QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
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(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
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☒ |
Accelerated filer |
☐ | |||
Non-accelerated filer |
☐ |
Smaller reporting company |
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Emerging growth company |
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PAGE |
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Item 1. |
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1 |
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2 |
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3 |
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4 |
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5 |
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6 |
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6 |
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9 |
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10 |
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12 |
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13 |
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19 |
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33 |
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38 |
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41 |
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42 |
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44 |
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45 |
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46 |
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Item 2. |
49 |
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Item 3. |
76 |
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Item 4. |
76 |
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Item 1. |
77 |
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Item 1A. |
77 |
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Item 2. |
80 |
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Item 6. |
81 |
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82 |
• | increased credit losses or impairments on public finance obligations that National Public Finance Guarantee Corporation (“National”) insures issued by state, local and territorial governments and finance authorities and other providers of public services, located in the U.S. or abroad, that are experiencing fiscal stress; |
• | the possibility that loss reserve estimates are not adequate to cover potential claims; |
• | a disruption in the cash flow from National or an inability to access the capital markets and our exposure to significant fluctuations in liquidity and asset values in the global credit markets as a result of collateral posting requirements; |
• | our ability to fully implement our strategic plan; |
• | the possibility that MBIA Insurance Corporation will have inadequate liquidity or resources to timely pay claims as a result of higher than expected losses on certain insured transactions or as a result of a delay or failure in collecting expected recoveries, which could lead the New York State Department of Financial Services (“NYSDFS”) to put MBIA Insurance Corporation into a rehabilitation or liquidation proceeding under Article 74 of the New York Insurance Law and/or take such other actions as the NYSDFS may deem necessary to protect the interests of MBIA Insurance Corporation’s policyholders; |
• | the impact on our insured portfolios or business operations caused by the global spread of the novel coronavirus COVID-19; |
• | deterioration in the economic environment and financial markets in the United States or abroad, real estate market performance, credit spreads, interest rates and foreign currency levels; and |
• | the effects of changes to governmental regulation, including insurance laws, securities laws, tax laws, legal precedents and accounting rules. |
March 31, 2020 |
December 31, 2019 |
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Assets |
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Investments: |
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Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $ |
$ | |
$ | |
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Investments carried at fair value |
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Investments pledged as collateral, at fair value (amortized cost $ |
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Short-term investments, at fair value (amortized cost $ |
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Total investments |
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Cash and cash equivalents |
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Premiums receivable (net of allowance for credit losses $ |
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Deferred acquisition costs |
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Insurance loss recoverable |
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Other assets |
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Assets of consolidated variable interest entities: |
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Cash |
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Investments held-to-maturity, at amortized cost (net of allowance for credit losses $ |
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Investments carried at fair value |
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Loans receivable at fair value |
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Loan repurchase commitments |
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Other assets |
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Total assets |
$ |
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$ |
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Liabilities and Equity |
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Liabilities: |
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Unearned premium revenue |
$ | |
$ | |
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Loss and loss adjustment expense reserves |
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Long-term debt |
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Medium-term notes (includes financial instruments carried at fair value of $ |
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Investment agreements |
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Derivative liabilities |
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Other liabilities |
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Liabilities of consolidated variable interest entities: |
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Variable interest entity notes (includes financial instruments carried at fair value of $ |
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Total liabilities |
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Commitments and contingencies (Refer to Note 13: Commitments and Contingencies) |
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Equity: |
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Preferred stock, par value $ |
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Common stock, par value $ |
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Additional paid-in capital |
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Retained earnings |
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Accumulated other comprehensive income (loss), net of tax of $ |
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( |
) | |||||
Treasury stock, at cost— |
( |
) | ( |
) | ||||
Total shareholders’ equity of MBIA Inc. |
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Preferred stock of subsidiary |
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Total equity |
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Total liabilities and equity |
$ |
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$ |
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Three Months Ended March 31, |
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2020 |
2019 |
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Revenues: |
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Premiums earned: |
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Scheduled premiums earned |
$ | |
$ | |
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Refunding premiums earned |
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Premiums earned (net of ceded premiums of $ |
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Net investment income |
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Unrealized gains (losses) on insured derivatives |
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Net gains (losses) on financial instruments at fair value and foreign exchange |
( |
) | |
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Net investment losses related to other-than-temporary impairments: |
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Investment losses related to other-than-temporary impairments |
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Other-than-temporary impairments recognized in accumulated other comprehensive income (loss) |
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( |
) | |||||
Net investment losses related to other-than-temporary impairments |
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( |
) | |||||
Other net realized gains (losses) |
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Revenues of consolidated variable interest entities: |
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Net investment income |
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Net gains (losses) on financial instruments at fair value and foreign exchange |
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Other net realized gains (losses) |
( |
) | ( |
) | ||||
Total revenues |
( |
) | |
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Expenses: |
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Losses and loss adjustment |
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( |
) | |||||
Amortization of deferred acquisition costs |
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Operating |
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Interest |
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Expenses of consolidated variable interest entities: |
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Operating |
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Interest |
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Total expenses |
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Income (loss) before income taxes |
( |
) | ( |
) | ||||
Provision (benefit) for income taxes |
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Net income (loss) |
$ |
( |
) |
$ |
( |
) | ||
Net income (loss) per common share: |
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Basic |
$ | ( |
) | $ | ( |
) | ||
Diluted |
$ | ( |
) | $ | ( |
) | ||
Weighted average number of common shares outstanding: |
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Basic |
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Diluted |
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Three Months Ended March 31, | |||||||||
2020 |
2019 |
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Net income (loss) |
$ | ( |
) | $ | ( |
) | |||
Other comprehensive income (loss): |
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Available-for-sale securities with no credit losses: |
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Unrealized gains (losses) arising during the period |
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Reclassification adjustments for (gains) losses included in net income (loss) |
( |
) | ( |
) | |||||
Available-for-sale securities with credit losses: |
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Unrealized gains (losses) arising during the period |
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Reclassification adjustments for (gains) losses included in net income (loss) |
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Foreign currency translation: |
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Foreign currency translation gains (losses) |
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Instrument-specific credit risk of liabilities measured at fair value: |
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Unrealized gains (losses) arising during the period |
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Reclassification adjustments for (gains) losses included in net income (loss) |
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Total other comprehensive income (loss) |
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Comprehensive income (loss) |
$ |
( |
) |
$ |
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Three Months Ended March 31, |
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2020 |
2019 |
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Common shares |
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Balance at beginning of period |
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Common shares issued (cancelled), net |
- |
- |
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Balance at end of period |
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Common stock amount |
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Balance at beginning and end of period |
$ | |
$ | |
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Additional paid-in capital |
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Balance at beginning of period |
$ | |
$ | |
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Period change |
( |
) | ( |
) | ||||
Balance at end of period |
$ | |
$ | |
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Retained earnings |
||||||||
Balance at beginning of period |
$ | |
$ | |
||||
ASU 2016-13 transition adjustment |
( |
) | |
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Net income (loss) |
( |
) | ( |
) | ||||
Balance at end of period |
$ | |
$ | |
||||
Accumulated other comprehensive income (loss) |
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Balance at beginning of period |
$ | ( |
) | $ | ( |
) | ||
Other comprehensive income (loss) |
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Balance at end of period |
$ | |
$ | ( |
) | |||
Treasury shares |
||||||||
Balance at beginning of period |
( |
) | ( |
) | ||||
Treasury shares acquired under share repurchase program |
( |
) | ( |
) | ||||
Other |
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Balance at end of period |
( |
) | ( |
) | ||||
Treasury stock amount |
||||||||
Balance at beginning of period |
$ | ( |
) | $ | ( |
) | ||
Treasury shares acquired under share repurchase program |
( |
) | ( |
) | ||||
Other |
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Balance at end of period |
$ | ( |
) | $ | ( |
) | ||
Total shareholders’ equity of MBIA Inc. |
||||||||
Balance at beginning of period |
$ | |
$ | |
||||
Period change |
( |
) | |
|||||
Balance at end of period |
$ |
|
$ |
|
||||
Preferred stock of subsidiary shares |
||||||||
Balance at beginning and end of period |
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Preferred stock of subsidiary amount |
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Balance at beginning and end of period |
$ | |
$ | |
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Total equity |
$ |
|
$ |
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Three Months Ended March 31, |
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2020 |
2019 |
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Cash flows from operating activities: |
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Premiums, fees and reimbursements received |
$ | |
$ | |
||||
Investment income received |
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Financial guarantee losses and loss adjustment expenses paid |
( |
) | ( |
) | ||||
Proceeds from recoveries and reinsurance |
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Operating and employee related expenses paid |
( |
) | ( |
) | ||||
Interest paid, net of interest converted to principal |
( |
) | ( |
) | ||||
Income taxes (paid) received |
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( |
) | |||||
Net cash provided (used) by operating activities |
( |
) | ( |
) | ||||
Cash flows from investing activities: |
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Purchases of available-for-sale investments |
( |
) | ( |
) | ||||
Sales of available-for-sale investments |
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Paydowns and maturities of available-for-sale investments |
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Purchases of investments at fair value |
( |
) | ( |
) | ||||
Sales, paydowns, maturities and other proceeds of investments at fair value |
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Sales, paydowns and maturities (purchases) of short-term investments, net |
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( |
) | |||||
Sales, paydowns and maturities of held-to-maturity investments |
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Paydowns and maturities of loans receivable |
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Consolidation of variable interest entities |
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(Payments) proceeds for derivative settlements |
( |
) | ( |
) | ||||
Collateral (to) from counterparties |
( |
) | ( |
) | ||||
Net cash provided (used) by investing activities |
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Cash flows from financing activities: |
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Proceeds from investment agreements |
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Principal paydowns of investment agreements |
( |
) | |
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Principal paydowns of variable interest entity notes |
( |
) | ( |
) | ||||
Purchases of treasury stock |
( |
) | ( |
) | ||||
Net cash provided (used) by financing activities |
( |
) | ( |
) | ||||
Net increase (decrease) in cash and cash equivalents |
|
( |
) | |||||
Cash and cash equivalents - beginning of period |
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|
||||||
Cash and cash equivalents - end of period |
$ | |
$ | |
||||
Reconciliation of net income (loss) to net cash provided (used) by operating activities: |
||||||||
Net income (loss) |
$ | ( |
) | $ | ( |
) | ||
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: |
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Change in: |
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Premiums receivable |
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Deferred acquisition costs |
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Unearned premium revenue |
( |
) | ( |
) | ||||
Loss and loss adjustment expense reserves |
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( |
) | |||||
Insurance loss recoverable |
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( |
) | |||||
Accrued interest payable |
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||||||
Accrued expenses |
( |
) | ( |
) | ||||
Net investment losses related to other-than-temporary impairments |
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|
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Unrealized (gains) losses on insured derivatives |
|
( |
) | |||||
Net (gains) losses on financial instruments at fair value and foreign exchange |
|
( |
) | |||||
Other net realized (gains) losses |
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|
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Other operating |
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|
||||||
Total adjustments to net income (loss) |
|
( |
) | |||||
Net cash provided (used) by operating activities |
$ | ( |
) | $ | ( |
) | ||
March 31, 2020 |
||||||||||||||||||||||||
Carrying Value of Assets |
Carrying Value of Liabilities |
|||||||||||||||||||||||
In millions |
Maximum Exposure to Loss |
Investments |
Premiums Receivable |
Insurance Loss Recoverable |
Unearned Premium Revenue |
Loss and Loss Adjustment Expense Reserves |
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Insurance: |
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Global structured finance: |
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Mortgage-backed residential |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
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Mortgage-backed commercial |
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Consumer asset-backed |
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Corporate asset-backed |
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Total global structured finance |
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Global public finance |
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Total insurance |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
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December 31, 2019 |
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Carrying Value of Assets |
Carrying Value of Liabilities |
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Loss and Loss |
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Maximum |
Unearned |
Adjustment |
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Exposure |
