Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 26, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000814585 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Trading Symbol | MBI | |
Entity Registrant Name | MBIA INC | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 54,892,618 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity File Number | 1-9583 | |
Entity Tax Identification Number | 06-1185706 | |
Entity Address, Address Line One | 1 Manhattanville Road, Suite 301 | |
Entity Address, City or Town | Purchase | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10577 | |
Entity Incorporation, State or Country Code | CT | |
City Area Code | 914 | |
Local Phone Number | 273-4545 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Investments: | ||
Assets held for sale | $ 132 | |
Total assets | 4,015 | $ 4,696 |
Liabilities: | ||
Liabilities held for sale | 59 | |
Total liabilities | 4,864 | 4,996 |
Commitments and contingencies (Refer to Note 13: Commitments and Contingencies) | ||
Equity: | ||
Preferred stock, par value $1 per share; authorized shares--10,000,000; issued and outstanding—none | 0 | 0 |
Common stock, par value $1 per share; authorized shares--400,000,000; issued shares--283,186,115 and 283,186,115 | 283 | 283 |
Additional paid-in capital | 2,921 | 2,931 |
Retained earnings (deficit) | (601) | (458) |
Accumulated other comprehensive income (loss), net of tax of $8 and $8 | (314) | 100 |
Treasury stock, at cost--228,285,906 and 228,630,003 shares | (3,152) | (3,169) |
Total shareholders' equity of MBIA Inc. | (863) | (313) |
Preferred stock of subsidiary and noncontrolling interest held for sale | 14 | 13 |
Total equity | (849) | (300) |
Total liabilities and equity | 4,015 | 4,696 |
Non Variable Interest Entity [Member] | ||
Investments: | ||
Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $2,077 and $2,016) | 1,814 | 2,157 |
Investments carried at fair value | 507 | 258 |
Investments pledged as collateral, at fair value (amortized cost $- and $4) | 0 | 4 |
Short-term investments, at fair value (amortized cost $751 and $374) | 751 | 374 |
Total investments | 3,072 | 2,793 |
Cash and cash equivalents | 102 | 151 |
Premiums receivable (net of allowance for credit losses $5 and $5) | 167 | 178 |
Deferred acquisition costs | 38 | 42 |
Insurance loss recoverable | 273 | 1,296 |
Assets held for sale | 132 | 0 |
Other assets | 78 | 67 |
Liabilities: | ||
Unearned premium revenue | 287 | 322 |
Loss and loss adjustment expense reserves | 1,047 | 894 |
Long-term debt | 2,393 | 2,331 |
Medium-term notes (includes financial instruments carried at fair value of $38 and $98) | 484 | 590 |
Investment agreements | 273 | 274 |
Derivative liabilities | 49 | 131 |
Liabilities held for sale | 59 | 0 |
Other liabilities | 92 | 163 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Investments: | ||
Investments carried at fair value | 49 | 60 |
Other assets | 16 | 23 |
Cash | 9 | 9 |
Loans receivable at fair value | 79 | 77 |
Liabilities: | ||
Variable interest entity notes and loans payable (includes financial instruments carried at fair value of $173 and $291) | 175 | 291 |
Derivative liabilities | $ 5 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, authorized shares | 400,000,000 | 400,000,000 |
Common stock, issued shares | 283,186,115 | 283,186,115 |
Accumulated other comprehensive income (loss), taxes | $ 8 | $ 8 |
Treasury stock, shares | 228,285,906 | 228,630,003 |
Non Variable Interest Entity [Member] | ||
Fixed-maturity securities held as available-for-sale, amortized cost | $ 2,077 | $ 2,016 |
Investments pledged as collateral, amortized cost | 0 | 4 |
Short-term investments, amortized cost | 751 | 374 |
Premiums receivable (net of allowance for credit losses) | 5 | 5 |
Medium-term notes, financial instruments carried at fair value | 38 | 98 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Debt instrument, fair value disclosure | $ 173 | $ 291 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Premiums earned: | |||||
Net realized investment gains (losses) | $ (37) | $ 1 | |||
Net gains (losses) on financial instruments at fair value and foreign exchange | $ 25 | $ 9 | 51 | 41 | |
Net gains (losses) on extinguishment of debt | 16 | 4 | 30 | ||
Total revenues | 17 | 72 | 97 | 162 | |
Expenses: | |||||
Losses and loss adjustment | (12) | 125 | 57 | 232 | |
Interest | 46 | 40 | 130 | 122 | |
Total expenses | 52 | 195 | 241 | 452 | |
Income (loss) from continuing operations before income taxes | (35) | (123) | (144) | (290) | |
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 | |
Income (loss) from continuing operations | (35) | (123) | (144) | (290) | |
Income (loss) from discontinued operations, net of income taxes | 1 | 0 | 1 | 0 | |
Net income (loss) | $ (34) | $ (123) | $ (143) | $ (290) | |
Net income (loss) per common share - basic and diluted | |||||
Continuing operations - basic | $ (0.68) | $ (2.49) | $ (2.88) | $ (5.87) | |
Continuing operations - diluted | (0.68) | (2.49) | (2.88) | (5.87) | |
Discontinuing operations - basic | 0.01 | 0 | 0.01 | 0 | |
Discontinuing operations - diluted | 0.01 | 0 | 0.01 | 0 | |
Net income (loss) per common share - basic | (0.67) | (2.49) | (2.87) | (5.87) | |
Net income (loss) per common share - diluted | $ (0.67) | $ (2.49) | $ (2.87) | $ (5.87) | |
Weighted average number of common shares outstanding: | |||||
Basic | [1] | 49,878,191 | 49,552,796 | 49,779,681 | 49,434,177 |
Diluted | 49,878,191 | 49,552,796 | 49,779,681 | 49,434,177 | |
Non Variable Interest Entity [Member] | |||||
Premiums earned: | |||||
Scheduled premiums earned | $ 10 | $ 26 | $ 31 | $ 53 | |
Refunding premiums earned | 1 | 3 | 6 | 10 | |
Premiums earned (net of ceded premiums of $- , $14, $1 and $16) | 11 | 29 | 37 | 63 | |
Net investment income | 24 | 16 | 67 | 45 | |
Net realized investment gains (losses) | (13) | 2 | (37) | 1 | |
Net gains (losses) on financial instruments at fair value and foreign exchange | 25 | 9 | 51 | 41 | |
Net gains (losses) on extinguishment of debt | 0 | 16 | 4 | 30 | |
Fees and reimbursements | 0 | 5 | 4 | 6 | |
Other net realized gains (losses) | 1 | 0 | (18) | 0 | |
Expenses: | |||||
Losses and loss adjustment | (12) | 125 | 57 | 232 | |
Amortization of deferred acquisition costs | 2 | 0 | 5 | 5 | |
Operating | 14 | 23 | 44 | 70 | |
Interest | 46 | 40 | 130 | 122 | |
Variable Interest Entity Primary Beneficiary [Member] | |||||
Premiums earned: | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | (36) | 4 | (16) | (10) | |
Other net realized gains (losses) | 5 | (9) | 5 | (14) | |
Expenses: | |||||
Operating | 2 | 2 | 5 | 5 | |
Interest | $ 0 | $ 5 | $ 0 | $ 18 | |
[1]Includes 0.8 million and 0.9 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for each of the three months and nine months ended September 30, 2022 and 2021, respectively. |
Consolidated Statements Of Op_2
Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Financial Guarantee Insurance Segment [Member] | ||||
Ceded premiums earned | $ 0 | $ 14 | $ 1 | $ 16 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statements of Comprehensive Income (Loss) | ||||
Net income (loss) | $ (34) | $ (123) | $ (143) | $ (290) |
Available-for-sale securities with no credit losses: | ||||
Unrealized gains (losses) arising during the period | (102) | (10) | (399) | (42) |
Reclassification adjustments for (gains) losses included in net income (loss) | (3) | (3) | (5) | (11) |
Available-for-sale securities with credit losses: | ||||
Unrealized gains (losses) arising during the period | 1 | 0 | 0 | 0 |
Foreign currency translation: | ||||
Foreign currency translation gains (losses) | 0 | 0 | 1 | 3 |
Instrument-specific credit risk of liabilities measured at fair value: | ||||
Unrealized gains (losses) arising during the period | (2) | (12) | (22) | (11) |
Reclassification adjustments for (gains) losses included in net income (loss) | 23 | 12 | 11 | 36 |
Net period other comprehensive income (loss) | (83) | (13) | (414) | (25) |
Total comprehensive income (loss) | $ (117) | $ (136) | $ (557) | $ (315) |
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] | Preferred Stock And Non Controlling Interest Held For Sale [Member] |
Total equity balance at Dec. 31, 2020 | $ 2,962 | $ (13) | $ 115 | $ (3,211) | $ 136 | $ 13 | |||
Balance (in treasury stock shares) at Dec. 31, 2020 | (229,508,967) | ||||||||
Net income (loss) | $ (290) | (290) | |||||||
Other comprehensive income (loss) | (25) | (25) | |||||||
Other | $ 35 | ||||||||
Others (in shares) | 728,928 | ||||||||
Period change | (26) | (306) | 0 | ||||||
Total equity balance at Sep. 30, 2021 | (157) | $ 283 | 2,936 | (303) | 90 | $ (3,176) | (170) | 13 | |
Balance (in common stock shares) at Sep. 30, 2021 | 283,186,115 | ||||||||
Balance (in treasury stock shares) at Sep. 30, 2021 | (228,780,039) | ||||||||
Balance (in preferred stock shares) at Sep. 30, 2021 | 1,315 | ||||||||
Total equity balance at Jun. 30, 2021 | 2,934 | (180) | 103 | $ (3,176) | (36) | 13 | |||
Balance (in treasury stock shares) at Jun. 30, 2021 | (228,780,540) | ||||||||
Net income (loss) | (123) | (123) | |||||||
Other comprehensive income (loss) | (13) | (13) | |||||||
Other | $ 0 | ||||||||
Others (in shares) | 501 | ||||||||
Period change | 2 | (134) | 0 | ||||||
Total equity balance at Sep. 30, 2021 | (157) | $ 283 | 2,936 | (303) | 90 | $ (3,176) | (170) | 13 | |
Balance (in common stock shares) at Sep. 30, 2021 | 283,186,115 | ||||||||
Balance (in treasury stock shares) at Sep. 30, 2021 | (228,780,039) | ||||||||
Balance (in preferred stock shares) at Sep. 30, 2021 | 1,315 | ||||||||
Total equity balance at Dec. 31, 2021 | $ (300) | 2,931 | (458) | 100 | $ (3,169) | (313) | 13 | ||
Balance (in treasury stock shares) at Dec. 31, 2021 | (228,630,003) | (228,630,003) | |||||||
Net income (loss) | $ (143) | (143) | |||||||
Other comprehensive income (loss) | (414) | (414) | |||||||
Other | $ 17 | ||||||||
Others (in shares) | 344,097 | ||||||||
Period change | (10) | (550) | 1 | ||||||
Total equity balance at Sep. 30, 2022 | $ (849) | $ 283 | 2,921 | (601) | (314) | $ (3,152) | (863) | 14 | |
Balance (in common stock shares) at Sep. 30, 2022 | 283,186,115 | 283,186,115 | |||||||
Balance (in treasury stock shares) at Sep. 30, 2022 | (228,285,906) | (228,285,906) | |||||||
Balance (in preferred stock shares) at Sep. 30, 2022 | 0 | 1,315 | |||||||
Total equity balance at Jun. 30, 2022 | 2,919 | (567) | (231) | $ (3,152) | (748) | 13 | |||
Balance (in treasury stock shares) at Jun. 30, 2022 | (228,286,399) | ||||||||
Net income (loss) | $ (34) | (34) | |||||||
Other comprehensive income (loss) | (83) | (83) | |||||||
Other | $ 0 | ||||||||
Others (in shares) | 493 | ||||||||
Period change | 2 | (115) | 1 | ||||||
Total equity balance at Sep. 30, 2022 | $ (849) | $ 283 | $ 2,921 | $ (601) | $ (314) | $ (3,152) | $ (863) | $ 14 | |
Balance (in common stock shares) at Sep. 30, 2022 | 283,186,115 | 283,186,115 | |||||||
Balance (in treasury stock shares) at Sep. 30, 2022 | (228,285,906) | (228,285,906) | |||||||
Balance (in preferred stock shares) at Sep. 30, 2022 | 0 | 1,315 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Premiums, fees and reimbursements received | $ 17 | $ 36 |
Investment income received | 68 | 60 |
Financial guarantee losses and loss adjustment expenses paid | (481) | (315) |
Proceeds from recoveries and reinsurance, net of salvage paid to reinsurers | 647 | 91 |
Proceeds from loan repurchase commitments | 0 | 600 |
Operating expenses paid and other operating | (79) | (65) |
Interest paid, net of interest converted to principal | (35) | (48) |
Cash provided by discontinued operations | 3 | 0 |
Net cash provided (used) by operating activities | 140 | 359 |
Cash flows from investing activities: | ||
Purchases of available-for-sale investments | (836) | (811) |
Sales of available-for-sale investments | 859 | 469 |
Paydowns and maturities of available-for-sale investments | 325 | 482 |
Purchases of investments at fair value | (121) | (159) |
Sales, paydowns, maturities and other proceeds of investments at fair value | 189 | 136 |
Sales, paydowns and maturities (purchases) of short-term investments, net | (371) | (94) |
Paydowns and maturities of loans receivable | 7 | 75 |
Consolidation of variable interest entities | 2 | 0 |
(Payments) proceeds for derivative settlements | (9) | (61) |
Proceeds from receipt of discontinued operations | 10 | 0 |
Net cash provided (used) by investing activities | 55 | 37 |
Cash flows from financing activities: | ||
Proceeds from investment agreements | 6 | 2 |
Principal paydowns of investment agreements | (9) | (1) |
Principal paydowns of medium-term notes | (74) | (77) |
Proceeds from variable interest entity notes | 2 | 0 |
Principal paydowns of variable interest entity notes | (122) | (370) |
Principal paydowns of long-term debt | (29) | (4) |
Purchases of treasury stock | (3) | (1) |
Net cash provided (used) by financing activities | (229) | (451) |
Effect of exchange rate changes on cash and cash equivalents | (2) | 0 |
Net increase (decrease) in cash and cash equivalents | (36) | (55) |
Cash and cash equivalents - beginning of period | 160 | 167 |
Cash and cash equivalents - end of period | 124 | 112 |
Reconciliation of net income (loss) to net cash provided (used) by operating activities: | ||
Income (loss) from continuing operations | (144) | (290) |
Income (loss) from discontinued operations | 1 | 0 |
Net income (loss) | (143) | (290) |
Change in: | ||
Premiums receivable | 10 | 24 |
Unearned premium revenue | (35) | (72) |
Loss and loss adjustment expense reserves | 145 | (140) |
Insurance loss recoverable | 106 | 140 |
Loan repurchase commitments | 0 | 604 |
Accrued interest payable | 86 | 81 |
Other liabilities | (49) | 5 |
Net realized investment gains (losses) | 37 | (1) |
Net (gains) losses on financial instruments at fair value and foreign exchange | (35) | (34) |
Other net realized (gains) losses | 13 | 14 |
Other operating | 5 | 28 |
Total adjustments to net income (loss) | 283 | 649 |
Net cash provided (used) by operating activities | 140 | 359 |
Supplementary Disclosure of Consolidated Cash Flow Information | ||
Fixed-maturity securities held as available-for-sale, received as salvage | 459 | 0 |
Investments carried at fair value, received as salvage | $ 277 | $ 0 |
Business Developments and Risks
Business Developments and Risks and Uncertainties | 9 Months Ended |
Sep. 30, 2022 | |
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 Mexico S.A. de C.V., (“MBIA Corp.”). Refer to “Note 10: Business Segments” for further information about the Company’s operating segments. Business Developments Puerto Rico On January 1, 2022, 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 $47 million. In addition, on July 1, 2022, Puerto Rico defaulted on scheduled debt service for National insured bonds and National paid gross claims in the aggregate of $142 million. As of September 30, 2022, National had $2.0 billion of debt service outstanding related to Puerto Rico. PREPA On March 8, 2022, the Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”) and the Puerto Rico Electric Power Authority (“PREPA”) terminated the restructuring support agreement, as amended (“RSA”). On April 8, 2022, the Court appointed a new panel of judges to commence mediation among the Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”), the Ad Hoc creditor group of holders of PREPA Senior Bonds, Assured, National and Syncora (the “April 8 Order”). The mediation initially terminated on September 16, 2022; however on September 29, 2022 the Court entered an order restarting mediation through December 31, 2022, but simultaneously permitting litigation to recommence on an expedited schedule concerning the objections by the Oversight Board to bondholder liens and claims. The Oversight Board filed an amended complaint addressing these objections on September 30, 2022. The parties and intervenor defendants, including National, filed their answer, affirmative defenses and counterclaims on October 17, 2022. Litigation over the counterclaims has been stayed by Court order. In addition, in its September 29, 2022 Order, the Court directed the Oversight Board to file a plan of adjustment for PREPA by December 1, 2022. The Court stayed the pending bondholder motion seeking the appointment of a receiver or to dismiss the case until the earlier of (a) the day after the deadline set by the Court for filing a proposed plan, if such plan deadline is not met, or (b) the termination of the plan confirmation process. GO and HTA On February 22, 2021, National agreed to join a plan support agreement, dated as of February 22, 2021 (the “GO PSA”), among the Oversight Board, certain holders of Puerto Rico Commonwealth GO (“GO”) Bonds and Puerto Rico Public Buildings Authority (“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 Commonwealth Plan of Adjustment was confirmed on January 18, 2022. The GO PSA was effective and implemented on March 15, 2022, and among other things, National received cash, including certain fees, newly issued General Obligation bonds and a contingent value instrument (“CVI”) totaling approximately $1.0 billion. The CVI is intended to provide creditors with additional recoveries based on potential outperformance of Puerto Rico 5.5% Sales and Use Tax receipts based on the projections in the 2020 certified fiscal plan, subject to certain caps. Subsequent to the GO PSA implementation, National made $277 million of acceleration and commutation payments pursuant to the GO PSA. Accordingly, National’s GO and PBA gross par outstanding and debt service outstanding have been reduced to zero from approximately $380 million and $495 million, respectively. On April 12, 2021, National, Assured Guaranty Corp., Assured Guaranty Municipal Corp. and the Oversight Board reached an agreement in principle settling certain clawback claims and providing for a distribution of cash, bonds and a CVI to Puerto Rico Highway and Transportation Authority (“HTA”) bondholders subject to completing negotiations on a plan support agreement in respect of a plan of adjustment (the “HTA PSA”). On May 5, 2021, National, Assured Guaranty Corp., Assured Guaranty Municipal Corp. and the Oversight Board entered into the HTA PSA. On May 2, 2022, the Oversight Board filed the Title III Plan of Adjustment for the Puerto Rico Highways and Transportation Authority (the “HTA Plan”), together with the Disclosure Statement and supporting documents. On June 22, 2022, the Disclosure Statement was approved by the Court. Confirmation was scheduled for August 17 and 18, 2022. During July of 2022, National received $33 million of cash and $358 million face amount of CVI relating to HTA. The Court entered the HTA confirmation order on October 12, 2022. National expects the HTA Plan to become effective in November of 2022 and anticipates receiving approximately (i) an additional cash and (ii) Refer to “Note 5: Loss and Loss Adjustment Expense Reserves” for a further discussion of the Company’s Puerto Rico reserves and recoveries. Zohar CDOs Payment of claims on MBIA Corp.’s policies insuring the Class A-1 A-2 2003-1, 2005-1, The interests in the asset recovery entities include various loans to and equity interest in portfolio companies. For those portfolio companies in which the Company does not have a majority of the voting interest, the Company recorded these assets as investments. For those portfolio companies in which the Company owns a majority of the voting interest, the Company consolidated the assets, liabilities, and financial results of these companies. In accordance with Accounting Standards Codification (“ASC”) 360-10, 205-20, In addition, certain of the debtors’ litigation claims were transferred into a litigation trust that the Company consolidated as a variable interest entity (“VIE”). Refer to “Note 13: Commitments and Contingencies” for further information about these litigation matters. Previous to the plan effective date, any salvage and subrogation recoveries related to the Zohar CDOs were reported within “Insurance loss recoverable” on the Company’s consolidated balance sheet. Refer to “Note 5: Loss and Loss Adjustment Expense Reserves” for a further discussion of these recoveries. Discontinued Operations For those portfolio companies in which the Company acquired an interest and which have met the criteria for held for sale classification in accordance with ASC 360, the Company classified these entities as held for disposition. Accordingly, the Company classified the assets and liabilities of consolidated portfolio companies and the interests in certain nonconsolidated portfolio companies as held for sale. Furthermore, as these entities met the one-year The following table summarizes the components of assets and liabilities held for sale as of September 30, 2022: In millions As of September 30, 2022 Assets held for sale Cash $ 13 Accounts receivable 23 Goodwill 90 Other assets 6 Total assets held for sale $ 132 Liabilities held for sale Accounts payable $ 11 Debt 29 Accrued expenses and other liabilities 19 Total liabilities held for sale $ 59 The results of operations from discontinued operations for the period from August 2, 2022 to September 30, 2022 consist of the following: In millions Revenues Revenues $ 23 Cost of sales 11 Total revenues from discontinued operations 12 Expenses Operating 11 Total expenses from discontinued operations 11 Income (loss) before income taxes from discontinued operations 1 Provision (benefit) for income taxes from discontinued operations - Net income (loss) from discontinued operations $ 1 Risks and Uncertainties The Company’s financial statements include estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The outcome of certain significant risks and uncertainties could cause the Company to revise its estimates and assumptions or could cause actual results to differ materially from the Company’s estimates. The discussion below highlights the significant risks and uncertainties that could have a material effect on the Company’s financial statements and business objectives in future periods. National’s Insured Portfolio National continues to monitor and remediate its existing insured portfolio and may also pursue 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. In particular, PREPA is currently in bankruptcy-like proceedings in the United States District Court for the District of Puerto Rico, pursuant to PROMESA. Since 2016, Puerto Rico has been unable or unwilling to pay its obligations as and when due, and National has been required to pay claims of unpaid principal and interest when due under its insurance policies as a consequence. Puerto Rico may continue to fail to make payments when due, which could cause National to make additional claims payments which could be material. While National will seek to recover any claim payments it makes under its guarantees, there is no assurance that it will be able to recover such payments. National monitors and analyzes these situations and other stressed credits closely, and the overall extent and duration of this stress is uncertain. MBIA Corp.’s Insured Portfolio MBIA Corp.’s primary objectives are to satisfy all claims by its policyholders and to maximize future recoveries, if any, for its surplus note holders, and then its preferred stock holders. MBIA Corp. is executing this strategy by, among other things, taking steps to maximize the collection of recoveries and by reducing and mitigating potential losses on its insurance exposures. MBIA Corp.’s insured portfolio performance could deteriorate and result in additional significant loss reserves and claim payments. MBIA Corp.’s ability to meet its obligations is limited by available liquidity and its ability to secure additional liquidity through financing and other transactions. There can be no assurance that MBIA Corp. will be successful in generating sufficient resources to meet its obligations. Recoveries In addition to the Zohar recoveries mentioned above, MBIA Corp. also projects to collect recoveries from prior claims associated with insured residential mortgage-backed securities (“RMBS”); however, the amount and timing of these collections are uncertain. Failure to collect its expected recoveries could impede MBIA Corp.’s ability to make payments when due on other policies. MBIA Corp. believes that if the New York State Department of Financial Services (“NYSDFS”) concludes at any time that MBIA Insurance Corporation will not be able to pay its policyholder claims, the NYSDFS would likely put MBIA Insurance Corporation into a rehabilitation or liquidation proceeding under Article 74 of the New York Insurance Law (“NYIL”) and/or take such other actions as the NYSDFS may deem necessary to protect the interests of MBIA Insurance Corporation’s policyholders. The determination to commence such a proceeding or take other such actions is within the exclusive control of the NYSDFS. Given the separation of MBIA Inc. and MBIA Corp. as distinct legal entities, the absence of any cross defaults between the entities and the lack of reliance by MBIA Inc. on MBIA Corp. for dividends, the Company does not believe that a rehabilitation or liquidation proceeding with respect to MBIA Insurance Corporation would have any significant liquidity impact on MBIA Inc. Such a proceeding could have material adverse consequences for MBIA Corp., including the termination of derivative contracts for which counterparties may assert market-based claims, the acceleration of debt obligations issued by affiliates and insured by MBIA Corp., the loss of control of MBIA Insurance Corporation to a rehabilitator or liquidator, and unplanned costs. Refer to “Note 5: Loss and Loss Adjustment Expense Reserves” for additional information about MBIA Corp.’s recoveries. Corporate Liquidity Based on the Company’s projections of National’s dividends and other cash inflows, the Company expects that MBIA Inc. will have sufficient cash to satisfy its debt service and general corporate needs. However, MBIA Inc. continues to have liquidity risk that could be caused by interruption of or reduction in dividends from National, deterioration in the performance of invested assets, impaired access to the capital markets, as well as other factors, which are not anticipated at this time. Furthermore, failure by MBIA Inc. to settle liabilities that are insured by MBIA Corp. could result in claims on MBIA Corp. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
