Investments (Tables)

3 Months Ended

Mar. 31, 2024

Text Block [Abstract]

Amortized Cost And Fair Value Of Available-For-Sale And Held-To-Maturity Investment Portfolios

The following tables present the amortized cost, allowance for credit losses, corresponding gross unrealized gains and losses and fair value for AFS investments in the Company’s consolidated investment portfolio as of March 31, 2024 and December 31, 2023:

			March 31, 2024
					Allowance		Gross		Gross
			Amortized		for Credit		Unrealized		Unrealized			Fair
In millions			Cost		Losses		Gains		Losses			Value
AFS Investments
Fixed-maturity investments:
	U.S. Treasury and government agency		$	567	$	-	$	-	$	(20	)	$	547
	State and municipal bonds			125		-		3		(9	)		119
	Foreign governments			14		-		1		(2	)		13
	Corporate obligations			511		-		1		(98	)		414
	Mortgage-backed securities:
		Residential mortgage-backed agency		143		-		-		(17	)		126
		Residential mortgage-backed non-agency		31		-		1		(6	)		26
		Commercial mortgage-backed		13		-		-		-			13
	Asset-backed securities:
		Collateralized debt obligations		96		-		1		(1	)		96
		Other asset-backed		44		-		-		(1	)		43
Total AFS investments			$	1,544	$	-	$	7	$	(154	)	$	1,397

			December 31, 2023
					Allowance		Gross		Gross
			Amortized		for Credit		Unrealized		Unrealized			Fair
In millions			Cost		Losses		Gains		Losses			Value
AFS Investments
Fixed-maturity investments:
	U.S. Treasury and government agency		$	721	$	-	$	1	$	(18	)	$	704
	State and municipal bonds			128		-		3		(8	)		123
	Foreign governments			19		-		1		(2	)		18
	Corporate obligations			505		-		2		(90	)		417
	Mortgage-backed securities:
		Residential mortgage-backed agency		149		-		-		(14	)		135
		Residential mortgage-backed non-agency		31		-		1		(5	)		27
		Commercial mortgage-backed		13		-		-		-			13
	Asset-backed securities:
		Collateralized debt obligations		96		-		1		(1	)		96
		Other asset-backed		26		-		-		(2	)		24
Total AFS investments			$	1,688	$	-	$	9	$	(140	)	$	1,557

Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments

The following table presents the distribution by contractual maturity of AFS fixed-maturity securities at amortized cost, net of allowance for credit losses, and fair value as of March 31, 2024. Contractual maturity may differ from expected maturity as borrowers may have the right to call or prepay obligations.

	AFS Securities
	Net
	Amortized		Fair
In millions	Cost		Value
Due in one year or less	$	418	$	417
Due after one year through five years		159		155
Due after five years through ten years		205		179
Due after ten years		435		342
Mortgage-backed and asset-backed		327		304
Total fixed-maturity investments	$	1,544	$	1,397

Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments

The following tables present the non-credit related gross unrealized losses related to AFS investments as of March 31, 2024 and December 31, 2023:

			March 31, 2024
			Less than 12 Months					12 Months or Longer					Total
			Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
In millions			Value		Losses			Value		Losses			Value		Losses
AFS Investments
Fixed-maturity investments:
	U.S. Treasury and government agency		$	25	$	-		$	140	$	(20	)	$	165	$	(20	)
	State and municipal bonds			27		(1	)		58		(8	)		85		(9	)
	Foreign governments			2		-			6		(2	)		8		(2	)
	Corporate obligations			25		(1	)		334		(97	)		359		(98	)
	Mortgage-backed securities:
		Residential mortgage-backed agency		9		-			112		(17	)		121		(17	)
		Residential mortgage-backed non-agency		3		-			21		(6	)		24		(6	)
		Commercial mortgage-backed		-		-			3		-			3		-
	Asset-backed securities:
		Collateralized debt obligations		-		-			72		(1	)		72		(1	)
		Other asset-backed		16		-			17		(1	)		33		(1	)
Total AFS investments			$	107	$	(2	)	$	763	$	(152	)	$	870	$	(154	)

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 7: Investments (continued)

			December 31, 2023
			Less than 12 Months					12 Months or Longer					Total
			Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
In millions			Value		Losses			Value		Losses			Value		Losses
AFS Investments
Fixed-maturity investments:
	U.S. Treasury and government agency		$	11	$	-		$	143	$	(18	)	$	154	$	(18	)
	State and municipal bonds			23		(1	)		57		(7	)		80		(8	)
	Foreign governments			-		-			6		(2	)		6		(2	)
	Corporate obligations			17		-			337		(90	)		354		(90	)
	Mortgage-backed securities:
		Residential mortgage-backed agency		-		-			118		(14	)		118		(14	)
		Residential mortgage-backed non-agency		3		-			21		(5	)		24		(5	)
		Commercial mortgage-backed		4		-			3		-			7		-
	Asset-backed securities:
		Collateralized debt obligations		-		-			89		(1	)		89		(1	)
		Other asset-backed		-		-			22		(2	)		22		(2	)
Total AFS investments			$	58	$	(1	)	$	796	$	(139	)	$	854	$	(140	)

Distribution Of Securities By Percentage Of Fair Value Below Book Value By More Than 5%

The following table presents the distribution of securities in an unrealized loss position for a continuous twelve-month period or longer where fair value was below book value by more than 5% as of March 31, 2024:

	AFS Securities
Percentage of Fair Value	Number of		Book Value		Fair Value
Below Book Value	Securities		(in millions)		(in millions)
> 5% to 15%		176	$	231	$	208
> 15% to 25%		108		277		226
> 25% to 50%		79		227		152
> 50%		2		-		-
Total		365	$	735	$	586

Securities Held In Unrealized Loss Position And Insured By Financial Guarantor and The Related Insurance Loss Reserve On Company Insured Investments

The following table provides information about securities held by the Company as of March 31, 2024 that were in an unrealized loss position and insured by a financial guarantor, along with the amount of insurance loss reserves corresponding to the par amount owned by the Company. The Company did not hold any securities in an unrealized loss position that were insured by a third-party financial guarantor as of March 31, 2024.

			Unrealized			Insurance Loss
In millions	Fair Value		Loss			Reserve (1)
Mortgage-backed	$	17	$	(4	)	$	22
Corporate obligations		78		(39	)		-
Total	$	95	$	(43	)	$	22

(1) - Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured and are discounted using a discount rate equal to the risk-free rate applicable to the currency and weighted average remaining life of the insurance contract and may differ from the fair value.

Gross Realized Gains and Losses From Sales Of Available-For-Sale Securities

The proceeds and the gross realized gains and losses from sales of fixed-maturity securities held as AFS for the three months ended March 31, 2024 and 2023 are as follows:

	Three Months Ended March 31,
In millions	2024			2023
Proceeds from sales	$	28		$	98
Gross realized gains	$	-		$	1
Gross realized losses	$	(1	)	$	(4	)

Portion Of Unrealized Gains Losses Recognized On Equity Investments

		Three Months Ended March 31,
In millions		2024			2023
Net gains (losses) recognized during the period on equity and trading securities		$	(2	)	$	1
Less:
	Net gains (losses) recognized during the period on equity and trading securities sold during the period		-			-
Unrealized gains (losses) recognized during the period on equity and trading securities still held at the reporting date		$	(2	)	$	1