 2019, loss and LAE incurred primarily related to a decrease in expected salvage collections related to CDOs and an increase in expected payments on insured first-lien RMBS transactions and certain Puerto Rico exposures. For the year ended December 31, 2018, losses and LAE incurred primarily related to an increase in expected payments on Puerto Rico exposures, partially offset by a decrease in expected payments on second-lien RMBS transactions and an increase in expected collections from CDOs. 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 years ended December 31, 2020, 2019 and 2018 gross LAE related to remediating insured obligations were $51 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 December 31, 2020: Surveillance Categories Caution Caution Caution List List List Classified $ in millions Low Medium High List Total Number of policies 46 16 — 219 281 Number of issues (1) 16 3 — 100 119 Remaining weighted average contract period (in years) 6.4 6.4 — 7.9 7.4 Gross insured contractual payments outstanding: (2) Principal $ 1,422 $ 123 $ — $ 3,302 $ 4,847 Interest 1,974 54 — 1,441 3,469 Total $ 3,396 $ 177 $ — $ 4,743 $ 8,316 Gross Claim Liability (3) $ — $ — $ — $ 1,088 $ 1,088 Less: Gross Potential Recoveries (4) — — — 1,947 1,947 Discount, net (5) — — — (173) (173) Net claim liability (recoverable) $ — $ — $ — $ (686) $ (686) Unearned premium revenue $ 10 $ — $ — $ 35 $ 45 Reinsurance recoverable on paid and unpaid losses (6) $ 11 (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, 2019: Surveillance Categories Caution Caution Caution List List List Classified $ in millions Low Medium High List Total Number of policies 45 19 — 212 276 Number of issues (1) 13 5 — 94 112 Remaining weighted average contract period (in years) 7.3 7.2 — 7.9 7.7 Gross insured contractual payments outstanding: (2) Principal $ 1,546 $ 248 $ — $ 3,794 $ 5,588 Interest 2,107 110 — 1,668 3,885 Total $ 3,653 $ 358 $ — $ 5,462 $ 9,473 Gross Claim Liability (3) $ — $ — $ — $ 965 $ 965 Less: Gross Potential Recoveries (4) — — — 2,184 2,184 Discount, net (5) — — — (453) (453) Net claim liability (recoverable) $ — $ — $ — $ (766) $ (766) Unearned premium revenue $ 6 $ 3 $ — $ 39 $ 48 Reinsurance recoverable on paid and unpaid losses (6) $ 19 (1)—An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt. (2)—Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA. (3)—The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position. (4)—Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position. (5)—Represents discount related to Gross Claim Liability and Gross Potential Recoveries. (6)—Included in “Other assets” on the Company’s consolidated balance sheets. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Fair Value Measurement | Note 7: Fair Value of Financial Instruments Fair Value Measurement Financial Assets and Liabilities Financial assets held by the Company primarily consist of investments in debt securities, loans receivables at fair value and loan repurchase commitments held by consolidated VIEs. Financial liabilities, excluding derivative liabilities, issued by the Company primarily consist of debt issued for general corporate purposes within its corporate segment, MTNs, investment agreements and debt issued by consolidated VIEs. The Company’s derivative liabilities are primarily interest rate swaps and insured credit derivatives. Valuation Techniques Valuation techniques for financial instruments measured at fair value are described below. Fixed-Maturity Securities Held as Available-For-Sale, Investments Carried at Fair Value, Investments Pledged as Collateral and Short-term Investments These investments include investments in U.S. Treasury and government agencies, state and municipal bonds, foreign governments, corporate obligations, MBS, ABS, money market securities, and perpetual debt and equity securities. Substantially all of these investments are valued based on recently executed transaction prices or quoted market prices by independent third parties, including pricing services and brokers. When quoted market prices are not available, fair value is generally determined using quoted prices of similar investments or a valuation model based on observable and unobservable inputs. Inputs vary depending on the type of investment. Observable inputs include contractual cash flows, interest rate yield curves, 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. During 2020, the investment in the fixed-income fund was redeemed. The investment in the fixed-income fund as of December 31, 2019 is included as “Investments carried as fair value” on the Company’s consolidated balance sheet. Investments based on quoted market prices of identical investments in active markets are classified as Level 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 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. Loan repurchase commitments are not securities and no quoted prices or comparable market transaction information are observable or available. Fair values of loan repurchase commitments are determined using discounted cash flow techniques and are categorized in Level 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 and do not include accrued interest. 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 Derivatives The corporate segment has entered into derivative transactions primarily consisting of interest rate swaps. Fair values of over-the-counter derivatives are determined using valuation models based on observable inputs, nonperformance risk of the Company and nonperformance risk of the counterparties. Observable and market-based inputs include interest rate yields, credit spreads and volatilities. These derivatives are categorized in Level 2 or Level 3 of the fair value hierarchy based on the lowest level input that is significant to the fair value measurement in its entirety. Derivatives—Insurance The derivative contracts insured by the Company cannot be legally traded and generally do not have observable market prices. The Company determines the fair values of certain insured credit derivatives using valuation models based on observable inputs and considering nonperformance risk of the Company. These insured credit derivatives are categorized in Level 2 of the fair value hierarchy. Prior to the termination in the fourth quarter of 2020 of its remaining insured CDS contract carried at fair value, the Company used an internally developed Direct Price Model to value its insured credit derivative that incorporated 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 included the impact of its credit standing. The insured credit derivative was categorized in Level 3 of the fair value hierarchy based on unobservable inputs that were 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. O ther 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 December 31, 2020 and 2019: In millions Fair Value as Valuation Techniques Unobservable Input Range (Weighted Assets Loans receivable at fair value $ 120 Market prices adjusted for financial guarantees provided to VIE obligations Impact of financial guarantee (2) -28%—109% (22%) (1) Loan repurchase commitments 604 Discounted cash flow Recovery value (3) Liabilities of consolidated VIEs: Variable interest entity notes 303 Market prices of VIE assets adjusted for financial guarantees provided Impact of financial guarantee 30%—73% (1) Other derivative liabilities 49 Discounted cash flow Cash flows $49—$49 (1)—Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. (2)—Negative percentage represents financial guarantee policies in a receivable position. (3)—Recovery value reflects an estimate of the amount to be awarded to the Company as part of litigation seeking to enforce its contractual rights. In millions Fair Value as Valuation Techniques Unobservable Input Range (Weighted Assets of consolidated VIEs: Loans receivable at fair value $ 136 Market prices adjusted for financial guarantees provided to VIE obligations Impact of financial guarantee (1) -20%—99% (22%) Loan repurchase commitments 486 Discounted cash flow Recovery rates (2) (2) Liabilities of consolidated VIEs: Variable interest entity notes 347 Market prices of VIE assets adjusted for financial guarantees provided Impact of financial guarantee 37%—76% Credit derivative liabilities—CMBS 7 Direct Price Model Nonperformance risk 54%—54% Other derivative liabilities 34 Discounted cash flow Cash flows $0—$49 (3) 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 had been a lower expected cash flow on the underlying loans receivable of the VIE, the value of the financial guarantee provided by the Company under the insurance policy would have been higher. This would have resulted in a lower fair value of the residential loans receivable in relation to the obligations of the VIE. As of December 31, 2020, the significant unobservable input used in the fair value measurement of the Company’s loan repurchase commitments of consolidated VIEs is a recovery value, which reflects an estimate of the amount to be awarded to the Company as part of litigation seeking to enforce its contractual rights. The Company’s remaining loan repurchase commitments were settled in the first quarter of 2021 for $600 million. As of December 31, 2019, the significant unobservable inputs used in the fair value measurement of the Company’s loan repurchase commitments of consolidated VIEs are a breach rate, which represented the percentage of ineligible loans held within a trust, and a recovery rate, which reflected the estimate of future cash receipts including legal risk in the enforcement of the Company’s contractual rights. 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. If the value of the guarantee provided by the Company to the obligations issued by the VIE had increased, the credit support would have added value to the liabilities of the VIE. This would have resulted in an increased fair value of the liabilities of the VIE. As of December 31, 2019, the significant unobservable input used in the fair value measurement of MBIA Corp.’s CMBS credit derivative, which was 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 have resulted 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 have resulted in an increase or decrease in the fair value of the derivative liability, respectively. This derivative contract was settled in the first quarter of 2021 for an amount consistent with the amount reported at fair value as of December 31, 2020. 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 December 31, 2020 and 2019: Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Significant Balance as of Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 750 $ 105 $ — $ 855 State and municipal bonds — 195 — 195 Foreign governments — 15 — 15 Corporate obligations — 975 — 975 Mortgage-backed securities: Residential mortgage-backed agency — 319 — 319 Residential mortgage-backed non-agency — 32 — 32 Commercial mortgage-backed — 20 — 20 Asset-backed securities: Collateralized debt obligations — 121 — 121 Other asset-backed — 141 — 141 Total fixed-maturity investments 750 1,923 — 2,673 Money market securities 1 — — 1 Perpetual debt and equity securities 37 25 — 62 Cash and cash equivalents 158 — — 158 Derivative assets: Non-insured derivative assets: Interest rate derivatives — 1 — 1 Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Significant Balance as of Assets of consolidated VIEs: Corporate obligations — 6 — 6 Mortgage-backed securities: Residential mortgage-backed non-agency — 40 — 40 Commercial mortgage-backed — 16 — 16 Asset-backed securities: Collateralized debt obligations — 8 — 8 Other asset-backed — 7 — 7 Cash 9 — — 9 Loans receivable at fair value: Residential loans receivable — — 120 120 Loan repurchase commitments — — 604 604 Other assets: Currency derivatives — — 6 6 Other — — 14 14 Total assets $ 955 $ 2,026 $ 744 $ 3,725 Liabilities: Medium-term notes $ — $ — $ 110 $ 110 Derivative liabilities: Insured derivatives: Credit derivatives — 2 — 2 Non-insured derivatives: Interest rate derivatives — 164 — 164 Other — — 49 49 Liabilities of consolidated VIEs: Variable interest entity notes — 47 303 350 Total liabilities $ — $ 213 $ 462 $ 675 Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Significant Balance as of Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 791 $ 97 $ — $ 888 State and municipal bonds — 200 — 200 Foreign governments — 10 — 10 Corporate obligations — 1,266 — 1,266 Mortgage-backed securities: Residential mortgage-backed agency — 330 — 330 Residential mortgage-backed non-agency — 19 — 19 Commercial mortgage-backed — 22 — 22 Asset-backed securities: Collateralized debt obligations — 140 — 140 Other asset-backed — 326 1 327 Total fixed-maturity investments 791 2,410 1 3,202 Money market securities 154 — — 154 Perpetual debt and equity securities 30 25 — 55 Fixed-income fund — — — 51 (1) Cash and cash equivalents 75 — — 75 Derivative assets: Non-insured derivative assets: Interest rate derivatives — 1 — 1 Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Significant Balance as of Assets of consolidated VIEs: Corporate obligations — 8 — 8 Mortgage-backed securities: Residential mortgage-backed non-agency — 45 — 45 Commercial mortgage-backed — 16 — 16 Asset-backed securities: Collateralized debt obligations — 6 — 6 Other asset-backed — 8 — 8 Cash 8 — — 8 Loans receivable at fair value: Residential loans receivable — — 136 136 Loan repurchase commitments — — 486 486 Other assets: Currency derivatives — — 8 8 Other — — 18 18 Total assets $ 1,058 $ 2,519 $ 649 $ 4,277 Liabilities: Medium-term notes $ — $ — $ 108 $ 108 Derivative liabilities: Insured derivatives: Credit derivatives — 2 7 9 Non-insured derivatives: Interest rate derivatives — 132 — 132 Other — — 34 34 Other liabilities: Other payable — — 4 4 Liabilities of consolidated VIEs: Variable interest entity notes — 56 347 403 Total liabilities $ — $ 190 $ 500 $ 690 (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. Level 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 December 31, 2020 and 2019. The majority of the financial assets and liabilities that the Company requires 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. Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Significant Fair Value Carry Value Liabilities: Long-term debt $ — $ 631 $ — $ 631 $ 2,229 Medium-term notes — — 396 396 598 Investment agreements — — 376 376 269 Liabilities of consolidated Variable interest entity — 276 — 276 273 Total liabilities $ — $ 907 $ 772 $ 1,679 $ 3,369 Financial Guarantees: Gross liability (recoverable) $ — $ — $ 811 $ 811 $ (282) Ceded recoverable (liability) — — 45 45 (17) Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Significant Fair Value Carry Value Assets: Assets of consolidated VIEs: Investments held-to-maturity $ — $ — $ 892 $ 892 $ 890 Total assets $ — $ — $ 892 $ 892 $ 890 Liabilities: Long-term debt $ — $ 1,073 $ — $ 1,073 $ 2,228 Medium-term notes — — 396 396 570 Investment agreements — — 394 394 304 Liabilities of consolidated VIEs: Variable interest entity notes — 261 892 1,153 1,136 Total liabilities $ — $ 1,334 $ 1,682 $ 3,016 $ 4,238 Financial Guarantees: Gross liability (recoverable) $ — $ — $ 556 $ 556 $ (311) Ceded recoverable (liability) — — 56 56 24 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 years ended December 31, 2020 and 2019: Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2020 In millions Balance, Total Unrealized (1) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in Change in (1) Assets: Other asset-backed $ 1 $ — $ — $ — $ — $ (1) $ — $ — $ — $ — $ — $ — Assets of consolidated VIEs: Loans receivable-residential 136 — — — — (16) — — — 120 (4) — Loan repurchase commitments 486 118 — — — — — — — 604 118 — Currency derivatives 8 (2) — — — — — — — 6 (2) — Other 18 (4) — — — — — — — 14 (4) — Total assets $ 649 $ 112 $ — $ — $ — $ (17) $ — $ — $ — $ 744 $ 108 $ — In millions Balance, Total Unrealized (2) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in as of Change in as of (2) Liabilities: Medium-term notes $ 108 $ 15 $ (13) $ — $ — $ — $ — $ — $ — $ 110 $ 15 $ (13) Credit derivatives 7 (6) — — — (1) — — — — — — Other derivatives 34 15 — — — — — — — 49 15 — Other payable 4 — — — — (4) — — — — — — Liabilities of consolidated VIEs: VIE notes 347 11 (40) — — (15) — — — 303 5 (38) Total liabilities $ 500 $ 35 $ (53) $ — $ — $ (20) $ — $ — $ — $ 462 $ 35 $ (51) (1)—Reported within the “Unrealized gains (losses) on available-for-sale (2)—Reported within the “Instrument-specific credit risk of liabilities measured at fair value” on MBIA’s Consolidated Statement of Comprehensive Income/Loss. Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 201 9 In millions Balance, Total Unrealized Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in 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 35 — — — (23) (48) — — 136 26 Loan repurchase commitments 418 68 — — — — — — — 486 68 Currency derivatives 17 (9) — — — — — — — 8 (9) Other 14 4 — — — — — — — 18 4 Total assets $ 637 $ 97 $ (1) $ — $ — $ (29) $ (49) $ — $ (6) $ 649 $ 89 In millions Balance, Total Unrealized Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in Liabilities: Medium-term notes $ 102 $ — $ 6 $ — $ — $ — $ — $ — $ — $ 108 $ — Credit derivatives 33 (15) — — — (11) — — — 7 (25) Other derivatives 7 27 — — — — — — — 34 27 Other payable 5 2 — — — (3) — — — 4 2 Liabilities of consolidated VIEs: VIE notes 366 45 11 — 10 (25) (60) — — 347 21 Total liabilities $ 513 $ 59 $ 17 $ — $ 10 $ (39) $ (60) $ — $ — $ 500 $ 25 (1)—Transferred in and out at the end of the period. For the year ended December 31, 2019, 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 year ended December 31, 2019, there were no transfers into Level 3 and out of Level 2. CMBS and corporate obligations comprised 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. Gains and losses (realized and unrealized) included in earnings relating to Level 3 assets and liabilities for the years ended December 31, 2020, 2019 and 2018 are reported on the Company’s consolidated statements of operations as follows: In millions Total Gains (Losses) Change in Unrealized Gains (Losses) for Assets and Liabilities still held as of December 31, 2020 2019 2018 2020 2019 2018 Revenues: Unrealized gains (losses) on insured derivatives $ 7 $ 25 $ 30 $ — $ 25 $ 30 Realized gains (losses) and other settlements on insured derivatives (1) (10) (56) — — — Net gains (losses) on financial instruments at fair value and foreign exchange (30) (26) 17 (30) (27) 8 Net investment losses related to other-than-temporary impairments — (1) — — — — Other net realized gains (losses) — (2) (1) — (2) (1) Revenues of consolidated VIEs: Net gains (losses) on financial instruments at fair value and foreign exchange 101 53 25 103 68 17 Total $ 77 $ 39 $ 15 $ 73 $ 64 $ 54 Fair Value Option The Company elected to record at fair value certain financial instruments that are consolidated in connection with the adoption of the accounting guidance for consolidation of VIEs, among others. The following table presents the gains and (losses) included in the Company’s consolidated statements of operations for the years ended December 31, 2020, 2019 and 2018 for financial instruments for which the fair value option was elected: Years Ended December 31, In millions 2020 2019 2018 Investments carried at fair value (1) $ 2 $ 15 $ (11) Fixed-maturity securities held at fair value-VIE (2) 4 95 (25) Loans receivable and other instruments at fair value: Residential mortgage loans (2) — 35 (100) Corporate loans and other instruments (2) — — 11 Loan repurchase commitments (2) 118 68 12 Other assets-VIE (2) (4) 4 — Medium-term notes (1) (15) 1 19 Other liabilities (3) — (2) (2) Variable interest entity notes (2) (12) (89) 118 (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. The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of December 31, 2020 and 2019 for loans and notes for which the fair value option was elected: As of December 31, 2020 As of December 31, 2019 In millions Contractual Fair Difference Contractual Fair Difference Loans receivable at fair value: Residential mortgage loans—current $ 89 $ 89 $ — $ 107 $ 107 $ — Residential mortgage loans (90 days or more past due) 147 31 116 154 29 125 Total loans receivable and other instruments at fair value $ 236 $ 120 $ 116 $ 261 $ 136 $ 125 Variable interest entity notes $ 1,117 $ 350 $ 767 $ 1,126 $ 403 $ 723 Medium-term notes $ 122 $ 110 $ 12 $ 112 $ 108 $ 4 The differences between the contractual outstanding principal and the fair values on loans receivable, VIE notes and MTNs, in the preceding table, are primarily attributable to credit risk. This is due to the high rate of defaults on loans (90 days or more past due), the collateral supporting the VIE notes and the nonperformance risk of the Company on its MTNs, which resulted in depressed pricing of the financial instruments. Instrument-Specific Credit Risk of Liabilities Elected Under the Fair Value Option As of December 31, 2020 and 2019, the cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option were losses of $51 million and $107 million, respectively, reported in “Accumulated other comprehensive income” on the Company’s consolidated balance sheets. Changes in value attributable to instrument-specific credit risk were derived principally from changes in the Company’s credit spread. For liabilities of VIEs, additional adjustments to instrument-specific credit risk are required, which is determined by an analysis of deal specific performance of collateral that support these liabilities. During the years ended December 31, 2020, 2019 and 2018, the portions of instrument-specific credit risk included in AOCI that were recognized in earnings due to settlement of liabilities were losses of $6 million, $28 million and $97 million, respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Investments | Note 8: Investments Investments, excluding those elected under the fair value option, include debt and equity securities classified as AFS. The following table presents the amortized cost, allowance for credit losses, corresponding gross unrealized gains and losses and fair value for AFS investments in the Company’s consolidated investment portfolio as of December 31, 2020: December 31, 2020 In millions Amortized Allowance Gross Gross Fair AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 775 $ — $ 75 $ (1) $ 849 State and municipal bonds 162 — 32 — 194 Foreign governments 11 — 1 — 12 Corporate obligations 827 — 64 (1) 890 Mortgage-backed securities: Residential mortgage-backed agency 305 — 8 (1) 312 Residential mortgage-backed non-agency 22 — 3 — 25 Commercial mortgage-backed 17 — 1 — 18 Asset-backed securities: Collateralized debt obligations 120 — — (2) 118 Other asset-backed 121 — — — 121 Total AFS investments $ 2,360 $ — $ 184 $ (5) $ 2,539 The following table presents 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 December 31, 2019: December 31, 2019 In millions Amortized Gross Gross Fair Other-Than- (1) AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 838 $ 46 $ (2) $ 882 $ — State and municipal bonds 178 22 — 200 — Foreign governments 8 1 — 9 — Corporate obligations 1,140 52 (1) 1,191 — Mortgage-backed securities: Residential mortgage-backed agency 317 3 — 320 — Residential mortgage-backed non-agency 23 1 (5) 19 — Commercial mortgage-backed 20 — — 20 — Asset-backed securities: Collateralized debt obligations 139 — (2) 137 — Other asset-backed 321 1 (1) 321 — Total AFS investments $ 2,984 $ 126 $ (11) $ 3,099 $ — HTM Investments Assets of consolidated VIEs: Corporate obligations $ 890 $ 2 $ — $ 892 $ — Total HTM investments $ 890 $ 2 $ — $ 892 $ — (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. HTM investments declined due to the early redemption of assets and liabilities within structured finance VIEs that were deconsolidated during 2020. The following table presents the distribution by contractual maturity of AFS fixed-maturity securities at amortized cost, net of allowance for credit losses, and fair value as of December 31, 2020. Contractual maturity may differ from expected maturity as borrowers may have the right to call or prepay obligations. AFS Securities In millions Net Fair Due in one year or less $ 509 $ 511 Due after one year through five years 363 379 Due after five years through ten years 266 296 Due after ten years 637 759 Mortgage-backed and asset-backed 585 594 Total fixed-maturity investments $ 2,360 $ 2,539 Deposited and Pledged Securities The fair value of securities on deposit with various regulatory authorities as of December 31, 2020 and 2019 was $11 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 December 31, 2020 and 2019, the fair value of securities pledged as collateral for these investment agreements approximated $282 Refer to “Note 9: Derivative Instruments” for information about securities posted to derivative counterparties. Impaired Investments The following tables present the non-credit related gross unrealized losses related to AFS investments as of December 31, 2020 and 2019: December 31, 2020 Less than 12 Months 12 Months or Longer Total In millions Fair Unrealized Fair Unrealized Fair Unrealized AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 99 $ (1) $ — $ — $ 99 $ (1) Foreign governments 2 — — — 2 — Corporate obligations 103 (1) 7 — 110 (1) Mortgage-backed securities: Residential mortgage-backed agency 53 (1) — — 53 (1) Residential mortgage-backed non-agency 2 — 1 — 3 — Commercial mortgage-backed — — 5 — 5 — Asset-backed securities: Collateralized debt obligations 37 — 78 (2) 115 (2) Other asset-backed 29 — — — 29 — Total AFS investments $ 325 $ (3) $ 91 $ (2) $ 416 $ (5) December 31, 2019 Less than 12 Months 12 Months or Longer Total In millions Fair Unrealized Fair Unrealized Fair Unrealized AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 148 $ (1) $ 79 $ (1) $ 227 $ (2) State and municipal bonds 11 — 15 — 26 — Corporate obligations 53 (1) 10 — 63 (1) Mortgage-backed securities: Residential mortgage-backed agency 62 — 7 — 69 — Residential mortgage-backed non-agency — — 11 (5) 11 (5) Commercial mortgage-backed 5 — — — 5 — Asset-backed securities: Collateralized debt obligations 44 — 77 (2) 121 (2) Other asset-backed 48 (1) 7 — 55 (1) Total AFS investments $ 371 $ (3) $ 206 $ (8) $ 577 $ (11) Gross unrealized losses on AFS investments decreased as of December 31, 2020 compared with December 31, 2019 primarily due to lower interest rates, partially offset by widening 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 December 31, 2020 and 2019 was 9 and 10 years, respectively. As of December 31, 2020 and 2019, there were 42 and 63 securities, respectively, that were in an unrealized loss position for a continuous twelve-month period or longer, of which, fair values of 9 and 16 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 December 31, 2020: AFS Securities Percentage of Fair Value Below Book Value Number of Book Value Fair Value > 5% to 15% 6 $ 3 $ 3 > 15% to 25% 1 — — > 50% 2 — — Total 9 $ 3 $ 3 Impaired securities that the Company intends to sell before the expected recovery of such securities’ fair values have been written down to fair value. During the second quarter of 2020, the Company impaired intent to sell securities in an unrealized loss position to fair value. These securities were subsequently sold in the third quarter of 2020. As of December 31, 2020, 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 December 31, 2020 that would require the sale of impaired securities. Credit Losses on Investments In calculating credit-related losses, the Company uses cash flow modeling based on the type of security. The Company’s cash flow analysis considers all sources of cash that support the payment of amounts owed by an issuer of a security. For AFS investments, this includes the credit enhancement taking into the consideration of cash expected to be provided by financial guarantors, including MBIA Corp. and National, resulting from an actual or potential insurance policy claim. In general, any change in the amount and/or timing of cash flows received or expected to be received, whether or not such cash flows are contractually defined, is reflected in the Company’s cash flow analysis for purposes of assessing a credit loss on an impaired security. Each quarter, an internal committee, comprising staff that is independent of the Company’s evaluation process for determining credit losses of securities, reviews and approves the valuation of investments. Among other responsibilities, this committee ensures that the Company’s process for identifying and calculating allowance for credit losses, including the use of models and assumptions, is reasonable and complies with the Company’s internal policy. Determination of Credit Losses on ABS, MBS and Corporate Obligations AFS ABS investments are evaluated for credit loss using historical collateral performance, deal waterfall and structural protections, credit ratings, and forward looking projections of collateral performance based on business and economic conditions specific to each collateral type and risk. The underlying collateral is evaluated to identify any specific performance concerns, and stress scenarios are considered in forecasting ultimate returns of principal. Based on this evaluation, if a principal default is projected for a security, estimated future cash flows are discounted at the security’s effective interest rate used to recognize interest income on the security. For CDO investments, the Company uses the same tools as its RMBS investments discussed below, aggregating the bond level cash flows to the CDO investment level. If the present value of cash flows is less than the Company’s amortized cost for the security, the difference is recorded as a credit loss. AFS RMBS investments are evaluated for credit losses using several quantitative tools. Loan level data is obtained and analyzed in a model that produces prepayment, default, and severity vectors. The model uses macro inputs, including housing price assumptions and interest rates. The vector outputs are used as inputs to a third-party cash flow model, which considers deal waterfall dynamics and structural features, to generate cash flows for an RMBS investment. The expected cash flows of the security are then discounted at the interest rate used to recognize interest income of the security to arrive at a present value amount. If the present value of the cash flows is less than the Company’s amortized cost for the investment, the difference is recorded as a credit loss. For AFS corporate obligation investments, credit losses are evaluated using credit analysis techniques. The Company’s analysis includes a detailed review of a number of quantitative and qualitative factors impacting the value of an individual security. These factors include the interest rate of the security (fixed or floating), the security’s current market spread, any collateral supporting the security, the security’s position in the issuer’s capital structure, and credit rating upgrades or downgrades. Additionally, these factors include an assessment of various issuer-related credit metrics including market capitalization, earnings, cash flow, capitalization, interest coverage, leverage, liquidity and management. The Company’s analysis is augmented by comparing market prices for similar securities of other issuers in the same sector, as well as any recent corporate or government actions that may impact the ultimate return of principal. If the Company determines that a principal default is projected, a recovery analysis is performed using the above data. If the Company’s estimated recovery value for the security is less than its amortized cost, the difference is recorded as a credit loss. For HTM corporate obligation investments, credit losses are evaluated based on quarterly estimates of the probability-weighted amount of principal and interest cash flows expected to be collected over the estimated remaining lives of the security. Developing the Company’s probability-weighted expected future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions regarding the future performance. The Company’s considerations include, but are not limited to, (a) changes in the financial conditions of the security’s underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) changes in the financial condition, credit rating and near-term prospects of the issuer, (d) level of excess cash flows generated from the underlying collateral supporting the principal and interest payments of the security. Estimates of collectability require the use of significant management judgment and include the probability and timing of issuer’s default and loss severity estimates. In addition, cash flow projections may change when these factors are reviewed and updated as appropriate. Determination of Credit Loss Guaranteed by the Company on Other Third-Party Guarantors The Company does not recognize credit losses on securities insured by MBIA Corp. and National since those securities, whether or not owned by the Company, are evaluated for impairments in accordance with its loss reserving policy. Refer to “Note 2: Significant Accounting Policies” included herein for information about the Company’s loss reserving policy and “Note 6: Loss and Loss Adjustment Expense Reserves” for information about loss reserves. The following table provides information about securities held by the Company as of December 31, 2020 that were in an unrealized loss position and insured by a financial guarantor, along with the amount of insurance loss reserves corresponding to the par amount owned by the Company. The Company did not hold any securities in an unrealized loss position that were insured by a third-party financial guarantor as of December 31, 2020. In millions Fair Unrealized Insurance Loss (1) Mortgage-backed $ 3 $ — $ 1 Total $ 3 $ — $ 1 (1)—Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured. Allowance for Credit Losses Rollforward The Company did not establish an allowance for credit losses for AFS securities as of December 31, 2020 or purchase any credit-deteriorated assets for the year ended December 31, 2020. The following table presents the rollforward of the allowance for credit losses on HTM investments for the year ended December 31, 2020. As of December 31, 2020, the allowance for credit losses was reduced to zero as a result of the repayment of the assets, at par, during the fourth quarter of 2020. Year Ended December 31, 2020 In millions Balance (1) Current Initial Write-Offs Recoveries Balance as of HTM Investments Assets of consolidated VIEs: Corporate obligations $ 37 $ (37) $ — $ — $ — $ — Total Allowance on HTM investments $ 37 $ (37) $ — $ — $ — $ — (1)—Represents transition adjustment upon adoption of ASU 2016-13. Credit Loss Rollforward for AFS The portion of certain unrealized losses on fixed-maturity securities that does not represent credit losses is recognized in AOCI. For these impairments, the net amount recognized in earnings represents the difference between the amortized cost of the security and the net present value of its projected future discounted cash flows prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in AOCI. The following table presents the amount of credit loss impairments recognized in earnings on fixed-maturity securities held by MBIA as of the dates indicated, for which a portion of the non-credit related losses was recognized in AOCI, and the corresponding changes in such amounts. The additional credit loss impairments on securities previously impaired for the year ended December 31, 2018 primarily related to a corporate obligation that incurred liquidity concerns, ongoing credit risk and other adverse financial conditions. In 2019, due to the Company’s intent to sell, this security was impaired to fair value with any incremental impairment recorded as a credit loss impairments in earnings, as well as a reduction of inception-to-date In millions Years Ended December 31, Credit Losses Recognized in Earnings Related to OTTI 2019 2018 Beginning balance $ 37 $ 32 Additions for credit loss impairments recognized in the current period on securities previously impaired 67 5 Reductions for credit loss impairments previously recognized on securities impaired to fair value during the period (104) — Ending balance $ — $ 37 Sales of Available-for-Sale Investments 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 years ended December 31, 2020, 2019 and 2018 are as follows: Years Ended December 31, In millions 2020 2019 2018 Proceeds from sales $ 1,095 $ 2,195 $ 2,117 Gross realized gains $ 59 $ 103 $ 6 Gross realized losses $ (15) $ (4) $ (19) Equity Investments Unrealized gains and losses recognized on equity investments held as of the end of each period for the years ended December 31, 2020, 2019 and 2018 are as follows: Years Ended In millions 2020 2019 2018 Net gains and (losses) recognized during the period on equity securities $ 3 $ 11 $ (4) Less: Net gains and (losses) recognized during the period on equity securities sold during the period (1) 1 1 Unrealized gains and (losses) recognized during the $ 4 $ 10 $ (5) |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Derivative Instruments | Note 9: 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. Changes in the fair values of the Company’s insured derivatives within its U.S. Public Finance segment are included in “Net change in fair value of insured derivatives” on the Company’s consolidated statements of operations. 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. Changes in the fair values of the Company’s derivatives within its Corporate segment are included in “Net gains (losses) on financial instruments at fair value and foreign exchange” on the Company’s consolidated statements of operations. International and Structured Finance Insurance During the fourth quarter of 2020, the Company terminated its remaining insured CDS contract carried at fair value, which was entered into to provide financial guarantee insurance to a structured finance transaction that did not qualify for the financial guarantee insurance scope exception. As of December 31, 2020, the Company’s derivative exposure within its international and structured finance insurance segment includes insured interest rate and inflation-linked swaps related to insured debt issues. Changes in the fair values of the Company’s insured derivatives within its International and Structured Finance segment are included in “Net change in fair value of insured derivatives” on the Company’s consolidated statements of operations. The Company has also entered into a derivative contract in connection with the commutation of certain insurance exposure, which occurred in 2014. Changes in the fair value of this non-insured Variable Interest Entities A VIE consolidated by the Company is party to a cross currency swap, which was entered into to manage the variability in cash flows resulting from fluctuations in foreign currency rates. Changes in the fair value of the VIE derivative are included in “Net gains (losses) on financial instruments at fair value and foreign exchange-VIE” on the Company’s consolidated statements of operations. Credit Derivatives Sold The following tables present information about credit derivatives sold by the Company’s insurance operations that were outstanding as of December 31, 2020 and 2019. Credit ratings represent the lower of underlying ratings assigned to the collateral by Moody’s Investor Services (“Moody’s”), Standard & Poor’s Financial Services, LLC (“S&P”) or MBIA. $ in millions As of December 31, 2020 Notional Value Credit Derivatives Sold Weighted AAA AA A BBB Below Total Fair Value Insured swaps 13.9 Years $ — $ 58 $ 1,327 $ 358 $ — $ 1,743 $ (2) Total notional $ — $ 58 $ 1,327 $ 358 $ — $ 1,743 Total fair value $ — $ — $ (1) $ (1) $ — $ (2) $ in millions As of December 31, 2019 Notional Value Credit Derivatives Sold Weighted AAA AA A BBB Below Total Fair Value Insured credit default swaps 1.0 Years $ — $ — $ — $ — $ 32 $ 32 $ (7) Insured swaps 14.0 Years — 121 (1) 1,371 (2) 433 (3) — 1,925 (4) (2) Total notional $ — $ 121 $ 1,371 $ 433 $ 32 $ 1,957 Total fair value $ — $ — $ (1) $ (1) $ (7) $ (9) (1)—The Company revised its previously reported amount of $66 million to $121 million. (2)—The Company revised its previously reported amount of $1,284 million to $1,371 million. (3)—The Company revised its previously reported amount of $445 million to $433 million. (4)—The Company revised its previously reported amount of $1,795 million to $1,925 million. Internal credit ratings assigned by MBIA on the underlying credit exposures are assigned by the Company’s surveillance group. In assigning an internal rating, current status reports from issuers and trustees, as well as publicly available transaction-specific information, are reviewed. The maximum potential amount of future payments (undiscounted) on insured swaps that are primarily insured interest rate swaps is estimated as the net interest settlements plus principal payments where applicable, on amortizing swaps. MBIA may hold recourse provisions through subrogation rights of the swap counterparty, whereby if MBIA makes a claim payment, it may be entitled to receive net swap settlements from the issuer under the swap agreement. Counterparty Credit Risk The Company manages counterparty credit risk on an individual counterparty basis through master netting agreements covering derivative instruments in the corporate segment. These agreements allow the Company to contractually net amounts due from a counterparty with those amounts due to such counterparty when certain triggering events occur. The Company only executes swaps under master netting agreements, which typically contain mutual credit downgrade provisions that generally provide the ability to require assignment or termination in the event either MBIA or the counterparty is downgraded below a specified credit rating. Under these agreements, the Company may receive or provide cash, U.S. Treasury or other highly rated securities to secure counterparties’ exposure to the Company or its exposure to counterparties, respectively. Such collateral is available to the holder to pay for replacing the counterparty in the event that the counterparty defaults. As of December 31, 2020 and 2019, the Company did not hold or post cash collateral to derivative counterparties. As of December 31, 2020 and 2019, the Company had securities with a fair value of $214 million and $181 million, respectively, posted to derivative counterparties and these amounts are included within “Fixed-maturity securities held as available-for-sale, at fair value” on the Company’s consolidated balance sheets. As of December 31, 2020 and 2019, the fair value on one Credit Support Annex (“CSA”) was $1 million. This CSA governs collateral posting requirements between MBIA and its derivative counterparties. The Company did not receive collateral due to the Company’s credit rating, which was below the CSA minimum credit ratings level for holding counterparty collateral. As of December 31, 2020 and 2019, the counterparty was rated Aa3 by Moody’s and A+ by S&P. Financial Statement Presentation The fair value of amounts recognized for eligible derivative contracts executed with the same counterparty under a master netting agreement, including any cash collateral that may have been received or posted by the Company, is presented on a net basis in accordance with accounting guidance for the offsetting of fair value amounts related to derivative instruments. Insured 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. In millions Derivative Assets (1) Derivative Liabilities (1) Derivative Instruments Notional Balance Sheet Location Fair Balance Sheet Location Fair Not designated as hedging instruments: Insured swaps $ 1,743 Other assets $ — Derivative liabilities $ (2) Interest rate swaps 437 Other assets 1 Derivative liabilities (164) Interest rate swaps-embedded 252 Medium-term notes — Medium-term notes (10) Currency swaps-VIE 53 Other assets-VIE 6 Derivative liabilities-VIE — All other 49 Other assets — Derivative liabilities (49) Total non-designated derivatives $ 2,534 $ 7 $ (225) (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 , : In millions Derivative Assets (1) Derivative Liabilities (1) Derivative Instruments Notional Balance Sheet Location Fair Balance Sheet Location Fair Not designated as hedging instruments: Insured credit default swaps $ 32 Other assets $ — Derivative liabilities $ (7) Insured swaps 1,925 (2) Other assets — Derivative liabilities (2) Interest rate swaps 441 Other assets 1 Derivative liabilities (132) Interest rate swaps-embedded 232 Medium-term notes — Medium-term notes (15) Currency swaps-VIE 58 Other assets-VIE 8 Derivative liabilities-VIE — All other 49 Other assets — Derivative liabilities (34) Total non-designated derivatives $ 2,737 $ 9 $ (190) (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. (2)—The Company revised its previously reported amount of $1,795 The following table presents the effect of derivative instruments on the consolidated statements of operations for the years ended December 31, 2020, 2019 and 2018: In millions Years Ended December 31, Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2020 2019 2018 Insured credit default swaps Unrealized gains (losses) on insured derivatives $ 7 $ 25 $ 31 Insured credit default swaps Realized gains (losses) and other settlements on insured derivatives (1 ) (10 ) (56 ) Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange (42 ) (66 ) 4 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE (2 ) (8 ) (2 ) All other Net gains (losses) on financial instruments at fair value and foreign exchange (15 ) (26 ) (4 ) Total $ (53) $ (85) $ (27) |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 10: Debt Long-Term Debt The Company’s long-term debt consists of notes and debentures including accrued interest as follows: As of December 31, In millions 2020 2019 6.400% Senior Notes due 2022 $ — $ 115 7.000% Debentures due 2025 46 46 7.150% Debentures due 2027 100 100 6.625% Debentures due 2028 141 141 5.700% Senior Notes due 2034 (1) 21 21 Surplus Notes due 2033 (2) 940 940 Accrued interest 991 877 Debt issuance costs (10) (12) Total $ 2,229 $ 2,228 (1)—Callable anytime at the greater of par or the present value of the remaining scheduled payments of principal and interest. (2)—Contractual interest rate is based on three month LIBOR plus 11.26%. During 2020 and 2019, the Company redeemed $115 million and $150 million, respectively, principal amount of its 6.400% Senior Notes due 2022 at a cost of 100% of par value plus accrued interest. In addition to the preceding table, as of December 31, 2020, National owned $308 million principal amount of the 5.700% Senior Notes due 2034 and $10 million principal amount of MBIA Inc. 7.000% Debentures due 2025, and MBIA Inc., through its corporate segment, owned $13 million of MBIA Corp. surplus notes. These amounts are eliminated in the Company’s consolidated financial statements. Interest and principal payments on the surplus notes are subject to prior approval by the NYSDFS. From the January 15, 2013 interest payment to the present, MBIA Corp.’s requests for approval of the note interest payments have not been approved by the NYSDFS. MBIA Corp. provides notice to the Fiscal Agent when it will not make a scheduled interest payment. The deferred interest payment will become due on the first business day on or after which MBIA Corp. obtains approval to make such payment. No interest will accrue on the deferred interest. The surplus notes were callable at par at the option of MBIA Corp. on the fifth anniversary of the date of issuance, and are callable at par on January 15, 2023 and every fifth anniversary thereafter and are callable on any other date at par plus a make-whole amount, subject to prior approval by the Superintendent and other restrictions. The cash received from the issuance of surplus notes was used for general business purposes and the deferred debt issuance costs are being amortized over the term of the surplus notes. The aggregate maturities of principal payments of long-term debt obligations in each of the next five years ending December 31, and thereafter, are as follows: In millions 2021 2022 2023 2024 2025 Thereafter Total Corporate debt $ — $ — $ — $ — $ 46 $ 262 $ 308 Surplus Notes due 2033 — — — — — 940 940 Total debt obligations due $ — $ — $ — $ — $ 46 $ 1,202 $ 1,248 Investment Agreements Certain investment agreements provide for early termination, including, in some cases, with make-whole payments, upon certain contingent events including the bankruptcy of MBIA Inc. or the commencement of an insolvency proceeding with respect to MBIA Corp. Upon the occurrence of certain contractually agreed-upon events, some of these funds may be withdrawn by the investor prior to their contractual maturity dates. All of the investment agreements have been collateralized in accordance with the contractual terms. Investment agreements have been issued with fixed interest rates in U.S. dollars. As of December 31, 2020 and 2019, the annual interest rates on these agreements ranged from 4.78% to 6.88% and the weighted average interest rates were 5.86%. Expected principal payments due under these investment agreements in each of the next five years ending December 31, and thereafter, based upon contractual maturity dates, are as follows: In millions Principal Amount Maturity date: 2021 $ 2 2022 3 2023 19 2024 23 2025 35 Thereafter (through 2037) 225 Total expected principal payments (1) $ 307 Less discount and other adjustments (2) 38 Total $ 269 (1)—Amounts reflect principal due at maturity for investment agreements issued at a discount. (2)—Discount is net of carrying amount adjustment of $3 million and accrued interest adjustment of $4 million. Medium-Term Notes MTNs are denominated in U.S. dollars or non-USD currencies and accrue interest based on fixed or floating interest rates. Certain MTNs are measured at fair value in accordance with the accounting guidance in Accounting Standards Codification (“ASC”) Topic 815, “Derivatives and Hedging”. As of December 31, 2020 and 2019, the interest rates of the MTNs ranged from 0% to 6.00% and the weighted average interest rates were 2.97% and 3.07%, respectively. Expected principal payments due under MTN obligations based on their contractual maturity dates are as follows: In millions Principal Amount Maturity date: 2021 $ — 2022 62 2023 12 2024 123 2025 61 Thereafter (through 2036) 659 Total expected principal payments (1) $ 917 Less discount and other adjustments (2) 207 Total $ 710 (1)—Amounts reflect principal due at maturity for notes issued at a discount. (2)—Discount is net of carrying amount and market value adjustments of $29 million and accrued interest adjustment of $4 million. Variable Interest Entity Notes VIE notes elected to be recorded at fair value are debt instruments that were issued primarily in U.S. dollars by consolidated VIEs within the Company’s international and structured finance insurance segment. These VIE notes consist of debt instruments issued by issuer-sponsored consolidated VIEs collateralized by assets held by those consolidated VIEs. Holders of insured obligations of issuer-sponsored VIEs do not have recourse to the general assets of the Company. In the event of non-payment of an obligation issued by a consolidated VIE, the Company is obligated to pay principal and interest, when due, on MBIA-insured obligations only. In July of 2019, MBIA Insurance Corporation 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 Refinanced Facility, original notes issued by MZ Funding in January of 2017 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 (and together with the Insured Senior Notes, the “New MZ Funding Notes”) with an aggregate principal amount of $54 million. As of December 31, 2020 and 2019, the consolidated outstanding amount of the Refinanced Facility was $273 million and $246 million, respectively. The New MZ Funding Notes mature on January 20, 2022 and bear interest at 12% per annum. The Refinanced Facility is secured by a first priority security interest in all of MBIA Corp.’s right, title and interest in the recovery of its claims from the assets of Zohar I and Zohar II which include, among other things, loans made to, and equity interests in, certain portfolio companies purportedly controlled by the Zohar Sponsor and claims that may exist against the Zohar Sponsor. If funds received from MBIA Corp. under the Refinanced Facility are insufficient to pay interest on interest payment dates, MZ Funding may elect to pay interest in kind, which increases the outstanding principal amount. 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 As of December 31, 2020 and 2019, the aggregate unpaid contractual principal of consolidated VIE notes was $1.4 billion and $2.3 billion, respectively. As of December 31, 2020 and 2019, the unpaid contractual principal of MBIA-insured consolidated VIE notes was $722 million and $1.6 billion, respectively, which excludes liabilities where the Company’s insured exposure has been fully offset by way of loss remediation transactions. Refer to “Note 7: Fair Value of Financial Instruments” for information about the fair values of consolidated VIE notes. As of December 31, 2020, the only remaining VIE note not accounted for at fair value is the MZ Funding note with a contractual interest rate of 12%. As of December 31, 2019, for VIE notes not accounted for at fair value, contractual interest rates ranged from 3.71% to 12.00% and the weighted average interest rate was 5.57%. The following table provides the expected principal payments due under MBIA-insured consolidated VIE notes as of December 31, 2020. For RMBS consolidated VIEs, principal amounts are based on the expected maturity dates and for all other consolidated VIEs, principal amounts are based on the contractual maturity dates. In millions Insured Principal Amount Maturity date: 2021 $ 42 2022 308 2023 28 2024 14 2025 24 Thereafter (through 2038) 306 Total $ 722 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11: Income Taxes Income (loss) from operations before provision (benefit) for income taxes consisted of: Years Ended December 31, In millions 2020 2019 2018 Domestic $ (578) $ (357) $ (287) Foreign — — (9) Income (loss) before income taxes $ (578) $ (357) $ (296) The Company files a consolidated tax return that includes all of its U.S. subsidiaries and foreign branches. The Company also files tax returns in Spain, Mexico, and various state and local jurisdictions. Income tax expense (benefit) on income (loss) and shareholders’ equity consisted of: Years Ended December 31, In millions 2020 2019 2018 Current taxes: Federal $ — $ — $ — State — 2 1 Deferred taxes: Federal — — (1) Foreign — — — Provision (benefit) for income taxes — 2 — Income taxes charged (credited) to shareholders’ equity related to: Change in unrealized gains (losses) on AFS securities — — 5 Change in AFS securities with OTTI — — — Change in foreign currency translation — — — Total income taxes charged (credited) to shareholders’ equity — — 5 Total effect of income taxes $ — $ 2 $ 5 A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate for the years ended December 31, 2020, 2019 and 2018 is presented in the following table: Years Ended December 31, 2020 2019 2018 Federal income tax computed at the statutory rate 21.0% 21.0% 21.0% Increase (reduction) in taxes resulting from: Mark-to-market on warrants 0.0% 0.0% (0.7)% Change in valuation allowance (20.3)% (20.7)% (20.9)% State income tax, net of federal benefit 0.0% (0.4)% 0.0% Deferred inventory adjustments 0.0% 0.0% (1.0)% Other (0.7)% (0.5)% 1.6% Effective tax rate 0.0% (0.6)% 0.0% Deferred Tax Asset, Net of Valuation Allowance The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on tax assets and liabilities is recognized in income in the period that includes the enactment date. Valuation allowances are established to reduce deferred tax assets to the amount that more likely than not will be realized. The tax effects of temporary differences that give rise to deferred tax assets and liabilities as of December 31, 2020 and 2019 are presented in the following table: As of In millions December 31, December 31, Deferred tax liabilities: Unearned premium revenue $ 48 $ 54 Deferred acquisition costs 10 13 Net unrealized gains and losses in accumulated other comprehensive income 25 — Net deferred taxes on VIEs 53 51 Other 6 — Total gross deferred tax liabilities 142 118 Deferred tax assets: Compensation and employee benefits 9 8 Accrued interest 210 185 Partnership basis difference 10 10 Loss and loss adjustment expense reserves 98 101 Net operating loss 656 590 Foreign tax credits 61 61 Other-than-temporary impairments — 2 Net unrealized gains and losses on insured derivatives 10 9 Net gains and losses on financial instruments at fair value and foreign exchange 54 21 Other — 4 Total gross deferred tax assets 1,108 991 Valuation allowance 966 873 Net deferred tax asset $ — $ — The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of its existing deferred tax assets. A significant piece of objective negative evidence evaluated was the Company having a three-year cumulative loss. Such objective evidence limits the ability to consider other subjective evidence, such as the Company’s projections of pre-tax income. On the basis of this evaluation, the Company has recorded a full valuation allowance against its net deferred tax asset of $966 million and $873 million as of December 31, 2020 and 2019, respectively. The Company will continue to analyze the valuation allowance on a quarterly basis. NOLs of property and casualty insurance companies are permitted to be carried back two years and carried forward 20 years, except where modified by the CARES Act as outlined below. NOLs of property and casualty insurance companies are not subject to the 80 percent taxable income limitation and indefinite lived carryforward period required by the Tax Cuts and Jobs Act applicable to general corporate NOLs. Treatment of Undistributed Earnings of Certain Foreign Subsidiaries—“Accounting for Income Taxes—Special Areas” The Company’s amount of undistributed earnings of certain foreign subsidiaries was not material as of December 31, 2020. Accounting for Uncertainty in Income Taxes The Company’s policy is to record and disclose any change in 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 December 31, 2020 and 2019, the Company had no UTB. Federal income tax returns through 2011 have been examined or surveyed. As of December 31, 2020, the Company’s NOL is approximately $3.1 billion. NOLs generated prior to tax reform and property and casualty NOLs generated after tax reform will expire between tax years 2031 through 2040. As of December 31, 2020, the Company has a foreign tax credit carryforward of $61 million, which will expire between tax years 2021 through 2030. Section 382 of the Internal Revenue Code On May 2, 2018, MBIA Inc.’s shareholders ratified an amendment to the Company’s By-Laws, which had been adopted earlier by MBIA Inc.’s Board of Directors. The amendment places restrictions on certain acquisitions of Company stock that otherwise may have increased the likelihood of an ownership change within the meaning of Section 382 of the Internal Revenue Code. With certain exceptions, the amendment generally prohibits a person from becoming a “Section 382 five-percent shareholder” by acquiring, directly or by attribution, 5% or more of the outstanding shares of the Company’s common stock. Coronavirus Aid, Relief, and Economic Security Act On March 27, 2020, as part of the business stimulus package in response to COVID-19, Consolidated Appropriations Act On December 21, 2020, The Consolidated Appropriations Act (“Act”) passed by Congress to respond to the health and economic impacts of COVID-19. The Act includes a number of tax law changes, including the expansion of Employee Retention Credit, important changes to Paycheck Protection Program, and extension of a variety of expiring tax provisions. The legislation does not have a material impact on the Company’s tax position. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Business Segments | Note 12: 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 operating segments: 1) U.S. public finance insurance; 2) corporate; and 3) international and structured finance insurance. The Company’s U.S. public finance insurance business is operated through National and its international and structured finance insurance business is operated through MBIA Corp. The following sections provide a description of each of the Company’s reportable operating segments. U.S. Public Finance Insurance The Company’s U.S. public finance insurance portfolio is managed through National. The financial guarantees issued by National provide unconditional and irrevocable guarantees of the payment of the principal of, and interest or other amounts owing on, U.S. public finance insured obligations when due. The obligations are not subject to acceleration, except that National may have the right, at its discretion, to accelerate insured obligations upon default or otherwise. National’s guarantees insure municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utilities, airports, health care institutions, higher educational facilities, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. Municipal bonds and privately issued bonds used for the financing of public purpose projects are generally supported by taxes, assessments, fees or tariffs related to the use of these projects, lease payments or other similar types of revenue streams. Corporate The Company’s corporate segment consists of general corporate activities, including providing support services to MBIA Inc.’s subsidiaries as well as asset and capital management. Support services are provided by the Company’s service company, MBIA Services, and include, among others, management, legal, accounting, treasury, information technology, and insurance portfolio surveillance, on a fee-for-service basis. Capital management includes activities related to servicing obligations issued by MBIA Inc. and its subsidiaries, MBIA Global Funding, LLC (“GFL”) and MBIA Investment Management Corp. (“IMC”). MBIA Inc. issued debt to finance the operations of the MBIA group. GFL raised funds through the issuance of MTNs with varying maturities, which were in turn guaranteed by MBIA Corp. GFL lent the proceeds of these MTN issuances to MBIA Inc. IMC, along with MBIA Inc., provided customized investment agreements, guaranteed by MBIA Corp., for bond proceeds and other public funds for such purposes as construction, loan origination, escrow and debt service or other reserve fund requirements. The Company has ceased issuing new MTNs and investment agreements and the outstanding liability balances and corresponding asset balances have declined over time as liabilities matured, terminated or were called or repurchased. All of the debt within the corporate segment is managed collectively and is serviced by available liquidity. International and Structured Finance Insurance The Company’s international and structured finance insurance segment is principally conducted through MBIA Corp. The financial guarantees issued by MBIA Corp. generally provide unconditional and irrevocable guarantees of the payment of principal of, and interest or other amounts owing on, non-U.S. public finance and global structured finance insured obligations when due, or in the event MBIA Corp. has the right, at its discretion, to accelerate insured obligations upon default or otherwise. MBIA Corp. insures the investment contracts written by MBIA Inc., and if MBIA Inc. were to have insufficient assets to pay amounts due upon maturity or termination, MBIA Corp. would make such payments. MBIA Corp. insures debt obligations of the following affiliates: • MBIA Inc.; • GFL; • IMC; • MZ Funding LLC; and • LaCrosse Financial Products, LLC, a wholly-owned affiliate, to which MBIA Insurance Corporation had written insurance policies guaranteeing the obligations under CDS. Certain policies covered 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 derivative contracts by the insured counterparty or by the guarantor. The Company no longer insures new CDS contracts except for potential transactions related to the restructuring of existing exposures. MBIA Corp. insures non-U.S. public finance and global structured finance obligations, including asset-backed obligations. MBIA Corp. has insured sovereign-related and sub-sovereign bonds, utilities, privately issued bonds used for the financing of projects that include toll roads, bridges, airports, public transportation facilities, and other types of infrastructure projects serving a substantial public purpose. Global structured finance and asset-backed obligations typically are securities repayable from expected cash flows generated by a specified pool of assets, such as residential and commercial mortgages, insurance policies, consumer loans, corporate loans and bonds, trade and export receivables, and leases for equipment, aircraft and real estate property. MBIA Corp. has also written policies guaranteeing obligations under certain other derivative contracts, including termination payments that may become due upon certain insolvency or payment defaults of the financial guarantor or the issuer. MBIA Corp. has not written any meaningful amount of business since 2008. Segments Results The following tables provide the Company’s segment results for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 In millions U.S. Public Finance Insurance Corporate International and Structured Finance Insurance Eliminations Consolidated Revenues (1) $ 102 $ 20 $ 29 $ — $ 151 Net change in fair value of insured derivatives — — 6 — 6 Net gains (losses) on financial instruments at fair value and foreign exchange 39 (63) (14) — (38) Other net realized gains (losses) (1) — 1 — — Revenues of consolidated VIEs — — 163 — 163 Inter-segment revenues (2) 28 66 12 (106) — Total revenues 168 23 197 (106) 282 Losses and loss adjustment 163 — 367 — 530 Operating 14 69 14 — 97 Interest — 65 113 — 178 Expenses of consolidated VIEs — — 55 — 55 Inter-segment expenses (2) 45 22 39 (106) — Total expenses 222 156 588 (106) 860 Income (loss) before income taxes $ (54) $ (133) $ (391) $ — $ (578) Identifiable assets $ 3,644 $ 954 $ 3,671 $ (2,518) (3) $ 5,751 (1)—Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. (2)—Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. (3)—Consists principally of intercompany reinsurance balances. Year Ended December 31, 2019 In millions U.S. Corporate International Eliminations Consolidated Revenues (1) $ 139 $ 27 $ 34 $ — $ 200 Net change in fair value of insured derivatives — — 15 — 15 Net gains (losses) on financial instruments at fair value and foreign exchange 139 (54) (33) — 52 Net investment losses related to other-than-temporary impairments (67) — — — (67) Net gains (losses) on extinguishment of debt — (1) — — (1) Other net realized gains (losses) 2 (2) 4 — 4 Revenues of consolidated VIEs 21 1 55 — 77 Inter-segment revenues (2) 28 62 21 (111) — Total revenues 262 33 96 (111) 280 Losses and loss adjustment 53 — 189 — 242 Operating 13 69 21 — 103 Interest — 73 128 — 201 Expenses of consolidated VIEs — — 91 — 91 Inter-segment expenses (2) 52 23 36 (111) — Total expenses 118 165 465 (111) 637 Income (loss) before income taxes $ 144 $ (132) $ (369) $ — $ (357) Identifiable assets $ 4,019 $ 1,041 $ 4,504 $ (2,280) (3) $ 7,284 (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. Year Ended December 31, 2018 In millions U.S. Corporate International Eliminations Consolidated Revenues (1) $ 178 $ 31 $ 108 $ — $ 317 Net change in fair value of insured derivatives — — (25) — (25) Net gains (losses) on financial instruments at fair value and foreign exchange (20) 22 (19) — (17) Net investment losses related to other-than-temporary impairments (5) — — — (5) Net gains (losses) on extinguishment of debt — 3 — — 3 Other net realized gains (losses) — (2) 2 — — Revenues of consolidated VIEs — — (111) — (111) Inter-segment revenues (2) 29 45 24 (98) — Total revenues 182 99 (21) (98) 162 Losses and loss adjustment 91 — (28) — 63 Operating 18 47 26 — 91 Interest — 78 128 — 206 Expenses of consolidated VIEs — — 98 — 98 Inter-segment expenses (2) 44 20 33 (97) — Total expenses 153 145 257 (97) 458 Income (loss) before income taxes $ 29 $ (46) $ (278) $ (1) $ (296) (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. Premiums on financial guarantees and insured derivatives reported within the Company’s insurance segments are generated within and outside the U.S. The following table summarizes premiums earned on financial guarantees and insured derivatives by geographic location of risk for the years ended December 31, 2020, 2019 and 2018: Years Ended December 31, In millions 2020 2019 2018 Total premiums earned: United States $ 55 $ 63 $ 94 Other Americas 16 17 68 Other 2 5 — Total $ 73 $ 85 $ 162 |
Insurance in Force
Insurance in Force | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Insurance In Force | Note 13: Insurance in Force The Company guarantees the payment of principal of, and interest or other amounts owing on, municipal, asset-backed, mortgage-backed and other non-municipal securities. The Company’s insurance in force represents the aggregate amount of the insured principal of, and interest or other amounts owing on, insured obligations. The Company’s ultimate exposure to credit loss in the event of nonperformance by the issuer of the insured obligation is represented by the insurance in force in the tables that follow. The financial guarantees issued by the Company provide unconditional and irrevocable guarantees of the payment of the principal of, and interest or other amounts owing on, insured obligations when due. The obligations are generally not subject to acceleration, except in the event the Company has the right, at its discretion, to accelerate insured obligations upon default or otherwise. Payments to be made by the issuer on the bonds or notes may be backed by a pledge of revenues, reserve funds, letters of credit, investment contracts or collateral in the form of mortgages or other assets. The right to such funds or collateral would typically become National’s or MBIA Corp.’s upon the payment of a claim by either National or MBIA Corp. As of December 31, 2020, insurance in force, which represents principal and interest or other amounts owing on insured obligations, had an expected maturity through 2058. The distribution of MBIA Corp.’s and National’s combined insurance in force by geographic location, excluding financial obligations guaranteed by MBIA Corp. on behalf of affiliated companies, is presented in the following table: As of December 31, $ in billions 2020 2019 Geographic Location Insurance % of Insurance % of California $ 20.0 21.9% $ 22.4 20.9% Illinois 8.9 9.7% 10.2 9.5% New Jersey 5.4 5.9% 6.0 5.6% Hawaii 4.1 4.4% 4.2 3.9% Texas 3.7 4.0% 4.0 3.7% Virginia 3.2 3.6% 3.6 3.3% New York 3.0 3.3% 4.7 4.4% Puerto Rico 2.9 3.2% 3.3 3.1% Oregon 2.7 2.9% 2.9 2.7% Colorado 2.1 2.3% 2.8 2.6% Subtotal 56.0 61.2% 64.1 59.7% Nationally Diversified 8.7 9.5% 11.8 11.0% Other states 19.8 21.7% 23.5 21.8% Total United States 84.5 92.4% 99.4 92.5% Internationally Diversified 0.3 0.3% 0.3 0.3% Country specific 6.6 7.3% 7.8 7.2% Total non-United States 6.9 7.6% 8.1 7.5% Total $ 91.4 100.0% $ 107.5 100.0% The insurance in force and insured gross par outstanding by type of bond, excluding financial obligations guaranteed by MBIA Corp. on behalf of affiliated companies, are presented in the following table: As of December 31, $ in billions 2020 2019 Bond type Insurance Gross Par Insurance Gross Par Global public finance—United States: General obligation (1) $ 25.0 $ 12.1 $ 29.1 $ 14.3 Tax-backed 15.7 7.9 17.7 9.2 Military housing 14.8 7.0 15.2 7.1 Municipal utilities 10.6 7.3 12.0 8.1 Transportation 9.2 3.0 10.6 3.9 General obligation—lease 2.4 1.9 3.1 2.3 Higher education 1.5 1.1 2.2 1.5 Health care 1.2 0.8 1.4 1.0 Investor-owned utilities (2) 0.9 0.6 1.4 0.9 Municipal housing 0.1 0.1 0.2 0.1 Other (3) 0.1 0.1 0.8 0.5 Total United States 81.5 41.9 93.7 48.9 Global public finance—non-United Sovereign-related and sub-sovereign (4) 2.8 2.1 3.0 2.3 Transportation 2.1 1.8 2.7 2.3 International utilities 0.9 0.8 1.1 1.0 Other (5) 0.1 0.1 0.2 0.1 Total non-United 5.9 4.8 7.0 5.7 Total global public finance 87.4 46.7 100.7 54.6 Global structured finance: Mortgage-backed residential 2.0 1.5 2.5 1.8 Corporate asset-backed (6) 0.8 0.6 3.0 1.7 Mortgage-backed commercial 0.5 0.2 0.5 0.2 Collateralized debt obligations 0.4 0.3 0.4 0.3 Consumer asset-backed 0.3 0.3 0.4 0.3 Total global structured finance 4.0 2.9 6.8 4.3 Total $ 91.4 $ 49.6 $ 107.5 $ 58.9 (1)—Includes general obligation unlimited and limited (property) tax bonds, general fund obligation bonds and pension obligation bonds of states, cities, counties, schools and special districts. (2)—Includes investor owned utilities, industrial development and pollution control revenue bonds. (3)—Includes certain non-profit enterprises, stadium related financing. (4)—Includes regions, departments or their equivalent in each jurisdiction as well as sovereign owned entities that are supported by a sovereign state, region or department. (5)—Includes municipal owned entities backed by sponsoring local government and tax backed transactions. (6)—As of December 31, 2020, all remaining insurance in force and gross par relating to structured insurance securitizations was terminated. As of December 31, 2019, includes structured insurance securitizations of $2.1 billion and $1.0 billion of insurance in force and gross par amount, respectively. Affiliated Financial Obligations Insured by MBIA Corp. Investment agreement contracts and MTNs issued by the Company’s corporate segment and the Refinanced Facility issued by the Company’s international and structured finance insurance segment are insured by MBIA Corp. and are not included in the previous tables. If MBIA Inc. or these subsidiaries were to have insufficient assets to pay amounts due, MBIA Corp. would be obligated to make such payments under its insurance policies. As of December 31, 2020, the maximum amount of future payments that MBIA Corp. could be required to make under these guarantees is $1.7 Reinsured Exposure Reinsurance enables the Company to cede exposure for purposes of syndicating risk. The Company generally retains the right to reassume the business ceded to reinsurers under certain circumstances, including a reinsurer’s rating downgrade below specified thresholds. At this time, the Company does not intend to utilize reinsurance to decrease the insured exposure in its portfolio. MBIA requires certain unauthorized reinsurers to maintain bank letters of credit or establish trust accounts to cover liabilities ceded to such reinsurers under reinsurance contracts. The Company remains liable on a primary basis for all reinsured risk. MBIA believes that its reinsurers remain capable of meeting their obligations, although, there can be no assurance of such in the future. The aggregate amount of insurance in force ceded by MBIA to reinsurers was $3.0 As of December 31, 2020, the aggregate amount of insured par outstanding ceded by MBIA to reinsurers under reinsurance agreements was $1.5 billion compared with $1.8 billion as of December 31, 2019. As of December 31, 2020, $1.1 billion of the ceded par outstanding was ceded from the Company’s U.S. public finance insurance segment and $413 million was ceded from the Company’s international and structured finance insurance segment. Under National’s reinsurance agreement with MBIA Corp., if a reinsurer of MBIA Corp. is unable to pay claims ceded by MBIA Corp. on U.S. public finance exposure, National will assume liability for such ceded claim payments. The following table presents information about the Company’s reinsurance agreements as of December 31, 2020 for its U.S. public finance and international and structured finance insurance operations. In millions Reinsurers Standard & (Status) Moody’s Rating (Status) Ceded Par Outstanding Letters of Credit/Trust Accounts Reinsurance Recoverable/ (Payable) (1) Assured Guaranty Re Ltd. AA WR (2) $ 584 $ 21 $ — (Stable Outlook) Assured Guaranty Corp. AA A3 620 — (37) (Stable Outlook) (Stable Outlook) Overseas Private AA+ Aaa 221 — — Investment Corporation (Stable Outlook) (Stable Outlook) Others A + WR or above (2) 55 — (1) Total $ 1,480 $ 21 $ (38) (1)—Total reinsurance recoverable/(payable) is primarily related to recoverables on unpaid losses net of (payables) on salvage received. (2)—Represents a withdrawal of ratings. |
Insurance Regulations and Divid
Insurance Regulations and Dividends | 12 Months Ended |
Dec. 31, 2020 | |
Insurance Regulations And Dividends [Abstract] | |
