Loss and Loss Adjustment Expense Reserves (Tables)

9 Months Ended

Sep. 30, 2016

Text Block [Abstract]

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

			As of		As of
In millions			September 30, 2016		December 31, 2015
U.S. Public Finance Insurance Segment:
	Loss and LAE reserves		$	72	$	45
	Insurance loss recoverable			174		4
International and Structured Finance Insurance Segment:
	Second-lien RMBS:
		Loss and LAE reserves after VIE elimination		33		51
		Loss and LAE reserves VIE elimination		15		16
		Excess Spread after VIE elimination(1)		318		406
		Excess Spread VIE elimination(2)		63		93
		Put-Back Claims(3)		404		396
	First-lien RMBS:
		Loss and LAE reserves after VIE elimination		322		277
		Loss and LAE reserves VIE elimination		17		5
		Excess Spread after VIE elimination(4)		77		80
		Excess Spread VIE elimination(5)		21		8
	CDOs:
		Loss and LAE reserves after VIE elimination		77		133
		Loss and LAE reserves VIE elimination		191		190
		Insurance Loss Recoverable after VIE elimination		-		148
		Insurance Loss Recoverable VIE elimination		147		-
	Other:
		Loss and LAE reserves after VIE elimination		9		10
		Loss and LAE reserves VIE elimination		28		-
		Insurance Loss Recoverable		5		9
________________
(1) -As of September 30, 2016 and December 31, 2015, $309 million and $382 million were included in “Insurance loss recoverable” and $9 million and $24 million were included in “Loss and loss adjustment expense reserves” on the Company’s consolidated balance sheets, respectively.
(2) -As of September 30, 2016 and December 31, 2015, $62 million and $87 million were eliminated from "Insurance loss recoverable” and $1 million and $6 million were eliminated from “Loss and loss adjustment expense reserves” on the Company’s consolidated balance sheets, respectively.
(3) - Reflected in “Loan repurchase commitments” presented under the heading “Assets of consolidated variable interest entities” on the Company’s consolidated balance sheets.
(4) -As of September 30, 2016 and December 31, 2015, $40 million and $34 million were included in “Insurance loss recoverable” and $37 million and $46 million were included in “Loss and loss adjustment expense reserves” on the Company’s consolidated balance sheets, respectively.
(5) -As of September 30, 2016 and December 31, 2015, $16 million and $8 million were eliminated from “Insurance loss recoverable.” As of September 30, 2016, $5 million was eliminated from “Loss and loss adjustment expense reserves” on the Company’s consolidated balance sheets.

Schedule Of Loss And Loss Adjustment Expenses Reserves

In millions

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

September 30,

2015

Reserves

Discount

Rates

Assumptions

Revenue

Reserves

Other(1)

2016

$

516

$

(113)

$

6

$

31

$

13

$

(8)

$

8

$

60

$

513

____________

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

Schedule Of Insurance Loss Recoverable And Changes In Recoveries On Unpaid Losses

		Gross														Gross
		Reserve		Collections												Reserve
		as of		for Cases		Accretion		Changes in				Changes in				as of
		December 31,		with		of		Discount		Changes in		LAE				September 30,
In millions		2015		Recoveries		Recoveries		Rates		Assumptions		Recoveries		Other(1)		2016
Insurance loss
	recoverable	$	577	$	(60)	$	4	$	9	$	58	$	(5)	$	(55)	$	528
Recoveries on unpaid
	losses		100		-		1		8		(31)		5		-		83
Total		$	677	$	(60)	$	5	$	17	$	27	$	-	$	(55)	$	611
____________
(1) Primarily changes in amount and timing of collections.

Schedule Of Losses And Loss Adjustment Expenses

		Three Months Ended September 30,				Nine Months Ended September 30,
In millions		2016		2015		2016		2015
U.S. Public Finance Insurance Segment		$	28	$	(7)	$	46	$	(5)
International and Structured Finance Insurance Segment:
	Second-lien RMBS		44		24		78		52
	First-lien RMBS		-		18		61		2
	CDOs		(23)		5		(46)		39
	Other(1)		1		(1)		10		(9)
Losses and LAE expense (benefit)		$	50	$	39	$	149	$	79
________________
(1) - Includes non-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					82		7		5		327		421
Number of issues(1)					14		5		3		124		146
Remaining weighted average contract
	period (in years)				7.3		5.0		7.3		7.1		7.2
Gross insured contractual payments
	outstanding:(2)
		Principal		$	3,013	$	64	$	338	$	7,205	$	10,620
		Interest			2,843		17		117		2,840		5,817
			Total	$	5,856	$	81	$	455	$	10,045	$	16,437
Gross Claim Liability				$	-	$	-	$	-	$	670	$	670
Less:
	Gross Potential Recoveries				-		-		-		686		686
	Discount, net(3)				-		-		-		14		14
Net claim liability (recoverable)				$	-	$	-	$	-	$	(30)	$	(30)
Unearned premium revenue				$	9	$	1	$	8	$	70	$	88
__________
(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.
(3) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries.

				Surveillance Categories
				Caution		Caution		Caution
				List		List		List		Classified
$ in millions				Low		Medium		High		List		Total
Number of policies					57		18		171		165		411
Number of issues(1)					12		6		5		117		140
Remaining weighted average contract
	period (in years)				7.6		6.7		9.6		6.7		7.4
Gross insured contractual payments
	outstanding:(2)
		Principal		$	2,591	$	147	$	1,996	$	6,426	$	11,160
		Interest			2,733		57		1,038		2,419		6,247
			Total	$	5,324	$	204	$	3,034	$	8,845	$	17,407
Gross Claim Liability				$	-	$	-	$	-	$	797	$	797
Less:
	Gross Potential Recoveries				-		-		-		752		752
	Discount, net(3)				-		-		-		116		116
Net claim liability (recoverable)				$	-	$	-	$	-	$	(71)	$	(71)
Unearned premium revenue				$	8	$	2	$	33	$	55	$	98
__________
(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.
(3) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries.