Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Text Block [Abstract]

Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following tables provide quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022:

		Fair Value as of				Range
		December 31,				(Weighted
In millions		2023		Valuation Techniques	Unobservable Input	Average)
Assets:
	Equity Investments	$	108	Discounted cash flow	EBITDA multiples (1)
					Discount rate (1)
					Weightings (1)
				Sum of the parts	Hard asset values (1)
					Type certificate values (1)
					Weightings (1)
Assets of consolidated VIEs:
	Loans receivable at fair value		35	Market prices of similar liabilities or internal cash flow models adjusted for financial guarantees provided to VIE obligations	Impact of financial guarantee	27% - 27% (27%) (2)
Liabilities of consolidated VIEs:
	Variable interest entity notes		78	Market prices of VIE assets adjusted for financial guarantees provided or market prices of similar liabilities	Impact of financial guarantee	74% - 74% (74%) (2)

(1) - Ranges for EBITDA multiples, discount rate, weightings, hard asset values and type certificate values are not meaningful.

(2) - Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value.

		Fair Value as of				Range
		December 31,				(Weighted
In millions		2022		Valuation Techniques	Unobservable Input	Average)
Assets:
	Equity Investments	$	115	Discounted cash flow	EBITDA multiples (1)
					Discount rate (1)
				Sum of the parts	Hard asset values (1)
					Type certificate values (1)
Assets of consolidated VIEs:
	Loans receivable at fair value		78	Market prices of similar liabilities or internal cash flow models adjusted for financial guarantees provided to VIE obligations	Impact of financial guarantee	12% - 88% (52%) (2)
Liabilities of consolidated VIEs:
	Variable interest entity notes		172	Market prices of VIE assets adjusted for financial guarantees provided or market prices of similar liabilities	Impact of financial guarantee	34% - 82% (68%) (2)

(1) - Range for EBITDA multiples, discount rate, hard asset values and type certificate values reflects their potential variability.

(2) - 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 December 31, 2023 and 2022:

				Fair Value Measurements at Reporting Date Using
				Quoted Prices in		Significant
				Active Markets		Other		Significant
				for Identical		Observable		Unobservable		Balance as of
				Assets		Inputs		Inputs		December 31,
In millions				(Level 1)		(Level 2)		(Level 3)		2023
Assets:
Fixed-maturity investments:
	U.S. Treasury and government agency			$	705	$	7	$	-	$	712
	State and municipal bonds				-		123		-		123
	Foreign governments				-		18		-		18
	Corporate obligations				-		496		1		497
	Mortgage-backed securities:
		Residential mortgage-backed agency			-		149		-		149
		Residential mortgage-backed non-agency			-		34		-		34
		Commercial mortgage-backed			-		14		-		14
	Asset-backed securities:
		Collateralized debt obligations			-		146		-		146
		Other asset-backed			-		46		-		46
			Total fixed-maturity investments		705		1,033		1		1,739
Money market securities					34		-		-		34
Equity investments					39		8		108		155
Cash and cash equivalents					104		-		-		104
Assets of consolidated VIEs:
	Mortgage-backed securities:
		Residential mortgage-backed non-agency			-		10		-		10
		Commercial mortgage-backed			-		10		-		10
	Asset-backed securities:
		Collateralized debt obligations			-		1		-		1
		Other asset-backed			-		1		-		1
	Cash				3		-		-		3
	Loans receivable at fair value:
		Residential loans receivable			-		-		35		35
	Other assets				-		-		2		2
Total assets				$	885	$	1,063	$	146	$	2,094
Liabilities:
Medium-term notes				$	-	$	-	$	40	$	40
Derivative liabilities:
	Insured credit derivatives				-		1		-		1
	Non-insured interest rate derivatives				-		1		-		1
Liabilities of consolidated VIEs:
	Variable interest entity notes				-		-		78		78
	Currency derivatives				-		-		14		14
Total liabilities				$	-	$	2	$	132	$	134

