Investment Income and Gains and Losses (Tables)

6 Months Ended

Jun. 30, 2012

Total Investment Income From All Operations


	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2012		2011		2012		2011
Net investment income:
Fixed-maturity	$	54	$	87	$	113	$	194
Held-to-maturity		-		1		1		3
Short-term investments		3		4		3		4
Other investments		3		3		5		8
Consolidated VIEs		17		16		34		34

Net investment income		77		111		156		243
Realized gains and losses:
Fixed-maturity:
Gains		27		18		66		72
Losses		(19)		(37)		(176)		(77)

Net		8		(19)		(110)		(5)
Other investments:
Gains		5		-		6		9
Losses		(1)		-		(15)		-

Net		4		-		(9)		9

Total net realized gains (losses)⁽¹⁾		12		(19)		(119)		4

Total investment income	$	89	$	92	$	37	$	247

(1) - These balances are included in the “Net gains (losses) on financial instruments at fair value and foreign exchange” and “Net investment losses related to other-than-temporary impairments” line items on MBIA’s consolidated statements of operations.

Credit Losses Recognized In Earnings Related To OTTI Losses Recognized In Accumulated Other Comprehensive Income (Loss)


In millions	Three Months Ended June 30,				Six Months Ended June 30,
Credit Losses Recognized in Earnings Related to Other-Than- Temporary Impairments	2012		2011		2012		2011
Beginning balance	$	277	$	266	$	341	$	262
Additions for credit loss impairments recognized in the current period on securities previously impaired		1		20		3		27
Reductions for credit loss impairments previously recognized on securities sold during the period		(9)		(3)		(16)		(6)
Reductions for credit loss impairments previously recognized on securities impaired to fair value during the period⁽¹⁾		-		-		(59)		-

Ending balance	$	269	$	283	$	269	$	283

(1) - Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.

Significant Inputs Used In Schedule Of Measurement Of Credit Loss Component Recognized In Earnings For Each Significant Class Of ABS


	Six Months Ended June 30,
Asset-backed Securities	2012		2011
Expected size of losses⁽¹⁾:
Range⁽²⁾		9.73% to 100%		0.00% to 100.00%
Weighted average⁽³⁾		92.10%		67.10%
Current subordination levels⁽⁴⁾:
Range⁽²⁾		0.00% to 0.00%		0.00% to 14.19%
Weighted average⁽³⁾		0.00%		0.29%
Prepayment speed (annual CPR)⁽⁵⁾:
Range⁽²⁾		0.00 to 49.60		0.00 to 100.00
Weighted average⁽³⁾		11.59		19.40

(1) - Represents future expected credit losses on impaired assets expressed as a percentage of total outstanding balance.

(2) - Represents the range of inputs/assumptions based upon the individual securities within each category.

(3) - Calculated by weighting the relevant input/assumption for each individual security by the outstanding notional of the security.

(4) - Represents current level of credit protection (subordination) for the securities, expressed as a percentage of the balance of the collateral group backing the bond.

(5) - Values represent high and low points of lifetime vectors of constant prepayment rates.

Net Unrealized Gains (Losses), Including Portion Of Other-Than-Temporary Impairments Included In Accumulated Other Comprehensive Income (Loss)


In millions	As of June 30, 2012		As of December 31, 2011
Fixed-maturity:
Gains	$	314	$	262
Losses		(225)		(459)
Foreign exchange		3		(5)

Net		92		(202)
Other investments:
Gains		-		1
Losses		(1)		(19)

Net		(1)		(18)

Total		91		(220)
Deferred income tax provision (benefit)		18		(86)

Unrealized gains (losses), net	$	73	$	(134)

Change In Net Unrealized Gains/Losses


In millions	As of June 30, 2012		As of December 31, 2011
Fixed-maturity	$	294	$	386
Other investments		17		(6)

Total		311		380
Deferred income tax charged (credited)		104		122

Change in unrealized gains (losses), net	$	207	$	258