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Significant Accounting Policies | Note 2: Significant Accounting Policies The Company has disclosed its significant accounting policies in “Note 2: Significant Accounting Policies” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K 10-K. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q S-X 10-K The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As additional information becomes available or actual amounts become determinable, the recorded estimates are revised and reflected in operating results. The results of operations for the three and nine months ended September 30, 2022 may not be indicative of the results that may be expected for the year ending December 31, 2022. The December 31, 2021 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP for annual periods. Investments The Company classifies its investments as available-for-sale held-to-maturity non-credit Changes in the fair values of investments carried at fair value 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. For fixed-maturity securities classified as trading and for VIE investments carried at fair value, interest income is also recorded as part of fair value changes within “Net gains (losses) on financial instruments at fair value and foreign exchange”. Realized gains and losses from the sale and other dispositions of AFS investments are reflected in earnings as part of “Net realized investment gains (losses)” 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. Accrued interest income on debt securities is not assessed for credit losses since the Company reverses any past due accrued interest income through earnings as a charge against net investment income. Interest income is subsequently recognized to the extent cash is received. 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. AFS debt securities in an unrealized loss position 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 The carrying values of debt securities are presented net of any allowance for credit losses. For AFS debt securities, adjustments to the amortized cost basis are recorded if there is an intent to sell before recovery of the impairment. For debt securities with an allowance for credit loss, changes in credit losses including accretion of the allowance for credit losses are recognized in earnings through other net realized gains (losses) with a corresponding change to the allowance for credit losses. Held For Sale Classification and Discontinued Operations In connection with the Zohar CDOs’ |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2022 | |
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Recent Accounting Pronouncements | Note 3: Recent Accounting Pronouncements Recently Adopted Accounting Standards During the nine months ended September 30, 2022, the Company did not adopt any new accounting pronouncements that had a material impact on its consolidated financial statements. Recent Accounting Developments Reference Rate Reform (Topic 848): Scope (ASU 2021-01) 2020-04) In January of 2021, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2021-01, 2020-04, 2020-04 2020-04 2021-01 2021-01 2020-04 |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2022 | |
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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 that most significantly impact the VIE’s economic performance. The Company generally considers its guarantee of principal and interest payments of insured obligations, given nonperformance by a VIE, to be an obligation to absorb losses of the entity that could potentially be significant to the VIE. At the time the Company determines it has the ability to direct the activities of a VIE that most significantly impact the economic performance of the entity based on facts and circumstances, MBIA is deemed to have a controlling financial interest in the VIE and is required to consolidate the entity as primary beneficiary. The Company performs an ongoing reassessment of controlling financial interest that may result in consolidation or deconsolidation of any VIE. Consolidated VIEs The carrying amounts of assets and liabilities of consolidated VIEs were $153 million and $180 million, respectively, as of September 30, 2022 and $169 million and $291 million, respectively, as of December 31, 2021. The carrying amounts of assets and liabilities are presented separately in “Assets of consolidated variable interest entities” and “Liabilities of consolidated variable interest entities” on the Company’s consolidated balance sheets. VIEs are consolidated or deconsolidated based on an ongoing reassessment of controlling financial interest, when events occur or circumstances arise, and whether the ability to exercise rights that constitute power to direct activities of any VIE are present according to the design and characteristics of these entities. In the third quarter of 2022, the Company consolidated one VIE related to the Zohar CDOs’ Holders of insured obligations of issuer-sponsored VIEs do not have recourse to the general assets of the Company. In the event of nonpayment of an insured obligation issued by a consolidated VIE, the Company is obligated to pay principal and interest, when due, on the respective insured obligation only. The Company’s exposure to consolidated VIEs is limited to the credit protection provided on insured obligations and any additional variable interests held by the Company. Nonconsolidated VIEs The following tables present the Company’s maximum exposure to loss for nonconsolidated VIEs and carrying values of the assets and liabilities for its interests in these VIEs in its insurance operations as of September 30, 2022 and December 31, 2021. The maximum exposure to loss as a result of MBIA’s variable interests in VIEs is represented by insurance in force. Insurance in force is the maximum future payments of principal and interest which may be required under commitments to make payments on insured obligations issued by nonconsolidated VIEs. The Company has aggregated nonconsolidated VIEs based on the underlying credit exposure of the insured obligation. The nature of the Company’s variable interests in nonconsolidated VIEs is related to financial guarantees and any investments in obligations issued by nonconsolidated VIEs. September 30, 2022 Carrying Value of Assets Carrying Value of Liabilities In millions Maximum Investments Premiums Insurance Loss Unearned Loss and Loss Insurance: Global structured finance: Mortgage-backed residential $ 1,165 $ 110 $ 13 $ 24 $ 10 $ 338 Consumer asset-backed 177 - - - - 5 Corporate asset-backed 463 - 3 7 3 1 Total global structured finance 1,805 110 16 31 13 344 Global public finance 722 - 5 - 5 - Total insurance $ 2,527 $ 110 $ 21 $ 31 $ 18 $ 344 December 31, 2021 Carrying Value of Assets Carrying Value of Liabilities In millions Maximum Investments Premiums Insurance Loss Unearned Loss and Loss Insurance: Global structured finance: Mortgage-backed residential $ 1,261 $ 87 $ 14 $ 40 $ 11 $ 430 Consumer asset-backed 226 - 1 1 1 6 Corporate asset-backed 503 - 3 200 4 11 Total global structured finance 1,990 87 18 241 16 447 Global public finance 834 - 6 - 5 - Total insurance $ 2,824 $ 87 $ 24 $ 241 $ 21 $ 447 |
Loss and Loss Adjustment Expens
Loss and Loss Adjustment Expense Reserves | 9 Months Ended |
Sep. 30, 2022 | |
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Loss and Loss Adjustment Expense Reserves | Note 5: Loss and Loss Adjustment Expense Reserves U.S. Public Finance Insurance U.S. public finance insured transactions consist of municipal bonds, including tax-exempt Puerto Rico In formulating loss reserves for its Puerto Rico exposures, the Company considers the following: environmental and political impacts on the island; litigation and ongoing discussions with creditors on the Title III proceedings; 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. 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 to default. Refer to “Note 1: Business Developments and Risks and Uncertainties” for further information on the Company’s Puerto Rico exposures and “Note 13: Commitments and Contingencies” for information on the Company’s Puerto Rico litigation. International and Structured Finance Insurance The international and structured finance insurance segment’s case basis reserves and insurance loss recoveries recorded in accordance with GAAP do not include reserves and recoveries on consolidated VIEs, since they are eliminated in consolidation. RMBS Case Basis Reserves (Financial Guarantees) The Company’s RMBS case basis reserves primarily relate to RMBS backed by alternative A-paper charged-off In calculating ultimate cumulative losses for RMBS, the Company estimates the amount of first-lien loans that are expected to be liquidated in the future through foreclosure or short sale, and estimates, the amount of second-lien loans that are expected to be charged-off 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 RMBS Recoveries The Company’s RMBS recoveries relate to structural features within the trust structures that allow for the Company to be reimbursed for prior claims paid. These reimbursements for specific trusts include recoveries that are generated from the excess spread of the transactions. Excess spread within insured RMBS securitizations is the difference between interest inflows on mortgage loan collateral and interest outflows on the insured RMBS notes. CDO Reserves and Recoveries The Company also has loss and loss adjustment expense (“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”), asset-backed securities (“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. Prior to the effective date of the plan of liquidation, salvage and subrogation recoveries related to Zohar I and Zohar II were reported within “Insurance loss recoverable” on the Company’s consolidated balance sheet. The Company’s estimate of those insurance loss recoverables for Zohar I and Zohar II primarily included probability-weighted scenarios of the ultimate monetized recovery from the Zohar Collateral. On the effective date of the plan of liquidation, MBIA Corp.’s insurance loss recoverable was replaced by the value of interests in certain asset recovery entities. Refer to “Note 1: Business Developments and Risks and Uncertainties” for further information on the plan of liquidation and the Company’s accounting for the interests acquired. Summary of Loss and LAE Reserves and Recoveries The Company’s loss and LAE reserves and recoveries before consolidated VIE eliminations, along with amounts that were eliminated as a result of consolidating VIEs for the international and structured finance insurance segment, which are included in the Company’s consolidated balance sheets as of September 30, 2022 and December 31, 2021 are presented in the following table: As of September 30, 2022 As of December 31, In millions - Balance Sheet Line Item Balance Sheet Line Item Insurance Loss and (1) Insurance Loss and (1) U.S. Public Finance Insurance $ 242 $ 688 $ 1,054 $ 425 International and Structured Finance Insurance: Before VIE eliminations 33 568 244 687 VIE eliminations (2 ) (209 ) (2 ) (218 ) Total international and structured finance insurance 31 359 242 469 Total $ 273 $ 1,047 $ 1,296 $ 894 (1) - Amounts are net of estimated recoveries of expected future claims. Changes in Loss and LAE Reserves Loss and LAE reserves represent the Company’s estimate of future claims and LAE payments, net of any future recoveries of such payments. The following table presents changes in the Company’s loss and LAE reserves for the nine months ended September 30, 2022. Changes in loss and LAE reserves, with the exception of loss and LAE payments and the impact of the revaluation of loss reserves denominated in amounts other than U.S. dollars, are recorded in “Losses and loss adjustment” expenses in the Company’s consolidated statements of operations. As of September 30, 2022, the weighted average risk-free rate used to discount the Company’s loss reserves (claim liability) was 3.90%. LAE reserves are generally expected to be settled within a one-year In millions Changes in Loss and LAE Reserves for the Nine Months Ended September 30, 2022 Gross Loss Net Loss and (1) Accretion Claim Changes in Changes in (2) Changes in Unearned Gross Loss and LAE Reserves as of $894 $(332) $15 $(88) $555 $3 $1,047 (1) - Amount is net of recoveries received on claims not yet paid. (2) - Includes changes in amount and timing of estimated payments and recoveries. The Company’s loss and LAE reserves increased from December 31, 2021, primarily due to a decrease in expected PREPA recoveries on claims not yet paid, which are netted in loss and LAE reserves, as well as higher expected claim payments, to reflect the current status of a remediation. This was partially offset by claim payments made on Puerto Rico exposure for the nine months ended September 30, 2022, an increase in recoveries related to HTA, which are netted in loss and LAE reserves, and a decline in net reserves on RMBS exposure as a result of an increase in the risk-free rates used to present value loss reserves. Changes in Insurance Loss Recoverable Insurance loss recoverable represents the Company’s estimate of expected recoveries on paid claims and LAE. The Company recognizes potential recoveries on paid claims based on the probability-weighted net cash inflows present valued at applicable risk-free rates as of the measurement date. The following table presents changes in the Company’s insurance loss recoverable for the nine months ended September 30, 2022. Changes in insurance loss recoverable with the exception of collections, are recorded in “Losses and loss adjustment” expenses in the Company’s consolidated statements of operations. Changes in Insurance Loss Recoverable for the Nine Months Ended September 30, In millions Gross Collections Accretion Changes in Changes in Gross of Insurance loss recoverable $ 1,296 $ (1,438 ) $ 5 $ (22 ) $ 432 $ 273 The decrease in the Company’s insurance loss recoverable reflected in the preceding table was primarily due to the receipt of recoveries from the GO PSA, HTA CVI and from the sale of PREPA bankruptcy claims. In addition, the decrease was due to the receipt of the remaining collateral in the Zohar CDOs to MBIA Corp. As a result of this distribution, the insurance loss recoverable was replaced with the fair values of MBIA Corp.’s interests in entities comprising the collateral. Refer to “Note 1: Business Developments and Risks and Uncertainties” for further information on the Company’s accounting for these interests. These decreases were partially offset by changes in assumptions related to the value of the remaining PREPA recoveries on paid claims due to changes in scenario assumptions to reflect the current status of a PREPA remediation. Loss and LAE Activity For the three months ended September 30, 2022, the loss and LAE benefit primarily related to an increase in risk-free rates, which decreased the present value of net case reserves on first-lien RMBS transactions. This was partially offset by changes in assumptions used to estimate the fair value of the new HTA bonds that National expects to receive. For the nine months ended September 30, 2022, loss and LAE incurred primarily related to changes in the Company’s estimate of expected recoveries on National’s PREPA exposure to reflect the current status of a PREPA remediation. PREPA loss reserves and recoveries include certain assumptions about the timing and amount of claims payments and recoveries, including assumptions about the values of recoveries on the date the Company expects to receive reimbursement under a remediation. During the nine months ended September 30, 2022, the Company updated assumptions used to estimate the value of recoveries and the timing and amount of claim payments to reflect the current status of remediation. These assumption changes resulted in a decrease in the Company’s estimated present value of expected PREPA recoveries. This was partially offset by loss benefits related to HTA and GO recoveries. During the nine months ended September 30, 2022, the Company’s HTA recoveries increased based on updated information related to the fair value of the HTA CVI that National received in July of 2022 and its estimated value of the HTA bonds National expects to receive. In addition, the Company recorded a loss benefit on its GO recoveries to reflect the fair values of the consideration received as of the acquisition date, which was higher than its previous estimate. Additionally, an increase in risk-free rates during the first nine months of 2022, resulted in a decrease in the present value of net case reserves on first-lien RMBS. For the three months ended September 30, 2021, loss and LAE incurred primarily related to changes in loss scenario assumptions on the Puerto Rico GO and PREPA credits, as well as a decline in expected salvage collections related to CDOs. In the third quarter of 2021, National modified its GO scenario assumptions to incorporate the final terms of the Plan of Adjustment. This included For the nine months ended September 30, 2021, loss and LAE incurred primarily related to the changes in loss reserve scenario assumptions on the PREPA credit discussed above, and to changes in loss reserve scenario assumptions on HTA exposure to reflect the confirmed Plan of Adjustment. In addition, an increase in the risk-free rates used to discount the value of long-dated future recoveries on Puerto Rico exposures contributed to loss and LAE incurred. Loss and LAE incurred also reflects a decrease in expected salvage collections related to CDOs. This was partially offset primarily by a decrease in the present value of loss reserves related to first-lien RMBS transactions as a result of the increase in risk-free discount rates. Costs associated with remediating insured obligations assigned to the Company’s surveillance categories are recorded as LAE and are included in “Losses and loss adjustment” expenses on the Company’s consolidated statements of operations. For the three months ended September 30, 2022 and 2021, gross LAE related to remediating insured obligations were a benefit of $1 million and an expense of $4 million, respectively. For the nine months ended September 30, 2022 and 2021, gross LAE expense related to remediating insured obligations were $4 million and $17 million, respectively. Surveillance Categories The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of September 30, 2022: Surveillance Categories $ in millions Caution Caution Caution Classified Total Number of policies 58 3 - 165 226 Number of issues (1) 18 2 - 85 105 Remaining weighted average contract period (in years 5.7 1.9 - 8.6 7.3 Gross insured contractual payments outstanding: (2) Principal $ 1,800 $ 5 $ - $ 2,166 $ 3,971 Interest 1,997 1 - 991 2,989 Total $ 3,797 $ 6 $ - $ 3,157 $ 6,960 Gross Claim Liability (3) $ - $ - $ - $ 1,338 $ 1,338 Less: Gross Potential Recoveries (4) - - - 335 335 Discount, net (5) - - - 224 224 Net claim liability (recoverable) $ - $ - $ - $ 779 $ 779 Unearned premium revenue $ 12 $ - $ - $ 23 $ 35 Reinsurance recoverable on paid and unpaid losses (6) $ 16 (1) - An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt. (2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA. (3) - The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position. (4) - Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position. (5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries. (6) - Included in “Other assets” on the Company’s consolidated balance sheets. The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of December 31, 2021: Surveillance Categories $ in millions Caution Caution Caution Classified Total Number of policies 55 3 - 202 260 Number of issues (1) 16 2 - 88 106 Remaining weighted average contract period (in years 6.1 2.6 - 8.1 7.4 Gross insured contractual payments outstanding: (2) Principal $ 1,366 $ 6 $ - $ 2,719 $ 4,091 Interest 1,867 1 - 1,214 3,082 Total $ 3,233 $ 7 $ - $ 3,933 $ 7,173 Gross Claim Liability (3) $ - $ - $ - $ 1,051 $ 1,051 Less: Gross Potential Recoveries (4) - - - 1,498 1,498 Discount, net (5) - - - (32 ) (32 ) Net claim liability (recoverable) $ - $ - $ - $ (415 ) $ (415 ) Unearned premium revenue $ 8 $ - $ - $ 29 $ 37 Reinsurance recoverable on paid and unpaid losses (6) $ 7 (1) - An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt. (2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA. (3) - The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position. (4) - Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position. (5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries. (6) - Included in “Other assets” on the Company’s consolidated balance sheets. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Text Block [Abstract] | |
Fair Value Of Financial Instruments | Note 6: Fair Value of Financial Instruments Fair Value Measurement Financial Assets and Liabilities Financial assets held by the Company primarily consist of investments in debt and equity Valuation Techniques Valuation techniques for financial instruments measured at fair value are described below. Fixed-Maturity Securities Held as Available-For-Sale, These investments include investments in U.S. Treasury and government agencies, state and municipal bonds, foreign governments, corporate obligations, MBS, ABS, money market securities, and equity investments. Substantially all of these investments are valued based on recently executed transaction prices or quoted market prices by independent third parties, including pricing services and brokers. When quoted market prices are not available, fair value is generally determined using quoted prices of similar investments or a valuation model based on observable and unobservable inputs. Inputs vary depending on the type of investment. Observable inputs include contractual cash flows, interest rate yield curves, credit default swap (“CDS”) spreads, prepayment and volatility scores, diversity scores, cross-currency basis index spreads, and credit spreads for structures similar to the financial instrument in terms of issuer, maturity and seniority. Unobservable inputs include cash flow projections and the value of any credit enhancement. Investments based on quoted market prices of identical investments in active markets are classified as Level 1 of the fair value hierarchy. Level 1 investments generally consist of U.S. Treasury and government agency, money market securities and equity investments. Quoted market prices of investments in less active markets, as well as investments which are valued based on other than quoted prices for which the inputs are observable, such as interest rate yield curves, are categorized in Level 2 of the fair value hierarchy. Investments that contain significant inputs that are not observable are categorized as Level 3. Cash and Cash Equivalents The carrying amounts of cash and cash equivalents approximate fair value due to the short-term nature and credit worthiness of these instruments and are categorized in Level 1 of the fair value hierarchy. Loans Receivable at Fair Value Loans receivable at fair value are assets held by consolidated VIEs consisting of residential mortgage loans and are categorized in Level 3 of the fair value hierarchy. Fair values of residential mortgage loans are determined using quoted prices for similar securities or internal cash flow models, adjusted for the fair values of the financial guarantees provided by MBIA Corp. on the related MBS. The fair values of the financial guarantees consider expected claim payments, net of recoveries, under MBIA Corp.’s policies. Other Assets Other assets include receivables representing the right to receive reimbursement payments on claim payments expected to be made on certain insured VIE liabilities due to risk mitigating transactions with third parties executed to effectively defease, or, in-substance Medium-term Notes at Fair Value The Company has elected to measure certain medium-term notes (“MTNs”) at fair value on a recurring basis. The fair values of certain MTNs are based on quoted market prices provided by third-party sources, where available. When quoted market prices are not available, the Company applies a matrix pricing grid to determine fair value based on the quoted market prices received for similar instruments and considering the MTNs’ stated maturity and interest rate. Nonperformance risk is included in the quoted market prices and the matrix pricing grid. MTNs are categorized in Level 3 of the fair value hierarchy and do not include accrued interest. 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 or internal cash flow models. Fair values based on quoted prices of similar securities and internal cash flow models may be adjusted for factors unique to the securities, including any credit enhancement. Observable inputs include interest rate yield curves, bond spreads of similar securities and MBIA Corp.’s CDS spreads. Unobservable inputs include the value of any credit enhancement. VIE notes are categorized in Level 3 of the fair value hierarchy based on the lowest level input that is significant to the fair value measurement in its entirety. Derivatives The corporate segment has entered into derivative transactions primarily consisting of interest rate swaps. Fair values of over-the-counter A VIE consolidated by the Company entered into a derivative instrument consisting of a cross currency swap. The cross currency swap was entered into to manage the variability in cash flows resulting from fluctuations in foreign currency rates. Prior to September 30, 2022, the fair value of the VIE derivative was determined based on inputs from unobservable cash flows projection of the derivative, discounted using observable discount rates and resulted in a derivative asset, which was included in “Assets of Consolidated Variable Interest Entities – Other Assets” on the Company’s consolidated balance sheet. As of September 30, 2022, the fair value of the VIE derivative was determined based on the valuation provided by an independent third party and resulted in a derivative liability, which is included in “Liabilities of Consolidated Variable Interest Entities – Derivative Liabilities” on the Company’s consolidated balance sheet. As the significant inputs are unobservable, the derivative contract is categorized in Level 3 of the fair value hierarchy. Significant Unobservable Inputs The following tables provide quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021: In millions Fair Value as of Valuation Techniques Unobservable Input Range (Weighted Average) Assets: Equity investments $ 101 EBITDA multiples Multiples (1) Discounted cash flow Discount rate (1) Assets of consolidated VIEs: Loans receivable at fair value 79 Market prices of similar liabilities or internal cash flow models adjusted for financial guarantees provided to VIE obligations Impact of financial guarantee 8% - 84% (47%) (2) Liabilities of consolidated VIEs: Variable interest entity notes 173 Market prices of VIE assets adjusted for financial guarantees provided or market prices of similar liabilities Impact of financial guarantee 40% - 79% (68%) (2) (1) - Range for multiples and discount rates reflects the potential variability in multiples and in discount rates. (2) - Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. In millions Fair Value as of Valuation Techniques Unobservable Input Range (Weighted Average) Assets of consolidated VIEs: Loans receivable at fair value $ 77 Market prices of similar liabilities adjusted for financial guarantees provided to VIE obligations Impact of financial guarantee 23% - 72% (55%) (1) Liabilities of consolidated VIEs: Variable interest entity notes 291 Market prices of VIE assets adjusted for financial guarantees provided or market prices of similar liabilities Impact of financial guarantee 33% - 73% (59%) (1) (1) - Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. Sensitivity of Significant Unobservable Inputs The significant unobservable inputs used in the fair value measurement of the Company’s equity investments at fair value are EBITDA multiples and the discount rate. The fair value of equity investments is determined by taking the median value in EBITDA multiple and discounted cash flow valuation scenarios. If there had been lower or higher EBITDA multiples, the value of equity investments would have been lower or higher, respectively. If there had been a lower or higher discount rate, the value of equity investments would have been higher or lower, respectively. The significant unobservable input used in the fair value measurement of the Company’s residential loans receivable at fair value of consolidated VIEs is the impact of the financial guarantee. The fair value of residential loans receivable is calculated by