Premiums |
Insurance Loss |
Premium |
Expense |
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In millions |
to Loss |
Investments |
Receivable |
Recoverable |
Revenue |
Reserves |
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Insurance: |
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Global structured finance: |
||||||||||||||||||||||||
Mortgage-backed residential |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
Mortgage-backed commercial |
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Consumer asset-backed |
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Corporate asset-backed |
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Total global structured finance |
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Global public finance |
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Total insurance |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
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As of March 31, 2020 |
As of December 31, 2019 | |||||||||||||||
In millions |
Balance Sheet Line Item |
Balance Sheet Line Item | |||||||||||||||
|
Insurance loss recoverable |
Loss and LAE reserves (2) |
Insurance loss recoverable |
Loss and LAE reserves (2) |
|||||||||||||
U.S. Public Finance Insurance |
$ | |
$ | |
$ | |
$ | |
|||||||||
International and Structured Finance Insurance: |
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|
|
|||||||||||||
Before VIE eliminations (1) |
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|
|||||||||||||
VIE eliminations (1) |
( |
) | ( |
) | ( |
) | ( |
) | |||||||||
Total international and structured finance insurance |
|
|
|
|
|||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
|||||||||
(1) - | Includes loan repurchase commitments of $ |
(2) - | Amounts are net of expected recoveries. |
In millions |
Changes in Loss and LAE Reserves for the Three Months Ended March 31, 2020 |
|||||||||||||||||||||||||||||
Gross Loss and LAE Reserves as of December 31, 2019 (1) |
Loss Payments |
Accretion of Claim Liability Discount |
Changes in Discount Rates |
Changes in Assumptions |
Changes in Unearned Premium Revenue |
Other |
Gross Loss and LAE Reserves as of March 31, 2020 (1) |
|||||||||||||||||||||||
$ | |
$ | ( |
) | $ | |
$ | ( |
) | $ | |
$ | |
( |
) | $ | |
|||||||||||||
(1) - | Amounts are net of expected recoveries of unpaid claims. |
|
|
Changes in Insurance Loss Recoverable |
|
|||||||||||||||||||||||||
|
|
for the Three Months Ended March 31, 2020 |
|
|||||||||||||||||||||||||
In millions |
Gross Reserve as of December 31, 2019 |
Collections for Cases |
Accretion of Recoveries |
Changes in Discount Rates |
Changes in Assumptions (1) |
Other (2) |
Gross Reserve as of March 31, 2020 |
|||||||||||||||||||||
Insurance loss recoverable |
$ | |
$ | ( |
) | $ | |
$ | |
$ | ( |
) | $ | ( |
) | $ | |
|||||||||||
(1) - | Includes amounts related to paid claims and LAE that are expected to be recovered in the future. |
(2) - | Primarily changes in amount and timing of collections. |
|
Surveillance Categories |
|||||||||||||||||||
$ in millions |
Caution List Low |
Caution List Medium |
Caution List High |
Classified List |
Total |
|||||||||||||||
Number of policies |
|
|
|
|
|
|||||||||||||||
Number of issues (1) |
|
|
|
|
|
|||||||||||||||
Remaining weighted average contract period (in years) |
|
|
- |
|
|
|||||||||||||||
Gross insured contractual payments outstanding: (2) |
|
|
|
|
|
|||||||||||||||
Principal |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Interest |
|
|
|
|
|
|||||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Gross Claim Liability (3) |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Less: |
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|
|
|
|
|||||||||||||||
Gross Potential Recoveries (4) |
|
|
|
|
|
|||||||||||||||
Discount, net (5) |
|
|
|
( |
) | ( |
) | |||||||||||||
Net claim liability (recoverable) |
$ | |
$ | |
$ | |
$ | ( |
) | $ | ( |
) | ||||||||
Unearned premium revenue |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Reinsurance recoverable on paid and unpaid losses (6) |
|
|
|
|
$ | |
(1) - | An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt. |
(2) - | Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA. |
(3) - | The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position. |
(4) - | Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position. |
(5) - | Represents discount related to Gross Claim Liability and Gross Potential Recoveries. |
(6) - | Included in “Other assets” on the Company’s consolidated balance sheets. |
|
Surveillance Categories |
|||||||||||||||||||
$ in millions |
Caution List Low |
Caution List Medium |
Caution List High |
Classified List |
Total |
|||||||||||||||
Number of policies |
|
|
|
|
|
|||||||||||||||
Number of issues (1) |
|
|
|
|
|
|||||||||||||||
Remaining weighted average contract period (in years) |
|
|
- |
|
|
|||||||||||||||
Gross insured contractual payments outstanding: (2) |
|
|
|
|
|
|||||||||||||||
Principal |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Interest |
|
|
|
|
|
|||||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Gross Claim Liability (3) |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Less: |
|
|
|
|
|
|||||||||||||||
Gross Potential Recoveries (4) |
|
|
|
|
|
|||||||||||||||
Discount, net (5) |
|
|
|
( |
) | ( |
) | |||||||||||||
Net claim liability (recoverable) |
$ | |
$ | |
$ | |
$ | ( |
) | $ | ( |
) | ||||||||
Unearned premium revenue |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Reinsurance recoverable on paid and unpaid losses (6) |
|
|
|
|
$ | |
(1) - | An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt. |
(2) - | Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA. |
(3) - | The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position. |
(4) - | Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position. |
(5) - | Represents discount related to Gross Claim Liability and Gross Potential Recoveries. |
(6) - | Included in “Other assets” on the Company’s consolidated balance sheets. |
In millions |
Fair Value as of March 31, 2020 |
Valuation Techniques |
Unobservable Input |
Range (Weighted Average) |
|||||||||
Assets of consolidated VIEs: |
|||||||||||||
Loans receivable at fair value |
$ | |
Market prices adjusted for financial guarantees provided to VIE obligations |
Impact of financial guarantee (2) |
- (1) |
||||||||
Loan repurchase commitments |
|
Discounted cash flow |
Recovery rates (3) Breach rates(3) |
||||||||||
Liabilities of consolidated VIEs: |
|||||||||||||
Variable interest entity notes |
|
Market prices of VIE assets adjusted for financial guarantees provided |
Impact of financial guarantee |
- (1) |
|||||||||
C CMBS redit d eri vative liabilit i es – |
|
Direct Price Model |
Nonperformance risk |
|
|||||||||
Other derivative liabilities |
|
Discounted cash flow |
Cash flows |
$ (4) |
(1) - | Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. |
(2) - | Negative percentage represents financial guarantee policies in a receivable position. |
(3) - | Recovery rates include assumptions about legal risk in the enforcement of the Company’s contract and breach rates represent estimates of the percentage of ineligible loans. |
(4) - | Midpoint of cash flows are used for the weighted average. |
In millions |
Fair Value as of December 31, 2019 |
Valuation Techniques |
Unobservable Input |
Range (Weighted Average) |
||||||||
Assets of consolidated VIEs: |
||||||||||||
Loans receivable at fair value |
$ | |
Market prices adjusted for financial guarantees provided to VIE obligations |
Impact of financial guarantee (1) |
- - |
|||||||
Loan repurchase commitments |
|
Discounted cash flow |
Recovery rates (2) Breach rates(2) |
|||||||||
Liabilities of consolidated VIEs: |
||||||||||||
Variable interest entity notes |
|
Market prices of VIE assets adjusted for financial guarantees provided |
Impact of financial guarantee |
|
||||||||
Credit d CMBS e rivative liabilities – |
|
Direct Price Model |
Nonperformance risk |
|
||||||||
Other derivative liabilities |
|
Discounted cash flow |
Cash flows |
$ (3) |
(1) - | Negative percentage represents financial guarantee policies in a receivable position. |
(2) - | Recovery rates include assumptions about legal risk in the enforcement of the Company’s contract and breach rates represent estimates of the percentage of ineligible loans. |
(3) - | Midpoint of cash flows are used for the weighted average. |
|
Fair Value Measurements at Reporting Date Using |
|
||||||||||||||||||
In millions |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Counterparty and Cash Collateral Netting |
Balance as of March 31, 2020 |
|||||||||||||||
Assets: |
|
|
|
|
|
|||||||||||||||
Fixed-maturity investments: |
|
|
|
|
|
|||||||||||||||
U.S. Treasury and government agency |
$ | |
$ | |
$ | |
$ | - |
$ | |
||||||||||
State and municipal bonds |
|
|
|
- |
|
|||||||||||||||
Foreign governments |
|
|
|
- |
|
|||||||||||||||
Corporate obligations |
|
|
|
- |
|
|||||||||||||||
Mortgage-backed securities: |
|
|
|
|
|
|||||||||||||||
Residential mortgage-backed agency |
|
|
|
- |
|
|||||||||||||||
Residential mortgage-backed non-agency |
|
|
|
- |
|
|||||||||||||||
Commercial mortgage-backed |
|
|
|
- |
|
|||||||||||||||
Asset-backed securities: |
|
|
|
|
|
|||||||||||||||
Collateralized debt obligations |
|
|
|
- |
|
|||||||||||||||
Other asset-backed |
|
|
|
- |
|
|||||||||||||||
Total fixed-maturity investments |
|
|
|
- |
|
|||||||||||||||
Money market securities |
|
|
|
- |
|
|||||||||||||||
Perpetual debt and equity securities |
|
|
|
- |
|
|||||||||||||||
Fixed-income fund |
|
|
|
- |
|
(1) | ||||||||||||||
Cash and cash equivalents |
|
|
|
- |
|
|||||||||||||||
Derivative assets: |
|
|
|
|
|
|||||||||||||||
Non-insured derivative assets: |
|
|
|
|
|
|||||||||||||||
Interest rate derivatives |
|
|
|
- |
|
|
Fair Value Measurements at Reporting Date Using |
|
|||||||||||||||||||
In millions |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Counterparty and Cash Collateral Netting |
Balance as of March 31, 2020 |
||||||||||||||||
Assets of consolidated VIEs: |
|
|
|
|
|
||||||||||||||||
Corporate obligations |
|
|
|
- |
|
||||||||||||||||
Mortgage-backed securities: |
|
|
|
|
|
||||||||||||||||
Residential mortgage-backed non-agency |
|
|
|
- |
|
||||||||||||||||
Commercial mortgage-backed |
|
|
|
- |
|
||||||||||||||||
Asset-backed securities: |
|
|
|
|
|
||||||||||||||||
Collateralized debt obligations |
|
|
|
- |
|
||||||||||||||||
Other asset-backed |
|
|
|
- |
|
||||||||||||||||
Cash |
|
|
|
- |
|
||||||||||||||||
Loans receivable at fair value: |
|
|
|
|
|
||||||||||||||||
Residential loans receivable |
|
|
|
- |
|
||||||||||||||||
Loan repurchase commitments |
|
|
|
- |
|
||||||||||||||||
Other assets: |
|
|
|
|
|
||||||||||||||||
Currency derivatives |
|
|
|
- |
|
||||||||||||||||
Other |
|
|
|
- |
|
||||||||||||||||
Total assets |
$ | |
$ | |
$ | |
$ | - |
$ | |
|||||||||||
Liabilities: |
|
|
|
|
|
||||||||||||||||
Medium-term notes |
$ | |
$ | |
$ | |
$ | - |
$ | |
|||||||||||
Derivative liabilities: |
|
|
|
|
|
||||||||||||||||
Insured derivatives: |
|
|
|
|
|
||||||||||||||||
Credit derivatives |
|
|
|
- |
|
||||||||||||||||
Non-insured derivatives: |
|
|
|
|
|
||||||||||||||||
Interest rate derivatives |
|
|
|
( |
) | |
|||||||||||||||
Other |
|
|
|
- |
|
||||||||||||||||
Liabilities of consolidated VIEs: |
|
|
|
|
|
||||||||||||||||
Variable interest entity notes |
|
|
|
- |
|
||||||||||||||||
Total liabilities |
$ | |
$ | |
$ | |
$ | ( |
) | $ | |
||||||||||
(1) - | Investment that was measured at fair value by applying the net asset value per share practical expedient, and was required not to be classified in the fair value hierarchy. |
|
Fair Value Measurements at Reporting Date Using |
|
|||||||||||||||
|
Quoted Prices in |
Significant |
|
|
|||||||||||||
|
Active Markets |
Other |
Significant |
|
|||||||||||||
|
for Identical |
Observable |
Unobservable |
Balance as of |
|||||||||||||
|
Assets |
Inputs |
Inputs |
December 31, |
|||||||||||||
In millions |
(Level 1) |
(Level 2) |
(Level 3) |
2019 |
|||||||||||||
Assets: |
|
|
|
|
|||||||||||||
Fixed-maturity investments: |
|
|
|
|
|||||||||||||
U.S. Treasury and government agency |
$ | |
$ | |
$ | |
$ | |
|||||||||
State and municipal bonds |
|
|
|
|
|||||||||||||
Foreign governments |
|
|
|
|
|||||||||||||
Corporate obligations |
|
|
|
|
|||||||||||||
Mortgage-backed securities: |
|
|
|
|
|||||||||||||
Residential mortgage-backed agency |
|
|
|
|
|||||||||||||
Residential mortgage-backed non-agency |
|
|
|
|
|||||||||||||
Commercial mortgage-backed |
|
|
|
|
|||||||||||||
Asset-backed securities: |
|
|
|
|
|||||||||||||
Collateralized debt obligations |
|
|
|
|
|||||||||||||
Other asset-backed |
|
|
|
|
|||||||||||||
Total fixed-maturity investments |
|
|
|
|
|||||||||||||
Money market securities |
|
|
|
|
|||||||||||||
Perpetual debt and equity securities |
|
|
|
|
|||||||||||||
Fixed-income fund |
|
|
|
|
(1) | ||||||||||||
Cash and cash equivalents |
|
|
|
|
|||||||||||||
Derivative assets: |
|
|
|
|
|||||||||||||
Non-insured derivative assets: |
|
|
|
|
|||||||||||||
Interest rate derivatives |
|
|
|
|
|
Fair Value Measurements at Reporting Date Using |
|
|||||||||||||||
In millions |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Balance as of December 31, 2019 |
|||||||||||||
Assets of consolidated VIEs: |
|
|
|
|
|||||||||||||
Corporate obligations |
|
|
|
|
|||||||||||||
Mortgage-backed securities: |
|
|
|
|
|||||||||||||
Residential mortgage-backed non-agency |
|
|
|
|
|||||||||||||
Commercial mortgage-backed |
|
|
|
|
|||||||||||||
Asset-backed securities: |
|
|
|
|
|||||||||||||
Collateralized debt obligations |
|
|
|
|
|||||||||||||
Other asset-backed |
|
|
|
|
|||||||||||||
Cash |
|
|
|
|
|||||||||||||
Loans receivable at fair value: |
|
|
|
|
|||||||||||||
Residential loans receivable |
|
|
|
|
|||||||||||||
Loan repurchase commitments |
|
|
|
|
|||||||||||||
Other assets: |
|
|
|
|
|||||||||||||
Currency derivatives |
|
|
|
|
|||||||||||||
Other |
|
|
|
|
|||||||||||||
Total assets |
$ | |
$ | |
$ | |
$ | |
|||||||||
Liabilities: |
|
|
|
|
|||||||||||||
Medium-term notes |
$ | |
$ | |
$ | |
$ | |
|||||||||
Derivative liabilities: |
|
|
|
|
|||||||||||||
Insured derivatives: |
|
|
|
|
|||||||||||||
Credit derivatives |
|
|
|
|
|||||||||||||
Non-insured derivatives: |
|
|
|
|
|||||||||||||
Interest rate derivatives |
|
|
|
|
|||||||||||||
Other |
|
|
|
|
|||||||||||||
Other liabilities: |
|
|
|
|
|||||||||||||
Other payable |
|
|
|
|
|||||||||||||
Liabilities of consolidated VIEs: |
|
|
|
|
|||||||||||||
Variable interest entity notes |
|
|
|
|
|||||||||||||
Total liabilities |
$ | |
$ | |
$ | |
$ | |
|||||||||
(1) | - Investment that was measured at fair value by applying the net asset value per share practical expedient, and was required not to be classified in the fair value hierarchy. |
Fair Value Measurements at Reporting Date Using |
||||||||||||||||||||
In millions |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Fair Value Balance as of March 31, 2020 |
Carry Value Balance as of March 31, 2020 |
|||||||||||||||
Assets: |
||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||
Investments held-to-maturity |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Total assets |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Liabilities: |
||||||||||||||||||||
Long-term debt |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Medium-term notes |
|
|
|
|
|
|||||||||||||||
Investment agreements |
|
|
|
|
|
|||||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||||||
Variable interest entity notes |
|
|
|
|
|
|||||||||||||||
Total liabilities |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Financial Guarantees: |
||||||||||||||||||||
Gross liability (recoverable) |
$ | |
$ | |
$ | |
$ | |
$ | ( |
) | |||||||||
Ceded |
|
|
|
|
|
Fair Value Measurements at Reporting Date Using |
||||||||||||||||||||
In millions |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Fair Value Balance as of December 31, 2019 |
Carry Value Balance as of December 31, 2019 |
|||||||||||||||
Assets: |
||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||
Investments held-to-maturity |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Total assets |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Liabilities: |
||||||||||||||||||||
Long-term debt |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Medium-term notes |
|
|
|
|
|
|||||||||||||||
Investment agreements |
|
|
|
|
|
|||||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||||||
Variable interest entity notes |
|
|
|
|
|
|||||||||||||||
Total liabilities |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Financial Guarantees: |
||||||||||||||||||||
Gross liability (recoverable) |
$ | |
$ | |
$ | |
$ | |
$ | ( |
) | |||||||||
Ceded |
|
|
|
|
|
In millions |
Balance, Beginning of Period |
Total Gains / (Losses) Included in Earnings |
Unrealized Gains / (Losses) Included in OCI (1) |
Purchases |
Issuances |
Settlements |
Sales |
Transfers into Level 3 |
Transfers out of Level 3 |
Ending Balance |
Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets still held as of March 31, 2020 |
Change in Unrealized Gains (Losses) for the Period Included in OCI for Assets still held as of March 31, 2020 (1) |
||||||||||||||||||||||||||||||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
Other asset-backed |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||||||||||||||
Assets of consolidated VIEs: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
Loans receivable- residential |
|
( |
) | |
|
|
( |
) | |
|
|
|
( |
) | |
|||||||||||||||||||||||||||||||||
Loan repurchase commitments |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
Currency derivatives |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
Other |
|
( |
) | |
|
|
|
|
|
|
|
( |
) | |
||||||||||||||||||||||||||||||||||
Total assets |
$ | |
$ | ( |
) | $ | |
$ | |
$ | |
$ | ( |
) | $ | |
$ | |
$ | |
$ | |
$ | ( |
) | $ | |
|||||||||||||||||||||
In millions |
Balance, Beginning of Period |
Total (Gains) / Losses Included in Earnings |
Unrealized (Gains) / Losses Included in in OCI (2) |
Purchases |
Issuances |
Settlements |
Sales |
Transfers into Level 3 |
Transfers out of Level 3 |
Ending Balance |
Change in Unrealized (Gains) Losses for the Period Included in Earnings for Liabilities still held as of March 31, 2020 |
Change in Unrealized (Gains) Losses for the Period Included in OCI for Liabilities still held as of March 31, 2020 (2) |
||||||||||||||||||||||||||||||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
Medium-term notes |
$ | |
$ | |
$ | ( |
) | $ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | ( |
) | ||||||||||||||||||||||
Credit derivatives |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
Other derivatives |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
Other payable |
|
|
|
|
|
( |
) | |
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
Liabilities of consolidated VIEs: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
VIE notes |
|
( |
) | ( |
) | |
|
( |
) | |
|
|
|
( |
) | ( |
) | |||||||||||||||||||||||||||||||
Total liabilities |
$ | |
$ | ( |
) | $ | ( |
) | $ | |
$ | |
$ | ( |
) | $ | |
$ | |
$ | |
$ | |
$ | ( |
) | $ | ( |
) | |||||||||||||||||||
(1) - | Reported within the “Unrealized gains (losses) on available-for-sale securities” on MBIA’s Consolidated Statement of Comprehensive Income/Loss. |
(2) - | Reported within the “Instrument-specific credit risk of liabilities measured at fair value” on MBIA’s Consolidated Statement of Comprehensive Income/Loss. |
In millions |
Balance, Beginning of Period |
Total Gains / (Losses) Included in Earnings |
Unrealized Gains / (Losses) Included in OCI |
Purchases |
Issuances |
Settlements |
Sales |
Transfers into Level 3 (1) |
Transfers out of Level 3 (1) |
Ending Balance |
Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets still held as of March 31, 2019 |
|||||||||||||||||||||||||||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | ( |
) | $ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||||||||||
Other asset-backed |
|
|
|
|
|
( |
) | |
|
|
|
|
||||||||||||||||||||||||||||||||
Assets of consolidated VIEs: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Corporate obligations |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Collateralized debt obligations |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Loans receivable-residential |
|
|
|
|
|
( |
) | |
|
|
|
|
||||||||||||||||||||||||||||||||
Loan repurchase commitments |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Currency derivatives |
|
( |
) | |
|
|
|
|
|
|
|
( |
) | |||||||||||||||||||||||||||||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Total assets |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | ( |
) | $ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||||||||||
In millions |
Balance, Beginning of Period |
Total (Gains) / Losses Included in Earnings |
Unrealized (Gains) / Losses Included in OCI |
Purchases |
Issuances |
Settlements |
Sales |
Transfers into Level 3 (1) |
Transfers out of Level 3 (1) |
Ending Balance |
Change in Unrealized (Gains) Losses for the Period Included in Earnings for Liabilities still held as of March 31, 2019 |
|||||||||||||||||||||||||||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Medium-term notes |
$ | |
$ | |
$ | ( |
) | $ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||||||||||