Insurance Regulations And Dividends | Note 14: Insurance Regulations and Dividends National and MBIA Insurance Corporation are subject to insurance regulations and supervision of the State of New York (their state of domicile) and all U.S. and non-U.S. jurisdictions in which they are licensed to conduct insurance business. In order to maintain their New York State financial guarantee insurance license, National and MBIA Insurance Corporation are required to maintain a minimum of $65 million of policyholders’ surplus. MBIA Mexico is regulated by the Comisión Nacional de Seguros y Fianzas in Mexico. MBIA Corp.’s Spanish Branch is subject to local regulation in Spain. The extent of insurance regulation and supervision varies by jurisdiction, but New York and most other jurisdictions have laws and regulations prescribing minimum standards of solvency and business conduct, which must be maintained by insurance companies. Among other things, these laws prescribe permitted classes and concentrations of investments and limit both the aggregate and individual securities risks that National and MBIA Insurance Corporation may insure on a net basis based on the type of obligations insured. In addition, some insurance laws and regulations require the approval or filing of policy forms and rates. National and MBIA Insurance Corporation are required to file detailed annual financial statements with the NYSDFS. The operations and accounts of National and MBIA Insurance Corporation are subject to examination by regulatory agencies at regular intervals. Statutory Capital and Regulations National For the years ended December 31, 2020 and 2019, National had a statutory net loss of $82 million and statutory net income of $39 million, respectively. As of December 31, 2020, National’s statutory capital was $2.0 billion, consisting of policyholders’ surplus of $1.5 billion and contingency reserves of $445 million. As of December 31, 2019, National had statutory capital of $2.4 billion. As of December 31, 2020, National was in compliance with its aggregate risk limits under NYIL, but was not in compliance with certain of its single risk limits. MBIA Insurance Corporation For the years ended December 31, 2020 and 2019, MBIA Insurance Corporation had statutory net losses of $202 million and $141 million, respectively. As of December 31, 2020, MBIA Insurance Corporation’s statutory capital was $273 million, consisting of policyholders’ surplus of $106 million and contingency reserve s As of December 31, 2020, MBIA Insurance Corporation was in compliance with its aggregate risk limits under the NYIL, but was not in compliance with certain of its single risk limits. If new overages occur with respect to its single risk limits, MBIA Insurance Corporation will report them to the NYSDFS. Dividends NYIL regulates the payment of dividends by financial guarantee insurance companies and provides that such companies may not declare or distribute dividends except out of statutory earned surplus. Under NYIL, the sum of (i) the amount of dividends declared or distributed during the preceding 12-month period and (ii) the dividend to be declared may not exceed the lesser of (a) 10% of policyholders’ surplus, as reported in the latest statutory financial statements or (b) 100% of adjusted net investment income for such 12-month period (the net investment income for such 12-month period plus the excess, if any, of net investment income over dividends declared or distributed during the two-year period preceding such 12-month period), unless the Superintendent of the NYSDFS approves a greater dividend distribution based upon a finding that the insurer will retain sufficient surplus to support its obligations. During 2020 and 2019, National declared and paid dividends of $81 million and $134 million, respectively, to its ultimate parent, MBIA Inc. In 2020, MBIA Insurance Corporation did not declare or pay any dividends to MBIA Inc. or the holders of its preferred stock. MBIA Insurance Corporation is currently unable to pay dividends, including those related to its preferred stock, as a result of its earned surplus deficit as of December 31, 2020 and is not expected to have any statutory capacity to pay dividends in the near term. In connection with MBIA Insurance Corporation obtaining approval from the NYSDFS to release excess contingency reserves in previous periods, MBIA Insurance Corporation agreed that it would not pay any dividends without prior approval from the NYSDFS . |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Long-Term Incentive Plans [Abstract] | |
Benefit Plans | Note 15: Benefit Plans Long-term Incentive Plans Plan Description The Company maintains the MBIA Inc. 2005 Omnibus Incentive Plan (the “Omnibus Plan”), as amended on May 7, 2009, May 1, 2012 and May 5, 2020. Under the Omnibus Plan a maximum of 16,500,000 shares of the Company’s common stock can be used for any type of award including stock options, performance shares, performance units, restricted stock, restricted stock units and dividend equivalents. Any shares issued under the Omnibus Plan in connection with stock options shall be counted against this limit as 1 share covered by such option. For all awards other than stock options, any shares issued shall be counted against this limit as 1.28 shares for every share issued after the May 1, 2012 amendment and two shares for every share issued prior to the May 1, 2012 amendment. Currently, the Company grants restricted stock. Under the restricted stock component of the Omnibus Plan, certain employees are granted restricted shares of the Company’s common stock. These awards have a restriction period lasting between three There were 3,338,822 shares available for future grants under the Omnibus Plan as of December 31, 2020. In accordance with accounting guidance for share-based payments, the Company expenses the fair value of stock-based compensation. In addition, the guidance classifies share-based payment awards as either liability awards, which are remeasured at fair value at each balance sheet date, or equity awards, which are measured on the grant date and not subsequently remeasured. Generally, awards with cash-based settlement repurchase features or that are settled at a fixed dollar amount are classified as liability awards, and changes in fair value will be reported in earnings. Awards with net-settlement features are classified as equity awards and changes in fair value are not reported in earnings. The Company’s long-term incentive plans include features which result in equity awards. In addition, the guidance requires the use of a forfeiture estimate. The Company uses historical employee termination information to estimate the forfeiture rate applied to current stock-based awards. The Company maintains voluntary retirement benefits, which provide certain benefits to eligible employees of the Company upon retirement. A description of these benefits is included in the Company’s proxy statement. One of the components of the retirement program for those employees that are retirement eligible is to continue to vest all performance-based restricted stock awards beyond the retirement date in accordance with the original vesting terms and to immediately vest all outstanding time-based restricted stock grants. The accounting guidance for share-based payment requires compensation costs for those employees to be recognized from the date of grant through the retirement eligible date. Accelerated expense, if any, relating to this retirement benefit for restricted stock awards has been included in the compensation expense amounts. Refer to the “Performance Based Awards” section below for additional information on compensation expense. Restricted Stock The fair value of the restricted shares awarded, net of cancellations, determined on the grant date was $7 Compensation expense related to the restricted shares, net of estimated forfeitures, was $11 A summary of the Company’s restricted shares outstanding as of December 31, 2020, 2019 and 2018, and changes during the years ended on those dates, is presented in the following table: Restricted Share Activity 2020 2019 2018 Number of Weighted Number of Weighted Number of Weighted Outstanding at beginning of year 5,146,828 $ 10.0958 5,044,616 $ 9.7986 2,392,978 $ 9.6142 Granted 1,003,720 6.8150 711,176 11.4185 3,668,801 9.9711 Vested (448,455) 8.9834 (416,676) 9.0332 (267,163) 10.0705 Forfeited (247,286) 11.1800 (192,288) 9.4917 (750,000) 9.9576 Outstanding at end of year 5,454,807 $ 9.5344 5,146,828 $ 10.0958 5,044,616 $ 9.7986 Performance Based Awards During 2020, 2019 and 2018, the Company granted 502,738, 221,213 and 247,286 restricted shares to certain key employees which have a vesting schedule dependent on the achievement of certain stock price targets of the Company, respectively. The grants and corresponding compensation expense have been included in the above restricted stock disclosures. As permitted by the accounting guidance for share-based payments, the Company estimates the fair value of awards that contain market performance conditions at the date of grant using a binomial lattice model with a Monte Carlo simulation and recognizes compensation cost over the requisite service period. The binomial lattice model can better incorporate assumptions about a stock price path because the model can accommodate a large number of potential stock prices over the award’s term in comparison to the Black-Scholes model. The Company estimates the fair value of awards that contain internal performance conditions at the date of grant and recognizes compensation cost over the requisite service period if it is probable that the internal performance conditions will be achieved. The Company reassesses the probability of vesting at each reporting period and the final compensation cost associated with awards dependent on the achievement of certain internal performance conditions will reflect only those awards that ultimately vest. As of December 31, 2020 and 2019 certain previously awarded grants did not meet the stock price performance target or the internal performance conditions. The corresponding cancellation of shares and expense reversal, if applicable, has been included in the above restricted stock disclosures. Pension, 401(k) and Deferred Compensation Plans The Company maintains a qualified non-contributory defined contribution pension plan to which the Company contributes 10% of each eligible employee’s annual compensation. Annual compensation for determining such contributions consists of base salary and bonus, as applicable, up to a maximum of $2 million. Pension benefits vest over the first five-year period of employment with 20% vested after two years, 60% vested after three years, 80% vested after four years and 100% vested after five years. The Company funds the annual pension contribution by the following February of each applicable year. The Company also maintains a qualified 401(k) plan. The plan is a voluntary contributory plan that allows eligible employees to defer compensation for federal income tax purposes under Section 401(k) of the Internal Revenue Code of 1986, as amended. Employees may contribute, through payroll deductions, up to 25% of eligible compensation. The Company matches employee contributions up to the first 5% of such compensation. The 401(k) matching contributions are made in the form of cash, whereby participants may direct the Company match to an investment of their choice. The 401(k) matching benefits vest over the first five-year period of employment with 20% vested after two years, 60% vested after three years, 80% vested after four years and 100% vested after five years. Generally, a participating employee is entitled to distributions from the plans upon termination of employment, retirement, death or disability. In addition to the above two plans, the Company maintains a non-qualified deferred compensation plan. Contributions to the above qualified plans that exceed limitations established by federal regulations are then contributed to the non-qualified deferred compensation plan. Expenses related to these plans for the years ended December 31, 2020, 2019 and 2018 were $4 million, $4 million, and $3 million, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Earnings Per Share | Note 16: Earnings Per Share Earnings per share is calculated using the two-class method in which earnings are allocated to common stock and participating securities based on their rights to receive nonforfeitable dividends or dividend equivalents. The Company grants restricted stock to certain employees and non-employee directors in accordance with the Company’s long-term incentive programs, which entitle the participants to receive nonforfeitable dividends or dividend equivalents during the vesting period on the same basis as those dividends are paid to common shareholders. These unvested stock awards represent participating securities. During periods of net income, the calculation of earnings per share exclude the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. During periods of net loss, no effect is given to participating securities in the numerator and the denominator excludes the dilutive impact of these securities since they do not share in the losses of the Company. Basic earnings per share excludes dilution and is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the dilutive effect of all unvested restricted stock outstanding during the period that could potentially result in the issuance of common stock. The dilution from unvested restricted stock is calculated by applying the two-class method and using the treasury stock method. The treasury stock method assumes the proceeds from the unrecognized compensation expense from unvested restricted stock will be used to purchase shares of the Company’s common stock at the average market price during the period. If the potentially dilutive securities disclosed in the table below become vested, the transaction would be net share settled resulting in a significantly lower impact to the outstanding share balance in comparison to the total amount of the potentially dilutive securities. During periods of net loss, unvested restricted stock is excluded from the calculation because they would have an antidilutive affect. Therefore, in periods of net loss, the calculation of basic and diluted earnings per share would result in the same value. The following table presents the computation of basic and diluted earnings per share for the years ended December 31, 2020, 2019 and 2018: Years Ended December 31, In millions except per share amounts 2020 2019 2018 Basic earnings per share: Net income (loss) available to common shareholders $ (578) $ (359) $ (296) Basic weighted average shares (1) 59.1 81.0 89.0 Net income (loss) per basic common share $ (9.78) $ (4.43) $ (3.33) Diluted earnings per share: Net income (loss) available to common shareholders (578) (359) (296) Diluted weighted average shares 59.1 81.0 89.0 Net income (loss) per diluted common share $ (9.78) $ (4.43) $ (3.33) Potentially dilutive securities excluded from the diluted EPS because of antidilutive affect 4.6 4.3 4.4 (1) Includes 0.9 million, 1.0 million and 0.8 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the years ended December 31, 2020, 2019 and 2018, respectively. |
Common and Preferred Stock
Common and Preferred Stock | 12 Months Ended |
Dec. 31, 2020 | |
Common And Preferred Stock [Abstract] | |
Common And Preferred Stock | Note 17: Common and Preferred Stock Common Stock Share Repurchases Purchases or repurchases of common stock may be made from time to time in the open market or in private transactions as permitted by securities laws and other legal requirements. The Company believes that share purchases or repurchases can be an appropriate deployment of capital in excess of amounts needed to support the Company’s liquidity while maintaining the claims-paying resources of MBIA Corp. and National, as well as other business needs. The following table provides information about the Company’s or National’s share purchases or repurchases for the years ended December 31, 2020, 2019 and 2018: In millions, except per share amounts 2020 2019 2018 Number of shares purchased or repurchased 26.4 11.1 5.8 Average price paid per share $ 7.50 $ 9.12 $ 8.21 Remaining authorization as of December 31 $ — $ 101 $ 202 Preferred Stock As of December 31, 2020, MBIA Insurance Corporation had 2,759 shares of preferred stock issued and outstanding with a carrying value of $28 million, including 1,444 shares held by MBIA Inc. that were purchased at a weighted average price of $10,900 per share or 10.9% of face value and 1,315 shares held by unaffiliated investors. During 2020, MBIA Inc. did not repurchase any additional shares. In accordance with MBIA’s fixed-rate election, the dividend rate on the preferred stock was determined using a fixed-rate equivalent of LIBOR plus 200 basis points. Each share of preferred stock has a par value of $1,000 with a liquidation preference of $100,000. The holders of the preferred stock are generally not entitled to any voting rights. Subject to certain requirements, the preferred stock may be redeemed, in whole or in part, at the option of MBIA Corp. at any time or from time to time for cash at a redemption price equal to the liquidation preference per share plus any accrued and unpaid dividends thereon at the date of redemption for the then current dividend period and any previously accumulated dividends payable without interest on such unpaid dividends. As of December 31, 2020 and 2019, there were no dividends declared on the preferred stock. Payment of dividends on |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Accumulated Other Comprehensive Income | Note 18: Accumulated Other Comprehensive Income The following table presents the changes in the components of AOCI for the years ended December 31, 2020, 2019 and 2018: In millions Unrealized Foreign Instrument-Specific Total Balance, January 1, 2018 $ (10) $ (9) $ — $ (19) ASU 2016-01 (2) — (162) (164) ASU 2018-02 (3) — — (3) Net period other comprehensive income (loss) (24) 2 52 30 Balance, December 31, 2018 $ (39) $ (7) $ (110) $ (156) Other comprehensive income (loss) before reclassifications 139 — (25) 114 Amounts reclassified from AOCI 12 — 28 40 Net period other comprehensive income (loss) 151 — 3 154 Balance, December 31, 2019 $ 112 $ (7) $ (107) $ (2) Other comprehensive income (loss) before reclassifications 83 (3) 50 130 Amounts reclassified from AOCI (19) — 6 (13) Net period other comprehensive income (loss) 64 (3) 56 117 Balance, December 31, 2020 $ 176 $ (10) $ (51) $ 115 The following table presents the details of the reclassifications from AOCI for the years ended December 31, 2020, 2019 and 2018: In millions Amounts Reclassified from AOCI Details about AOCI Components 2020 2019 2018 Affected Line Item on the Consolidated Statements of Operations Unrealized gains (losses) on AFS securities: Realized gain (loss) on sale of securities $ 19 $ 14 $ 6 Net gains (losses) on financial instruments at fair value and foreign exchange Credit losses — (25) (5) Net investment losses related to OTTI Amortization on securities — (1) (1) Net investment income 19 (12) — Income (loss) before income taxes 19 (12) — Net income (loss) Instrument-specific credit risk of liabilities: Settlement of liabilities (6) (28) — Net gains (losses) on financial instruments at fair value and foreign exchange Total reclassifications for the period $ 13 $ (40) $ — Net income (loss) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Commitments and Contingencies | Note 19: Commitments and Contingencies MBIA has received subpoenas or informal inquiries from a variety of regulators, regarding a variety of subjects. MBIA has cooperated fully with each of these regulators and has or is in the process of satisfying all such requests. MBIA may receive additional inquiries from these or other regulators and expects to provide additional information to such regulators regarding their inquiries in the future. Litigation MBIA Insurance Corp. v. Credit Suisse Securities (USA) LLC, et al. On December 14, 2009, MBIA Corp. commenced an action in New York State Supreme Court, New York County, against Credit Suisse. The complaint seeks damages for claims in connection with the procurement of financial guarantee insurance on the Home Equity Mortgage Trust Series 2007-2 Tilton v. MBIA Inc., On November 2, 2015, Lynn Tilton and Patriarch Partners XV, LLC filed a complaint in New York State Supreme Court, Westchester County, against MBIA Inc. and MBIA Corp., seeking damages based on allegations of fraudulent inducement and related claims arising from purported promises made in connection with insurance policies issued by MBIA Corp. on certain collateralized loan obligations managed by Ms. Tilton and affiliated Patriarch entities. Plaintiffs filed an amended complaint on January 15, 2016. The parties completed discovery in 2017. In February of 2021, the parties submitted respective cross-motions for summary judgment. Zohar CDO 2003-1, Ltd., et al. v. Patriarch Partners, LLC et al., On November 27, 2017, Lynn Tilton and certain affiliated entities commenced a third-party complaint against MBIA Inc., MBIA Insurance Corp. and other Zohar Fund stakeholders seeking damages for alleged breaches of the contracts governing the Zohar Funds and additional alleged legal duties and obligations relating to the Funds. On December 22, 2020, the Company and the other third-party defendants moved to dismiss the third-party complaint. Briefing on those motions to dismiss is complete and the motions are under submission. Tilton et al. v. MBIA Inc. et al., On October 1, 2019, Lynn Tilton and certain affiliated entities commenced an adversary proceeding in the Zohar Funds Bankruptcy Cases against MBIA Inc., MBIA Corp. and other Zohar Funds creditor seeking the equitable subordination of those creditors’ claims with respect to the Zohar Funds. Plaintiffs claim they are entitled to relief due to inequitable and unfair conduct by defendants. The Company and the other defendants filed their respective motions to dismiss on October 30, 2020. Briefing on those motions is anticipated to be completed as of March of 2021. MBIA Insurance Corp. v. Tilton et al., On July 30, 2020, MBIA Corp. commenced an adversary proceeding in the Zohar Funds Bankruptcy Cases against Lynn Tilton and certain affiliated entities seeking damages incurred by MBIA Corp. in connection with insurance policies it issued on senior notes issued by Zohar I and Zohar II. Tilton and her affiliated defendants moved to dismiss the complaint on October 23, 2020. The briefing on such motion is complete and the motion is under submission. National Public Finance Guarantee Corporation et al. v. UBS Financial Services, Inc. et al., 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 of bonds issued by the Commonwealth of Puerto Rico and its instrumentalities that were underwritten by these defendants. National alleges that, when the defendants solicited bond insurance, they represented through their acts that they would investigate certain information they provided to National and that they had a reasonable basis to believe that information was true and complete. National further alleges that the defendants did not perform such investigations and that key information was untrue or incomplete. National seeks damages to be proven at trial. On September 16, 2020, Defendants filed a motion to dismiss the complaint. National filed its objection to that motion on October 7, 2020, and briefing concluded on November 30, 2020. A decision is pending. Motion of Assured Guaranty Corp., Assured Guaranty Municipal Corp., Ambac Assurance Corporation and National Public Finance Guarantee Corporation for Relief from the Automatic Stay or, in the Alternative, for Adequate Protection, On January 16, 2020, National, Ambac and Assured (“Movants”) filed a renewed motion in the PRHTA Title III case for relief from the automatic stay or, in the alternative, adequate protection. The motion seeks leave to file a complaint in Puerto Rico, and 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. Following a preliminary lift stay hearing held on June 4, 2020, on July 2, 2020, Judge Swain ruled that the Movants had failed to satisfy its burden of presenting a colorable claim that they had a statutory, contractual or equitable lien on HTA. On September 9, 2020, the Court entered a final order denying the HTA lift stay motion, finding that a balancing of factors does not support stay relief. The Movants appealed, and the case was argued before the First Circuit Court of Appeals on February 4, 2021. A decision is pending. In the event that National does not terminate its participation in the 2021 PSA, on or prior to March 31, 2021, the Oversight Board and National shall jointly request the entry of an order in the Title III court staying National’s actions to lift the automatic stay in the GO and HTA Title III cases, and National shall take no further action with respect to that proceeding subject to the plan resolving the GO Title III case becoming effective. 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 ., 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. Complaint Objecting to Defendants’ Claims and Seeking Related Relief, On January 16, 2020, the Oversight Board filed an adversary complaint against National, Ambac, Assured Guaranty, Assured Guaranty Municipal Corp., Financial Guaranty Insurance Company, Peaje Investments LLC and the Bank of New York Mellon as fiscal agent. The Oversight Board challenges the claims and validity of the liens asserted against the Commonwealth by holders of HTA bonds. The complaint contains 201 counts against the bondholder parties objecting to proofs of claim and security interests asserted regarding the Commonwealth’s retention of certain revenues previously assigned to HTA. This matter is currently stayed but the Court permitted the Oversight Board to file certain limited cross motions on April 28, 2020. The cross motions for summary judgment were filed on July 16, 2020. On September 23, 2020, Judge Swain heard argument on the limited cross motions for summary judgment, which remain pending. On January 20, 2021, Judge Swain issued an order deferring the adjudication of the summary judgment motions so that defendant monolines can seek limited discovery from the Oversight Board on all documents related to the collection and flow of Excise Taxes and pledged revenue into and out of its accounts, among other things. Complaint Objecting to Defendants’ Claims and Seeking Related Relief, On January 16, 2020, the Oversight Board and the Creditors Committee filed an adversary complaint against National and other defendants challenging the claims and validity of the liens asserted against HTA by holders and insurers of HTA bonds. The complaint contains 302 counts challenging the claims and liens asserted against HTA. The Financial Oversight and Management Board for Puerto Rico, as representative of The Puerto Rico Electric Power Authority, et al. Case No. 17 BK 4780-LTS ( On July 18, 2017, National, together with other PREPA bondholders, asked the court overseeing PREPA’s Title III case 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. The bondholders appealed the decision to the United States Court of Appeals for the First Circuit. On August 8, 2018, the First Circuit issued an order reversing Judge Swain’s decision on jurisdictional grounds and remanding the motion. On October 3, 2018, National, along with other monolines filed an updated motion for relief from the automatic stay to allow them to exercise their statutory right to have a receiver appointed at PREPA. The Oversight Board filed a motion to dismiss the receiver motion. These motions have been stayed until five business days following the ruling on the PREPA 9019 Settlement Motion. The PREPA 9019 Settlement Motion has been adjourned until further order of the Court. 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, and Assured Guaranty Corp. and Assured Guaranty Municipal Corp. (together, the “RSA Parties”) previously entered into the Restructuring Support Agreement (“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. The RSA includes the agreement for resolving PREPA’s restructuring plan issues and arrangements. Pursuant to the RSA, the Oversight Board filed a Rule 9019 motion with the Title III court in May of 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 the Ad Hoc Group will support such withdrawal. 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 Settlement Motion, (b) consummation of a Plan, (c) 60 days after the filing by the Oversight Board and AAFAF of a Litigation Notice, or (d) further order of the Court. The hearing for the Settlement Motion has been adjourned until further order of the Court. The RSA, by its terms, requires certain legislation be enacted and such legislation may not receive sufficient votes for passage. In addition, the restructuring the RSA contemplates has received criticism from various parties including members of the Puerto Rico government and other stakeholders. This opposition could adversely affect the ability of the Oversight Board and RSA Parties to consummate the Settlement Motion and RSA. The Financial Oversight and Management Board for Puerto Rico, as Representative of the Commonwealth of Puerto Rico, et al. v. Autonomy Master Fund Limited et al., On May 2, 2019, the Oversight Board and the Official Committee of Unsecured Creditors of all Title III Debtors (other than COFINA) (the “Committee”) filed lien avoidance adversary complaints against several hundred defendants, including National, challenging the existence, extent, and enforceability of GO bondholders’ liens. After an approximately five-month stay of litigation entered by the Court on July 24, 2019, these adversary proceedings resumed pursuant to an interim schedule entered by the Court in December 2019. On February 5, 2020, National and Assured Guaranty Municipal Corp. filed a motion to dismiss the adversary proceeding. The motion has been stayed indefinitely by order of the Court. Cortland Capital Market Services LLC, et al. v. The Financial Oversight and Management Board for Puerto Rico et al. On July 9, 2019, the “Fuel Line Lenders,” parties who extended approximately $700 million 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 30, 2019, the Fuel Line Lenders filed an amended complaint which added National, Assured, Syncora, and the Ad Hoc Group as defendants. Defendants moved to dismiss the Fuel Line Lenders’ adversary complaint on November 11, 2019. The Fuel Line Lenders filed their opposition to the motion to dismiss on December 5, 2019. Defendants’ reply in support of the motion to dismiss was filed February 3, 2020. The hearing on the motion to dismiss was adjourned until the Court determines when the 9019 Settlement Motion and related litigation will recommence. 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, 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 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. On September 27, 2019, the Oversight Board filed a voluntary petition for relief for PBA pursuant to PROMESA, commencing a case under Title III. The complaint has been stayed indefinitely by order of the Court. 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 other material lawsuits pending or, to the knowledge of the Company, threatened, to which the Company or any of its subsidiaries is a party. Leases The Company has a lease agreement for its headquarters in Purchase, New York as well as an immaterial lease for an office in San $ in millions As of December 31, 2020 Balance Sheet Location Right-of-use asset $ 20 Other assets Lease liability $ 20 Other liabilities Weighted average remaining lease term (years) 8.3 Discount rate used for operating leases 7.5% Total future minimum lease payments $ 29 |
Schedule I- Investments
Schedule I- Investments | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Summary Of Investments, Other Than Investments In Related Parties | SCHEDULE I MBIA INC. AND SUBSIDIARIES SUMMARY OF INVESTMENTS, OTHER THAN INVESTMENTS IN RELATED PARTIES December 31, 2020 (In millions) December 31, 2020 Type of investment Cost Fair Value Amount at Available-for-sale: U.S. Treasury and government agency $ 556 $ 631 $ 631 State and municipal bonds 162 194 194 Foreign governments 9 10 10 Corporate obligations 767 830 830 Mortgage-backed securities: Residential mortgage-backed agency 305 312 312 Residential mortgage-backed non-agency 23 25 25 Commercial mortgage-backed 17 17 17 Asset-backed securities: Collateralized debt obligations 120 118 118 Other asset-backed 121 121 121 Total long-term available-for-sale 2,080 2,258 2,258 Short-term available-for-sale 280 281 281 Total available-for-sale 2,360 2,539 2,539 Investments at fair value 189 197 197 Total investments $ 2,549 $ 2,736 $ 2,736 Assets of consolidated variable interest entities: Investments at fair value 96 77 77 Loans receivable 124 120 120 Total investments of consolidated variable interest entities $ 220 $ 197 $ 197 |
Schedule II- Parent Company Fin
Schedule II- Parent Company Financials | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure | SCHEDULE II MBIA INC. (PARENT COMPANY) CONDENSED BALANCE SHEETS (In millions except share and per share amounts) December 31, December 31, Assets Investments: Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $621 $ 719 $ 674 Investments carried at fair value 1 1 Investments pledged as collateral, at fair value (amortized cost $10 and $19) 1 11 Short-term investments held as available-for-sale, at fair value (amortized cost $31 and $167) 31 167 Total investments 752 853 Cash and cash equivalents 26 11 Investment in wholly-owned subsidiaries 728 1,456 Other assets 139 123 Total assets $ 1,645 $ 2,443 Liabilities and Shareholders’ Equity Liabilities: Investment agreements $ 269 $ 274 Long-term debt 312 427 Affiliate loans payable 695 658 Income taxes payable 12 60 Derivative liabilities 164 133 Other liabilities 57 65 Total liabilities 1,509 1,617 Shareholders’ Equity: Preferred stock, par value $1 per share; authorized shares—10,000,000; issued and outstanding—none — — Common stock, par value $1 per share; authorized shares—400,000,000; issued shares—283,186,115 and 283,433,401 283 283 Additional paid-in capital 2,962 2,999 Retained earnings (deficit) (13) 607 Accumulated other comprehensive income (loss), net of tax 115 (2) Treasury stock, at cost—229,508,967 and 204,000,108 shares (3,211) (3,061) Total shareholders’ equity of MBIA Inc. 136 826 Total liabilities and shareholders’ equity $ 1,645 $ 2,443 The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the accompanying notes. SCHEDULE II MBIA INC. (PARENT COMPANY) CONDENSED STATEMENTS OF OPERATIONS (In millions) Years ended December 31, 2020 2019 2018 Revenues: Net investment income $ 28 $ 35 $ 35 Net gains (losses) on financial instruments at fair value and foreign exchange (67) (57) 20 Net gains (losses) on extinguishment of debt — (1) 3 Other net realized gains (losses) — (2) (2) Total revenues (39) (25) 56 Expenses: Operating 10 10 11 Interest 83 90 93 Total expenses 93 100 104 Gain (loss) before income taxes and equity in earnings of subsidiaries (132) (125) (48) Provision (benefit) for income taxes (4) (99) (35) Gain (loss) before equity in earnings of subsidiaries (128) (26) (13) Equity in net income (loss) of subsidiaries (450) (333) (283) Net income (loss) $ (578) $ (359) $ (296) The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the accompanying notes. SCHEDULE II MBIA INC. (PARENT COMPANY) CONDENSED STATEMENTS OF CASH FLOWS (In millions) Years ended December 31, 2020 2019 2018 Cash flows from operating activities: Investment income received $ 101 $ 156 $ 132 Operating expenses paid (47) (17) (17) Interest paid, net of interest converted to principal (60) (88) (91) Income taxes (paid) received 5 34 (16) Net cash provided (used) by operating activities (1) 85 8 Cash flows from investing activities: Purchases of available-for-sale (216) (278) (495) Sales of available-for-sale 183 319 175 Paydowns and maturities of available-for-sale 41 179 101 Purchases of investments at fair value (2) 5 (9) Sales, paydowns and maturities of investments at fair value 2 — 10 Sales, paydowns and maturities (purchases) of short-term investments, net 137 (61) 262 (Payments) proceeds for derivative settlements (16) (98) (24) Contributions (to) from subsidiaries, net — (14) 51 Advances (to) from subsidiaries, net — — 3 Net cash provided (used) by investing activities 129 52 74 Cash flows from financing activities: Proceeds from investment agreements 12 15 11 Principal paydowns of investment agreements (18) (20) (35) Proceeds from long-term debt — — 40 Principal paydowns of long-term debt (115) (150) — Payments for affiliate loans — (19) (71) Restricted stock awards settlements 8 8 4 Net cash provided (used) by financing activities (113) (166) (51) Effect of exchange rates on cash and cash equivalents — — (1) Net increase (decrease) in cash and cash equivalents 15 (29) 30 Cash and cash equivalents—beginning of year 11 40 10 Cash and cash equivalents—end of year $ 26 $ 11 $ 40 Reconciliation of net income (loss) to net cash provided (used) by operating activities: Net income (loss) $ (578) $ (359) $ (296) Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: Change in: Intercompany accounts receivable (39) (16) (9) Current income taxes 5 23 (15) Equity in earnings of subsidiaries 450 333 283 Dividends from subsidiaries 81 134 112 Net (gains) losses on financial instruments at fair value and foreign exchange 67 57 (20) Deferred income tax provision (benefit) (4) (88) (35) (Gains) losses on extinguishment of debt — 1 (3) Other operating 17 — (9) Total adjustments to net income (loss) 577 444 304 Net cash provided (used) by operating activities $ (1) $ 85 $ 8 The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the accompanying notes. SCHEDULE II MBIA INC. (PARENT COMPANY) NOTES TO CONDENSED FINANCIAL STATEMENTS 1. Condensed Financial Statements Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. This includes the statements of comprehensive income (loss) which is exactly the same as the Company’s consolidated statements of comprehensive income (loss). It is suggested that these condensed financial statements be read in conjunction with the Company’s consolidated financial statements and the notes thereto. The activities of MBIA Inc. (the “Parent Company”) consist of general corporate activities and funding activities, which principally include holding and managing investments, servicing outstanding corporate debt, investment agreements issued by the Parent Company and its subsidiaries, and posting collateral under investment agreement and derivative contracts. The Parent Company is subject to the same liquidity risks and uncertainties as described in footnote 1 to the Company’s consolidated financial statements. As of December 31, 2020, the liquidity position of the Parent Company, which included cash and cash equivalents or short-term investments comprised of highly rated commercial paper, money market funds and municipal, U.S. agency and corporate bonds for general corporate purposes, excluding the amount held in escrow under its tax sharing agreement, was $294 million. During 2020 and 2019, the Parent Company redeemed $115 million and $150 million, respectively, principal amount of its 6.400% Senior Notes due 2022 at a cost of 100% of par value plus accrued interest. As of December 31, 2020, National owned $308 million principal amount of the 5.700% Senior Notes due 2034 and $10 million principal amount of MBIA Inc. 7.000% Debentures due 2025, and MBIA Inc., through its corporate segment, owned $13 million of MBIA Corp. surplus notes. These amounts are eliminated from the Parent Company’s condensed balance sheet. 2. Accounting Policies The Parent Company carries its investments in subsidiaries under the equity method. For a further discussion of significant accounting policies and recent accounting pronouncements, refer to footnotes 2 and 3 to the Company’s consolidated financial statements. 3. Dividends from Subsidiaries During 2020, National declared and paid a dividend of During 2019, National declared and paid dividends During 2018, National Public Finance Guarantee Holdings, Inc. declared and paid a dividend of $108 million to the Parent Company. In addition, National Public Finance Guarantee Holdings, Inc. declared and paid a dividend of $1 4. Deferred Tax Asset, Net of Valuation Allowance The Parent Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on tax assets and liabilities is recognized in income in the period that includes the enactment date. Valuation allowances are established to reduce deferred tax assets to the amount that more likely than not will be realized. The Parent 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 Parent Company having a three-year cumulative loss. Such objective evidence limits the ability to consider other subjective evidence, such as the Parent Company’s projections of pre-tax income. On the basis of this evaluation, the Parent Company has recorded a full valuation allowance against its net deferred tax asset. For a further discussion of the net deferred tax asset, refer to footnote 11 to the Company’s consolidated financial statements. 5. Obligations under Investment Agreements Investment agreements, as described in footnote 10 to the Company’s consolidated financial statements, are conducted by both the Parent Company and its wholly-owned subsidiary, MBIA Investment Management Corp. 6. Pledged Collateral Substantially all of the obligations under investment agreements require the Parent Company and its subsidiaries to pledge securities as collateral. As of December 31, 2020 and 2019, the fair value of securities pledged as collateral with respect to these investment agreements approximated $282 million and $313 Under derivative contracts entered into by the Parent Company, collateral postings are required by either the Parent Company or the counterparty when the aggregate market value of derivative contracts entered into with the same counterparty exceeds a predefined threshold. As of December 31, 2020 and 2019, the Parent Company and its subsidiaries pledged securities with a fair value of $214 7. Affiliate Loans Payable Affiliate loans payable consists of loans payable to MBIA Global Funding, LLC (“GFL”). GFL raised funds through the issuance of medium-term notes with varying maturities, which were, in turn, guaranteed by MBIA Corp. GFL lent the proceeds of these medium-term note issuances to the Parent Company. |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies | SCHEDULE IV MBIA INC. AND SUBSIDIARIES REINSURANCE Years Ended December 31, 2020, 2019 and 2018 (In millions) Column A Column B Column C Column D Column E Column F 2020 $ 1 $ 1 $ — $ — 0 % 2019 $ 3 $ — $ — $ 3 0% 2018 $ 3 $ 1 $ — $ 2 0% |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP 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. |
