Schedule II- Parent Company Financials

12 Months Ended

Dec. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure

SCHEDULE II
MBIA INC. (PARENT COMPANY)
CONDENSED BALANCE SHEETS
(In millions except share and per share amounts)
			December 31, 2013		December 31, 2012
Assets
Investments:
	Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $703 and $825)		$	728	$	843
	Fixed-maturity securities at fair value			32		13
	Investments pledged as collateral, at fair value (amortized cost $463 and $510)			375		443
	Short-term investments held as available-for-sale, at fair value (amortized cost $171 and $235)			171		236
	Other investments			3		4
		Total investments		1,309		1,539
Cash and cash equivalents				140		92
Investment in wholly-owned subsidiaries				3,890		4,127
Deferred income taxes, net				791		581
Other assets				140		183
		Total assets	$	6,270	$	6,522
Liabilities and Shareholders' Equity
Liabilities:
	Investment agreements			654		893
	Securities sold under agreements to repurchase			0		32
	Long-term debt			592		731
	Affiliate loans payable			1,510		1,681
	Other liabilities			236		12
		Total liabilities		2,992		3,349
Shareholders' Equity:
	Preferred stock, par value $1 per share; authorized shares--10,000,000; issued and outstanding--none			0		0
	Common stock, par value $1 per share; authorized shares--400,000,000; issued shares--277,812,430
		and 277,405,039		278		277
	Additional paid-in capital			3,115		3,076
	Retained earnings			2,289		2,039
	Accumulated other comprehensive income (loss), net of tax of $25 and $26			(86)		56
	Treasury stock, at cost--85,562,546 and 81,733,530 shares			(2,318)		(2,275)
		Total shareholders' equity of MBIA Inc.		3,278		3,173
		Total liabilities and shareholders' equity	$	6,270	$	6,522
The condensed financial statements should be read in conjunction with the
consolidated financial statements and notes thereto and the accompanying notes.

SCHEDULE II
MBIA INC. (PARENT COMPANY)
CONDENSED STATEMENTS OF OPERATIONS
(In millions)
				Years ended December 31,
				2013		2012		2011
Revenues:
	Net investment income			$	50	$	60	$	90
	Net gains (losses) on financial instruments at fair value and foreign exchange				11		(119)		(278)
	Investment losses related to other-than-temporary impairments:
		Investment losses related to other-than-temporary impairments			0		(52)		(20)
		Other-than-temporary impairments recognized in accumulated other
			comprehensive income (loss)		0		(7)		(13)
			Net investment losses related to other-than-temporary impairments		0		(59)		(33)
	Net gains (losses) on extinguishment of debt				43		(2)		0
	Other net realized gains (losses)				0		6		(17)
			Total revenues		104		(114)		(238)
Expenses:
	Operating				69		40		29
	Interest				105		155		162
			Total expenses		174		195		191
	Gain (loss) before income taxes and equity in earnings of subsidiaries				(70)		(309)		(429)
Provision (benefit) for income taxes					(202)		(781)		(286)
	Gain (loss) before equity in earnings of subsidiaries				132		472		(143)
Equity in net income (loss) of subsidiaries					118		762		(1,233)
			Net income (loss)	$	250	$	1,234	$	(1,376)
The condensed financial statements should be read in conjunction with the
consolidated financial statements and notes thereto and the accompanying notes.

SCHEDULE II
MBIA INC. (PARENT COMPANY)
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In millions)
			Years ended December 31,
			2013		2012		2011
Net income (loss)			$	250	$	1,234	$	(1,376)
Other comprehensive income (loss):
Unrealized gains (losses) on available-for-sale securities:
	Unrealized gains (losses) arising during the period			(179)		166		287
	Provision (benefit) for income taxes			(17)		36		58
	Total			(162)		130		229
	Reclassification adjustments for (gains) losses included in net income (loss)			23		111		61
	Provision (benefit) for income taxes			8		39		21
	Total			15		72		40
Available-for-sale securities with other-than-temporary impairments:
	Other-than-temporary impairments and unrealized gains (losses)
		arising during the period		12		38		41
	Provision (benefit) for income taxes			4		13		14
	Total			8		25		27
	Reclassification adjustments for (gains) losses included in net income (loss)			0		31		29
	Provision (benefit) for income taxes			0		11		10
	Total			0		20		19
Foreign currency translation:
	Foreign currency translation gains (losses)			(3)		(15)		(33)
Total other comprehensive income (loss)				(142)		232		282
Comprehensive income (loss)			$	108	$	1,466	$	(1,094)
The condensed financial statements should be read in conjunction with the
consolidated financial statements and notes thereto and the accompanying notes.