Credit derivatives |
|
( |
) | |
|
|
|
|
|
|
|
( |
) | |||||||||||||||||||||||||||||||
Other derivatives |
|
|
|
|
|
|
|
|
|
|
- |
|||||||||||||||||||||||||||||||||
Other payable |
|
|
|
|
|
( |
) | |
|
|
|
|
||||||||||||||||||||||||||||||||
Liabilities of consolidated VIEs: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
VIE notes |
|
|
( |
) | |
|
( |
) | |
|
|
|
|
|||||||||||||||||||||||||||||||
Total liabilities |
$ | |
$ | |
$ | ( |
) | $ | |
$ | |
$ | ( |
) | $ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||||||||||
(1) | - Transferred in and out at the end of the period. |
|
Three Months Ended March 31, 2020 |
Three Months Ended March 31, 2019 |
||||||||||||||
|
|
Change in |
|
Change in |
||||||||||||
|
|
Unrealized |
|
Unrealized |
||||||||||||
|
|
Gains (Losses) |
|
Gains (Losses) |
||||||||||||
|
|
for the |
|
for the |
||||||||||||
|
|
Period Included |
|
Period Included |
||||||||||||
|
|
in Earnings |
|
in Earnings |
||||||||||||
|
|
for Assets |
|
for Assets |
||||||||||||
|
|
and |
|
and |
||||||||||||
|
Total Gains |
Liabilities still |
Total Gains |
Liabilities still |
||||||||||||
|
(Losses) |
held as of |
(Losses) |
held as of |
||||||||||||
|
Included |
March 31, |
Included |
March 31, |
||||||||||||
In millions |
in Earnings |
2020 |
in Earnings |
2019 |
||||||||||||
Revenues: |
|
|
|
|
||||||||||||
Unrealized gains (losses) on insured derivatives |
$ | ( |
) | $ | ( |
) | $ | |
$ | |
||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other net realized gains (losses) |
|
|
( |
) | ( |
) | ||||||||||
Revenues of consolidated VIEs: |
|
|
|
|
||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
|
|
|
|
||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
||||||||
Three Months Ended March 31, |
||||||||
In millions |
2020 |
2019 |
||||||
Investments carried at fair value (1) |
$ | ( |
) | $ | |
|||
Fixed-maturity securities held at fair value-VIE (2) |
( |
) | |
|||||
Loans receivable at fair value: |
||||||||
Residential mortgage loans (2) |
( |
) | |
|||||
Loan repurchase commitments (2) |
|
|
||||||
Other assets-VIE (2) |
( |
) | |
|||||
Medium-term notes (1) |
( |
) | ( |
) | ||||
Other liabilities (3) |
|
( |
) | |||||
Variable interest entity notes (2) |
|
|
(1) - | Reported within “Net gains (losses) of financial instruments at fair value and foreign exchange” on MBIA’s consolidated statements of operations. |
(2) - | Reported within “Net gains (losses) of financial instruments at fair value and foreign exchange-VIE” on MBIA’s consolidated statements of operations. |
(3) - | Reported within “Other net realized gains (losses)” on MBIA’s consolidated statements of operations. |
|
As of March 31, 2020 |
As of December 31, 2019 | |||||||||||||||||||||||
|
Contractual |
|
|
Contractual |
|
|
|||||||||||||||||||
|
Outstanding |
Fair |
|
Outstanding |
Fair |
|
|||||||||||||||||||
In millions |
Principal |
Value |
Difference |
Principal |
Value |
Difference |
|||||||||||||||||||
Loans receivable at fair value: |
|
|
|
|
|
|
|||||||||||||||||||
Residential mortgage loans |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||
Residential mortgage loans (90 days or more past due) |
|
|
|
|
|
|
|||||||||||||||||||
Total loans receivable and other instruments at fair value |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||
Variable interest entity notes |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||
Medium-term notes |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
|
March 31, 2020 | ||||||||||||||||||||
In millions |
Amortized Cost |
Allowance for Credit Losses |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
||||||||||||||||
AFS Investments |
|
|
|
|
|
||||||||||||||||
Fixed-maturity investments: |
|
|
|
|
|
||||||||||||||||
U.S. Treasury and government agency |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||
State and municipal bonds |
|
|
|
|
|
||||||||||||||||
Foreign governments |
|
|
|
( |
) | |
|||||||||||||||
Corporate obligations |
|
|
|
( |
) | |
|||||||||||||||
Mortgage-backed securities: |
|
|
|
|
|
||||||||||||||||
Residential mortgage-backed agency |
|
|
|
|
|
||||||||||||||||
Residential mortgage-backed non-agency |
|
|
|
( |
) | |
|||||||||||||||
Commercial mortgage-backed |
|
|
|
( |
) | |
|||||||||||||||
Asset-backed securities: |
|
|
|
|
|
||||||||||||||||
Collateralized debt obligations |
|
|
|
( |
) | |
|||||||||||||||
Other asset-backed |
|
|
|
( |
) | |
|||||||||||||||
Total AFS investments |
$ | |
$ | |
$ | |
$ | ( |
) | $ | |
||||||||||
HTM Investments |
|
|
|
|
|
||||||||||||||||
Assets of consolidated VIEs: |
|
|
|
|
|
||||||||||||||||
Corporate obligations |
$ | |
$ | ( |
) | $ | |
$ | |
$ | |
||||||||||
Total HTM investments |
$ | |
$ | ( |
) | $ | |
$ | |
$ | |
||||||||||
|
December 31, 2019 | ||||||||||||||||||||
In millions |
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
Other-Than- Temporary Impairments (1) |
||||||||||||||||
AFS Investments |
|
|
|
|
|
||||||||||||||||
Fixed-maturity investments: |
|
|
|
|
|
||||||||||||||||
U.S. Treasury and government agency |
$ | |
$ | |
$ | ( |
) | $ | |
$ | |
||||||||||
State and municipal bonds |
|
|
|
|
|
||||||||||||||||
Foreign governments |
|
|
|
|
|
||||||||||||||||
Corporate obligations |
|
|
( |
) | |
|
|||||||||||||||
Mortgage-backed securities: |
|
|
|
|
|
||||||||||||||||
Residential mortgage-backed agency |
|
|
|
|
|
||||||||||||||||
Residential mortgage-backed non-agency |
|
|
( |
) | |
|
|||||||||||||||
Commercial mortgage-backed |
|
|
|
|
|
||||||||||||||||
Asset-backed securities: |
|
|
|
|
|
||||||||||||||||
Collateralized debt obligations |
|
|
( |
) | |
|
|||||||||||||||
Other asset-backed |
|
|
( |
) | |
|
|||||||||||||||
Total AFS investments |
$ | |
$ | |
$ | ( |
) | $ | |
$ | |
||||||||||
HTM Investments |
|
|
|
|
|
||||||||||||||||
Assets of consolidated VIEs: |
|
|
|
|
|
||||||||||||||||
Corporate obligations |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||
Total HTM investments |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||
(1) - | Represents unrealized gains or losses on OTTI securities recognized in AOCI, which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities reported in AOCI. |
|
AFS Securities |
HTM Securities | |||||||||||||||
|
|
|
Consolidated VIEs | ||||||||||||||
In millions |
Net Amortized Cost |
Fair Value |
Net Amortized Cost |
Fair Value |
|||||||||||||
Due in one year or less |
$ | |
$ | |
$ | |
$ | |
|||||||||
Due after one year through five years |
|
|
|
|
|||||||||||||
Due after five years through ten years |
|
|
|
|
|||||||||||||
Due after ten years |
|
|
|
|
|||||||||||||
Mortgage-backed and asset-backed |
|
|
|
|
|||||||||||||
Total fixed-maturity investments |
$ | |
$ | |
$ | |
$ | |
|||||||||
|
March 31, 2020 | ||||||||||||||||||||||||
|
Less than 12 Months |
12 Months or Longer |
Total | ||||||||||||||||||||||
|
Fair |
Unrealized |
Fair |
Unrealized |
Fair |
Unrealized |
|||||||||||||||||||
In millions |
Value |
Losses |
Value |
Losses |
Value |
Losses |
|||||||||||||||||||
AFS Investments |
|
|
|
|
|
|
|||||||||||||||||||
Fixed-maturity investments: |
|
|
|
|
|
|
|||||||||||||||||||
U.S. Treasury and government agency |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||
State and municipal bonds |
|
|
|
|
|
|
|||||||||||||||||||
Foreign governments |
|
( |
) | |
|
|
( |
) | |||||||||||||||||
Corporate obligations |
|
( |
) | |
( |
) | |
( |
) | ||||||||||||||||
Mortgage-backed securities: |
|
|
|
|
|
|
|||||||||||||||||||
Residential mortgage-backed non-agency |
|
( |
) | |
( |
) | |
( |
) | ||||||||||||||||
Commercial mortgage-backed |
|
( |
) | |
|
|
( |
) | |||||||||||||||||
Asset-backed securities: |
|
|
|
|
|
|
|||||||||||||||||||
Collateralized debt obligations |
|
( |
) | |
( |
) | |
( |
) | ||||||||||||||||
Other asset-backed |
|
( |
) | |
|
|
( |
) | |||||||||||||||||
Total AFS investments |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | $ | |
$ | ( |
) | ||||||||||
|
December 31, 2019 | ||||||||||||||||||||||||
|
Less than 12 Months |
12 Months or Longer |
Total | ||||||||||||||||||||||
|
Fair |
Unrealized |
Fair |
Unrealized |
Fair |
Unrealized |
|||||||||||||||||||
In millions |
Value |
Losses |
Value |
Losses |
Value |
Losses |
|||||||||||||||||||
AFS Investments |
|
|
|
|
|
|
|||||||||||||||||||
Fixed-maturity investments: |
|
|
|
|
|
|
|||||||||||||||||||
U.S. Treasury and government agency |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | $ | |
$ | ( |
) | ||||||||||
State and municipal bonds |
|
|
|
|
|
|
|||||||||||||||||||
Corporate obligations |
|
( |
) | |
|
|
( |
) | |||||||||||||||||
Mortgage-backed securities: |
|
|
|
|
|
|
|||||||||||||||||||
Residential mortgage-backed agency |
|
|
|
|
|
|
|||||||||||||||||||
Residential mortgage-backed non-agency |
|
|
|
( |
) | |
( |
) | |||||||||||||||||
Commercial mortgage-backed |
|
|
|
|
|
|
|||||||||||||||||||
Asset-backed securities: |
|
|
|
|
|
|
|||||||||||||||||||
Collateralized debt obligations |
|
|
|
( |
) | |
( |
) | |||||||||||||||||
Other asset-backed |
|
( |
) | |
|
|
( |
) | |||||||||||||||||
Total AFS investments |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | $ | |
$ | ( |
) | ||||||||||
|
AFS Securities | ||||||||||||
Percentage of Fair Value Below Book Value |
Number of Securities |
Book Value (in millions) |
Fair Value (in millions) |
||||||||||
> |
|
$ | |
$ | |
||||||||
> |
|
|
|
||||||||||
> |
|
|
|
||||||||||
> |
|
|
|
||||||||||
Total |
|
$ | |
$ | |
||||||||
In millions |
Fair Value |
Unrealized Loss |
Insurance Loss Reserve (2) |
||||||||||
Mortgage-backed: |
|
|
|
||||||||||
MBIA (1) |
$ | |
$ | ( |
$ | |
(1) - | Includes investments insured by MBIA Corp. and National. |
(2) - | Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured. |
In millions |
Three Months Ended March 31, 2020 |
||||||||||||||||||||||||
Balance as of January 1, 2020 1 |
Current period provision for expected credit losses |
Initial allowance recognized for PCD assets |
Write-Offs |
Recoveries |
Balance as of March 31, 2020 |
||||||||||||||||||||
HTM Investments |
|||||||||||||||||||||||||
Assets of consolidated VIEs: |
|||||||||||||||||||||||||
Corporate obligations |
$ | $ | $ | $ | $ | $ | |||||||||||||||||||
Total Allowance on HTM investments |
$ | $ | $ | $ | $ | $ | |||||||||||||||||||
(1) - | Represents transition adjustment upon adoption of ASU 2016-13. |
In millions |
Three Months Ended |
||||
Credit Losses Recognized in Earnings Related to Other-Than-Temporary Impairments |
March 31, 2019 |
||||
Beginning balance |
$ | ||||
Additions for credit loss impairments recognized in the current period on securities previously impaired |
|||||
Ending balance |
$ | ||||
Three Months Ended March 31, | |||||||||
In millions |
2020 |
2019 |
|||||||
Proceeds from sales |
$ | $ | |||||||
Gross realized gains |
$ | $ | |||||||
Gross realized losses |
$ | ( |
) | $ | ( |
) |
Three Months Ended March 31, | |||||||||
In millions |
2020 |
2019 |
|||||||
Net gains and (losses) recognized during the period on equity securities |
$ | ( |
) | $ | |||||
Less: |
|||||||||
Net gains and (losses) recognized during the period on equity securities sold during the period |
|||||||||
Unrealized gains and (losses) recognized during the period on equity securities still held at the reporting date |
$ | ( |
) | $ | |||||
$ in millions |
As of March 31, 2020 | ||||||||||||||||||||||||||||||||
Notional Value |
|||||||||||||||||||||||||||||||||
Credit Derivatives Sold |
Weighted Average Remaining Expected Maturity |
AAA |
AA |
A |
BBB |
Below Investment Grade |
Total Notional |
Fair Value Asset (Liability) |
|||||||||||||||||||||||||
Insured credit default swaps |
$ | $ | $ | $ | $ | $ | $ | ( |
) | ||||||||||||||||||||||||
Insured swaps |
( |
) | |||||||||||||||||||||||||||||||
Total notional |
$ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Total fair value |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||||||||||||||||
$ in millions |
As of December 31, 2019 | ||||||||||||||||||||||||||||||||
Notional Value |
|||||||||||||||||||||||||||||||||
Credit Derivatives Sold |
Weighted Average Remaining Expected Maturity |
AAA |
AA |
A |
BBB |
Below Investment Grade |
Total Notional |
Fair Value Asset (Liability) |
|||||||||||||||||||||||||
Insured credit default swaps |
$ | $ | $ | $ | $ | $ | $ | ( |
) | ||||||||||||||||||||||||
Insured swaps |
( |
) | |||||||||||||||||||||||||||||||
Total notional |
$ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Total fair value |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||||||||||||||||
In millions |
Derivative Assets (1) |
Derivative Liabilities (1) | |||||||||||||||||||
Derivative Instruments |
Notional Amount Outstanding |
Balance Sheet Location |
Fair Value |
Balance Sheet Location |
Fair Value |
||||||||||||||||
Not designated as hedging instruments: |
|||||||||||||||||||||
Insured credit default swaps |
$ | Other assets |
$ | Derivative liabilities |
$ | ( |
) | ||||||||||||||
Insured swaps |
Other assets |
Derivative liabilities |
( |
) | |||||||||||||||||
Interest rate swaps |
Other assets |
Derivative liabilities |
( |
) | |||||||||||||||||
Interest rate swaps-embedded |
Medium-term notes |
Medium-term notes |
( |
) | |||||||||||||||||
Currency swaps-VIE |
Other assets-VIE |
Derivative liabilities-VIE |
|||||||||||||||||||
All other |
Other assets |
Derivative liabilities |
( |
) | |||||||||||||||||
Total non-designated derivatives |
$ | $ | $ | ( |
) | ||||||||||||||||
(1) - | In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Company’s embedded derivative instruments is determined by the location of the related host contract. |
In millions |
Derivative Assets (1) |
Derivative Liabilities (1) | |||||||||||||||||||
Derivative Instruments |
Notional Amount Outstanding |
Balance Sheet Location |
Fair Value |
Balance Sheet Location |
Fair Value |
||||||||||||||||
Not designated as hedging instruments: |
|||||||||||||||||||||
Insured credit default swaps |
$ | Other assets |
$ | Derivative liabilities |
$ | ( |
) | ||||||||||||||
Insured swaps |
Other assets |
Derivative liabilities |
( |
) | |||||||||||||||||
Interest rate swaps |
Other assets |
Derivative liabilities |
( |
) | |||||||||||||||||
Interest rate swaps-embedded |
Medium-term notes |
Medium-term notes |
( |
) | |||||||||||||||||
Currency swaps-VIE |
Other assets-VIE |
Derivative liabilities-VIE |
|||||||||||||||||||
All other |
Other assets |
Derivative liabilities |
( |
) | |||||||||||||||||
Total non-designated derivatives |
$ | $ | $ | ( |
) | ||||||||||||||||
(1) - | In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Company’s embedded derivative instruments is determined by the location of the related host contract. |
In millions |
||||||||||
Derivatives Not Designated as |
Three Months Ended March 31, |
|||||||||
Hedging Instruments |
Location of Gain (Loss) Recognized in Income on Derivative |
2020 |
2019 |
|||||||
Insured credit default swaps |
Unrealized gains (losses) on insured derivatives |
$ | ( |
) | $ | |||||
Interest rate swaps |
Net gains (losses) on financial instruments at fair value and foreign exchange |
( |
) | ( |
) | |||||
Currency swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE |
( |
) | |||||||
All other |
Net gains (losses) on financial instruments at fair value and foreign exchange |
( |
) | |||||||
Total |
$ | ( |
) | $ | ( |
) | ||||
Three Months Ended March 31, | |||||||||
In millions |
2020 |
2019 |
|||||||
Income (loss) before income taxes |
$ | ( |
) | $ | ( |
) | |||
Provision (benefit) for income taxes |
$ | $ | |||||||
Effective tax rate |
- |
• | MBIA Inc.; |
• | GFL; |
• | IMC; |
• | MZ Funding LLC; and |
• | LaCrosse Financial Products, LLC, a wholly-owned affiliate, to which MBIA Insurance Corporation has written insurance policies guaranteeing the obligations under CDS. Certain policies cover payments potentially due under CDS, including termination payments that may become due in certain circumstances, including the occurrence of certain insolvency or payment defaults under the CDS or derivatives contracts by the insured counterparty or by the guarantor. |
|
Three Months Ended March 31, 2020 |
|||||||||||||||||||
In millions |
U.S. Public Finance Insurance |
Corporate |
International and Structured Finance Insurance |
Eliminations |
Consolidated |
|||||||||||||||
Revenues (1) |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
( |
( |
|
|
( |
|||||||||||||||
Revenues of consolidated VIEs |
|
|
|
|
|
|||||||||||||||
Inter-segment revenues (2) |
|
|
|
( |
|
|||||||||||||||
Total revenues |
|
( |
|
( |
( |
|||||||||||||||
Losses and loss adjustment |
|
|
|
|
|
|||||||||||||||
Operating |
|
|
|
|
|
|||||||||||||||
Interest |
|
|
|
|
|
|||||||||||||||
Expenses of consolidated VIEs |
|
|
|
|
|
|||||||||||||||
Inter-segment expenses (2) |
|
|
|
( |
|
|||||||||||||||
Total expenses |
|
|
|
( |
|
|||||||||||||||
Income (loss) before income taxes |
$ | ( |
$ | ( |
$ | ( |
$ | |
$ | ( |
||||||||||
Identifiable assets |
$ | |
$ | |
$ | |
$ | ( |
(3) |
$ | |
|||||||||
(1) - | Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. |
(2) - | Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. |
(3) - | Consists primarily of intercompany reinsurance balances and repurchase agreements. |
|
Three Months Ended March 31, 2019 |
|||||||||||||||||||
In millions |
U.S. Public Finance Insurance |
Corporate |
International and Structured Finance Insurance |
Eliminations |
Consolidated |
|||||||||||||||
Revenues (1) |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Net change in fair value of insured derivatives |
|
|
|
|
|
|||||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
|
( |
|
|
|
|||||||||||||||
Net investment losses related to other-than-temporary impairments |
( |
|
|
|
( |
|||||||||||||||
Other net realized gains (losses) |
|
( |
|
|
|
|||||||||||||||
Revenues of consolidated VIEs |
( |
|
|
|
( |
|||||||||||||||
Inter-segment revenues (2) |
|
|
|
( |
|
|||||||||||||||
Total revenues |
|
|
|
( |
|
|||||||||||||||
Losses and loss adjustment |
( |
|
|
|
( |
|||||||||||||||
Operating |
|
|
|
|
|
|||||||||||||||
Interest |
|
|
|
|
|
|||||||||||||||
Expenses of consolidated VIEs |
|
|
|
|
|
|||||||||||||||
Inter-segment expenses (2) |
|
|
|
( |
|
|||||||||||||||
Total expenses |
( |
|
|
( |
|
|||||||||||||||
Income (loss) before income taxes |
$ | |
$ | ( |
$ | ( |
$ | |
$ | ( |
||||||||||
(1) - | Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. |
(2) - | Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. |
Three Months Ended March 31, | |||||||||
In millions except per share amounts |
2020 |
2019 |
|||||||
Basic earnings per share: |
|||||||||
Net income (loss) available to common shareholders |
( |
) | ( |
) | |||||
Basic weighted average shares (1) |
|
|
|||||||
Net income (loss) per basic common share |
$ | ( |
) | $ | ( |
) | |||
Diluted earnings per share: |
|||||||||
Net income (loss) available to common shareholders |
( |
) | ( |
) | |||||
Diluted weighted average shares (1) |
|
|
|||||||
Net income (loss) per diluted common share |
$ | ( |
) | $ | ( |
) | |||
Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect |
|
|
(1) - | Includes |
In millions |
Unrealized Gains (Losses) on AFS Securities, Net |
Foreign Currency Translation, Net |
Instrument-Specific Credit Risk of Liabilities Measured at Fair Value, Net |
Total |
|||||||||||||
Balance, December 31, 2019 |
$ | |
$ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||
Other comprehensive income (loss) before reclassifications |
|
|
|
|
|||||||||||||
Amounts reclassified from AOCI |
( |
) | |
|
( |
) | |||||||||||
Net period other comprehensive income (loss) |
|
|
|
|
|||||||||||||
Balance, March 31, 2020 |
$ | |
$ | ( |
) | $ | ( |
) | $ | |
|||||||
In millions |
Amounts Reclassified from AOCI |
|||||||||
Three Months Ended March 31, |
||||||||||
Details about AOCI Components |
2020 |
2019 |
Affected Line Item on the Consolidated Statements of Operations | |||||||
Unrealized gains (losses) on AFS securities: |
||||||||||
Realized gains (losses) on sale of securities |
$ | |
$ | |
Net gains (losses) on financial instruments at fair value and foreign exchange | |||||
Credit losses |
|
( |
Net investment losses related to OTTI | |||||||
Total unrealized gains (losses) on AFS securities |
|
|
||||||||
Instrument-specific credit risk of liabilities: |
||||||||||
Settlement of liabilities |
( |
( |
Net gains (losses) on financial instruments at fair value and foreign exchange | |||||||
Total reclassifications for the period |
$ | |
$ | |
Net income (loss) | |||||
$ in millions |
As of March 31, 2020 |
Balance Sheet Location |
||||||
Right-of-use asset |
$ | |
Other assets |
|||||
Lease liability |
$ | |
Other liabilities |
|||||
Weighted average remaining lease term (years) |
|
|||||||
Discount rate used for operating leases |
|
% | ||||||
Total future minimum lease payments |
$ | |
Three Months Ended March 31, | |||||||||
In millions except per share amounts |
2020 |
2019 |
|||||||
Net income (loss) |
$ | (333) |
$ | (21) |
|||||
Net income (loss) per diluted share |
$ | (4.62) |
$ | (0.24) |
|||||
Adjusted net income (loss) (1) |
$ | (47) |
$ | 39 |
|||||
Adjusted net income (loss) per diluted share (1) |
$ | (0.65) |
$ | 0.45 |
|||||
Cost of shares purchased or repurchased |
$ | 65 |
$ | 4 |
(1) - | Adjusted net income (loss) and adjusted net income (loss) per diluted share are non-GAAP measures. Refer to the following “Results of Operations” section for a discussion of adjusted net income (loss) and adjusted net income (loss) per diluted share and a reconciliation of GAAP net income to adjusted net income (loss) and GAAP net income per diluted share to adjusted net income (loss) per diluted share. |