subtracting the value of the financial guarantee from the market value of similar instruments to that of the VIE liabilities or the market value derived from internal cash flow models. The value of a financial guarantee is estimated by the Company as the present value of expected cash payments, net of recoveries, under the policy. If there had been a lower expected cash flow on the underlying loans receivable of the VIE, the value of the financial guarantee provided by the Company under the insurance policy would have been higher. This would have resulted in a lower fair value of the residential loans receivable in relation to the obligations of the VIE. The significant unobservable input used in the fair value measurement of the Company’s VIE notes of consolidated VIEs is the impact of the financial guarantee. The fair value of VIE notes is calculated by adding the value of the financial guarantee to the market value of VIE assets. When the VIE note is backed by RMBS, the fair value of the VIE liability is calculated by applying the market value of similar instruments to that of the VIE liabilities or internal cash flow models. The value of a financial guarantee is estimated by the Company as the present value of expected cash payments under the policy. If the value of the guarantee provided by the Company to the obligations issued by the VIE had increased, the credit support would have added value to the liabilities of the VIE. This would have resulted in an increased fair value of the liabilities of the VIE. Fair Value Measurements The following tables present the fair value of the Company’s assets (including short-term investments) and liabilities measured and reported at fair value on a recurring basis as of September 30, 2022 and December 31, 2021: Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Significant (Level 3) Balance as of Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 643 $ 86 $ - $ 729 State and municipal bonds - 312 - 312 Foreign governments - 20 - 20 Corporate obligations - 788 - 788 Mortgage-backed securities: Residential mortgage-backed agency - 191 - 191 Residential mortgage-backed non-agency - 86 37 123 Commercial mortgage-backed - 13 - 13 Asset-backed securities: Collateralized debt obligations - 159 - 159 Other asset-backed - 123 - 123 Total fixed-maturity investments 643 1,778 37 2,458 Money market securities 459 - - 459 Equity investments 35 19 101 155 Cash and cash equivalents 102 - - 102 Assets of consolidated VIEs: Corporate obligations - 4 - 4 Mortgage-backed securities: Residential mortgage-backed non-agency - 22 - 22 Commercial mortgage-backed - 10 - 10 Asset-backed securities: Collateralized debt obligations - 6 - 6 Other asset-backed - 7 - 7 Cash 9 - - 9 Loans receivable at fair value: Residential loans receivable - - 79 79 Other assets: Other - - 16 16 Total assets $ 1,248 $ 1,846 $ 233 $ 3,327 Liabilities: Medium-term notes $ - $ - $ 38 $ 38 Derivative liabilities: Non-insured - 49 - 49 Liabilities of consolidated VIEs: Variable interest entity notes - - 173 173 Currency derivatives - - 5 5 Total liabilities $ - $ 49 $ 216 $ 265 Fair Value Measurements at Reporting Date Using In millions Quoted Prices in (Level 1) Significant Significant (Level 3) Balance as of Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 750 $ 95 $ - $ 845 State and municipal bonds - 168 - 168 Foreign governments - 17 - 17 Corporate obligations - 1,050 - 1,050 Mortgage-backed securities: Residential mortgage-backed agency - 198 - 198 Residential mortgage-backed non-agency - 98 - 98 Commercial mortgage-backed - 13 - 13 Asset-backed securities: Collateralized debt obligations - 150 - 150 Other asset-backed - 106 - 106 Total fixed-maturity investments 750 1,895 - 2,645 Money market securities 78 - - 78 Equity investments 47 23 - 70 Cash and cash equivalents 151 - - 151 Derivative assets: Non-insured - 1 - 1 Assets of consolidated VIEs: Corporate obligations - 5 - 5 Mortgage-backed securities: Residential mortgage-backed non-agency - 27 - 27 Commercial mortgage-backed - 10 - 10 Asset-backed securities: Collateralized debt obligations - 6 4 10 Other asset-backed - 8 - 8 Cash 9 - - 9 Loans receivable at fair value: Residential loans receivable - - 77 77 Other assets: Currency derivatives - - 9 9 Other - - 14 14 Total assets $ 1,035 $ 1,975 $ 104 $ 3,114 Liabilities: Medium-term notes $ - $ - $ 98 $ 98 Derivative liabilities: Insured credit derivatives - 1 - 1 Non-insured - 130 - 130 Liabilities of consolidated VIEs: Variable interest entity notes - - 291 291 Total liabilities $ - $ 131 $ 389 $ 520 Level 3 assets at fair value as of September 30, 2022 and December 31, 2021 represented approximately 7% and 3%, respectively, of total assets measured at fair value. Level 3 liabilities at fair value as of September 30, 2022 and December 31, 2021 represented approximately 82% and 75%, respectively, of total liabilities measured at fair value. The following tables present the fair values and carrying values of the Company’s assets and liabilities that are disclosed at fair value but not reported at fair value on the Company’s consolidated balance sheets as of September 30, 2022 and December 31, 2021. The majority of the financial assets and liabilities that the Company requires fair value reporting or disclosures are valued based on the Company’s or a third-party’s estimate of discounted cash flow model estimates, or quoted market values for identical or similar products. Fair Value Measurements at Reporting Date Using In millions Quoted Prices in (Level 1) Significant (Level 2) Significant (Level 3) Fair Value Carry Value Liabilities: Long-term debt $ - $ 361 $ - $ 361 $ 2,393 Medium-term notes - - 296 296 446 Investment agreements - - 298 298 273 Liabilities of consolidated VIEs: Variable interest entity loans payable - - 2 2 2 Total liabilities $ - $ 361 $ 596 $ 957 $ 3,114 Financial Guarantees: Gross liability (recoverable) $ - $ - $ 1,240 $ 1,240 $ 1,061 Ceded recoverable (liability) - - 29 29 16 Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Other Significant (Level 3) Fair Value Carry Value Liabilities: Long-term debt $ - $ 433 $ - $ 433 $ 2,331 Medium-term notes - - 322 322 490 Investment agreements - - 355 355 274 Total liabilities $ - $ 433 $ 677 $ 1,110 $ 3,095 Financial Guarantees: Gross liability (recoverable) $ - $ - $ 848 $ 848 $ (80 ) Ceded recoverable (liability) - - 30 30 (42 ) The following tables present information about changes in Level 3 assets (including short-term investments) and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2022 and 2021: Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2022 In millions Balance, Total Unrealized (1) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in for the Period for Assets as of Change in for the Period for Assets as of (1) Assets: Residential mortgage- backed non-agency $ 55 $ - $ (2 ) $ 1 $ - $ - $ (17 ) $ - $ - $ 37 $ - $ (3 ) Equity investments - - - 101 - - - - - 101 - - Assets of consolidated VIEs: Loans receivable - residential 68 13 - - - (2 ) - - - 79 11 - Currency derivatives 9 (9 ) - - - - - - - - (9 ) - Other 16 - - - - - - - - 16 - - Total assets $ 148 $ 4 $ (2 ) $ 102 $ - $ (2 ) $ (17 ) $ - $ - $ 233 $ 2 $ (3 ) In millions Balance, Total Unrealized (2) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in the Period still held as of Change in the Period still held as of (2) Liabilities: Medium-term notes $ 42 $ (8 ) $ 4 $ - $ - $ - $ - $ - $ - $ 38 $ (8 ) $ 4 Liabilities of consolidated VIEs: VIE notes 217 33 (25 ) - - (52 ) - - - 173 (2 ) 1 Currency derivatives - 5 - - - - - - - 5 5 - Total liabilities $ 259 $ 30 $ (21 ) $ - $ - $ (52 ) $ - $ - $ - $ 216 $ (5 ) $ 5 (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 Three Months Ended September 30, 2021 In millions Balance, Total Unrealized (1) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in still held as of Change in still held as of (1) Assets: Assets of consolidated VIEs: Commercial mortgage-backed $ - $ - $ - $ - $ - $ - $ - $ 4 $ - $ 4 $ - $ - Loans receivable- residential 129 (3 ) - - - (2 ) (47 ) - - 77 (4 ) - Currency derivatives 8 1 - - - - - - - 9 1 - Other 13 2 - - - - - - - 15 2 - Total assets $ 150 $ - $ - $ - $ - $ (2 ) $ (47 ) $ 4 $ - $ 105 $ (1 ) $ - In millions Balance, Total Unrealized (2) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in the Period still held as of Change in the Period in OCI for still held as of (2) Liabilities: Medium-term notes $ 105 $ (4 ) $ 1 $ - $ - $ - $ - $ - $ - $ 102 $ (4 ) $ 1 Liabilities of consolidated VIEs: VIE notes 290 (3 ) 9 - - (4 ) - - - 292 (5 ) 9 Total liabilities $ 395 $ (7 ) $ 10 $ - $ - $ (4 ) $ - $ - $ - $ 394 $ (9 ) $ 10 (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. For the three months ended September 30, 2022, there were no transfers into or out of Level 3. For the three months ended September 30, 2021, sales included the impact of the deconsolidation of VIEs. Refer to “Note 4: Variable Interest Entities” for additional information about the deconsolidation of VIEs. For the three months ended September 30, 2021, transfers into Level 3and out of Level 2 were related to CMBS, where inputs, which are significant to their valuation, became unobservable during the quarter. These inputs included spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. There were no transfers out of Level 3. The following tables present information about changes in Level 3 assets (including short-term investments) and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2022 and 2021: Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2022 In millions Balance, Total Unrealized (1) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in for Assets as of Change in still held as of (1) Assets: Residential mortgage- backed non-agency $ - $ - $ (6 ) $ 60 $ - $ - $ (17 ) $ - $ - $ 37 $ - $ - Equity investments - - - 101 - - - - - 101 - - Assets of consolidated VIEs: Collateralized debt obligations 4 - - - - (4 ) - - - - - - Loans receivable - residential 77 8 - - - (6 ) - - - 79 2 - Currency derivatives 9 (9 ) - - - - - - - - (9 ) - Other 14 2 - - - - - - - 16 2 - Total assets $ 104 $ 1 $ (6 ) $ 161 $ - $ (10 ) $ (17 ) $ - $ - $ 233 $ (5 ) $ - In millions Balance, Total Unrealized (2) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in the Period for Liabilities of Change in the Period (2) Liabilities: Medium-term notes $ 98 $ (29 ) $ 17 $ - $ - $ (48 ) $ - $ - $ - $ 38 $ (28 ) $ 18 Liabilities of consolidated VIEs: VIE notes 291 8 (6 ) - - (120 ) - - - 173 (9 ) 4 Currency derivatives - 5 - - - - - - - 5 5 - Total liabilities $ 389 $ (16 ) $ 11 $ - $ - $ (168 ) $ - $ - $ - $ 216 $ (32 ) $ 22 (1) - Reported within the “Unrealized gains (losses) on available-for-sale (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 Nine Months Ended September 30, 2021 In millions Balance, Total Unrealized (1) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in for Assets of Change in (1) Assets: Assets of consolidated VIEs: Commercial mortgage-backed $ - $ - $ - $ - $ - $ - $ - $ 4 $ - $ 4 $ - $ - Loans receivable - residential 120 31 - - - (13 ) (61 ) - - 77 21 - Loan repurchase commitments 604 (4 ) - - - (600 ) - - - - - - Currency derivatives 6 3 - - - - - - - 9 3 - Other 14 1 - - - - - - - 15 1 - Total assets $ 744 $ 31 $ - $ - $ - $ (613 ) $ (61 ) $ 4 $ - $ 105 $ 25 $ - In millions Balance, Total Unrealized (2) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in Change in (2) Liabilities: Medium-term notes $ 110 $ (13 ) $ 5 $ - $ - $ - $ - $ - $ - $ 102 $ (13 ) $ 5 Other derivatives 49 - - - - (49 ) - - - - - - Liabilities of consolidated VIEs: VIE notes 303 44 (15 ) - - (35 ) (5 ) - - 292 23 4 Total liabilities $ 462 $ 31 $ (10 ) $ - $ - $ (84 ) $ (5 ) $ - $ - $ 394 $ 10 $ 9 (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. For the nine months ended September 30, 2022, there were no transfers into or out of Level 3. For the nine months ended nine months ended September 30, 2021, sales include the impact of the deconsolidation of VIEs. Refer to “Note 4: Variable Interest Entities” for additional information about the deconsolidation of VIEs. For the nine months ended September 30, 2021, transfers into Level 3 and out of Level 2 were related to CMBS, where inputs, which are significant to their valuation, became unobservable during the quarter. These inputs included spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. There were no transfers out of Level 3. Gains and losses (realized and unrealized) included in earnings related to Level 3 assets and liabilities for the three months ended September 30, 2022 and 2021 are reported on the Company’s consolidated statements of operations as follows: Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 In millions Total Gains in Earnings Change in Unrealized 2022 Total Gains in Earnings Change in Unrealized 2021 Revenues: Net gains (losses) on financial instruments at fair value and foreign exchange $ 8 $ 8 $ 4 $ 4 Revenues of consolidated VIEs: Net gains (losses) on financial instruments at fair value and foreign exchange (34 ) (1 ) 3 4 Total $ (26 ) $ 7 $ 7 $ 8 Gains and losses (realized and unrealized) included in earnings relating to Level 3 assets and liabilities for the nine months ended September 30, 2022 and 2021 are reported on the Company’s consolidated statements of operations as follows: Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 In millions Total Gains in Earnings Change in Unrealized 2022 Total Gains in Earnings Change in Unrealized 2021 Revenues: Net gains (losses) on financial instruments at fair value and foreign exchange $ 29 $ 28 $ 13 $ 13 Revenues of consolidated VIEs: Net gains (losses) on financial instruments at fair value and foreign exchange (12 ) (1 ) (13 ) 2 Total $ 17 $ 27 $ - $ 15 Fair Value Option The Company elected to record at fair value certain financial instruments, including financial instruments that are consolidated in connection with the adoption of the accounting guidance for consolidation of VIEs. The following table presents the gains and (losses) included in the Company’s consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021 for financial instruments for which the fair value option was elected: Three Months Ended September 30, Nine Months Ended September 30, In millions 2022 2021 2022 2021 Investments carried at fair value (1) $ (7 ) $ (1 ) $ (33 ) $ 5 Fixed-maturity securities held at fair value-VIE (2) (1 ) 1 (4 ) 3 Loans receivable at fair value: Residential mortgage loans (2) 13 (3 ) 8 31 Loan repurchase commitments (2) - - - (4 ) Other assets-VIE (2) - 2 2 1 Medium-term notes (1) 8 4 29 13 Variable interest entity notes (2) (35 ) 3 (12 ) (47 ) (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” The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of September 30, 2022 and December 31, 2021 for loans and notes for which the fair value option was elected: As of September 30, 2022 As of December 31, 2021 In millions Contractual Fair Difference Contractual Fair Difference Loans receivable at fair value: Residential mortgage loans - current $ 39 $ 39 $ - $ 40 $ 40 $ - Residential mortgage loans (90 days or more past due) 144 40 104 141 37 104 Total loans receivable and other instruments at fair value $ 183 $ 79 $ 104 $ 181 $ 77 $ 104 Variable interest entity notes $ 771 $ 173 $ 598 $ 922 $ 291 $ 631 Medium-term notes $ 49 $ 38 $ 11 $ 108 $ 98 $ 10 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, all of which resulted in depressed pricing of the financial instruments. Instrument-Specific Credit Risk of Liabilities Elected Under the Fair Value Option As of September 30, 2022 and December 31, 2021, the cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option were losses of $43 million and $32 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 three months ended September 30, 2022 and 2021, the portions of instrument-specific credit risk included in accumulated other comprehensive income (“AOCI”) that were recognized in earnings due to settlement of liabilities were losses of $23 million and $12 million, respectively. During the nine months ended September 30, 2022 and 2021, the portions of instrument-specific credit risk included in AOCI that were recognized in earnings due to settlement of liabilities were losses of $11 million and $36 million, respectively. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2022 | |
Text Block [Abstract] | |
Investments | Note 7: Investments Investments, excluding equity instruments, those elected under the fair value option and those classified as trading, consist of debt instruments classified as available-for-sale The following tables present the amortized cost, allowance for credit losses, corresponding gross unrealized gains and losses and fair value for AFS investments in the Company’s consolidated investment portfolio as of September 30, 2022 and December 31, 2021: September 30, 2022 In millions Amortized Allowance Gross Gross Fair AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 749 $ - $ 6 $ (39 ) $ 716 State and municipal bonds 143 - 1 (12 ) 132 Foreign governments 23 - - (4 ) 19 Corporate obligations 872 - 1 (162 ) 711 Mortgage-backed securities: Residential mortgage-backed agency 207 - - (25 ) 182 Residential mortgage-backed non-agency 135 - 2 (19 ) 118 Commercial mortgage-backed 13 - - (1 ) 12 Asset-backed securities: Collateralized debt obligations 118 - - (7 ) 111 Other asset-backed 109 - - (4 ) 105 Total AFS investments $ 2,369 $ - $ 10 $ (273 ) $ 2,106 December 31, 2021 In millions Amortized Allowance Gross Gross Fair AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 782 $ - $ 54 $ (2 ) $ 834 State and municipal bonds 140 - 27 - 167 Foreign governments 13 - 1 - 14 Corporate obligations 905 - 53 (5 ) 953 Mortgage-backed securities: Residential mortgage-backed agency 190 - 3 (1 ) 192 Residential mortgage-backed non-agency 80 - 12 - 92 Commercial mortgage-backed 10 - - - 10 Asset-backed securities: Collateralized debt obligations 101 - - - 101 Other asset-backed 95 - - (1 ) 94 Total AFS investments $ 2,316 $ - $ 150 $ (9 ) $ 2,457 The following table presents the distribution by contractual maturity of AFS fixed-maturity securities at amortized cost, net of allowance for credit losses, and fair value as of September 30, 2022. 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 $ 379 $ 378 Due after one year through five years 294 278 Due after five years through ten years 342 292 Due after ten years 772 630 Mortgage-backed and asset-backed 582 528 Total fixed-maturity investments $ 2,369 $ 2,106 Deposited and Pledged Securities The fair value of securities on deposit with various regulatory authorities as of September 30, 2022 and December 31, 2021 was $10 million and $11 million, respectively. These deposits are required to comply with state insurance laws. Investment agreement obligations require the Company to pledge securities as collateral. Securities pledged in connection with investment agreements may not be repledged by the investment agreement counterparty. As of September 30, 2022 and December 31, 2021, the fair value of securities pledged as collateral for these investment agreements approximated $282 million and $280 million, respectively. The Company’s collateral as of September 30, 2022 consisted principally of U.S. Treasury and government agency and corporate obligations, and was primarily held with major U.S. banks. Refer to “Note 8: Derivative Instruments” for information about securities posted to derivative counterparties. Impaired Investments The following tables present the non-credit September 30, 2022 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 $ 307 $ (36 ) $ 14 $ (3 ) $ 321 $ (39 ) State and municipal bonds 95 (11 ) 1 (1 ) 96 (12 ) Foreign governments 18 (4 ) - - 18 (4 ) Corporate obligations 597 (134 ) 74 (28 ) 671 (162 ) Mortgage-backed securities: Residential mortgage-backed agency 127 (13 ) 55 (12 ) 182 (25 ) Residential mortgage-backed non-agency 102 (19 ) - - 102 (19 ) Commercial mortgage-backed 11 (1 ) 1 - 12 (1 ) Asset-backed securities: Collateralized debt obligations 67 (3 ) 43 (4 ) 110 (7 ) Other asset-backed 103 (4 ) 1 - 104 (4 ) Total AFS investments $ 1,427 $ (225 ) $ 189 $ (48 ) $ 1,616 $ (273 ) December 31, 2021 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 $ 161 $ (1 ) $ 16 $ (1 ) $ 177 $ (2 ) State and municipal bonds 11 - - - 11 - Foreign governments 3 - - - 3 - Corporate obligations 270 (5 ) 8 - 278 (5 ) Mortgage-backed securities: Residential mortgage-backed agency 94 (1 ) 1 - 95 (1 ) Residential mortgage-backed non-agency 3 - 1 - 4 - Commercial mortgage-backed 2 - - - 2 - Asset-backed securities: Collateralized debt obligations 60 - 29 - 89 - Other asset-backed 72 (1 ) - - 72 (1 ) Total AFS investments $ 676 $ (8 ) $ 55 $ (1 ) $ 731 $ (9 ) Gross unrealized losses on AFS investments increased as of September 30, 2022 compared with December 31, 2021 primarily due to higher interest rates and 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 September 30, 2022 and December 31, 2021 was 14 and 11 years, respectively. As of September 30, 2022 and December 31, 2021, there were 140 and 36 securities, respectively, that were in an unrealized loss position for a continuous twelve-month period or longer, of which, fair values of 135 and 7 securities, respectively, were below book value by more than 5%. The following table presents the distribution of securities in an unrealized loss position for a continuous twelve-month period or longer where fair value was below book value by more than 5% as of September 30, 2022: AFS Securities Percentage of Fair Value Below Book Value Number of Book Value (in millions) Fair Value > 5% to 15% 34 $ 80 $ 72 > 15% to 25% 45 71 56 > 25% to 50% 53 73 49 > 50% 3 - - Total 135 $ 224 $ 177 As of September 30, 2022, the Company concluded that it does not have the intent to sell securities in an unrealized loss position and it is more likely than not, that it would not have to sell these securities before recovery of their cost basis. In making this conclusion, the Company examined the cash flow projections for its investment portfolios, the potential sources and uses of cash in its businesses, and the cash resources available to its business other than sales of securities. It also considered the existence of any risk management or other plans as of September 30, 2022 that would require the sale of impaired securities. Impaired securities that the Company intends to sell before the expected recovery of such securities’ fair values have been written down to fair value. For the three and nine months ended September 30, 2022, impairment loss due to intent to sell securities in an unrealized loss position was $2 million and $21 million, respectively, and reported in “Other net realized gains (losses)” on the Company’s consolidated results of operation. For the three months ended September 30, 2022, the impairment loss was previously recognized as an allowance for credit loss, but was impaired to fair value during the third quarter of 2022 due to the intent to sell these securities. Credit Losses on Investments The Company’s fixed-maturity securities for which fair value is less than amortized cost are reviewed quarterly in order to determine whether a credit loss exists. If the Company determines that the declines in the fair value are related to credit loss, the Company will establish an allowance for credit losses and recognize the credit component through earnings. Refer to “Note 8: Investments” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K Allowance for Credit Losses Rollforward The following tables present the rollforward of allowance for credit losses on AFS investments for the three and nine months ended September 30, 2022: Three Months Ended September 30, 2022 In millions Balance Additions Additions Reductions Reductions- to sell or MLTN Change in Write Recoveries Balance as of AFS Investments Fixed-maturity investments: Corporate obligations $ 3 $ - $ - $ - $ 3 $ - $ - $ - $ - Total Allowance on AFS investments $ 3 $ - $ - $ - $ 3 $ - $ - $ - $ - Nine Months Ended September 30, 2022 In millions Balance as of Additions Additions Reductions Reductions- to sell or MLTN Change in Write Recoveries Balance as of AFS Investments Fixed-maturity investments: Corporate obligations $ - $ 3 $ - $ - $ 3 $ - $ - $ - $ - Total Allowance on AFS investments $ - $ 3 $ - $ - $ 3 $ - $ - $ - $ - The additions to credit losses for the nine months ended September 30, 2022 were related to concerns on an issuer’s credit deterioration as a result of the Ukraine and Russia conflict. In the third quarter of 2022, these securities were impaired to fair value due to the Company’s intent to sell and the credit losses were reversed. The Company does not recognize credit losses on securities insured by MBIA Corp. and National since those securities, whether or not owned by the Company, are evaluated for impairments in accordance with its loss reserving policy. The following table provides information about securities held by the Company as of September 30, 2022 that were in an unrealized loss position and insured by a financial guarantor, along with the amount of insurance loss reserves corresponding to the par amount owned by the Company. The Company did not hold any securities in an unrealized loss position that were insured by a third-party financial guarantor as of September 30, 2022. In millions Fair Unrealized Insurance (1) Mortgage-backed $ 93 $ (17) $ 111 Corporate obligations 74 (31) - Other 6 - - Total $ 173 $ (48) $ 111 (1) - Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured and are discounted using a discount rate equal to the risk-free rate applicable to the currency and weighted average remaining life of the insurance contract and may differ from the fair value. Sales of Available-for-Sale Gross realized gains and losses from sales of AFS investments are recorded within “Net realized investment gains (losses)” on the Company’s consolidated statements of operations. The proceeds and the gross realized gains and losses from sales of fixed-maturity securities held as AFS for the three and nine months ended September 30, 2022 and 2021 are as follows: Three Months Ended September 30, Nine Months Ended September 30, In millions 2022 2021 2022 2021 Proceeds from sales $ 339 $ 73 $ 859 $ 469 Gross realized gains $ 2 $ 1 $ 3 $ 7 Gross realized losses $ (17 ) $ - $ (42 ) $ (8 ) Equity and Trading Investments Equity and trading investments are included within “Investments carried at fair value” on the Company’s consolidated balance sheets. Unrealized gains and losses recognized on equity and trading investments held as of the end of each period for the three and nine months ended September 30, 2022 and 2021 are as follows: In millions Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net gains (losses) recognized during the period on equity and trading securities $ (3 ) $ - $ (31 ) $ 5 Less: Net gains (losses) recognized during the period on equity and trading securities sold during the period (6 ) 1 (6 ) 1 Unrealized gains (losses) recognized during the period on equity and trading securities still held at the reporting date $ 3 $ (1 ) $ (25 ) $ 4 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Text Block [Abstract] | |