				Fair Value Measurements at Reporting Date Using
				Quoted Prices in		Significant
				Active Markets		Other		Significant
				for Identical		Observable		Unobservable		Balance as of
				Assets		Inputs		Inputs		December 31,
In millions				(Level 1)		(Level 2)		(Level 3)		2022
Assets:
Fixed-maturity investments:
	U.S. Treasury and government agency			$	463	$	54	$	-	$	517
	State and municipal bonds				-		323		-		323
	Foreign governments				-		21		-		21
	Corporate obligations				-		797		-		797
	Mortgage-backed securities:
		Residential mortgage-backed agency			-		207		-		207
		Residential mortgage-backed non-agency			-		95		-		95
		Commercial mortgage-backed			-		24		-		24
	Asset-backed securities:
		Collateralized debt obligations			-		159		-		159
		Other asset-backed			-		127		-		127
			Total fixed-maturity investments		463		1,807		-		2,270
Money market securities					234		-		-		234
Equity investments					38		19		115		172
Cash and cash equivalents					50		-		-		50
Assets of consolidated VIEs:
	Corporate obligations				-		4		-		4
	Mortgage-backed securities:
		Residential mortgage-backed non-agency			-		22		-		22
		Commercial mortgage-backed			-		9		-		9
	Asset-backed securities:
		Collateralized debt obligations			-		5		-		5
		Other asset-backed			-		7		-		7
	Cash				16		-		-		16
	Loans receivable at fair value:
		Residential loans receivable			-		-		78		78
	Other assets				-		-		23		23
Total assets				$	801	$	1,873	$	216	$	2,890
Liabilities:
Medium-term notes					-		-		41		41
Derivative liabilities:
	Non-insured interest rate derivatives				-		49		-		49
Liabilities of consolidated VIEs:
	Variable interest entity notes				-		-		172		172
	Currency derivatives				-		-		6		6
Total liabilities				$	-	$	49	$	219	$	268

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
		Quoted Prices in		Significant		Significant		Fair Value		Carry Value
		Active Markets for		Other Observable		Unobservable		Balance as of		Balance as of
		Identical Assets		Inputs		Inputs		December 31,		December 31,
In millions		(Level 1)		(Level 2)		(Level 3)		2023		2023
Assets:
	Other investments	$	-	$	-	$	3	$	3	$	3
Total assets		$	-	$	-	$	3	$	3	$	3
Liabilities:
	Long-term debt	$	-	$	287	$	-	$	287	$	2,585
	Medium-term notes		-		-		291		291		455
	Investment agreements		-		-		243		243		221
Liabilities of consolidated VIEs:
	Variable interest entity loans payable		-		-		3		3		3
Total liabilities		$	-	$	287	$	537	$	824	$	3,264
Financial Guarantees:
	Gross liability (recoverable)	$	-	$	-	$	837	$	837	$	522
	Ceded recoverable (liability)		-		-		20		20		16

		Fair Value Measurements at Reporting Date Using
		Quoted Prices in		Significant		Significant		Fair Value		Carry Value
		Active Markets for		Other Observable		Unobservable		Balance as of		Balance as of
		Identical Assets		Inputs		Inputs		December 31,		December 31,
In millions		(Level 1)		(Level 2)		(Level 3)		2022		2022
Liabilities:
	Long-term debt	$	-	$	330	$	-	$	330	$	2,428
	Medium-term notes		-		-		310		310		458
	Investment agreements		-		-		257		257		233
Liabilities of consolidated VIEs:
	Variable interest entity loans payable		-		-		2		2		2
Total liabilities		$	-	$	330	$	569	$	899	$	3,121
Financial Guarantees:
	Gross liability (recoverable)	$	-	$	-	$	864	$	864	$	568
	Ceded recoverable (liability)		-		-		21		21		15

