XML 21 R39.htm IDEA: XBRL DOCUMENT v2.4.0.6
Loss And Loss Adjustment Expense Reserves (Tables)
 12 Months Ended
Dec. 31, 2012
Schedule Of Losses And Loss Adjustment Expenses
Losses and LAE                            
      Year Ended December 31, 2012  

In millions

    Second-lien
RMBS		      First-lien
RMBS		      Other(1)      Total  

Losses and LAE related to actual and expected payments

    $ 220      $ 147      $ 112      $ 479  

Recoveries of actual and expected payments

      (371)         1        (58)         (428)   
  

 

 

     

 

 

     

 

 

     

 

 

  

Gross losses incurred

      (151)         148        54        51  

Reinsurance

      —        (1)         —        (1)   
  

 

 

     

 

 

     

 

 

     

 

 

  

Losses and LAE

    $ (151)       $ 147      $ 54      $ 50  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(1)—Primarily financial guarantee CMBS.
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        25        10        206        295  

Number of issues(1)

      29        15        10        136        190  

Remaining weighted average contract period (in years)

      8.1        4.0        7.6        9.5        8.7  

Gross insured contractual payments outstanding(2):

               

Principal

    $ 4,250      $ 1,176      $ 373      $ 9,458      $ 15,257  

Interest

      2,721        256        120        5,264        8,361  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 6,971      $ 1,432      $    493      $ 14,722      $ 23,618  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Gross claim liability

    $ —      $ —      $ —      $ 1,589      $ 1,589  

Less:

               

Gross potential recoveries

      —        —        —        4,109        4,109  

Discount, net

      —        —        —        229        229  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net claim liability (recoverable)

    $ —      $ —      $ —      $ (2,749)       $ (2,749)   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Unearned premium revenue

    $ 142      $ 11      $ 3      $ 122      $ 278  

 

(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, 2011:

 

     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.
Present Value Of Probability-Weighted Future Claim Payments And Recoveries
     As of December 31,  

In millions

    2012      2011  

Loss reserves (claim liability)

    $ 790      $ 781  

LAE reserves

      63        55  
  

 

 

     

 

 

  

Loss and LAE reserves

    $ 853      $ 836  
  

 

 

     

 

 

  

Insurance claim loss recoverable

    $ (3,610)       $ (3,032)   

LAE insurance loss recoverable

      (38)         (14)   
  

 

 

     

 

 

  

Insurance loss recoverable

    $ (3,648)       $ (3,046)   
  

 

 

     

 

 

  

Reinsurance recoverable on unpaid losses

    $ 14      $ 15  

Reinsurance recoverable on paid losses

      1        1  
  

 

 

     

 

 

  

Reinsurance recoverable on paid and unpaid losses

    $ 15      $ 16  
  

 

 

     

 

 

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

$ in billions

    Issues      Gross
Principal		      Gross
Interest		      Claim
Liability		      Potential
Recoveries		  

Excluding Consolidated VIEs:

               

Insured issues designated as “Classified List”

      22      $ 4.0      $ 1.6      $ 0.2      $ 3.5  

Insured issues reviewed with potential recoveries

      15      $ 3.7      $ 1.5      $ 0.2      $ 3.4  

Consolidated VIEs:

               

Insured issues designated as “Classified List”

      12      $ 2.2      $ 0.8      $ 0.1      $ 1.4  

Insured issues reviewed with potential recoveries

      11      $ 2.1      $ 0.8      $ 0.1      $ 1.4  
Schedule Of Loss And Loss Adjustment Expenses Reserves

In millions

      Changes in Loss and LAE Reserves for the Year Ended December 31, 2012      Gross Loss
and LAE
Reserves as of
December 31,
2012		  
Gross Loss
and LAE
Reserves as of
December 31,
2011		      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		      Changes
in LAE
Reserves		     
$                 836      $ (395)       $ 11      $ (26)       $ 52      $ 46      $ 319      $ 2      $ 8      $ 853  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

The increase in the Company’s gross loss and LAE reserves reflected in the preceding table was primarily due to changes in assumptions on insured first-lien and second-lien RMBS issues and changes in timing and the amount of payments. These were offset by decreases in reserves related to loss payments on insured first-lien and second-lien RMBS issues outstanding as of December 31, 2011.

 

In millions

      Changes in Loss and LAE Reserves for the Year Ended 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		      Changes
in LAE
Reserves		      Gross Loss
and LAE
Reserves as of
December 31,
2011		  
$ 1,129      $ (523)       $       14      $    (20)       $         38      $ —       $           193      $         20      $    (15)       $           836  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
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, 2012		      Gross
Reserve as of
December 31,
2012		  

In millions

    Gross
Reserve as of
December 31,
2011		      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		      Changes in
LAE
Recoveries		     

Insurance loss recoverable

    $ 3,046      $ (13)       $ 32      $ 4      $ —       $ (145)       $ 700      $ 24      $ 3,648  

Recoveries on unpaid losses

      562        —        7        12        —        —        (238)         (11)         332  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 3,608      $ (13)       $ 39      $ 16      $ —      $ (145)       $ 462      $ 13      $ 3,980  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

            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

    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		      Changes 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  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Schedule Of Total Estimated Recoveries From Ineligible Second-Lien Mortgage Loans

In millions

                                      
Total Estimated
Recoveries from Ineligible
Mortgage Loans
as of December 31,
2011		     Accretion of Future
Collections		     Changes in
Discount Rates		     Recoveries
(Collections)		     Changes in
Amount of
Collections		     Changes in
Assumptions		     Total Estimated
Recoveries from Ineligible
Mortgage Loans as of
December 31, 2012		  
$                                  3,119     $ 36     $ 2     $ —     $ —     $ 426     $ 3,583  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

In millions

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

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

In millions

        2012              2011              2010      

Loss adjustment expense incurred, gross

    $ 137      $ 120      $ 91