Derivative Instruments | Note 8: Derivative Instruments The Company has primarily entered into derivative instruments consisting of interest rate swaps to manage the risks associated with fluctuations in interest rates affecting the value of certain assets in the corporate segment. Additionally, the Company has insured interest rate swaps and inflation-linked swaps related to its insured debt issuances in the U.S. public finance insurance and the international and structured finance insurance segments. These derivatives do not qualify for the financial guarantee scope exception and are accounted for as derivative instruments. The Company’s international and structured finance insurance segment consolidated a VIE which is party to a cross currency swap, entered into to manage the variability in cash flows resulting from fluctuations in foreign currency rates. Credit Derivatives Sold The following tables present information about credit derivatives sold by the Company’s insurance operations that were outstanding as of September 30, 2022 and December 31, 2021. Credit ratings represent the lower of underlying ratings assigned to the collateral by Moody’s Investor Services (“Moody’s”), Standard & Poor’s Financial Services, LLC (“S&P”) or MBIA. $ in millions As of September 30, 2022 Credit Derivatives Sold Weighted AAA AA A BBB Below Total Fair Value Insured swaps 13.9 Years $ - $ 53 $ 1,022 $ 232 $ 60 $ 1,367 $ - Total fair value $ - $ - $ - $ - $ - $ - $ in millions As of December 31, 2021 Credit Derivatives Sold Weighted AAA AA A BBB Below Total Fair Insured swaps 14.1 Years $ - $ 61 $ 1,136 $ 292 $ - $ 1,489 $ (1 ) Total fair value $ - $ - $ (1 ) $ - $ - $ (1 ) Internal credit ratings assigned by MBIA on the underlying credit exposures are assigned by the Company’s surveillance group. In assigning an internal rating, current status reports from issuers and trustees, as well as publicly available transaction-specific information, are reviewed. The maximum potential amount of future payments (undiscounted) on insured swaps that are primarily insured interest rate swaps is estimated as the net interest settlements plus principal payments where applicable, on amortizing swaps. MBIA may hold recourse provisions through subrogation rights of the swap counterparty, whereby if MBIA makes a claim payment, it may be entitled to receive net swap settlements from the issuer under the swap agreement. Counterparty Credit Risk The Company manages counterparty credit risk on an individual counterparty basis through master netting agreements covering derivative instruments in the corporate segment. These agreements allow the Company to contractually net amounts due from a counterparty with those amounts due to such counterparty when certain triggering events occur. The Company only executes swaps under master netting agreements, which typically contain mutual credit downgrade provisions that generally provide the ability to require assignment or termination in the event either MBIA or the counterparty is downgraded below a specified credit rating. Under these agreements, the Company may receive or provide cash, U.S. Treasury or other highly rated securities to secure counterparties’ exposure to the Company or its exposure to counterparties, respectively. Such collateral is available to the holder to pay for replacing the counterparty in the event that the counterparty defaults. As of September 30, 2022 and December 31, 2021, the Company did not hold or post cash collateral to derivative counterparties. As of September 30, 2022 and December 31, 2021, the Company had securities with a fair value of $75 million and $159 million, respectively, posted to derivative counterparties and these amounts are included within “Fixed-maturity securities held as available-for-sale, As of September 30, 2022, the fair value on one Credit Support Annex (“CSA”) was immaterial. As of December 31, 2021, 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 September 30, 2022 and December 31, 2021, the counterparty was rated Aa3 by Moody’s and A+ by S&P. Financial Statement Presentation The fair value of amounts recognized for eligible derivative contracts executed with the same counterparty under a master netting agreement, including any cash collateral that may have been received or posted by the Company, is presented on a net basis in accordance with accounting guidance for the offsetting of fair value amounts related to derivative instruments. Insured swaps are not subject to master netting agreements. VIE derivative assets and liabilities are not presented net of any master netting agreements. Counterparty netting of derivative assets and liabilities offsets balances in “Interest rate swaps”, when applicable. The following tables present the total fair value of the Company’s derivative assets and liabilities by instrument and balance sheet location, before counterparty netting, as of September 30, 2022 and December 31, 2021: September 30, 2022 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 $ 1,367 Other assets $ - Derivative liabilities $ - Interest rate swaps 375 Other assets - Derivative liabilities (49 ) Interest rate swaps-embedded 178 Medium-term notes - Medium-term notes (1 ) Currency swaps-VIE 38 Other assets-VIE - Derivative liabilities-VIE (5 ) Total non-designated $ 1,958 $ - $ (55 ) (1) - In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Company’s embedded derivative instruments is determined by the location of the related host contract. December 31, 2021 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 $ 1,489 Other assets $ - Derivative liabilities $ (1 ) Interest rate swaps 399 Other assets 1 Derivative liabilities (130 ) Interest rate swaps-embedded 206 Medium-term notes - Medium-term notes (9 ) Currency swaps-VIE 50 Other assets-VIE 9 Derivative liabilities-VIE - Total non-designated $ 2,144 $ 10 $ (140 ) (1) - In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Company’s embedded derivative instruments is determined by the location of the related host contract. The following table presents the effect of derivative instruments on the consolidated statements of operations for the three months ended September 30, 2022 and 2021: In millions Derivatives Not Designated as Three Months Ended September 30, Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2022 2021 Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange $ 23 $ 5 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE (14 ) 1 Total $ 9 $ 6 The following table presents the effect of derivative instruments on the consolidated statements of operations for the nine months ended September 30, 2022 and 2021: In millions Derivatives Not Designated as Hedging Instruments Nine Months Ended Location of Gain (Loss) Recognized in Income on Derivative 2022 2021 Insured swaps Net gains (losses) on financial instruments at fair value and foreign exchange $ 1 $ - Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange 79 22 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE (14 ) 3 Total $ 66 $ 25 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9: Income Taxes The Company’s income taxes and the related effective tax rates for the three and nine months ended September 30, 2022 and 2021 are as follows: Three Months Ended September 30, Nine Months Ended September 30, In millions 2022 2021 2022 2021 Income (loss) from continuing operations $ (35 ) $ (123 ) $ (144 ) $ (290 ) Provision (benefit) for income taxes $ - $ - $ - $ - Effective tax rate 0.0% 0.0% 0.0% 0.0% For the nine months ended September 30, 2022 and 2021, the Company’s effective tax rate applied to its loss before income taxes was lower than the U.S. statutory tax rate due to the full valuation allowance on the changes in its net deferred tax asset. Deferred Tax Asset, Net of Valuation Allowance The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of its existing deferred tax assets. A significant piece of objective negative evidence evaluated was the Company having a three-year cumulative loss. Such objective evidence limits the ability to consider other subjective evidence, such as the Company’s projections of pre-tax billion and $1.1 billion as of September 30, 2022 and December 31, 2021, respectively. The Company will continue to analyze the valuation allowance on a quarterly basis. Net operating losses (“NOLs”) of property and casualty insurance companies are permitted to be carried back two years and carried forward 20 years. NOLs of property and casualty insurance companies are not subject to the 80 percent taxable income limitation and indefinite lived carryforward period required by the Tax Cuts and Jobs Act applicable to general corporate NOLs. Accounting for Uncertainty in Income Taxes The Company’s policy is to record and disclose any change in unrecognized tax benefit (“UTB”) and related interest and/or penalties to income tax in the consolidated statements of operations. The Company includes interest as a component of income tax expense. As of September 30, 2022 and December 31, 2021, the Company had no UTB. Federal income tax returns through 2011 have been examined or surveyed. As of September 30, 2022, the Company’s NOL is approximately $3.9 billion. NOLs generated prior to tax reform and property and casualty NOLs generated after tax reform will expire between tax years 2031 through 2042. As of September 30, 2022, the Company has a foreign tax credit carryforward of $58 million, which will expire between tax years 2022 through 2032. Section 382 of the Internal Revenue Code Included in the Company’s Amended By-Laws By-Laws Inflation Reduction Act On August 16, 2022, the Inflation Reduction Act (“IRA”) was signed into law and includes several tax changes, notably a new 15% minimum tax on the book income of large corporations and a 1% excise tax on most stock buybacks. The IRA will not have a material impact on the Company’s financial results. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2022 | |
Text Block [Abstract] | |
Business Segments | Note 10: 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 Corporate The Company’s corporate segment consists of general corporate activities, including providing support services to MBIA Inc.’s subsidiaries as well as asset and capital management. Support services are provided by the Company’s service company, MBIA Services, and include, among others, management, legal, accounting, treasury, information technology, and insurance portfolio surveillance, on a fee-for-service International and Structured Finance Insurance The Company’s international and structured finance insurance segment is principally conducted through MBIA Corp. The financial guarantees issued by MBIA Corp. generally provide unconditional and irrevocable guarantees of the payment of principal of, and interest or other amounts owing on, non-U.S. non-U.S. sub-sovereign Segments Results The following tables provide the Company’s segment results for the three months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 U.S. International and Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 17 $ (3 ) $ 9 $ - $ 23 Net gains (losses) on financial instruments at fair value and foreign exchange (6 ) 35 (4 ) - 25 Revenues of consolidated VIEs - - (31 ) - (31 ) Inter-segment revenues (2) 6 12 2 (20 ) - Total revenues 17 44 (24 ) (20 ) 17 Losses and loss adjustment 16 - (28 ) - (12 ) Amortization of deferred acquisition costs and operating 2 12 2 - 16 Interest - 14 32 - 46 Expenses of consolidated VIEs - - 2 - 2 Inter-segment expenses (2) 10 5 6 (21 ) - Total expenses 28 31 14 (21 ) 52 Income (loss) from continuing operations before income taxes $ (11 ) $ 13 $ (38 ) $ 1 $ (35 ) Identifiable assets per segment $ 3,061 $ 622 $ 1,708 $ (1,508 ) (3) $ 3,883 Assets held for sale - - - - 132 Total identifiable assets $ 3,061 $ 622 $ 1,708 $ (1,508 ) $ 4,015 (1) - Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). (2) - Primarily represents intercompany service charges and intercompany net investment income and expenses. (3) - Consists principally of intercompany reinsurance balances. Three Months Ended September 30, 2021 U.S. International and Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 21 $ 7 $ 24 $ - $ 52 Net gains (losses) on financial instruments at fair value and foreign exchange - 12 (3 ) - 9 Net gains (losses) on extinguishment of debt - 16 - - 16 Revenues of consolidated VIEs - - (5 ) - (5 ) Inter-segment revenues (2) 8 14 2 (24 ) - Total revenues 29 49 18 (24 ) 72 Losses and loss adjustment 68 - 57 - 125 Amortization of deferred acquisition costs and operating 6 16 1 - 23 Interest - 14 26 - 40 Expenses of consolidated VIEs - - 7 - 7 Inter-segment expenses (2) 11 4 9 (24 ) - Total expenses 85 34 100 (24 ) 195 Income (loss) from continuing operations before income taxes $ (56 ) $ 15 $ (82 ) $ - $ (123 ) (1) - Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). (2) - Primarily represents intercompany service charges and intercompany net investment income and expenses. The following tables provide the Company’s segment results for the nine months ended September 30, 2022 and 2021: Nine Months Ended September 30, 2022 U.S. International and Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 24 $ 3 $ 26 $ - $ 53 Net gains (losses) on financial instruments at fair value and foreign exchange (43 ) 111 (17 ) - 51 Net gains (losses) on extinguishment of debt - 5 - (1 ) 4 Revenues of consolidated VIEs - - (11 ) - (11 ) Inter-segment revenues (2) 20 43 7 (70 ) - Total revenues 1 162 5 (71 ) 97 Losses and loss adjustment 152 - (95 ) - 57 Amortization of deferred acquisition costs and operating 6 35 8 - 49 Interest - 42 88 - 130 Expenses of consolidated VIEs - - 5 - 5 Inter-segment expenses (2) 33 17 20 (70 ) - Total expenses 191 94 26 (70 ) 241 Income (loss) from continuing operations before income taxes $ (190 ) $ 68 $ (21 ) $ (1 ) $ (144 ) Identifiable assets per segment $ 3,061 $ 622 $ 1,708 $ (1,508 ) (3) $ 3,883 Assets held for sale - - - - 132 Total identifiable assets $ 3,061 $ 622 $ 1,708 $ (1,508 ) $ 4,015 (1) - Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). (2) - Primarily represents intercompany service charges and intercompany net investment income and expenses. (3) - Consists principally of intercompany reinsurance balances. Nine Months Ended September 30, 2021 U.S. International and Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 65 $ 13 $ 37 $ - $ 115 Net gains (losses) on financial instruments at fair value and foreign exchange - 50 (9 ) - 41 Net gains (losses) on extinguishment of debt - 30 - - 30 Revenues of consolidated VIEs - - (24 ) - (24 ) Inter-segment revenues (2) 22 50 10 (82 ) - Total revenues 87 143 14 (82 ) 162 Losses and loss adjustment 135 - 97 - 232 Amortization of deferred acquisition costs and operating 14 54 7 - 75 Interest - 42 80 - 122 Expenses of consolidated VIEs - - 23 - 23 Inter-segment expenses (2) 36 14 30 (80 ) - Total expenses 185 110 237 (80 ) 452 Income (loss) from continuing operations before income taxes $ (98 ) $ 33 $ (223 ) $ (2 ) $ (290 ) (1) - Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). (2) - Primarily represents intercompany service charges and intercompany net investment income and expenses. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
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Earnings Per Share | Note 11: Earnings Per Share Earnings per share is calculated using the two-class non-employee e Basic earnings per share excludes dilution and is reported separately for continuing operations and discontinued operations. Basic earnings per share for continuing operations and discontinued operations is computed by dividing net income from continuing operations and discontinued operations available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the dilutive effect of all unvested restricted stock outstanding during the period that could potentially result in the issuance of common stock. The dilution from unvested restricted stock is calculated by applying the two-class The following table presents the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Nine Months Ended In millions except per share amounts 2022 2021 2022 2021 Basic earnings per share: Net income (loss) from continuing operations $ (35 ) $ (123 ) $ (144 ) $ (290 ) Less: undistributed earnings allocated to participating securities - - - - Net income (loss) from continuing operations available to common shareholders (35 ) (123 ) (144 ) (290 ) Net income (loss) from discontinued operations 1 - 1 - Net income (loss) $ (34 ) $ (123 ) $ (143 ) $ (290 ) Basic weighted average shares (1) 49.9 49.6 49.8 49.4 Continuing operations $ (0.68 ) $ (2.49 ) $ (2.88 ) $ (5.87 ) Discontinued operations 0.01 - 0.01 - Net income (loss) per share - basic $ (0.67 ) $ (2.49 ) $ (2.87 ) $ (5.87 ) Diluted earnings per share: Net income (loss) from continuing operations $ (35 ) $ (123 ) $ (144 ) $ (290 ) Less: undistributed earnings allocated to participating securities - - - - Net income (loss) from continuing operations available to (35 ) (123 ) (144 ) (290 ) Net income (loss) from discontinued operations 1 - 1 - Net income (loss) $ (34 ) $ (123 ) $ (143 ) $ (290 ) Diluted weighted average shares 49.9 49.6 49.8 49.4 Continuing operations $ (0.68 ) $ (2.49 ) $ (2.88 ) $ (5.87 ) Discontinued operations 0.01 - 0.01 - Net income (loss) per share -diluted $ (0.67 ) $ (2.49 ) $ (2.87 ) $ (5.87 ) Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect 5.0 4.9 5.0 4.9 (1) - Includes 0.8 million and 0.9 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for each of the three months and nine months ended September 30, 2022 and 2021, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2022 | |
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Accumulated Other Comprehensive Income | Note 12: Accumulated Other Comprehensive Income The following table presents the changes in the components of AOCI for the nine months ended September 30, 2022: In millions Unrealized Foreign Instrument- Total Balance, December 31, 2021 $ 138 $ (6 ) $ (32 ) $ 100 Other comprehensive income (loss) before reclassifications (399 ) 1 (22 ) (420 ) Amounts reclassified from AOCI (5 ) - 11 6 Net period other comprehensive income (loss) (404 ) 1 (11 ) (414 ) Balance, September 30, 2022 $ (266 ) $ (5 ) $ (43 ) $ (314 ) The following table presents the details of the reclassifications from AOCI for the three and nine months ended September 30, 2022 and 2021: In millions Amounts Reclassified from AOCI Three Months Ended September 30, Nine Months Ended September 30, Details about AOCI Components 2022 2021 2022 2021 Affected Line Item on the Consolidated Statements of Operations Unrealized gains (losses) on AFS securities: Realized gains (losses) on sale of securities $ 3 $ 3 $ 5 $ 11 Net realized investment gains (losses) Total unrealized gains (losses) on AFS securities 3 3 5 11 Instrument-specific credit risk of liabilities: Settlement of liabilities (23 ) (12 ) (11 ) (36 ) Net gains (losses) on financial instruments at fair value and foreign exchange - VIE Total reclassifications for the period $ (20 ) $ (9 ) $ (6 ) $ (25 ) Net income (loss) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Text Block [Abstract] | |
Commitments and Contingencies | Note 13: Commitments and Contingencies The following commitments and contingencies provide an update of those discussed in “Note 19: Commitments and Contingencies” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K 10-K. Litigation Tilton et al. v. MBIA Inc. et al., No. 19-50390 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 creditors seeking the equitable subordination of those creditors’ claims with respect to the Zohar Funds. Plaintiffs claimed they were entitled to relief due to inequitable and unfair conduct by defendants. Plaintiffs filed an amended complaint on January 6, 2022. Defendants’ motions to dismiss the amended complaint was granted on March 25, 2022, and the Delaware District Court affirmed that dismissal on August 11, 2022. Plaintiffs have appealed the District Court’s decision to the Court of Appeals for the Third Circuit. Zohar CDO 2003-1, 1:17-cv-0307-WHP On November 27, 2017, Lynn Tilton and certain affiliated entities including Patriarch Partners, LLC 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. On July 6, 2021, following the completion of briefing on those motions to dismiss, the presiding judge, the Honorable William H. Pauley died, and the case was reassigned to the Honorable P. Kevin Castel. On September 29, 2021, Judge Castel issued a decision on the motions to dismiss; granting them almost in full, with certain claims being stayed rather than dismissed, pending further developments in the Adversary Proceedings pending in the Zohar Funds Bankruptcy Cases in Delaware Bankruptcy Court. MBIA Insurance Corp. v. Tilton et al., No. 20-50776 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. On July 23, 2021, the court denied in part and granted in part Tilton’s and her affiliated defendants’ motion to dismiss the complaint. The court denied defendants’ motion with respect to MBIA’s claims for breach of contract, tortious interference, unjust enrichment, and malicious prosecution of claims Tilton brought against MBIA in Delaware. On February 1, 2022, MBIA filed its most recent Amended Complaint pursuant to and in accordance with the court’s multiple rulings on defendants’ motion to dismiss and related filings regarding the parties’ pleadings. Defendants filed their Answer to MBIA’s most recent Amended Complaint on April 13, 2022. Following the confirmation of a liquidation plan of the Zohar collateral by the Delaware Bankruptcy Court and that plan becoming effective on August 2, 2022, MBIA Corp.’s claims in this adversary proceeding, among other assets, were transferred and assigned to a litigation trust and distributed to MBIA Corp. in the form of interests in certain asset recovery entities managed by a special manager subject to oversight by MBIA Corp. and another former Zohar creditor. As a result, on September 12, 2022, the court ordered the substitution of that Zohar litigation trust, as successor-in-interest now-consolidated Zohar III, Corp. v. Patriarch Partners, LLC No. 20-50534 No. 20-50534 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 proceeding to lift the automatic 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 First Circuit. On August 8, 2018, the First Circuit issued an order reversing the Court’s decision on jurisdictional grounds and remanding the motion. On October 3, 2018, National, together with other monolines filed an updated motion for relief from the automatic stay to allow Movants to exercise their statutory right to have a receiver appointed at PREPA. The Oversight Board filed a motion to dismiss the receiver motion. These motions had been stayed pending completion of the RSA but following its termination on March 8, 2022, the Court appointed a mediation panel to engage with the parties on a settlement. The bondholders renewed their motion on September 19, 2022. On September 29, 2022, the Court issued an order continuing its stay of the motion until the earlier of (a) the day after the deadline set by the Court for the Oversight Board to file a proposed plan of adjustment for PREPA, if such plan deadline is not met, or (b) the termination of the plan confirmation process. Cortland Capital Market Services LLC, et al. v. The Financial Oversight and Management Board for Puerto Rico et al., No. 19-00396 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, and subject to Judge Swain’s order dated September 29, 2022, remains stayed until further order of the Court. 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. On June 2, 2021, the Superior Court denied Defendants’ motion to dismiss. Defendants appealed but filed an answer to the complaint on July 15, 2021. On December 17, 2021, the Commonwealth of Puerto Rico Court of Appeals issued a judgment reversing the Superior Court’s decision on the motion to dismiss. On January 4, 2022, National filed with the Court of Appeals a motion for reconsideration of its judgment concerning the motion to dismiss. On February 17, 2022, the Court of Appeals issued an order denying National’s motion for reconsideration. On March 23, 2022, National filed a Petition for Certiorari to the Supreme Court of the Commonwealth of Puerto Rico, which was denied on May 13, 2022. On May 27, 2022 National filed a motion for reconsideration. On June 8, 2022 Defendants filed their response to National’s motion for reconsideration. On October 14, 2022, the motion was denied. On October 19, 2022, National filed a renewed motion for reconsideration and a motion seeking review of that motion by the whole of the Puerto Rico Supreme court. Defendants have objected to both motions. Complaint Objecting to Defendant’s Claims and Seeking Related Relief 17-BK-4780-LTS On July 1, 2019, the Oversight Board and AAFAF filed an adversary complaint against the Trustee for the PREPA bonds, challenging the validity of the liens arising under the Trust Agreement securing the insurance obligations of National. On September 30, 2022, the Oversight Board filed an amended complaint objecting to: (1) the secured claims asserted by the Trustee in PREPA’s assets; and (2) all unsecured claims of the Trustee, including as a result of the disallowance of the Trustee’s claims. The Oversight Board alleges that the Trustee’s security interest in PREPA’s property is limited to moneys deposited to the credit of the sinking fund and subordinate funds, and are non-recourse Complaint Objecting to Defendants’ Claims and Seeking Related Relief, 17-03283-LTS 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, the Court heard argument on the limited cross motions for summary judgment, which remain pending. On January 20, 2021, the Court 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. On April 6, 2021, the Oversight Board filed a motion to lift the litigation stay for the limited purpose of filing further summary judgment motions that would dispose of substantially all of the remaining claims challenged in this complaint. The hearing on this motion was held April 28, 2021, and the motion was denied. As part of the GO PSA and HTA PSA, National has agreed to stay its participation in this litigation subject to the effective date of the HTA Plan. The Court entered the confirmation order on October 12, 2022. 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. Lease Commitments The Company has a lease agreement for its headquarters in Purchase, New York. The initial lease term expires in 2030 with the option to terminate the lease in 2025 upon the payment of a termination amount. This lease agreement included an incentive amount to fund certain leasehold improvements, renewal options, escalation clauses and a free rent period. This lease agreement has been classified as an operating lease, and operating rent expense is recognized on a straight-line basis. The following table provides information about the Company’s leases as of September 30, 2022: $ in millions As of Balance Sheet Location Right-of-use $ 17 Other assets Lease liability $ 17 Other liabilities Weighted average remaining lease term (years) 7.1 Discount rate used for operating leases 7.5% Total future minimum lease payments $ 24 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q S-X 10-K The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As additional information becomes available or actual amounts become determinable, the recorded estimates are revised and reflected in operating results. The results of operations for the three and nine months ended September 30, 2022 may not be indicative of the results that may be expected for the year ending December 31, 2022. The December 31, 2021 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP for annual periods. |