Consolidation | Consolidation The consolidated financial statements include the accounts of MBIA Inc., its wholly-owned subsidiaries and all other entities in which the Company has a controlling financial interest. All intercompany balances and transactions have been eliminated. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether an entity is a voting interest entity or a VIE. Voting interest entities are entities in which (i) the total equity investment at risk is sufficient to enable an entity to finance its activities independently and (ii) the equity holders have the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. Voting interest entities are consolidated when the Company has a majority voting interest. VIEs are entities that lack one or more of the characteristics of a voting interest entity. The consolidation of a VIE is required if an entity has a variable interest (such as an equity or debt investment, a beneficial interest, a guarantee, a written put option or a similar obligation) and that variable interest or interests give it a controlling financial interest in the VIE. A controlling financial interest is present when an enterprise has both (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The enterprise with the controlling financial interest, known as the primary beneficiary, is required to consolidate the VIE. The Company consolidates all VIEs in which it is the primary beneficiary. The Company elected to apply the fair value option to all financial assets and financial liabilities of certain consolidated VIEs on a VIE-by-VIE basis. Refer to “Note 4: Variable Interest Entities” for additional information. |
Investments | Investments The Company classifies its investments as available-for-sale held-to-maturity non-credit and losses, net of applicable deferred income taxes, reflected in accumulated other comprehensive income (loss) (“AOCI”) in shareholders’ equity. The specific identification method is used to determine realized gains and losses on AFS securities. HTM investments, for which the Company had the ability and intent to hold such investments to maturity, were redeemed during 2020, and were reported in the consolidated balance sheets at amortized cost (net of an allowance for credit losses). Investments carried at fair value consist of equity instruments, and certain investments elected under the fair value option, or classified as trading. Short-term investments held as AFS include all fixed-maturity securities with a remaining maturity of less than one year at the date of purchase, commercial paper and money market securities. Changes in fair value of investments carried at fair value and realized gains and losses from the sale of investment securities are reflected in earnings as part of “Net gains (losses) on financial instruments at fair value and foreign exchange” on the Company’s consolidated statements of operations. Investment income is recorded as earned which includes the current period interest accruals deemed collectible. Accrued interest income is recorded as part of “Other assets” on the Company’s consolidated balance sheets. Bond discounts and premiums are amortized using the effective yield method over the remaining term of the securities and reported in “Net investment income” on the Company’s consolidated statements of operations. However, premiums on certain callable debt securities are amortized to the earliest call date. For MBS and asset-backed securities (“ABS”), discounts and premiums are amortized using the retrospective or prospective method. As part of the adoption of Accounting Standards Update (“ASU”) 2016-13, Credit Losses on Debt Securities For AFS debt securities, the Company’s consolidated statements of operations reflect the full impairment (the difference between a security’s amortized cost basis and fair value) if the Company intends to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis. For AFS debt securities in an unrealized loss position and HTM debt securities held prior to their redemption during 2020, the securities are evaluated on a quarterly basis to determine if credit losses exist. The Company considers that credit losses exist when the Company does not expect to recover the entire amortized cost basis of the debt security. The Company measures an allowance for credit losses on a security-by-security As part of the adoption of ASU 2016-13, |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits, and deposits with banks with original maturities of less than three months. |
Deferred Acquisition Costs | Deferred Acquisition Costs The Company deferred acquisition costs that were directly related to new or renewal insurance business. Acquisition costs are costs to acquire an insurance contract which result directly from and are essential to the insurance contracts transaction and would not have been incurred by the Company had the contract transaction not occurred. Acquisition costs include compensation of employees involved in underwriting, certain rating agency fees, state premium taxes and certain other underwriting expenses, reduced by ceding commission income on premiums ceded to reinsurers. Acquisition costs also included ceding commissions paid by the Company in connection with assuming business from other financial guarantors. Acquisition costs, net of ceding commissions received, related to non-derivative |
Derivatives | Derivatives Derivative instruments are reported at fair value on the consolidated balance sheets as either assets or liabilities depending on the rights or obligations under the contract, and changes in fair value are reported in the consolidated statements of operations within “Net gains (losses) on financial instruments at fair value and foreign exchange” or “Unrealized gains (losses) on insured derivatives” depending on the nature of the derivative. The net change in the fair value of the Company’s insured derivatives has two primary components: (i) realized gains (losses) and other settlements on insured derivatives and (ii) unrealized gains (losses) on insured derivatives. “Realized gains (losses) and other settlements on insured derivatives” include (i) premiums received and receivable on sold CDS contracts, (ii) premiums paid and payable to reinsurers in respect to CDS contracts, (iii) net amounts received or paid on reinsurance commutations, (iv) losses paid and payable to CDS contract counterparties due to the occurrence of a credit event or settlement agreement, (v) losses recovered and recoverable on purchased CDS contracts due to the occurrence of a credit event or settlement agreement and (vi) fees relating to CDS contracts. “Unrealized gains (losses) on insured derivatives” include all other changes in the fair values of the insured derivative contracts. As of December 31, 2020, the Company had no remaining insured exposure accounted for as an insured CDS derivative. In certain instances, the Company purchased or issued securities that contain embedded derivatives that were separated from the host contract and accounted for as derivative instruments. In addition, the Company elected to record at fair value certain financial instruments that contain an embedded derivative that would have otherwise required bifurcation from the host contract and been accounted for separately as a derivative instrument. These hybrid financial instruments included certain medium-term notes (“MTNs”) and certain AFS securities. The Company elected to fair value these hybrid financial instruments in their entirety given the complexity of bifurcating the embedded derivatives. Refer to “Note 9: Derivative Instruments” for a further discussion of the Company’s use of derivatives and their impact on the Company’s consolidated financial statements and “Note 7: Fair Value of Financial Instruments” for derivative valuation techniques and fair value disclosures. |
Fair Value Measurements—Definition and Hierarchy | Fair Value Measurements—Definition and Hierarchy The Company carries certain financial instruments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement of financial instruments held or issued by the Company are determined through the use of observable market data when available. Market data is obtained from a variety of third-party sources, including dealer quotes. If dealer quotes are not available for an instrument that is infrequently traded, the Company uses alternate valuation methods, including either dealer quotes for similar instruments or pricing models that use market data inputs. The use of alternate valuation methods generally requires considerable judgment in the application of estimates and assumptions and changes to such estimates and assumptions may produce materially different fair values. The Company considers its own nonperformance risk and the nonperformance risk of its counterparties when measuring fair value. The accounting guidance establishes a fair value hierarchy that categorizes into three levels, the inputs used to measure fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available and reliable. Observable inputs are those that the Company believes market participants would use in pricing an asset or liability based on available market data. Unobservable inputs are those that reflect the Company’s beliefs about the assumptions market participants would use in pricing the asset or liability based on the best information available. The three levels of the fair value hierarchy are defined as follows: • Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company can access. Valuations are based on quoted prices that are readily and regularly available in an active market, with significant trading volumes. • Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 2 assets include debt securities with quoted prices that are traded less frequently than exchange-traded instruments, securities which are priced using observable inputs and derivative contracts whose values are determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. • Level 3—Valuations based on inputs that are unobservable or supported by little or no market activity, and that are significant to the overall fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques where significant inputs are unobservable, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The availability of observable inputs can vary from financial instrument to financial instrument and period to period depending on the type of instrument, market activity, the approach used to measure fair value, and other factors. The Company categorizes a financial instrument within the fair value hierarchy based on the least observable input that is significant to the fair value measurement. When the inputs used to measure fair value of an asset or a liability are categorized within different levels based on the definition of the fair value hierarchy, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. Refer to “Note 7: Fair Value of Financial Instruments” for additional fair value disclosures. |
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 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. The Company’s loss reserve, insurance loss recoverable, and accruals for loss adjustment expense (“LAE”) incurred are disclosed in “Note 6: Loss and Loss Adjustment Expense Reserves.” |
Debt | Long-term Debt Long-term debt is carried at the principal amount outstanding plus accrued interest and net of unamortized debt issuance costs and discounts. Interest expense is accrued at the contractual interest rate. Debt issuance costs and discounts are amortized and reported as interest expense. Medium-Term Notes and Investment Agreements MTNs and investment agreements are carried at the principal amount outstanding plus accrued interest and net of unamortized discounts, or at fair value for certain MTNs. Interest expense is accrued at the contractual interest rate. Discounts are amortized and reported as interest expense. |
Financial Guarantee Insurance Premiums | Financial Guarantee Insurance Premiums Unearned Premium Revenue and Receivable for Future Premiums The Company recognizes a liability for unearned premium revenue at the inception of financial guarantee insurance and reinsurance contracts on a contract-by-contract Credit Losses on Premium Receivables The Company evaluates the collectability of outstanding premium receivables on a quarterly basis and measures any allowance for credit losses as the difference between the recorded premium receivable amount and the current projected net present value of premiums expected to be collected, discounted at the effective interest rate, which is the applicable risk-free rate described in the preceding paragraph. Estimating the allowance for credit losses involves substantial judgment, including forecasting an insured transaction’s cash flows, such as the future performance of the transaction’s underlying assets and the impact of certain macro-economic factors, as well as incorporating any historical experience of uncollectible balances and a transaction’s liability structure, including the seniority of premium payments to the Company. Premium Revenue Recognition The Company recognizes and measures premium revenue over the period of the contract in proportion to the amount of insurance protection provided. Premium revenue is measured by applying a constant rate to the insured principal amount outstanding in a given period to recognize a proportionate share of the premium received or expected to be received on a financial guarantee insurance contract. A constant rate for each respective financial guarantee insurance contract is calculated as the ratio of (a) the present value of premium received or expected to be received over the period of the contract to (b) the sum of all insured principal amounts outstanding during each period over the term of the contract. An issuer of an insured financial obligation may retire the obligation prior to its scheduled maturity through refinancing or legal defeasance in satisfaction of the obligation according to its indenture, which results in the Company’s obligation being extinguished under the financial guarantee contract. The Company recognizes any remaining unearned premium revenue on the insured obligation as refunding premiums earned in the period the contract is extinguished to the extent the unearned premium revenue has been collected. Non-refundable non-refundable |
Fee and Reimbursement Revenue Recognition | Fee and Reimbursement Revenue Recognition The Company collects insurance related fees for services performed in connection with certain transactions. Fees are earned when the related services are completed. Types of fees include work, waiver and consent, and termination fees. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes in earnings all stock-based payment transactions at the fair value of the stock-based compensation provided. Refer to “Note 15: Benefit Plans” for a further discussion regarding the methodology utilized in recognizing employee stock compensation expense. |
Foreign Currency Translation | Foreign Currency Translation Financial statement assets and liabilities denominated in foreign currencies are reported in U.S. dollars generally using rates of exchange prevailing as of the balance sheet date. Translation adjustments resulting from the translation of the financial statements of the Company’s non-U.S. non-U.S. non-functional |
Income Taxes | Income Taxes Deferred income taxes are recorded with respect to loss carryforwards and temporary differences between the tax bases of assets and liabilities and the reported amounts in the Company’s financial statements that will result in deductible or taxable amounts in future years when the reported amounts of assets and liabilities are recovered or settled. Such temporary differences relate principally to net operating losses (“NOLs”), accrued surplus note interest, loss reserve deductions, premium revenue recognition, deferred acquisition costs, asset impairments and foreign tax credits. Valuation allowances are established to reduce deferred tax assets to the amount that more likely than not will be realized. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates in the period in which changes are approved by the relevant authority. MBIA Inc. and its eligible U.S. subsidiaries file a consolidated federal income tax return. The U.S. income taxes are allocated based on the provisions of the Company’s tax sharing agreement which governs the intercompany settlement of tax obligations and benefits. The method of allocation between the members is based upon calculations as if each member filed its separate tax return. Under the Company’s tax sharing agreement, each member with a NOL will receive the benefits of its tax losses and credits as it is able to earn them out in the future. In establishing a liability for an unrecognized tax benefit (“UTB”), assumptions may be made in determining whether a tax position is more likely than not to be sustained upon examination by the taxing authority and also in determining the ultimate amount that is likely to be realized. A tax position is recognized only when, based on management’s judgment regarding the application of income tax laws, it is more likely than not that the tax position will be sustained upon examination. The amount of tax benefit recognized is based on the Company’s assessment of the largest amount of benefit that is more likely than not to be realized on ultimate settlement with the taxing authority. This measurement is based on many factors, including whether a tax dispute may be settled through negotiation with the taxing authority or is only subject to review in the courts. As new information becomes available, the Company evaluates its tax positions, and adjusts its UTB, as appropriate. If the tax benefit ultimately realized differs from the amount previously recognized, the Company recognizes an adjustment of the UTB. Refer to “Note 11: Income Taxes” for additional information about the Company’s income taxes. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) In June of 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, 2016-13 2016-13 2016-13 2016-13 2016-13 The Company adopted ASU 2016-13 in its entirety as of January 1, 2020. For financial assets held by the Company and measured at amortized cost, which primarily include HTM debt securities, premiums receivable, accrued investment income and reinsurance recoverables, the Company’s aggregate cumulative-effect adjustment, net of tax, related to allowances for credit losses as of the date of adoption was a $42 million reduction in retained earnings. In addition, the Company updated its models and implemented or modified processes and controls necessary for the proper identification, measurement and recording of expected credit losses on financial assets within the scope of ASU 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, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements. ASU 2018-13 was effective for interim and annual periods beginning January 1, 2020 with early adoption permitted to remove or modify disclosures upon issuance of the standard and delay adoption of the additional disclosures until the effective date. Since the amendments of ASU 2018-13 only impact disclosure requirements, the adoption of ASU 2018-13 did not impact the Company’s consolidated financial statements. The Company adopted the amendments of ASU 2018-13 in its entirety as of January 1, 2020. The adoption of ASU 2018-13 only impacted the fair value disclosures within the Company’s consolidated financial statements and did not impact amounts reported on the Company’s balance sheet, statement of operations, statement of comprehensive income or statement of cash flows. 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 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04) In March of 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships that reference London Interbank Offered Rate (“LIBOR”) or other rates that are expected to be discontinued, subject to meeting certain criteria. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. The Company is evaluating the impact of adopting ASU 2020-04. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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Summary Of Nonconsolidated VIEs Assets And Liabilities | December 31, 2020 Carrying Value of Assets Carrying Value of Liabilities In millions Maximum Investments Premiums Insurance Unearned Loss and Insurance: Global structured finance: Mortgage-backed residential $ 1,835 $ 21 $ 16 $ 90 $ 14 $ 482 Consumer asset-backed 293 — 1 1 1 15 Corporate asset-backed 735 — 5 364 5 — Total global structured finance 2,863 21 22 455 20 497 Global public finance 1,434 — 7 — 7 2 Total insurance $ 4,297 $ 21 $ 29 $ 455 $ 27 $ 499 December 31, 2019 Carrying Value of Assets Carrying Value of Liabilities In millions Maximum Investments Premiums Insurance Unearned Loss and Insurance: Global structured finance: Mortgage-backed residential $ 2,253 $ 15 $ 19 $ 107 $ 16 $ 436 Mortgage-backed commercial 26 — — — — — Consumer asset-backed 384 — 1 1 1 11 Corporate asset-backed 937 — 6 673 7 — Total global structured finance 3,600 15 26 781 24 447 Global public finance 1,926 — 8 — 9 — Total insurance $ 5,526 $ 15 $ 34 $ 781 $ 33 $ 447 |
Insurance Premiums (Tables)
Insurance Premiums (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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Rollforward of Premiums Receivable | The following tables present a roll forward of the Company’s premiums receivable for the years ended December 31, 2020 and 2019. In millions Adjustments Premiums Premium Premiums Changes in Accretion of (1) Other (2) Premiums $ 249 $ (30) $ — $ (1) $ 6 $ (8) $ 216 (1)—Recorded within premiums earned on MBIA’s consolidated statement of operations. (2)—The change primarily relates to a reduction in installment premiums due to refunding activity and the recording of an allowance for credit losses under Financial Instruments-Credit Losses, partially offset by changes in foreign exchange currency rates. In millions Adjustments Premiums Receivable as of December 31, 2018 Premium Premiums Changes in Accretion of (1) Other (2) Premiums $ 296 $ (43) $ — $ (4) $ 7 $ (7) $ 249 (1)—Recorded within premiums earned on MBIA’s consolidated statement of operations. (2)—Primarily relates to the write off of uncollectible premiums and to a lesser extent realized gains due to changes in foreign currency exchange rates. |
Undiscounted Future Premiums By Period | The following table presents the undiscounted future amount of premiums expected to be collected and the period in which those collections are expected to occur: In millions Expected Three months ending: March 31, 2021 $ 3 June 30, 2021 10 September 30, 2021 5 December 31, 2021 10 Twelve months ending: December 31, 2022 24 December 31, 2023 22 December 31, 2024 20 December 31, 2025 18 Five years ending: December 31, 2030 64 December 31, 2035 45 December 31, 2040 and thereafter 54 Total $ 275 |
Unearned Premium Reserve And Future Premium Earnings | The following table presents the unearned premium revenue balance and future expected premium earnings as of and for the periods presented: In millions Unearned Revenue Expected Future Accretion Total Expected Earnings Upfront Installments December 31, 2020 $ 405 Three months ending: March 31, 2021 392 $ 6 $ 7 $ 1 $ 14 June 30, 2021 379 6 7 1 14 September 30, 2021 367 6 6 2 14 December 31, 2021 355 6 6 1 13 Twelve months ending: December 31, 2022 310 21 24 5 50 December 31, 2023 271 19 20 4 43 December 31, 2024 235 17 19 4 40 December 31, 2025 204 15 16 4 35 Five years ending: December 31, 2030 104 50 50 15 115 December 31, 2035 50 24 30 9 63 December 31, 2040 and thereafter — 16 34 9 59 Total $ 186 $ 219 $ 55 $ 460 |
Loss and Loss Adjustment Expe_2
Loss and Loss Adjustment Expense Reserves (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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Present Value Of The Probability-Weighted Future Claim Payments And Recoveries | As As In millions Balance Sheet Line Item Balance Sheet Line Item Insurance Loss (2) Insurance Loss (2) U.S. Public Finance Insurance $ 1,220 $ 469 $ 911 $ 432 International and Structured Finance Insurance: Before VIE eliminations (1) 1,082 780 1,286 749 VIE eliminations (1) (625) (259) (503) (280) Total international and structured finance insurance 457 521 783 469 Total $ 1,677 $ 990 $ 1,694 $ 901 (1)—Includes loan repurchase commitments of $604 million and $486 million as of December 31, 2020 and 2019, 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 Year Ended December 31, 2020 Gross Loss and (1) Loss Payments Accretion of Changes in Changes in Changes in Other Gross Loss (1) $ 901 $ (441) $ 11 $ (86) $ 606 $ 8 $ (9) $ 990 (1)—Includes changes in amount and timing of estimated payments and recoveries. In millions Changes in Loss and LAE Reserves for the Year Ended December 31, 2019 Gross Loss and (1) Loss Accretion of Changes in Changes in Changes in Changes in Other Gross Loss (1) $ 965 $ (431) $ 18 $ (54) $ 407 $ 23 $ (26) $ (1) $ 901 (1)—Includes changes in amount and timing of estimated payments and recoveries. |
Schedule Of Insurance Loss Recoverable | Changes in Insurance Loss Recoverable for the Year Ended December 31, 2020 In millions Gross Collections Accretion Changes Changes in (1) Other Gross Insurance loss recoverable $ 1,694 $ (49) $ 14 $ 115 $ (94) $ (3) $ 1,677 (1)—Includes amounts related to paid claims and LAE. Changes in Insurance Loss Recoverable In millions Gross Collections Accretion of Changes in Changes in (1) Other (2) Gross Insurance loss recoverable $ 1,595 $ (148) $ 35 $ 70 $ 105 $ 37 $ 1,694 (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 | 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, 2020: Surveillance Categories Caution Caution Caution List List List Classified $ in millions Low Medium High List Total Number of policies 46 16 — 219 281 Number of issues (1) 16 3 — 100 119 Remaining weighted average contract period (in years) 6.4 6.4 — 7.9 7.4 Gross insured contractual payments outstanding: (2) Principal $ 1,422 $ 123 $ — $ 3,302 $ 4,847 Interest 1,974 54 — 1,441 3,469 Total $ 3,396 $ 177 $ — $ 4,743 $ 8,316 Gross Claim Liability (3) $ — $ — $ — $ 1,088 $ 1,088 Less: Gross Potential Recoveries (4) — — — 1,947 1,947 Discount, net (5) — — — (173) (173) Net claim liability (recoverable) $ — $ — $ — $ (686) $ (686) Unearned premium revenue $ 10 $ — $ — $ 35 $ 45 Reinsurance recoverable on paid and unpaid losses (6) $ 11 (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, 2019: Surveillance Categories Caution Caution Caution List List List Classified $ in millions Low Medium High List Total Number of policies 45 19 — 212 276 Number of issues (1) 13 5 — 94 112 Remaining weighted average contract period (in years) 7.3 7.2 — 7.9 7.7 Gross insured contractual payments outstanding: (2) Principal $ 1,546 $ 248 $ — $ 3,794 $ 5,588 Interest 2,107 110 — 1,668 3,885 Total $ 3,653 $ 358 $ — $ 5,462 $ 9,473 Gross Claim Liability (3) $ — $ — $ — $ 965 $ 965 Less: Gross Potential Recoveries (4) — — — 2,184 2,184 Discount, net (5) — — — (453) (453) Net claim liability (recoverable) $ — $ — $ — $ (766) $ (766) Unearned premium revenue $ 6 $ 3 $ — $ 39 $ 48 Reinsurance recoverable on paid and unpaid losses (6) $ 19 (1)—An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt. (2)—Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA. (3)—The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position. (4)—Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position. (5)—Represents discount related to Gross Claim Liability and Gross Potential Recoveries. (6)—Included in “Other assets” on the Company’s consolidated balance sheets. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following tables provide quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 and 2019: In millions Fair Value as Valuation Techniques Unobservable Input Range (Weighted Assets Loans receivable at fair value $ 120 Market prices adjusted for financial guarantees provided to VIE obligations Impact of financial guarantee (2) -28%—109% (22%) (1) Loan repurchase commitments 604 Discounted cash flow Recovery value (3) Liabilities of consolidated VIEs: Variable interest entity notes 303 Market prices of VIE assets adjusted for financial guarantees provided Impact of financial guarantee 30%—73% (1) Other derivative liabilities 49 Discounted cash flow Cash flows $49—$49 (1)—Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. (2)—Negative percentage represents financial guarantee policies in a receivable position. (3)—Recovery value reflects an estimate of the amount to be awarded to the Company as part of litigation seeking to enforce its contractual rights. In millions Fair Value as Valuation Techniques Unobservable Input Range (Weighted Assets of consolidated VIEs: Loans receivable at fair value $ 136 Market prices adjusted for financial guarantees provided to VIE obligations Impact of financial guarantee (1) -20%—99% (22%) Loan repurchase commitments 486 Discounted cash flow Recovery rates (2) (2) Liabilities of consolidated VIEs: Variable interest entity notes 347 Market prices of VIE assets adjusted for financial guarantees provided Impact of financial guarantee 37%—76% Credit derivative liabilities—CMBS 7 Direct Price Model Nonperformance risk 54%—54% Other derivative liabilities 34 Discounted cash flow Cash flows $0—$49 (3) (1)—Negative percentage represents financial guarantee policies in a receivable position. (2)—Recovery rates include assumptions about legal risk in the enforcement of the Company’s contract and breach rates represent estimates of the percentage of ineligible loans. (3)—Midpoint of cash flows are used for the weighted average. |
Company's Assets And Liabilities Measured At Fair Value On Recurring Basis | The following tables present the fair value of the Company’s assets (including short-term investments) and liabilities measured and reported at fair value on a recurring basis as of December 31, 2020 and 2019: Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Significant Balance as of Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 750 $ 105 $ — $ 855 State and municipal bonds — 195 — 195 Foreign governments — 15 — 15 Corporate obligations — 975 — 975 Mortgage-backed securities: Residential mortgage-backed agency — 319 — 319 Residential mortgage-backed non-agency — 32 — 32 Commercial mortgage-backed — 20 — 20 Asset-backed securities: Collateralized debt obligations — 121 — 121 Other asset-backed — 141 — 141 Total fixed-maturity investments 750 1,923 — 2,673 Money market securities 1 — — 1 Perpetual debt and equity securities 37 25 — 62 Cash and cash equivalents 158 — — 158 Derivative assets: Non-insured derivative assets: Interest rate derivatives — 1 — 1 Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Significant Balance as of Assets of consolidated VIEs: Corporate obligations — 6 — 6 Mortgage-backed securities: Residential mortgage-backed non-agency — 40 — 40 Commercial mortgage-backed — 16 — 16 Asset-backed securities: Collateralized debt obligations — 8 — 8 Other asset-backed — 7 — 7 Cash 9 — — 9 Loans receivable at fair value: Residential loans receivable — — 120 120 Loan repurchase commitments — — 604 604 Other assets: Currency derivatives — — 6 6 Other — — 14 14 Total assets $ 955 $ 2,026 $ 744 $ 3,725 Liabilities: Medium-term notes $ — $ — $ 110 $ 110 Derivative liabilities: Insured derivatives: Credit derivatives — 2 — 2 Non-insured derivatives: Interest rate derivatives — 164 — 164 Other — — 49 49 Liabilities of consolidated VIEs: Variable interest entity notes — 47 303 350 Total liabilities $ — $ 213 $ 462 $ 675 Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Significant Balance as of Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 791 $ 97 $ — $ 888 State and municipal bonds — 200 — 200 Foreign governments — 10 — 10 Corporate obligations — 1,266 — 1,266 Mortgage-backed securities: Residential mortgage-backed agency — 330 — 330 Residential mortgage-backed non-agency — 19 — 19 Commercial mortgage-backed — 22 — 22 Asset-backed securities: Collateralized debt obligations — 140 — 140 Other asset-backed — 326 1 327 Total fixed-maturity investments 791 2,410 1 3,202 Money market securities 154 — — 154 Perpetual debt and equity securities 30 25 — 55 Fixed-income fund — — — 51 (1) Cash and cash equivalents 75 — — 75 Derivative assets: Non-insured derivative assets: Interest rate derivatives — 1 — 1 Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Significant Balance as of Assets of consolidated VIEs: Corporate obligations — 8 — 8 Mortgage-backed securities: Residential mortgage-backed non-agency — 45 — 45 Commercial mortgage-backed — 16 — 16 Asset-backed securities: Collateralized debt obligations — 6 — 6 Other asset-backed — 8 — 8 Cash 8 — — 8 Loans receivable at fair value: Residential loans receivable — — 136 136 Loan repurchase commitments — — 486 486 Other assets: Currency derivatives — — 8 8 Other — — 18 18 Total assets $ 1,058 $ 2,519 $ 649 $ 4,277 Liabilities: Medium-term notes $ — $ — $ 108 $ 108 Derivative liabilities: Insured derivatives: Credit derivatives — 2 7 9 Non-insured derivatives: Interest rate derivatives — 132 — 132 Other — — 34 34 Other liabilities: Other payable — — 4 4 Liabilities of consolidated VIEs: Variable interest entity notes — 56 347 403 Total liabilities $ — $ 190 $ 500 $ 690 (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 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 Significant Fair Value Carry Value Liabilities: Long-term debt $ — $ 631 $ — $ 631 $ 2,229 Medium-term notes — — 396 396 598 Investment agreements — — 376 376 269 Liabilities of consolidated Variable interest entity — 276 — 276 273 Total liabilities $ — $ 907 $ 772 $ 1,679 $ 3,369 Financial Guarantees: Gross liability (recoverable) $ — $ — $ 811 $ 811 $ (282) Ceded recoverable (liability) — — 45 45 (17) Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Significant Fair Value Carry Value Assets: Assets of consolidated VIEs: Investments held-to-maturity $ — $ — $ 892 $ 892 $ 890 Total assets $ — $ — $ 892 $ 892 $ 890 Liabilities: Long-term debt $ — $ 1,073 $ — $ 1,073 $ 2,228 Medium-term notes — — 396 396 570 Investment agreements — — 394 394 304 Liabilities of consolidated VIEs: Variable interest entity notes — 261 892 1,153 1,136 Total liabilities $ — $ 1,334 $ 1,682 $ 3,016 $ 4,238 Financial Guarantees: Gross liability (recoverable) $ — $ — $ 556 $ 556 $ (311) Ceded recoverable (liability) — — 56 56 24 |
Changes In Level 3 Assets Measured At Fair Value On A Recurring Basis | In millions Balance, Total Unrealized (1) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in Change in (1) Assets: Other asset-backed $ 1 $ — $ — $ — $ — $ (1) $ — $ — $ — $ — $ — $ — Assets of consolidated VIEs: Loans receivable-residential 136 — — — — (16) — — — 120 (4) — Loan repurchase commitments 486 118 — — — — — — — 604 118 — Currency derivatives 8 (2) — — — — — — — 6 (2) — Other 18 (4) — — — — — — — 14 (4) — Total assets $ 649 $ 112 $ — $ — $ — $ (17) $ — $ — $ — $ 744 $ 108 $ — In millions Balance, Total Unrealized (2) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in as of Change in as of (2) Liabilities: Medium-term notes $ 108 $ 15 $ (13) $ — $ — $ — $ — $ — $ — $ 110 $ 15 $ (13) Credit derivatives 7 (6) — — — (1) — — — — — — Other derivatives 34 15 — — — — — — — 49 15 — Other payable 4 — — — — (4) — — — — — — Liabilities of consolidated VIEs: VIE notes 347 11 (40) — — (15) — — — 303 5 (38) Total liabilities $ 500 $ 35 $ (53) $ — $ — $ (20) $ — $ — $ — $ 462 $ 35 $ (51) (1)—Reported within the “Unrealized gains (losses) on available-for-sale (2)—Reported within the “Instrument-specific credit risk of liabilities measured at fair value” on MBIA’s Consolidated Statement of Comprehensive Income/Loss. |
