XML 49 R42.htm IDEA: XBRL DOCUMENT v2.4.0.6
Loss And Loss Adjustment Expense Reserves (Tables)
 12 Months Ended
Dec. 31, 2011
Insurance In Force [Abstract]  
Schedule Of Losses And Loss Adjustment Expense
Losses and LAE                     
     Year Ended December 31, 2011  

In millions

    Second-lien
RMBS		      Other      Total  

Losses and LAE related to actual and expected payments

    $ 163       $ 67       $ 230   

Recoveries of actual and expected payments

      (380)         72         (308)   
  

 

 

     

 

 

     

 

 

  

Gross losses incurred

      (217)         139         (78)   

Reinsurance

      0         (2)         (2)   
  

 

 

     

 

 

     

 

 

  

Losses and LAE

    $ (217)       $ 137       $ (80)   
  

 

 

     

 

 

     

 

 

  
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

      54         28         14         200        296   

Number of issues(1)

     32         18         11         130        191   

Remaining weighted average contract period (in years)

      8.2         5.6         6.0         9.6        8.8   

Gross insured contractual payments outstanding(2):

              

Principal

    $ 4,310       $ 1,213       $ 561       $ 10,420      $ 16,504   

Interest

      2,653         351         144         5,836        8,984   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total

    $ 6,963       $ 1,564       $ 705       $ 16,256      $ 25,488   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Gross claim liability

    $ —         $ —         $ —         $ 1,812      $ 1,812   

Less:

              

Gross potential recoveries

      —           —           —           3,813        3,813   

Discount, net

      —           —           —           177        177   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net claim liability (recoverable)

    $ —         $ —         $ —         $ (2,178 )    $ (2,178 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Unearned premium revenue

    $ 155       $ 16       $ 3       $ 134      $ 308   

(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.

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, 2010:

 

     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 Insurance Loss Reserves And Recoverables For Insured Obligations
     As of December 31,  

In millions

    2011     2010  

Loss reserves (claim liability)

    $ 781      $ 1,059   

LAE reserves

      55        70   
  

 

 

    

 

 

  

Loss and LAE reserves

    $ 836      $ 1,129   
  

 

 

    

 

 

  

Insurance claim loss recoverable

    $ (3,032 )    $ (2,531 ) 

LAE insurance loss recoverable

      (14 )      —     
  

 

 

    

 

 

  

Insurance loss recoverable

    $ (3,046 )    $ (2,531 ) 
  

 

 

    

 

 

  

Reinsurance recoverable on unpaid losses

    $ 15      $ 14   

Reinsurance recoverable on LAE reserves

      0        1   

Reinsurance recoverable on paid losses

      1        0   
  

 

 

    

 

 

  

Reinsurance recoverable on paid and unpaid losses

    $ 16      $ 15   
  

 

 

    

 

 

  
Schedule Of Company's Second-Lien RMBS Exposure, Gross Undiscounted Claim Liability And Potential Recoveries, Before The Elimination Of Amounts Related To Consolidated VIEs
Second-lien RMBS Exposure           Outstanding      Gross Undiscounted  

$ in billions

    Issues      Gross
Principal		      Gross
Interest		      Claim
Liability		      Potential
Recoveries		  

Insured issues designated as "Classified List"

      34       $ 7.5       $ 2.8       $ 0.6       $ 4.6   

Loan files reviewed with potential recoveries

      26       $ 7.1       $ 2.7       $ 0.6       $ 4.5   
Schedule Of Loss And Loss Adjustment Expense Reserves

In millions

    Changes in Loss and LAE Reserves for the Year Ended December 31, 2011     Gross Loss
and LAE
Reserves as of
December 31,
2011		  

Gross Loss

and LAE

Reserves 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  

    $ (523 )    $ 14       $ (20 )    $ 38       $ —       $ 193       $ 20       $ (15 )    $ 836   

 

   

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

The decrease in the Company's gross loss and LAE reserves reflected in the preceding table was primarily due to a decrease in reserves related to loss payments. Offsetting these decreases were changes in assumptions due to additional defaults and charge-offs of ineligible mortgage loans on insured second-lien RMBS issues outstanding as of December 31, 2010 and changes in the timing of payments.

 

In millions

   Changes in Loss and LAE Reserves for the Year Ended December 31, 2010     Gross Loss
and LAE
Reserves as of
December 31,
2010		  

Gross Loss

and LAE

Reserves as of
December 31,

2009

   Accounting
Transition
Adjustment(1) 		    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		    

$   1,580  

   $ (364 )    $ (1,046 )    $ 8      $ 28      $ 39      $ (3 )    $ 914      $ (28 )    $ 1      $ 1,129   

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

(1)—Reflects the adoption of the accounting principles for the consolidation of variable interest entities.

Schedule Of Insurance Loss Recoverable And Changes In Recoveries On Unpaid Losses
Changes in Insurance Loss Recoverable and Recoveries on Unpaid Losses
for the Year Ended December 31, 2011		     Gross
Reserve as of
December 31,
2011		  

In millions

     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		    

Insurance Loss Recoverable

   $ 2,531      $ (101 )    $ 57      $ 49      $ —      $ (227 )    $ 723      $ 14      $ 3,046   

Recoveries on Unpaid Losses

     896        —        16        68        —        —        (416 )      (2 )      562   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 3,427      $ (101 )    $ 73      $ 117      $ —      $ (227 )    $ 307      $ 12      $ 3,608   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Changes in Insurance Loss Recoverable and Recoveries on Unpaid Losses
for the Year Ended December 31, 2010		        

In millions

   Gross
Reserve as of
December 31,
2009		     Accounting
Transition
Adjustment(1) 		    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
December 31,
2010		  

Insurance Loss Recoverable

   $ 2,445      $ (594 )    $ (81 )    $ 36      $ (10 )    $ 33      $ (56 )    $ 790      $ (32 )    $ 2,531   

Recoveries on Unpaid Losses

     831        (215 )      —        15        (1 )      —        (8 )      259        15        896   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 3,276      $ (809 )    $ (81 )    $ 51      $ (11 )    $ 33      $ (64 )    $ 1,049      $ (17 )    $ 3,427   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

(1)—Reflects the adoption of the accounting principles for the consolidation of variable interest entities.

 
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
Amount of
Collections		     Changes in
Assumptions		     Total Estimated
Recoveries from Ineligible
Loans as of December 31,
2011		  
$                           2,517   $ 65      $ 35      $ (86 )    $ 29      $ 559      $ 3,119   

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

In millions

                                    
Total Estimated
Recoveries from Ineligible
Loans as of December 31,
2009		      Accretion of Future
Collections		      Changes in
Discount Rates		      Recoveries
(Collections)		     Changes in
Assumptions		      Total Estimated
Recoveries from Ineligible
Loans as of December 31,
2010		  
  $                            1,575       $ 51       $ 21       $ (67 )    $ 937       $ 2,517   

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  
Schedule Of Expenses Related To Remedial Actions For Insured Obligations
     Years ended December 31,  

In millions

        2011              2010              2009      

Loss adjustment expense incurred, gross

    $ 120       $ 91       $ 270   

Loss adjustment expense incurred, net

    $ 120       $ 86       $ 259