Investments | Investments The Company classifies its investments as available-for-sale held-to-maturity non-credit Changes in the fair values of investments carried at fair value 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. For fixed-maturity securities classified as trading and for VIE investments carried at fair value, interest income is also recorded as part of fair value changes within “Net gains (losses) on financial instruments at fair value and foreign exchange”. Realized gains and losses from the sale and other dispositions of AFS investments are reflected in earnings as part of “Net realized investment gains (losses)” 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. Accrued interest income on debt securities is not assessed for credit losses since the Company reverses any past due accrued interest income through earnings as a charge against net investment income. Interest income is subsequently recognized to the extent cash is received. |
Credit Losses on Debt Securities | 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. AFS debt securities in an unrealized loss position 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 The carrying values of debt securities are presented net of any allowance for credit losses. For AFS debt securities, adjustments to the amortized cost basis are recorded if there is an intent to sell before recovery of the impairment. For debt securities with an allowance for credit loss, changes in credit losses including accretion of the allowance for credit losses are recognized in earnings through other net realized gains (losses) with a corresponding change to the allowance for credit losses. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards During the nine months ended September 30, 2022, the Company did not adopt any new accounting pronouncements that had a material impact on its consolidated financial statements. |
Recent Accounting Developments | Recent Accounting Developments Reference Rate Reform (Topic 848): Scope (ASU 2021-01) 2020-04) In January of 2021, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2021-01, 2020-04, 2020-04 2020-04 2021-01 2021-01 2020-04 |
Held For Sale Classification and Discontinued Operations | Held For Sale Classification and Discontinued Operations In connection with the Zohar CDOs’ |
Business Developments and Ris_2
Business Developments and Risks and Uncertainties (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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Schedule of Discontinued Operations Components of Assets and Liabilities Held for Sale | The following table summarizes the components of assets and liabilities held for sale as of September 30, 2022: In millions As of September 30, 2022 Assets held for sale Cash $ 13 Accounts receivable 23 Goodwill 90 Other assets 6 Total assets held for sale $ 132 Liabilities held for sale Accounts payable $ 11 Debt 29 Accrued expenses and other liabilities 19 Total liabilities held for sale $ 59 |
Schedule of Results of Operations from Discontinued Operation | The results of operations from discontinued operations for the period from August 2, 2022 to September 30, 2022 consist of the following: In millions Revenues Revenues $ 23 Cost of sales 11 Total revenues from discontinued operations 12 Expenses Operating 11 Total expenses from discontinued operations 11 Income (loss) before income taxes from discontinued operations 1 Provision (benefit) for income taxes from discontinued operations - Net income (loss) from discontinued operations $ 1 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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Summary of Nonconsolidated VIEs Assets and Liabilities | September 30, 2022 Carrying Value of Assets Carrying Value of Liabilities In millions Maximum Investments Premiums Insurance Loss Unearned Loss and Loss Insurance: Global structured finance: Mortgage-backed residential $ 1,165 $ 110 $ 13 $ 24 $ 10 $ 338 Consumer asset-backed 177 - - - - 5 Corporate asset-backed 463 - 3 7 3 1 Total global structured finance 1,805 110 16 31 13 344 Global public finance 722 - 5 - 5 - Total insurance $ 2,527 $ 110 $ 21 $ 31 $ 18 $ 344 December 31, 2021 Carrying Value of Assets Carrying Value of Liabilities In millions Maximum Investments Premiums Insurance Loss Unearned Loss and Loss Insurance: Global structured finance: Mortgage-backed residential $ 1,261 $ 87 $ 14 $ 40 $ 11 $ 430 Consumer asset-backed 226 - 1 1 1 6 Corporate asset-backed 503 - 3 200 4 11 Total global structured finance 1,990 87 18 241 16 447 Global public finance 834 - 6 - 5 - Total insurance $ 2,824 $ 87 $ 24 $ 241 $ 21 $ 447 |
Loss and Loss Adjustment Expe_2
Loss and Loss Adjustment Expense Reserves (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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Present Value Of The Probability-Weighted Future Claim Payments And Recoveries | As of September 30, 2022 As of December 31, In millions - Balance Sheet Line Item Balance Sheet Line Item Insurance Loss and (1) Insurance Loss and (1) U.S. Public Finance Insurance $ 242 $ 688 $ 1,054 $ 425 International and Structured Finance Insurance: Before VIE eliminations 33 568 244 687 VIE eliminations (2 ) (209 ) (2 ) (218 ) Total international and structured finance insurance 31 359 242 469 Total $ 273 $ 1,047 $ 1,296 $ 894 (1) - Amounts are net of estimated recoveries of expected future claims. |
Schedule Of Loss And Loss Adjustment Expenses Reserves | In millions Changes in Loss and LAE Reserves for the Nine Months Ended September 30, 2022 Gross Loss Net Loss and (1) Accretion Claim Changes in Changes in (2) Changes in Unearned Gross Loss and LAE Reserves as of $894 $(332) $15 $(88) $555 $3 $1,047 (1) - Amount is net of recoveries received on claims not yet paid. (2) - Includes changes in amount and timing of estimated payments and recoveries. |
Schedule Of Insurance Loss Recoverable | Changes in Insurance Loss Recoverable for the Nine Months Ended September 30, In millions Gross Collections Accretion Changes in Changes in Gross of Insurance loss recoverable $ 1,296 $ (1,438 ) $ 5 $ (22 ) $ 432 $ 273 |
Schedule Of Financial Guarantees And Related Claim Liability | The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of September 30, 2022: Surveillance Categories $ in millions Caution Caution Caution Classified Total Number of policies 58 3 - 165 226 Number of issues (1) 18 2 - 85 105 Remaining weighted average contract period (in years 5.7 1.9 - 8.6 7.3 Gross insured contractual payments outstanding: (2) Principal $ 1,800 $ 5 $ - $ 2,166 $ 3,971 Interest 1,997 1 - 991 2,989 Total $ 3,797 $ 6 $ - $ 3,157 $ 6,960 Gross Claim Liability (3) $ - $ - $ - $ 1,338 $ 1,338 Less: Gross Potential Recoveries (4) - - - 335 335 Discount, net (5) - - - 224 224 Net claim liability (recoverable) $ - $ - $ - $ 779 $ 779 Unearned premium revenue $ 12 $ - $ - $ 23 $ 35 Reinsurance recoverable on paid and unpaid losses (6) $ 16 (1) - An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt. (2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA. (3) - The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position. (4) - Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position. (5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries. (6) - Included in “Other assets” on the Company’s consolidated balance sheets. The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of December 31, 2021: Surveillance Categories $ in millions Caution Caution Caution Classified Total Number of policies 55 3 - 202 260 Number of issues (1) 16 2 - 88 106 Remaining weighted average contract period (in years 6.1 2.6 - 8.1 7.4 Gross insured contractual payments outstanding: (2) Principal $ 1,366 $ 6 $ - $ 2,719 $ 4,091 Interest 1,867 1 - 1,214 3,082 Total $ 3,233 $ 7 $ - $ 3,933 $ 7,173 Gross Claim Liability (3) $ - $ - $ - $ 1,051 $ 1,051 Less: Gross Potential Recoveries (4) - - - 1,498 1,498 Discount, net (5) - - - (32 ) (32 ) Net claim liability (recoverable) $ - $ - $ - $ (415 ) $ (415 ) Unearned premium revenue $ 8 $ - $ - $ 29 $ 37 Reinsurance recoverable on paid and unpaid losses (6) $ 7 (1) - An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt. (2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA. (3) - The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position. (4) - Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position. (5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries. (6) - Included in “Other assets” on the Company’s consolidated balance sheets. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis | In millions Fair Value as of Valuation Techniques Unobservable Input Range (Weighted Average) Assets: Equity investments $ 101 EBITDA multiples Multiples (1) Discounted cash flow Discount rate (1) Assets of consolidated VIEs: Loans receivable at fair value 79 Market prices of similar liabilities or internal cash flow models adjusted for financial guarantees provided to VIE obligations Impact of financial guarantee 8% - 84% (47%) (2) Liabilities of consolidated VIEs: Variable interest entity notes 173 Market prices of VIE assets adjusted for financial guarantees provided or market prices of similar liabilities Impact of financial guarantee 40% - 79% (68%) (2) (1) - Range for multiples and discount rates reflects the potential variability in multiples and in discount rates. (2) - Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. In millions Fair Value as of Valuation Techniques Unobservable Input Range (Weighted Average) Assets of consolidated VIEs: Loans receivable at fair value $ 77 Market prices of similar liabilities adjusted for financial guarantees provided to VIE obligations Impact of financial guarantee 23% - 72% (55%) (1) Liabilities of consolidated VIEs: Variable interest entity notes 291 Market prices of VIE assets adjusted for financial guarantees provided or market prices of similar liabilities Impact of financial guarantee 33% - 73% (59%) (1) (1) - Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. |
Company's Assets And Liabilities Measured At Fair Value On Recurring Basis | The following tables present the fair value of the Company’s assets (including short-term investments) and liabilities measured and reported at fair value on a recurring basis as of September 30, 2022 and December 31, 2021: Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Significant (Level 3) Balance as of Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 643 $ 86 $ - $ 729 State and municipal bonds - 312 - 312 Foreign governments - 20 - 20 Corporate obligations - 788 - 788 Mortgage-backed securities: Residential mortgage-backed agency - 191 - 191 Residential mortgage-backed non-agency - 86 37 123 Commercial mortgage-backed - 13 - 13 Asset-backed securities: Collateralized debt obligations - 159 - 159 Other asset-backed - 123 - 123 Total fixed-maturity investments 643 1,778 37 2,458 Money market securities 459 - - 459 Equity investments 35 19 101 155 Cash and cash equivalents 102 - - 102 Assets of consolidated VIEs: Corporate obligations - 4 - 4 Mortgage-backed securities: Residential mortgage-backed non-agency - 22 - 22 Commercial mortgage-backed - 10 - 10 Asset-backed securities: Collateralized debt obligations - 6 - 6 Other asset-backed - 7 - 7 Cash 9 - - 9 Loans receivable at fair value: Residential loans receivable - - 79 79 Other assets: Other - - 16 16 Total assets $ 1,248 $ 1,846 $ 233 $ 3,327 Liabilities: Medium-term notes $ - $ - $ 38 $ 38 Derivative liabilities: Non-insured - 49 - 49 Liabilities of consolidated VIEs: Variable interest entity notes - - 173 173 Currency derivatives - - 5 5 Total liabilities $ - $ 49 $ 216 $ 265 Fair Value Measurements at Reporting Date Using In millions Quoted Prices in (Level 1) Significant Significant (Level 3) Balance as of Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 750 $ 95 $ - $ 845 State and municipal bonds - 168 - 168 Foreign governments - 17 - 17 Corporate obligations - 1,050 - 1,050 Mortgage-backed securities: Residential mortgage-backed agency - 198 - 198 Residential mortgage-backed non-agency - 98 - 98 Commercial mortgage-backed - 13 - 13 Asset-backed securities: Collateralized debt obligations - 150 - 150 Other asset-backed - 106 - 106 Total fixed-maturity investments 750 1,895 - 2,645 Money market securities 78 - - 78 Equity investments 47 23 - 70 Cash and cash equivalents 151 - - 151 Derivative assets: Non-insured - 1 - 1 Assets of consolidated VIEs: Corporate obligations - 5 - 5 Mortgage-backed securities: Residential mortgage-backed non-agency - 27 - 27 Commercial mortgage-backed - 10 - 10 Asset-backed securities: Collateralized debt obligations - 6 4 10 Other asset-backed - 8 - 8 Cash 9 - - 9 Loans receivable at fair value: Residential loans receivable - - 77 77 Other assets: Currency derivatives - - 9 9 Other - - 14 14 Total assets $ 1,035 $ 1,975 $ 104 $ 3,114 Liabilities: Medium-term notes $ - $ - $ 98 $ 98 Derivative liabilities: Insured credit derivatives - 1 - 1 Non-insured - 130 - 130 Liabilities of consolidated VIEs: Variable interest entity notes - - 291 291 Total liabilities $ - $ 131 $ 389 $ 520 |
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 (Level 1) Significant (Level 2) Significant (Level 3) Fair Value Carry Value Liabilities: Long-term debt $ - $ 361 $ - $ 361 $ 2,393 Medium-term notes - - 296 296 446 Investment agreements - - 298 298 273 Liabilities of consolidated VIEs: Variable interest entity loans payable - - 2 2 2 Total liabilities $ - $ 361 $ 596 $ 957 $ 3,114 Financial Guarantees: Gross liability (recoverable) $ - $ - $ 1,240 $ 1,240 $ 1,061 Ceded recoverable (liability) - - 29 29 16 Fair Value Measurements at Reporting Date Using In millions Quoted Prices in Significant Other Significant (Level 3) Fair Value Carry Value Liabilities: Long-term debt $ - $ 433 $ - $ 433 $ 2,331 Medium-term notes - - 322 322 490 Investment agreements - - 355 355 274 Total liabilities $ - $ 433 $ 677 $ 1,110 $ 3,095 Financial Guarantees: Gross liability (recoverable) $ - $ - $ 848 $ 848 $ (80 ) Ceded recoverable (liability) - - 30 30 (42 ) |
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 for the Period for Assets as of Change in for the Period for Assets as of (1) Assets: Residential mortgage- backed non-agency $ 55 $ - $ (2 ) $ 1 $ - $ - $ (17 ) $ - $ - $ 37 $ - $ (3 ) Equity investments - - - 101 - - - - - 101 - - Assets of consolidated VIEs: Loans receivable - residential 68 13 - - - (2 ) - - - 79 11 - Currency derivatives 9 (9 ) - - - - - - - - (9 ) - Other 16 - - - - - - - - 16 - - Total assets $ 148 $ 4 $ (2 ) $ 102 $ - $ (2 ) $ (17 ) $ - $ - $ 233 $ 2 $ (3 ) In millions Balance, Total Unrealized (1) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in still held as of Change in still held as of (1) Assets: Assets of consolidated VIEs: Commercial mortgage-backed $ - $ - $ - $ - $ - $ - $ - $ 4 $ - $ 4 $ - $ - Loans receivable- residential 129 (3 ) - - - (2 ) (47 ) - - 77 (4 ) - Currency derivatives 8 1 - - - - - - - 9 1 - Other 13 2 - - - - - - - 15 2 - Total assets $ 150 $ - $ - $ - $ - $ (2 ) $ (47 ) $ 4 $ - $ 105 $ (1 ) $ - In millions Balance, Total Unrealized (1) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in for Assets as of Change in still held as of (1) Assets: Residential mortgage- backed non-agency $ - $ - $ (6 ) $ 60 $ - $ - $ (17 ) $ - $ - $ 37 $ - $ - Equity investments - - - 101 - - - - - 101 - - Assets of consolidated VIEs: Collateralized debt obligations 4 - - - - (4 ) - - - - - - Loans receivable - residential 77 8 - - - (6 ) - - - 79 2 - Currency derivatives 9 (9 ) - - - - - - - - (9 ) - Other 14 2 - - - - - - - 16 2 - Total assets $ 104 $ 1 $ (6 ) $ 161 $ - $ (10 ) $ (17 ) $ - $ - $ 233 $ (5 ) $ - In millions Balance, Total Unrealized (1) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in for Assets of Change in (1) Assets: Assets of consolidated VIEs: Commercial mortgage-backed $ - $ - $ - $ - $ - $ - $ - $ 4 $ - $ 4 $ - $ - Loans receivable - residential 120 31 - - - (13 ) (61 ) - - 77 21 - Loan repurchase commitments 604 (4 ) - - - (600 ) - - - - - - Currency derivatives 6 3 - - - - - - - 9 3 - Other 14 1 - - - - - - - 15 1 - Total assets $ 744 $ 31 $ - $ - $ - $ (613 ) $ (61 ) $ 4 $ - $ 105 $ 25 $ - |
Changes In Level 3 Liabilities Measured At Fair Value On A Recurring Basis | In millions Balance, Total Unrealized (2) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in the Period still held as of Change in the Period still held as of (2) Liabilities: Medium-term notes $ 42 $ (8 ) $ 4 $ - $ - $ - $ - $ - $ - $ 38 $ (8 ) $ 4 Liabilities of consolidated VIEs: VIE notes 217 33 (25 ) - - (52 ) - - - 173 (2 ) 1 Currency derivatives - 5 - - - - - - - 5 5 - Total liabilities $ 259 $ 30 $ (21 ) $ - $ - $ (52 ) $ - $ - $ - $ 216 $ (5 ) $ 5 (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. In millions Balance, Total Unrealized (2) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in the Period still held as of Change in the Period in OCI for still held as of (2) Liabilities: Medium-term notes $ 105 $ (4 ) $ 1 $ - $ - $ - $ - $ - $ - $ 102 $ (4 ) $ 1 Liabilities of consolidated VIEs: VIE notes 290 (3 ) 9 - - (4 ) - - - 292 (5 ) 9 Total liabilities $ 395 $ (7 ) $ 10 $ - $ - $ (4 ) $ - $ - $ - $ 394 $ (9 ) $ 10 (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. In millions Balance, Total Unrealized (2) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in the Period for Liabilities of Change in the Period (2) Liabilities: Medium-term notes $ 98 $ (29 ) $ 17 $ - $ - $ (48 ) $ - $ - $ - $ 38 $ (28 ) $ 18 Liabilities of consolidated VIEs: VIE notes 291 8 (6 ) - - (120 ) - - - 173 (9 ) 4 Currency derivatives - 5 - - - - - - - 5 5 - Total liabilities $ 389 $ (16 ) $ 11 $ - $ - $ (168 ) $ - $ - $ - $ 216 $ (32 ) $ 22 (1) - Reported within the “Unrealized gains (losses) on available-for-sale (2) - Reported within the “Instrument-specific credit risk of liabilities measured at fair value” on MBIA’s Consolidated Statement of Comprehensive Income/Loss. In millions Balance, Total Unrealized (2) Purchases Issuances Settlements Sales Transfers Transfers Ending Change in Change in (2) Liabilities: Medium-term notes $ 110 $ (13 ) $ 5 $ - $ - $ - $ - $ - $ - $ 102 $ (13 ) $ 5 Other derivatives 49 - - - - (49 ) - - - - - - Liabilities of consolidated VIEs: VIE notes 303 44 (15 ) - - (35 ) (5 ) - - 292 23 4 Total liabilities $ 462 $ 31 $ (10 ) $ - $ - $ (84 ) $ (5 ) $ - $ - $ 394 $ 10 $ 9 (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. |
Gains And Losses (Realized And Unrealized) Included In Earnings Pertaining To Level 3 Assets And Liabilities | Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 In millions Total Gains in Earnings Change in Unrealized 2022 Total Gains in Earnings Change in Unrealized 2021 Revenues: Net gains (losses) on financial instruments at fair value and foreign exchange $ 8 $ 8 $ 4 $ 4 Revenues of consolidated VIEs: Net gains (losses) on financial instruments at fair value and foreign exchange (34 ) (1 ) 3 4 Total $ (26 ) $ 7 $ 7 $ 8 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 In millions Total Gains in Earnings Change in Unrealized 2022 Total Gains in Earnings Change in Unrealized 2021 Revenues: Net gains (losses) on financial instruments at fair value and foreign exchange $ 29 $ 28 $ 13 $ 13 Revenues of consolidated VIEs: Net gains (losses) on financial instruments at fair value and foreign exchange (12 ) (1 ) (13 ) 2 Total $ 17 $ 27 $ - $ 15 |
Changes In Fair Value Included In The Company's Consolidated Statements Of Operations | Three Months Ended September 30, Nine Months Ended September 30, In millions 2022 2021 2022 2021 Investments carried at fair value (1) $ (7 ) $ (1 ) $ (33 ) $ 5 Fixed-maturity securities held at fair value-VIE (2) (1 ) 1 (4 ) 3 Loans receivable at fair value: Residential mortgage loans (2) 13 (3 ) 8 31 Loan repurchase commitments (2) - - - (4 ) Other assets-VIE (2) - 2 2 1 Medium-term notes (1) 8 4 29 13 Variable interest entity notes (2) (35 ) 3 (12 ) (47 ) (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” |
Difference Between Aggregate Fair Value And The Aggregate Remaining Contractual Principal Balance Outstanding | As of September 30, 2022 As of December 31, 2021 In millions Contractual Fair Difference Contractual Fair Difference Loans receivable at fair value: Residential mortgage loans - current $ 39 $ 39 $ - $ 40 $ 40 $ - Residential mortgage loans (90 days or more past due) 144 40 104 141 37 104 Total loans receivable and other instruments at fair value $ 183 $ 79 $ 104 $ 181 $ 77 $ 104 Variable interest entity notes $ 771 $ 173 $ 598 $ 922 $ 291 $ 631 Medium-term notes $ 49 $ 38 $ 11 $ 108 $ 98 $ 10 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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Amortized Cost And Fair Value Of Available-For-Sale And Held-To-Maturity Investment Portfolios | The following tables present the amortized cost, allowance for credit losses, corresponding gross unrealized gains and losses and fair value for AFS investments in the Company’s consolidated investment portfolio as of September 30, 2022 and December 31, 2021: September 30, 2022 In millions Amortized Allowance Gross Gross Fair AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 749 $ - $ 6 $ (39 ) $ 716 State and municipal bonds 143 - 1 (12 ) 132 Foreign governments 23 - - (4 ) 19 Corporate obligations 872 - 1 (162 ) 711 Mortgage-backed securities: Residential mortgage-backed agency 207 - - (25 ) 182 Residential mortgage-backed non-agency 135 - 2 (19 ) 118 Commercial mortgage-backed 13 - - (1 ) 12 Asset-backed securities: Collateralized debt obligations 118 - - (7 ) 111 Other asset-backed 109 - - (4 ) 105 Total AFS investments $ 2,369 $ - $ 10 $ (273 ) $ 2,106 December 31, 2021 In millions Amortized Allowance Gross Gross Fair AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 782 $ - $ 54 $ (2 ) $ 834 State and municipal bonds 140 - 27 - 167 Foreign governments 13 - 1 - 14 Corporate obligations 905 - 53 (5 ) 953 Mortgage-backed securities: Residential mortgage-backed agency 190 - 3 (1 ) 192 Residential mortgage-backed non-agency 80 - 12 - 92 Commercial mortgage-backed 10 - - - 10 Asset-backed securities: Collateralized debt obligations 101 - - - 101 Other asset-backed 95 - - (1 ) 94 Total AFS investments $ 2,316 $ - $ 150 $ (9 ) $ 2,457 |
Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments | The following table presents the distribution by contractual maturity of AFS fixed-maturity securities at amortized cost, net of allowance for credit losses, and fair value as of September 30, 2022. 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 $ 379 $ 378 Due after one year through five years 294 278 Due after five years through ten years 342 292 Due after ten years 772 630 Mortgage-backed and asset-backed 582 528 Total fixed-maturity investments $ 2,369 $ 2,106 |
Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments | The following tables present the non-credit September 30, 2022 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 $ 307 $ (36 ) $ 14 $ (3 ) $ 321 $ (39 ) State and municipal bonds 95 (11 ) 1 (1 ) 96 (12 ) Foreign governments 18 (4 ) - - 18 (4 ) Corporate obligations 597 (134 ) 74 (28 ) 671 (162 ) Mortgage-backed securities: Residential mortgage-backed agency 127 (13 ) 55 (12 ) 182 (25 ) Residential mortgage-backed non-agency 102 (19 ) - - 102 (19 ) Commercial mortgage-backed 11 (1 ) 1 - 12 (1 ) Asset-backed securities: Collateralized debt obligations 67 (3 ) 43 (4 ) 110 (7 ) Other asset-backed 103 (4 ) 1 - 104 (4 ) Total AFS investments $ 1,427 $ (225 ) $ 189 $ (48 ) $ 1,616 $ (273 ) December 31, 2021 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 $ 161 $ (1 ) $ 16 $ (1 ) $ 177 $ (2 ) State and municipal bonds 11 - - - 11 - Foreign governments 3 - - - 3 - Corporate obligations 270 (5 ) 8 - 278 (5 ) Mortgage-backed securities: Residential mortgage-backed agency 94 (1 ) 1 - 95 (1 ) Residential mortgage-backed non-agency 3 - 1 - 4 - Commercial mortgage-backed 2 - - - 2 - Asset-backed securities: Collateralized debt obligations 60 - 29 - 89 - Other asset-backed 72 (1 ) - - 72 (1 ) Total AFS investments $ 676 $ (8 ) $ 55 $ (1 ) $ 731 $ (9 ) |
Distribution Of Securities By Percentage Of Fair Value Below Book Value By More Than 5% | The following table presents the distribution of securities in an unrealized loss position for a continuous twelve-month period or longer where fair value was below book value by more than 5% as of September 30, 2022: AFS Securities Percentage of Fair Value Below Book Value Number of Book Value (in millions) Fair Value > 5% to 15% 34 $ 80 $ 72 > 15% to 25% 45 71 56 > 25% to 50% 53 73 49 > 50% 3 - - Total 135 $ 224 $ 177 |
Summary of Allowance for Credit Losses on AFS Investments | The following tables present the rollforward of allowance for credit losses on AFS investments for the three and nine months ended September 30, 2022: Three Months Ended September 30, 2022 In millions Balance Additions Additions Reductions Reductions- to sell or MLTN Change in Write Recoveries Balance as of AFS Investments Fixed-maturity investments: Corporate obligations $ 3 $ - $ - $ - $ 3 $ - $ - $ - $ - Total Allowance on AFS investments $ 3 $ - $ - $ - $ 3 $ - $ - $ - $ - Nine Months Ended September 30, 2022 In millions Balance as of Additions Additions Reductions Reductions- to sell or MLTN Change in Write Recoveries Balance as of AFS Investments Fixed-maturity investments: Corporate obligations $ - $ 3 $ - $ - $ 3 $ - $ - $ - $ - Total Allowance on AFS investments $ - $ 3 $ - $ - $ 3 $ - $ - $ - $ - |
Securities Held In Unrealized Loss Position And Insured By Financial Guarantor and The Related Insurance Loss Reserve On Company Insured Investments | The following table provides information about securities held by the Company as of September 30, 2022 that were in an unrealized loss position and insured by a financial guarantor, along with the amount of insurance loss reserves corresponding to the par amount owned by the Company. The Company did not hold any securities in an unrealized loss position that were insured by a third-party financial guarantor as of September 30, 2022. In millions Fair Unrealized Insurance (1) Mortgage-backed $ 93 $ (17) $ 111 Corporate obligations 74 (31) - Other 6 - - Total $ 173 $ (48) $ 111 (1) - Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured and are discounted using a discount rate equal to the risk-free rate applicable to the currency and weighted average remaining life of the insurance contract and may differ from the fair value. |
Gross Realized Gains and Losses From Sales Of Available-For-Sale Securities | The proceeds and the gross realized gains and losses from sales of fixed-maturity securities held as AFS for the three and nine months ended September 30, 2022 and 2021 are as follows: Three Months Ended September 30, Nine Months Ended September 30, In millions 2022 2021 2022 2021 Proceeds from sales $ 339 $ 73 $ 859 $ 469 Gross realized gains $ 2 $ 1 $ 3 $ 7 Gross realized losses $ (17 ) $ - $ (42 ) $ (8 ) |
Portion Of Unrealized Gains Losses Recognized On Equity Investments | In millions Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net gains (losses) recognized during the period on equity and trading securities $ (3 ) $ - $ (31 ) $ 5 Less: Net gains (losses) recognized during the period on equity and trading securities sold during the period (6 ) 1 (6 ) 1 Unrealized gains (losses) recognized during the period on equity and trading securities still held at the reporting date $ 3 $ (1 ) $ (25 ) $ 4 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Text Block [Abstract] | |
Credit Derivatives Sold | $ in millions As of September 30, 2022 Credit Derivatives Sold Weighted AAA AA A BBB Below Total Fair Value Insured swaps 13.9 Years $ - $ 53 $ 1,022 $ 232 $ 60 $ 1,367 $ - Total fair value $ - $ - $ - $ - $ - $ - $ in millions As of December 31, 2021 Credit Derivatives Sold Weighted AAA AA A BBB Below Total Fair Insured swaps 14.1 Years $ - $ 61 $ 1,136 $ 292 $ - $ 1,489 $ (1 ) Total fair value $ - $ - $ (1 ) $ - $ - $ (1 ) |