Three Months Ended March 31, | |||||||||
In millions except per share amounts |
2020 |
2019 |
|||||||
Total revenues |
$ | (6 |
) | $ | 50 |
||||
Total expenses |
327 |
69 |
|||||||
Income (loss) before income taxes |
(333 |
) | (19 |
) | |||||
Provision (benefit) for income taxes |
- |
2 |
|||||||
Net income (loss) |
$ | (333 |
) | $ | (21 |
) | |||
Net income (loss) per common share: |
|||||||||
Basic |
$ | (4.62 |
) | $ | (0.24 |
) | |||
Diluted |
$ | (4.62 |
) | $ | (0.24 |
) | |||
Weighted average number of common shares outstanding: |
|||||||||
Basic |
72.1 |
85.6 |
|||||||
Diluted |
72.1 |
85.6 |
• | Mark-to-market gains (losses) on financial instruments mark-to-market gains (losses) on financial instruments that primarily include interest rate swaps and hybrid financial instruments. These amounts fluctuate based on market interest rates, credit spreads and other market factors. |
• | Foreign exchange gains (losses) non-functional currencies. Given the possibility of volatility in foreign exchange markets, we exclude the impact of foreign exchange gains (losses) to provide a measurement of comparability of adjusted net income (loss). |
• | Net gains (losses) on sales of investments and impaired securities |
• | Income taxes pre-tax adjustments, if applicable. |
Three Months Ended March 31, | |||||||||
In millions except share and per share amounts |
2020 |
2019 |
|||||||
Net income (loss) |
$ | (333 |
) | $ | (21 |
) | |||
Less: adjusted net income (loss) adjustments: |
|||||||||
Income (loss) before income taxes of our international and structured finance insurance segment and eliminations |
(220 |
) | (55 |
) | |||||
Adjustments to income before income taxes of our U.S. public finance insurance and corporate segments: |
|||||||||
Mark-to-market gains (losses) on financial instruments(1) |
(77 |
) | (16 |
) | |||||
Foreign exchange gains (losses) (1) |
8 |
7 |
|||||||
Net gains (losses) on sales of investments (1) |
3 |
33 |
|||||||
Net investment losses related to impairments of securities |
- |
(28 |
) | ||||||
Other net realized gains (losses) |
- |
(1 |
) | ||||||
Adjusted net income adjustment to the (provision) benefit for income tax (2) |
- |
- |
|||||||
Adjusted net income (loss) |
$ | (47 |
) | $ | 39 |
||||
Adjusted net income (loss) per diluted common share (3) |
(0.65 |
) | 0.45 |
||||||
Gain (loss) related to our U.S. public finance insurance segment VIE consolidations included in adjusted net income (loss) |
- |
(13 |
) | ||||||
Gain (loss) related to our U.S. public finance insurance segment VIE consolidations per diluted common share included in adjusted net income (loss) per diluted common share |
- |
(0.15 |
) |
(1) - | Reported within “Net gains (losses) on financial instruments at fair value and foreign exchange” on the Company’s consolidated statements of operations. |
(2) - | Reported within “Provision (benefit) for income taxes” on the Company’s consolidated statements of operations. |
(3) - | Adjusted net income (loss) per diluted common share is calculated by taking adjusted net income (loss) divided by the GAAP weighted average number of diluted common shares outstanding. |
• | Negative Book value of MBIA Corp. |
• | Net unrealized (gains) losses on available-for-sale (“AFS”) securities excluding MBIA Corp. |
• | Net unearned premium revenue in excess of expected losses of National |
In millions except share and per share amounts |
As of March 31, 2020 |
As of December 31, 2019 |
|||||||
Total shareholders’ equity of MBIA Inc. |
$ | 484 |
$ | 826 |
|||||
Common shares outstanding |
72,160,406 |
79,433,293 |
|||||||
GAAP book value per share |
$ | 6.70 |
$ | 10.40 |
|||||
Management’s adjustments described above: |
|||||||||
Remove negative book value per share of MBIA Corp. |
(21.65 |
) | (16.81 |
) | |||||
Remove net unrealized gains (losses) on available-for-sale securities included in other comprehensive income (loss) |
2.06 |
1.29 |
|||||||
Include net unearned premium revenue in excess of expected losses |
3.74 |
3.46 |
Three Months Ended March 31, |
Percent |
||||||||||||
In millions |
2020 |
2019 |
Change |
||||||||||
Net premiums earned |
$ | 15 |
$ | 18 |
-17% |
||||||||
Net investment income |
21 |
27 |
-22% |
||||||||||
Fees and reimbursements |
1 |
1 |
-% |
||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(18 |
) | 40 |
-145% |
|||||||||
Net investment losses related to other-than-temporary impairments |
- |
(28 |
) | -100% |
|||||||||
Other net realized gains (losses) |
- |
1 |
-100% |
||||||||||
Revenues of consolidated VIEs: |
|||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
- |
28 |
-100% |
||||||||||
Other net realized gains (losses) |
- |
(43 |
) | -100% |
|||||||||
Total revenues |
19 |
44 |
-57% |
||||||||||
Losses and loss adjustment |
48 |
(50 |
) | n/m |
|||||||||
Amortization of deferred acquisition costs |
3 |
4 |
-25% |
||||||||||
Operating |
13 |
13 |
-% |
||||||||||
Total expenses |
64 |
(33 |
) | n/m |
|||||||||
Income (loss) before income taxes |
$ | (45 |
) | $ | 77 |
n/m |
|||||||
In millions |
March 31, 2020 |
December 31, 2019 |
Percent Change |
||||||||||
Assets: |
|||||||||||||
Insurance loss recoverable |
$ | 954 |
$ | 911 |
5% |
||||||||
Reinsurance recoverable on paid and unpaid losses (1) |
7 |
14 |
-50% |
||||||||||
Liabilities: |
|||||||||||||
Loss and LAE reserves |
451 |
432 |
5% |
||||||||||
Insurance loss recoverable - ceded (2) |
20 |
19 |
6% |
||||||||||
Net reserve (salvage) |
$ | (490 |
) | $ | (474 |
) | 4% |
||||||
(1) - | Reported within “Other assets” on our consolidated balance sheets. |
(2) - | Reported within “Other liabilities” on our consolidated balance sheets. |
Three Months Ended March 31, |
Percent Change |
||||||||||||
In millions |
2020 |
2019 |
|||||||||||
Gross expenses |
$ | 13 |
$ | 13 |
-% |
||||||||
Amortization of deferred acquisition costs |
$ | 3 |
$ | 4 |
-25% |
||||||||
Operating |
13 |
13 |
-% |
||||||||||
Total insurance operating expenses |
$ | 16 |
$ | 17 |
-6% |
||||||||
Gross Par Outstanding | |||||||||||||||||
In millions |
March 31, 2020 |
December 31, 2019 | |||||||||||||||
Rating |
Amount |
% |
Amount |
% |
|||||||||||||
AAA |
$ | 2,595 |
5.5% |
$ | 2,709 |
5.5% |
|||||||||||
AA |
18,723 |
39.5% |
19,155 |
39.2% |
|||||||||||||
A |
14,639 |
30.9% |
15,022 |
30.7% |
|||||||||||||
BBB |
7,647 |
16.2% |
8,225 |
16.8% |
|||||||||||||
Below investment grade |
3,747 |
7.9% |
3,809 |
7.8% |
|||||||||||||
Total |
$ | 47,351 |
100.0% |
$ | 48,920 |
100.0% |
|||||||||||
In millions |
Gross Par Outstanding |
Debt Service Outstanding |
National Internal Rating |
||||||||||
Puerto Rico Electric Power Authority (PREPA) |
$ | 968 |
$ | 1,315 |
d |
||||||||
Puerto Rico Commonwealth GO |
485 |
587 |
d |
||||||||||
Puerto Rico Public Buildings Authority (PBA) (1) |
170 |
228 |
d |
||||||||||
Puerto Rico Highway and Transportation Authority Transportation Revenue (PRHTA) |
523 |
895 |
d |
||||||||||
Puerto Rico Highway and Transportation Authority - Subordinated Transportation Revenue (PRHTA) |
27 |
36 |
d |
||||||||||
Puerto Rico Highway and Transportation Authority Highway Revenue (PRHTA) |
54 |
(2) |
75 |
d |
|||||||||
University of Puerto Rico System Revenue |
76 |
103 |
d |
||||||||||
Inter American University of Puerto Rico Inc. |
19 |
26 |
a3 |
||||||||||
Total |
$ | 2,322 |
$ | 3,265 |
|||||||||
(1) - | Additionally secured by the guarantee of the Commonwealth of Puerto Rico. |
(2) - | Includes CABs that reflect the gross par amount at the time of issuance of the insurance policy. As of March 31, 2020, gross par outstanding plus CABs accreted interest was $56 million. |
Nine Months |
|||||||||||||||||||||||||||||
Ending |
|||||||||||||||||||||||||||||
December 31, |
|||||||||||||||||||||||||||||
2020 |
2021 |
2022 |
2023 |
2024 |
Thereafter |
Total |
|||||||||||||||||||||||
Puerto Rico Electric Power Authority (PREPA) |
$ | 90 |
$ | 140 |
$ | 140 |
$ | 137 |
$ | 137 |
$ | 671 |
$ | 1,315 |
|||||||||||||||
Puerto Rico Commonwealth GO |
210 |
82 |
19 |
14 |
13 |
249 |
587 |
||||||||||||||||||||||
Puerto Rico Public Buildings Authority (PBA) |
5 |
24 |
9 |
27 |
43 |
120 |
228 |
||||||||||||||||||||||
Puerto Rico Highway and Transportation Authority Transportation Revenue (PRHTA) |
13 |
27 |
27 |
36 |
33 |
759 |
895 |
||||||||||||||||||||||
Puerto Rico Highway and Transportation Authority - Subordinated Transportation Revenue (PRHTA) |
1 |
1 |
9 |
1 |
1 |
23 |
36 |
||||||||||||||||||||||
Puerto Rico Highway and Transportation Authority Highway Revenue (PRHTA) |
14 |
4 |
2 |
4 |
2 |
49 |
75 |
||||||||||||||||||||||
University of Puerto Rico System Revenue |
6 |
7 |
7 |
12 |
11 |
60 |
103 |
||||||||||||||||||||||
Inter American University of Puerto Rico Inc. |
3 |
3 |
3 |
3 |
3 |
11 |
26 |
||||||||||||||||||||||
Total |
$ | 342 |
$ | 288 |
$ | 216 |
$ | 234 |
$ | 243 |
$ | 1,942 |
$ | 3,265 |
|||||||||||||||
Three Months Ended March 31, |
Percent | |||||||||
In millions |
2020 |
2019 |
Change | |||||||
Net investment income |
$ | 8 |
$ | 10 |
-20% | |||||
Fees |
16 |
16 |
-% | |||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(56 |
) | (18 |
) | n/m | |||||
Other net realized gains (losses) |
- |
(1 |
) | -100% | ||||||
Total revenues |
(32 |
) | 7 |
n/m | ||||||
Operating |
15 |
23 |
-35% | |||||||
Interest |
21 |
24 |
-13% | |||||||
Total expenses |
36 |
47 |
-23% | |||||||
Income (loss) before income taxes |
(68 |
) | (40 |
) | 70% | |||||
Three Months Ended March 31, |
Percent |
||||||||||||
In millions |
2020 |
2019 |
Change |
||||||||||
Net premiums earned |
$ | 6 |
$ | 7 |
-14% |
||||||||
Net investment income |
1 |
2 |
-50% |
||||||||||
Fees and reimbursements |
4 |
4 |
-% |
||||||||||
Unrealized gains (losses) on insured derivatives |
- |
14 |
-100% |
||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
11 |
- |
n/m |
||||||||||
Other net realized gains (losses) |
- |
1 |
-100% |
||||||||||
Revenues of consolidated VIEs: |
|||||||||||||
Net investment income |
8 |
10 |
-20% |
||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
15 |
(10 |
) | n/m |
|||||||||
Other net realized gains (losses) |
(9 |
) | - |
n/m |
|||||||||
Total revenues |
36 |
28 |
29% |
||||||||||
Losses and loss adjustment |
195 |
12 |
n/m |
||||||||||
Amortization of deferred acquisition costs |
4 |
5 |
-20% |
||||||||||
Operating |
7 |
7 |
-% |
||||||||||
Interest |
31 |
33 |
-6% |
||||||||||
Expenses of consolidated VIEs: |
|||||||||||||
Operating |
2 |
3 |
-33% |
||||||||||
Interest |
17 |
24 |
-29% |
||||||||||
Total expenses |
256 |
84 |
n/m |
||||||||||
Income (loss) before income taxes |
(220 |
) | (56 |
) | n/m |
||||||||
Three Months Ended March 31, |
Percent Change |
|||||||||||
In millions |
2020 |
2019 |
||||||||||
Net premiums earned: |
||||||||||||
Non-U.S. |
$ | 5 |
$ | 6 |
-17% |
|||||||
U.S. |
1 |
1 |
-% |
|||||||||
Total net premiums earned |
$ | 6 |
$ | 7 |
-14% |
|||||||
VIEs (eliminated in consolidation) |
$ | (4) |
$ | 2 |
n/m |
|||||||
March 31, |
December 31, |
Percent |
||||||||||
In millions |
2020 |
2019 |
Change |
|||||||||
Assets: |
||||||||||||
Insurance loss recoverable |
$ | 653 |
$ | 783 |
-17% |
|||||||
Reinsurance recoverable on paid and unpaid losses (1) |
5 |
5 |
-% |
|||||||||
Liabilities: |
||||||||||||
Loss and LAE reserves |
515 |
469 |
10% |
|||||||||
Net reserve (salvage) |
$ | (143) |
$ | (319) |
-56% |
|||||||
Three Months Ended March 31, |
Percent |
||||||||||||
In millions |
2020 |
2019 |
Change |
||||||||||
Gross expenses |
$ | 7 |
$ | 7 |
-% |
||||||||
Amortization of deferred acquisition costs |
$ | 4 |
$ | 5 |
-20% |
||||||||
Operating |
7 |
7 |
-% |
||||||||||
Total insurance operating expenses |
$ | 11 |
$ | 12 |
-8% |
||||||||
In millions |
Gross Par Outstanding as of |
Percent |
||||||||||
March 31, |
December 31, |
|||||||||||
Collateral Type |
2020 |
2019 |
Change |
|||||||||
HELOC Second-lien |
$ | 353 |
$ | 381 |
-7% |
|||||||
CES Second-lien |
129 |
136 |
-5% |
|||||||||
Alt-A First-lien(1) |
849 |
909 |
-7% |
|||||||||
Subprime First-lien |
327 |
343 |
-5% |
|||||||||
Prime First-lien |
7 |
7 |
-% |
|||||||||
Total |
$ | 1,665 |
$ | 1,776 |
-6% |
|||||||
(1) | - Includes international exposure of $210 million and $248 million as of March 31, 2020 and December 31, 2019, respectively. |
Three Months Ended March 31, | |||||||||
In millions |
2020 |
2019 |
|||||||
Income (loss) before income taxes |
$ | (333 |
) | $ | (19 |
) | |||
Provision (benefit) for income taxes |
$ | - |
$ | 2 |
|||||
Effective tax rate |
-% |
-10.5% |
In millions except per share amounts |
Three Months Ended March 31, |
|||||||
2020 |
2019 |
|||||||
Number of shares purchased or repurchased |
8.1 |
0.5 |
||||||
Average price paid per share |
$ | 7.99 |
$ | 8.94 |
||||
Remaining authorization as of March 31 |
$ | 36 |
$ | 198 |
As of March 31, |
As of December 31, |
|||||||
In millions |
2020 |
2019 |
||||||
Policyholders’ surplus |
$ | 1,618 |
$ | 1,891 |
||||
Contingency reserves |
481 |
485 |
||||||
Statutory capital |
2,099 |
2,376 |
||||||
Unearned premiums |
399 |
411 |
||||||
Present value of installment premiums (1) |
132 |
139 |
||||||
Premium resources (2) |
531 |
550 |
||||||
Net loss and LAE reserves (1) |
(42) |
(169) |
||||||
Salvage reserves (1) |
745 |
789 |
||||||
Gross loss and LAE reserves |
703 |
620 |
||||||
Total claims-paying resources |
$ | 3,333 |
$ | 3,546 |
||||
As of March 31, |
As of December 31, |
|||||||
In millions |
2020 |
2019 |
||||||
Policyholders’ surplus |
$ | 206 |
$ | 282 |
||||
Contingency reserves |
176 |
194 |
||||||
Statutory capital |
382 |
476 |
||||||
Unearned premiums |
84 |
93 |
||||||
Present value of installment premiums (1) (4) |
86 |
92 |
||||||
Premium resources (2) |
170 |
185 |
||||||
Net loss and LAE reserves (1) |
(582) |
(669) |
||||||
Salvage reserves (1) (3) |
1,121 |
1,247 |
||||||
Gross loss and LAE reserves |
539 |
578 |
||||||
Total claims-paying resources |
$ | 1,091 |
$ | 1,239 |
||||
• | principal and interest receipts on assets held in its investment portfolio, including proceeds from the sale of assets; |
• | recoveries associated with insurance loss payments; and |
• | installment premiums. |
• | loss payments and LAE on insured transactions; |
• | payments of dividends; and |
• | payments of operating expenses, taxes and investment portfolio asset purchases. |
• | dividends from National; |
• | available cash and liquid assets not subject to collateral posting requirements; |
• | principal and interest receipts on assets held in its investment portfolio, including proceeds from the sale of assets; |
• | release of funds under the tax sharing agreement; and |
• | access to capital markets. |
• | servicing outstanding unsecured corporate debt obligations and MTNs; |
• | meeting collateral posting requirements under investment agreements and derivative arrangements; |
• | payments related to interest rate swaps; |
• | payments of operating expenses; and |
• | funding share repurchases and debt buybacks. |
• | recoveries associated with insurance loss payments; |
• | installment premiums and fees; and |
• | principal and interest receipts on assets held in its investment portfolio, including the proceeds from the sale of assets. |
• | loss and LAE or commutation payments on insured transactions; |
• | repayment of the Refinanced Facility; and |
• | payments of operating expenses. |
Three Months Ended March 31, |
|||||||||||||
In millions |
2020 |
2019 |
Percent Change |
||||||||||
Statement of cash flow data: |
|||||||||||||
Net cash provided (used) by: |
|||||||||||||
Operating activities |
$ | (82 |
) | $ | (70 |
) | 17% |
||||||
Investing activities |
610 |
128 |
n/m |
||||||||||
Financing activities |
(394 |
) | (175 |
) | 125% |
||||||||
Cash and cash equivalents - beginning of period |
83 |
280 |
-70% |
||||||||||
Cash and cash equivalents - end of period |
$ | 217 |
$ | 163 |
33% |
||||||||
As of March 31, |
As of December 31, |
Percent |
||||||||||
In millions |
2020 |
2019 |
Change |
|||||||||
Available-for-sale investments:(1) |
||||||||||||
U.S. public finance insurance: |
||||||||||||
Amortized cost |
$ | 1,976 |
$ | 2,051 |
-4% |
|||||||
Unrealized net gain (loss) |
51 |
40 |
28% |
|||||||||
Fair value |
2,027 |
2,091 |
-3% |
|||||||||
Corporate: |
||||||||||||
Amortized cost |
631 |
759 |
-17% |
|||||||||
Unrealized net gain (loss) |
99 |
63 |
57% |
|||||||||
Fair value |
730 |
822 |
-11% |
|||||||||
International and structured finance insurance: |
||||||||||||
Amortized cost |
164 |
174 |
-6% |
|||||||||
Unrealized net gain (loss) |
10 |
12 |
-17% |
|||||||||
Fair value |
174 |
186 |
-6% |
|||||||||
Total available-for-sale investments: |
||||||||||||
Amortized cost |
2,771 |
2,984 |
-7% |
|||||||||
Unrealized net gain (loss) |
160 |
115 |
39% |
|||||||||
Total available-for-sale investments at fair value |
2,931 |
3,099 |
-5% |
|||||||||
Investments carried at fair value: (2) |
||||||||||||
U.S. public finance insurance |
159 |
260 |
-39% |
|||||||||
Corporate |
48 |
79 |
-39% |
|||||||||
International and structured finance insurance |
15 |
24 |
-38% |
|||||||||
Total investments carried at fair value |
222 |
363 |
-39% |
|||||||||
Consolidated investments at carrying value |
$ | 3,153 |
$ | 3,462 |
-9% |
|||||||
International |
|||||||||||||||||
U.S. Public |
and Structured |
||||||||||||||||
Finance |
Finance |
||||||||||||||||
Insurance |
Corporate |
Insurance |
Total |
||||||||||||||
Weighted average credit quality ratings |
Aa |
Aa |
Aa |
Aa |
|||||||||||||
Investment grade percentage |
97% |
99% |
94% |
98% |
Change in Interest Rates | |||||||||||||||||||||||||
300 Basis |
200 Basis |
100 Basis |
100 Basis |
200 Basis |
300 Basis |
||||||||||||||||||||
Point |
Point |
Point |
Point |
Point |
Point |
||||||||||||||||||||
In millions |
Decrease |
Decrease |
Decrease |
Increase |
Increase |
Increase |
|||||||||||||||||||
Estimated change in fair value |
$ | 319 |
$ | 177 |
$ | 76 |
$ | (65 |
) | $ | (117 |
) | $ | (157 |
) |
Change in Credit Spreads |
||||||||||||
50 Basis |
50 Basis |
200 Basis |
||||||||||
Point |
Point |
Point |
||||||||||
In millions |
Decrease |
Increase |
Increase |
|||||||||
Estimated change in fair value |
$ | 26 |
$ | (24) |
$ | (73) |
Total Number |
Maximum |
||||||||||||||||
Total |
Average |
of Shares |
Amount That May |
||||||||||||||
Number |
Price |
Purchased as |
Be Purchased |
||||||||||||||
of Shares |
Paid Per |
Part of Publicly |
Under the Plan |
||||||||||||||
Month |
Purchased (1) |
Share |
Announced Plan |
(in millions) |
|||||||||||||
January |
2,573,334 |
$ | 9.17 |
2,543,621 |
$ | 77 |
|||||||||||
February |
1,114,025 |
8.87 |
1,112,100 |
68 |
|||||||||||||
March |
4,526,891 |
7.12 |
4,427,035 |
36 |
|||||||||||||
8,214,250 |
$ | 8.00 |
8,082,756 |
$ | 36 |
(1) | - 1,925 shares in February and 86 shares in March were repurchased in open market transactions as investments in the Company’s non-qualified deferred compensation plan and 29,713 shares in January and 99,770 shares in March were repurchased by the Company in open market transactions for settling awards under the Company’s long-term incentive plans. |
*31.1. |
||||
*31.2. |
||||
**32.1. |
||||
**32.2. |
||||
*101.INS. |
XBRL Instance Document – the instance document does not appear in the Interactive Data File because iXBRL tags are embedded within the Inline XBRL document. | |||
*101.SCH. |
XBRL Taxonomy Extension Schema Document. | |||
*101.CAL. |
XBRL Taxonomy Extension Calculation Linkbase Document. | |||
*101.DEF. |
XBRL Taxonomy Extension Definition Linkbase Document. | |||
*101.LAB. |
XBRL Taxonomy Extension Label Linkbase Document. | |||
*101.PRE. |
XBRL Taxonomy Extension Presentation Linkbase Document. | |||
*104. |
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
* |
Filed herewith. | |||
** |
Furnished herewith. |
MBIA Inc. Registrant | ||
Date: May 11, 2020 |
/s/ Anthony McKiernan | |
Anthony McKiernan | ||
Chief Financial Officer | ||
Date: May 11, 2020 |
/s/ Joseph R. Schachinger | |
Joseph R. Schachinger | ||
Controller (Chief Accounting Officer) |
Exhibit 31.1
CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, William C. Fallon, certify that:
1. | I have reviewed the Quarterly Report of MBIA Inc. (the Company) on Form 10-Q for the period ending March 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the Report); |
2. | Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this Report; |
4. | The Companys other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the Companys disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and |
(d) | disclosed in this Report any change in the Companys internal control over financial reporting that occurred during the Companys first quarter of 2020 that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial reporting; and |
5. | The Companys other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Companys auditors and to the audit committee of the board of directors: |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Companys ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the Companys internal control over financial reporting. |
/s/ William C. Fallon |
William C. Fallon |
Chief Executive Officer |
May 11, 2020 |
Exhibit 31.2
CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Anthony McKiernan, certify that:
1. | I have reviewed the Quarterly Report of MBIA Inc. (the Company) on Form 10-Q for the period ending March 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the Report); |
2. | Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this Report; |
4. | The Companys other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the Companys disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and |
(d) | disclosed in this Report any change in the Companys internal control over financial reporting that occurred during the Companys first quarter of 2020 that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial reporting; and |
5. | The Companys other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Companys auditors and to the audit committee of the board of directors: |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Companys ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the Companys internal control over financial reporting. |
/s/ Anthony McKiernan |
Anthony McKiernan |
Chief Financial Officer |
May 11, 2020 |
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of MBIA Inc. (the Company) on Form 10-Q for the period ending March 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, William C. Fallon, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ William C. Fallon |
William C. Fallon |
Chief Executive Officer |
May 11, 2020 |
Exhibit 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of MBIA Inc. (the Company) on Form 10-Q for the period ending March 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Anthony McKiernan, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Anthony McKiernan |
Anthony McKiernan |
Chief Financial Officer |
May 11, 2020 |
Investments (Portion Of Unrealized Gains And Losses On Equity Investments Held) (Detail) - Equity Securities [Member] - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Gains (losses) on equity investments [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
Realized investment gains (losses) | $ (13) | $ 5 |
Gains (losses) on equity investments sold during the period [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
Realized investment gains (losses) | 0 | 1 |
Gains (losses) on equity investments still held at the end of the period [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
Realized investment gains (losses) | $ (13) | $ 4 |
Consolidated Statements Of Operations (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|||
Change in fair value of insured derivatives: | ||||
Unrealized gains (losses) on insured derivatives | $ 0 | $ 14 | ||
Net investment losses related to other-than-temporary impairments: | ||||
Total revenues | (6) | 50 | ||
Expenses: | ||||
Total expenses | 327 | 69 | ||
Income (loss) before income taxes | (333) | (19) | ||
Provision (benefit) for income taxes | 0 | 2 | ||
Net income (loss) | $ (333) | $ (21) | ||
Net income (loss) per common share: | ||||
Basic | $ (4.62) | $ (0.24) | ||
Diluted | $ (4.62) | $ (0.24) | ||
Weighted average number of common shares outstanding: | ||||
Basic | [1] | 72,089,016 | 85,554,236 | |
Diluted | [1] | 72,089,016 | 85,554,236 | |
Non Variable Interest Entity [Member] | ||||
Premiums earned: | ||||
Scheduled premiums earned | $ 16 | $ 18 | ||
Refunding premiums earned | 4 | 5 | ||
Premiums earned (net of ceded premiums of $1 and $1) | 20 | 23 | ||
Net investment income | 23 | 32 | ||
Change in fair value of insured derivatives: | ||||
Unrealized gains (losses) on insured derivatives | 0 | 14 | ||
Net gains (losses) on financial instruments at fair value and foreign exchange | (63) | 22 | ||
Net investment losses related to other-than-temporary impairments: | ||||
Investment losses related to other-than-temporary impairments | 0 | 0 | ||
Other-than-temporary impairments recognized in accumulated other comprehensive income (loss) | 0 | (28) | ||
Net investment losses related to other-than-temporary impairments | 0 | (28) | ||
Other net realized gains (losses) | 0 | 1 | ||
Expenses: | ||||
Losses and loss adjustment | 243 | (38) | ||
Amortization of deferred acquisition costs | 2 | 4 | ||
Operating | 18 | 26 | ||
Interest | 47 | 52 | ||
Variable Interest Entity Primary Beneficiary [Member] | ||||
Premiums earned: | ||||
Net investment income | 8 | 10 | ||
Change in fair value of insured derivatives: | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 15 | 18 | ||
Net investment losses related to other-than-temporary impairments: | ||||
Other net realized gains (losses) | (9) | (42) | ||
Expenses: | ||||
Operating | 2 | 3 | ||
Interest | $ 15 | $ 22 | ||
|
Investments (Securities Held In Unrealized Loss Position And Insured By Financial Guarantor) (Detail) - Mortgage-backed [Member] - Mbia Corp And National [Member] - Financial Guarantee [Member] $ in Millions |
Mar. 31, 2020
USD ($)
|
[1] | ||||
---|---|---|---|---|---|---|
Schedule Of Investments [Line Items] | ||||||
Total Available-For-Sale, Fair Value | $ 9 | |||||
Gross unrealized losses | (6) | |||||
Loss and loss adjustment expense reserves | $ 22 | [2] | ||||
|
Commitments and Contingencies (Narrative) (Detail) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2020
USD ($)
issue
| |
Commitments And Contingencies [Line Items] | |
Other material lawsuits pending | issue | 0 |
Fuel Line Lenders [Member] | |
Commitments And Contingencies [Line Items] | |
PREPA working capital | $ | $ 700 |
Loss and Loss Adjustment Expense Reserves |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Loss and Loss Adjustment Expense Reserves | Note 5: Loss and Loss Adjustment Expense Reserves U.S. Public Finance Insurance U.S. public finance insured transactions consist of municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utilities, airports, health care institutions, higher educational facilities, student loan issuers, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. The Company estimates future losses by using probability-weighted cash flow scenarios that are customized to each insured transaction. Future loss estimates consider debt service due for each insured transaction, which includes par outstanding and interest due, as well as recoveries for such payments, if any. Gross par outstanding for capital appreciation bonds represents the par amount at the time of issuance of the insurance policy.Certain state and local governments and territory obligors that National insures are under financial and budgetary stress. In addition, the COVID-19 pandemic may present additional but unknown credit risks to National’s insured portfolio. Puerto Rico had been experiencing significant fiscal stress and constrained liquidity, and in response, the U.S. Congress passed PROMESA. In formulating loss reserves, the Company considers the following: environmental and political impacts; litigation; ongoing discussions with creditors; timing and amount of debt service payments and future recoveries; existing proposed restructuring plans or agreements; and deviations from these proposals in its probability-weighted scenarios. In September of 2019, National agreed to join the RSA with PREPA, other monoline insurers, a group of uninsured PREPA bondholders, Puerto Rico, and the Oversight Board. Refer to “Note 1: Business Developments and Risk and Uncertainties”, for further information on COVID-19 and the Company’s Puerto Rico exposures.Recoveries on Puerto Rico Losses For recoveries on paid Puerto Rico losses, the estimates include assumptions related to the following: economic conditions and trends; political developments; the Company’s ability to enforce contractual rights through litigation and otherwise; discussions with other creditors and the obligors, any existing proposals; and the remediation strategy for an insured obligation that has defaulted or is expected for default. International and Structured Finance Insurance The international and structured finance insurance segment’s case basis reserves and insurance loss recoveries recorded in accordance with GAAP do not include estimates for a policy insuring a credit derivative or on financial guarantee VIEs that are eliminated in consolidation. The policy insuring a credit derivative contract is accounted for as a derivative and is carried at fair value in the Company’s consolidated financial statements under GAAP. The fair value of the insured credit derivative contract is influenced by a variety of market and transaction-specific factors that may be unrelated to potential future claim payments under the Company’s insurance policy. Refer to “Note 8: Derivative Instruments” for a further discussion of the Company’s use of derivatives and their impact on the Company’s consolidated financial statements. In addition, the COVID-19 may present additional but unknown credit risks to MBIA Corp.’s insured portfolio. Refer to “Note 1: Business Developments and Risk and Uncertainties”, for further information on COVID-19. RMBS Case Basis Reserves (Financial Guarantees) The Company’s RMBS reserves and recoveries relate to financial guarantee insurance policies, excluding those on consolidated VIEs. The Company’s first-lien RMBS case basis reserves primarily relate to RMBS backed by alternative A-paper and subprime mortgage loans. The Company’s second-lien RMBS case basis reserves relate to RMBS backed by home equity lines of credit and closed-end second mortgages. The Company calculated RMBS case basis reserves as of March 31, 2020 for both first and second-lien RMBS transactions using a process called the Roll Rate Methodology (“Roll Rate Methodology”). The Roll Rate Methodology is a multi-step process using databases of loan level information, proprietary internal cash flow models, and commercially available models to estimate potential losses and recoveries on insured bonds. Roll Rate is defined as the probability that current loans become delinquent and subsequently default and loans in the delinquent pipeline are charged-off or liquidated. The loss reserve estimates are based on a probability-weighted average of three scenarios of loan losses. Additional data used for both second and first-liens include historic averages of deal specific voluntary prepayment rates, forward projections of the LIBOR interest rates, and historic averages of deal-specific loss severities. In addition, for second-lien RMBS backed by home equity lines of credit, the Company assumes a constant basis spread between Prime and LIBOR interest rates.In calculating ultimate cumulative losses for RMBS, the Company estimates the amount of second-lien loans that are expected to be charged-off (deemed uncollectible by servicers of the transactions) and, for first-lien RMBS, the Company estimates the amount of loans that are expected to be liquidated in the future through foreclosure or short sale. The time to liquidation for a defaulted loan is specific to the loan’s delinquency bucket.For all RMBS transactions, cash flow models consider allocations and other structural aspects and claims against MBIA Corp.’s insurance policy consistent with such policy’s terms and conditions. The estimated net claims from the procedure above are then discounted using a risk-free rate to a net present value reflecting MBIA’s general obligation to pay claims over time and not on an accelerated basis. The Company monitors RMBS portfolio performance on a monthly basis against projected performance, reviewing delinquencies, roll rates, and prepayment rates (including voluntary and involuntary). However, loan performance remains difficult to predict and losses may exceed expectations. In the event of a material deviation in actual performance from projected performance, the Company would increase or decrease the case basis reserves accordingly and re-evaluate its assumptions.RMBS Recoveries The Company primarily records two types of recoveries related to insured RMBS exposures: excess spread that is generated from the trust structures in the insured transactions; and second-lien “put-back” claims related to those mortgage loans whose inclusion in an insured securitization failed to comply with representations and warranties (“ineligible loans”).Excess Spread Excess spread within insured RMBS securitizations is the difference between interest inflows on mortgage loan collateral and interest outflows on the insured RMBS notes. The aggregate amount of excess spread depends on the future loss trends, which include future delinquency trends, average time to charge-off/liquidate delinquent loans, the future spread between Prime and the LIBOR interest rates, and borrower refinancing behavior (which may be affected by changes in the interest rate environment) that results in voluntary prepayments. Excess spread also includes subsequent recoveries on previously charged-off loans associated with insured second-lien RMBS securitizations.Second-lien Put-Back Claims Related to Ineligible Loans The Company has settled the majority of its put-back claims relating to the inclusion of ineligible loans in securitizations it insured. Only its claims against Credit Suisse remain outstanding. Credit Suisse has challenged the Company’s assessment of the ineligibility of individual mortgage loans and a trial concerning the dispute was held in July and August of 2019. While the Company’s settlement amounts on its prior put-back claims have been consistent with the put-back recoveries that had been included in the Company’s financial statements at the times preceding the settlements, there can be no assurance that the Company will prevail in its litigation against Credit Suisse. However, based on the Company’s assessment of the strength of its contractual put-back rights against Credit Suisse, as well as on its prior settlements with other sellers/servicers and success of other monolines’ put-back settlements, the Company believes it will prevail in enforcing its contractual rights and that it is entitled to collect the full amount of its incurred losses plus contractual interest due. The Company consolidates the RMBS securitization originated by Credit Suisse as a VIE and, therefore, eliminates its estimate of recoveries from its insurance accounting and reflects such recoveries in its accounting for the loan repurchase commitments asset of the VIE using a measurement process similar to that used for insurance accounting.The uncertainty remaining with respect to the ultimate outcome of the litigation with Credit Suisse is contemplated in the probability-weighted scenario based-modeling the Company uses. The Credit Suisse recovery scenarios are based on certain probabilities of ultimate resolution of the dispute with Credit Suisse and the fair values are determined using discounted cash flow models. The Company continues to consider relevant facts and circumstances in developing its assumptions on expected cash inflows, probability of potential recoveries (including the timing and outcome of the litigation) and recovery period. While the Company believes it will be successful in realizing its recoveries from its put-back contract claims against Credit Suisse, the ultimate amount recovered may be materially different from that recorded by the Company given the inherent uncertainty of the manner of resolving the claims (i.e., litigation and/or negotiated out-of-court settlement) and the assumptions used in the required estimation process for accounting purposes which are based, in part, on judgments and other information that are not easily corroborated by historical data or other relevant benchmarks. Refer to “Note 13: Commitments and Contingencies” for further information about the Company’s litigation with Credit Suisse.CDO Reserves and Recoveries The Company also has loss and loss adjustment expense (“LAE”) reserves on certain transactions within its CDO portfolio, primarily its multi-sector CDO asset class that was insured in the form of financial guarantee policies. MBIA’s insured multi-sector CDOs are transactions that include a variety of collateral ranging from corporate bonds to structured finance assets (which includes, but are not limited to, RMBS-related collateral, multi-sector and corporate CDOs). The Company’s process for estimating reserves and credit impairments on these policies is determined as the present value of the probability-weighted potential future losses, net of estimated recoveries, across multiple scenarios. The Company considers several factors when developing the range of potential outcomes and their impact on MBIA. A range of loss scenarios is considered under different default and severity rates for each transaction’s collateral. Additionally, each transaction is evaluated for its commutation potential. Zohar Recoveries MBIA Corp. is seeking to recover the payments it made (plus interest and expenses) with respect to Zohar I and Zohar II. In March of 2018, the then-director of Zohar I and Zohar II placed those funds into voluntary bankruptcy proceedings in federal bankruptcy court in the District of Delaware (the “Zohar Funds Bankruptcy Cases”). In May of 2018, MBIA and certain parties to the Zohar Funds Bankruptcy Cases agreed to a stay of litigation and a process, among other things (the “Zohar Bankruptcy Settlement”) by which the debtor funds, through an independent director and a chief restructuring officer, would work with the original sponsor of the funds to monetize the Zohar Assets and repay creditors, including MBIA Corp. While the stay of litigation provided for in the Zohar Bankruptcy Settlement has expired, the court ruled on September 27, 2019 that the monetization process will continue, which ruling has been appealed though not stayed. While MBIA Corp. anticipates that the primary source of the recoveries will come from the monetization of the Zohar Assets, significant uncertainty remains with respect to realizable value. For example, on October 17, 2019, one of the portfolio companies, Dura Automotive Systems, LLC, and certain of its affiliates, filed for bankruptcy protection in federal bankruptcy court in the Middle District of Tennessee (the “Dura Bankruptcy Cases”). Effective November 8, 2019, the Dura Bankruptcy Cases were transferred to the District of Delaware. The Zohar debtors have substantial debt and equity interests in the Dura debtors, and any recovery on those interests is not expected to be material. In late March of 2020, the original sponsor of the Zohar Funds resigned from her role as director and manager of all the portfolio companies, except for Dura, which companies have debt and equity that comprise, in part, the Zohar Assets. New directors and managers are presently being put in place at these portfolio companies, although the Zohar Sponsor may continue to serve in some capacity at select portfolio companies until a replacement is put in place, and the monetization process remains in progress. There can be no assurance, however, that the recent coronavirus outbreak will not cause the monetization of the Zohar Assets to be delayed or impacted. Salvage and subrogation recoveries related to Zohar I and Zohar II are reported within “Insurance loss recoverable” on the Company’s consolidated balance sheet. The Company’s estimate of the insurance loss recoverable for Zohar I and Zohar II includes probability-weighted scenarios of the ultimate monetized recovery from the Zohar Assets. Notwithstanding the procedures agreed to in the Zohar Bankruptcy Settlement and confirmed by the court, there can be no assurance that the monetization of the Zohar Assets will yield amounts sufficient to permit MBIA Corp. to recover a substantial portion of the payments it made on Zohar I and Zohar II. Failure to recover such payments could impede MBIA Corp.’s ability to make payments when due on other policies. MBIA Corp. believes that if the NYSDFS concludes at any time that MBIA Insurance Corporation will not be able to pay its policyholder claims, the NYSDFS would likely put MBIA Insurance Corporation into a rehabilitation or liquidation proceeding under Article 74 of the NYIL and/or take such other actions as the NYSDFS may deem necessary to protect the interests of MBIA Insurance Corporation’s policyholders. The determination to commence such a proceeding or take other such actions is within the exclusive control of the NYSDFS. Summary of Loss and LAE Reserves and Recoveries The Company’s loss and LAE reserves and recoveries before consolidated VIE eliminations, along with amounts that were eliminated as a result of consolidating VIEs for the international and structured finance insurance segment, which are included in the Company’s consolidated balance sheets as of March 31, 2020 and December 31, 2019 are presented in the following table:
Changes in Loss and LAE Reserves The following table presents changes in the Company’s loss and LAE reserves for the three months ended March 31, 2020. Changes in loss reserves attributable to the accretion of the claim liability discount, changes in discount rates, changes in amount and timing of estimated claim payments and estimated recoveries on such claims, changes in assumptions and changes in LAE reserves are recorded in “Losses and loss adjustment” expenses in the Company’s consolidated statements of operations. As of March 31, 2020, the weighted average risk-free rate used to discount the Company’s loss reserves (claim liability) was 0.73%. LAE reserves are generally expected to be settled within a
one-year period and are not discounted. As of March 31, 2020 and December 31, 2019 the Company’s gross loss and LAE reserves included $35 million and $34 million, respectively, related to LAE.