Changes In Level 3 Liabilities Measured At Fair Value On A Recurring Basis | In millions Balance, Total Unrealized Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in 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 35 — — — (23) (48) — — 136 26 Loan repurchase commitments 418 68 — — — — — — — 486 68 Currency derivatives 17 (9) — — — — — — — 8 (9) Other 14 4 — — — — — — — 18 4 Total assets $ 637 $ 97 $ (1) $ — $ — $ (29) $ (49) $ — $ (6) $ 649 $ 89 In millions Balance, Total Unrealized Purchases Issuances Settlements Sales Transfers (1) Transfers (1) Ending Change in Liabilities: Medium-term notes $ 102 $ — $ 6 $ — $ — $ — $ — $ — $ — $ 108 $ — Credit derivatives 33 (15) — — — (11) — — — 7 (25) Other derivatives 7 27 — — — — — — — 34 27 Other payable 5 2 — — — (3) — — — 4 2 Liabilities of consolidated VIEs: VIE notes 366 45 11 — 10 (25) (60) — — 347 21 Total liabilities $ 513 $ 59 $ 17 $ — $ 10 $ (39) $ (60) $ — $ — $ 500 $ 25 (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 | In millions Total Gains (Losses) Change in Unrealized Gains (Losses) for Assets and Liabilities still held as of December 31, 2020 2019 2018 2020 2019 2018 Revenues: Unrealized gains (losses) on insured derivatives $ 7 $ 25 $ 30 $ — $ 25 $ 30 Realized gains (losses) and other settlements on insured derivatives (1) (10) (56) — — — Net gains (losses) on financial instruments at fair value and foreign exchange (30) (26) 17 (30) (27) 8 Net investment losses related to other-than-temporary impairments — (1) — — — — Other net realized gains (losses) — (2) (1) — (2) (1) Revenues of consolidated VIEs: Net gains (losses) on financial instruments at fair value and foreign exchange 101 53 25 103 68 17 Total $ 77 $ 39 $ 15 $ 73 $ 64 $ 54 |
Changes In Fair Value Included In The Company's Consolidated Statements Of Operations | Years Ended December 31, In millions 2020 2019 2018 Investments carried at fair value (1) $ 2 $ 15 $ (11) Fixed-maturity securities held at fair value-VIE (2) 4 95 (25) Loans receivable and other instruments at fair value: Residential mortgage loans (2) — 35 (100) Corporate loans and other instruments (2) — — 11 Loan repurchase commitments (2) 118 68 12 Other assets-VIE (2) (4) 4 — Medium-term notes (1) (15) 1 19 Other liabilities (3) — (2) (2) Variable interest entity notes (2) (12) (89) 118 (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 December 31, 2020 As of December 31, 2019 In millions Contractual Fair Difference Contractual Fair Difference Loans receivable at fair value: Residential mortgage loans—current $ 89 $ 89 $ — $ 107 $ 107 $ — Residential mortgage loans (90 days or more past due) 147 31 116 154 29 125 Total loans receivable and other instruments at fair value $ 236 $ 120 $ 116 $ 261 $ 136 $ 125 Variable interest entity notes $ 1,117 $ 350 $ 767 $ 1,126 $ 403 $ 723 Medium-term notes $ 122 $ 110 $ 12 $ 112 $ 108 $ 4 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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Amortized Cost And Fair Value Of Available-For-Sale And Held-To-Maturity Investment Portfolios | The following table presents the amortized cost, allowance for credit losses, corresponding gross unrealized gains and losses and fair value for AFS investments in the Company’s consolidated investment portfolio as of December 31, 2020: December 31, 2020 In millions Amortized Allowance Gross Gross Fair AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 775 $ — $ 75 $ (1) $ 849 State and municipal bonds 162 — 32 — 194 Foreign governments 11 — 1 — 12 Corporate obligations 827 — 64 (1) 890 Mortgage-backed securities: Residential mortgage-backed agency 305 — 8 (1) 312 Residential mortgage-backed non-agency 22 — 3 — 25 Commercial mortgage-backed 17 — 1 — 18 Asset-backed securities: Collateralized debt obligations 120 — — (2) 118 Other asset-backed 121 — — — 121 Total AFS investments $ 2,360 $ — $ 184 $ (5) $ 2,539 The following table presents 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 December 31, 2019: December 31, 2019 In millions Amortized Gross Gross Fair Other-Than- (1) AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 838 $ 46 $ (2) $ 882 $ — State and municipal bonds 178 22 — 200 — Foreign governments 8 1 — 9 — Corporate obligations 1,140 52 (1) 1,191 — Mortgage-backed securities: Residential mortgage-backed agency 317 3 — 320 — Residential mortgage-backed non-agency 23 1 (5) 19 — Commercial mortgage-backed 20 — — 20 — Asset-backed securities: Collateralized debt obligations 139 — (2) 137 — Other asset-backed 321 1 (1) 321 — Total AFS investments $ 2,984 $ 126 $ (11) $ 3,099 $ — HTM Investments Assets of consolidated VIEs: Corporate obligations $ 890 $ 2 $ — $ 892 $ — Total HTM investments $ 890 $ 2 $ — $ 892 $ — (1)—Represents unrealized gains or losses on OTTI securities recognized in AOCI, which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities reported in AOCI. |
Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments | AFS Securities In millions Net Fair Due in one year or less $ 509 $ 511 Due after one year through five years 363 379 Due after five years through ten years 266 296 Due after ten years 637 759 Mortgage-backed and asset-backed 585 594 Total fixed-maturity investments $ 2,360 $ 2,539 |
Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments | December 31, 2020 Less than 12 Months 12 Months or Longer Total In millions Fair Unrealized Fair Unrealized Fair Unrealized AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 99 $ (1) $ — $ — $ 99 $ (1) Foreign governments 2 — — — 2 — Corporate obligations 103 (1) 7 — 110 (1) Mortgage-backed securities: Residential mortgage-backed agency 53 (1) — — 53 (1) Residential mortgage-backed non-agency 2 — 1 — 3 — Commercial mortgage-backed — — 5 — 5 — Asset-backed securities: Collateralized debt obligations 37 — 78 (2) 115 (2) Other asset-backed 29 — — — 29 — Total AFS investments $ 325 $ (3) $ 91 $ (2) $ 416 $ (5) December 31, 2019 Less than 12 Months 12 Months or Longer Total In millions Fair Unrealized Fair Unrealized Fair Unrealized AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 148 $ (1) $ 79 $ (1) $ 227 $ (2) State and municipal bonds 11 — 15 — 26 — Corporate obligations 53 (1) 10 — 63 (1) Mortgage-backed securities: Residential mortgage-backed agency 62 — 7 — 69 — Residential mortgage-backed non-agency — — 11 (5) 11 (5) Commercial mortgage-backed 5 — — — 5 — Asset-backed securities: Collateralized debt obligations 44 — 77 (2) 121 (2) Other asset-backed 48 (1) 7 — 55 (1) Total AFS investments $ 371 $ (3) $ 206 $ (8) $ 577 $ (11) |
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% 6 $ 3 $ 3 > 15% to 25% 1 — — > 50% 2 — — Total 9 $ 3 $ 3 |
Securities Held In Unrealized Loss Position And Insured By Financial Guarantor and The Related Insurance Loss Reserve On Company Insured Investments | In millions Fair Unrealized Insurance Loss (1) Mortgage-backed $ 3 $ — $ 1 Total $ 3 $ — $ 1 (1)—Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured. |
Summary of Allowance for Credit Losses on HTM Investments | Year Ended December 31, 2020 In millions Balance (1) Current Initial Write-Offs Recoveries Balance as of HTM Investments Assets of consolidated VIEs: Corporate obligations $ 37 $ (37) $ — $ — $ — $ — Total Allowance on HTM investments $ 37 $ (37) $ — $ — $ — $ — (1)—Represents transition adjustment upon adoption of ASU 2016-13. |
Credit Losses Recognized In Earnings Related To OTTI Losses Recognized In Accumulated Other Comprehensive Income (Loss) | In millions Years Ended December 31, Credit Losses Recognized in Earnings Related to OTTI 2019 2018 Beginning balance $ 37 $ 32 Additions for credit loss impairments recognized in the current period on securities previously impaired 67 5 Reductions for credit loss impairments previously recognized on securities impaired to fair value during the period (104) — Ending balance $ — $ 37 |
Gross Realized Gains and Losses From Sales Of Available-For-Sale Securities | Years Ended December 31, In millions 2020 2019 2018 Proceeds from sales $ 1,095 $ 2,195 $ 2,117 Gross realized gains $ 59 $ 103 $ 6 Gross realized losses $ (15) $ (4) $ (19) |
Portion Of Unrealized Gains Losses Recognized On Equity Investments | Years Ended In millions 2020 2019 2018 Net gains and (losses) recognized during the period on equity securities $ 3 $ 11 $ (4) Less: Net gains and (losses) recognized during the period on equity securities sold during the period (1) 1 1 Unrealized gains and (losses) recognized during the $ 4 $ 10 $ (5) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Credit Derivatives Sold | $ in millions As of December 31, 2020 Notional Value Credit Derivatives Sold Weighted AAA AA A BBB Below Total Fair Value Insured swaps 13.9 Years $ — $ 58 $ 1,327 $ 358 $ — $ 1,743 $ (2) Total notional $ — $ 58 $ 1,327 $ 358 $ — $ 1,743 Total fair value $ — $ — $ (1) $ (1) $ — $ (2) $ in millions As of December 31, 2019 Notional Value Credit Derivatives Sold Weighted AAA AA A BBB Below Total Fair Value Insured credit default swaps 1.0 Years $ — $ — $ — $ — $ 32 $ 32 $ (7) Insured swaps 14.0 Years — 121 (1) 1,371 (2) 433 (3) — 1,925 (4) (2) Total notional $ — $ 121 $ 1,371 $ 433 $ 32 $ 1,957 Total fair value $ — $ — $ (1) $ (1) $ (7) $ (9) (1)—The Company revised its previously reported amount of $66 million to $121 million. (2)—The Company revised its previously reported amount of $1,284 million to $1,371 million. (3)—The Company revised its previously reported amount of $445 million to $433 million. (4)—The Company revised its previously reported amount of $1,795 million to $1,925 million. |
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 December 31, 2020: In millions Derivative Assets (1) Derivative Liabilities (1) Derivative Instruments Notional Balance Sheet Location Fair Balance Sheet Location Fair Not designated as hedging instruments: Insured swaps $ 1,743 Other assets $ — Derivative liabilities $ (2) Interest rate swaps 437 Other assets 1 Derivative liabilities (164) Interest rate swaps-embedded 252 Medium-term notes — Medium-term notes (10) Currency swaps-VIE 53 Other assets-VIE 6 Derivative liabilities-VIE — All other 49 Other assets — Derivative liabilities (49) Total non-designated derivatives $ 2,534 $ 7 $ (225) 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 , : In millions Derivative Assets (1) Derivative Liabilities (1) Derivative Instruments Notional Balance Sheet Location Fair Balance Sheet Location Fair Not designated as hedging instruments: Insured credit default swaps $ 32 Other assets $ — Derivative liabilities $ (7) Insured swaps 1,925 (2) Other assets — Derivative liabilities (2) Interest rate swaps 441 Other assets 1 Derivative liabilities (132) Interest rate swaps-embedded 232 Medium-term notes — Medium-term notes (15) Currency swaps-VIE 58 Other assets-VIE 8 Derivative liabilities-VIE — All other 49 Other assets — Derivative liabilities (34) Total non-designated derivatives $ 2,737 $ 9 $ (190) (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. (2)—The Company revised its previously reported amount of $1,795 |
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 years ended December 31, 2020, 2019 and 2018: In millions Years Ended December 31, Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2020 2019 2018 Insured credit default swaps Unrealized gains (losses) on insured derivatives $ 7 $ 25 $ 31 Insured credit default swaps Realized gains (losses) and other settlements on insured derivatives (1 ) (10 ) (56 ) Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange (42 ) (66 ) 4 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE (2 ) (8 ) (2 ) All other Net gains (losses) on financial instruments at fair value and foreign exchange (15 ) (26 ) (4 ) Total $ (53) $ (85) $ (27) |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term debt | The Company’s long-term debt consists of notes and debentures including accrued interest as follows: As of December 31, In millions 2020 2019 6.400% Senior Notes due 2022 $ — $ 115 7.000% Debentures due 2025 46 46 7.150% Debentures due 2027 100 100 6.625% Debentures due 2028 141 141 5.700% Senior Notes due 2034 (1) 21 21 Surplus Notes due 2033 (2) 940 940 Accrued interest 991 877 Debt issuance costs (10) (12) Total $ 2,229 $ 2,228 (1)—Callable anytime at the greater of par or the present value of the remaining scheduled payments of principal and interest. (2)—Contractual interest rate is based on three month LIBOR plus 11.26%. |
Aggregate maturity of debt obligations | The aggregate maturities of principal payments of long-term debt obligations in each of the next five years ending December 31, and thereafter, are as follows: In millions 2021 2022 2023 2024 2025 Thereafter Total Corporate debt $ — $ — $ — $ — $ 46 $ 262 $ 308 Surplus Notes due 2033 — — — — — 940 940 Total debt obligations due $ — $ — $ — $ — $ 46 $ 1,202 $ 1,248 |
Principal payments due under investment agreement obligations | In millions Principal Amount Maturity date: 2021 $ 2 2022 3 2023 19 2024 23 2025 35 Thereafter (through 2037) 225 Total expected principal payments (1) $ 307 Less discount and other adjustments (2) 38 Total $ 269 (1)—Amounts reflect principal due at maturity for investment agreements issued at a discount. (2)—Discount is net of carrying amount adjustment of $3 million and accrued interest adjustment of $4 million. |
Principal payments due under medium-term note obligations based on contractual maturity | In millions Principal Amount Maturity date: 2021 $ — 2022 62 2023 12 2024 123 2025 61 Thereafter (through 2036) 659 Total expected principal payments (1) $ 917 Less discount and other adjustments (2) 207 Total $ 710 (1)—Amounts reflect principal due at maturity for notes issued at a discount. (2)—Discount is net of carrying amount and market value adjustments of $29 million and accrued interest adjustment of $4 million. |
Maturity of VIE notes, by segment | The following table provides the expected principal payments due under MBIA-insured consolidated VIE notes as of December 31, 2020. For RMBS consolidated VIEs, principal amounts are based on the expected maturity dates and for all other consolidated VIEs, principal amounts are based on the contractual maturity dates. In millions Insured Principal Amount Maturity date: 2021 $ 42 2022 308 2023 28 2024 14 2025 24 Thereafter (through 2038) 306 Total $ 722 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income (loss) from operations before provision (benefit) for income taxes | Years Ended December 31, In millions 2020 2019 2018 Domestic $ (578) $ (357) $ (287) Foreign — — (9) Income (loss) before income taxes $ (578) $ (357) $ (296) |
Income tax expense (benefit) on income (loss) and shareholder' equity | Years Ended December 31, In millions 2020 2019 2018 Current taxes: Federal $ — $ — $ — State — 2 1 Deferred taxes: Federal — — (1) Foreign — — — Provision (benefit) for income taxes — 2 — Income taxes charged (credited) to shareholders’ equity related to: Change in unrealized gains (losses) on AFS securities — — 5 Change in AFS securities with OTTI — — — Change in foreign currency translation — — — Total income taxes charged (credited) to shareholders’ equity — — 5 Total effect of income taxes $ — $ 2 $ 5 |
Income tax rate reconciliation from statutory to effective tax rate | Years Ended December 31, 2020 2019 2018 Federal income tax computed at the statutory rate 21.0% 21.0% 21.0% Increase (reduction) in taxes resulting from: Mark-to-market on warrants 0.0% 0.0% (0.7)% Change in valuation allowance (20.3)% (20.7)% (20.9)% State income tax, net of federal benefit 0.0% (0.4)% 0.0% Deferred inventory adjustments 0.0% 0.0% (1.0)% Other (0.7)% (0.5)% 1.6% Effective tax rate 0.0% (0.6)% 0.0% |
Deferred tax assets and liabilities | As of In millions December 31, December 31, Deferred tax liabilities: Unearned premium revenue $ 48 $ 54 Deferred acquisition costs 10 13 Net unrealized gains and losses in accumulated other comprehensive income 25 — Net deferred taxes on VIEs 53 51 Other 6 — Total gross deferred tax liabilities 142 118 Deferred tax assets: Compensation and employee benefits 9 8 Accrued interest 210 185 Partnership basis difference 10 10 Loss and loss adjustment expense reserves 98 101 Net operating loss 656 590 Foreign tax credits 61 61 Other-than-temporary impairments — 2 Net unrealized gains and losses on insured derivatives 10 9 Net gains and losses on financial instruments at fair value and foreign exchange 54 21 Other — 4 Total gross deferred tax assets 1,108 991 Valuation allowance 966 873 Net deferred tax asset $ — $ — |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of company's segment results | The following tables provide the Company’s segment results for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 In millions U.S. Public Finance Insurance Corporate International and Structured Finance Insurance Eliminations Consolidated Revenues (1) $ 102 $ 20 $ 29 $ — $ 151 Net change in fair value of insured derivatives — — 6 — 6 Net gains (losses) on financial instruments at fair value and foreign exchange 39 (63) (14) — (38) Other net realized gains (losses) (1) — 1 — — Revenues of consolidated VIEs — — 163 — 163 Inter-segment revenues (2) 28 66 12 (106) — Total revenues 168 23 197 (106) 282 Losses and loss adjustment 163 — 367 — 530 Operating 14 69 14 — 97 Interest — 65 113 — 178 Expenses of consolidated VIEs — — 55 — 55 Inter-segment expenses (2) 45 22 39 (106) — Total expenses 222 156 588 (106) 860 Income (loss) before income taxes $ (54) $ (133) $ (391) $ — $ (578) Identifiable assets $ 3,644 $ 954 $ 3,671 $ (2,518) (3) $ 5,751 (1)—Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. (2)—Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. (3)—Consists principally of intercompany reinsurance balances. Year Ended December 31, 2019 In millions U.S. Corporate International Eliminations Consolidated Revenues (1) $ 139 $ 27 $ 34 $ — $ 200 Net change in fair value of insured derivatives — — 15 — 15 Net gains (losses) on financial instruments at fair value and foreign exchange 139 (54) (33) — 52 Net investment losses related to other-than-temporary impairments (67) — — — (67) Net gains (losses) on extinguishment of debt — (1) — — (1) Other net realized gains (losses) 2 (2) 4 — 4 Revenues of consolidated VIEs 21 1 55 — 77 Inter-segment revenues (2) 28 62 21 (111) — Total revenues 262 33 96 (111) 280 Losses and loss adjustment 53 — 189 — 242 Operating 13 69 21 — 103 Interest — 73 128 — 201 Expenses of consolidated VIEs — — 91 — 91 Inter-segment expenses (2) 52 23 36 (111) — Total expenses 118 165 465 (111) 637 Income (loss) before income taxes $ 144 $ (132) $ (369) $ — $ (357) Identifiable assets $ 4,019 $ 1,041 $ 4,504 $ (2,280) (3) $ 7,284 (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. Year Ended December 31, 2018 In millions U.S. Corporate International Eliminations Consolidated Revenues (1) $ 178 $ 31 $ 108 $ — $ 317 Net change in fair value of insured derivatives — — (25) — (25) Net gains (losses) on financial instruments at fair value and foreign exchange (20) 22 (19) — (17) Net investment losses related to other-than-temporary impairments (5) — — — (5) Net gains (losses) on extinguishment of debt — 3 — — 3 Other net realized gains (losses) — (2) 2 — — Revenues of consolidated VIEs — — (111) — (111) Inter-segment revenues (2) 29 45 24 (98) — Total revenues 182 99 (21) (98) 162 Losses and loss adjustment 91 — (28) — 63 Operating 18 47 26 — 91 Interest — 78 128 — 206 Expenses of consolidated VIEs — — 98 — 98 Inter-segment expenses (2) 44 20 33 (97) — Total expenses 153 145 257 (97) 458 Income (loss) before income taxes $ 29 $ (46) $ (278) $ (1) $ (296) (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. |
Summary Of premiums earned on financial guarantees and insured derivatives by geographic location of risk | Years Ended December 31, In millions 2020 2019 2018 Total premiums earned: United States $ 55 $ 63 $ 94 Other Americas 16 17 68 Other 2 5 — Total $ 73 $ 85 $ 162 |
Insurance In Force (Tables)
Insurance In Force (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Insurance in force by geographic location | As of December 31, $ in billions 2020 2019 Geographic Location Insurance % of Insurance % of California $ 20.0 21.9% $ 22.4 20.9% Illinois 8.9 9.7% 10.2 9.5% New Jersey 5.4 5.9% 6.0 5.6% Hawaii 4.1 4.4% 4.2 3.9% Texas 3.7 4.0% 4.0 3.7% Virginia 3.2 3.6% 3.6 3.3% New York 3.0 3.3% 4.7 4.4% Puerto Rico 2.9 3.2% 3.3 3.1% Oregon 2.7 2.9% 2.9 2.7% Colorado 2.1 2.3% 2.8 2.6% Subtotal 56.0 61.2% 64.1 59.7% Nationally Diversified 8.7 9.5% 11.8 11.0% Other states 19.8 21.7% 23.5 21.8% Total United States 84.5 92.4% 99.4 92.5% Internationally Diversified 0.3 0.3% 0.3 0.3% Country specific 6.6 7.3% 7.8 7.2% Total non-United States 6.9 7.6% 8.1 7.5% Total $ 91.4 100.0% $ 107.5 100.0% |
Insurance in force by bond type | As of December 31, $ in billions 2020 2019 Bond type Insurance Gross Par Insurance Gross Par Global public finance—United States: General obligation (1) $ 25.0 $ 12.1 $ 29.1 $ 14.3 Tax-backed 15.7 7.9 17.7 9.2 Military housing 14.8 7.0 15.2 7.1 Municipal utilities 10.6 7.3 12.0 8.1 Transportation 9.2 3.0 10.6 3.9 General obligation—lease 2.4 1.9 3.1 2.3 Higher education 1.5 1.1 2.2 1.5 Health care 1.2 0.8 1.4 1.0 Investor-owned utilities (2) 0.9 0.6 1.4 0.9 Municipal housing 0.1 0.1 0.2 0.1 Other (3) 0.1 0.1 0.8 0.5 Total United States 81.5 41.9 93.7 48.9 Global public finance—non-United Sovereign-related and sub-sovereign (4) 2.8 2.1 3.0 2.3 Transportation 2.1 1.8 2.7 2.3 International utilities 0.9 0.8 1.1 1.0 Other (5) 0.1 0.1 0.2 0.1 Total non-United 5.9 4.8 7.0 5.7 Total global public finance 87.4 46.7 100.7 54.6 Global structured finance: Mortgage-backed residential 2.0 1.5 2.5 1.8 Corporate asset-backed (6) 0.8 0.6 3.0 1.7 Mortgage-backed commercial 0.5 0.2 0.5 0.2 Collateralized debt obligations 0.4 0.3 0.4 0.3 Consumer asset-backed 0.3 0.3 0.4 0.3 Total global structured finance 4.0 2.9 6.8 4.3 Total $ 91.4 $ 49.6 $ 107.5 $ 58.9 (1)—Includes general obligation unlimited and limited (property) tax bonds, general fund obligation bonds and pension obligation bonds of states, cities, counties, schools and special districts. (2)—Includes investor owned utilities, industrial development and pollution control revenue bonds. (3)—Includes certain non-profit enterprises, stadium related financing. (4)—Includes regions, departments or their equivalent in each jurisdiction as well as sovereign owned entities that are supported by a sovereign state, region or department. (5)—Includes municipal owned entities backed by sponsoring local government and tax backed transactions. (6)—As of December 31, 2020, all remaining insurance in force and gross par relating to structured insurance securitizations was terminated. As of December 31, 2019, includes structured insurance securitizations of $2.1 billion and $1.0 billion of insurance in force and gross par amount, respectively. |
Reinsurance agreements for insurance operations | In millions Reinsurers Standard & (Status) Moody’s Rating (Status) Ceded Par Outstanding Letters of Credit/Trust Accounts Reinsurance Recoverable/ (Payable) (1) Assured Guaranty Re Ltd. AA WR (2) $ 584 $ 21 $ — (Stable Outlook) Assured Guaranty Corp. AA A3 620 — (37) (Stable Outlook) (Stable Outlook) Overseas Private AA+ Aaa 221 — — Investment Corporation (Stable Outlook) (Stable Outlook) Others A + WR or above (2) 55 — (1) Total $ 1,480 $ 21 $ (38) (1)—Total reinsurance recoverable/(payable) is primarily related to recoverables on unpaid losses net of (payables) on salvage received. (2)—Represents a withdrawal of ratings. |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-Term Incentive Plans [Abstract] | |
Restricted Shares Outstanding | Restricted Share Activity 2020 2019 2018 Number of Weighted Number of Weighted Number of Weighted Outstanding at beginning of year 5,146,828 $ 10.0958 5,044,616 $ 9.7986 2,392,978 $ 9.6142 Granted 1,003,720 6.8150 711,176 11.4185 3,668,801 9.9711 Vested (448,455) 8.9834 (416,676) 9.0332 (267,163) 10.0705 Forfeited (247,286) 11.1800 (192,288) 9.4917 (750,000) 9.9576 Outstanding at end of year 5,454,807 $ 9.5344 5,146,828 $ 10.0958 5,044,616 $ 9.7986 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 years ended December 31, 2020, 2019 and 2018: Years Ended December 31, In millions except per share amounts 2020 2019 2018 Basic earnings per share: Net income (loss) available to common shareholders $ (578) $ (359) $ (296) Basic weighted average shares (1) 59.1 81.0 89.0 Net income (loss) per basic common share $ (9.78) $ (4.43) $ (3.33) Diluted earnings per share: Net income (loss) available to common shareholders (578) (359) (296) Diluted weighted average shares 59.1 81.0 89.0 Net income (loss) per diluted common share $ (9.78) $ (4.43) $ (3.33) Potentially dilutive securities excluded from the diluted EPS because of antidilutive affect 4.6 4.3 4.4 (1) Includes 0.9 million, 1.0 million and 0.8 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the years ended December 31, 2020, 2019 and 2018, respectively. |
Common and Preferred Stock (Tab
Common and Preferred Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Common And Preferred Stock [Abstract] | |
Schedule of Share Repurchases | In millions, except per share amounts 2020 2019 2018 Number of shares purchased or repurchased 26.4 11.1 5.8 Average price paid per share $ 7.50 $ 9.12 $ 8.21 Remaining authorization as of December 31 $ — $ 101 $ 202 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Changes In The Components Of AOCI | The following table presents the changes in the components of AOCI for the years ended December 31, 2020, 2019 and 2018: In millions Unrealized Foreign Instrument-Specific Total Balance, January 1, 2018 $ (10) $ (9) $ — $ (19) ASU 2016-01 (2) — (162) (164) ASU 2018-02 (3) — — (3) Net period other comprehensive income (loss) (24) 2 52 30 Balance, December 31, 2018 $ (39) $ (7) $ (110) $ (156) Other comprehensive income (loss) before reclassifications 139 — (25) 114 Amounts reclassified from AOCI 12 — 28 40 Net period other comprehensive income (loss) 151 — 3 154 Balance, December 31, 2019 $ 112 $ (7) $ (107) $ (2) Other comprehensive income (loss) before reclassifications 83 (3) 50 130 Amounts reclassified from AOCI (19) — 6 (13) Net period other comprehensive income (loss) 64 (3) 56 117 Balance, December 31, 2020 $ 176 $ (10) $ (51) $ 115 |
Reclassifications From AOCI | The following table presents the details of the reclassifications from AOCI for the years ended December 31, 2020, 2019 and 2018: In millions Amounts Reclassified from AOCI Details about AOCI Components 2020 2019 2018 Affected Line Item on the Consolidated Statements of Operations Unrealized gains (losses) on AFS securities: Realized gain (loss) on sale of securities $ 19 $ 14 $ 6 Net gains (losses) on financial instruments at fair value and foreign exchange Credit losses — (25) (5) Net investment losses related to OTTI Amortization on securities — (1) (1) Net investment income 19 (12) — Income (loss) before income taxes 19 (12) — Net income (loss) Instrument-specific credit risk of liabilities: Settlement of liabilities (6) (28) — Net gains (losses) on financial instruments at fair value and foreign exchange Total reclassifications for the period $ 13 $ (40) $ — Net income (loss) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Operating Leases Of Lessee Disclosure | $ in millions As of December 31, 2020 Balance Sheet Location Right-of-use asset $ 20 Other assets Lease liability $ 20 Other liabilities Weighted average remaining lease term (years) 8.3 Discount rate used for operating leases 7.5% Total future minimum lease payments $ 29 |
Business Developments And Ris_2
Business Developments And Risks And Uncertainties (Narrative) (Detail) $ in Millions | Feb. 10, 2021USD ($) | Jan. 31, 2021USD ($) | Jan. 01, 2020USD ($) | Jan. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($)segments | Jun. 17, 2019USD ($) |
Business Acquisition [Line Items] | |||||||
Number of operating segments | segments | 3 | ||||||
Federal legislation passed to combat the economic impact | $ 2,700,000 | ||||||
Additional corona virus relief aid package approved by congress | $ 900,000 | ||||||
Subsequent Event [Member] | |||||||
Business Acquisition [Line Items] | |||||||
New relief plan proposed to stabilize the financial system | $ 1,900,000 | ||||||
Subsequent Event [Member] | Credit Suisse [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Damages Paid Value | $ 600 | ||||||
Damages Sought Value | $ 604 | $ 604 | |||||
GO And PBA Bonds [Member] | Subsequent Event [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Outstanding bonds | $ 7,000 | ||||||
GO And PBA Bonds [Member] | Plan support agreement [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Debt And Unsecured Claims Outstanding | $ 35,000 | ||||||
Puerto Rico [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Claims payments | $ 51 | 391 | |||||
Outstanding bonds | $ 2,900 | $ 2,900 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Narrative) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Retained Earnings (Accumulated Deficit) | $ (13) | $ 607 | |
ASU 2016-13 [Member] | |||
Retained Earnings (Accumulated Deficit) | $ 42 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Variable Interest Entity [Line Items] | |||
Carrying amounts of assets | $ 5,751 | $ 7,284 | |
Carrying amounts of liabilities | 5,602 | 6,445 | |
Additional Voluntary Payment | 66 | ||
Variable Interest Entity Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying amounts of assets | 830 | 1,600 | |
Carrying amounts of liabilities | $ 623 | $ 1,500 | |
Variable Interest Entity Primary Beneficiary [Member] | U S Public Finance Insurance [Member] | |||
Variable Interest Entity [Line Items] | |||
Number of variable interest entities deconsolidated | 7 | ||
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 | 2 | |
Deconsolidation, Gain (Loss), Amount | $ (16) |
Variable Interest Entities (Sum
Variable Interest Entities (Summary Of Nonconsolidated VIEs Assets And Liabilities) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | $ 4,297 | $ 5,526 |
Carrying Value of VIE Assets | 5,751 | 7,284 |
Carrying Value of VIE Liabilities | 5,602 | 6,445 |
Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 21 | 15 |
Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 29 | 34 |
Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 455 | 781 |
Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 27 | 33 |
Loss And Loss Adjustment Expense Reserves Member [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 499 | 447 |
Global Structured Finance [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 2,863 | 3,600 |
Global Structured Finance [Member] | Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 21 | 15 |
Global Structured Finance [Member] | Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 22 | 26 |
Global Structured Finance [Member] | Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 455 | 781 |
Global Structured Finance [Member] | Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 20 | 24 |
Global Structured Finance [Member] | Loss And Loss Adjustment Expense Reserves Member [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 497 | 447 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 1,835 | 2,253 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 21 | 15 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 16 | 19 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 90 | 107 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 14 | 16 |
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 | 482 | 436 |
Global Structured Finance [Member] | Commercial Mortgage Backed Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 26 | |
Global Structured Finance [Member] | Commercial Mortgage Backed Securities [Member] | Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 0 | |
Global Structured Finance [Member] | Commercial Mortgage Backed Securities [Member] | Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 0 | |
Global Structured Finance [Member] | Commercial Mortgage Backed Securities [Member] | Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 0 | |
Global Structured Finance [Member] | Commercial Mortgage Backed Securities [Member] | Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 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 | 0 | |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 293 | 384 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 0 | 0 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 1 | 1 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 1 | 1 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 1 | 1 |
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 | 15 | 11 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 735 | 937 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 0 | 0 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 5 | 6 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 364 | 673 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 5 | 7 |
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 | 0 | 0 |
Global Public Finance [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 1,434 | 1,926 |
Global Public Finance [Member] | Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 0 | 0 |
Global Public Finance [Member] | Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 7 | 8 |
Global Public Finance [Member] | Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 0 | 0 |
Global Public Finance [Member] | Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 7 | 9 |
Global Public Finance [Member] | Loss And Loss Adjustment Expense Reserves Member [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | $ 2 | $ 0 |
Insurance Premiums (Narrative)
Insurance Premiums (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Insurance Premiums [Line Items] | ||||
Premiums receivable | $ 216 | $ 249 | $ 296 | |
Weighted average risk-free rate | 2.70% | 2.80% | ||
Weighted average expected collection term of the premiums receivable, years | 8 years 9 months | 8 years 10 months 9 days | ||
Reinsurance premiums payable | [1] | $ 38 | ||
Premiums [Member] | ||||
Insurance Premiums [Line Items] | ||||
Premiums receivable | 5 | |||
Reinsurance premiums payable | $ 15 | $ 17 | ||
[1] | Total reinsurance recoverable/(payable) is primarily related to recoverables on unpaid losses net of (payables) on salvage received. |
Insurance Premiums (Roll Forwar
Insurance Premiums (Roll Forward Of Premiums Receivable) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | ||||
Insurance Premiums [Abstract] | |||||
Premiums Receivable, Beginning balance | $ 249 | $ 296 | |||
Premium Payments Received | (30) | (43) | |||
Premiums from New Business Written | 0 | 0 | |||
Adjustments, Changes in Expected Term of Policies | (1) | (4) | |||
Adjustments, Accretion of Premiums Receivable Discount | [1] | 6 | 7 | ||
Adjustments, Other | (8) | [2] | (7) | [3] | |
Premiums Receivable, Ending balance | $ 216 | $ 249 | |||
[1] | Recorded within premiums earned on MBIA’s consolidated statement of operations. | ||||
[2] | The change primarily relates to a reduction in installment premiums due to refunding activity and the recording of an allowance for credit losses under Financial Instruments-Credit Losses, partially offset by changes in foreign exchange currency rates. | ||||
[3] | Primarily relates to the write off of uncollectible premiums and to a lesser extent realized gains due to changes in foreign currency exchange rates. |
Insurance Premiums (Undiscounte
Insurance Premiums (Undiscounted Future Amount Of Premiums Expected To Be Collected And Period Which Those Collections Are Expected To Occur) (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Insurance Premiums [Abstract] | |
Three months ending, March 31, 2021, Expected Collection of Premiums | $ 3 |
Three months ending, June 30, 2021, Expected Collection of Premiums | 10 |
Three months ending, September 30, 2021, Expected Collection of Premiums | 5 |
Three months ending, December 31, 2021, Expected Collection of Premiums | 10 |
Twelve months ending, December 31, 2022, Expected Collection of Premiums | 24 |
Twelve months ending, December 31, 2023, Expected Collection of Premiums | 22 |
Twelve months ending, December 31, 2024, Expected Collection of Premiums | 20 |
Twelve months ending, December 31, 2025, Expected Collection of Premiums | 18 |
Five years ending, December 31, 2030, Expected Collection of Premiums | 64 |
Five years ending, December 31, 2035, Expected Collection of Premiums | 45 |
Five years ending, December 31, 2040 and thereafter, Expected Collection of Premiums | 54 |
Total, Expected Collection of Premiums | $ 275 |
Insurance Premiums (Unearned Pr
Insurance Premiums (Unearned Premium Revenue Balance And Future Expected Earnings) (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Insurance Premiums [Line Items] | |
Three months ending, March 31, 2021, Total Expected Future Premium Earnings | $ 14 |
Three months ending, June 30, 2021, Total Expected Future Premium Earnings | 14 |
Three months ending, September 30, 2021, Total Expected Future Premium Earnings | 14 |
Three months ending, December 31, 2021, Total Expected Future Premium Earnings | 13 |
Twelve months ending, December 31, 2022, Total Expected Future Premium Earnings | 50 |
Twelve months ending, December 31, 2023, Total Expected Future Premium Earnings | 43 |
Twelve months ending, December 31, 2024, Total Expected Future Premium Earnings | 40 |
Twelve months ending, December 31, 2025, Total Expected Future Premium Earnings | 35 |
Five years ending, December 31, 2030, Total Expected Future Premium Earnings | 115 |
Five years ending, December 31, 2035, Total Expected Future Premium Earnings | 63 |
Five years ending, December 31, 2040 and thereafter, Total Expected Future Premium Earnings | 59 |
Total Expected Future Premium Earnings | 460 |
Unearned Premium Revenue [Member] | |
Insurance Premiums [Line Items] | |
Unearned Premiums | 405 |
Unearned Premium Revenue [Member] | March Thirty One Two Thousand Twenty One [Member] | |
Insurance Premiums [Line Items] | |
Unearned Premiums | 392 |
Unearned Premium Revenue [Member] | June Thirty Two Thousand Twenty One [Member] | |
Insurance Premiums [Line Items] | |
Unearned Premiums | 379 |
Unearned Premium Revenue [Member] | September Thirty Two Thousand Twenty One [Member] | |
Insurance Premiums [Line Items] | |
Unearned Premiums | 367 |
Unearned Premium Revenue [Member] | December Thirty One Two Thousand Twenty One [Member] | |
Insurance Premiums [Line Items] | |
Unearned Premiums | 355 |
Unearned Premium Revenue [Member] | December Thirty One Two Thousand Twenty Two [Member] | |
Insurance Premiums [Line Items] | |
Unearned Premiums | 310 |
Unearned Premium Revenue [Member] | December Thirty One Two Thousand Twenty Three [Member] | |
Insurance Premiums [Line Items] | |
Unearned Premiums | 271 |
Unearned Premium Revenue [Member] | December Thirty One Two Thousand Twenty Four [Member] | |