Total Fair Value Of Company's Derivative Assets And Liabilities By Instrument And Balance Sheet Location, Before Counterparty Netting | The following tables present the total fair value of the Company’s derivative assets and liabilities by instrument and balance sheet location, before counterparty netting, as of September 30, 2022 and December 31, 2021: September 30, 2022 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 $ 1,367 Other assets $ - Derivative liabilities $ - Interest rate swaps 375 Other assets - Derivative liabilities (49 ) Interest rate swaps-embedded 178 Medium-term notes - Medium-term notes (1 ) Currency swaps-VIE 38 Other assets-VIE - Derivative liabilities-VIE (5 ) Total non-designated $ 1,958 $ - $ (55 ) (1) - In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Company’s embedded derivative instruments is determined by the location of the related host contract. December 31, 2021 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 $ 1,489 Other assets $ - Derivative liabilities $ (1 ) Interest rate swaps 399 Other assets 1 Derivative liabilities (130 ) Interest rate swaps-embedded 206 Medium-term notes - Medium-term notes (9 ) Currency swaps-VIE 50 Other assets-VIE 9 Derivative liabilities-VIE - Total non-designated $ 2,144 $ 10 $ (140 ) (1) - In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Company’s embedded derivative instruments is determined by the location of the related host contract. |
Effect Of Derivative Instruments On Consolidated Statements Of Operations | The following table presents the effect of derivative instruments on the consolidated statements of operations for the three months ended September 30, 2022 and 2021: In millions Derivatives Not Designated as Three Months Ended September 30, Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2022 2021 Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange $ 23 $ 5 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE (14 ) 1 Total $ 9 $ 6 The following table presents the effect of derivative instruments on the consolidated statements of operations for the nine months ended September 30, 2022 and 2021: In millions Derivatives Not Designated as Hedging Instruments Nine Months Ended Location of Gain (Loss) Recognized in Income on Derivative 2022 2021 Insured swaps Net gains (losses) on financial instruments at fair value and foreign exchange $ 1 $ - Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange 79 22 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE (14 ) 3 Total $ 66 $ 25 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income tax rate reconciliation from statutory to effective tax rate | The Company’s income taxes and the related effective tax rates for the three and nine months ended September 30, 2022 and 2021 are as follows: Three Months Ended September 30, Nine Months Ended September 30, In millions 2022 2021 2022 2021 Income (loss) from continuing operations $ (35 ) $ (123 ) $ (144 ) $ (290 ) Provision (benefit) for income taxes $ - $ - $ - $ - Effective tax rate 0.0% 0.0% 0.0% 0.0% |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Text Block [Abstract] | |
Summary of company's segment results | The following tables provide the Company’s segment results for the three months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 U.S. International and Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 17 $ (3 ) $ 9 $ - $ 23 Net gains (losses) on financial instruments at fair value and foreign exchange (6 ) 35 (4 ) - 25 Revenues of consolidated VIEs - - (31 ) - (31 ) Inter-segment revenues (2) 6 12 2 (20 ) - Total revenues 17 44 (24 ) (20 ) 17 Losses and loss adjustment 16 - (28 ) - (12 ) Amortization of deferred acquisition costs and operating 2 12 2 - 16 Interest - 14 32 - 46 Expenses of consolidated VIEs - - 2 - 2 Inter-segment expenses (2) 10 5 6 (21 ) - Total expenses 28 31 14 (21 ) 52 Income (loss) from continuing operations before income taxes $ (11 ) $ 13 $ (38 ) $ 1 $ (35 ) Identifiable assets per segment $ 3,061 $ 622 $ 1,708 $ (1,508 ) (3) $ 3,883 Assets held for sale - - - - 132 Total identifiable assets $ 3,061 $ 622 $ 1,708 $ (1,508 ) $ 4,015 (1) - Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). (2) - Primarily represents intercompany service charges and intercompany net investment income and expenses. (3) - Consists principally of intercompany reinsurance balances. Three Months Ended September 30, 2021 U.S. International and Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 21 $ 7 $ 24 $ - $ 52 Net gains (losses) on financial instruments at fair value and foreign exchange - 12 (3 ) - 9 Net gains (losses) on extinguishment of debt - 16 - - 16 Revenues of consolidated VIEs - - (5 ) - (5 ) Inter-segment revenues (2) 8 14 2 (24 ) - Total revenues 29 49 18 (24 ) 72 Losses and loss adjustment 68 - 57 - 125 Amortization of deferred acquisition costs and operating 6 16 1 - 23 Interest - 14 26 - 40 Expenses of consolidated VIEs - - 7 - 7 Inter-segment expenses (2) 11 4 9 (24 ) - Total expenses 85 34 100 (24 ) 195 Income (loss) from continuing operations before income taxes $ (56 ) $ 15 $ (82 ) $ - $ (123 ) (1) - Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). (2) - Primarily represents intercompany service charges and intercompany net investment income and expenses. The following tables provide the Company’s segment results for the nine months ended September 30, 2022 and 2021: Nine Months Ended September 30, 2022 U.S. International and Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 24 $ 3 $ 26 $ - $ 53 Net gains (losses) on financial instruments at fair value and foreign exchange (43 ) 111 (17 ) - 51 Net gains (losses) on extinguishment of debt - 5 - (1 ) 4 Revenues of consolidated VIEs - - (11 ) - (11 ) Inter-segment revenues (2) 20 43 7 (70 ) - Total revenues 1 162 5 (71 ) 97 Losses and loss adjustment 152 - (95 ) - 57 Amortization of deferred acquisition costs and operating 6 35 8 - 49 Interest - 42 88 - 130 Expenses of consolidated VIEs - - 5 - 5 Inter-segment expenses (2) 33 17 20 (70 ) - Total expenses 191 94 26 (70 ) 241 Income (loss) from continuing operations before income taxes $ (190 ) $ 68 $ (21 ) $ (1 ) $ (144 ) Identifiable assets per segment $ 3,061 $ 622 $ 1,708 $ (1,508 ) (3) $ 3,883 Assets held for sale - - - - 132 Total identifiable assets $ 3,061 $ 622 $ 1,708 $ (1,508 ) $ 4,015 (1) - Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). (2) - Primarily represents intercompany service charges and intercompany net investment income and expenses. (3) - Consists principally of intercompany reinsurance balances. Nine Months Ended September 30, 2021 U.S. International and Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 65 $ 13 $ 37 $ - $ 115 Net gains (losses) on financial instruments at fair value and foreign exchange - 50 (9 ) - 41 Net gains (losses) on extinguishment of debt - 30 - - 30 Revenues of consolidated VIEs - - (24 ) - (24 ) Inter-segment revenues (2) 22 50 10 (82 ) - Total revenues 87 143 14 (82 ) 162 Losses and loss adjustment 135 - 97 - 232 Amortization of deferred acquisition costs and operating 14 54 7 - 75 Interest - 42 80 - 122 Expenses of consolidated VIEs - - 23 - 23 Inter-segment expenses (2) 36 14 30 (80 ) - Total expenses 185 110 237 (80 ) 452 Income (loss) from continuing operations before income taxes $ (98 ) $ 33 $ (223 ) $ (2 ) $ (290 ) (1) - Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). (2) - Primarily represents intercompany service charges and intercompany net investment income and expenses. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Text Block [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Nine Months Ended In millions except per share amounts 2022 2021 2022 2021 Basic earnings per share: Net income (loss) from continuing operations $ (35 ) $ (123 ) $ (144 ) $ (290 ) Less: undistributed earnings allocated to participating securities - - - - Net income (loss) from continuing operations available to common shareholders (35 ) (123 ) (144 ) (290 ) Net income (loss) from discontinued operations 1 - 1 - Net income (loss) $ (34 ) $ (123 ) $ (143 ) $ (290 ) Basic weighted average shares (1) 49.9 49.6 49.8 49.4 Continuing operations $ (0.68 ) $ (2.49 ) $ (2.88 ) $ (5.87 ) Discontinued operations 0.01 - 0.01 - Net income (loss) per share - basic $ (0.67 ) $ (2.49 ) $ (2.87 ) $ (5.87 ) Diluted earnings per share: Net income (loss) from continuing operations $ (35 ) $ (123 ) $ (144 ) $ (290 ) Less: undistributed earnings allocated to participating securities - - - - Net income (loss) from continuing operations available to (35 ) (123 ) (144 ) (290 ) Net income (loss) from discontinued operations 1 - 1 - Net income (loss) $ (34 ) $ (123 ) $ (143 ) $ (290 ) Diluted weighted average shares 49.9 49.6 49.8 49.4 Continuing operations $ (0.68 ) $ (2.49 ) $ (2.88 ) $ (5.87 ) Discontinued operations 0.01 - 0.01 - Net income (loss) per share -diluted $ (0.67 ) $ (2.49 ) $ (2.87 ) $ (5.87 ) Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect 5.0 4.9 5.0 4.9 (1) - Includes 0.8 million and 0.9 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for each of the three months and nine months ended September 30, 2022 and 2021, respectively. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Text Block [Abstract] | |
Changes In The Components Of AOCI | The following table presents the changes in the components of AOCI for the nine months ended September 30, 2022: In millions Unrealized Foreign Instrument- Total Balance, December 31, 2021 $ 138 $ (6 ) $ (32 ) $ 100 Other comprehensive income (loss) before reclassifications (399 ) 1 (22 ) (420 ) Amounts reclassified from AOCI (5 ) - 11 6 Net period other comprehensive income (loss) (404 ) 1 (11 ) (414 ) Balance, September 30, 2022 $ (266 ) $ (5 ) $ (43 ) $ (314 ) |
Reclassifications From AOCI | The following table presents the details of the reclassifications from AOCI for the three and nine months ended September 30, 2022 and 2021: In millions Amounts Reclassified from AOCI Three Months Ended September 30, Nine Months Ended September 30, Details about AOCI Components 2022 2021 2022 2021 Affected Line Item on the Consolidated Statements of Operations Unrealized gains (losses) on AFS securities: Realized gains (losses) on sale of securities $ 3 $ 3 $ 5 $ 11 Net realized investment gains (losses) Total unrealized gains (losses) on AFS securities 3 3 5 11 Instrument-specific credit risk of liabilities: Settlement of liabilities (23 ) (12 ) (11 ) (36 ) Net gains (losses) on financial instruments at fair value and foreign exchange - VIE Total reclassifications for the period $ (20 ) $ (9 ) $ (6 ) $ (25 ) Net income (loss) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Text Block [Abstract] | |
Operating Leases Of Lessee Disclosure | $ in millions As of Balance Sheet Location Right-of-use $ 17 Other assets Lease liability $ 17 Other liabilities Weighted average remaining lease term (years) 7.1 Discount rate used for operating leases 7.5% Total future minimum lease payments $ 24 |
Business Developments And Ris_3
Business Developments And Risks And Uncertainties (Narrative) (Detail) $ in Millions | 9 Months Ended | |||||
Jul. 01, 2022 USD ($) | Mar. 15, 2022 USD ($) | Jan. 01, 2022 USD ($) | Sep. 30, 2022 USD ($) segments | Nov. 30, 2022 USD ($) | Jul. 08, 2022 USD ($) | |
Business Acquisition [Line Items] | ||||||
Number of operating segments | segments | 3 | |||||
Gain loss on assets and liabilities reclassified as held for sale | $ 0 | |||||
GO PSA [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from GO PSA | $ 1,000 | |||||
National Public Finance Guarantee Corporation [Member] | GO PSA [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Conditional value instrument additional recoveries from the percentage of sales and usage tax receipts | 5.50% | |||||
Acceleration and commutation payment | $ 277 | |||||
National Public Finance Guarantee Corporation [Member] | Puerto Rico Highway and Transportation Authority [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 33 | |||||
Contingent value instrument | $ 358 | |||||
Subsequent Event [Member] | National Public Finance Guarantee Corporation [Member] | Puerto Rico Highway and Transportation Authority [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 45 | |||||
Contingent value instrument | $ 133 | |||||
Maximum [Member] | National Public Finance Guarantee Corporation [Member] | GO and PBA [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Outstanding bonds | 0 | |||||
Maximum [Member] | GO And PBA Bonds [Member] | National Public Finance Guarantee Corporation [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Gross par outstanding | 0 | |||||
Minimum [Member] | National Public Finance Guarantee Corporation [Member] | GO and PBA [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Outstanding bonds | 495 | |||||
Gross par outstanding | 380 | |||||
Puerto Rico [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Claims payments | $ 47 | |||||
Outstanding bonds | $ 2,000 | |||||
Puerto Rico [Member] | National Public Finance Guarantee Corporation [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Claims payments | $ 142 |
Business Developments and Ris_4
Business Developments and Risks and Uncertainties (Schedule of Discontinued Operations Components of Assets and Liabilities Held for Sale) (Detail) $ in Millions | Sep. 30, 2022 USD ($) |
Assets held for sale | |
Cash | $ 13 |
Accounts receivable | 23 |
Goodwill | 90 |
Other assets | 6 |
Total assets held for sale | 132 |
Liabilities held for sale | |
Accounts payable | 11 |
Debt | 29 |
Accrued expenses and other liabilities | 19 |
Total liabilities held for sale | $ 59 |
Business Developments and Ris_5
Business Developments and Risks and Uncertainties (Schedule of Results of Operations from Discontinued Operation) (Detail) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | |||||
Revenues | $ 23 | ||||
Cost of sales | 11 | ||||
Total revenues from discontinued operations | 12 | ||||
Expenses | |||||
Operating | 11 | ||||
Total expenses from discontinued operations | 11 | ||||
Income (loss) before income taxes from discontinued operations | 1 | ||||
Provision (benefit) for income taxes from discontinued operations | 0 | ||||
Net income (loss) from discontinued operations | $ 1 | $ 1 | $ 0 | $ 1 | $ 0 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Detail) $ in Millions | 3 Months Ended | |||||
Sep. 30, 2022 USD ($) | Mar. 31, 2022 | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 | Dec. 31, 2021 USD ($) | |
Variable Interest Entity [Line Items] | ||||||
Carrying amounts of assets | $ 4,015 | $ 4,696 | ||||
Carrying amounts of liabilities | 4,864 | 4,996 | ||||
Variable Interest Entity Primary Beneficiary [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Gains (losses) on the consolidation and deconsolidation | 0 | |||||
Variable Interest Entity Primary Beneficiary [Member] | Structured Finance and International Insurance [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Carrying amounts of assets | 153 | 169 | ||||
Carrying amounts of liabilities | $ 180 | $ 291 | ||||
Number of variable interest entities consolidated | 1 | 1 | 2 | |||
Number of variable interest entities deconsolidated | 1 | 0 | 0 | |||
Variable Interest Entity Primary Beneficiary [Member] | Structured Finance and International Insurance [Member] | Recorded Due To Credit Losses in AOCI [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Net realized gains (losses) related to deconsolidation | $ (10) | $ (5) |
Variable Interest Entities (Sum
Variable Interest Entities (Summary of Nonconsolidated VIEs Assets and Liabilities) (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | $ 2,527 | $ 2,824 |
Carrying Value of VIE Assets | 4,015 | 4,696 |
Carrying Value of VIE Liabilities | 4,864 | 4,996 |
Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 110 | 87 |
Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 21 | 24 |
Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 31 | 241 |
Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 18 | 21 |
Loss And Loss Adjustment Expense Reserves Member [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 344 | 447 |
Global Structured Finance [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 1,805 | 1,990 |
Global Structured Finance [Member] | Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 110 | 87 |
Global Structured Finance [Member] | Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 16 | 18 |
Global Structured Finance [Member] | Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 31 | 241 |
Global Structured Finance [Member] | Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 13 | 16 |
Global Structured Finance [Member] | Loss And Loss Adjustment Expense Reserves Member [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 344 | 447 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 1,165 | 1,261 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 110 | 87 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 13 | 14 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 24 | 40 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 10 | 11 |
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 | 338 | 430 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 177 | 226 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 0 | 0 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Premiums Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 0 | 1 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 0 | 1 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 0 | 1 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Loss And Loss Adjustment Expense Reserves Member [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 5 | 6 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 463 | 503 |
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 | 3 | 3 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Insurance Loss Recoverable [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Assets | 7 | 200 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Unearned Premium Revenue [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | 3 | 4 |
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 | 1 | 11 |
Global Public Finance [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 722 | 834 |
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 | 5 | 6 |
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 | 5 | 5 |
Global Public Finance [Member] | Loss And Loss Adjustment Expense Reserves Member [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value of VIE Liabilities | $ 0 | $ 0 |
Loss And Loss Adjustment Expe_3
Loss And Loss Adjustment Expense Reserves (Loss And LAE Activity) (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Loss And Loss Adjustment Expense Reserves [Line Items] | |||||
Weighted average risk-free rate used to discount claim liability | 3.90% | ||||
Percentage of voters voted by the deadline | 27% | ||||
Lae [Member] | |||||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||||
Losses and loss adjustment | $ 1 | $ 4 | $ 4 | $ 17 | |
Loss and loss adjustment expense reserves | $ 18 | $ 18 | $ 38 | ||
Changes in Loss and LAE Reserves | one-year |
Loss and Loss Adjustment Expe_4
Loss and Loss Adjustment Expense Reserves (Schedule of Losses and Loss Adjustment Expenses Reserves and Recoveries) (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |||
Loss And Lae Reserves [Member] | |||||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||||
Loss and loss adjustment expense reserves | [1] | $ 1,047 | [2] | $ 894 | [3] |
Insurance Loss Recoverable [Member] | |||||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||||
Insurance Loss Recoverable | 273 | 1,296 | |||
Non Variable Interest Entity [Member] | |||||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||||
Insurance Loss Recoverable | 273 | 1,296 | |||
Loss and loss adjustment expense reserves | 1,047 | 894 | |||
US Public Finance Insurance [Member] | |||||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||||
Insurance Loss Recoverable | 242 | 1,054 | |||
Loss and loss adjustment expense reserves | [1] | 688 | 425 | ||
International And Structured Finance Insurance [Member] | |||||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||||
Insurance Loss Recoverable | 33 | 244 | |||
Loss and loss adjustment expense reserves | [1] | 568 | 687 | ||
International And Structured Finance Insurance [Member] | Non Variable Interest Entity [Member] | |||||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||||
Insurance Loss Recoverable | 31 | 242 | |||
Loss and loss adjustment expense reserves | [1] | 359 | 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 | (2) | (2) | |||
Loss and loss adjustment expense reserves | [1] | $ (209) | $ (218) | ||
[1]Amounts are net of estimated recoveries of expected future claims.[2]Includes changes in amount and timing of estimated payments and recoveries.[3]Amount is net of recoveries received on claims not yet paid. |
Loss and Loss Adjustment Expe_5
Loss and Loss Adjustment Expense Reserves (Schedule of Loss and Loss Adjustment Expenses Reserves) (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Changes in unearned premium revenue | $ 35 | $ 72 | |
Loss And Lae Reserves [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Gross loss and LAE reserve, beginning balance | [1],[2] | 894 | |
Loss and Payments | [1] | (332) | |
Accretion of claim liability discount | 15 | ||
Changes in discount rates | (88) | ||
Changes in assumptions | 555 | ||
Changes in unearned premium revenue | 3 | ||
Gross loss and LAE reserve, ending balance | [2],[3] | $ 1,047 | |
[1]Amount is net of recoveries received on claims not yet paid.[2]Amounts are net of estimated recoveries of expected future claims.[3]Includes changes in amount and timing of estimated payments and recoveries. |
Loss and Loss Adjustment Expe_6
Loss and Loss Adjustment Expense Reserves (Schedule of Insurance Loss Recoverable) (Detail) - Insurance Loss Recoverable [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Roll forward of Insurance Loss Recoverable [Line Items] | |
Gross Reserve beginning balance, Insurance loss recoverable | $ 1,296 |
Collections for Cases | (1,438) |
Accretion of Recoveries | 5 |
Changes in Discount Rates | (22) |
Changes in Assumptions | 432 |
Gross Reserve ending balance, Insurance loss recoverable | $ 273 |
Loss And Loss Adjustment Expe_7
Loss And Loss Adjustment Expense Reserves (Schedule Of Financial Guarantees And Related Claim Liability) (Detail) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 USD ($) issue policy | Dec. 31, 2021 USD ($) issue policy | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Number of policies | policy | 226 | 260 | |
Number of issues | issue | [1] | 105 | 106 |
Remaining weighted average contract period (in years) | 7 years 3 months 18 days | 7 years 4 months 24 days | |
Principal | [2] | $ 3,971 | $ 4,091 |
Interest | [2] | 2,989 | 3,082 |
Total | [2] | 6,960 | 7,173 |
Gross claim liability | [3] | 1,338 | 1,051 |
Less: Gross potential recoveries | [4] | 335 | 1,498 |
Discount, net | [5] | 224 | (32) |
Net claim liability (recoverable) | 779 | (415) | |
Unearned premium revenue | 35 | 37 | |
Reinsurance recoverable on paid and unpaid losses | [6] | $ 16 | $ 7 |
Caution List Low [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Number of policies | policy | 58 | 55 | |
Number of issues | issue | [1] | 18 | 16 |
Remaining weighted average contract period (in years) | 5 years 8 months 12 days | 6 years 1 month 6 days | |
Principal | [2] | $ 1,800 | $ 1,366 |
Interest | [2] | 1,997 | 1,867 |
Total | [2] | 3,797 | 3,233 |
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 | $ 12 | $ 8 | |
Caution List Medium [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Number of policies | policy | 3 | 3 | |
Number of issues | issue | [1] | 2 | 2 |
Remaining weighted average contract period (in years) | 1 year 10 months 24 days | 2 years 7 months 6 days | |
Principal | [2] | $ 5 | $ 6 |
Interest | [2] | 1 | 1 |
Total | [2] | 6 | 7 |
Gross claim liability | [3] | 0 | 0 |
Less: Gross potential recoveries | [4] | 0 | 0 |
Discount, net | [5] | 0 | 0 |
Net claim liability (recoverable) | 0 | 0 | |
Unearned premium revenue | $ 0 | $ 0 | |
Caution List High [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Number of policies | policy | 0 | 0 | |
Number of issues | issue | [1] | 0 | 0 |
Remaining weighted average contract period (in years) | 0 years | 0 years | |
Principal | [2] | $ 0 | $ 0 |
Interest | [2] | 0 | 0 |
Total | [2] | 0 | 0 |
Gross claim liability | [3] | 0 | 0 |
Less: Gross potential recoveries | [4] | 0 | 0 |
Discount, net | [5] | 0 | 0 |
Net claim liability (recoverable) | 0 | 0 | |
Unearned premium revenue | $ 0 | $ 0 | |
Classified List [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Number of policies | policy | 165 | 202 | |
Number of issues | issue | [1] | 85 | 88 |
Remaining weighted average contract period (in years) | 8 years 7 months 6 days | 8 years 1 month 6 days | |
Principal | [2] | $ 2,166 | $ 2,719 |
Interest | [2] | 991 | 1,214 |
Total | [2] | 3,157 | 3,933 |
Gross claim liability | [3] | 1,338 | 1,051 |
Less: Gross potential recoveries | [4] | 335 | 1,498 |
Discount, net | [5] | 224 | (32) |
Net claim liability (recoverable) | 779 | (415) | |
Unearned premium revenue | $ 23 | $ 29 | |
[1]An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt.[2]Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.[3]The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position.[4]Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position.[5]Represents discount related to Gross Claim Liability and Gross Potential Recoveries.[6]Included in “Other assets” on the Company’s consolidated balance sheets. |
Fair Value Of Financial Instr_3
Fair Value Of Financial Instruments (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
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 | 7% | 7% | 3% | ||
Percentage of level 3 liabilities at fair value in total liabilities measured at fair value | 82% | 82% | 75% | ||
Cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option | $ (314) | $ (314) | $ 100 | ||
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 | (43) | (43) | $ (32) | ||
Loss on instrument-specific credit risk recognized in earnings | $ (23) | $ (12) | $ (11) | $ (36) |
Fair Value Of Financial Instr_4
Fair Value Of Financial Instruments (Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
EBITDA Multiples and Discounted Cash Flow [Member] | Equity Investments [Member] | Multiples and Discount Rate [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Fair Value, assets | [1] | $ 101 | |
Variable Interest Entity Primary Beneficiary [Member] | Variable Interest Entity Notes [Member] | Impact Of Financial Guarantee [Member] | Market Prices Of VIE Assets Adjusted For Financial Guarantees Provided Or Market Prices Of Similar Liabilities [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Fair value, liabilities | [2] | 173 | $ 291 |
Variable Interest Entity Primary Beneficiary [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices of Similar Liabilities Adjusted for Financial Guarantees Provided to VIE Obligations [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Fair Value, assets | [2] | $ 79 | $ 77 |
Variable Interest Entity Primary Beneficiary [Member] | Minimum [Member] | Variable Interest Entity Notes [Member] | Impact Of Financial Guarantee [Member] | Market Prices Of VIE Assets Adjusted For Financial Guarantees Provided Or Market Prices Of Similar Liabilities [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Range percentage | [2] | 40% | 33% |
Variable Interest Entity Primary Beneficiary [Member] | Minimum [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices of Similar Liabilities Adjusted for Financial Guarantees Provided to VIE Obligations [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Range percentage | [2] | 8% | 23% |
Variable Interest Entity Primary Beneficiary [Member] | Maximum [Member] | Variable Interest Entity Notes [Member] | Impact Of Financial Guarantee [Member] | Market Prices Of VIE Assets Adjusted For Financial Guarantees Provided Or Market Prices Of Similar Liabilities [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Range percentage | [2] | 79% | 73% |
Variable Interest Entity Primary Beneficiary [Member] | Maximum [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices of Similar Liabilities Adjusted for Financial Guarantees Provided to VIE Obligations [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Range percentage | [2] | 84% | 72% |
Variable Interest Entity Primary Beneficiary [Member] | Weighted Average [Member] | Variable Interest Entity Notes [Member] | Impact Of Financial Guarantee [Member] | Market Prices Of VIE Assets Adjusted For Financial Guarantees Provided Or Market Prices Of Similar Liabilities [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Range percentage | [2] | 68% | 59% |
Variable Interest Entity Primary Beneficiary [Member] | Weighted Average [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices of Similar Liabilities Adjusted for Financial Guarantees Provided to VIE Obligations [Member] | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Range percentage | [2] | 47% | 55% |
[1]Range for multiples and discount rates reflects the potential variability in multiples and in discount rates.[2]Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. |
Fair Value Of Financial Instr_5
Fair Value Of Financial Instruments (Company's Assets And Liabilities Measured At Fair Value On Recurring Basis) (Detail) - Fair Value Measurements Recurring [Member] - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | $ 3,327 | $ 3,114 |
Fair value financial liabilities measured on recurring basis | 265 | 520 |
Money Market Securities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 459 | 78 |
Medium-term Notes [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 38 | 98 |
Equity investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 155 | 70 |
Cash and Cash Equivalents [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 102 | 151 |
Fixed Maturities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 2,458 | 2,645 |
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 | 729 | 845 |
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 | 312 | 168 |
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 | 20 | 17 |
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 | 788 | 1,050 |
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 | 191 | 198 |
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 | 123 | 98 |
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 | 13 | 13 |
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 | 159 | 150 |
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 | 123 | 106 |
Derivative Assets [Member] | Interest rate derivatives [Member] | Non-insured interest rate derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 1 | |
Assets Of Consolidated V I Es [Member] | Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 4 | 5 |
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 | 22 | 27 |
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 | 10 | 10 |
Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 6 | 10 |
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 | 79 | 77 |
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 | 9 | |
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 | 9 |
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 | 16 | 14 |
Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 1 | |
Derivative Liabilities [Member] | Interest rate derivatives [Member] | Non-insured interest rate derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 49 | 130 |
Liabilities Of Consolidated Vies [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 5 | |
Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 173 | 291 |
Fair Value Inputs Level 1 [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 1,248 | 1,035 |
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 | 459 | 78 |
Fair Value Inputs Level 1 [Member] | Medium-term Notes [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Equity investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 35 | 47 |
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 | 102 | 151 |
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 643 | 750 |
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 | 643 | 750 |
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 interest rate derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | 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 | |
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 | 9 |
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Other [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | |
Fair Value Inputs Level 1 [Member] | Derivative Liabilities [Member] | Interest rate derivatives [Member] | Non-insured interest rate derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Liabilities Of Consolidated Vies [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | |
Fair Value Inputs Level 1 [Member] | Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 2 [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 1,846 | 1,975 |
Fair value financial liabilities measured on recurring basis | 49 | 131 |
Fair Value Inputs Level 2 [Member] | Money Market Securities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Medium-term Notes [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Equity investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 19 | 23 |
Fair Value Inputs Level 2 [Member] | Cash and Cash Equivalents [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 1,778 | 1,895 |
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 | 86 | 95 |
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 | 312 | 168 |
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 | 20 | 17 |
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 | 788 | 1,050 |
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 | 191 | 198 |
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 | 86 | 98 |
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 | 13 | 13 |
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 | 159 | 150 |
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 | 123 | 106 |
Fair Value Inputs Level 2 [Member] | Derivative Assets [Member] | Interest rate derivatives [Member] | Non-insured interest rate derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 1 | |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 4 | 5 |
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 | 22 | 27 |
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 | 10 | 10 |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 6 | 6 |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Other Asset Backed [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 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 | |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Other [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 1 | |
Fair Value Inputs Level 2 [Member] | Derivative Liabilities [Member] | Interest rate derivatives [Member] | Non-insured interest rate derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 49 | 130 |
Fair Value Inputs Level 2 [Member] | Liabilities Of Consolidated Vies [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | |
Fair Value Inputs Level 2 [Member] | Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 233 | 104 |
Fair value financial liabilities measured on recurring basis | 216 | 389 |
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 | 38 | 98 |
Fair Value Inputs Level 3 [Member] | Equity investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 101 | 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 Maturities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 37 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | U S Treasury And Government [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 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 | 37 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Other Asset Backed [Member] | Asset-backed [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Derivative Assets [Member] | Interest rate derivatives [Member] | Non-insured interest rate derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial assets measured on recurring basis | 0 | |
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | 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 | 4 |
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 | 79 | 77 |
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 | 9 | |
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 | 16 | 14 |
Fair Value Inputs Level 3 [Member] | Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | |
Fair Value Inputs Level 3 [Member] | Derivative Liabilities [Member] | Interest rate derivatives [Member] | Non-insured interest rate derivatives [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Liabilities Of Consolidated Vies [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | 5 | |
Fair Value Inputs Level 3 [Member] | Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value financial liabilities measured on recurring basis | $ 173 | $ 291 |
Fair Value Of Financial Instr_6
Fair Value Of Financial Instruments (Fair Value Hierarchy Table Presents The Company's Assets And Liabilities At Fair Value Not Recorded On The Company's Consolidated Balance Sheet) (Detail) - Value Disclosed At Fair Value Not Recorded At Fair Value [Member] - Fair Value Measurements Nonrecurring [Member] - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Carrying Reported Amount Fair Value Disclosure [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Long-term debt | $ 2,393 | $ 2,331 |
Medium-term notes | 446 | 490 |
Investment agreements | 273 | 274 |
Variable interest entity loans payable | 2 | |
Total liabilities | 3,114 | 3,095 |
Gross liability (recoverable) | 1,061 | (80) |
Ceded recoverable (liability) | 16 | (42) |
Fair Value [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Long-term debt | 361 | 433 |
Medium-term notes | 296 | 322 |
Investment agreements | 298 | 355 |
Variable interest entity loans payable | 2 | |
Total liabilities | 957 | 1,110 |
Gross liability (recoverable) | 1,240 | 848 |
Ceded recoverable (liability) | 29 | 30 |
Fair Value [Member] | Fair Value Inputs Level 1 [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Long-term debt | 0 | 0 |
Medium-term notes | 0 | 0 |
Investment agreements | 0 | 0 |
Variable interest entity loans payable | 0 | |
Total liabilities | 0 | 0 |
Gross liability (recoverable) | 0 | 0 |
Ceded recoverable (liability) | 0 | 0 |
Fair Value [Member] | Fair Value Inputs Level 2 [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Long-term debt | 361 | 433 |
Medium-term notes | 0 | 0 |
Investment agreements | 0 | 0 |
Variable interest entity loans payable | 0 | |
Total liabilities | 361 | 433 |
Gross liability (recoverable) | 0 | 0 |
Ceded recoverable (liability) | 0 | 0 |
Fair Value [Member] | Fair Value Inputs Level 3 [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Long-term debt | 0 | 0 |
Medium-term notes | 296 | 322 |
Investment agreements | 298 | 355 |
Variable interest entity loans payable | 2 | |
Total liabilities | 596 | 677 |
Gross liability (recoverable) | 1,240 | 848 |
Ceded recoverable (liability) | $ 29 | $ 30 |
Fair Value Of Financial Instr_7
Fair Value Of Financial Instruments (Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - Fair Value Inputs Level 3 [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Beginning balance, fair value assets | $ 148 | $ 150 | $ 104 | $ 744 | ||||
Total gains/(losses) included in earnings, assets | 4 | 0 | 1 | 31 | ||||
Unrealized gains/(losses) included in OCI, assets | (2) | [1] | 0 | [1] | (6) | [1] | 0 | |
Purchases, assets | 102 | 0 | 161 | 0 | ||||
Issuances, assets | 0 | 0 | 0 | 0 | ||||
Settlements, assets | (2) | (2) | (10) | (613) | ||||
Sales, assets | (17) | (47) | (17) | (61) | ||||
Transfers into level 3, assets | 0 | 4 | 0 | 4 | ||||
Transfers out of level 3, assets | 0 | 0 | 0 | 0 | ||||
Ending balance, fair value assets | 233 | 105 | 233 | 105 | ||||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 2 | (1) | (5) | 25 | ||||
Change in unrealized gains/(losses) for the period included in OCI for Liabilities still held | (3) | [1] | 0 | [1] | 0 | [1] | 0 | |
Beginning balance, fair value liabilities | 259 | 395 | 389 | 462 | ||||
Total (gains)/losses included in earnings, liabilities | 30 | (7) | (16) | 31 | ||||
Unrealized (gains)/losses included in OCI, liabilities | (21) | [2] | 10 | [2] | 11 | (10) | ||
Purchases, liabilities | 0 | 0 | 0 | 0 | ||||
Issuances, liabilities | 0 | 0 | 0 | 0 | ||||
Settlements, liabilities | (52) | (4) | (168) | (84) | ||||
Sales, liabilities | 0 | 0 | 0 | (5) | ||||
Transfers into Level 3, liabilities | 0 | 0 | 0 | 0 | ||||
Transfers out of Level 3, liabilities | 0 | 0 | 0 | 0 | ||||
Ending balance, fair value liabilities | 216 | 394 | 216 | 394 | ||||
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | (5) | (9) | (32) | 10 | ||||
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held | 5 | 10 | [2] | 22 | 9 | |||
Residential Prime Financing Receivable [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Beginning balance, fair value assets | 68 | 129 | 77 | 120 | ||||
Total gains/(losses) included in earnings, assets | 13 | (3) | 8 | 31 | ||||
Unrealized gains/(losses) included in OCI, assets | 0 | [1] | 0 | [1] | 0 | [1] | 0 | |
Purchases, assets | 0 | 0 | 0 | 0 | ||||
Issuances, assets | 0 | 0 | 0 | 0 | ||||
Settlements, assets | (2) | (2) | (6) | (13) | ||||
Sales, assets | 0 | (47) | 0 | (61) | ||||
Transfers into level 3, assets | 0 | 0 | 0 | 0 | ||||
Transfers out of level 3, assets | 0 | 0 | 0 | 0 | ||||
Ending balance, fair value assets | 79 | 77 | 79 | 77 | ||||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 11 | (4) | 2 | 21 | ||||
Change in unrealized gains/(losses) for the period included in OCI for Liabilities still held | 0 | [1] | 0 | [1] | 0 | [1] | 0 | |
Loan Repurchase Commitments [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Beginning balance, fair value assets | 604 | |||||||
Total gains/(losses) included in earnings, assets | (4) | |||||||
Unrealized gains/(losses) included in OCI, assets | 0 | |||||||
Purchases, assets | 0 | |||||||
Issuances, assets | 0 | |||||||
Settlements, assets | (600) | |||||||
Sales, assets | 0 | |||||||
Transfers into level 3, assets | 0 | |||||||
Transfers out of level 3, assets | 0 | |||||||
Ending balance, fair value assets | 0 | 0 | ||||||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 0 | |||||||
Change in unrealized gains/(losses) for the period included in OCI for Liabilities still held | 0 | |||||||
Residential Mortgage-Backed Non-Agency [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Beginning balance, fair value assets | 55 | 0 | ||||||
Total gains/(losses) included in earnings, assets | 0 | 0 | ||||||
Unrealized gains/(losses) included in OCI, assets | [1] | (2) | (6) | |||||
Purchases, assets | 1 | 60 | ||||||
Issuances, assets | 0 | 0 | ||||||
Settlements, assets | 0 | 0 | ||||||
Sales, assets | (17) | (17) | ||||||
Transfers into level 3, assets | 0 | 0 | ||||||
Transfers out of level 3, assets | 0 | 0 | ||||||
Ending balance, fair value assets | 37 | 37 | ||||||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 0 | 0 | ||||||
Change in unrealized gains/(losses) for the period included in OCI for Liabilities still held | [1] | (3) | 0 | |||||
Commercial Mortgage-Backed [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Beginning balance, fair value assets | 0 | 0 | ||||||
Total gains/(losses) included in earnings, assets | 0 | 0 | ||||||
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 | 4 | 4 | ||||||
Transfers out of level 3, assets | 0 | 0 | ||||||
Ending balance, fair value assets | 4 | 4 | ||||||
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 | 0 | [1] | 0 | |||||
Collateralized Debt Obligations [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Beginning balance, fair value assets | 4 | |||||||
Total gains/(losses) included in earnings, assets | 0 | |||||||
Unrealized gains/(losses) included in OCI, assets | [1] | 0 | ||||||
Purchases, assets | 0 | |||||||
Issuances, assets | 0 | |||||||
Settlements, assets | (4) | |||||||
Sales, assets | 0 | |||||||
Transfers into level 3, assets | 0 | |||||||
Transfers out of level 3, assets | 0 | |||||||
Ending balance, fair value assets | 0 | 0 | ||||||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 0 | |||||||
Change in unrealized gains/(losses) for the period included in OCI for Liabilities still held | [1] | 0 | ||||||
Medium Term Notes [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Beginning balance, fair value liabilities | 42 | 105 | 98 | 110 | ||||
Total (gains)/losses included in earnings, liabilities | (8) | (4) | (29) | (13) | ||||
Unrealized (gains)/losses included in OCI, liabilities | 4 | [2] | 1 | [2] | 17 | 5 | ||
Purchases, liabilities | 0 | 0 | 0 | 0 | ||||
Issuances, liabilities | 0 | 0 | 0 | 0 | ||||
Settlements, liabilities | 0 | 0 | (48) | 0 | ||||
Sales, liabilities | 0 | 0 | 0 | 0 | ||||
Transfers into Level 3, liabilities | 0 | 0 | 0 | 0 | ||||
Transfers out of Level 3, liabilities | 0 | 0 | 0 | 0 | ||||
Ending balance, fair value liabilities | 38 | 102 | 38 | 102 | ||||
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | (8) | (4) | (28) | (13) | ||||
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held | 4 | 1 | [2] | 18 | 5 | |||
Other Derivatives Liabilities [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Beginning balance, fair value liabilities | 49 | |||||||
Total (gains)/losses included in earnings, liabilities | 0 | |||||||
Unrealized (gains)/losses included in OCI, liabilities | 0 | |||||||
Purchases, liabilities | 0 | |||||||
Issuances, liabilities | 0 | |||||||
Settlements, liabilities | (49) | |||||||
Sales, liabilities | 0 | |||||||
Transfers into Level 3, liabilities | 0 | |||||||
Transfers out of Level 3, liabilities | 0 | |||||||
Ending balance, fair value liabilities | 0 | 0 | ||||||
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 0 | |||||||
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held | 0 | |||||||
Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Beginning balance, fair value liabilities | 217 | 290 | 291 | 303 | ||||
Total (gains)/losses included in earnings, liabilities | 33 | (3) | 8 | 44 | ||||
Unrealized (gains)/losses included in OCI, liabilities | (25) | [2] | 9 | [2] | (6) | (15) | ||
Purchases, liabilities | 0 | 0 | 0 | 0 | ||||
Issuances, liabilities | 0 | 0 | 0 | 0 | ||||
Settlements, liabilities | (52) | (4) | (120) | (35) | ||||
Sales, liabilities | 0 | 0 | 0 | (5) | ||||
Transfers into Level 3, liabilities | 0 | 0 | 0 | 0 | ||||
Transfers out of Level 3, liabilities | 0 | 0 | 0 | 0 | ||||
Ending balance, fair value liabilities | 173 | 292 | 173 | 292 | ||||
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | (2) | (5) | (9) | 23 | ||||
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held | 1 | 9 | [2] | 4 | 4 | |||
Currency Derivatives [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Beginning balance, fair value assets | 9 | 8 | 9 | 6 | ||||
Total gains/(losses) included in earnings, assets | (9) | 1 | (9) | 3 | ||||
Unrealized gains/(losses) included in OCI, assets | 0 | [1] | 0 | [1] | 0 | [1] | 0 | |
Purchases, assets | 0 | 0 | 0 | 0 | ||||
Issuances, assets | 0 | 0 | 0 | 0 | ||||
Settlements, assets | 0 | 0 | 0 | 0 | ||||
Sales, assets | 0 | 0 | 0 | 0 | ||||
Transfers into level 3, assets | 0 | 0 | 0 | 0 | ||||
Transfers out of level 3, assets | 0 | 0 | 0 | 0 | ||||
Ending balance, fair value assets | 0 | 9 | 0 | 9 | ||||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (9) | 1 | (9) | 3 | ||||
Change in unrealized gains/(losses) for the period included in OCI for Liabilities still held | 0 | [1] | 0 | [1] | 0 | [1] | 0 | |
Beginning balance, fair value liabilities | 0 | 0 | ||||||
Total (gains)/losses included in earnings, liabilities | 5 | 5 | ||||||
Unrealized (gains)/losses included in OCI, liabilities | 0 | [2] | 0 | |||||
Purchases, liabilities | 0 | 0 | ||||||
Issuances, liabilities | 0 | 0 | ||||||
Settlements, liabilities | 0 | 0 | ||||||
Sales, liabilities | 0 | 0 | ||||||
Transfers into Level 3, liabilities | 0 | 0 | ||||||
Transfers out of Level 3, liabilities | 0 | 0 | ||||||
Ending balance, fair value liabilities | 5 | 5 | ||||||
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 5 | 5 | ||||||
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held | 0 | 0 | ||||||
Other Assets [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Beginning balance, fair value assets | 16 | 13 | 14 | 14 | ||||
Total gains/(losses) included in earnings, assets | 0 | 2 | 2 | 1 | ||||
Unrealized gains/(losses) included in OCI, assets | 0 | [1] | 0 | [1] | 0 | [1] | 0 | |
Purchases, assets | 0 | 0 | 0 | 0 | ||||
Issuances, assets | 0 | 0 | 0 | 0 | ||||
Settlements, assets | 0 | 0 | 0 | 0 | ||||
Sales, assets | 0 | 0 | 0 | 0 | ||||
Transfers into level 3, assets | 0 | 0 | 0 | 0 | ||||
Transfers out of level 3, assets | 0 | 0 | 0 | 0 | ||||
Ending balance, fair value assets | 16 | 15 | 16 | 15 | ||||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 0 | 2 | 2 | 1 | ||||
Change in unrealized gains/(losses) for the period included in OCI for Liabilities still held | 0 | [1] | $ 0 | [1] | 0 | [1] | $ 0 | |
Equity investments [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Beginning balance, fair value assets | 0 | 0 | ||||||
Total gains/(losses) included in earnings, assets | 0 | 0 | ||||||
Unrealized gains/(losses) included in OCI, assets | [1] | 0 | 0 | |||||
Purchases, assets | 101 | 101 | ||||||
Issuances, assets | 0 | 0 | ||||||
Settlements, assets | 0 | 0 | ||||||
Sales, assets | 0 | 0 | ||||||
Transfers into level 3, assets | 0 | 0 | ||||||
Transfers out of level 3, assets | 0 | 0 | ||||||
Ending balance, fair value assets | 101 | 101 | ||||||
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 | $ 0 | |||||
[1]Reported within the “Unrealized gains (losses) on available-for-sale securities” on MBIA’s Consolidated Statement of Comprehensive Income/Loss.[2]Reported within the “Instrument-specific credit risk of liabilities measured at fair value” on MBIA’s Consolidated Statement of Comprehensive Income/Loss. |
Fair Value Of Financial Instr_8
Fair Value Of Financial Instruments (Realized And Unrealized Gains And Losses Included In Earnings Pertaining To Level 3 Assets And Liabilities) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
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 | $ 25 | $ 9 | $ 51 | $ 41 |
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 | (36) | 4 | (16) | (10) |
Fair Value Inputs Level 3 [Member] | Total Gains (Losses) Included in Earnings [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 8 | 4 | 29 | 13 |
Total revenues | (26) | 7 | 17 | 0 |
Fair Value Inputs Level 3 [Member] | Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 8 | 4 | 28 | 13 |
Total revenues | 7 | 8 | 27 | 15 |
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 | (34) | 3 | (12) | (13) |
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 | $ (1) | $ 4 | $ (1) | $ 2 |
Fair Value Of Financial Instr_9
Fair Value Of Financial Instruments (Gains And Losses On Fair Value Option Included In The Company's Consolidated Statements Of Operations) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | $ 25 | $ 9 | $ 51 | $ 41 | |
Non Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 25 | 9 | 51 | 41 | |
Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | (36) | 4 | (16) | (10) | |
Investments Carried At Fair Value [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [1] | (7) | (1) | (33) | 5 |
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] | (1) | 1 | (4) | 3 |
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] | 13 | (3) | 8 | 31 |
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] | 0 | 0 | 0 | (4) |
Other Assets [Member] | Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [2] | 0 | 2 | 2 | 1 |
Medium Term Notes [Member] | Non Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [1] | 8 | 4 | 29 | 13 |
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] | $ (35) | $ 3 | $ (12) | $ (47) |
[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. |
Fair Value Of Financial Inst_10
Fair Value Of Financial Instruments (Aggregate Fair Value And Remaining Contractual Principal Balance Outstanding On Fair Value Option) (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
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 | $ 39 | $ 40 |
Loans receivable and other instruments, 90 days or more past due, contractual outstanding principal | 144 | 141 |
Loans receivable and other instruments, fair value | 39 | 40 |
Loans receivable and other instruments, 90 days or more past due, fair value | 40 | 37 |
Loans receivable and other instruments, difference | 0 | 0 |
Loans receivable and other instruments, 90 days or more past due, difference | 104 | 104 |
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 | 183 | 181 |
Loans receivable and other instruments, fair value | 79 | 77 |
Loans receivable and other instruments, difference | 104 | 104 |
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 | 771 | 922 |
Long-term debt instruments, fair value | 173 | 291 |
Long-term debt instruments, difference | 598 | 631 |
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 | 49 | 108 |
Long-term debt instruments, fair value | 38 | 98 |
Long-term debt instruments, difference | $ 11 | $ 10 |
Investments (Narrative) (Detail
Investments (Narrative) (Detail) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 USD ($) security | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) security | |
Schedule Of Investments [Line Items] | |||
Fair value of securities on deposit with various regulatory authorities | $ 10 | $ 11 | |
Number of securities in unrealized loss position for a continuous 12 month period | security | 140 | 36 | |
Rate that a security's fair value is below book value | 5% | 5% | |
Increase Decrease In Other Net Realized Gains Losses | $ 13 | $ 14 | |
Asset Pledged as Collateral [Member] | |||
Schedule Of Investments [Line Items] | |||
Fair value of securities pledged as collateral | $ 282 | $ 280 | |
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 | 14 years | 11 years | |
Increase Decrease In Other Net Realized Gains Losses | $ 2 | ||
Debt securities intent to sell impairment | $ 21 | ||
Fair Value Below Book Value Greater Than Five Percent [Member] | |||
Schedule Of Investments [Line Items] | |||
Number of securities in unrealized loss position for a continuous 12 month period | security | 135 | 7 |
Investments (Amortized Cost And
Investments (Amortized Cost And Fair Value Of Available-For-Sale and Held-To-Maturity Investment Portfolios) (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
U S Treasury And Government [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | $ 749 | $ 782 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 6 | 54 |
Gross unrealized losses | (39) | (2) |
Total available-for-sale, fair value | 716 | 834 |