The increase in the Company’s loss reserves for the three months ended March 31, 2020, primarily related to increases in insured first-lien RMBS transactions due to the decline in risk-free rates during the quarter used to present value loss reserves and an increase in expected payments on certain Puerto Rico exposures. This was partially offset by a decrease in reserves due a decline in risk-free rates used to present value loss reserves and actual payments made on certain Puerto Rico exposures. Changes in Insurance Loss Recoverable Insurance loss recoverable represents the Company’s estimate of recoveries on paid claims and LAE. The Company recognizes potential recoveries on paid claims based on the probability-weighted net cash inflows present valued at applicable risk-free rates as of the measurement date. The following table presents changes in the Company’s insurance loss recoverable for the three months ended March 31, 2020. Changes in insurance loss recoverable attributable to the accretion of the discount on the recoverable, changes in discount rates, changes in amount and timing of estimated collections, changes in assumptions and changes in LAE recoveries are recorded in “Losses and loss adjustment” expenses in the Company’s consolidated statements of operations.
The decrease in the Company’s insurance loss recoverable reflected in the preceding table was primarily due to a decline in expected recoveries on CDOs partially offset by increases in insurance loss recoverables on certain Puerto Rico exposures and RMBS transactions due to a decline in risk-free rates during the three months ended March 31, 2020. Loss and LAE Activity For the three months ended March 31, 2020, loss and LAE incurred primarily related to a decrease in expected salvage collections related to CDOs as well as declines in the risk-free rates during the quarter which increased the present value of the loss reserves, primarily related to first-lien RMBS transactions. For the three months ended March 31, 2019, the benefit to losses and LAE primarily related to an increase in expected recoveries on Puerto Rico exposures partially offset by incurred losses related to first-lien RMBS transactions. Costs associated with remediating insured obligations assigned to the Company’s surveillance categories are recorded as LAE and are included in “Losses and loss adjustment” expenses on the Company’s consolidated statements of operations. For the three months ended March 31, 2020 and 2019, gross LAE related to remediating insured obligations were $9 million and $1 million, respectively. Surveillance Categories The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of March 31, 2020:
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, 2019:
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Income Taxes | Note 9: Income Taxes The Company’s income taxes and the related effective tax rates for the three months ended March 31, 2020 and 2019 are as follows:
For the three months ended March 31, 2020 and 2019, the Company’ effective tax rate applied to its loss before income taxes was lower than the U.S. statutory tax rate due to the full valuation allowance on the changes in its net deferred tax asset. Deferred Tax Asset, Net of Valuation Allowance The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of its existing deferred tax assets. A significant piece of objective negative evidence evaluated was the Company having a three-year cumulative loss. Such objective evidence limits the ability to consider other subjective evidence, such as the Company’s projections of pre-tax income. On the basis of this evaluation, the Company has recorded a full valuation allowance against its net deferred tax asset of $923 million and $873 million as of March 31, 2020 and December 31, 2019, respectively. The Company will continue to analyze the valuation allowance on a quarterly basis.Net operating losses (“NOLs”) of property and casualty insurance companies are permitted to be carried back two years and carried forward 20 years, except where modified by the CARES Act as outlined below. NOLs of property and casualty insurance companies are not subject to the 80 percent taxable income limitation and indefinite lived carryforward period required by the Tax Cuts and Jobs Act applicable to general corporate NOLs. Accounting for Uncertainty in Income Taxes The Company’s policy is to record and disclose any change in unrecognized tax benefit (“UTB”) and related interest and/or penalties to income tax in the consolidated statements of operations. The Company includes interest as a component of income tax expense. As of March 31, 2020 and December 31, 2019, the Company had no UTB. Federal income tax returns through 2011 have been examined or surveyed. As of March 31, 2020, the Company’s NOL is approximately $3.1 billion. NOLs generated prior to tax reform and property and casualty NOLs generated after tax reform will expire between tax years 2032 through 2040. As of March 31, 2020, the Company has a foreign tax credit carryforward of $61 million, which will expire between tax years 2020 through 2030. As of March 31, 2020, the Company has an alternative minimum tax (“AMT”) credit of $12.7 million. As a result of the CARES Act, the remaining AMT credit will be refunded during calendar year 2020. The AMT credit refundable to the Company is included in “Other assets” of the Company’s consolidated balance sheet. Section 382 of the Internal Revenue Code On May 2, 2018, MBIA Inc.’s shareholders ratified an amendment to the Company’s By-Laws, which had been adopted earlier by MBIA Inc.’s Board of Directors. The amendment places restrictions on certain acquisitions of Company stock that otherwise may have increased the likelihood of an ownership change within the meaning of Section 382 of the Internal Revenue Code. With certain exceptions, the amendment generally prohibits a person from becoming a “Section 382 five-percent shareholder” by acquiring, directly or by attribution, 5% or more of the outstanding shares of the Company’s common stock.Coronavirus Aid, Relief, and Economic Security Act On March 27, 2020, as part of the business stimulus package in response to
COVID-19 pandemic, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act established new tax provisions including, but not limited to: (1) five-year carryback of NOLs generated in 2018, 2019 and 2020; (2) accelerated refund of AMT credit carryforwards; and (3) retroactive changes to allow accelerated depreciation for certain depreciable property. The legislation does not have a material impact on the Company’s tax positions due to the lack of taxable income in the carryback periods. The Company expects to receive a cash benefit for its remaining AMT credits in 2020 as provided by the CARES Act. |
Recent Accounting Pronouncements (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Millions |
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Income Tax Expense (Benefit) | $ 0 | $ 2 | |
Net Income (Loss) Attributable to Parent | $ (333) | (21) | |
Previously Reported [Member] | |||
Income Tax Expense (Benefit) | (2) | ||
Net Income (Loss) Attributable to Parent | $ (17) | ||
Earnings Per Share, Basic and Diluted | $ (0.20) | ||
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Cumulative-effect adjustment, net of tax | $ 42 | ||
ASU 2019-12 [Member] | |||
Income Tax Expense (Benefit) | $ 2 | ||
Net Income (Loss) Attributable to Parent | $ (21) | ||
Earnings Per Share, Basic and Diluted | $ (0.24) |
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Schedule Of Basic And Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per share for the three months ended March 31, 2020 and 2019:
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Loss And Loss Adjustment Expense Reserves (Schedule Of Losses And Loss Adjustment Expenses Reserves and Recoveries) (Detail) - USD ($) $ in Millions |
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Loss and loss adjustment expense reserves | [1],[2] | $ 966 | $ 901 | |||||
Insurance Loss Recoverable [Member] | ||||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||||
Insurance Loss Recoverable | 1,607 | 1,694 | ||||||
Variable Interest Entity Primary Beneficiary [Member] | ||||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||||
Loan repurchase commitments | 506 | 486 | ||||||
Non Variable Interest Entity [Member] | ||||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||||
Insurance Loss Recoverable | 1,607 | 1,694 | ||||||
Loss and loss adjustment expense reserves | 966 | 901 | ||||||
U S Public Finance Insurance [Member] | ||||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||||
Insurance Loss Recoverable | 954 | 911 | ||||||
Loss and loss adjustment expense reserves | [2] | 451 | 432 | |||||
International And Structured Finance Insurance [Member] | ||||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||||
Insurance Loss Recoverable | [3] | 1,181 | 1,286 | |||||
Loss and loss adjustment expense reserves | [2],[3] | 799 | 749 | |||||
International And Structured Finance Insurance [Member] | Variable Interest Entity Primary Beneficiary [Member] | Loan Repurchase Commitments [Member] | ||||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||||
Loan repurchase commitments | 506 | 486 | ||||||
International And Structured Finance Insurance [Member] | Non Variable Interest Entity [Member] | ||||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||||
Insurance Loss Recoverable | 653 | 783 | ||||||
Loss and loss adjustment expense reserves | [2] | 515 | 469 | |||||
Consolidation Elimination [Member] | International And Structured Finance Insurance [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||||
Insurance Loss Recoverable | [3] | (528) | (503) | |||||
Loss and loss adjustment expense reserves | [2],[3] | $ (284) | $ (280) | |||||
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Business Segments (Tables) |
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Text Block [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of company's segment results | The following tables provide the Company’s segment results for the three months ended March 31, 2020 and 2019:
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Commitments and Contingencies |
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Commitments and Contingencies | Note 13: Commitments and Contingencies The following commitments and contingencies provide an update of those discussed in “Note 19: Commitments and Contingencies” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, and should be read in conjunction with the complete descriptions provided in the aforementioned Form 10-K. Litigation MBIA Insurance Corp. v. Credit Suisse Securities (USA) LLC, et al. On September 13, 2018, the Appellate Division of the Supreme Court, First Judicial Department issued a ruling on the parties’ cross-appeals from the court’s March 31, 2017 decision and order on the parties’ summary judgment motions. The ruling affirmed the trial court’s decision, except reversed as to the trial court’s determination to interpret as a matter of law, prior to trial, certain of the representations and warranties that form the predicate for certain of MBIA Corp.’s breach of contract claims. Trial of the case concluded on August 2, 2019. Post-trial briefs have been submitted, and the case is under submission. Tilton v. MBIA Inc., et al.; 7:19-cv-09733-WHP (S.D.N.Y.)On November 2, 2015, Lynn Tilton and Patriarch Partners XV, LLC filed a complaint in New York State Supreme Court, Westchester County, against MBIA Inc. and MBIA Corp., alleging fraudulent inducement and related claims arising from purported promises made in connection with insurance policies issued by MBIA Corp. on certain collateralized loan obligations managed by Ms. Tilton and affiliated Patriarch entities, and seeking damages. Plaintiffs filed an amended complaint on January 15, 2016. On October 21, 2019, the Company removed the case to the United States District Court for the Southern District. Tilton et al. v. MBIA Inc., et al., Adversary Case No. 19-50390 (KBO) (Bankr. Del.) On October 1, 2019, Lynn Tilton and certain affiliated entities commenced an adversary proceeding in the Zohar Funds Bankruptcy Cases against MBIA Inc., MBIA Corp. and other Zohar Fund creditors seeking the equitable subordination of those creditors’ claims with respect to the Zohar Funds. Plaintiffs claim they are entitled to relief due to inequitable and unfair conduct by defendants. Motion of Assured Guaranty Corp., Assured Guaranty Municipal Corp., and National Public Finance Guarantee Corporation for Adequate Protection or, in the Alternative, for Relief from the Automatic Stay 3567-LTS (D.P.R. August 23, 2019) (Swain, J.)On January 16, 2020, National, Ambac and Assured (“Movants”) filed a renewed motion in the PRHTA Title III case for relief from the automatic stay or, in the alternative, adequate protection. The motion seeks leave to file a complaint in Puerto Rico, and argues that the revenues securing the bonds insured by Movants are being improperly diverted away from PRHTA, despite such revenues being the exclusive property of PRHTA and its bondholders. Movants argue that the bonds are secured by two categories of collateral: (i) Toll Revenues, and (ii) Excise Taxes collected on behalf of HTA and bondholders by the Commonwealth, which are subject to both perfected security interests. Movants explain that, although PROMESA expressly preserves liens, the Commonwealth improperly diverted HTA’s pledged revenues and commingled HTA’s funds with those of the Commonwealth. In addition, the Commonwealth has asserted an outright ownership interest in the Excise Taxes, which Movants argue the Commonwealth is required to hold in trust for HTA and its bondholders. Movants assert that these actions have caused a permanent loss of collateral and threaten Movants’ interest in its remaining collateral. The preliminary lift stay hearing date is currently scheduled for June 4, 2020. The Financial Oversight and Management Board for Puerto Rico, as representative of The Puerto Rico Electric Power Authority, et al. 4780-LTS (D.P.R. July 19, 2017) (Swain, J.)On July 18, 2017, National, together with other PREPA bondholders, asked the court overseeing PREPA’s Title III bankruptcy proceeding to lift the automatic bankruptcy stay, and permit bondholders to seek appointment of a receiver to oversee PREPA. On September 14, 2017, the court held that PROMESA barred relief from the stay. The bondholders appealed the decision to the First Circuit. On August 8, 2018, the First Circuit issued an order reversing Judge Swain’s decision on jurisdictional grounds and remanding the motion. On October 3, 2018, National, together with other monolines filed an updated motion for relief from the automatic stay to allow Movants to exercise their statutory right to have a receiver appointed at PREPA. The Oversight Board filed a motion to dismiss the receiver motion. The motions have been stayed until five business days following the ruling on the PREPA 9019 Settlement Motion. The PREPA 9019 Settlement Motion has been adjourned until further order of the Court. Definitive Restructuring Support Agreement for PREPA On May 3, 2019, PREPA, the Oversight Board, the Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”), the Ad Hoc Group of PREPA bondholders (the “Ad Hoc Group”), and Assured Guaranty Corp. and Assured Guaranty Municipal Corp. (“Assured”) (together, the “RSA Parties”) entered into the RSA. On September 9, 2019 National, Syncora Guarantee Inc. (“Syncora”), and the RSA Parties agreed on an amendment to the RSA pursuant to which National and Syncora joined the RSA. The RSA includes the agreement for resolving PREPA’s restructuring plan issues and arrangements. Pursuant to the RSA, the Oversight Board filed a Rule 9019 motion with the Title III court in May of 2019 seeking approval of the RSA (the “Settlement Motion”). The RSA requires, upon entry of the order approving the Settlement Motion (the “9019 Order”), that Movants will withdraw the Receiver Motion, and the Ad Hoc Group will support such withdrawal. As contemplated by the RSA, on July 1, 2019, the Oversight Board and AAFAF also filed an adversary complaint against the Trustee for the PREPA Bonds, challenging the validity of the liens arising under the Trust Agreement that secure insured obligations of National. The adversary proceeding is stayed until the earlier of (a) 60 days after the Court denies the Settlement Motion, (b) consummation of a Plan, (c) 60 days after the filing by the Oversight Board and AAFAF of a Litigation Notice, or (d) further order of the Court. The hearing for the Settlement Motion has been adjourned until further order of the Court. Cortland Capital Market Services LLC, et al. v. The Financial Oversight and Management Board for Puerto Rico et, al., 19-00396 (D.P.R. July 9, 2019) (Swain, J.)On July 9, 2019, the “Fuel Line Lenders,” parties who extended approximately $700 million to PREPA beginning in 2012 to fund fuel purchases, filed an adversary complaint against the Oversight Board, PREPA, AAFAF, and the Trustee for the PREPA Bonds, alleging that they are entitled to be paid in full before National and other bondholders have any lien on or recourse to PREPA’s assets, including pursuant to the RSA. On September 30, 2019, the Fuel Line Lenders filed an amended complaint which added National, Assured, Syncora, and the Ad Hoc Group as defendants. Defendants moved to dismiss the Fuel Line Lenders’ adversary complaint on November 11, 2019. The Fuel Line Lenders filed their opposition to the motion to dismiss on December 5, 2019. Defendants’ reply in support of the motion to dismiss was filed February 3, 2020. The hearing on the motion to dismiss was adjourned until the Court determines when the 9019 Settlement Motion and related litigation will recommence. The Financial Oversight and Management Board for Puerto Rico, as Representative of the Commonwealth of Puerto Rico, et al. v. the Puerto Rico Public Buildings Authority 18-00149 (D.P.R. December 21, 2018) (Swain, J.)On December 21, 2018, the Oversight Board and the Official Committee of Unsecured Creditors of all Debtors other than COFINA filed an adversary complaint against the Puerto Rico Public Buildings Authority (“PBA”), seeking a declaration that leases purportedly entered into by PBA are in fact disguised financing transactions and that PBA therefore has no right under PROMESA or the Bankruptcy Code to receive post-petition payments from the Title III debtors or administrative claims against the debtors. On January 28, 2019, National filed a motion to intervene in the proceeding. On March 12, 2019, the Court granted National’s intervention motion. On March 19, 2019, National filed an answer to the complaint. On September 27, 2019, the Oversight Board filed a voluntary petition for relief for PBA pursuant to PROMESA, commencing a case under Title III. The complaint has been stayed indefinitely by order of the Court. The Financial Oversight and Management Board for Puerto Rico, as Representative of the Commonwealth of Puerto Rico, et al. v. National Public Finance Guarantee Corporation, et al 19-00291 (D.P.R. May 2, 2019) (Swain, J.)On May 2, 2019, the Oversight Board and the Official Committee of Unsecured Creditors of all Title III Debtors (other than COFINA) (the “Committee”) filed lien avoidance adversary complaints against several hundred defendants, including National, challenging the existence, extent, and enforceability of GO bondholders’ liens. After an approximately five-month stay of litigation entered by the Court on July 24, 2019, these adversary proceedings resumed pursuant to an interim schedule entered by the Court in December 2019. On February 5, 2020, National and Assured Guaranty Municipal Corp. filed a motion to dismiss the adversary proceeding. The motion has been stayed indefinitely by order of the Court. National Public Finance Guarantee Corporation et al. v. UBS Financial Services, Inc. et al., 19-422-LTS (D.P.R.), removed from No. SJ2019CV07932 (Superior Court San Juan)On August 8, 2019, National and MBIA Corp. filed suit in the Court of First Instance in San Juan, Puerto Rico against UBS Financial Services, Inc., UBS Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Merrill Lynch, Fenner & Smith Inc., RBC Capital Markets LLC, and Santander Securities LLC, bringing two claims under Puerto Rico law: doctrina de actos propios (the doctrine of one’s own acts) and unilateral declaration of will. These claims concern the insurance by National of bonds issued by the Commonwealth of Puerto Rico and its instrumentalities that were underwritten by these defendants. National alleges that, when the defendants solicited bond insurance, they represented through their acts that they would investigate certain information they provided to National and that they had a reasonable basis to believe that information was true and complete. National further alleges that the defendants did not perform such investigations and that key information was untrue or incomplete. National seeks damages to be proven at trial. On September 9, 2019, Defendants removed National’s claims to federal court in the District of Puerto Rico. National filed its motion to remand the case on October 9, 2019. The court has not requested a hearing, and the motion is pending. Complaint Objecting to Defendants’ Claims and Seeking Related Relief, 17-03283-LTS (D.P.R. January 16, 2020) (Swain J.)On January 16, 2020, the Oversight Board filed an adversary complaint against National, Ambac, Assured Guaranty, Assured Guaranty Municipal Corp., Financial Guaranty Insurance Company, Peaje Investments LLC and the Bank of New York Mellon as fiscal agent. The Oversight Board challenges the claims and validity of the liens asserted against the Commonwealth by holders of HTA bonds. The complaint contains 201 counts against the bondholder parties objecting to proofs of claim and security interests asserted regarding the Commonwealth’s retention of certain revenues previously assigned to HTA. This matter is currently stayed but the Court permitted the Oversight Board to file certain limited cross motions on April 28, 2020. Complaint Objecting to Defendants’ Claims and Seeking Related Relief, 20-00007-LTS (January 16, 2020) (Swain J.)On January 16, 2020, the Oversight Board and the Creditors Committee filed an adversary complaint against National and other defendants challenging the claims and validity of the liens asserted against HTA by holders and insurers of HTA bonds. The complaint contains 302 counts challenging the claims and liens asserted against HTA. This matter has been stayed indefinitely by order of the Court. For those aforementioned actions in which it is a defendant, the Company is defending against those actions and expects ultimately to prevail on the merits. There is no assurance, however, that the Company will prevail in these actions. Adverse rulings in these actions could have a material adverse effect on the Company’s ability to implement its strategy and on its business, results of operations, cash flows and financial condition. At this stage of the litigation, there has not been a determination as to the amount, if any, of damages. Accordingly, the Company is not able to estimate any amount of loss or range of loss. The Company similarly can provide no assurance that it will be successful in those actions in which it is a plaintiff. There are no other material lawsuits pending or, to the knowledge of the Company, threatened, to which the Company or any of its subsidiaries is a party. Lease Commitments The Company has a lease agreement for its headquarters in Purchase, New York as well as other immaterial leases for offices in New York, New York and San Francisco, California, as well as office equipment. The Purchase, New York initial lease term expires in 2030 with the option to terminate the lease in 2025 upon the payment of a termination amount. This lease agreement included an incentive amount to fund certain leasehold improvements, renewal options, escalation clauses and a free rent period. This lease agreement has been classified as an operating lease, and operating rent expense is recognized on a straight-line basis. The following table provides information about the Company’s leases as of March 31, 2020:
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Fair Value of Financial Instruments (Tables) |
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Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following tables provide quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019:
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Company's Assets And Liabilities Measured At Fair Value On Recurring Basis | The following tables present the fair value of the Company’s assets (including short-term investments) and liabilities measured and reported at fair value on a recurring basis as of March 31, 2020 and December 31, 2019:
Level 3 assets at fair value as of March 31, 2020 and December 31, 2019 represented approximately 16% and 15%, respectively, of total assets measured at fair value. Level 3 liabilities at fair value as of March 31, 2020 and December 31, 2019 represented approximately 67% and 72%, respectively, of total liabilities measured at fair value. |
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Fair Value Hierarchy Table Presents The Company's Assets And Liabilities Not Recorded At Fair Value On The Company's Consolidated Balance Sheet |
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Changes In Level 3 Assets Measured At Fair Value On A Recurring Basis | Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended March 31, 2020
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended March 31, 2019
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Changes In Level 3 Liabilities Measured At Fair Value On A Recurring Basis |
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Gains And Losses (Realized And Unrealized) Included In Earnings Pertaining To Level 3 Assets And Liabilities |
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Changes In Fair Value Included In The Company's Consolidated Statements Of Operations |
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Difference Between Aggregate Fair Value And The Aggregate Remaining Contractual Principal Balance Outstanding |
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Fair Value Of Financial Instruments (Company's Assets And Liabilities Measured At Fair Value On Recurring Basis) (Detail) - Fair Value Measurements Recurring [Member] - USD ($) $ in Millions |
Mar. 31, 2020 |
Dec. 31, 2019 |
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Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | $ 4,083 | $ 4,277 | ||
Fair value financial liabilities measured on recurring basis | 635 | 690 | ||
Counterparty and cash collateral netting | (31) | |||
Money Market Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 35 | 154 | ||
Medium-term Notes [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 98 | 108 | ||
Perpetual Debt And Equity Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 48 | 55 | ||
Cash and Cash Equivalents [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 212 | 75 | ||
Fixed Income Funds [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | [1] | 45 | 51 | |
Fixed Maturities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 3,025 | 3,202 | ||
Fixed Maturities [Member] | U S Treasury And Government [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 868 | 888 | ||
Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 192 | 200 | ||
Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 11 | 10 | ||
Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1,234 | 1,266 | ||
Fixed Maturities [Member] | Residential Mortgage Backed Agency [Member] | Mortgage-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 283 | 330 | ||
Fixed Maturities [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 22 | 19 | ||
Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 21 | 22 | ||
Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 114 | 140 | ||
Fixed Maturities [Member] | Other Asset Backed [Member] | Asset-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 280 | 327 | ||
Derivative Assets [Member] | Interest Rate Derivatives [Member] | Non-Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1 | 1 | ||
Assets Of Consolidated V I Es [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Loan Repurchase Commitments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 506 | 486 | ||
Assets Of Consolidated V I Es [Member] | Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 8 | 8 | ||
Assets Of Consolidated V I Es [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 38 | 45 | ||
Assets Of Consolidated V I Es [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 15 | 16 | ||
Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 7 | 6 | ||
Assets Of Consolidated V I Es [Member] | Other Asset Backed [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 7 | 8 | ||
Assets Of Consolidated V I Es [Member] | Loans Receivable and other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 98 | 136 | ||
Assets Of Consolidated V I Es [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 18 | 8 | ||
Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 5 | 8 | ||
Assets Of Consolidated V I Es [Member] | Other [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 15 | 18 | ||
Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 10 | 9 | ||
Derivative Liabilities [Member] | Interest Rate Derivatives [Member] | Non-Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 159 | 132 | ||
Counterparty and cash collateral netting | (31) | |||
Derivative Liabilities [Member] | Other Derivatives [Member] | Non-Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 37 | 34 | ||
Other Liabilities [Member] | Other Payable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 4 | |||
Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 331 | 403 | ||
Fair Value Inputs Level 1 [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1,042 | 1,058 | ||
Fair value financial liabilities measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Money Market Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 35 | 154 | ||
Fair Value Inputs Level 1 [Member] | Medium-term Notes [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Perpetual Debt And Equity Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 27 | 30 | ||
Fair Value Inputs Level 1 [Member] | Cash and Cash Equivalents [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 212 | 75 | ||
Fair Value Inputs Level 1 [Member] | Fixed Income Funds [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 763 | 791 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | U S Treasury And Government [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 763 | 791 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Agency [Member] | Mortgage-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Other Asset Backed [Member] | Asset-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Derivative Assets [Member] | Interest Rate Derivatives [Member] | Non-Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Loan Repurchase Commitments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Other Asset Backed [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Loans Receivable and other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 5 | 8 | ||
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Other [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Derivative Liabilities [Member] | Interest Rate Derivatives [Member] | Non-Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Derivative Liabilities [Member] | Other Derivatives [Member] | Non-Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 1 [Member] | Other Liabilities [Member] | Other Payable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 0 | |||
Fair Value Inputs Level 1 [Member] | Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 2 [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 2,358 | 2,519 | ||
Fair value financial liabilities measured on recurring basis | 242 | 190 | ||
Fair Value Inputs Level 2 [Member] | Money Market Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 2 [Member] | Medium-term Notes [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 2 [Member] | Perpetual Debt And Equity Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 21 | 25 | ||
Fair Value Inputs Level 2 [Member] | Cash and Cash Equivalents [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 2 [Member] | Fixed Income Funds [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 2,261 | 2,410 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | U S Treasury And Government [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 105 | 97 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 192 | 200 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 11 | 10 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1,234 | 1,266 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Agency [Member] | Mortgage-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 283 | 330 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 22 | 19 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 21 | 22 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 114 | 140 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Other Asset Backed [Member] | Asset-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 279 | 326 | ||
Fair Value Inputs Level 2 [Member] | Derivative Assets [Member] | Interest Rate Derivatives [Member] | Non-Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1 | 1 | ||
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Loan Repurchase Commitments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 8 | 8 | ||
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 38 | 45 | ||
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 15 | 16 | ||
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 7 | 6 | ||
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Other Asset Backed [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 7 | 8 | ||
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Loans Receivable and other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Other [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 2 [Member] | Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 2 | 2 | ||
Fair Value Inputs Level 2 [Member] | Derivative Liabilities [Member] | Interest Rate Derivatives [Member] | Non-Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 190 | 132 | ||
Fair Value Inputs Level 2 [Member] | Derivative Liabilities [Member] | Other Derivatives [Member] | Non-Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 2 [Member] | Other Liabilities [Member] | Other Payable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 0 | |||
Fair Value Inputs Level 2 [Member] | Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 50 | 56 | ||
Fair Value Inputs Level 3 [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 638 | 649 | ||
Fair value financial liabilities measured on recurring basis | 424 | 500 | ||
Fair Value Inputs Level 3 [Member] | Money Market Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Medium-term Notes [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 98 | 108 | ||
Fair Value Inputs Level 3 [Member] | Perpetual Debt And Equity Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Cash and Cash Equivalents [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Fixed Income Funds [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1 | 1 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | U S Treasury And Government [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Agency [Member] | Mortgage-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Other Asset Backed [Member] | Asset-backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1 | 1 | ||
Fair Value Inputs Level 3 [Member] | Derivative Assets [Member] | Interest Rate Derivatives [Member] | Non-Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Loan Repurchase Commitments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 506 | 486 | ||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Other Asset Backed [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Loans Receivable and other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 98 | 136 | ||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 18 | 8 | ||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Other [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 15 | 18 | ||
Fair Value Inputs Level 3 [Member] | Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 8 | 7 | ||
Fair Value Inputs Level 3 [Member] | Derivative Liabilities [Member] | Interest Rate Derivatives [Member] | Non-Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 0 | 0 | ||
Fair Value Inputs Level 3 [Member] | Derivative Liabilities [Member] | Other Derivatives [Member] | Non-Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 37 | 34 | ||
Fair Value Inputs Level 3 [Member] | Other Liabilities [Member] | Other Payable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 4 | |||
Fair Value Inputs Level 3 [Member] | Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | $ 281 | $ 347 | ||
|
Loss And Loss Adjustment Expense Reserves (Schedule Of Insurance Loss Recoverable) (Detail) - Insurance Loss Recoverable [Member] $ in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2020
USD ($)
| ||||||
Roll forward of Insurance Loss Recoverable [Line Items] | ||||||
Gross Reserve beginning balance, Insurance loss recoverable | $ 1,694 | |||||
Collections for Cases | (8) | |||||
Accretion of Recoveries | 7 | |||||
Changes in Discount Rates | 157 | |||||
Changes in Assumptions | (241) | [1] | ||||
Other | (2) | [2] | ||||
Gross Reserve ending balance, Insurance loss recoverable | $ 1,607 | |||||
|
Fair Value Of Financial Instruments (Gains And Losses On Fair Value Option Included In The Company's Consolidated Statements Of Operations) (Detail) - USD ($) $ in Millions |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|||||||
Non Variable Interest Entity [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | $ (63) | $ 22 | ||||||
Variable Interest Entity [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 15 | 18 | ||||||
Investments Carried At Fair Value [Member] | Non Variable Interest Entity [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [1] | (20) | 6 | |||||
Fixed Maturity Securities Held At Fair Value - VIE [Member] | Variable Interest Entity [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [2] | (6) | 26 | |||||
Loans Receivable and Other Instruments at Fair Value [Member] | Variable Interest Entity [Member] | Residential Mortgage Loans [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [2] | (35) | 34 | |||||
Loan Repurchase Commitments [Member] | Variable Interest Entity [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [2] | 20 | 2 | |||||
Other Assets [Member] | Variable Interest Entity [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [2] | (3) | 0 | |||||
Medium Term Notes [Member] | Non Variable Interest Entity [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [1] | (2) | (7) | |||||
Other Liabilities [Member] | Non Variable Interest Entity [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [3] | 0 | (1) | |||||
Variable Interest Entity Notes [Member] | Variable Interest Entity [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [2] | $ 27 | $ 84 | |||||
|
Derivative Instruments (Effect Of Derivative Instruments On Consolidated Statements Of Operations) (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Derivative [Line Items] | ||
Net gain/(loss) recognized in income | $ (50) | $ (9) |
Unrealized Gains Losses On Insured Derivatives [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Net gain/(loss) recognized in income | (1) | 14 |
Net gains (losses) on financial instruments at fair value and foreign exchange [Member | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Net gain/(loss) recognized in income | (56) | (20) |
Net gains (losses) on financial instruments at fair value and foreign exchange [Member | Currency Swaps Vie [Member] | ||
Derivative [Line Items] | ||
Net gain/(loss) recognized in income | 10 | (3) |
Net gains (losses) on financial instruments at fair value and foreign exchange [Member | All Other [Member] | ||
Derivative [Line Items] | ||
Net gain/(loss) recognized in income | $ (3) | $ 0 |
Business Segments (Summary Of Company's Segment Results) (Detail) - USD ($) $ in Millions |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2019 |
|||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenues | $ (6) | $ 50 | |||||||
Total expenses | 327 | 69 | |||||||
Income (loss) before income taxes | (333) | (19) | |||||||
Identifiable assets | 6,632 | $ 7,284 | |||||||
Non Variable Interest Entity [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | [1] | 43 | 55 | ||||||
Net change in fair value of insured derivatives | 14 | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | (63) | 22 | |||||||
Net investment losses related to other-than-temporary impairments | 0 | (28) | |||||||
Other net realized gains (losses) | 0 | 1 | |||||||
Inter-segment revenues | [2] | 0 | 0 | ||||||
Losses and loss adjustment | 243 | (38) | |||||||
Operating | 20 | 30 | |||||||
Interest | 47 | 52 | |||||||
Inter-segment expenses | [2] | 0 | 0 | ||||||
Variable Interest Entity Primary Beneficiary [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 15 | 18 | |||||||
Other net realized gains (losses) | (9) | (42) | |||||||
Revenues of consolidated VIEs | 14 | (14) | |||||||
Interest | 15 | 22 | |||||||
Expenses of consolidated VIEs | 17 | 25 | |||||||
Identifiable assets | 1,200 | $ 1,600 | |||||||
Operating Segments [Member] | U S Public Finance Insurance [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net change in fair value of insured derivatives | 0 | ||||||||
Inter-segment revenues | [2] | 7 | 7 | ||||||
Total revenues | 19 | 44 | |||||||
Inter-segment expenses | [2] | 14 | 15 | ||||||
Total expenses | 64 | (33) | |||||||
Income (loss) before income taxes | (45) | 77 | |||||||
Identifiable assets | 3,867 | ||||||||
Operating Segments [Member] | U S Public Finance Insurance [Member] | Non Variable Interest Entity [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | [1] | 30 | 38 | ||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | (18) | 40 | |||||||
Net investment losses related to other-than-temporary impairments | (28) | ||||||||
Other net realized gains (losses) | 1 | ||||||||
Losses and loss adjustment | 48 | (50) | |||||||
Operating | 2 | 2 | |||||||
Interest | 0 | 0 | |||||||
Operating Segments [Member] | U S Public Finance Insurance [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues of consolidated VIEs | 0 | (14) | |||||||
Expenses of consolidated VIEs | 0 | 0 | |||||||
Operating Segments [Member] | Corporate Operations [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net change in fair value of insured derivatives | 0 | ||||||||
Net investment losses related to other-than-temporary impairments | 0 | ||||||||
Inter-segment revenues | [2] | 18 | 19 | ||||||
Total revenues | (32) | 7 | |||||||
Inter-segment expenses | [2] | 6 | 6 | ||||||
Total expenses | 36 | 47 | |||||||
Income (loss) before income taxes | (68) | (40) | |||||||
Identifiable assets | 1,000 | ||||||||
Operating Segments [Member] | Corporate Operations [Member] | Non Variable Interest Entity [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | [1] | 6 | 7 | ||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | (56) | (18) | |||||||
Other net realized gains (losses) | (1) | ||||||||
Losses and loss adjustment | 0 | 0 | |||||||
Operating | 14 | 22 | |||||||
Interest | 16 | 19 | |||||||
Operating Segments [Member] | Corporate Operations [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues of consolidated VIEs | 0 | 0 | |||||||
Expenses of consolidated VIEs | 0 | 0 | |||||||
Operating Segments [Member] | International And Structured Finance Insurance [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net investment losses related to other-than-temporary impairments | 0 | ||||||||
Inter-segment revenues | [2] | 4 | 3 | ||||||
Total revenues | 36 | 28 | |||||||
Inter-segment expenses | [2] | 9 | 8 | ||||||
Total expenses | 256 | 84 | |||||||
Income (loss) before income taxes | (220) | (56) | |||||||
Identifiable assets | 4,051 | ||||||||
Operating Segments [Member] | International And Structured Finance Insurance [Member] | Non Variable Interest Entity [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | [1] | 7 | 10 | ||||||
Net change in fair value of insured derivatives | 14 | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 11 | 0 | |||||||
Other net realized gains (losses) | 1 | ||||||||
Losses and loss adjustment | 195 | 12 | |||||||
Operating | 4 | 6 | |||||||
Interest | 31 | 33 | |||||||
Operating Segments [Member] | International And Structured Finance Insurance [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues of consolidated VIEs | 14 | 0 | |||||||
Expenses of consolidated VIEs | 17 | 25 | |||||||
Intersegment Elimination [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Other net realized gains (losses) | 0 | ||||||||
Inter-segment revenues | [2] | (29) | (29) | ||||||
Total revenues | (29) | (29) | |||||||
Inter-segment expenses | [2] | (29) | (29) | ||||||
Total expenses | (29) | (29) | |||||||
Income (loss) before income taxes | 0 | 0 | |||||||
Identifiable assets | [3] | (2,286) | |||||||
Intersegment Elimination [Member] | Non Variable Interest Entity [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | [1] | 0 | 0 | ||||||
Net change in fair value of insured derivatives | 0 | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 0 | 0 | |||||||
Net investment losses related to other-than-temporary impairments | 0 | ||||||||
Losses and loss adjustment | 0 | 0 | |||||||
Operating | 0 | 0 | |||||||
Interest | 0 | 0 | |||||||
Intersegment Elimination [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues of consolidated VIEs | 0 | 0 | |||||||
Expenses of consolidated VIEs | $ 0 | $ 0 | |||||||
|
Accumulated Other Comprehensive Income |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Note 12: Accumulated Other Comprehensive Income The following table presents the changes in the components of AOCI for the three months ended March 31, 2020:
The following table presents the details of the reclassifications from AOCI for the three months ended March 31, 2020 and 2019:
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Loss and Loss Adjustment Expense Reserves (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Present Value Of The Probability-Weighted Future Claim Payments And Recoveries |
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Schedule Of Loss And Loss Adjustment Expenses Reserves |
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Schedule Of Insurance Loss Recoverable |
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Schedule Of Financial Guarantees And Related Claim Liability | The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of March 31, 2020:
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, 2019:
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Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from operations before provision (benefit) for income taxes |
