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Loss and Loss Adjustment Expense Reserves (Tables)
 9 Months Ended
Sep. 30, 2023
Text Block [Abstract]  
Present Value Of The Probability-Weighted Future Claim Payments And Recoveries

The Company’s loss and LAE reserves and recoveries before consolidated VIE eliminations, along with amounts that were eliminated as a result of consolidating VIEs for the international and structured finance insurance segment, which are included in the Company’s consolidated balance sheets as of September 30, 2023 and December 31, 2022 are presented in the following table:

 

 

 

 

As of September 30, 2023

 

 

As of December 31, 2022

 

In millions

Balance Sheet Line Item

 

 

Balance Sheet Line Item

 

 

 

 

Insurance loss recoverable

 

 

Loss and LAE reserves (1)

 

 

Insurance loss recoverable

 

 

Loss and LAE reserves (1)

 

U.S. Public Finance Insurance

$

150

 

 

$

228

 

 

$

107

 

 

$

154

 

International and Structured Finance Insurance:

 

 

 

 

 

 

 

 

 

 

 

 

Before VIE eliminations

 

28

 

 

 

314

 

 

 

32

 

 

 

488

 

 

VIE eliminations

 

(1

)

 

 

(92

)

 

 

(2

)

 

 

(203

)

 

 

Total international and structured finance insurance

 

27

 

 

 

222

 

 

 

30

 

 

 

285

 

 

Total

$

177

 

 

$

450

 

 

$

137

 

 

$

439

 

 

(1) - Amounts are net of estimated recoveries of expected future claims.
Schedule Of Loss And Loss Adjustment Expenses Reserves

In millions

 

 

Changes in Loss and LAE Reserves for the Nine Months Ended September 30, 2023

 

 

 

 

Gross Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Loss

 

and LAE

 

 

 

 

 

Accretion

 

 

 

 

 

 

 

 

Changes in

 

 

and LAE

 

Reserves as of

 

 

Loss

 

 

of Claim

 

 

Changes in

 

 

 

 

 

Unearned

 

 

Reserves as of

 

December 31,

 

 

and LAE

 

 

Liability

 

 

Discount

 

 

Changes in

 

 

Premium

 

 

September 30,

 

2022

 

 

Payments

 

 

Discount

 

 

Rates

 

 

Assumptions (1)

 

 

Revenue

 

 

2023

 

$

439

 

 

$

(210

)

 

$

9

 

 

$

(24

)

 

$

234

 

 

$

2

 

 

$

450

 

 

(1) - Includes changes in amount and timing of estimated payments and recoveries.
Schedule Of Insurance Loss Recoverable

 

 

 

 

 

 

Changes in Insurance Loss Recoverable

 

 

 

 

 

 

 

 

for the Nine Months Ended September 30, 2023

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

Recoverable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recoverable

 

 

 

 

as of

 

 

 

 

 

Accretion

 

 

Changes in

 

 

 

 

 

as of

 

 

 

 

December 31,

 

 

Collections

 

 

of

 

 

Discount

 

 

Changes in

 

 

September 30,

 

In millions

 

2022

 

 

for Cases

 

 

Recoveries

 

 

Rates

 

 

Assumptions

 

 

2023

 

Insurance loss recoverable

 

$

137

 

 

$

(7

)

 

$

3

 

 

$

1

 

 

$

43

 

 

$

177

 

 

 
Schedule Of Financial Guarantees And Related Claim Liability

The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of September 30, 2023:

 

 

 

 

 

 

Surveillance Categories

 

 

 

 

 

 

Caution

 

 

Caution

 

 

Caution

 

 

 

 

 

 

 

 

 

 

 

 

List

 

 

List

 

 

List

 

 

Classified

 

 

 

 

$ in millions

 

Low

 

 

Medium

 

 

High

 

 

List

 

 

Total

 

Number of policies

 

 

36

 

 

 

1

 

 

 

-

 

 

 

95

 

 

 

132

 

Number of issues (1)

 

 

13

 

 

 

1

 

 

 

-

 

 

 

78

 

 

 

92

 

Remaining weighted average contract period (in years)

 

 

5.6

 

 

 

0.3

 

 

 

-

 

 

 

7.0

 

 

 

6.3

 

Gross insured contractual payments outstanding: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

$

1,411

 

 

$

2

 

 

$

-

 

 

$

1,255

 

 

$

2,668

 

 

 

Interest

 

 

1,697

 

 

 

-

 

 

 

-

 

 

 

494

 

 

 

2,191

 

 

 

 

Total

 

$

3,108

 

 

$

2

 

 

$

-

 

 

$

1,749

 

 

$

4,859

 

Gross Claim Liability (3)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

653

 

 

$

653

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Potential Recoveries (4)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

235

 

 

 

235

 

 

Discount, net (5)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

147

 

 

 

147

 

Net claim liability (recoverable)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

271

 

 

$

271

 

Unearned premium revenue

 

$

9

 

 

$

-

 

 

$

-

 

 

$

8

 

 

$

17

 

Reinsurance recoverable on paid and unpaid losses (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

13

 

 

(1) - An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt.

(2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.

(3) - The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position.

(4) - Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position.

(5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries.

(6) - Included in "Other assets" on the Company's consolidated balance sheets.

The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of December 31, 2022:

 

 

 

 

 

 

Surveillance Categories

 

 

 

 

 

 

Caution

 

 

Caution

 

 

Caution

 

 

 

 

 

 

 

 

 

 

 

 

List

 

 

List

 

 

List

 

 

Classified

 

 

 

 

$ in millions

 

Low

 

 

Medium

 

 

High

 

 

List

 

 

Total

 

Number of policies

 

 

57

 

 

 

3

 

 

 

-

 

 

 

101

 

 

 

161

 

Number of issues (1)

 

 

17

 

 

 

2

 

 

 

-

 

 

 

80

 

 

 

99

 

 

Remaining weighted average contract period (in years)

 

 

5.7

 

 

 

2.4

 

 

 

-

 

 

 

7.2

 

 

 

6.4

 

Gross insured contractual payments outstanding: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

$

1,723

 

 

$

4

 

 

$

-

 

 

$

1,458

 

 

$

3,185

 

 

 

Interest

 

 

1,905

 

 

 

1

 

 

 

-

 

 

 

602

 

 

 

2,508

 

 

 

 

Total

 

$

3,628

 

 

$

5

 

 

$

-

 

 

$

2,060

 

 

$

5,693

 

Gross Claim Liability (3)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

677

 

 

$

677

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Potential Recoveries (4)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

198

 

 

 

198

 

 

Discount, net (5)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

179

 

 

 

179

 

Net claim liability (recoverable)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

300

 

 

$

300

 

Unearned premium revenue

 

$

11

 

 

$

-

 

 

$

-

 

 

$

9

 

 

$

20

 

Reinsurance recoverable on paid and unpaid losses (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

10

 

 

(1) - An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt.

(2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.

(3) - The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position.

(4) - Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position.

(5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries.

(6) - Included in "Other assets" on the Company's consolidated balance sheets.