SCHEDULE II
MBIA INC. (PARENT COMPANY)
CONDENSED STATEMENTS OF CASH FLOWS
(In millions)
				Years ended December 31,
				2013		2012		2011
Cash flows from operating activities:
	Fees and reimbursements received			$	0	$	5	$	31
	Investment income received				250		118		89
	Operating expenses paid				(35)		(43)		(30)
	Interest paid, net of interest converted to principal				(93)		(101)		(107)
	Income taxes (paid) received				111		224		353
			Net cash provided (used) by operating activities		233		203		336
Cash flows from investing activities:
	Purchase of fixed-maturity securities				(1,481)		(1,017)		(3,737)
	Sale and redemption of fixed-maturity securities				1,604		2,370		4,651
	Sale (purchase) of short-term investments, net				64		375		251
	Sale (purchase) of other investments, net				1		107		81
	(Payments) proceeds for derivative settlements				(32)		(207)		(85)
	Collateral (to) from swap counterparty				122		(285)		0
	Contributions to subsidiaries, net				2		(12)		0
	Advances to subsidiaries, net				0		1		(19)
			Net cash provided (used) by investing activities		280		1,332		1,142
Cash flows from financing activities:
	Proceeds from investment agreements				25		31		65
	Principal paydowns of investment agreements				(274)		(679)		(500)
	Payments for securities sold under agreements to repurchase				(32)		(639)		(835)
	Payments for retirement of debt				(3)		(180)		(70)
	Payments for affiliate loans				(194)		(109)		(37)
	Purchase of treasury stock				0		0		(50)
	Restricted stock awards settlements, net				13		1		(2)
			Net cash provided (used) by financing activities		(465)		(1,575)		(1,429)
Net increase (decrease) in cash and cash equivalents					48		(40)		49
Cash and cash equivalents - beginning of year					92		132		83
Cash and cash equivalents - end of year				$	140	$	92	$	132
Reconciliation of net income (loss) to net cash provided (used) by operating activities:
	Net income (loss)			$	250	$	1,234	$	(1,376)
	Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
		Change in:
			Intercompany accounts receivable		(14)		(9)		(10)
			Current income taxes		116		57		124
		Equity in earnings of subsidiaries			(118)		(762)		1,233
		Dividends from subsidiaries			219		60		46
		Net investment losses related to other-than-temporary impairments			0		59		33
		Net (gains) losses on financial instruments at fair value and foreign exchange			(11)		119		278
		Other net realized (gains) losses			0		(6)		17
		Deferred income tax provision (benefit)			(207)		(613)		(85)
		(Gains) losses on extinguishment of debt			(43)		2		0
		Other operating			41		62		76
		Total adjustments to net income (loss)			(17)		(1,031)		1,712
			Net cash provided (used) by operating activities	$	233	$	203	$	336
The condensed financial statements should be read in conjunction with the
consolidated financial statements and notes thereto and the accompanying notes.

SCHEDULE II

MBIA INC. (PARENT COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

1. Condensed Financial Statements

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the Company's consolidated financial statements and the notes thereto.

The activities of MBIA Inc. consist of general corporate activities and funding activities, which principally include holding and managing investments, servicing outstanding corporate debt, investment agreements issued by MBIA Inc. and its subsidiaries, and posting collateral under investment agreement and derivative contracts.

MBIA Inc. is subject to the same liquidity risks and uncertainties as described in footnote 1 to the Company's consolidated financial statements. As of December 31, 2013, MBIA Inc. had $307 million of cash and highly liquid assets available for general corporate liquidity purposes, and $52 million of cash and liquid assets not pledged directly as collateral in its funding activities.

2. Significant Accounting Policies

MBIA Inc. (the “Parent Company”) carries its investments in subsidiaries under the equity method.

Certain amounts have been reclassified in prior years' financial statements to conform to the current presentation. These reclassifications had no impact on total revenues, expenses, assets, liabilities, or shareholders' equity for all periods presented.

3. Dividends from Subsidiaries

During 2013, National Public Finance Guarantee Holdings, Inc. declared and paid a dividends of $214 million to MBIA Inc., Optinuity Alliance Resources Corporation declared and paid dividends of $2million to MBIA Inc. and CapMAC Holdings Inc. declared and paid dividends of $3million to MBIA Inc.

During 2012, Optinuity Alliance Resources Corporation declared and paid dividends of $53million to MBIA Inc., MBIA Asset Finance, LLC declared and paid dividends of $6 million to MBIA Inc. and Euro Asset Acquisition Limited declared and paid dividends of $1million to MBIA Inc.

During 2011, Optinuity Alliance Resources Corporation declared and paid dividends of $38 million to MBIA Inc.and Euro Asset Acquisition Limited declared and paid dividends of $8 million to MBIA Inc.

4. Obligations under Investment Agreements

The investment agreement business, as described in footnotes 2 and 10 to the Company's consolidated financial statements, is conducted by both MBIA Inc. and its wholly owned subsidiary, MBIA Investment Management Corp.

5. Pledged Collateral

Substantially all of the obligations under investment agreements require MBIA Inc. to pledge securities as collateral. As of December 31, 2013 and 2012, the fair value of securities pledged as collateral with respect to these investment agreements approximated $270million and $318million, respectively. The Parent Company's collateral as of December 31, 2013, consisted principally of mortgage-backed securities, corporate obligations, and U.S. Treasury and government agency bonds, and was primarily held with major U.S. banks. Additionally, the Parent Company pledged money market securities as collateral under investment agreements in the amount of $22million and $144million as of December 31, 2013 and 2012, respectively.

Under derivative contracts entered into by MBIA Inc., collateral postings are required by either MBIA Inc. or the counterparty when the aggregate market value of derivative contracts entered into with the same counterparty exceeds a predefined threshold. As of December 31, 2013,MBIA Inc. pledged securities with a fair value of $42 million to derivative counterparties.As of December 31,2012, MBIA Inc. did not post securities to derivative counterparties.

6. Affiliate Loans Payable

Affiliate loans payable consists of loans payable to MBIA Global Funding, LLC (“GFL”). GFL raiseds funds through the issuance of medium-term notes with varying maturities, which wereare, in turn, guaranteed by MBIAInsurance Corporation. GFL lentds the proceeds of these medium-term note issuances to MBIA Inc (“GFL Loans”). MBIA Inc. invests the proceeds of the GFL Loans in eligible investments, which consisted of investment grade securities at the time of purchase with a minimum average double-A credit quality rating.