US States And Political Subdivisions [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 143 | 140 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 1 | 27 |
Gross unrealized losses | (12) | 0 |
Total available-for-sale, fair value | 132 | 167 |
Foreign Governments [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 23 | 13 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 0 | 1 |
Gross unrealized losses | (4) | 0 |
Total available-for-sale, fair value | 19 | 14 |
Corporate Obligations [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 872 | 905 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 1 | 53 |
Gross unrealized losses | (162) | (5) |
Total available-for-sale, fair value | 711 | 953 |
Residential Mortgage-Backed Agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 207 | 190 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 0 | 3 |
Gross unrealized losses | (25) | (1) |
Total available-for-sale, fair value | 182 | 192 |
Residential Mortgage-Backed Non-Agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 135 | 80 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 2 | 12 |
Gross unrealized losses | (19) | 0 |
Total available-for-sale, fair value | 118 | 92 |
Commercial Mortgage-Backed [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 13 | 10 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1) | 0 |
Total available-for-sale, fair value | 12 | 10 |
Collateralized Debt Obligations [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 118 | 101 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (7) | 0 |
Total available-for-sale, fair value | 111 | 101 |
Other Asset-Backed [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 109 | 95 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (4) | (1) |
Total available-for-sale, fair value | 105 | 94 |
Fixed Maturities [Member] | ||
Available For Sale Securities [Abstract] | ||
Total available-for-sale, amortized cost | 2,369 | 2,316 |
Allowance for Credit Losess | 0 | 0 |
Gross unrealized gains | 10 | 150 |
Gross unrealized losses | (273) | (9) |
Total available-for-sale, fair value | $ 2,106 | $ 2,457 |
Investments (Distribution By Co
Investments (Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments) (Detail) - Fixed Maturities [Member] - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Available For Sale Securities [Abstract] | ||
Due in one year or less | $ 379 | |
Due after one year through five years | 294 | |
Due after five years through ten years | 342 | |
Due after ten years | 772 | |
Mortgage-Backed and Asset-Backed | 582 | |
Total Available-For-Sale, amortized cost | 2,369 | |
Due in one year or less | 378 | |
Due after one year through five years | 278 | |
Due after five years through ten years | 292 | |
Due after ten years | 630 | |
Mortgage-Backed and Asset-Backed | 528 | |
Total Available-For-Sale, fair value | $ 2,106 | $ 2,457 |
Investments (Gross Unrealized L
Investments (Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments) (Detail) - Fixed Maturities [Member] - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | $ 1,427 | $ 676 |
Less than 12 months, unrealized losses | (225) | (8) |
12 months or longer, fair value | 189 | 55 |
12 months or longer, unrealized losses | (48) | (1) |
Total available-for-sale, fair value | 1,616 | 731 |
Total available-for-sale, unrealized losses | (273) | (9) |
U S Treasury And Government [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 307 | 161 |
Less than 12 months, unrealized losses | (36) | (1) |
12 months or longer, fair value | 14 | 16 |
12 months or longer, unrealized losses | (3) | (1) |
Total available-for-sale, fair value | 321 | 177 |
Total available-for-sale, unrealized losses | (39) | (2) |
State and municipal bonds [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 95 | 11 |
Less than 12 months, unrealized losses | (11) | 0 |
12 months or longer, fair value | 1 | 0 |
12 months or longer, unrealized losses | (1) | 0 |
Total available-for-sale, fair value | 96 | 11 |
Total available-for-sale, unrealized losses | (12) | 0 |
Foreign Government Debt [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 18 | 3 |
Less than 12 months, unrealized losses | (4) | 0 |
12 months or longer, fair value | 0 | 0 |
12 months or longer, unrealized losses | 0 | 0 |
Total available-for-sale, fair value | 18 | 3 |
Total available-for-sale, unrealized losses | (4) | 0 |
Corporate Obligations [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 597 | 270 |
Less than 12 months, unrealized losses | (134) | (5) |
12 months or longer, fair value | 74 | 8 |
12 months or longer, unrealized losses | (28) | 0 |
Total available-for-sale, fair value | 671 | 278 |
Total available-for-sale, unrealized losses | (162) | (5) |
Residential Mortgage Backed Agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 127 | 94 |
Less than 12 months, unrealized losses | (13) | (1) |
12 months or longer, fair value | 55 | 1 |
12 months or longer, unrealized losses | (12) | 0 |
Total available-for-sale, fair value | 182 | 95 |
Total available-for-sale, unrealized losses | (25) | (1) |
Residential Mortgage Backed Non Agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 102 | 3 |
Less than 12 months, unrealized losses | (19) | 0 |
12 months or longer, fair value | 0 | 1 |
12 months or longer, unrealized losses | 0 | 0 |
Total available-for-sale, fair value | 102 | 4 |
Total available-for-sale, unrealized losses | (19) | 0 |
Commercial Mortgage Backed Securities [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 11 | 2 |
Less than 12 months, unrealized losses | (1) | 0 |
12 months or longer, fair value | 1 | 0 |
12 months or longer, unrealized losses | 0 | 0 |
Total available-for-sale, fair value | 12 | 2 |
Total available-for-sale, unrealized losses | (1) | 0 |
Collateralized Debt Obligations [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 67 | 60 |
Less than 12 months, unrealized losses | (3) | 0 |
12 months or longer, fair value | 43 | 29 |
12 months or longer, unrealized losses | (4) | 0 |
Total available-for-sale, fair value | 110 | 89 |
Total available-for-sale, unrealized losses | (7) | 0 |
Other Asset Backed [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 103 | 72 |
Less than 12 months, unrealized losses | (4) | (1) |
12 months or longer, fair value | 1 | 0 |
12 months or longer, unrealized losses | 0 | 0 |
Total available-for-sale, fair value | 104 | 72 |
Total available-for-sale, unrealized losses | $ (4) | $ (1) |
Investments (Distribution Of Se
Investments (Distribution Of Securities By Percentage Of Fair Value Below Book Value By More Than 5% For A Continuous Twelve Month Period Or Longer) (Detail) - Unrealized loss position > 12 months $ in Millions | Sep. 30, 2022 USD ($) security |
> 5% To 15% [Member] | |
Available For Sale Securities [Abstract] | |
Number of available-for-sale securities in unrealized loss position | security | 34 |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 80 |
Available For Sale Securities | $ 72 |
Held To Maturity Securities [Abstract] | |
Percentage Of Fair Value Below Book Value Minimum | 5% |
Percentage Of Fair Value Below Book Value Maximum | 15% |
> 15% To 25% [Member] | |
Available For Sale Securities [Abstract] | |
Number of available-for-sale securities in unrealized loss position | security | 45 |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 71 |
Available For Sale Securities | $ 56 |
Held To Maturity Securities [Abstract] | |
Percentage Of Fair Value Below Book Value Minimum | 15% |
Percentage Of Fair Value Below Book Value Maximum | 25% |
> 25% To 50% [Member] | |
Available For Sale Securities [Abstract] | |
Number of available-for-sale securities in unrealized loss position | security | 53 |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 73 |
Available For Sale Securities | $ 49 |
Held To Maturity Securities [Abstract] | |
Percentage Of Fair Value Below Book Value Minimum | 25% |
Percentage Of Fair Value Below Book Value Maximum | 50% |
> 50% [Member] | |
Available For Sale Securities [Abstract] | |
Number of available-for-sale securities in unrealized loss position | security | 3 |
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% |
Greater Than 5% [Member] | |
Available For Sale Securities [Abstract] | |
Number of available-for-sale securities in unrealized loss position | security | 135 |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 224 |
Available For Sale Securities | $ 177 |
Investments - (Summary of Allow
Investments - (Summary of Allowance for Credit Losses on AFS Investments) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Accounting Standards Update 2016-13 [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | $ 3 | $ 0 |
Additions not previously recorded | 0 | 3 |
Additions arising from PCD Assets | 0 | 0 |
Reductions from Securities Sold | 0 | 0 |
Reductions – Intent to sell or MLTN | 3 | 3 |
Change in Allowance Previously Recorded | 0 | 0 |
Write- Offs | 0 | 0 |
Recoveries | 0 | 0 |
Ending balance | 0 | 0 |
Corporate Obligations [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 0 | |
Ending balance | 0 | 0 |
Corporate Obligations [Member] | Accounting Standards Update 2016-13 [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 3 | 0 |
Additions not previously recorded | 0 | 3 |
Additions arising from PCD Assets | 0 | 0 |
Reductions from Securities Sold | 0 | 0 |
Reductions – Intent to sell or MLTN | 3 | 3 |
Change in Allowance Previously Recorded | 0 | 0 |
Write- Offs | 0 | 0 |
Recoveries | 0 | 0 |
Ending balance | $ 0 | $ 0 |
Investments (Securities Held In
Investments (Securities Held In Unrealized Loss Position And Insured By Financial Guarantor) (Detail) - Financial Guarantee [Member] $ in Millions | Sep. 30, 2022 USD ($) |
Schedule Of Investments [Line Items] | |
Total available-for-sale, fair value | $ 173 |
Gross unrealized losses | (48) |
Loss and loss adjustment expense reserves | 111 |
Mortgage-backed [Member] | |
Schedule Of Investments [Line Items] | |
Total available-for-sale, fair value | 93 |
Gross unrealized losses | (17) |
Loss and loss adjustment expense reserves | 111 |
Corporate Obligations [Member] | |
Schedule Of Investments [Line Items] | |
Total available-for-sale, fair value | 74 |
Gross unrealized losses | (31) |
Loss and loss adjustment expense reserves | 0 |
Other [Member] | |
Schedule Of Investments [Line Items] | |
Total available-for-sale, fair value | $ 6 |
Investments (Net Realized Gains
Investments (Net Realized Gains (Losses) From Sales Of Available-For-Sale Securities) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Investments [Abstract] | ||||
Proceeds from sales | $ 339 | $ 73 | $ 859 | $ 469 |
Available For Sale Securities Realized Gain Loss [Abstract] | ||||
Gross realized gains | 2 | 1 | 3 | 7 |
Gross realized losses | $ (17) | $ 0 | $ (42) | $ (8) |
Investments (Portion Of Unreali
Investments (Portion Of Unrealized Gains And Losses On Equity Investments Held) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | $ (37) | $ 1 | ||
Equity and Trading securities [Member] | Gains (losses) on equity investments [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | $ (3) | $ 0 | (31) | 5 |
Equity and Trading securities [Member] | Gains (losses) on equity investments sold during the period [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | (6) | 1 | (6) | 1 |
Equity and Trading securities [Member] | Gains (losses) on equity investments still held at the end of the period [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | $ 3 | $ (1) | $ (25) | $ 4 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Detail) $ in Millions | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Derivative [Line Items] | ||
Cash collateral posted to derivative counterparties | $ 0 | $ 0 |
Securities posted as collateral to derivative counterparties | $ 75 | $ 159 |
Number of credit support annexes | 1 | 1 |
Fair value of Credit Support Annex | $ 1 |
Derivative Instruments (Credit
Derivative Instruments (Credit Derivatives Sold) (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Weighted average remaining expected maturity | 13 years 10 months 24 days | 14 years 1 month 6 days |
Insurance Operations [Member] | ||
Derivative [Line Items] | ||
Total fair value of credit derivatives | $ 0 | $ (1) |
Insurance Operations [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 1,367 | 1,489 |
Total fair value of credit derivatives | 0 | (1) |
Credit Rating Aaa [Member] | Insurance Operations [Member] | ||
Derivative [Line Items] | ||
Total fair value of credit derivatives | 0 | 0 |
Credit Rating Aaa [Member] | Insurance Operations [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | 0 |
Credit Rating Aa [Member] | Insurance Operations [Member] | ||
Derivative [Line Items] | ||
Total fair value of credit derivatives | 0 | 0 |
Credit Rating Aa [Member] | Insurance Operations [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 53 | 61 |
Credit Rating A [Member] | Insurance Operations [Member] | ||
Derivative [Line Items] | ||
Total fair value of credit derivatives | 0 | (1) |
Credit Rating A [Member] | Insurance Operations [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 1,022 | 1,136 |
Credit Rating Bbb [Member] | Insurance Operations [Member] | ||
Derivative [Line Items] | ||
Total fair value of credit derivatives | 0 | 0 |
Credit Rating Bbb [Member] | Insurance Operations [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 232 | 292 |
Credit Rating Below Investment Grade [Member] | Insurance Operations [Member] | ||
Derivative [Line Items] | ||
Total fair value of credit derivatives | 0 | |
Credit Rating Below Investment Grade [Member] | Insurance Operations [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 60 | $ 0 |
Derivative Instruments (Total F
Derivative Instruments (Total Fair Value Of Company's Derivative Assets And Liabilities By Instrument And Balance Sheet Location, Before Counterparty Netting) (Detail) - Not Designated as Hedging Instrument [Member] - Derivative Instrument [Member] - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Derivative notional amount | $ 1,958 | $ 2,144 | |
Derivative Assets, Not designated, Fair Value | [1] | 0 | 10 |
Derivative Liabilities, Not designated, Fair Value | [1] | (55) | (140) |
Insured swaps [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 1,367 | 1,489 | |
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] | 0 | (1) |
Interest rate swaps [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 375 | 399 | |
Interest rate swaps [Member] | Other assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | [1] | 0 | 1 |
Interest rate swaps [Member] | Derivative liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | (49) | (130) |
Interest rate swaps-embedded [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 178 | 206 | |
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] | (1) | (9) |
Currency swaps-VIE [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 38 | 50 | |
Currency swaps-VIE [Member] | Other assets-VIE [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | [1] | 0 | 9 |
Currency swaps-VIE [Member] | Derivative liabilities-VIE [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | $ (5) | $ 0 |
[1]In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Company’s embedded derivative instruments is determined by the location of the related host contract. |
Derivative Instruments (Effect
Derivative Instruments (Effect Of Derivative Instruments On Consolidated Statements Of Operations) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | $ 9 | $ 6 | $ 66 | $ 25 |
Insured swaps [Member] | Net gains (losses) on financial instruments at fair value and foreign exchange [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | 1 | 0 | ||
Interest Rate Swap [Member] | Net gains (losses) on financial instruments at fair value and foreign exchange [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | 23 | 5 | 79 | 22 |
Currency swaps-VIE [Member] | Net gains (losses) on financial instruments at fair value and foreign exchange-VIE [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | $ (14) | $ 1 | $ (14) | $ 3 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) $ in Millions | Aug. 16, 2022 | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Non Variable Interest Entities [Line Items] | |||
NOL carryforward | $ 3,900 | ||
Foreign tax credit | 58 | ||
Unrecognized Tax Benefits | 0 | $ 0 | |
Valuation allowance on net deferred tax asset | $ 1,200 | $ 1,100 | |
Effective income tax rate reconciliation, alternative minimum tax on the book income of large corporations, percent | 15 | ||
Effective income tax rate reconciliation, excise tax on most stock buybacks, percent. | 1 |
Income Taxes (Income Taxes And
Income Taxes (Income Taxes And Related Effective Tax Rates) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disclosure Income Taxes Income Taxes And Related Effective Tax Rates [Abstract] | ||||
Income (loss) from continuing operations before income taxes | $ (35) | $ (123) | $ (144) | $ (290) |
Provision (benefit) for income taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Effective tax rate | 0% | 0% | 0% | 0% |
Business Segments (Narrative) (
Business Segments (Narrative) (Detail) | 9 Months Ended |
Sep. 30, 2022 segments | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
Business Segments (Summary Of C
Business Segments (Summary Of Company's Segment Results) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | ||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | $ 23 | [1] | $ 52 | [1] | $ 53 | $ 115 | ||
Net gains (losses) on financial instruments at fair value and foreign exchange | 25 | 9 | 51 | 41 | ||||
Net gains (losses) on extinguishment of debt | 16 | 4 | 30 | |||||
Revenues of consolidated VIEs | (31) | (5) | (11) | (24) | ||||
Inter-segment revenues | 0 | [2] | 0 | 0 | 0 | |||
Total revenues | 17 | 72 | 97 | 162 | ||||
Losses and loss adjustment | (12) | 125 | 57 | 232 | ||||
Amortization of deferred acquisition costs and operating | 16 | 23 | 49 | 75 | ||||
Interest | 46 | 40 | 130 | 122 | ||||
Expenses of consolidated VIEs | 2 | 7 | 5 | 23 | ||||
Inter-segment expenses | 0 | [2] | 0 | [2] | 0 | 0 | ||
Total expenses | 52 | 195 | 241 | 452 | ||||
Income (loss) from continuing operations before income taxes | (35) | (123) | (144) | (290) | ||||
Identifiable assets per segment | 3,883 | 3,883 | ||||||
Assets held for sale | 132 | 132 | ||||||
Total identifiable assets | 4,015 | 4,015 | $ 4,696 | |||||
Operating Segments [Member] | US Public Finance Insurance [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 17 | [1] | 21 | [1] | 24 | 65 | ||
Net gains (losses) on financial instruments at fair value and foreign exchange | (6) | 0 | (43) | 0 | ||||
Net gains (losses) on extinguishment of debt | 0 | 0 | 0 | |||||
Revenues of consolidated VIEs | 0 | 0 | 0 | 0 | ||||
Inter-segment revenues | 6 | [2] | 8 | 20 | 22 | |||
Total revenues | 17 | 29 | 1 | 87 | ||||
Losses and loss adjustment | 16 | 68 | 152 | 135 | ||||
Amortization of deferred acquisition costs and operating | 2 | 6 | 6 | 14 | ||||
Interest | 0 | 0 | 0 | 0 | ||||
Expenses of consolidated VIEs | 0 | 0 | 0 | 0 | ||||
Inter-segment expenses | 10 | [2] | 11 | [2] | 33 | 36 | ||
Total expenses | 28 | 85 | 191 | 185 | ||||
Income (loss) from continuing operations before income taxes | (11) | (56) | (190) | (98) | ||||
Identifiable assets per segment | 3,061 | 3,061 | ||||||
Assets held for sale | 0 | 0 | ||||||
Total identifiable assets | 3,061 | 3,061 | ||||||
Operating Segments [Member] | Corporate Operations [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | (3) | [1] | 7 | [1] | 3 | 13 | ||
Net gains (losses) on financial instruments at fair value and foreign exchange | 35 | 12 | 111 | 50 | ||||
Net gains (losses) on extinguishment of debt | 16 | 5 | 30 | |||||
Revenues of consolidated VIEs | 0 | 0 | 0 | 0 | ||||
Inter-segment revenues | 12 | [2] | 14 | 43 | 50 | |||
Total revenues | 44 | 49 | 162 | 143 | ||||
Losses and loss adjustment | 0 | 0 | 0 | 0 | ||||
Amortization of deferred acquisition costs and operating | 12 | 16 | 35 | 54 | ||||
Interest | 14 | 14 | 42 | 42 | ||||
Expenses of consolidated VIEs | 0 | 0 | 0 | 0 | ||||
Inter-segment expenses | 5 | [2] | 4 | [2] | 17 | 14 | ||
Total expenses | 31 | 34 | 94 | 110 | ||||
Income (loss) from continuing operations before income taxes | 13 | 15 | 68 | 33 | ||||
Identifiable assets per segment | 622 | 622 | ||||||
Assets held for sale | 0 | 0 | ||||||
Total identifiable assets | 622 | 622 | ||||||
Operating Segments [Member] | International And Structured Finance Insurance [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 9 | [1] | 24 | [1] | 26 | 37 | ||
Net gains (losses) on financial instruments at fair value and foreign exchange | (4) | (3) | (17) | (9) | ||||
Net gains (losses) on extinguishment of debt | 0 | 0 | 0 | |||||
Revenues of consolidated VIEs | (31) | (5) | (11) | (24) | ||||
Inter-segment revenues | 2 | [2] | 2 | 7 | 10 | |||
Total revenues | (24) | 18 | 5 | 14 | ||||
Losses and loss adjustment | (28) | 57 | (95) | 97 | ||||
Amortization of deferred acquisition costs and operating | 2 | 1 | 8 | 7 | ||||
Interest | 32 | 26 | 88 | 80 | ||||
Expenses of consolidated VIEs | 2 | 7 | 5 | 23 | ||||
Inter-segment expenses | 6 | [2] | 9 | [2] | 20 | 30 | ||
Total expenses | 14 | 100 | 26 | 237 | ||||
Income (loss) from continuing operations before income taxes | (38) | (82) | (21) | (223) | ||||
Identifiable assets per segment | 1,708 | 1,708 | ||||||
Assets held for sale | 0 | 0 | ||||||
Total identifiable assets | 1,708 | 1,708 | ||||||
Intersegment Elimination [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 0 | [1] | 0 | [1] | 0 | 0 | ||
Net gains (losses) on financial instruments at fair value and foreign exchange | 0 | 0 | 0 | 0 | ||||
Net gains (losses) on extinguishment of debt | 0 | (1) | 0 | |||||
Revenues of consolidated VIEs | 0 | 0 | 0 | 0 | ||||
Inter-segment revenues | (20) | [2] | (24) | (70) | (82) | |||
Total revenues | (20) | (24) | (71) | (82) | ||||
Losses and loss adjustment | 0 | 0 | 0 | 0 | ||||
Amortization of deferred acquisition costs and operating | 0 | 0 | 0 | 0 | ||||
Interest | 0 | 0 | 0 | 0 | ||||
Expenses of consolidated VIEs | 0 | 0 | 0 | 0 | ||||
Inter-segment expenses | (21) | [2] | (24) | [2] | (70) | (80) | ||
Total expenses | (21) | (24) | (70) | (80) | ||||
Income (loss) from continuing operations before income taxes | 1 | $ 0 | (1) | $ (2) | ||||
Identifiable assets per segment | [3] | (1,508) | (1,508) | |||||
Assets held for sale | 0 | 0 | ||||||
Total identifiable assets | $ (1,508) | $ (1,508) | ||||||
[1]Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses).[2]Primarily represents intercompany service charges and intercompany net investment income and expenses.[3]Consists principally of intercompany reinsurance balances. |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Shares [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.8 | 0.8 | 0.9 | 0.9 |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Basic And Diluted Earnings Per Share) (Detail) - USD ($) $ / shares in Units, $ in Millions | 2 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Basic earnings per share: | ||||||
Net income (loss) from continuing operations | $ (35) | $ (123) | $ (144) | $ (290) | ||
Less: undistributed earnings allocated to participating securities | 0 | 0 | 0 | 0 | ||
Net income (loss) from continuing operations available to common shareholders | (35) | (123) | (144) | (290) | ||
Net income (loss) from discontinued operations | $ 1 | 1 | 0 | 1 | 0 | |
Net income (loss) | $ (34) | $ (123) | $ (143) | $ (290) | ||
Basic weighted average shares | [1] | 49,878,191 | 49,552,796 | 49,779,681 | 49,434,177 | |
Continuing operations | $ (0.68) | $ (2.49) | $ (2.88) | $ (5.87) | ||
Discontinued operations | 0.01 | 0 | 0.01 | 0 | ||
Net income (loss) per share - basic | $ (0.67) | $ (2.49) | $ (2.87) | $ (5.87) | ||
Diluted earnings per share: | ||||||
Net income (loss) from continuing operations | $ (35) | $ (123) | $ (144) | $ (290) | ||
Less: undistributed earnings allocated to participating securities | 0 | 0 | 0 | 0 | ||
Net income (loss) from continuing operations available to common shareholders | (35) | (123) | (144) | (290) | ||
Net income (loss) from discontinued operations | $ 1 | 1 | 0 | 1 | 0 | |
Net income (loss) | $ (34) | $ (123) | $ (143) | $ (290) | ||
Diluted weighted average shares | 49,878,191 | 49,552,796 | 49,779,681 | 49,434,177 | ||
Continuing operations | $ (0.68) | $ (2.49) | $ (2.88) | $ (5.87) | ||
Discontinued operations | 0.01 | 0 | 0.01 | 0 | ||
Net income (loss) per share -diluted | $ (0.67) | $ (2.49) | $ (2.87) | $ (5.87) | ||
Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect | 5,000,000 | 4,900,000 | 5,000,000 | 4,900,000 | ||
[1]Includes 0.8 million and 0.9 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for each of the three months and nine months ended September 30, 2022 and 2021, respectively. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Changes In The Components Of AOCI) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Beginning balance | $ 100 | |||
Other comprehensive income (loss) before reclassifications | (420) | |||
Amounts reclassified from AOCI | 6 | |||
Net period other comprehensive income (loss) | $ (83) | $ (13) | (414) | $ (25) |
Ending balance | (314) | (314) | ||
Unrealized gains (losses) on AFS, net [Member] | ||||
Beginning balance | 138 | |||
Other comprehensive income (loss) before reclassifications | (399) | |||
Amounts reclassified from AOCI | (5) | |||
Net period other comprehensive income (loss) | (404) | |||
Ending balance | (266) | (266) | ||
Foreign currency translation, net [Member] | ||||
Beginning balance | (6) | |||
Other comprehensive income (loss) before reclassifications | 1 | |||
Amounts reclassified from AOCI | 0 | |||
Net period other comprehensive income (loss) | 1 | |||
Ending balance | (5) | (5) | ||
Instrument-specific credit risk of liabilities measured at fair value, net [Member] | ||||
Beginning balance | (32) | |||
Other comprehensive income (loss) before reclassifications | (22) | |||
Amounts reclassified from AOCI | 11 | |||
Net period other comprehensive income (loss) | (11) | |||
Ending balance | $ (43) | $ (43) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Details Of The Reclassification From AOCI) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income (loss) before income taxes | $ (35) | $ (123) | $ (144) | $ (290) |
Net gains (losses) on financial instruments at fair value and foreign exchange | 25 | 9 | 51 | 41 |
Net income (loss) | (34) | (123) | (143) | (290) |
Amounts reclassified from AOCI [Member] | ||||
Net income (loss) | (20) | (9) | (6) | (25) |
Unrealized gains (losses) on AFS, net [Member] | Amounts reclassified from AOCI [Member] | ||||
Net realized investment gains (losses) | 3 | 3 | 5 | 11 |
Income (loss) before income taxes | 3 | 3 | 5 | 11 |
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 | $ (23) | $ (12) | $ (11) | $ (36) |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) Lawsuits | |
Commitments And Contingencies [Line Items] | |
Other material lawsuits pending | Lawsuits | 0 |
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 | Sep. 30, 2022 USD ($) |
Operating lease right of use asset | $ 17 |
Operating lease liability | $ 17 |
Operating lease weighted average remaining lease term | 7 years 1 month 6 days |
Operating lease weighted average discount rate percent | 7.50% |
Operating leases future minimum payments due | $ 24 |
Operating lease right of use asset | Other Assets |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Operating Lease, Liability |