Loss and Loss Adjustment Expense Reserves (Tables)

12 Months Ended

Dec. 31, 2023

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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 December 31, 2023 and 2022 are presented in the following table:

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Note 6: Loss and Loss Adjustment Expense Reserves (continued)

			As of December 31, 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			$	152		$	230		$	107		$	154
International and Structured Finance Insurance:
	Before VIE eliminations			32			335			32			488
	VIE eliminations			(1	)		(92	)		(2	)		(203	)
		Total international and structured finance insurance		31			243			30			285
	Total		$	183		$	473		$	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 Year Ended December 31, 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		December 31,
2022		Payments			Discount		Rates			Assumptions (1)		Revenue		2023
$	439	$	(214	)	$	15	$	(4	)	$	235	$	2	$	473

(1) - Includes changes in amount and timing of estimated payments and recoveries.

In millions		Changes in Loss and LAE Reserves for the Year Ended December 31, 2022
Gross Loss														Gross Loss
and LAE					Accretion							Changes in		and LAE
Reserves as of		Net Loss			of Claim		Changes in					Unearned		Reserves as of
December 31,		and LAE			Liability		Discount			Changes in		Premium		December 31,
2021		Payments (1)			Discount		Rates			Assumptions (2)		Revenue		2022
$	894	$	(960	)	$	21	$	(102	)	$	570	$	16	$	439

(1) - Amount is net of recoveries received.

(2) - Includes changes in amount and timing of estimated payments and recoveries.

Schedule Of Insurance Loss Recoverable

			Changes in Insurance Loss Recoverable
			for the Year Ended December 31, 2023
	Gross											Gross
	Recoverable											Recoverable
	as of					Accretion		Changes in				as of
	December 31,		Collections			of		Discount		Changes in		December 31,
In millions	2022		for Cases			Recoveries		Rates		Assumptions		2023
Insurance loss recoverable	$	137	$	(8	)	$	6	$	-	$	48	$	183

				Changes in Insurance Loss Recoverable
				for the Year Ended December 31, 2022
	Gross													Gross
	Recoverable													Recoverable
	as of						Accretion		Changes in					as of
	December 31,		Collections				of		Discount			Changes in		December 31,
In millions	2021		for Cases				Recoveries		Rates			Assumptions		2022
Insurance loss recoverable	$	1,296	$		(1,608	)	$	7	$	(22	)	$	464	$	137

Schedule Of Financial Guarantees And Related Claim Liability

The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of December 31, 2023:

				Surveillance Categories
				Caution		Caution		Caution
				List		List		List		Classified
$ in millions				Low		Medium		High		List		Total
Number of policies					35		-		-		94		129
Number of issues (1)					13		-		-		77		90
Remaining weighted average contract period (in years)					5.6		-		-		7.1		6.3
Gross insured contractual payments outstanding: (2)
		Principal		$	1,336	$	-	$	-	$	1,244	$	2,580
		Interest			1,614		-		-		504		2,118
			Total	$	2,950	$	-	$	-	$	1,748	$	4,698
Gross Claim Liability (3)				$	-	$	-	$	-	$	651	$	651
Less:
	Gross Potential Recoveries (4)				-		-		-		235		235
	Discount, net (5)				-		-		-		125		125
Net claim liability (recoverable)				$	-	$	-	$	-	$	291	$	291
Unearned premium revenue				$	9	$	-	$	-	$	7	$	16
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.