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Loss and Loss Adjustment Expense Reserves (Tables)

12 Months Ended

Dec. 31, 2013

Schedule Of Losses And Loss Adjustment Expenses


Losses and LAE	Year Ended December 31, 2013
	Second-lien		First-lien
In millions	RMBS		RMBS		Other⁽¹⁾		Total
Losses and LAE related to actual and expected payments	$	108	$	(60)	$	50	$	98
Recoveries of actual and expected payments		(110)		(10)		140		20
Gross losses incurred		(2)		(70)		190		118
Reinsurance		0		0		(1)		(1)
Losses and LAE	$	(2)	$	(70)	$	189	$	117
__________
(1) - Includes ABS CDOs, CMBS, U.S. public finance and other issues.

Schedule Of Financial Guarantees And Related Claim Liability

				Surveillance Categories
				Caution		Caution		Caution
				List		List		List		Classified
$ in millions				Low		Medium		High		List		Total
Number of policies					83		19		5		192		299
Number of issues⁽¹⁾					26		14		4		136		180
Remaining weighted average contract
	period (in years)				11.0		4.9		11.5		9.5		9.7
Gross insured contractual payments
	outstanding:⁽²⁾
		Principal		$	5,290	$	1,073	$	40	$	7,861	$	14,264
		Interest			3,829		253		24		4,526		8,632
			Total	$	9,119	$	1,326	$	64	$	12,387	$	22,896
Gross claim liability				$	0	$	0	$	0	$	1,235	$	1,235
Less:
	Gross potential recoveries				0		0		0		1,085		1,085
	Discount, net				0		0		0		205		205
Net claim liability (recoverable)				$	0	$	0	$	0	$	(55)	$	(55)
Unearned premium revenue				$	112	$	19	$	0	$	96	$	227
__________
(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
				Caution		Caution		Caution
				List		List		List		Classified
$ in millions				Low		Medium		High		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				$	0	$	0	$	0	$	1,589	$	1,589
Less:
	Gross potential recoveries				0		0		0		4,109		4,109
	Discount, net				0		0		0		229		229
Net claim liability (recoverable)				$	0	$	0	$	0	$	(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.

Present Value Of The Probability-Weighted Future Claim Payments And Recoveries

		As of		As of
In millions		December 31, 2013		December 31, 2012
Loss reserves (claim liability)		$	580	$	790
LAE reserves			61		63
	Loss and LAE reserves	$	641	$	853

Insurance claim loss recoverable		$	(694)	$	(3,610)
LAE insurance loss recoverable			0		(38)
	Insurance loss recoverable	$	(694)	$	(3,648)

Reinsurance recoverable on unpaid losses		$	7	$	14
Reinsurance recoverable on unpaid LAE reserves			1		0
Reinsurance recoverable on paid losses			0		1
	Reinsurance recoverable on paid and unpaid losses	$	8	$	15

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
		Gross		Gross		Claim		Potential
$ in billions	Issues	Principal		Interest		Liability		Recoveries
Excluding Consolidated VIEs:
Non-consolidated VIEs	23	$	3.4	$	1.3	$	0.2	$	0.8
Consolidated VIEs:
Consolidated VIEs	11	$	1.7	$	0.6	$	0.1	$	0.6

Schedule Of Loss And Loss Adjustment Expenses Reserves

In millions

Changes in Loss and LAE Reserves for the Year Ended December 31, 2013

Gross Loss

Loss

Gross Loss

and LAE

Payments

Accretion

Changes in

and LAE

Reserves as of

for Cases

of Claim

Changes in

Unearned

Changes in

Reserves as of

December 31,

with

Liability

Discount

Changes in

Premium

LAE

December 31,

2012

Reserves

Discount

Rates

Assumptions

Revenue

Reserves

Other⁽¹⁾

2013

853

(337)

(92)

141

(2)

641

____________

(1) - Primarily changes in amount and timing of payments.

In millions

Changes in Loss and LAE Reserves for the Year Ended December 31, 2012

Gross Loss

Loss

Gross Loss

and LAE

Payments

Accretion

Changes in

and LAE

Reserves as of

for Cases

of Claim

Changes in

Unearned

Changes in

Reserves as of

December 31,

with

Liability

Discount

Changes in

Premium

LAE

December 31,

2011

Reserves

Discount

Rates

Assumptions

Revenue

Reserves

Other⁽¹⁾

2012

836

(395)

(26)

319

853

____________

(1) - Primarily changes in amount and timing of payments.

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, 2013
		Gross														Gross
		Reserve		Collections												Reserve
		as of		for Cases		Accretion		Changes in				Changes in				as of
		December 31,		with		of		Discount		Changes in		LAE				December 31,
In millions		2012		Recoveries		Recoveries		Rates		Assumptions		Recoveries		Other⁽¹⁾		2013
Insurance loss
	recoverable	$	3,648	$	(3,011)	$	19	$	(33)	$	126	$	(38)	$	(17)	$	694
Recoveries on unpaid
	losses		332		0		6		(38)		(91)		(3)		0		206
Total		$	3,980	$	(3,011)	$	25	$	(71)	$	35	$	(41)	$	(17)	$	900
__________
(1) Primarily changes in amount and timing of collections.

					Changes in Insurance Loss Recoverable and Recoveries on Unpaid Losses
					for the Year Ended December 31, 2012
		Gross														Gross
		Reserve		Collections												Reserve
		as of		for Cases		Accretion		Changes in				Changes in				as of
		December 31,		with		of		Discount		Changes in		LAE				December 31,
In millions		2011		Recoveries		Recoveries		Rates		Assumptions		Recoveries		Other⁽¹⁾		2012
Insurance loss
	recoverable	$	3,046	$	(13)	$	32	$	4	$	700	$	24	$	(145)	$	3,648
Recoveries on unpaid
	losses		562		0		7		12		(238)		(11)		0		332
Total		$	3,608	$	(13)	$	39	$	16	$	462	$	13	$	(145)	$	3,980
__________
(1) Primarily changes in amount and timing of collections.

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

In millions

Total Estimated

Recoveries from

Ineligible Mortgage

Accretion

Changes in

Ineligible Mortgage

Loans as of

of Future

Discount

Recoveries

Changes in

Loans as of

December 31, 2012

Collections

Rates

(Collections)

Assumptions

Other⁽¹⁾

December 31, 2013

3,583

(9)

(3,705)

443

359

__________

(1) Primarily changes in amount and timing of collections.

In millions

Total Estimated

Recoveries from

Ineligible Mortgage

Accretion

Changes in

Ineligible Mortgage

Loans as of

of Future

Discount

Recoveries

Changes in

Loans as of

December 31, 2011

Collections

Rates

(Collections)

Assumptions

Other

December 31, 2012

3,119

426

3,583

Schedule Of Expenses Related To Remedial Actions For Insured Obligations

	Years Ended December 31,
In millions	2013		2012		2011
Loss adjustment expense incurred, gross	$	57	$	137	$	120

- Definition

Tabular disclosure of insured financial obligations with credit deterioration related to the claim liability on financial guarantee insurance contracts as of the end of each annual and interim reporting period detailing, at a minimum, the following for each surveillance category or grouping used to track and monitor the entity's insured financial obligations: (1) number of issued and outstanding financial guarantee insurance contracts; (2) remaining weighted average contract period; (3) insured contractual payments outstanding, segregating principal and interest; (4) gross claim liability; (5) gross potential recoveries; (6) net discount of both the claim liability and potential recoveries; (7) net claim liability; (8) reinsurance recoverable; and (9) unearned premium revenue.

+ References+ Details