Insurance Premiums

12 Months Ended

Dec. 31, 2023

Text Block [Abstract]

Insurance Premiums

Note 5: Insurance Premiums

The following tables present a roll forward of the Company’s premiums receivable for the years ended December 31, 2023 and 2022:

In millions

Adjustments

Premiums

Premiums

Changes in

Accretion of

Premiums

Receivable as of

Premium

from New

Expected

Premiums

Receivable as of

December 31,

Payments

Business

Term of

Receivable

December 31,

2022

Received

Written

Policies

Discount (1)

2023

$

160

$

(18

)

$

-

$

-

$

4

$

146

(1) - Recorded within premiums earned on MBIA's consolidated statement of operations.

In millions
							Adjustments
Premiums					Premiums		Changes in			Accretion of				Premiums
Receivable as of		Premium			from New		Expected			Premiums				Receivable as of
December 31,		Payments			Business		Term of			Receivable				December 31,
2021		Received			Written		Policies			Discount (1)		Other (2)		2022
$	178	$	(20	)	$	-	$	(6	)	$	5	$	3	$	160

(1) - Recorded within premiums earned on MBIA's consolidated statement of operations.

(2) - The change primarily relates to the reversal of credit losses due to policy terminations.

As of December 31, 2023 and 2022, the weighted average risk-free rates used to discount future installment premiums were 3.0% and 2.9%, respectively, and the weighted average expected collection term of the premiums receivable was 8.75 years and 8.95 years, respectively. As of December 31, 2023 and 2022, reinsurance premiums payable was $4 million and is included in “Other liabilities” in the Company’s consolidated balance sheets. The reinsurance premiums payable is accreted and paid to reinsurers as premiums due to MBIA are accreted and collected.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Note 5: Insurance Premiums (continued)

The following table presents the undiscounted future amount of premiums expected to be collected and the period in which those collections are expected to occur:

	Expected
	Collection of
In millions	Premiums
Three months ending:
March 31, 2024	$	2
June 30, 2024		5
September 30, 2024		4
December 31, 2024		6
Twelve months ending:
December 31, 2025		15
December 31, 2026		13
December 31, 2027		12
December 31, 2028		12
Five years ending:
December 31, 2033		47
December 31, 2038		34
December 31, 2043 and thereafter		35
Total	$	185

The following table presents the unearned premium revenue balance and future expected premium earnings as of and for the periods presented:

									Total
									Expected
	Unearned		Expected Future						Future
	Premium		Premium Earnings						Premium
In millions	Revenue		Upfront		Installments		Accretion		Earnings
December 31, 2023	$	232
Three months ending:
March 31, 2024		224	$	4	$	4	$	1	$	9
June 30, 2024		217		3		4		1		8
September 30, 2024		210		3		4		1		8
December 31, 2024		203		3		4		1		8
Twelve months ending:
December 31, 2025		178		12		13		4		29
December 31, 2026		156		11		11		3		25
December 31, 2027		138		9		9		3		21
December 31, 2028		122		8		8		3		19
Five years ending:
December 31, 2033		63		27		32		11		70
December 31, 2038		30		11		22		7		40
December 31, 2043 and thereafter		-		8		22		4		34
Total			$	99	$	133	$	39	$	271