Changes In Level 3 Assets Measured At Fair Value On A Recurring Basis

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2023

																								Change in			Change in
																								Unrealized			Unrealized
																								Gains			Gains
																								(Losses) for			(Losses) for
																								the Period			the Period
																								Included in			Included in
			Total																					Earnings for			OCI for
			Gains /			Unrealized																		Assets			Assets
			(Losses)			Gains /																		still held			still held
	Balance		Included			(Losses)												Transfers		Transfers				as of			as of
	Beginning		in			Included												into		out of		Ending		December 31,			December 31,
In millions	of Year		Earnings			in OCI(1)		Purchases		Issuances		Settlements			Sales			Level 3		Level 3		Balance		2023			2023(1)
Assets:
Corporate obligations	$	-	$	-		$	-	$	-	$	-	$	-		$	-		$	1	$	-	$	1	$	-		$	-
Equity investments		115		(7	)		-		-		-		-			-			-		-		108		(7	)		-
Assets of consolidated VIEs:
Loans receivable -    residential		78		(33	)		-		-		-		(9	)		(1	)		-		-		35		1			-
Other		23		4			-		-		-		-			(25	)		-		-		2		(1	)		-
Total assets	$	216	$	(36	)	$	-	$	-	$	-	$	(9	)	$	(26	)	$	1	$	-	$	146	$	(7	)	$	-

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2022

																								Change in			Change in
																								Unrealized			Unrealized
																								Gains			Gains
																								(Losses) for			(Losses) for
																								the Period			the Period
																								Included in			Included in
			Total																					Earnings for			Earnings for
			Gains /			Unrealized																		Assets			Assets
			(Losses)			Gains /																		still held			still held
	Balance,		Included			(Losses)												Transfers		Transfers				as of			as of
	Beginning		in			Included												into		out of		Ending		December 31,			December 31,
In millions	of Year		Earnings			in OCI(1)		Purchases		Issuances		Settlements			Sales			Level 3		Level 3		Balance		2022			2022(1)
Assets:
Residential mortgage-   backed non-agency	$	-	$	2		$	-	$	59	$	-	$	(11	)	$	(50	)	$	-	$	-	$	-	$	-		$	-
Equity securities		-		14			-		101		-		-			-			-		-		115		-			-
Assets of consolidated VIEs:
Collateralized debt obligations		4		-			-		-		-		(4	)		-			-		-		-		-			-
Loans receivable -   residential		77		10			-		-		-		(9	)		-			-		-		78		5			-
Currency derivatives		9		(9	)		-		-		-		-			-			-		-		-		(9	)		-
Other		14		9			-		-		-		-			-			-		-		23		9			-
Total assets	$	104	$	26		$	-	$	160	$	-	$	(24	)	$	(50	)	$	-	$	-	$	216	$	5		$	-

Changes In Level 3 Liabilities Measured At Fair Value On A Recurring Basis

																								Change in		Change in
																								Unrealized		Unrealized
																								(Gains)		(Gains)
																								Losses for		Losses for
																								the Period		the Period
																								Included in		Included in
			Total		Unrealized																			Earnings for		OCI for
			(Gains) /		(Gains) /																			Liabilities		Liabilities
			Losses		Losses																			still held		still held
	Balance,		Included		Included in													Transfers		Transfers				as of		as of
	Beginning		in		Credit Risk													into		out of		Ending		December 31,		December 31,
In millions	of Year		Earnings		in OCI(2)			Purchases		Issuances		Settlements			Sales			Level 3		Level 3		Balance		2023		2023(2)
Liabilities:
Medium-term notes	$	41	$	5	$	(6	)	$	-	$	-	$	-		$	-		$	-	$	-	$	40	$	5	$	(6	)
Liabilities of consolidated VIEs:
VIE notes		172		25		(38	)		-		62		(46	)		(97	)		-		-		78		2		2
Currency derivatives		6		8		-			-		-		-			-			-		-		14		8		-
Total liabilities	$	219	$	38	$	(44	)	$	-	$	62	$	(46	)	$	(97	)	$	-	$	-	$	132	$	15	$	(4	)

(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.

