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Loss And Loss Adjustment Expense Reserves (Tables)
 6 Months Ended
Jun. 30, 2011
Loss And Loss Adjustment Expense Reserves  
Schedule Of Economic Loss Activity

Aggregate Losses and LAE (change in expected net payments)

 

In millions

    Six Months Ended June 30, 2011  
   RMBS     Non-RMBS     Total  

Financial guarantee insurance losses and LAE (1)

   $ (50 )    $ 64      $ 14   

Financial guarantee insurance losses and LAE related to consolidated VIEs (eliminated in consolidation) (2)

     (39 )      51        12   

Insured credit derivative impairments and LAE (statutory basis) (3)

     -         (34 )      (34 ) 
  

 

 

    

 

 

    

 

 

  

Total aggregate losses and LAE

    $ (89 )    $ 81      $ (8 ) 
  

 

 

    

 

 

    

 

 

  

(1) - Represents "Losses and loss adjustment expense" as reported on the Company's consolidated statement of operations.

(2) - Represents losses and LAE eliminated upon the consolidation of insured VIEs.

(3) - Represents statutory losses and LAE for insurance contracts accounted for as derivatives. Realized and unrealized gains and losses on these contracts under U.S. GAAP are recorded in "Net change in fair value of insured derivatives" on the Company's consolidated statement of operations.

 

Aggregate Loss and LAE Reserves              

In millions

        As of June 30, 
2011		      As of December 31,
2010		  

Financial guarantee insurance (1)

   $ 865       $ 1,129   

Financial guarantee insurance reserves related to consolidated VIEs (eliminated in consolidation) (2)

     352         377   

Insured credit derivative impairments and LAE (statutory basis) (3)

     2,047         2,490   

Reinsurance

      (16)         (15)   
  

 

 

     

 

 

  

Total aggregate loss and LAE reserves

    $ 3,248       $ 3,981   
  

 

 

     

 

 

  

(1) - Represents "Loss and loss adjustment expense reserves" as reported on the Company's consolidated balance sheets.

 

(2) - Represents loss and LAE reserves eliminated upon the consolidation of insured VIEs.

 

(3) - Represents statutory loss and LAE reserves for insurance contracts accounted for as derivatives under U.S. GAAP. The fair values of these contracts are recorded in "Derivative liabilities" on the Company's consolidated balance sheets.

 

 

 

 

Aggregate Insurance Loss Recoverable              

In millions

        As of June 30, 
2011		      As of December 31,
2010		  

Financial guarantee insurance (1)

   $ 2,658       $ 2,531   

Financial guarantee insurance reserves related to consolidated VIEs (eliminated in consolidation) (2)

     1,159         1,061   

Insured credit derivative impairments and LAE (statutory basis) (3)

     66         74   

Reinsurance

      (8)         (4)   
  

 

 

     

 

 

  

Total aggregate insurance loss recoverable

    $ 3,875       $ 3,662   
  

 

 

     

 

 

  

(1) - Represents "Insurance loss recoverable" as reported on the Company's consolidated balance sheets.

 

(2) - Represents insurance loss recoverable eliminated upon the consolidation of insured VIEs.

 

(3) - Represents statutory recoveries for insurance contracts accounted for as derivatives under U.S. GAAP. The fair values of these contracts are recorded in "Derivative liabilities" on the Company's consolidated balance sheets.
Schedule Of Losses And Loss Adjustment Expenses

Losses and LAE

 

    Six Months Ended June 30, 2011  

In millions

        RMBS              Non-RMBS              Total      
Losses and LAE related to actual and expected payments    $ 16       $ (54)       $ (38)   
Recoveries of actual and expected payments      (66)         120         54   
  

 

 

     

 

 

     

 

 

  

Gross losses incurred

      (50)         66         16   

Reinsurance

      0         (2)         (2)   
  

 

 

     

 

 

     

 

 

  

Losses and LAE

    $ (50)       $ 64       $ 14   
  

 

 

     

 

 

     

 

 

  
Schedule Of Financial Guarantees And Related Claim Liability  
   Surveillance Categories  

$ in millions

        Caution    
List
Low		          Caution    
List
Medium		          Caution    
List
High		          Classified    
List		          Total      

Number of policies

      50         43         10         189         292   

Number of issues(1)

     34         27         5         123         189   

Remaining weighted average contract period (in years)

      9.0         5.3         7.7         9.5         8.9   

Gross insured contractual payments outstanding(2):

               

Principal

    $ 4,247       $ 1,861       $ 206       $ 10,658       $ 16,972   

Interest

      2,776         559         67         5,959         9,361   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 7,023       $ 2,420       $ 273       $ 16,617       $ 26,333   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Gross claim liability

    $ -       $ -       $ -       $ 2,039       $ 2,039   

Less:

               

Gross potential recoveries

      -         -         -         3,663         3,663   

Discount, net

      -         -         -         158         158   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net claim liability (recoverable)

    $ -       $ -       $ -       $ (1,782)       $ (1,782)   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Unearned premium revenue

    $ 154       $ 17       $ 2       $ 137       $ 310   

(1) - An "issue" represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments.

 

(2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.

     Surveillance Categories  

$ in millions

        Caution    
List
Low		          Caution    
List
Medium		          Caution    
List
High		          Classified    
List		          Total      

Number of policies

      199         43         12         179         433   

Number of issues(1)

     40         26         12         110         188   

Remaining weighted average contract period (in years)

      9.4         6.9         9.1         9.4         9.2   

Gross insured contractual payments outstanding(2):

               

Principal

    $ 5,041       $ 1,419       $ 1,446       $ 11,190       $ 19,096   

Interest

      3,439         536         746         6,132         10,853   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 8,480       $ 1,955       $ 2,192       $ 17,322       $ 29,949   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Gross claim liability

    $ -       $ -       $ -       $ 2,692       $ 2,692   

Less:

               

Gross potential recoveries

      -         -         -         4,045         4,045   

Discount, net

      -         -         -         27         27   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net claim liability (recoverable)

    $ -       $ -       $ -       $ (1,380)       $ (1,380)   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Unearned premium revenue

    $ 148       $ 16       $ 72       $ 141       $ 377   

(1) - An "issue" represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments.

 

(2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.
Schedule Of Company's RMBS Exposure Gross Undiscounted Claim Liability And Potential Recoveries Before The Elimination Of Amounts Related To Consolidated VIE's
RMBS Exposure           Outstanding      Gross Undiscounted  
            Gross      Gross      Claim      Potential  

$ in billions

    Issues      Principal      Interest      Liability      Recoveries  

Insured issues designated as "Classified List"

      47         $ 9.4         $ 4.0         $ 1.1         $ 4.3   

Loan files reviewed with recognized recoveries

      28         $ 8.2         $ 3.3         $ 0.8         $ 4.3   
Schedule Of Insurance Loss Reserves And Recoverables For Insured Obligations

In millions

    As of
June 30, 2011		      As of
December 31, 2010		  

Loss reserves (claim liability)

      $ 795         $ 1,059   

LAE reserves

      70         70   
  

 

 

     

 

 

  

Loss and LAE reserves

      $ 865         $ 1,129   
  

 

 

     

 

 

  

Insurance claim loss recoverable

      $ (2,655)         $ (2,531)   

LAE insurance loss recoverable

      (3)         -    
  

 

 

     

 

 

  

Insurance loss recoverable

      $ (2,658)         $ (2,531)   
  

 

 

     

 

 

  
Reinsurance recoverable on unpaid losses      $ 16         $ 14   
Reinsurance recoverable on LAE reserves      0         1   
Reinsurance recoverable on paid losses      4         -    
  

 

 

     

 

 

  

Reinsurance recoverable on paid and unpaid losses

      $ 20         $ 15   
  

 

 

     

 

 

  
Schedule Of Loss And Loss Adjustment Expenses Reserve

In millions

     Changes in Loss and LAE Reserves for the Six Months Ended June 30, 2011     Gross Loss
and LAE
Reserve as
of June 30,
2011		  

Gross Loss
and LAE
Reserve as of
December 31,
2010

     Loss Payments
for Cases with
Reserves		     Accretion of
Claim
Liability
Discount		     Changes in
Discount
Rates		     Changes in
Timing of
Payments		     Changes in
Amount of
Net Payments		     Changes in
Assumptions		     Changes in
Unearned
Premium
Revenue		     Change in
LAE
Reserves		    
  $ 1,129        $ (324 )      $ 9        $ (47 )      $ 20        $ (1 )      $ 64        $ 16        $ (1 )      $ 865   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Schedule Of Insurance Loss Recoverable And Changes In Recoveries On Unpaid Losses
    Changes in Insurance Loss Recoverable and Recoveries on Unpaid Losses for the Six Months Ended June 30, 2011  

In millions

   Gross Reserve
as of
December 31,
2010		     Collections for
Cases with
Recoveries		     Accretion of
Recoveries		     Changes in
Discount
Rates		     Changes in
Timing of
Collections		     Changes in
Amount of
Collections		     Changes in
Assumptions		     Change in LAE
Recoveries		     Gross Reserve
as of
June 30, 2011		  
Insurance Loss Recoverable     $ 2,531        $ (3)        $ 34        $ 20        $ -         $ (116)        $ 190        $ 2        $ 2,658   
Recoveries on Unpaid Losses     896        -         10        2        -         -         (212)        5        701   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

     $ 3,427        $ (3)        $ 44        $ 22        $ -         $ (116)        $ (22)        $ 7        $ 3,359   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Schedule Of Total Estimated Recoveries From Ineligible Mortgage Loans
In millions                                     

Total Estimated
Recoveries from Ineligible
Loans as of December 31,
2010

      Accretion of Future
Collections		      Changes in
Discount Rates		      Recoveries
(Collections)		      Changes in
Assumptions		      Total Estimated
Recoveries from Ineligible
Loans as of June 30,
2011		  
  $ 2,517         $ 38         $ 12         $ -          $ 174         $ 2,741   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Schedule Of Expenses Related To Remedial Actions For Insured Obligations
     Three Months Ended June 30,      Six Months Ended June 30,  

In millions

    2011      2010      2011      2010  

Loss adjustment expense incurred, gross

      $ 30         $ 2         $ 45         $ 16   

Loss adjustment expense incurred, net

      $ 30         $ 3         $ 45         $ 15