Insurance Premiums [Line Items] | |
Unearned Premiums | 235 |
Unearned Premium Revenue [Member] | December Thirty One Two Thousand Twenty Five [Member] | |
Insurance Premiums [Line Items] | |
Unearned Premiums | 204 |
Unearned Premium Revenue [Member] | December Thirty One Two Thousand Thirty [Member] | |
Insurance Premiums [Line Items] | |
Unearned Premiums | 104 |
Unearned Premium Revenue [Member] | December Thirty One Two Thousand Thirty Five [Member] | |
Insurance Premiums [Line Items] | |
Unearned Premiums | 50 |
Unearned Premium Revenue [Member] | December Thirty One Two Thousand Fourty And Thereafter [Member] | |
Insurance Premiums [Line Items] | |
Unearned Premiums | 0 |
Upfront [Member] | |
Insurance Premiums [Line Items] | |
Three months ending, March 31, 2021, Total Expected Future Premium Earnings | 6 |
Three months ending, June 30, 2021, Total Expected Future Premium Earnings | 6 |
Three months ending, September 30, 2021, Total Expected Future Premium Earnings | 6 |
Three months ending, December 31, 2021, Total Expected Future Premium Earnings | 6 |
Twelve months ending, December 31, 2022, Total Expected Future Premium Earnings | 21 |
Twelve months ending, December 31, 2023, Total Expected Future Premium Earnings | 19 |
Twelve months ending, December 31, 2024, Total Expected Future Premium Earnings | 17 |
Twelve months ending, December 31, 2025, Total Expected Future Premium Earnings | 15 |
Five years ending, December 31, 2030, Total Expected Future Premium Earnings | 50 |
Five years ending, December 31, 2035, Total Expected Future Premium Earnings | 24 |
Five years ending, December 31, 2040 and thereafter, Total Expected Future Premium Earnings | 16 |
Total Expected Future Premium Earnings | 186 |
Installments [Member] | |
Insurance Premiums [Line Items] | |
Three months ending, March 31, 2021, Total Expected Future Premium Earnings | 7 |
Three months ending, June 30, 2021, Total Expected Future Premium Earnings | 7 |
Three months ending, September 30, 2021, Total Expected Future Premium Earnings | 6 |
Three months ending, December 31, 2021, Total Expected Future Premium Earnings | 6 |
Twelve months ending, December 31, 2022, Total Expected Future Premium Earnings | 24 |
Twelve months ending, December 31, 2023, Total Expected Future Premium Earnings | 20 |
Twelve months ending, December 31, 2024, Total Expected Future Premium Earnings | 19 |
Twelve months ending, December 31, 2025, Total Expected Future Premium Earnings | 16 |
Five years ending, December 31, 2030, Total Expected Future Premium Earnings | 50 |
Five years ending, December 31, 2035, Total Expected Future Premium Earnings | 30 |
Five years ending, December 31, 2040 and thereafter, Total Expected Future Premium Earnings | 34 |
Total Expected Future Premium Earnings | 219 |
Accretion [Member] | |
Insurance Premiums [Line Items] | |
Three months ending, March 31, 2021, Total Expected Future Premium Earnings | 1 |
Three months ending, June 30, 2021, Total Expected Future Premium Earnings | 1 |
Three months ending, September 30, 2021, Total Expected Future Premium Earnings | 2 |
Three months ending, December 31, 2021, Total Expected Future Premium Earnings | 1 |
Twelve months ending, December 31, 2022, Total Expected Future Premium Earnings | 5 |
Twelve months ending, December 31, 2023, Total Expected Future Premium Earnings | 4 |
Twelve months ending, December 31, 2024, Total Expected Future Premium Earnings | 4 |
Twelve months ending, December 31, 2025, Total Expected Future Premium Earnings | 4 |
Five years ending, December 31, 2030, Total Expected Future Premium Earnings | 15 |
Five years ending, December 31, 2035, Total Expected Future Premium Earnings | 9 |
Five years ending, December 31, 2040 and thereafter, Total Expected Future Premium Earnings | 9 |
Total Expected Future Premium Earnings | $ 55 |
Loss And Loss Adjustment Expe_3
Loss And Loss Adjustment Expense Reserves (Loss And LAE Activity) (Narrative) (Detail) - USD ($) $ in Millions | Feb. 10, 2021 | Jan. 31, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||
Weighted average risk-free rate used to discount claim liability | 0.92% | |||||
Subsequent Event [Member] | Credit Suisse [Member] | ||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||
Damages Sought Value | $ 604 | $ 604 | ||||
Damages Paid Value | $ 600 | |||||
Lae [Member] | ||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||
Losses and loss adjustment | $ 51 | $ 29 | $ 23 | |||
Loss and loss adjustment expense reserves | $ 30 | $ 34 | ||||
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 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Loss And Lae Reserves [Member] | ||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||
Loss and loss adjustment expense reserves | [2] | $ 990 | [1] | $ 901 | [1] | $ 965 |
Insurance Loss Recoverable [Member] | ||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||
Insurance Loss Recoverable | 1,677 | 1,694 | $ 1,595 | |||
Variable Interest Entity Primary Beneficiary [Member] | ||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||
Loan repurchase commitments | 604 | 486 | ||||
Non Variable Interest Entity [Member] | ||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||
Insurance Loss Recoverable | 1,677 | 1,694 | ||||
Loss and loss adjustment expense reserves | 990 | 901 | ||||
U S Public Finance Insurance [Member] | ||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||
Insurance Loss Recoverable | 1,220 | 911 | ||||
Loss and loss adjustment expense reserves | [1] | 469 | 432 | |||
International And Structured Finance Insurance [Member] | ||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||
Insurance Loss Recoverable | [3] | 1,082 | 1,286 | |||
Loss and loss adjustment expense reserves | [1],[3] | 780 | 749 | |||
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 | 604 | 486 | ||||
International And Structured Finance Insurance [Member] | Non Variable Interest Entity [Member] | ||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||
Insurance Loss Recoverable | 457 | 783 | ||||
Loss and loss adjustment expense reserves | [1] | 521 | 469 | |||
Consolidation Elimination [Member] | International And Structured Finance Insurance [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||
Insurance Loss Recoverable | [3] | (625) | (503) | |||
Loss and loss adjustment expense reserves | [1],[3] | $ (259) | $ (280) | |||
[1] | Amounts are net of expected recoveries. | |||||
[2] | Includes changes in amount and timing of estimated payments and recoveries | |||||
[3] | Includes loan repurchase commitments of $604 million and $486 million as of December 31, 2020 and 2019, respectively. |
Loss And Loss Adjustment Expe_5
Loss And Loss Adjustment Expense Reserves (Schedule Of Loss And Loss Adjustment Expenses Reserves) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||
Changes in unearned premium revenue | $ 77 | $ 105 | $ 165 | |||
Loss And Lae Reserves [Member] | ||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||
Gross loss and LAE reserve, beginning balance | [2] | 901 | [1] | 965 | ||
Loss payments for cases | (441) | (431) | ||||
Accretion of claim liability discount | 11 | 18 | ||||
Changes in discount rates | (86) | (54) | ||||
Changes in assumptions | 606 | 407 | ||||
Changes in unearned premium revenue | 8 | 23 | ||||
Changes in LAE | (26) | |||||
Other | (9) | (1) | ||||
Gross loss and LAE reserve, ending balance | [2] | $ 990 | [1] | $ 901 | [1] | $ 965 |
[1] | Amounts are net of expected recoveries. | |||||
[2] | Includes changes in amount and timing of estimated payments and recoveries |
Loss And Loss Adjustment Expe_6
Loss And Loss Adjustment Expense Reserves (Schedule Of Insurance Loss Recoverable) (Detail) - Insurance Loss Recoverable [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Roll forward of Insurance Loss Recoverable [Line Items] | ||||
Gross Reserve beginning balance, Insurance loss recoverable | $ 1,694 | $ 1,595 | ||
Collections for Cases | (49) | (148) | ||
Accretion of Recoveries | 14 | 35 | ||
Changes in Discount Rates | 115 | 70 | ||
Changes in Assumptions | [1] | (94) | 105 | |
Other | (3) | 37 | [2] | |
Gross Reserve ending balance, Insurance loss recoverable | $ 1,677 | $ 1,694 | ||
[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 | 12 Months Ended | |||
Dec. 31, 2020USD ($)issuepolicy | Dec. 31, 2019USD ($)issuepolicy | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Number of policies | policy | 281 | 276 | ||
Number of issues | issue | [1] | 119 | 112 | |
Remaining weighted average contract period (in years) | 7 years 4 months 24 days | 7 years 8 months 12 days | ||
Principal | [2] | $ 4,847 | $ 5,588 | |
Interest | [2] | 3,469 | 3,885 | |
Total | 8,316 | 9,473 | ||
Gross claim liability | [3] | 1,088 | 965 | |
Less: Gross potential recoveries | [4] | 1,947 | 2,184 | |
Discount, net | [5] | (173) | (453) | |
Net claim liability (recoverable) | (686) | (766) | ||
Unearned premium revenue | 45 | 48 | ||
Reinsurance recoverables on paid and unpaid losses | [6] | $ 11 | $ 19 | |
Caution List Low [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Number of policies | policy | 46 | 45 | ||
Number of issues | issue | [1] | 16 | 13 | |
Remaining weighted average contract period (in years) | 6 years 4 months 24 days | 7 years 3 months 18 days | ||
Principal | $ 1,422 | [2] | $ 1,546 | |
Interest | [2] | 1,974 | 2,107 | |
Total | 3,396 | 3,653 | ||
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 | $ 10 | $ 6 | ||
Caution List Medium [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Number of policies | policy | 16 | 19 | ||
Number of issues | issue | [1] | 3 | 5 | |
Remaining weighted average contract period (in years) | 6 years 4 months 24 days | 7 years 2 months 12 days | ||
Principal | [2] | $ 123 | $ 248 | |
Interest | [2] | 54 | 110 | |
Total | 177 | 358 | ||
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 | $ 3 | ||
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 | 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 | 219 | 212 | ||
Number of issues | issue | [1] | 100 | 94 | |
Remaining weighted average contract period (in years) | 7 years 10 months 24 days | 7 years 10 months 24 days | ||
Principal | [2] | $ 3,302 | $ 3,794 | |
Interest | [2] | 1,441 | 1,668 | |
Total | 4,743 | 5,462 | ||
Gross claim liability | [3] | 1,088 | 965 | |
Less: Gross potential recoveries | [4] | 1,947 | 2,184 | |
Discount, net | [5] | (173) | (453) | |
Net claim liability (recoverable) | (686) | (766) | ||
Unearned premium revenue | $ 35 | $ 39 | ||
[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 | Feb. 10, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
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 | 20.00% | 15.00% | |||
Percentage of level 3 liabilities at fair value in total liabilities measured at fair value | 68.00% | 72.00% | |||
Cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option | $ (115) | $ 2 | $ 156 | $ 19 | |
Loan Repurchase Commitments [Member] | Subsequent Event [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Payments for Litigation Settlements | $ 600 | ||||
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 | 51 | 107 | 110 | $ 0 | |
Loss on instrument-specific credit risk recognized in earnings | $ 6 | $ 28 | $ 97 |
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 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Cash Flows [Member] | Discounted cash flow [Member] | Other Derivatives Liabilities [Member] | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Fair value, liabilities | $ 49 | $ 34 | ||
Minimum [Member] | Cash Flows [Member] | Discounted cash flow [Member] | Other Derivatives Liabilities [Member] | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Range percentage | 49.00% | 0.00% | ||
Maximum [Member] | Cash Flows [Member] | Discounted cash flow [Member] | Other Derivatives Liabilities [Member] | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Range percentage | 49.00% | 49.00% | ||
Weighted Average [Member] | Cash Flows [Member] | Discounted cash flow [Member] | Other Derivatives Liabilities [Member] | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Range percentage | 49.00% | 25.00% | [1] | |
Variable Interest Entity Primary Beneficiary [Member] | Variable Interest Entity Notes [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 | $ 303 | $ 347 | ||
Variable Interest Entity Primary Beneficiary [Member] | Loans Receivable and Other Instruments at Fair Value [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 | 120 | [2] | 136 | |
Variable Interest Entity Primary Beneficiary [Member] | Loan Repurchase Commitments [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 | $ 604 | [3] | $ 486 | |
Variable Interest Entity Primary Beneficiary [Member] | Minimum [Member] | Variable Interest Entity Notes [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] | ||||
Range percentage | 30.00% | [4] | 37.00% | |
Variable Interest Entity Primary Beneficiary [Member] | Minimum [Member] | Loans Receivable and Other Instruments at Fair Value [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] | ||||
Range percentage | (28.00%) | [4] | (20.00%) | |
Variable Interest Entity Primary Beneficiary [Member] | Maximum [Member] | Variable Interest Entity Notes [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] | ||||
Range percentage | 73.00% | [4] | 76.00% | |
Variable Interest Entity Primary Beneficiary [Member] | Maximum [Member] | Loans Receivable and Other Instruments at Fair Value [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] | ||||
Range percentage | 109.00% | [4] | 99.00% | |
Variable Interest Entity Primary Beneficiary [Member] | Weighted Average [Member] | Variable Interest Entity Notes [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] | ||||
Range percentage | 57.00% | [4] | 61.00% | |
Variable Interest Entity Primary Beneficiary [Member] | Weighted Average [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices Adjusted For Financial Guarantees Provided To VIE Obligations [Member] | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Range percentage | 22.00% | [4] | 22.00% | |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Direct Price Model [Member] | Commercial Mortgage Backed Securities [Member] | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Fair value, liabilities | $ 7 | |||
Credit Derivatives [Member] | Minimum [Member] | Nonperformance Risk [Member] | Direct Price Model [Member] | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Range percentage | 54.00% | |||
Credit Derivatives [Member] | Maximum [Member] | Nonperformance Risk [Member] | Direct Price Model [Member] | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Range percentage | 54.00% | |||
Credit Derivatives [Member] | Weighted Average [Member] | Nonperformance Risk [Member] | Direct Price Model [Member] | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Range percentage | 54.00% | |||
[1] | Midpoint of cash flows are used for the weighted average. | |||
[2] | Negative percentage represents financial guarantee policies in a receivable position. | |||
[3] | Recovery value reflects an estimate of the amount to be awarded to the Company as part of litigation seeking to enforce its contractual rights. | |||
[4] | Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. |
Fair Value Of Financial Instr_5
Fair Value Of Financial Instruments (Company's Assets And Liabilities Measured At Fair Value On Recurring Basis) (Detail) - Fair Value Measurements Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | $ 3,725 | $ 4,277 | |
Fair value financial liabilities measured on recurring basis | 675 | 690 | |
Money Market Securities [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 1 | 154 | |
Medium-term Notes [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial liabilities measured on recurring basis | 110 | 108 | |
Perpetual Debt And Equity Securities [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 62 | 55 | |
Cash and Cash Equivalents [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 158 | 75 | |
Fixed Income Funds [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | [1] | 51 | |
Fixed Maturities [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 2,673 | 3,202 | |
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 | 855 | 888 | |
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 | 195 | 200 | |
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 | 15 | 10 | |
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 | 975 | 1,266 | |
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 | 319 | 330 | |
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 | 32 | 19 | |
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 | 20 | 22 | |
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 | 121 | 140 | |
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 | 141 | 327 | |
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 | 1 | 1 | |
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 | 604 | 486 | |
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 | 6 | 8 | |
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 | 40 | 45 | |
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 | 16 | |
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 | 8 | 6 | |
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 | 7 | 8 | |
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 | 120 | 136 | |
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 | 6 | 8 | |
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 | 9 | 8 | |
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 | 14 | 18 | |
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 | 9 | |
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 | 164 | 132 | |
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 | 49 | 34 | |
Other Liabilities [Member] | Other Payable [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial liabilities measured on recurring basis | 4 | ||
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 | 350 | 403 | |
Fair Value Inputs Level 1 [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 955 | 1,058 | |
Fair value financial liabilities measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Money Market Securities [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 1 | 154 | |
Fair Value Inputs Level 1 [Member] | Medium-term Notes [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial liabilities measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Perpetual Debt And Equity Securities [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 37 | 30 | |
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 | 158 | 75 | |
Fair Value Inputs Level 1 [Member] | Fixed Income Funds [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 750 | 791 | |
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 | 750 | 791 | |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Agency [Member] | Mortgage-backed [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Other Asset Backed [Member] | Asset-backed [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Derivative Assets [Member] | Interest Rate Derivatives [Member] | Non-Insured Derivatives [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [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 | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Other Asset Backed [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Loans Receivable and Other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | 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 | 9 | 8 | |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Other [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial liabilities measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Derivative Liabilities [Member] | Interest Rate Derivatives [Member] | Non-Insured Derivatives [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial liabilities measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 1 [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 | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Other Liabilities [Member] | Other Payable [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial liabilities measured on recurring basis | 0 | ||
Fair Value Inputs Level 1 [Member] | Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial liabilities measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 2 [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 2,026 | 2,519 | |
Fair value financial liabilities measured on recurring basis | 213 | 190 | |
Fair Value Inputs Level 2 [Member] | Money Market Securities [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 2 [Member] | Medium-term Notes [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial liabilities measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 2 [Member] | Perpetual Debt And Equity Securities [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 25 | 25 | |
Fair Value Inputs Level 2 [Member] | Cash and Cash Equivalents [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 2 [Member] | Fixed Income Funds [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 1,923 | 2,410 | |
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 | 105 | 97 | |
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 | 195 | 200 | |
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 | 15 | 10 | |
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 | 975 | 1,266 | |
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 | 319 | 330 | |
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 | 32 | 19 | |
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 | 20 | 22 | |
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 | 121 | 140 | |
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 | 141 | 326 | |
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 | 1 | 1 | |
Fair Value Inputs Level 2 [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 | 0 | 0 | |
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 | 6 | 8 | |
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 | 40 | 45 | |
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 | 16 | |
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 | 8 | 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 | 7 | 8 | |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Loans Receivable and Other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Other [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 2 [Member] | Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial liabilities measured on recurring basis | 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 | 164 | 132 | |
Fair Value Inputs Level 2 [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 | 0 | 0 | |
Fair Value Inputs Level 2 [Member] | Other Liabilities [Member] | Other Payable [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial liabilities measured on recurring basis | 0 | ||
Fair Value Inputs Level 2 [Member] | Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial liabilities measured on recurring basis | 47 | 56 | |
Fair Value Inputs Level 3 [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 744 | 649 | |
Fair value financial liabilities measured on recurring basis | 462 | 500 | |
Fair Value Inputs Level 3 [Member] | Money Market Securities [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Medium-term Notes [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial liabilities measured on recurring basis | 110 | 108 | |
Fair Value Inputs Level 3 [Member] | Perpetual Debt And Equity Securities [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Cash and Cash Equivalents [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Fixed Income Funds [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 1 | |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | U S Treasury And Government [Member] | Other Fixed Maturity Investments [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Agency [Member] | Mortgage-backed [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Other Asset Backed [Member] | Asset-backed [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 1 | |
Fair Value Inputs Level 3 [Member] | Derivative Assets [Member] | Interest Rate Derivatives [Member] | Non-Insured Derivatives [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
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 | 604 | 486 | |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Other Asset Backed [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Loans Receivable and Other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 120 | 136 | |
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 | 6 | 8 | |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Other [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial assets measured on recurring basis | 14 | 18 | |
Fair Value Inputs Level 3 [Member] | Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial liabilities measured on recurring basis | 0 | 7 | |
Fair Value Inputs Level 3 [Member] | Derivative Liabilities [Member] | Interest Rate Derivatives [Member] | Non-Insured Derivatives [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fair value financial liabilities measured on recurring basis | 0 | 0 | |
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 | 49 | 34 | |
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 | ||
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 | $ 303 | $ 347 | |
[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 | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Investments held-to-maturity, fair value | $ 0 | $ 892 |
Variable interest entity notes | 623 | 1,539 |
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] | ||
Total assets | 890 | |
Long-term debt | 2,229 | 2,228 |
Medium-term notes | 598 | 570 |
Investment agreements | 269 | 304 |
Total liabilities | 3,369 | 4,238 |
Gross | (282) | (311) |
Ceded recoverable (liability) | (17) | 24 |
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 | |
Variable interest entity notes | 273 | 1,136 |
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] | ||
Total assets | 892 | |
Long-term debt | 631 | 1,073 |
Medium-term notes | 396 | 396 |
Investment agreements | 376 | 394 |
Total liabilities | 1,679 | 3,016 |
Gross | 811 | 556 |
Ceded recoverable (liability) | 45 | 56 |
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 | 892 | |
Variable interest entity notes | 276 | 1,153 |
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 1 [Member] | Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Total assets | 0 | |
Long-term debt | 0 | 0 |
Medium-term notes | 0 | 0 |
Investment agreements | 0 | 0 |
Total liabilities | 0 | 0 |
Gross | 0 | 0 |
Ceded recoverable (liability) | 0 | 0 |
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 1 [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 | 0 | |
Variable interest entity notes | 0 | 0 |
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] | ||
Total assets | 0 | |
Long-term debt | 631 | 1,073 |
Medium-term notes | 0 | 0 |
Investment agreements | 0 | 0 |
Total liabilities | 907 | 1,334 |
Gross | 0 | 0 |
Ceded recoverable (liability) | 0 | 0 |
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] | ||
Investments held-to-maturity, fair value | 0 | |
Variable interest entity notes | 276 | 261 |
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 | 892 | |
Long-term debt | 0 | 0 |
Medium-term notes | 396 | 396 |
Investment agreements | 376 | 394 |
Total liabilities | 772 | 1,682 |
Gross | 811 | 556 |
Ceded recoverable (liability) | 45 | 56 |
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 | 892 | |
Variable interest entity notes | $ 0 | $ 892 |
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 | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | ||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | $ 649 | $ 637 | |||
Total gains/(losses) included in earnings, assets | 112 | 97 | |||
Unrealized gains/(losses) included in OCI, assets | 0 | [1] | (1) | ||
Purchases, assets | 0 | 0 | |||
Issuances, assets | 0 | 0 | |||
Settlements, assets | (17) | (29) | |||
Sales, assets | 0 | (49) | |||
Transfers into level 3, assets | 0 | 0 | [2] | ||
Transfers out of level 3, assets | 0 | (6) | [2] | ||
Ending balance, fair value assets | 744 | 649 | |||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 108 | 89 | |||
Change in unrealized gains/(losses) for the period included in OCI for Liabilities still held | [1] | 0 | |||
Beginning balance, fair value liabilities | 500 | 513 | |||
Total (gains)/losses included in earnings, liabilities | 35 | 59 | |||
Unrealized (gains)/losses included in OCI, liabilities | (53) | [3] | 17 | ||
Purchases, liabilities | 0 | 0 | |||
Issuances, liabilities | 0 | 10 | |||
Settlements, liabilities | (20) | (39) | |||
Sales, liabilities | 0 | (60) | |||
Transfers into Level 3, liabilities | 0 | 0 | [2] | ||
Transfers out of Level 3, liabilities | 0 | 0 | [2] | ||
Ending balance, fair value liabilities | 462 | 500 | |||
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 35 | 25 | |||
Change in Unrealized (Gains)/ Losses for the Period Included in OCI for Liabilities still held | [3] | (51) | |||
Residential Prime Financing Receivable [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | 136 | 172 | |||
Total gains/(losses) included in earnings, assets | 0 | 35 | |||
Unrealized gains/(losses) included in OCI, assets | 0 | [1] | 0 | ||
Purchases, assets | 0 | 0 | |||
Issuances, assets | 0 | 0 | |||
Settlements, assets | (16) | (23) | |||
Sales, assets | 0 | (48) | |||
Transfers into level 3, assets | 0 | 0 | [2] | ||
Transfers out of level 3, assets | 0 | 0 | [2] | ||
Ending balance, fair value assets | 120 | 136 | |||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (4) | 26 | |||
Change in unrealized gains/(losses) for the period included in OCI for Liabilities still held | [1] | 0 | |||
Loan Repurchase Commitments [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | 486 | 418 | |||
Total gains/(losses) included in earnings, assets | 118 | 68 | |||
Unrealized gains/(losses) included in OCI, assets | 0 | [1] | 0 | ||
Purchases, assets | 0 | 0 | |||
Issuances, assets | 0 | 0 | |||
Settlements, assets | 0 | 0 | |||
Sales, assets | 0 | 0 | |||
Transfers into level 3, assets | 0 | 0 | [2] | ||
Transfers out of level 3, assets | 0 | 0 | [2] | ||
Ending balance, fair value assets | 604 | 486 | |||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 118 | 68 | |||
Change in unrealized gains/(losses) for the period included in OCI for Liabilities still held | [1] | 0 | |||
Corporate Obligations [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | 0 | 5 | |||
Total gains/(losses) included in earnings, assets | 0 | ||||
Unrealized gains/(losses) included in OCI, assets | 0 | ||||
Purchases, assets | 0 | ||||
Issuances, assets | 0 | ||||
Settlements, assets | (2) | ||||
Sales, assets | 0 | ||||
Transfers into level 3, assets | [2] | 0 | |||
Transfers out of level 3, assets | [2] | (3) | |||
Ending balance, fair value assets | 0 | ||||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 0 | ||||
Commercial Mortgage Backed Securities [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | 0 | 7 | |||
Total gains/(losses) included in earnings, assets | 0 | ||||
Unrealized gains/(losses) included in OCI, assets | 0 | ||||
Purchases, assets | 0 | ||||
Issuances, assets | 0 | ||||
Settlements, assets | (4) | ||||
Sales, assets | 0 | ||||
Transfers into level 3, assets | [2] | 0 | |||
Transfers out of level 3, assets | [2] | (3) | |||
Ending balance, fair value assets | 0 | ||||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 0 | ||||
Collateralized Debt Obligations [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | 0 | 1 | |||
Total gains/(losses) included in earnings, assets | 0 | ||||
Unrealized gains/(losses) included in OCI, assets | 0 | ||||
Purchases, assets | 0 | ||||
Issuances, assets | 0 | ||||
Settlements, assets | 0 | ||||
Sales, assets | (1) | ||||
Transfers into level 3, assets | [2] | 0 | |||
Transfers out of level 3, assets | [2] | 0 | |||
Ending balance, fair value assets | 0 | ||||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 0 | ||||
Other Asset Backed [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | 1 | 3 | |||
Total gains/(losses) included in earnings, assets | 0 | (1) | |||
Unrealized gains/(losses) included in OCI, assets | 0 | [1] | (1) | ||
Purchases, assets | 0 | 0 | |||
Issuances, assets | 0 | 0 | |||
Settlements, assets | (1) | 0 | |||
Sales, assets | 0 | 0 | |||
Transfers into level 3, assets | 0 | 0 | [2] | ||
Transfers out of level 3, assets | 0 | 0 | [2] | ||
Ending balance, fair value assets | 0 | 1 | |||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 0 | 0 | |||
Change in unrealized gains/(losses) for the period included in OCI for Liabilities still held | [1] | 0 | |||
Medium Term Notes [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value liabilities | 108 | 102 | |||
Total (gains)/losses included in earnings, liabilities | 15 | 0 | |||
Unrealized (gains)/losses included in OCI, liabilities | (13) | [3] | 6 | ||
Purchases, liabilities | 0 | 0 | |||
Issuances, liabilities | 0 | 0 | |||
Settlements, liabilities | 0 | 0 | |||
Sales, liabilities | 0 | 0 | |||
Transfers into Level 3, liabilities | 0 | 0 | [2] | ||
Transfers out of Level 3, liabilities | 0 | 0 | [2] | ||
Ending balance, fair value liabilities | 110 | 108 | |||
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 15 | 0 | |||
Change in Unrealized (Gains)/ Losses for the Period Included in OCI for Liabilities still held | [3] | (13) | |||
Credit Derivatives [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value liabilities | 7 | 33 | |||
Total (gains)/losses included in earnings, liabilities | (6) | (15) | |||
Unrealized (gains)/losses included in OCI, liabilities | 0 | [3] | 0 | ||
Purchases, liabilities | 0 | 0 | |||
Issuances, liabilities | 0 | 0 | |||
Settlements, liabilities | (1) | (11) | |||
Sales, liabilities | 0 | 0 | |||
Transfers into Level 3, liabilities | 0 | 0 | [2] | ||
Transfers out of Level 3, liabilities | 0 | 0 | [2] | ||
Ending balance, fair value liabilities | 0 | 7 | |||
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 0 | (25) | |||
Change in Unrealized (Gains)/ Losses for the Period Included in OCI for Liabilities still held | [3] | 0 | |||
Other Derivatives Liabilities [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value liabilities | 34 | 7 | |||
Total (gains)/losses included in earnings, liabilities | 15 | 27 | |||
Unrealized (gains)/losses included in OCI, liabilities | 0 | [3] | 0 | ||
Purchases, liabilities | 0 | 0 | |||
Issuances, liabilities | 0 | 0 | |||
Settlements, liabilities | 0 | 0 | |||
Sales, liabilities | 0 | 0 | |||
Transfers into Level 3, liabilities | 0 | 0 | [2] | ||
Transfers out of Level 3, liabilities | 0 | 0 | [2] | ||
Ending balance, fair value liabilities | 49 | 34 | |||
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 15 | 27 | |||
Change in Unrealized (Gains)/ Losses for the Period Included in OCI for Liabilities still held | [3] | 0 | |||
Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value liabilities | 347 | 366 | |||
Total (gains)/losses included in earnings, liabilities | 11 | 45 | |||
Unrealized (gains)/losses included in OCI, liabilities | (40) | [3] | 11 | ||
Purchases, liabilities | 0 | 0 | |||
Issuances, liabilities | 0 | 10 | |||
Settlements, liabilities | (15) | (25) | |||
Sales, liabilities | 0 | (60) | |||
Transfers into Level 3, liabilities | 0 | 0 | [2] | ||
Transfers out of Level 3, liabilities | 0 | 0 | [2] | ||
Ending balance, fair value liabilities | 303 | 347 | |||
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 5 | 21 | |||
Change in Unrealized (Gains)/ Losses for the Period Included in OCI for Liabilities still held | [3] | (38) | |||
Currency Derivatives [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | 8 | 17 | |||
Total gains/(losses) included in earnings, assets | (2) | (9) | |||
Unrealized gains/(losses) included in OCI, assets | 0 | [1] | 0 | ||
Purchases, assets | 0 | 0 | |||
Issuances, assets | 0 | 0 | |||
Settlements, assets | 0 | 0 | |||
Sales, assets | 0 | 0 | |||
Transfers into level 3, assets | 0 | 0 | [2] | ||
Transfers out of level 3, assets | 0 | 0 | [2] | ||
Ending balance, fair value assets | 6 | 8 | |||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (2) | (9) | |||
Change in unrealized gains/(losses) for the period included in OCI for Liabilities still held | [1] | 0 | |||
Other Assets [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value assets | 18 | 14 | |||
Total gains/(losses) included in earnings, assets | (4) | 4 | |||
Unrealized gains/(losses) included in OCI, assets | 0 | [1] | 0 | ||
Purchases, assets | 0 | 0 | |||
Issuances, assets | 0 | 0 | |||
Settlements, assets | 0 | 0 | |||
Sales, assets | 0 | 0 | |||
Transfers into level 3, assets | 0 | 0 | [2] | ||
Transfers out of level 3, assets | 0 | 0 | [2] | ||
Ending balance, fair value assets | 14 | 18 | |||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (4) | 4 | |||
Change in unrealized gains/(losses) for the period included in OCI for Liabilities still held | [1] | 0 | |||
Other Payable [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning balance, fair value liabilities | 4 | 5 | |||
Total (gains)/losses included in earnings, liabilities | 0 | 2 | |||
Unrealized (gains)/losses included in OCI, liabilities | 0 | [3] | 0 | ||
Purchases, liabilities | 0 | 0 | |||
Issuances, liabilities | 0 | 0 | |||
Settlements, liabilities | (4) | (3) | |||
Sales, liabilities | 0 | 0 | |||
Transfers into Level 3, liabilities | 0 | 0 | [2] | ||
Transfers out of Level 3, liabilities | 0 | 0 | [2] | ||
Ending balance, fair value liabilities | 0 | 4 | |||
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 0 | $ 2 | |||
Change in Unrealized (Gains)/ Losses for the Period Included in OCI for Liabilities still held | [3] | $ 0 | |||
[1] | Reported within the “Unrealized gains (losses) on available-for-sale securities” on MBIA’s Consolidated Statement of Comprehensive Income/Loss. | ||||
[2] | Transferred in and out at the end of the period. | ||||
[3] | Reported within the “Instrument-specific credit risk of liabilities measured at fair value” on MBIA’s Consolidated Statement of Comprehensive Income/Loss. |
Fair Value Of Financial Instr_8
Fair Value Of Financial Instruments (Realized And Unrealized Gains And Losses Included In Earnings Pertaining To Level 3 Assets And Liabilities) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Unrealized gains (losses) on insured derivatives | $ 7 | $ 25 | $ 31 |
Net gains (losses) on financial instruments at fair value and foreign exchange | (38) | 52 | (17) |
Net investment losses related to other-than-temporary impairments | (67) | (5) | |
Other net realized gains (losses) | 0 | 4 | 0 |
Variable Interest Entity Primary Beneficiary [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Net gains (losses) on financial instruments at fair value and foreign exchange | 108 | 105 | 25 |