																								Change in			Change in
																								Unrealized			Unrealized
																								(Gains)			(Gains)
																								Losses for			Losses for
																								the Period			the Period
																								Included in			Included in
			Total																					Earnings for			OCI for
			(Gains) /			Unrealized																		Liabilities			Liabilities
			Losses			(Gains) /																		still held			still held
	Balance,		Included			Losses												Transfers		Transfers				as of			as of
	Beginning		in			Included												into		out of		Ending		December 31,			December 31,
In millions	of Year		Earnings			in OCI(2)			Purchases		Issuances		Settlements			Sales		Level 3		Level 3		Balance		2022			2022(2)
Liabilities:
Medium-term notes	$	98	$	(24	)	$	16		$	-	$	-	$	(49	)	$	-	$	-	$	-	$	41	$	(23	)	$	17
Liabilities of consolidated VIEs:
VIE notes		291		14			(2	)		-		-		(131	)		-		-		-		172		(10	)		14
Currency derivatives		-		6			-			-		-		-			-		-		-		6		6			-
Total liabilities	$	389	$	(4	)	$	14		$	-	$	-	$	(180	)	$	-	$	-	$	-	$	219	$	(27	)	$	31

(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.

Gains And Losses (Realized And Unrealized) Included In Earnings Pertaining To Level 3 Assets And Liabilities

Gains and losses (realized and unrealized) included in earnings relating to Level 3 assets and liabilities for the years ended December 31, 2023, 2022 and 2021 are reported on the Company’s consolidated statements of operations as follows:

											Change in Unrealized Gains (Losses)
											for the Period Included in Earnings
		Total Gains (Losses)									for Assets and Liabilities still
In millions		Included in Earnings									held as of December 31,
		2023			2022			2021			2023			2022		2021
Revenues:
	Net gains (losses) on financial instruments   at fair value and foreign exchange	$	(12	)	$	40		$	17		$	(12	)	$	23	$	17
	Revenues of consolidated VIEs (1)		(62	)		(10	)		(15	)		(10	)		9		-
Total		$	(74	)	$	30		$	2		$	(22	)	$	32	$	17

(1) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" and "Other net realized gains (losses)-VIE" on MBIA's consolidated statements of operations.

Changes In Fair Value Included In The Company's Consolidated Statements Of Operations

The following table presents the gains and (losses) included in the Company's consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021 for financial instruments for which the fair value option was elected:

		Years Ended December 31,
In millions		2023			2022			2021
Investments carried at fair value (1)		$	1		$	(17	)	$	3
Fixed-maturity securities held at fair value-VIE (3)			(4	)		(5	)		4
Loans receivable and other instruments at fair value:
	Residential mortgage loans (3)		(33	)		10			32
Loan repurchase commitments (2)			-			-			(4	)
Other assets-VIE (3)			4			9			-
Medium-term notes (1)			(5	)		24			17
Variable interest entity notes (3)			(25	)		(20	)		(50	)

(1) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange" on MBIA's consolidated statements of operations.

(2) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" on MBIA's consolidated statements of operations.

(3) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" and "Other net realized gains (losses)-VIE" on MBIA's consolidated statements of operations.

Difference Between Aggregate Fair Value And The Aggregate Remaining Contractual Principal Balance Outstanding

The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of December 31, 2023 and 2022 for loans and notes for which the fair value option was elected:

		As of December 31, 2023						As of December 31, 2022
		Contractual						Contractual
		Outstanding		Fair				Outstanding		Fair
In millions		Principal		Value		Difference		Principal		Value		Difference
Loans receivable at fair value:
	Residential mortgage loans - current	$	18	$	18	$	-	$	39	$	39	$	-
	Residential mortgage loans (90 days or more past due)		58		17		41		149		39		110
Total loans receivable and other instruments at fair value		$	76	$	35	$	41	$	188	$	78	$	110
Variable interest entity notes		$	328	$	78	$	250	$	780	$	172	$	608
Medium-term notes		$	55	$	40	$	15	$	53	$	41	$	12