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Loss and Loss Adjustment Expense Reserves (Tables)
 3 Months Ended
Mar. 31, 2024
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 March 31, 2024 and December 31, 2023 are presented in the following table:

 

 

 

 

As of March 31, 2024

 

 

As of December 31, 2023

 

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

 

 

$

234

 

 

$

152

 

 

$

230

 

International and Structured Finance Insurance:

 

 

 

 

 

 

 

 

 

 

 

 

Before VIE eliminations

 

30

 

 

 

321

 

 

 

32

 

 

 

335

 

 

VIE eliminations

 

(1

)

 

 

(85

)

 

 

(1

)

 

 

(92

)

 

 

Total international and structured finance insurance

 

29

 

 

 

236

 

 

 

31

 

 

 

243

 

 

Total

$

179

 

 

$

470

 

 

$

183

 

 

$

473

 

 

(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 Three Months Ended March 31, 2024

 

 

 

 

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

 

 

March 31,

 

2023

 

 

Payments

 

 

Discount

 

 

Rates

 

 

Assumptions (1)

 

 

Revenue

 

 

2024

 

$

473

 

 

$

(19

)

 

$

4

 

 

$

(11

)

 

$

26

 

 

$

(3

)

 

$

470

 

 

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

 

 

 

 

 

 

 

Changes in Insurance Loss Recoverable

 

 

 

 

 

 

 

 

 

for the Three Months Ended March 31, 2024

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

Recoverable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recoverable

 

 

 

 

 

as of

 

 

 

 

 

Accretion

 

 

Changes in

 

 

 

 

 

as of

 

 

 

 

 

December 31,

 

 

Collections

 

 

of

 

 

Discount

 

 

Changes in

 

 

March 31,

 

In millions

 

 

2023

 

 

for Cases

 

 

Recoveries

 

 

Rates

 

 

Assumptions

 

 

2024

 

Insurance loss recoverable

 

 

$

183

 

 

$

(2

)

 

$

2

 

 

$

(1

)

 

$

(3

)

 

$

179

 

 

 
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 March 31, 2024:

 

 

 

 

 

 

Surveillance Categories

 

 

 

 

 

 

Caution

 

 

Caution

 

 

Caution

 

 

 

 

 

 

 

 

 

 

 

 

List

 

 

List

 

 

List

 

 

Classified

 

 

 

 

$ in millions

 

Low

 

 

Medium

 

 

High

 

 

List

 

 

Total

 

Number of policies

 

 

30

 

 

 

-

 

 

 

-

 

 

 

96

 

 

 

126

 

Number of issues (1)

 

 

11

 

 

 

-

 

 

 

-

 

 

 

78

 

 

 

89

 

Remaining weighted average contract period (in years)

 

 

5.9

 

 

 

-

 

 

 

-

 

 

 

6.4

 

 

 

6.2

 

Gross insured contractual payments outstanding: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

$

795

 

 

$

-

 

 

$

-

 

 

$

1,686

 

 

$

2,481

 

 

 

Interest

 

 

1,396

 

 

 

-

 

 

 

-

 

 

 

629

 

 

 

2,025

 

 

 

 

Total

 

$

2,191

 

 

$

-

 

 

$

-

 

 

$

2,315

 

 

$

4,506

 

Gross Claim Liability (3)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

852

 

 

$

852

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Potential Recoveries (4)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

467

 

 

 

467

 

 

Discount, net (5)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

91

 

 

 

91

 

Net claim liability (recoverable)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

294

 

 

$

294

 

Unearned premium revenue

 

$

5

 

 

$

-

 

 

$

-

 

 

$

10

 

 

$

15

 

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, 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.