Other net realized gains (losses) | 37 | (62) | (171) |
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 | 7 | 25 | 30 |
Realized gains (losses) and other settlements on insured derivatives | (1) | (10) | (56) |
Net gains (losses) on financial instruments at fair value and foreign exchange | (30) | (26) | 17 |
Net investment losses related to other-than-temporary impairments | 0 | (1) | 0 |
Other net realized gains (losses) | 0 | (2) | (1) |
Total revenues | 77 | 39 | 15 |
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 | 0 | 25 | 30 |
Realized gains (losses) and other settlements on insured derivatives | 0 | 0 | 0 |
Net gains (losses) on financial instruments at fair value and foreign exchange | (30) | (27) | 8 |
Net investment losses related to other-than-temporary impairments | 0 | 0 | 0 |
Other net realized gains (losses) | 0 | (2) | (1) |
Total revenues | 73 | 64 | 54 |
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 | 101 | 53 | 25 |
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 | $ 103 | $ 68 | $ 17 |
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 | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Accounts Notes And Loans Receivable [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | $ (38) | $ 52 | $ (17) | |
Non Variable Interest Entity [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | (38) | 52 | (17) | |
Variable Interest Entity [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 108 | 105 | 25 | |
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 | 15 | (11) |
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] | 4 | 95 | (25) |
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] | 0 | 35 | (100) |
Loans Receivable and Other Instruments at Fair Value [Member] | Variable Interest Entity [Member] | Corporate Loans and Other Instruments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [2] | 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] | 118 | 68 | 12 |
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] | (4) | 4 | 0 |
Medium Term Notes [Member] | Non Variable Interest Entity [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [1] | (15) | 1 | 19 |
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 | (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] | $ (12) | $ (89) | $ 118 |
[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) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Residential Mortgage Loans [Member] | Loans Receivable [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Loans receivable and other instruments, contractual outstanding principal | $ 89 | $ 107 |
Loans receivable and other instruments, 90 days or more past due, contractual outstanding principal | 147 | 154 |
Loans receivable and other instruments, fair value | 89 | 107 |
Loans receivable and other instruments, 90 days or more past due, fair value | 31 | 29 |
Loans receivable and other instruments, difference | 0 | 0 |
Loans receivable and other instruments, 90 days or more past due, difference | 116 | 125 |
Total Loans Receivable and Other Instruments [Member] | Loans Receivable [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Loans receivable and other instruments, contractual outstanding principal | 236 | 261 |
Loans receivable and other instruments, fair value | 120 | 136 |
Loans receivable and other instruments, difference | 116 | 125 |
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 | 1,117 | 1,126 |
Long-term debt instruments, fair value | 350 | 403 |
Long-term debt instruments, difference | 767 | 723 |
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 | 122 | 112 |
Long-term debt instruments, fair value | 110 | 108 |
Long-term debt instruments, difference | $ 12 | $ 4 |
Investments (Narrative) (Detail
Investments (Narrative) (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security | |
Schedule Of Investments [Line Items] | ||
Fair value of securities on deposit with various regulatory authorities | $ | $ 11 | |
Fair value of securities pledged as collateral | $ | $ 282 | $ 313 |
Number of securities in unrealized loss position for a continuous 12 month period | security | 42 | 63 |
Rate that a security's fair value is below book value | 5.00% | 5.00% |
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 | 9 years | 10 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 | 9 | 16 |
Investments (Amortized Cost And
Investments (Amortized Cost And Fair Value Of Available-For-Sale and Held-To-Maturity Investment Portfolios) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity Primary Beneficiary [Member] | |||
Held To Maturity Securities [Abstract] | |||
Total held-to-maturity, amortized cost | $ 890 | ||
Gross unrealized gains | 2 | ||
Gross unrealized losses | 0 | ||
Total held-to-maturity investments, fair value | $ 0 | 892 | |
Other-Than-Temporary Impairments | 0 | ||
Corporate Obligations [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Held To Maturity Securities [Abstract] | |||
Total held-to-maturity, amortized cost | 890 | ||
Gross unrealized gains | 2 | ||
Gross unrealized losses | 0 | ||
Total held-to-maturity investments, fair value | 892 | ||
Other-Than-Temporary Impairments | 0 | ||
Fixed Maturities [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 2,360 | 2,984 | |
Allowance for Credit Losess | 0 | ||
Gross unrealized gains | 184 | 126 | |
Gross unrealized losses | (5) | (11) | |
Total available-for-sale, fair value | 2,539 | 3,099 | |
Other-than-temporary impairments | 0 | ||
Fixed Maturities [Member] | U S Treasury And Government [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 775 | 838 | |
Allowance for Credit Losess | 0 | ||
Gross unrealized gains | 75 | 46 | |
Gross unrealized losses | (1) | (2) | |
Total available-for-sale, fair value | 849 | 882 | |
Other-than-temporary impairments | [1] | 0 | |
Fixed Maturities [Member] | US States And Political Subdivisions [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 162 | 178 | |
Allowance for Credit Losess | 0 | ||
Gross unrealized gains | 32 | 22 | |
Gross unrealized losses | 0 | 0 | |
Total available-for-sale, fair value | 194 | 200 | |
Other-than-temporary impairments | [1] | 0 | |
Fixed Maturities [Member] | Foreign Governments [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 11 | 8 | |
Allowance for Credit Losess | 0 | ||
Gross unrealized gains | 1 | 1 | |
Gross unrealized losses | 0 | 0 | |
Total available-for-sale, fair value | 12 | 9 | |
Other-than-temporary impairments | [1] | 0 | |
Fixed Maturities [Member] | Corporate Obligations [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 827 | 1,140 | |
Allowance for Credit Losess | 0 | ||
Gross unrealized gains | 64 | 52 | |
Gross unrealized losses | (1) | (1) | |
Total available-for-sale, fair value | 890 | 1,191 | |
Other-than-temporary impairments | [1] | 0 | |
Fixed Maturities [Member] | Residential Mortgage-Backed Agency [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 305 | 317 | |
Allowance for Credit Losess | 0 | ||
Gross unrealized gains | 8 | 3 | |
Gross unrealized losses | (1) | 0 | |
Total available-for-sale, fair value | 312 | 320 | |
Other-than-temporary impairments | [1] | 0 | |
Fixed Maturities [Member] | Residential Mortgage-Backed Non-Agency [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 22 | 23 | |
Allowance for Credit Losess | 0 | ||
Gross unrealized gains | 3 | 1 | |
Gross unrealized losses | 0 | (5) | |
Total available-for-sale, fair value | 25 | 19 | |
Other-than-temporary impairments | [1] | 0 | |
Fixed Maturities [Member] | Commercial Mortgage-Backed [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 17 | 20 | |
Allowance for Credit Losess | 0 | ||
Gross unrealized gains | 1 | 0 | |
Gross unrealized losses | 0 | 0 | |
Total available-for-sale, fair value | 18 | 20 | |
Other-than-temporary impairments | 0 | ||
Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 120 | 139 | |
Allowance for Credit Losess | 0 | ||
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | (2) | (2) | |
Total available-for-sale, fair value | 118 | 137 | |
Other-than-temporary impairments | 0 | ||
Fixed Maturities [Member] | Other Asset-Backed [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 121 | 321 | |
Allowance for Credit Losess | 0 | ||
Gross unrealized gains | 0 | 1 | |
Gross unrealized losses | 0 | (1) | |
Total available-for-sale, fair value | $ 121 | 321 | |
Other-than-temporary impairments | $ 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 | Dec. 31, 2020USD ($) |
Available For Sale Securities [Abstract] | |
Due in one year or less | $ 509 |
Due after one year through five years | 363 |
Due after five years through ten years | 266 |
Due after ten years | 637 |
Mortgage-Backed and Asset-Backed | 585 |
Total Available-For-Sale, amortized cost | 2,360 |
Due in one year or less | 511 |
Due after one year through five years | 379 |
Due after five years through ten years | 296 |
Due after ten years | 759 |
Mortgage-Backed and Asset-Backed | 594 |
Total Available-For-Sale, fair value | $ 2,539 |
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | $ 325 | $ 371 |
Less than 12 months, unrealized losses | (3) | (3) |
12 months or longer, fair value | 91 | 206 |
12 months or longer, unrealized losses | (2) | (8) |
Total available-for-sale, fair value | 416 | 577 |
Total available-for-sale, unrealized losses | (5) | (11) |
U S Treasury And Government [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 99 | 148 |
Less than 12 months, unrealized losses | (1) | (1) |
12 months or longer, fair value | 0 | 79 |
12 months or longer, unrealized losses | 0 | (1) |
Total available-for-sale, fair value | 99 | 227 |
Total available-for-sale, unrealized losses | (1) | (2) |
US States And Political Subdivisions [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 11 | |
Less than 12 months, unrealized losses | 0 | |
12 months or longer, fair value | 15 | |
12 months or longer, unrealized losses | 0 | |
Total available-for-sale, fair value | 26 | |
Total available-for-sale, unrealized losses | 0 | |
Foreign Government Debt [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 2 | |
Less than 12 months, unrealized losses | 0 | |
12 months or longer, fair value | 0 | |
12 months or longer, unrealized losses | 0 | |
Total available-for-sale, fair value | 2 | |
Total available-for-sale, unrealized losses | 0 | |
Corporate Obligations [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 103 | 53 |
Less than 12 months, unrealized losses | (1) | (1) |
12 months or longer, fair value | 7 | 10 |
12 months or longer, unrealized losses | 0 | 0 |
Total available-for-sale, fair value | 110 | 63 |
Total available-for-sale, unrealized losses | (1) | (1) |
Residential Mortgage Backed Agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 53 | 62 |
Less than 12 months, unrealized losses | (1) | 0 |
12 months or longer, fair value | 0 | 7 |
12 months or longer, unrealized losses | 0 | 0 |
Total available-for-sale, fair value | 53 | 69 |
Total available-for-sale, unrealized losses | (1) | 0 |
Residential Mortgage Backed Non Agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 2 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 1 | 11 |
12 months or longer, unrealized losses | 0 | (5) |
Total available-for-sale, fair value | 3 | 11 |
Total available-for-sale, unrealized losses | 0 | (5) |
Commercial Mortgage Backed Securities [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 0 | 5 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 5 | 0 |
12 months or longer, unrealized losses | 0 | 0 |
Total available-for-sale, fair value | 5 | 5 |
Total available-for-sale, unrealized losses | 0 | 0 |
Collateralized Debt Obligations [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 37 | 44 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 78 | 77 |
12 months or longer, unrealized losses | (2) | (2) |
Total available-for-sale, fair value | 115 | 121 |
Total available-for-sale, unrealized losses | (2) | (2) |
Other Asset Backed [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 29 | 48 |
Less than 12 months, unrealized losses | 0 | (1) |
12 months or longer, fair value | 0 | 7 |
12 months or longer, unrealized losses | 0 | 0 |
Total available-for-sale, fair value | 29 | 55 |
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 | Dec. 31, 2020USD ($)security |
> 5% To 15% [Member] | |
Available For Sale Securities [Abstract] | |
Number of available-for-sale securities in unrealized loss position | security | 6 |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 3 |
Available For Sale Securities | $ 3 |
Held To Maturity Securities [Abstract] | |
Percentage Of Fair Value Below Book Value Minimum | 5.00% |
Percentage Of Fair Value Below Book Value Maximum | 15.00% |
> 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 | $ 0 |
Available For Sale Securities | $ 0 |
Held To Maturity Securities [Abstract] | |
Percentage Of Fair Value Below Book Value Minimum | 15.00% |
Percentage Of Fair Value Below Book Value Maximum | 25.00% |
> 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 | $ 0 |
Available For Sale Securities | $ 0 |
Held To Maturity Securities [Abstract] | |
Percentage Of Fair Value Below Book Value Minimum | 50.00% |
Greater Than 5% [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 | $ 3 |
Available For Sale Securities | $ 3 |
Investments (Securities Held In
Investments (Securities Held In Unrealized Loss Position And Insured By Financial Guarantor) (Detail) - Financial Guarantee [Member] $ in Millions | Dec. 31, 2020USD ($) | |
Schedule Of Investments [Line Items] | ||
Total Available-For-Sale, Fair Value | $ 3 | |
Gross unrealized losses | 0 | |
Loss and loss adjustment expense reserves | 1 | [1] |
Mortgage-backed [Member] | ||
Schedule Of Investments [Line Items] | ||
Total Available-For-Sale, Fair Value | 3 | |
Gross unrealized losses | 0 | |
Loss and loss adjustment expense reserves | $ 1 | [1] |
[1] | Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured. |
Investments - (Summary of Allow
Investments - (Summary of Allowance for Credit Losses on HTM Investments) (Detail) - Variable Interest Entity Primary Beneficiary [Member] - Accounting Standards Update 2016-13 [Member] $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Beginning balance | $ 37 | [1] |
Current period provision for expected credit losses | (37) | |
Initial allowance recognized for PCD assets | 0 | |
Write- Offs | 0 | |
Recoveries | 0 | |
Ending balance | 0 | |
Corporate Obligations [Member] | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 37 | [1] |
Current period provision for expected credit losses | (37) | |
Initial allowance recognized for PCD assets | 0 | |
Write- Offs | 0 | |
Recoveries | 0 | |
Ending balance | $ 0 | |
[1] | Represents transition adjustment upon adoption of ASU 2016-13. |
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 | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other than temporary impairment credit lossesfor available for sale securities rollforward [Abstract] | ||
Beginning Balance | $ 37 | $ 32 |
Additions For Credit Loss Impairments Recognized In The Current Period On Securities Previously Impaired | 67 | 5 |
Reductions for credit loss impairments previously recognized on securities impaired to fair value during the period | (104) | 0 |
Ending Balance | $ 0 | $ 37 |
Investments (Net Realized Gains
Investments (Net Realized Gains (Losses) From Sales Of Available-For-Sale Securities) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments [Abstract] | |||
Proceeds from sales | $ 1,095 | $ 2,195 | $ 2,117 |
Available For Sale Securities Realized Gain Loss [Abstract] | |||
Gross realized gains | 59 | 103 | 6 |
Gross realized losses | $ (15) | $ (4) | $ (19) |
Investments (Portion Of Unreali
Investments (Portion Of Unrealized Gains And Losses On Equity Investments Held) (Detail) - Equity Securities [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gains (losses) on equity investments [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Realized investment gains (losses) | $ 3 | $ 11 | $ (4) |
Gains (losses) on equity investments sold during the period [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Realized investment gains (losses) | (1) | 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) | $ 4 | $ 10 | $ (5) |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Detail) $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Derivative [Line Items] | |||
Cash collateral posted to derivative counterparties | $ 0 | $ 0 | |
Securities posted as collateral to derivative counterparties | $ 214 | $ 181 | |
Number of credit support annexes | 1 | 1 | |
Fair value of Credit Support Annex | $ 1 | $ 1 | |
Derivative Instrument [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Insured swaps | 2,534 | 2,737 | |
Insured Swaps [Member] | Derivative Instrument [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Insured swaps | 1,925 | ||
Insurance Operations [Member] | |||
Derivative [Line Items] | |||
Insured swaps | 1,743 | 1,957 | |
Insurance Operations [Member] | Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Insured swaps | 1,743 | 1,925 | [1] |
Insurance Operations [Member] | Credit Rating Aa [Member] | |||
Derivative [Line Items] | |||
Insured swaps | 58 | 121 | |
Insurance Operations [Member] | Credit Rating Aa [Member] | Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Insured swaps | 58 | 121 | [2] |
Insurance Operations [Member] | Credit Rating A [Member] | |||
Derivative [Line Items] | |||
Insured swaps | 1,327 | 1,371 | |
Insurance Operations [Member] | Credit Rating A [Member] | Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Insured swaps | 1,327 | 1,371 | [3] |
Insurance Operations [Member] | Credit Rating Bbb [Member] | |||
Derivative [Line Items] | |||
Insured swaps | 358 | 433 | |
Insurance Operations [Member] | Credit Rating Bbb [Member] | Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Insured swaps | $ 358 | 433 | [4] |
Previously Reported [Member] | Insured Swaps [Member] | Derivative Instrument [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Insured swaps | 1,795 | ||
Previously Reported [Member] | Insurance Operations [Member] | Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Insured swaps | 1,795 | ||
Previously Reported [Member] | Insurance Operations [Member] | Credit Rating Aa [Member] | Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Insured swaps | 66 | ||
Previously Reported [Member] | Insurance Operations [Member] | Credit Rating A [Member] | Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Insured swaps | 1,284 | ||
Previously Reported [Member] | Insurance Operations [Member] | Credit Rating Bbb [Member] | Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Insured swaps | $ 445 | ||
[1] | The Company revised its previously reported amount of $1,795 million to $1,925 million. | ||
[2] | The Company revised its previously reported amount of $66 million to $121 million. | ||
[3] | The Company revised its previously reported amount of $1,284 million to $1,371 million. | ||
[4] | The Company revised its previously reported amount of $445 million to $433 million. |
Derivative Instruments (Credit
Derivative Instruments (Credit Derivatives Sold) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Credit Default Swap [Member] | |||
Derivative [Line Items] | |||
Weighted average remaining expected maturity | 1 year | ||
Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Weighted average remaining expected maturity | 13 years 10 months 24 days | 14 years | |
Insurance Operations [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | $ 1,743 | $ 1,957 | |
Total fair value of credit derivatives | (2) | (9) | |
Insurance Operations [Member] | Credit Default Swap [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 32 | ||
Total fair value of credit derivatives | (7) | ||
Insurance Operations [Member] | Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 1,743 | 1,925 | [1] |
Total fair value of credit derivatives | (2) | (2) | |
Credit Rating Aaa [Member] | Insurance Operations [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 0 | 0 | |
Total fair value of credit derivatives | 0 | 0 | |
Credit Rating Aaa [Member] | Insurance Operations [Member] | Credit Default Swap [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 0 | ||
Credit Rating Aaa [Member] | Insurance Operations [Member] | Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 0 | 0 | |
Credit Rating Aa [Member] | Insurance Operations [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 58 | 121 | |
Total fair value of credit derivatives | 0 | 0 | |
Credit Rating Aa [Member] | Insurance Operations [Member] | Credit Default Swap [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 0 | ||
Credit Rating Aa [Member] | Insurance Operations [Member] | Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 58 | 121 | [2] |
Credit Rating A [Member] | Insurance Operations [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 1,327 | 1,371 | |
Total fair value of credit derivatives | (1) | (1) | |
Credit Rating A [Member] | Insurance Operations [Member] | Credit Default Swap [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 0 | ||
Credit Rating A [Member] | Insurance Operations [Member] | Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 1,327 | 1,371 | [3] |
Credit Rating Bbb [Member] | Insurance Operations [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 358 | 433 | |
Total fair value of credit derivatives | (1) | (1) | |
Credit Rating Bbb [Member] | Insurance Operations [Member] | Credit Default Swap [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 0 | ||
Credit Rating Bbb [Member] | Insurance Operations [Member] | Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 358 | 433 | [4] |
Credit Rating Below Investment Grade [Member] | Insurance Operations [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 0 | 32 | |
Total fair value of credit derivatives | (7) | ||
Credit Rating Below Investment Grade [Member] | Insurance Operations [Member] | Credit Default Swap [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 32 | ||
Credit Rating Below Investment Grade [Member] | Insurance Operations [Member] | Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | $ 0 | $ 0 | |
[1] | The Company revised its previously reported amount of $1,795 million to $1,925 million. | ||
[2] | The Company revised its previously reported amount of $66 million to $121 million. | ||
[3] | The Company revised its previously reported amount of $1,284 million to $1,371 million. | ||
[4] | The Company revised its previously reported amount of $445 million to $433 million. |
Derivative Instruments (Total F
Derivative Instruments (Total Fair Value Of Company's Derivative Assets And Liabilities By Instrument And Balance Sheet Location, Before Counterparty Netting) (Detail) - Not Designated as Hedging Instrument [Member] - Derivative Instrument [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | ||
Derivative [Line Items] | ||||
Derivative notional amount | $ 2,534 | $ 2,737 | ||
Derivative Assets, Not designated, Fair Value | [1] | 7 | 9 | |
Derivative Liabilities, Not designated, Fair Value | [1] | (225) | (190) | |
Insured credit default swaps [Member] | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 32 | |||
Insured credit default swaps [Member] | Other assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Assets, Not designated, Fair Value | [1] | 0 | ||
Insured credit default swaps [Member] | Derivative liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liabilities, Not designated, Fair Value | [1] | (7) | ||
Insured swaps [Member] | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 1,743 | 1,925 | [2] | |
Insured swaps [Member] | Other assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Assets, Not designated, Fair Value | [1] | 0 | 0 | |
Insured swaps [Member] | Derivative liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liabilities, Not designated, Fair Value | [1] | (2) | (2) | |
Interest rate swaps [Member] | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 437 | 441 | ||
Interest rate swaps [Member] | Other assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Assets, Not designated, Fair Value | [1] | 1 | 1 | |
Interest rate swaps [Member] | Derivative liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liabilities, Not designated, Fair Value | [1] | (164) | (132) | |
Interest rate swaps-embedded [Member] | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 252 | 232 | ||
Interest rate swaps-embedded [Member] | Medium-term notes [Member] | ||||
Derivative [Line Items] | ||||
Derivative Assets, Not designated, Fair Value | [1] | 0 | 0 | |
Derivative Liabilities, Not designated, Fair Value | [1] | (10) | (15) | |
Currency swaps-VIE [Member] | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 53 | 58 | ||
Currency swaps-VIE [Member] | Other assets-VIE [Member] | ||||
Derivative [Line Items] | ||||
Derivative Assets, Not designated, Fair Value | [1] | 6 | 8 | |
Currency swaps-VIE [Member] | Derivative liabilities-VIE [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liabilities, Not designated, Fair Value | [1] | 0 | 0 | |
All other [Member] | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 49 | 49 | ||
All other [Member] | Other assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Assets, Not designated, Fair Value | [1] | 0 | 0 | |
All other [Member] | Derivative liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liabilities, Not designated, Fair Value | [1] | $ (49) | $ (34) | |
[1] | In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Company’s embedded derivative instruments is determined by the location of the related host contract. | |||
[2] | The Company revised its previously reported amount of $1,795 million to $1,925 million. |
Derivative Instruments (Effect
Derivative Instruments (Effect Of Derivative Instruments On Consolidated Statements Of Operations) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Net gain/(loss) recognized in income | $ (53) | $ (85) | $ (27) |
Unrealized Gains Losses On Insured Derivatives [Member] | Credit Default Swap [Member] | |||
Derivative [Line Items] | |||
Net gain/(loss) recognized in income | 7 | 25 | 31 |
Realized Gains Losses And Other Settlements On Insured Derivatives [Member] | Credit Default Swap [Member] | |||
Derivative [Line Items] | |||
Net gain/(loss) recognized in income | (1) | (10) | (56) |
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 | (42) | (66) | 4 |
Net gains (losses) on financial instruments at fair value and foreign exchange [Member | Currency Swaps Vie [Member] | |||
Derivative [Line Items] | |||
Net gain/(loss) recognized in income | (2) | (8) | (2) |
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 | $ (15) | $ (26) | $ (4) |
Debt (Narrative) (Detail)
Debt (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Net gains (losses) on extinguishment of debt | $ (1) | $ 3 | |
long-term debt principal amount issued | $ 2,229 | 2,228 | |
MBIA Inc. Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 5.70% | ||
Long-term debt, maturity year | 2034 | ||
MBIA Corp Surplus Notes [Member] | |||
Debt Instrument [Line Items] | |||
Callable date for fifth anniversary of initial callable date | Jan. 15, 2023 | ||
Mbia Inc. Debentures [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 7.00% | ||
Long-term debt, maturity year | 2025 | ||
6.400% Senior Notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Percentage of debt redemption | 100.00% | ||
Debt instrument interest rate | 6.40% | ||
Long-term debt, maturity year | 2022 | ||
long-term debt principal amount issued | $ 0 | 115 | |
Long-term debt principal amount previously purchased | $ 115 | $ 150 | |
Medium-term notes [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 2.97% | 3.07% | |
Investment Agreement Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 5.86% | 5.86% | |
Refinanced Facility [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from issuance of senior notes | $ 54 | ||
Debt issuance cost paid | 6 | ||
Refinanced Facility [Member] | Expenses Of Consolidated Variable Interest Entities [Member] | |||
Debt Instrument [Line Items] | |||
Debt issuance cost expensed | 3 | ||
MBIA Corp Financing Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 12.00% | ||
Long-term debt, maturity date | Jan. 20, 2022 | ||
MBIA Corp Financing Facility [Member] | Initial [Member] | |||
Debt Instrument [Line Items] | |||
long-term debt principal amount issued | 278 | ||
MBIA Corp Financing Facility [Member] | Outstanding [Member] | |||
Debt Instrument [Line Items] | |||
long-term debt principal amount issued | $ 273 | $ 246 | |
Mbia Inc [Member] | MBIA Corp Surplus Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt principal amount previously purchased | 13 | ||
National [Member] | MBIA Inc. Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt principal amount previously purchased | 308 | ||
National [Member] | Mbia Inc. Debentures [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt principal amount previously purchased | 10 | ||
Variable Interest Entity [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 5.57% | ||
Variable Interest Entity Primary Beneficiary [Member] | |||
Debt Instrument [Line Items] | |||
long-term debt principal amount issued | 1,400 | $ 2,300 | |
MBIA Insured Variable Interest Entity Primary Beneficiary [Member] | |||
Debt Instrument [Line Items] | |||
long-term debt principal amount issued | $ 722 | $ 1,600 | |
Maximum [Member] | Medium-term notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 6.00% | 6.00% | |
Maximum [Member] | Investment Agreement Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 6.88% | 6.88% | |
Maximum [Member] | Variable Interest Entity [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 12.00% | ||
Minimum [Member] | Medium-term notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 0.00% | 0.00% | |
Minimum [Member] | Investment Agreement Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.78% | 4.78% | |
Minimum [Member] | Variable Interest Entity [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.71% |
Debt (Long-Term Debt) (Detail)
Debt (Long-Term Debt) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 2,229 | $ 2,228 | |
Debt issuance costs | 10 | 12 | |
6.400% Senior Notes Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 0 | 115 | |
Long-term debt, interest rate | 6.40% | ||
Long-term debt, maturity year | 2022 | ||
7.000% Debentures Due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 46 | 46 | |
Long-term debt, interest rate | 7.00% | ||
Long-term debt, maturity year | 2025 | ||
7.150% Debentures Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 100 | 100 | |
Long-term debt, interest rate | 7.15% | ||
Long-term debt, maturity year | 2027 | ||
6.625% Debentures Due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 141 | 141 | |
Long-term debt, interest rate | 6.625% | ||
Long-term debt, maturity year | 2028 | ||
5.700% Senior Notes Due 2034 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [1] | $ 21 | 21 |
Long-term debt, interest rate | 5.70% | ||
Long-term debt, maturity year | 2034 | ||
Surplus Notes due 2033 [Member] | |||
Debt Instrument [Line Items] | |||
Surplus notes outstanding | [2] | $ 940 | 940 |
Long-term debt, maturity year | 2033 | ||
Accrued Interest [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 991 | $ 877 | |
[1] | Callable anytime at the greater of par or the present value of the remaining scheduled payments of principal and interest. | ||
[2] | Contractual interest rate is based on three month LIBOR plus 11.26%. |
Debt (Aggregate Maturity Of Deb
Debt (Aggregate Maturity Of Debt Obligations) (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Corporate debt [Member] | |
Debt Instrument [Line Items] | |
2021 | $ 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 46 |
Thereafter | 262 |
Total | 308 |
Surplus Notes due 2033 [Member] | |
Debt Instrument [Line Items] | |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
Thereafter | 940 |
Total | 940 |
Total debt obligations due [Member] | |
Debt Instrument [Line Items] | |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 46 |
Thereafter | 1,202 |
Total | $ 1,248 |
Debt (Principal Payments For In
Debt (Principal Payments For Investment Agreements, MTNs and VIE Obligations) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Debt Instrument [Line Items] | |||
Total expected principal payments | $ 2,229 | $ 2,228 | |
Investment Agreement Obligations [Member] | |||
Debt Instrument [Line Items] | |||
2021 | 2 | ||
2022 | 3 | ||
2023 | 19 | ||
2024 | 23 | ||
2025 | 35 | ||
Thereafter | 225 | ||
Total expected principal payments | [1] | 307 | |
Less discount and other adjustments | [2] | 38 | |
Total | 269 | ||
Accrued interest | 4 | ||
Carrying amount adjustment | $ 3 | ||
Latest maturity year | 2037 | ||
Medium-term notes [Member] | |||
Debt Instrument [Line Items] | |||
2021 | $ 0 | ||
2022 | 62 | ||
2023 | 12 | ||
2024 | 123 | ||
2025 | 61 | ||
Thereafter | 659 | ||
Total expected principal payments | [3] | 917 | |
Less discount and other adjustments | [4] | 207 | |
Total | 710 | ||
Accrued interest | 4 | ||
Carrying amount adjustment | $ 29 | ||
Latest maturity year | 2036 | ||
Variable Interest Entity Debt [Member] | International And Structured Finance Insurance [Member] | |||
Debt Instrument [Line Items] | |||
Latest maturity year | 2038 | ||
Variable Interest Entity Debt [Member] | MBIA insured Variable Interest Entity [Member] | |||
Debt Instrument [Line Items] | |||
2021 | $ 42 | ||
2022 | 308 | ||
2023 | 28 | ||
2024 | 14 | ||
2025 | 24 | ||
Thereafter | 306 | ||
Total expected principal payments | $ 722 | ||
[1] | Amounts reflect principal due at maturity for investment agreements issued at a discount. | ||
[2] | Discount is net of carrying amount adjustment of $3 million and accrued interest adjustment of $4 million. | ||
[3] | Amounts reflect principal due at maturity for notes issued at a discount. | ||
[4] | Discount is net of carrying amount and market value adjustments of $29 million and accrued interest adjustment of $4 million. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Non Variable Interest Entities [Line Items] | ||
NOL carryforward | $ 3,100 | |
Foreign tax credit | 61 | $ 61 |
Unrecognized Tax Benefits | 0 | 0 |
Valuation allowance on net deferred tax asset | $ 966 | $ 873 |
Income Taxes (Income before Inc
Income Taxes (Income before Income Taxes) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income (loss) before income taxes | $ (578) | $ (357) | $ (296) |
Domestic [Member] | |||
Income (loss) before income taxes | (578) | (357) | (287) |
Foreign [Member] | |||
Income (loss) before income taxes | $ 0 | $ 0 | $ (9) |
Income Taxes (Income Taxes and
Income Taxes (Income Taxes and Shareholders' Equity) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current taxes: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 0 | 2 | 1 |
Deferred taxes: | |||
Federal | 0 | 0 | (1) |
Foreign | 0 | 0 | 0 |
Provision (benefit) for income taxes | 0 | 2 | 0 |
Income taxes charged (credited) to shareholders' equity related to: | |||
Change in unrealized gains (losses) on AFS securities | 0 | 0 | 5 |
Change in AFS securities with OTTI | 0 | 0 | 0 |
Change in foreign currency translation | 0 | 0 | 0 |
Total income taxes charged (credited) to shareholders' equity | 0 | 0 | 5 |
Total effect of income taxes | $ 0 | $ 2 | $ 5 |
Income Taxes (Income Tax Rate R
Income Taxes (Income Tax Rate Reconciliation) (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective income tax rate continuing operations tax rate reconciliation [Abstract] | |||
Federal income tax computed at the statutory rate | 21.00% | 21.00% | 21.00% |
Increase (reduction) in taxes resulting from: [Abstract] | |||
Mark-to-market on warrants | 0.00% | 0.00% | (0.70%) |
Change in valuation allowance | (20.30%) | (20.70%) | (20.90%) |
State income tax, net of federal benefit | 0.00% | (0.40%) | 0.00% |
Deferred inventory adjustments | 0.00% | 0.00% | (1.00%) |
Other | (0.70%) | (0.50%) | 1.60% |
Effective tax rate | 0.00% | (0.60%) | 0.00% |
Income Taxes (Components Of Def
Income Taxes (Components Of Deferred Tax Assets and Liabilities) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax liabilities: | ||
Unearned premium reserve | $ 48 | $ 54 |
Deferred acquisition costs | 10 | 13 |
Net unrealized gains and losses in accumulated other comprehensive income | 25 | 0 |
Net deferred taxes on VIEs | 53 | 51 |
Other | 6 | 0 |
Total gross deferred tax liabilities | 142 | 118 |
Deferred tax assets: | ||
Compensation and employee benefits | 9 | 8 |
Accrued interest | 210 | 185 |
Partnership basis difference | 10 | 10 |
Loss and loss adjustment expense reserves | 98 | 101 |
Net operating loss | 656 | 590 |
Foreign tax credits | 61 | 61 |
Other-than-temporary impairments | 0 | 2 |
Net unrealized losses on insured derivatives | 10 | 9 |
Net gains and losses on financial instruments at fair value and foreign exchange | 54 | 21 |
Other | 4 | |
Total gross deferred tax assets | 1,108 | 991 |
Valuation allowance | 966 | 873 |
Net deferred tax asset | $ 0 | $ 0 |
Business Segments (Narrative) (
Business Segments (Narrative) (Detail) | 12 Months Ended |
Dec. 31, 2020segments | |
Disclosure Business Segments Summary Of Companys Segment Results [Abstract] | |
Number of operating segments | 3 |
Business Segments (Summary Of C
Business Segments (Summary Of Company's Segment Results) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | $ 151 | $ 200 | $ 317 | ||
Net change in fair value of insured derivatives | 6 | 15 | (25) | |||
Net gains (losses) on financial instruments at fair value and foreign exchange | (38) | 52 | (17) | |||
Net investment losses related to other-than-temporary impairments | (67) | (5) | ||||
Net gains (losses) on extinguishment of debt | (1) | 3 | ||||
Other net realized gains (losses) | 0 | 4 | 0 | |||
Revenues of consolidated VIEs | 163 | 77 | (111) | |||
Inter-segment revenues | [2] | 0 | 0 | 0 | ||
Total revenues | 282 | 280 | 162 | |||
Losses and loss adjustment | 530 | 242 | 63 | |||
Operating | 97 | 103 | 91 | |||
Interest | 178 | 201 | 206 | |||
Expenses of consolidated VIEs | 55 | 91 | 98 | |||
Inter-segment expenses | [2] | 0 | 0 | 0 | ||
Total expenses | 860 | 637 | 458 | |||
Income (loss) before income taxes | (578) | (357) | (296) | |||
Identifiable assets | 5,751 | 7,284 | ||||
Operating Segments [Member] | U S Public Finance Insurance [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | 102 | 139 | 178 | ||
Net change in fair value of insured derivatives | 0 | 0 | 0 | |||
Net gains (losses) on financial instruments at fair value and foreign exchange | 39 | 139 | (20) | |||
Net investment losses related to other-than-temporary impairments | (67) | (5) | ||||
Net gains (losses) on extinguishment of debt | 0 | 0 | ||||
Other net realized gains (losses) | (1) | 2 | 0 | |||
Revenues of consolidated VIEs | 0 | 21 | 0 | |||
Inter-segment revenues | [2] | 28 | 28 | 29 | ||
Total revenues | 168 | 262 | 182 | |||
Losses and loss adjustment | 163 | 53 | 91 | |||
Operating | 14 | 13 | 18 | |||
Interest | 0 | 0 | 0 | |||
Expenses of consolidated VIEs | 0 | 0 | 0 | |||
Inter-segment expenses | [2] | 45 | 52 | 44 | ||
Total expenses | 222 | 118 | 153 | |||
Income (loss) before income taxes | (54) | 144 | 29 | |||
Identifiable assets | 3,644 | 4,019 | ||||
Operating Segments [Member] | Corporate Operations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | 20 | 27 | 31 | ||
Net change in fair value of insured derivatives | 0 | 0 | 0 | |||
Net gains (losses) on financial instruments at fair value and foreign exchange | (63) | (54) | 22 | |||
Net investment losses related to other-than-temporary impairments | 0 | 0 | ||||
Net gains (losses) on extinguishment of debt | (1) | 3 | ||||
Other net realized gains (losses) | 0 | (2) | (2) | |||
Revenues of consolidated VIEs | 0 | 1 | 0 | |||
Inter-segment revenues | [2] | 66 | 62 | 45 | ||
Total revenues | 23 | 33 | 99 | |||
Losses and loss adjustment | 0 | 0 | 0 | |||
Operating | 69 | 69 | 47 | |||
Interest | 65 | 73 | 78 | |||
Expenses of consolidated VIEs | 0 | 0 | 0 | |||
Inter-segment expenses | [2] | 22 | 23 | 20 | ||
Total expenses | 156 | 165 | 145 | |||
Income (loss) before income taxes | (133) | (132) | (46) | |||
Identifiable assets | 954 | 1,041 | ||||
Operating Segments [Member] | International And Structured Finance Insurance [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | 29 | 34 | 108 | ||
Net change in fair value of insured derivatives | 6 | 15 | (25) | |||
Net gains (losses) on financial instruments at fair value and foreign exchange | (14) | (33) | (19) | |||
Net investment losses related to other-than-temporary impairments | 0 | 0 | ||||
Net gains (losses) on extinguishment of debt | 0 | 0 | ||||
Other net realized gains (losses) | 1 | 4 | 2 | |||
Revenues of consolidated VIEs | 163 | 55 | (111) | |||
Inter-segment revenues | [2] | 12 | 21 | 24 | ||
Total revenues | 197 | 96 | (21) | |||
Losses and loss adjustment | 367 | 189 | (28) | |||
Operating | 14 | 21 | 26 | |||
Interest | 113 | 128 | 128 | |||
Expenses of consolidated VIEs | 55 | 91 | 98 | |||
Inter-segment expenses | [2] | 39 | 36 | 33 | ||
Total expenses | 588 | 465 | 257 | |||
Income (loss) before income taxes | (391) | (369) | (278) | |||
Identifiable assets | 3,671 | 4,504 | ||||
Intersegment Elimination [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | 0 | 0 | 0 | ||
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 | |||
Net investment losses related to other-than-temporary impairments | 0 | 0 | ||||
Net gains (losses) on extinguishment of debt | 0 | 0 | ||||
Other net realized gains (losses) | 0 | 0 | 0 | |||
Revenues of consolidated VIEs | 0 | 0 | 0 | |||
Inter-segment revenues | [2] | (106) | (111) | (98) | ||
Total revenues | (106) | (111) | (98) | |||
Losses and loss adjustment | 0 | 0 | 0 | |||
Operating | 0 | 0 | 0 | |||
Interest | 0 | 0 | 0 | |||
Expenses of consolidated VIEs | 0 | 0 | 0 | |||
Inter-segment expenses | [2] | (106) | (111) | (97) | ||
Total expenses | (106) | (111) | (97) | |||
Income (loss) before income taxes | 0 | 0 | $ (1) | |||
Identifiable assets | $ (2,518) | [3] | $ (2,280) | [4] | ||
[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 principally of intercompany reinsurance balances. | |||||
[4] | Consists primarily of intercompany reinsurance balances and repurchase agreements. |
Business Segments (Summary Of P
Business Segments (Summary Of Premiums Earned On Financial Guarantees And Insured Derivatives By Geographic Location Of Risk) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total premiums earned | $ 73 | $ 85 | $ 162 |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Total premiums earned | 55 | 63 | 94 |
Other Americas [Member] | |||
Segment Reporting Information [Line Items] | |||
Total premiums earned | 16 | 17 | 68 |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Total premiums earned | $ 2 | $ 5 | $ 0 |
Insurance in Force (Narrative)
Insurance in Force (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Guarantor Obligations [Line Items] | ||
Transactions guaranteed by MBIA on behalf of affiliated companies | $ 1,700 | |
Aggregate amount of insurance in force ceded to reinsurers | 3,000 | $ 3,500 |
Aggregate amount of insured par outstanding ceded to reinsurers | 1,480 | $ 1,800 |
U S Public Finance Insurance [Member] | ||
Guarantor Obligations [Line Items] | ||
Aggregate amount of insured par outstanding ceded to reinsurers | 1,100 | |
Structured Finance And International Insurance [Member] | ||
Guarantor Obligations [Line Items] | ||
Aggregate amount of insured par outstanding ceded to reinsurers | $ 413 | |
Financial Guaranty Insurance Company [Member] | ||
Guarantor Obligations [Line Items] | ||
Financial guaranty maturity year | 2058 | |
Investment agreements, MTNs and other affiliated contracts [Member] | ||
Guarantor Obligations [Line Items] | ||
Financial guaranty maturity year | 2037 |
Insurance in Force (Schedule Of
Insurance in Force (Schedule Of Geographical Distribution Of Insurance In Force) (Detail) - USD ($) $ in Billions | Dec. 31, 2020 | Dec. 31, 2019 |
Insurance in Force | $ 91.4 | $ 107.5 |
% of Insurance in Force | 100.00% | 100.00% |
California [Member] | ||
Insurance in Force | $ 20 | $ 22.4 |
% of Insurance in Force | 21.90% | 20.90% |
Illinois [Member] | ||
Insurance in Force | $ 8.9 | $ 10.2 |
% of Insurance in Force | 9.70% | 9.50% |
New York [Member] | ||
Insurance in Force | $ 3 | $ 4.7 |
% of Insurance in Force | 3.30% | 4.40% |
Puerto Rico [Member] | ||
Insurance in Force | $ 2.9 | $ 3.3 |
% of Insurance in Force | 3.20% | 3.10% |
New Jersey [Member] | ||
Insurance in Force | $ 5.4 | $ 6 |
% of Insurance in Force | 5.90% | 5.60% |
Texas [Member] | ||
Insurance in Force | $ 3.7 | $ 4 |
% of Insurance in Force | 4.00% | 3.70% |
Hawaii [Member] | ||
Insurance in Force | $ 4.1 | $ 4.2 |
% of Insurance in Force | 4.40% | 3.90% |
Virginia [Member] | ||
Insurance in Force | $ 3.2 | $ 3.6 |
% of Insurance in Force | 3.60% | 3.30% |
Oregon [Member] | ||
Insurance in Force | $ 2.7 | $ 2.9 |
% of Insurance in Force | 2.90% | 2.70% |
Sub-Total Insurance In Force [Member] | ||
Insurance in Force | $ 56 | $ 64.1 |
% of Insurance in Force | 61.20% | 59.70% |
Nationally Diversified [Member] | ||
Insurance in Force | $ 8.7 | $ 11.8 |
% of Insurance in Force | 9.50% | 11.00% |
Other States [Member] | ||
Insurance in Force | $ 19.8 | $ 23.5 |
% of Insurance in Force | 21.70% | 21.80% |
United States [Member] | ||
Insurance in Force | $ 84.5 | $ 99.4 |
% of Insurance in Force | 92.40% | 92.50% |
Internationally Diversified [Member] | ||
Insurance in Force | $ 0.3 | $ 0.3 |
% of Insurance in Force | 0.30% | 0.30% |
Country Specific [Member] | ||
Insurance in Force | $ 6.6 | $ 7.8 |
% of Insurance in Force | 7.30% | 7.20% |
Non United States [Member] | ||
Insurance in Force | $ 6.9 | $ 8.1 |
% of Insurance in Force | 7.60% | 7.50% |
COLORADO | ||
Insurance in Force | $ 2.1 | $ 2.8 |
% of Insurance in Force | 2.30% | 2.60% |
Insurance In Force (Schedule _2
Insurance In Force (Schedule Of Insurance In Force By Type Of Bond, Excluding Transactions Guaranteed By MBIA Corp. On Behalf Of Various Investment Management Services And Other Affiliated Companies) (Detail) - USD ($) $ in Billions | Dec. 31, 2020 | Dec. 31, 2019 | |
Insurance in Force | $ 91.4 | $ 107.5 | |
Gross Par Amount | 49.6 | 58.9 | |
U S [Member] | |||
Insurance in Force | 84.5 | 99.4 | |
Non-United States [Member] | |||
Insurance in Force | 6.9 | 8.1 | |
Global Public Finance [Member] | |||
Insurance in Force | 87.4 | 100.7 | |
Gross Par Amount | 46.7 | 54.6 | |
Global Public Finance [Member] | U S [Member] | |||
Insurance in Force | 81.5 | 93.7 | |
Gross Par Amount | 41.9 | 48.9 | |
Global Public Finance [Member] | Non-United States [Member] | |||
Insurance in Force | 5.9 | 7 | |
Gross Par Amount | 4.8 | 5.7 | |
Global Structured Finance [Member] | |||
Insurance in Force | 4 | 6.8 | |
Gross Par Amount | 2.9 | 4.3 | |
General Obligation [Member] | Global Public Finance [Member] | U S [Member] | |||
Insurance in Force | [1] | 25 | 29.1 |
Gross Par Amount | [1] | 12.1 | 14.3 |
General Obligation - Lease [Member] | Global Public Finance [Member] | U S [Member] | |||
Insurance in Force | 2.4 | 3.1 | |
Gross Par Amount | 1.9 | 2.3 | |
Municipal Utilities [Member] | Global Public Finance [Member] | U S [Member] | |||
Insurance in Force | 10.6 | 12 | |
Gross Par Amount | 7.3 | 8.1 | |
Tax-Backed [Member] | Global Public Finance [Member] | U S [Member] | |||
Insurance in Force | 15.7 | 17.7 | |
Gross Par Amount | 7.9 | 9.2 | |
Transportation [Member] | Non-United States [Member] | |||
Insurance in Force | 2.1 | 2.7 | |
Gross Par Amount | 1.8 | 2.3 | |
Transportation [Member] | Global Public Finance [Member] | U S [Member] | |||
Insurance in Force | 9.2 | 10.6 | |
Gross Par Amount | 3 | 3.9 | |
Higher Education [Member] | Global Public Finance [Member] | U S [Member] | |||
Insurance in Force | 1.5 | 2.2 | |
Gross Par Amount | 1.1 | 1.5 | |
Health Care [Member] | Global Public Finance [Member] | U S [Member] | |||
Insurance in Force | 1.2 | 1.4 | |
Gross Par Amount | 0.8 | 1 | |
Military Housing [Member] | Global Public Finance [Member] | U S [Member] | |||
Insurance in Force | 14.8 | 15.2 | |
Gross Par Amount | 7 | 7.1 | |
Investor-Owned Utilities [Member] | Global Public Finance [Member] | U S [Member] | |||
Insurance in Force | [2] | 0.9 | 1.4 |
Gross Par Amount | [2] | 0.6 | 0.9 |
Municipal Housing [Member] | Global Public Finance [Member] | U S [Member] | |||
Insurance in Force | 0.1 | 0.2 | |
Gross Par Amount | 0.1 | 0.1 | |
Other Public Finance [Member] | Non-United States [Member] | |||
Insurance in Force | [3] | 0.1 | 0.2 |
Gross Par Amount | [3] | 0.1 | 0.1 |
Other Public Finance [Member] | Global Public Finance [Member] | U S [Member] | |||
Insurance in Force | [4] | 0.1 | 0.8 |
Gross Par Amount | [4] | 0.1 | 0.5 |
International Utilities [Member] | Non-United States [Member] | |||
Insurance in Force | 0.9 | 1.1 | |
Gross Par Amount | 0.8 | 1 | |
Sovereign Related And Sub-Sovereign [Member] | Non-United States [Member] | |||
Insurance in Force | 2.8 | 3 | |
Gross Par Amount | 2.1 | 2.3 | |
Collateralized Debt Obligations [Member] | Global Structured Finance [Member] | |||
Insurance in Force | 0.4 | 0.4 | |
Gross Par Amount | 0.3 | 0.3 | |
Residential Mortgage Backed Securities [Member] | Global Structured Finance [Member] | |||
Insurance in Force | 2 | 2.5 | |
Gross Par Amount | 1.5 | 1.8 | |
Commercial Mortgage Backed Securities [Member] | Global Structured Finance [Member] | |||
Insurance in Force | 0.5 | 0.5 | |
Gross Par Amount | 0.2 | 0.2 | |
Consumer Asset Backed [Member] | Global Structured Finance [Member] | |||
Insurance in Force | 0.3 | 0.4 | |
Gross Par Amount | 0.3 | 0.3 | |
Corporate Asset Backed [Member] | Global Structured Finance [Member] | |||
Insurance in Force | [5] | 0.8 | 3 |
Gross Par Amount | [5] | $ 0.6 | $ 1.7 |
[1] | Includes general obligation unlimited and limited (property) tax bonds, general fund obligation bonds and pension obligation bonds of states, cities, counties, schools and special districts. | ||
[2] | Includes investor owned utilities, industrial development and pollution control revenue bonds. | ||
[3] | Includes municipal owned entities backed by sponsoring local government and tax backed transactions. | ||
[4] | Includes certain non-profit enterprises, stadium related financing. | ||
[5] | As of December 31, 2020, all remaining insurance in force and gross par relating to structured insurance securitizations was terminated. As of December 31, 2019, includes structured insurance securitizations of $2.1 billion and $1.0 billion of insurance in force and gross par amount, respectively. |
Insurance In Force (Schedule _3
Insurance In Force (Schedule Of Insurance In Force By Type Of Bond, Excluding Transactions Guaranteed By MBIA Corp. On Behalf Of Various Investment Management Services And Other Affiliated Companies) (Parenthetical) (Detail) - USD ($) $ in Billions | Dec. 31, 2020 | Dec. 31, 2019 |
Insurance in Force | $ 91.4 | $ 107.5 |
Gross Par Amount | $ 49.6 | 58.9 |
Corporate Asset Backed [Member] | Structured Insurance Securitizations [Member] | ||
Insurance in Force | 2.1 | |
Gross Par Amount | $ 1 |
Insurance In Force (Summary Of
Insurance In Force (Summary Of Company's Reinsurance Agreements For U.S. Public Finance And Structured Finance And International Insurance Operations) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Ceded Par Outstanding | $ 1,480 | $ 1,800 | |
Letters of Credit/Trust Accounts | 21 | ||
Reinsurance Recoverable/ (Payable) | [1] | (38) | |
Assured Guaranty Corp [Member] | |||
Ceded Par Outstanding | 620 | ||
Letters of Credit/Trust Accounts | 0 | ||
Reinsurance Recoverable/ (Payable) | [1] | (37) | |
Assured Guaranty Re Ltd [Member] | |||
Ceded Par Outstanding | [2] | 584 | |
Letters of Credit/Trust Accounts | [2] | 21 | |
Reinsurance Recoverable/ (Payable) | [1],[2] | 0 | |
Overseas Private Investment Corporation [Member] | |||
Ceded Par Outstanding | 221 | ||
Letters of Credit/Trust Accounts | 0 | ||
Reinsurance Recoverable/ (Payable) | [1] | 0 | |
Others [Member] | |||
Ceded Par Outstanding | [2] | 55 | |
Letters of Credit/Trust Accounts | [2] | 0 | |
Reinsurance Recoverable/ (Payable) | [1],[2] | $ (1) | |
[1] | Total reinsurance recoverable/(payable) is primarily related to recoverables on unpaid losses net of (payables) on salvage received. | ||
[2] | Represents a withdrawal of ratings. |
Insurance Regulations And Div_2
Insurance Regulations And Dividends (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Insurance Regulations And Dividends [Line Items] | ||
Percentage of policyholders' surplus | 10.00% | |
Percentage of adjusted net investment income | 100.00% | |
Policyholders Surplus [Member] | Minimum [Member] | ||
Insurance Regulations And Dividends [Line Items] | ||
Policyholders' surplus | $ 65 | |
MBIA Corp [Member] | ||
Insurance Regulations And Dividends [Line Items] | ||
Unassigned surplus | $ 1,900 | $ 1,900 |
Percentage of loss reserves and unearned premium reserve required to be invested in qualifying assets | 50.00% | |
Statutory net loss | $ 202 | 141 |
Statutory capital | 273 | 476 |
Policyholders' surplus | 106 | |
Contingency reserves | 167 | |
National [Member] | ||
Insurance Regulations And Dividends [Line Items] | ||
Dividends from subsidiaries | 81 | 134 |
Statutory net loss | 82 | |
Statutory capital | 2,000 | 2,400 |
Policyholders' surplus | 1,500 | |
Contingency reserves | $ 445 | |
Statutory net income | $ 39 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pension and 401k expense | $ 4 | $ 4 | $ 3 |
Defined contribution pension [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contribution percentage of eligible employees compensation | 10.00% | ||
Vested after two years | 20.00% | ||
Vested after three years | 60.00% | ||
Vested after four years | 80.00% | ||
Vested after five years | 100.00% | ||
Qualified profit-sharing/401(k) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contribution percentage of eligible employees compensation | 25.00% | ||
Vested after two years | 20.00% | ||
Vested after three years | 60.00% | ||
Vested after four years | 80.00% | ||
Vested after five years | 100.00% | ||
Contributions percentage of employer match | 5.00% | ||
Maximum [Member] | Defined contribution pension [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum annual compensation subject to pension | $ 2 | ||
Omnibus Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shareholder approved increase in common stock reserved and available for issuance | 16,500,000 | ||
Shares issued under Omnibus Plan in connection with stock options, count | 1 | ||
Shares/units available for future grants | 3,338,822 | ||
Omnibus Plan [Member] | After May 1, 2012 Amendment [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued under Omnibus Plan in connection with other than stock options, count | 1.28 | ||
Omnibus Plan [Member] | Prior To May 1, 2012 Amendment [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued under Omnibus Plan in connection with other than stock options, count | 2 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock issued during period, value, restricted stock award, gross | $ 7 | 8 | |
Share-based compensation expense (benefit) | 11 | 12 | 6 |
Tax charge related to share-based compensation | 0 | $ 0 | $ 0 |
Unrecognized compensation cost | $ 26 | ||
Expected to be recognized as expense over a weighted average period, years | 2 years 5 months 12 days | ||
Restricted Stock [Member] | Stock Price Targets [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted | 502,738 | 221,213 | 247,286 |
Restricted Stock [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long-term incentive awards vesting period, years | 3 years | ||
Restricted Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long-term incentive awards vesting period, years | 7 years |
Benefit Plans (Restricted Share
Benefit Plans (Restricted Shares Outstanding) (Detail) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at beginning of year | 5,146,828 | 5,044,616 | 2,392,978 |
Granted | 1,003,720 | 711,176 | 3,668,801 |
Vested | (448,455) | (416,676) | (267,163) |
Forfeited | (247,286) | (192,288) | (750,000) |
Outstanding at end of year | 5,454,807 | 5,146,828 | 5,044,616 |
Outstanding at beginning of year, Weighted Average Price per Share | $ 10.0958 | $ 9.7986 | $ 9.6142 |
Granted, Weighted Average Price per Share | 6.8150 | 11.4185 | 9.9711 |
Vested, Weighted Average Price per Share | 8.9834 | 9.0332 | 10.0705 |
Forfeited, Weighted Average Price per Share | 11.1800 | 9.4917 | 9.9576 |
Outstanding at end of year, Weighted Average Price per Share | $ 9.5344 | $ 10.0958 | $ 9.7986 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Shares [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 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 | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Basic earnings per share: | ||||
Net income (loss) available to common shareholders | $ (578) | $ (359) | $ (296) | |
Basic weighted average shares | [1] | 59,071,843 | 81,014,285 | 89,013,711 |
Net income (loss) per basic common share | $ (9.78) | $ (4.43) | $ (3.33) | |
Diluted earnings per share: | ||||
Net income (loss) available to common shareholders | $ (578) | $ (359) | $ (296) | |
Diluted weighted average shares | 59,071,843 | 81,014,285 | 89,013,711 | |
Net income (loss) per diluted common share | $ (9.78) | $ (4.43) | $ (3.33) | |
Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect | 4,600,000 | 4,300,000 | 4,400,000 | |
[1] | Includes 0.9 million, 1.0 million and 0.8 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the years ended December 31, 2020, 2019 and 2018, respectively. |
Common and Preferred Stock (Nar
Common and Preferred Stock (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||
Shares repurchased under share repurchase program, average price per share | $ 7.50 | $ 9.12 | $ 8.21 |
Preferred stock shares issued | 0 | 0 | |
Preferred stock shares outstanding | 0 | 0 | |
Preferred stock par or stated value per share | $ 1 | $ 1 | |
MBIA Insurance Corporation [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock par or stated value per share | 1,000 | ||
Preferred stock liquidation preference | 100,000 | ||
Preferred Stock [Member] | MBIA Insurance Corporation [Member] | |||
Class of Stock [Line Items] | |||
Shares repurchased under share repurchase program, average price per share | $ 10,900 | ||
Preferred stock shares issued | 2,759 | ||
Preferred stock repurchased during period shares | 1,444 | ||
Preferred stock, carrying value issued and outstanding | $ 28 | ||
Face value of repurchased preferred stock | 10.90% | ||
Dividend rate on preferred stock determined rate | LIBOR plus 200 basis points | ||
Unaffiliated Investors [Member] | MBIA Insurance Corporation [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock shares outstanding | 1,315 |
Common and Preferred Stock (Sch
Common and Preferred Stock (Schedule of Share Repurchases) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Share Repurchases [Abstract] | |||
Number of shares purchased or repurchased | 26,400,000 | 11,100,000 | 5,800,000 |
Average price paid per share | $ 7.50 | $ 9.12 | $ 8.21 |
Remaining authorization as of December 31 | $ 0 | $ 101 | $ 202 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Changes In The Components Of AOCI) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Beginning balance | $ (2) | $ (156) | $ (19) |
Other comprehensive income (loss) before reclassifications | 130 | 114 | |
Amounts reclassified from AOCI | (13) | 40 | |
Total other comprehensive income (loss) | 117 | 154 | 30 |
Ending balance | 115 | (2) | (156) |
Unrealized gains (losses) on AFS, net [Member] | |||
Beginning balance | 112 | (39) | (10) |
Other comprehensive income (loss) before reclassifications | 83 | 139 | |
Amounts reclassified from AOCI | (19) | 12 | |
Total other comprehensive income (loss) | 64 | 151 | (24) |
Ending balance | 176 | 112 | (39) |
Unrealized gains (losses) on AFS, net [Member] | ASU 2016-01 | |||
ASU transition adjustment | (2) | ||
Unrealized gains (losses) on AFS, net [Member] | ASU 2018-02 | |||
ASU transition adjustment | (3) | ||
Foreign currency translation, net [Member] | |||
Beginning balance | (7) | (7) | (9) |
Other comprehensive income (loss) before reclassifications | (3) | 0 | |
Amounts reclassified from AOCI | 0 | 0 | |
Total other comprehensive income (loss) | (3) | 0 | 2 |
Ending balance | (10) | (7) | (7) |
Foreign currency translation, net [Member] | ASU 2016-01 | |||
ASU transition adjustment | 0 | ||
Foreign currency translation, net [Member] | ASU 2018-02 | |||
ASU transition adjustment | 0 | ||
Instrument-specific credit risk of liabilities measured at fair value, net [Member] | |||
Beginning balance | (107) | (110) | 0 |
Other comprehensive income (loss) before reclassifications | 50 | (25) | |
Amounts reclassified from AOCI | 6 | 28 | |
Total other comprehensive income (loss) | 56 | 3 | 52 |
Ending balance | (51) | (107) | (110) |
Instrument-specific credit risk of liabilities measured at fair value, net [Member] | ASU 2016-01 | |||
ASU transition adjustment | (162) | ||
Instrument-specific credit risk of liabilities measured at fair value, net [Member] | ASU 2018-02 | |||
ASU transition adjustment | 0 | ||
AOCI Attributable to Parent [Member] | |||
Total other comprehensive income (loss) | 117 | 154 | 30 |
AOCI Attributable to Parent [Member] | ASU 2016-01 | |||
ASU transition adjustment | 0 | 0 | (164) |
AOCI Attributable to Parent [Member] | ASU 2018-02 | |||
ASU transition adjustment | $ 0 | $ 0 | $ (3) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Details Of The Reclassification From AOCI) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net gains (losses) on financial instruments at fair value and foreign exchange | $ (38) | $ 52 | $ (17) |
Income (loss) before income taxes | (578) | (357) | (296) |
Net income (loss) | (578) | (359) | (296) |
Amounts reclassified from AOCI [Member] | |||
Net income (loss) | 13 | (40) | 0 |
Unrealized gains (losses) on AFS, net [Member] | |||
Net income (loss) | 19 | (12) | 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 | 19 | 14 | 6 |
Net investment losses related to OTTI | 0 | (25) | (5) |
Net investment income | 0 | (1) | (1) |
Income (loss) before income taxes | 19 | (12) | 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 | $ (6) | $ (28) | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Detail) $ in Millions | Feb. 10, 2021USD ($) | Jan. 31, 2021USD ($) | Jan. 31, 2021USD ($) | Dec. 31, 2020USD ($)Lawsuits |
Commitments And Contingencies [Line Items] | ||||
Other material lawsuits pending | Lawsuits | 0 | |||
Subsequent Event [Member] | Credit Suisse [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Damages Sought Value | $ 604 | $ 604 | ||
Damages Paid Value | $ 600 | |||
Fuel Line Lenders [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
PREPA working capital | $ 700 |
Commitments and Contingencies_3
Commitments and Contingencies (Lease Disclosures) (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Operating lease liability | us-gaap:OperatingLeaseLiability |
Operating lease weighted average remaining lease term | 8 years 3 months 18 days |
Operating lease weighted average discount rate percent | 7.50% |
Operating leases future minimum payments due | $ 29 |
Other Assets [Member] | |
Operating lease right of use asset | 20 |
Other Liabilities [Member] | |
Operating lease liability | $ 20 |
Schedule I- Investments (Detail
Schedule I- Investments (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | $ 2,549 |
Fair Value | 2,736 |
Amount at which shown in the balance sheet | 2,736 |
Assets Of Consolidated VIEs [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 220 |
Fair Value | 197 |
Amount at which shown in the balance sheet | 197 |
Loans Receivable [Member] | Assets Of Consolidated VIEs [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 124 |
Fair Value | 120 |
Amount at which shown in the balance sheet | 120 |
Long-Term Available-For-Sale [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 2,080 |
Fair Value | 2,258 |
Amount at which shown in the balance sheet | 2,258 |
Long-Term Available-For-Sale [Member] | U.S. Treasury And Government Agency [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 556 |
Fair Value | 631 |
Amount at which shown in the balance sheet | 631 |
Long-Term Available-For-Sale [Member] | US States And Political Subdivisions [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 162 |
Fair Value | 194 |
Amount at which shown in the balance sheet | 194 |
Long-Term Available-For-Sale [Member] | Foreign Governments [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 9 |
Fair Value | 10 |
Amount at which shown in the balance sheet | 10 |
Long-Term Available-For-Sale [Member] | Corporate Obligations [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 767 |
Fair Value | 830 |
Amount at which shown in the balance sheet | 830 |
Short-Term Available-For-Sale [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 280 |
Fair Value | 281 |
Amount at which shown in the balance sheet | 281 |
AFS Investments [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 2,360 |
Fair Value | 2,539 |
Amount at which shown in the balance sheet | 2,539 |
Investments At Fair Value [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 189 |
Fair Value | 197 |
Amount at which shown in the balance sheet | 197 |
Investments At Fair Value [Member] | Assets Of Consolidated VIEs [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 96 |
Fair Value | 77 |
Amount at which shown in the balance sheet | 77 |
Mortgage-backed [Member] | Long-Term Available-For-Sale [Member] | Residential Mortgage Backed Agency [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 305 |
Fair Value | 312 |
Amount at which shown in the balance sheet | 312 |
Mortgage-backed [Member] | Long-Term Available-For-Sale [Member] | Residential Mortgage-Backed Non-Agency [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 23 |
Fair Value | 25 |
Amount at which shown in the balance sheet | 25 |
Mortgage-backed [Member] | Long-Term Available-For-Sale [Member] | Commercial Mortgage-Backed [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 17 |
Fair Value | 17 |
Amount at which shown in the balance sheet | 17 |
Asset-backed [Member] | Long-Term Available-For-Sale [Member] | Collateralized Debt Obligations [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 120 |
Fair Value | 118 |
Amount at which shown in the balance sheet | 118 |
Asset-backed [Member] | Long-Term Available-For-Sale [Member] | Other Asset-Backed [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 121 |
Fair Value | 121 |
Amount at which shown in the balance sheet | $ 121 |
Schedule II (Condensed Balance
Schedule II (Condensed Balance Sheets) (Detail) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 167 | $ 83 | $ 280 | $ 146 |
Total assets | 5,751 | 7,284 | ||
Liabilities: | ||||
Total liabilities | 5,602 | 6,445 | ||
Equity: | ||||
Preferred stock, par value $1 per share; authorized shares—10,000,000; issued and outstanding—none | 0 | 0 | ||
Common stock, par value $1 per share; authorized shares—400,000,000; issued shares—283,186,115 and 283,433,401 | 283 | 283 | ||
Additional paid-in capital | 2,962 | 2,999 | ||
Retained earnings (deficit) | (13) | 607 | ||
Accumulated other comprehensive income (loss), net of tax | 115 | (2) | (156) | (19) |
Treasury stock, at cost—229,508,967 and 204,000,108 shares | (3,211) | (3,061) | ||
Total shareholders' equity of MBIA Inc. | 136 | 826 | ||
Total liabilities and equity | $ 5,751 | $ 7,284 | ||
Preferred stock, par value | $ 1 | $ 1 | ||
Preferred stock, authorized shares | 10,000,000 | 10,000,000 | ||
Preferred stock, issued | 0 | 0 | ||
Preferred stock, outstanding | 0 | 0 | ||
Common stock, par value | $ 1 | $ 1 | ||
Common stock, authorized shares | 400,000,000 | 400,000,000 | ||
Common stock, issued shares | 283,186,115 | 283,433,401 | ||
Treasury stock, shares | 229,508,967 | 204,000,108 | ||
Parent Company [Member] | ||||
Assets [Abstract] | ||||
Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $621 and $610) | $ 719 | $ 674 | ||
Investments carried at fair value | 1 | 1 | ||
Investments pledged as collateral, at fair value (amortized cost $10 and $19) | 1 | 11 | ||
Short-term investments held as available-for-sale, at fair value (amortized cost $31 and $167) | 31 | 167 | ||
Total investments | 752 | 853 | ||
Cash and cash equivalents | 26 | 11 | $ 40 | $ 10 |
Investment in wholly-owned subsidiaries | 728 | 1,456 | ||
Other assets | 139 | 123 | ||
Total assets | 1,645 | 2,443 | ||
Liabilities: | ||||
Investment agreements | 269 | 274 | ||
Long-term debt | 312 | 427 | ||
Affiliate loans payable | 695 | 658 | ||
Income taxes payable | 12 | 60 | ||
Derivative liabilities | 164 | 133 | ||
Other liabilities | 57 | 65 | ||
Total liabilities | 1,509 | 1,617 | ||
Equity: | ||||
Preferred stock, par value $1 per share; authorized shares—10,000,000; issued and outstanding—none | 0 | 0 | ||
Common stock, par value $1 per share; authorized shares—400,000,000; issued shares—283,186,115 and 283,433,401 | 283 | 283 | ||
Additional paid-in capital | 2,962 | 2,999 | ||
Retained earnings (deficit) | (13) | 607 | ||
Accumulated other comprehensive income (loss), net of tax | 115 | (2) | ||
Treasury stock, at cost—229,508,967 and 204,000,108 shares | (3,211) | (3,061) | ||
Total shareholders' equity of MBIA Inc. | 136 | 826 | ||
Total liabilities and equity | 1,645 | 2,443 | ||
Fixed-maturity securities held as available-for-sale, amortized cost | 621 | 610 | ||
Investments pledged as collateral, amortized cost | 10 | 19 | ||
Short-term investments, amortized cost | $ 31 | $ 167 | ||
Preferred stock, par value | $ 1 | $ 1 | ||
Preferred stock, authorized shares | 10,000,000 | 10,000,000 | ||
Preferred stock, issued | 0 | 0 | ||
Preferred stock, outstanding | 0 | 0 | ||
Common stock, par value | $ 1 | $ 1 | ||
Common stock, authorized shares | 400,000,000 | 400,000,000 | ||
Common stock, issued shares | 283,186,115 | 283,433,401 | ||
Treasury stock, shares | 229,508,967 | 204,000,108 |
Schedule II (Condensed Statemen
Schedule II (Condensed Statements Of Operations) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Income Statements, Captions [Line Items] | |||
Net gains (losses) on financial instruments at fair value and foreign exchange | $ (38) | $ 52 | $ (17) |
Investment losses related to other-than-temporary impairments: | |||
Net gains (losses) on extinguishment of debt | (1) | 3 | |
Other net realized gains (losses) | 0 | 4 | 0 |
Total revenues | 282 | 280 | 162 |
Interest | 178 | 201 | 206 |
Provision (benefit) for income taxes | 0 | 2 | 0 |
Net income (loss) | (578) | (359) | (296) |
Parent Company [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Net investment income | 28 | 35 | 35 |
Net gains (losses) on financial instruments at fair value and foreign exchange | (67) | (57) | 20 |
Investment losses related to other-than-temporary impairments: | |||
Net gains (losses) on extinguishment of debt | 0 | (1) | 3 |
Other net realized gains (losses) | 0 | (2) | (2) |
Total revenues | (39) | (25) | 56 |
Operating | 10 | 10 | 11 |
Interest | 83 | 90 | 93 |
Total expenses | 93 | 100 | 104 |
Gain (loss) before income taxes and equity in earnings of subsidiaries | (132) | (125) | (48) |
Provision (benefit) for income taxes | (4) | (99) | (35) |
Gain (loss) before equity in earnings of subsidiaries | (128) | (26) | (13) |
Equity in net income (loss) of subsidiaries | (450) | (333) | (283) |
Net income (loss) | $ (578) | $ (359) | $ (296) |
Schedule II - Condensed Stateme
Schedule II - Condensed Statements Of Cash Flows (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Investment income received | $ 118 | $ 176 | $ 205 |
Interest paid, net of interest converted to principal | (84) | (180) | (146) |
Income taxes (paid) received | 13 | 11 | (1) |
Net cash provided (used) by operating activities | (390) | (368) | (319) |
Cash flows from investing activities: | |||
Purchases of available-for-sale investments | (1,133) | (2,140) | (2,265) |
Sales of available-for-sale investments | 1,095 | 2,195 | 2,117 |
Paydowns and maturities of available-for-sale investments | 724 | 857 | 329 |
Purchases of investments at fair value | (179) | (151) | (189) |
Sales, paydowns and maturities of investments at fair value | 198 | 617 | 212 |
Sales, paydowns and maturities (purchases) of short-term investments, net | 143 | (157) | 420 |
(Payments) proceeds for derivative settlements | (16) | (98) | (24) |
Net cash provided (used) by investing activities | 1,738 | 1,267 | 1,206 |
Cash flows from financing activities: | |||
Proceeds from investment agreements | 12 | 15 | 12 |
Principal paydowns of investment agreements | (48) | (25) | (37) |
Net cash provided (used) by financing activities | (1,265) | (1,096) | (752) |
Effect of exchange rate changes on cash and cash equivalents | 1 | 0 | (1) |
Net increase (decrease) in cash and cash equivalents | 84 | (197) | 134 |
Cash and cash equivalents—beginning of year | 83 | 280 | 146 |
Cash and cash equivalents—end of year | 167 | 83 | 280 |
Reconciliation of net income (loss) to net cash provided (used) by operating activities: [Abstract] | |||
Net income (loss) | (578) | (359) | (296) |
Change in: [Abstract] | |||
Net (gains) losses on financial instruments at fair value and foreign exchange | (70) | (157) | (8) |
Deferred income tax provision (benefit) | 12 | 13 | 0 |
Other operating | 47 | 30 | 10 |
Total adjustments to net income (loss) | 188 | (9) | (23) |
Net cash provided (used) by operating activities | (390) | (368) | (319) |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Investment income received | 101 | 156 | 132 |
Operating expenses paid | (47) | (17) | (17) |
Interest paid, net of interest converted to principal | (60) | (88) | (91) |
Income taxes (paid) received | 5 | 34 | (16) |
Net cash provided (used) by operating activities | (1) | 85 | 8 |
Cash flows from investing activities: | |||
Purchases of available-for-sale investments | (216) | (278) | (495) |
Sales of available-for-sale investments | 183 | 319 | 175 |
Paydowns and maturities of available-for-sale investments | 41 | 179 | 101 |
Purchases of investments at fair value | (2) | 5 | (9) |
Sales, paydowns and maturities of investments at fair value | 2 | 0 | 10 |
Sales, paydowns and maturities (purchases) of short-term investments, net | 137 | (61) | 262 |
(Payments) proceeds for derivative settlements | (16) | (98) | (24) |
Contributions (to) from subsidiaries, net | 0 | (14) | 51 |
Advances (to) from subsidiaries, net | 0 | 0 | 3 |
Net cash provided (used) by investing activities | 129 | 52 | 74 |
Cash flows from financing activities: | |||
Proceeds from investment agreements | 12 | 15 | 11 |
Principal paydowns of investment agreements | (18) | (20) | (35) |
Proceeds from long-term debt | 0 | 0 | 40 |
Principal paydowns of long-term debt | (115) | (150) | 0 |
Payments for affiliate loans | 0 | (19) | (71) |
Restricted stock awards settlements | 8 | 8 | 4 |
Net cash provided (used) by financing activities | (113) | (166) | (51) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | (1) |
Net increase (decrease) in cash and cash equivalents | 15 | (29) | 30 |
Cash and cash equivalents—beginning of year | 11 | 40 | 10 |
Cash and cash equivalents—end of year | 26 | 11 | 40 |
Reconciliation of net income (loss) to net cash provided (used) by operating activities: [Abstract] | |||
Net income (loss) | (578) | (359) | (296) |
Change in: [Abstract] | |||
Intercompany accounts receivable | (39) | (16) | (9) |
Current income taxes | 5 | 23 | (15) |
Equity in earnings of subsidiaries | 450 | 333 | 283 |
Dividends from subsidiaries | 81 | 134 | 112 |
Net (gains) losses on financial instruments at fair value and foreign exchange | 67 | 57 | (20) |
Deferred income tax provision (benefit) | (4) | (88) | (35) |
(Gains) losses on extinguishment of debt | 0 | 1 | (3) |
Other operating | 17 | 0 | (9) |
Total adjustments to net income (loss) | 577 | 444 | 304 |
Net cash provided (used) by operating activities | $ (1) | $ 85 | $ 8 |
Schedule II - (Notes to Condens
Schedule II - (Notes to Condensed Financial Statements) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Long-term debt principal amount purchased | $ 308 | ||
Fair value of securities pledged as collateral | 282 | $ 313 | |
Securities posted as collateral to derivative counterparties | $ 214 | 181 | |
MBIA Inc. Senior Notes [Member] | |||
Long-term debt, interest rate | 5.70% | ||
Long-term debt, maturity year | 2034 | ||
Mbia Inc. Debentures [Member] | |||
Long-term debt principal amount purchased | $ 13 | ||
Long-term debt, interest rate | 7.00% | ||
Long-term debt, maturity year | 2025 | ||
6.400% Senior Notes due 2022 [Member] | |||
Long-term debt principal amount purchased | $ 115 | 150 | |
Long-term debt principal amount purchased, par value | 100.00% | ||
Long-term debt, interest rate | 6.40% | ||
Long-term debt, maturity year | 2022 | ||
National Public Finance Guarantee Holdings, Inc. [Member] | |||
Dividends from subsidiaries | 1 | $ 108 | |
MBIA Inc. [Member] | |||
Liquid assets | $ 294 | ||
Fair value of securities pledged as collateral | 282 | 313 | |
Securities posted as collateral to derivative counterparties | 214 | 181 | |
National [Member] | |||
Dividends from subsidiaries | 81 | $ 134 | |
National [Member] | Mbia Inc. Debentures [Member] | |||
Long-term debt principal amount purchased | 10 | ||
MBIA Capital Corp. [Member] | |||
Dividends from subsidiaries | $ 3 |
Schedule IV - (Reinsurance) (De
Schedule IV - (Reinsurance) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |||
Direct Amount | $ 1 | $ 3 | $ 3 |
Ceded to Others | 1 | 0 | 1 |
Assumed From Other Companies | 0 | 0 | 0 |
Net Amount | $ 0 | $ 3 | $ 2 |
Percentage of Amount Assumed to Net | 0.00% | 0.00% | 0.00% |