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Fair Value Of Financial Instruments (Aggregate Fair Value And Remaining Contractual Principal Balance Outstanding On Fair Value Option) (Detail) - Variable Interest Entity [Member] - Loans Receivable [Member] - USD ($) $ in Millions |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Residential Mortgage Loans [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Loans receivable and other instruments, contractual outstanding principal | $ 96 | $ 107 |
Loans receivable and other instruments, 90 days or more past due, contractual outstanding principal | 123 | 154 |
Loans receivable and other instruments, fair value | 87 | 107 |
Loans receivable and other instruments, 90 days or more past due, fair value | 11 | 29 |
Loans receivable and other instruments, difference | 9 | 0 |
Loans receivable and other instruments, 90 days or more past due, difference | 112 | 125 |
Medium Term Notes [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Long-term debt instruments, contractual outstanding principal | 110 | 112 |
Long-term debt instruments, fair value | 98 | 108 |
Long-term debt instruments, difference | 12 | 4 |
Variable Interest Entity Notes [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Long-term debt instruments, contractual outstanding principal | 1,097 | 1,126 |
Long-term debt instruments, fair value | 331 | 403 |
Long-term debt instruments, difference | 766 | 723 |
Total Loans Receivable and Other Instruments [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Loans receivable and other instruments, contractual outstanding principal | 219 | 261 |
Loans receivable and other instruments, fair value | 98 | 136 |
Loans receivable and other instruments, difference | $ 121 | $ 125 |
Fair Value Of Financial Instruments (Fair Value Hierarchy Table Presents The Company's Assets And Liabilities At Fair Value Not Recorded On The Company's Consolidated Balance Sheet) (Detail) - USD ($) $ in Millions |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Variable Interest Entity Primary Beneficiary [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Investments held-to-maturity, fair value | $ 572 | $ 892 |
Variable interest entity notes | 1,160 | 1,539 |
Carrying Reported Amount Fair Value Disclosure [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Total assets | 529 | 890 |
Long-term debt | 2,261 | 2,228 |
Medium-term notes | 563 | 570 |
Investment agreements | 295 | 304 |
Total liabilities | 3,948 | 4,238 |
Gross | (177) | (311) |
Ceded | 15 | 24 |
Carrying Reported Amount Fair Value Disclosure [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Variable Interest Entity Primary Beneficiary [Member] | Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Investments held-to-maturity, fair value | 529 | 890 |
Variable interest entity notes | 829 | 1,136 |
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Total assets | 572 | 892 |
Long-term debt | 856 | 1,073 |
Medium-term notes | 377 | 396 |
Investment agreements | 415 | 394 |
Total liabilities | 2,479 | 3,016 |
Gross | 723 | 556 |
Ceded | 51 | 56 |
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Variable Interest Entity Primary Beneficiary [Member] | Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Investments held-to-maturity, fair value | 572 | 892 |
Variable interest entity notes | 831 | 1,153 |
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 1 [Member] | Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Total assets | 0 | 0 |
Long-term debt | 0 | 0 |
Medium-term notes | 0 | 0 |
Investment agreements | 0 | 0 |
Total liabilities | 0 | 0 |
Gross | 0 | 0 |
Ceded | 0 | 0 |
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 1 [Member] | Variable Interest Entity Primary Beneficiary [Member] | Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Investments held-to-maturity, fair value | 0 | 0 |
Variable interest entity notes | 0 | 0 |
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 2 [Member] | Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Total assets | 0 | 0 |
Long-term debt | 856 | 1,073 |
Medium-term notes | 0 | 0 |
Investment agreements | 0 | 0 |
Total liabilities | 1,117 | 1,334 |
Gross | 0 | 0 |
Ceded | 0 | 0 |
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 2 [Member] | Variable Interest Entity Primary Beneficiary [Member] | Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Investments held-to-maturity, fair value | 0 | 0 |
Variable interest entity notes | 261 | 261 |
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 3 [Member] | Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Total assets | 572 | 892 |
Long-term debt | 0 | 0 |
Medium-term notes | 377 | 396 |
Investment agreements | 415 | 394 |
Total liabilities | 1,362 | 1,682 |
Gross | 723 | 556 |
Ceded | 51 | 56 |
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 3 [Member] | Variable Interest Entity Primary Beneficiary [Member] | Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Investments held-to-maturity, fair value | 572 | 892 |
Variable interest entity notes | $ 570 | $ 892 |
Loss And Loss Adjustment Expense Reserves (Schedule Of Financial Guarantees And Related Claim Liability) (Detail) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2020
USD ($)
issue
policy
|
Dec. 31, 2019
USD ($)
issue
policy
|
|||||||||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||||||||||
Number of policies | policy | 279 | 276 | ||||||||||||
Number of issues | issue | [1] | 116 | 112 | |||||||||||
Remaining weighted average contract period (in years) | 7 years 4 months 24 days | 7 years 8 months 12 days | ||||||||||||
Principal | [2] | $ 5,152 | $ 5,588 | |||||||||||
Interest | [2] | 3,579 | 3,885 | |||||||||||
Total | [2] | 8,731 | 9,473 | |||||||||||
Gross claim liability | [3] | 1,068 | 965 | |||||||||||
Less: Gross potential recoveries | [4] | 1,781 | 2,184 | |||||||||||
Discount, net | [5] | (91) | (453) | |||||||||||
Net claim liability (recoverable) | (622) | (766) | ||||||||||||
Unearned premium revenue | 47 | 48 | ||||||||||||
Reinsurance recoverables on paid and unpaid losses | [6] | $ 13 | $ 19 | |||||||||||
Caution List Low [Member] | ||||||||||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||||||||||
Number of policies | policy | 42 | 45 | ||||||||||||
Number of issues | issue | [1] | 12 | 13 | |||||||||||
Remaining weighted average contract period (in years) | 6 years 7 months 6 days | 7 years 3 months 18 days | ||||||||||||
Principal | [2] | $ 1,192 | $ 1,546 | |||||||||||
Interest | [2] | 1,914 | 2,107 | |||||||||||
Total | [2] | 3,106 | 3,653 | |||||||||||
Gross claim liability | [3] | 0 | 0 | |||||||||||
Less: Gross potential recoveries | [4] | 0 | 0 | |||||||||||
Discount, net | [5] | 0 | 0 | |||||||||||
Net claim liability (recoverable) | 0 | 0 | ||||||||||||
Unearned premium revenue | $ 6 | $ 6 | ||||||||||||
Caution List Medium [Member] | ||||||||||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||||||||||
Number of policies | policy | 18 | 19 | ||||||||||||
Number of issues | issue | [1] | 5 | 5 | |||||||||||
Remaining weighted average contract period (in years) | 7 years 1 month 6 days | 7 years 2 months 12 days | ||||||||||||
Principal | [2] | $ 224 | $ 248 | |||||||||||
Interest | [2] | 99 | 110 | |||||||||||
Total | [2] | 323 | 358 | |||||||||||
Gross claim liability | [3] | 0 | 0 | |||||||||||
Less: Gross potential recoveries | [4] | 0 | 0 | |||||||||||
Discount, net | [5] | 0 | 0 | |||||||||||
Net claim liability (recoverable) | 0 | 0 | ||||||||||||
Unearned premium revenue | $ 3 | $ 3 | ||||||||||||
Caution List High [Member] | ||||||||||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||||||||||
Number of policies | policy | 0 | 0 | ||||||||||||
Number of issues | issue | [1] | 0 | 0 | |||||||||||
Principal | [2] | $ 0 | $ 0 | |||||||||||
Interest | [2] | 0 | 0 | |||||||||||
Total | [2] | 0 | 0 | |||||||||||
Gross claim liability | [3] | 0 | 0 | |||||||||||
Less: Gross potential recoveries | [4] | 0 | 0 | |||||||||||
Discount, net | [5] | 0 | 0 | |||||||||||
Net claim liability (recoverable) | 0 | 0 | ||||||||||||
Unearned premium revenue | $ 0 | $ 0 | ||||||||||||
Classified List [Member] | ||||||||||||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||||||||||
Number of policies | policy | 219 | 212 | ||||||||||||
Number of issues | issue | [1] | 99 | 94 | |||||||||||
Remaining weighted average contract period (in years) | 7 years 8 months 12 days | 7 years 10 months 24 days | ||||||||||||
Principal | [2] | $ 3,736 | $ 3,794 | |||||||||||
Interest | [2] | 1,566 | 1,668 | |||||||||||
Total | [2] | 5,302 | 5,462 | |||||||||||
Gross claim liability | [3] | 1,068 | 965 | |||||||||||
Less: Gross potential recoveries | [4] | 1,781 | 2,184 | |||||||||||
Discount, net | [5] | (91) | (453) | |||||||||||
Net claim liability (recoverable) | (622) | (766) | ||||||||||||
Unearned premium revenue | $ 38 | $ 39 | ||||||||||||
|
Derivative Instruments (Total Fair Value Of Company's Derivative Assets And Liabilities By Instrument And Balance Sheet Location, Before Counterparty Netting) (Detail) - Not Designated as Hedging Instrument [Member] - Derivative Instrument [Member] - USD ($) $ in Millions |
Mar. 31, 2020 |
Dec. 31, 2019 |
||
---|---|---|---|---|
Derivative [Line Items] | ||||
Derivative notional amount | $ 2,490 | $ 2,607 | ||
Derivative Assets, Not designated, Fair Value | [1] | 19 | 9 | |
Derivative Liabilities, Not designated, Fair Value | [1] | (247) | (190) | |
Insured credit default swaps [Member] | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 24 | 32 | ||
Insured credit default swaps [Member] | Other assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Assets, Not designated, Fair Value | [1] | 0 | 0 | |
Insured credit default swaps [Member] | Derivative liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liabilities, Not designated, Fair Value | [1] | (8) | (7) | |
Insured swaps [Member] | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 1,694 | 1,795 | ||
Insured swaps [Member] | Other assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Assets, Not designated, Fair Value | [1] | 0 | 0 | |
Insured swaps [Member] | Derivative liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liabilities, Not designated, Fair Value | [1] | (2) | (2) | |
Interest rate swaps [Member] | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 439 | 441 | ||
Interest rate swaps [Member] | Other assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Assets, Not designated, Fair Value | [1] | 1 | 1 | |
Interest rate swaps [Member] | Derivative liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liabilities, Not designated, Fair Value | [1] | (190) | (132) | |
Interest rate swaps-embedded [Member] | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 227 | 232 | ||
Interest rate swaps-embedded [Member] | Medium-term notes [Member] | ||||
Derivative [Line Items] | ||||
Derivative Assets, Not designated, Fair Value | [1] | 0 | 0 | |
Derivative Liabilities, Not designated, Fair Value | [1] | (10) | (15) | |
Currency swaps-VIE [Member] | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 57 | 58 | ||
Currency swaps-VIE [Member] | Other assets-VIE [Member] | ||||
Derivative [Line Items] | ||||
Derivative Assets, Not designated, Fair Value | [1] | 18 | 8 | |
Currency swaps-VIE [Member] | Derivative liabilities-VIE [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liabilities, Not designated, Fair Value | [1] | 0 | 0 | |
All other [Member] | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 49 | 49 | ||
All other [Member] | Other assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative Assets, Not designated, Fair Value | [1] | 0 | 0 | |
All other [Member] | Derivative liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liabilities, Not designated, Fair Value | [1] | $ (37) | $ (34) | |
|
Business Segments (Narrative) (Detail) |
3 Months Ended |
---|---|
Mar. 31, 2020
segments
| |
Disclosure Business Segments Summary Of Companys Segment Results [Abstract] | |
Number of operating segments | 3 |
Investments (Narrative) (Detail) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2020
USD ($)
security
|
Dec. 31, 2019
USD ($)
security
|
|
Schedule Of Investments [Line Items] | ||
Fair value of securities on deposit with various regulatory authorities | $ 11 | $ 11 |
Fair value of securities pledged as collateral | $ 299 | $ 313 |
Number of securities in unrealized loss position for a continuous 12 month period | security | 42 | 63 |
Rate that a security's fair value is below book value | 5.00% | 5.00% |
Collateral Pledged [Member] | ||
Schedule Of Investments [Line Items] | ||
Cash | $ 8 | |
Securities In Unrealized Loss Position [Member] | ||
Schedule Of Investments [Line Items] | ||
Weighted average contractual maturity period in years for securities in an unrealized loss position | 8 years | 10 years |
Fair Value Below Book Value Greater Than Five Percent [Member] | ||
Schedule Of Investments [Line Items] | ||
Number of securities in unrealized loss position for a continuous 12 month period | security | 41 | 16 |
Consolidated Statements Of Operations (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Financial Guarantee Insurance Segment [Member] | ||
Ceded premiums earned | $ 1 | $ 1 |
Cover Page - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
May 04, 2020 |
|
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000814585 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2020 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Trading Symbol | MBI | |
Entity Registrant Name | MBIA INC | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 67,699,960 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity File Number | 1-9583 | |
Entity Tax Identification Number | 06-1185706 | |
Entity Address, Address Line One | 1 Manhattanville Road, Suite 301 | |
Entity Address, City or Town | Purchase | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10577 | |
Entity Incorporation, State or Country Code | CT | |
City Area Code | 914 | |
Local Phone Number | 273-4545 |
Investments (Distribution Of Securities By Percentage Of Fair Value Below Book Value By More Than 5% For A Continuous Twelve Month Period Or Longer) (Detail) - Unrealized loss position > 12 months $ in Millions |
Mar. 31, 2020
USD ($)
security
|
---|---|
> 5% To 15% [Member] | |
Available For Sale Securities [Abstract] | |
Number of available-for-sale securities in unrealized loss position | security | 8 |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 21 |
Available For Sale Securities | $ 20 |
Held To Maturity Securities [Abstract] | |
Percentage Of Fair Value Below Book Value Minimum | 5.00% |
Percentage Of Fair Value Below Book Value Maximum | 15.00% |
> 15% To 25% [Member] | |
Available For Sale Securities [Abstract] | |
Number of available-for-sale securities in unrealized loss position | security | 18 |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 48 |
Available For Sale Securities | $ 38 |
Held To Maturity Securities [Abstract] | |
Percentage Of Fair Value Below Book Value Minimum | 15.00% |
Percentage Of Fair Value Below Book Value Maximum | 25.00% |
> 25% To 50% [Member] | |
Available For Sale Securities [Abstract] | |
Number of available-for-sale securities in unrealized loss position | security | 13 |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 33 |
Available For Sale Securities | $ 21 |
Held To Maturity Securities [Abstract] | |
Percentage Of Fair Value Below Book Value Minimum | 25.00% |
Percentage Of Fair Value Below Book Value Maximum | 50.00% |
> 50% [Member] | |
Available For Sale Securities [Abstract] | |
Number of available-for-sale securities in unrealized loss position | security | 2 |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 0 |
Available For Sale Securities | $ 0 |
Held To Maturity Securities [Abstract] | |
Percentage Of Fair Value Below Book Value Minimum | 50.00% |
Greater Than 5% [Member] | |
Available For Sale Securities [Abstract] | |
Number of available-for-sale securities in unrealized loss position | security | 41 |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 102 |
Available For Sale Securities | $ 79 |
Business Developments and Risks and Uncertainties |
3 Months Ended |
---|---|
Mar. 31, 2020 | |
Text Block [Abstract] | |
Business Developments and Risks and Uncertainties | Note 1: Business Developments and Risks and Uncertainties Summary MBIA Inc., together with its consolidated subsidiaries, (collectively, “MBIA” or the “Company”) operates within the financial guarantee insurance industry. MBIA manages three operating segments: 1) United States (“U.S.”) public finance insurance; 2) corporate; and 3) international and structured finance insurance. The Company’s U.S. public finance insurance business is managed through National Public Finance Guarantee Corporation (“National”), the corporate segment is operated through MBIA Inc. and several of its subsidiaries, including its service company, MBIA Services Corporation (“MBIA Services”) and its international and structured finance insurance business is primarily operated through MBIA Insurance Corporation and its subsidiaries (“MBIA Corp.”). Refer to “Note 10: Business Segments” for further information about the Company’s operating segments. Business Developments Puerto Rico On January 1, 2020, the Commonwealth of Puerto Rico and certain of its instrumentalities (“Puerto Rico”) defaulted on scheduled debt service for National insured bonds and National paid gross claims in the aggregate of $59 million. As of March 31, 2020, National had $3.3 billion of debt service outstanding related to Puerto Rico. Refer to the “Risks and Uncertainties” section below for additional information on the Company’s Puerto Rico exposures. PREPA RSA In September of 2019, National agreed to join the restructuring support agreement, as amended (“RSA”), with the Puerto Rico Electric Power Authority (“PREPA”), other monoline insurers, a group of uninsured PREPA bondholders, Puerto Rico, and the Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”). The Rule 9019 hearing to approve the RSA has been delayed several times, and most recently was adjourned due to the outbreak of the novel coronavirus COVID-19 (“COVID-19”) until further notice. The Oversight Board and the Commonwealth have been ordered to submit a status report to the Title III court on May 15, 2020. The debt restructuring contemplated by the RSA will not be effective until (i) confirmation of a plan of adjustment under the Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”), (ii) negotiation and consummation of definitive documentation and legal opinions, (iii) enactment and implementation of supportive Puerto Rico legislation and (iv) receipt of Puerto Rico regulatory approval, each of which outcome is uncertain and subject to varying degrees of risk.Risks and Uncertainties The Company’s financial statements include estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The outcome of certain significant risks and uncertainties could cause the Company to revise its estimates and assumptions or could cause actual results to differ materially from the Company’s estimates. The discussion below highlights the significant risks and uncertainties that could have a material effect on the Company’s financial statements and business objectives in future periods. COVID-19 COVID-19, a respiratory disease caused by a new strain of coronavirus, was declared a pandemic by the World Health Organization in March of 2020 and has spread globally. The pandemic has affected a wide range of economic activities, as well as domestic and global business and financial markets. The outbreak and its attendant governmental policy and social responses are evolving rapidly. Many states and municipalities have enacted various quarantining and “shelter-in-place” regulations which severely limit economic activity and travel. The Company continues to perform all of its traditional operations, including surveilling and, as necessary, remediating, the credits in its insured portfolios.Insured portfolios At this time it is not possible to comprehensively quantify the financial impact of the pandemic on the Company’s operating insurance companies’ overall insured portfolios, or to account for the impact of the outbreak on most of the specific credits within those portfolios, due to, in part, challenges in determining whether and to what extent the underlying credits will be able or willing to continue to meet their debt service obligations or avoid long term impairment in this environment. Adverse impacts on macroeconomic factors resulting from the spread of COVID-19, including without limitation reduced economic activity and certainty, increased unemployment, increased loan defaults or delinquencies, and increased stress on municipal budgets, including due to reduced tax revenues and the ability to raise taxes or limit spending, could materially and adversely affect the performance of the Company’s insured portfolios. The impact of the pandemic on National’s financial guarantee credits is likely to vary based on the nature of the taxes, fees and revenues pledged to debt repayment and their sensitivity to the related slowdown in economic activity. Several of the credits within National’s insured portfolio have made public pronouncements that the pandemic has had an impact on their economic status, without yet providing any specific quantification of the impact. The duration of the pandemic, the availability of federal aid to state and local governments, and the breadth and speed of economic recovery may all contribute to the ultimate degree and length of the economic stress incurred by the credits in National’s and MBIA Corp.’s insured portfolios. Further, any national recession that may result from the pandemic and its aftermath could present additional but yet unknown credit risks to National’s and MBIA Corp.’s insured portfolios.Federal legislation passed to combat the economic impact of the pandemic, principally the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, and an additional nearly $500 billion approved by Congress and the President in late April of 2020, included significant aid to public sector issuers including states, territories, healthcare, higher education and transportation issuers. In addition, the Federal Reserve has announced several actions in furtherance of its mandate from Congress to promote the stability of the financial system that are directly supportive of the municipal market. It is premature to assess whether these or any subsequent federal responses will prevent or reduce financial distress in the municipal sector. If the issuers of the obligations in National’s insured portfolio, including Puerto Rico, are unable to raise taxes, reduce spending, or receive federal assistance, the Company may experience new or additional losses or impairments on those obligations, which could materially and adversely affect its business, financial condition and financial results. Certain of MBIA Corp.’s structured finance policies, including those in which the underlying principal obligations are comprised of residential or commercial mortgages and mortgage-backed securities (“MBS”), could be negatively impacted by delays or failures of borrowers to make payments of principal and interest when due, or delays or moratoriums on foreclosures or enforcement actions with respect to delinquent or defaulted mortgages imposed by governmental authorities. MBIA Corp. has recorded significant loss reserves on its residential mortgage-backed securities (“RMBS”) and collateralized debt obligations (“CDO”) exposures, and there can be no assurance that these reserves will be sufficient if the pandemic causes further deterioration to the economy. These transactions are also subject to servicer risks, which relate to problems with the transaction’s servicer that could adversely impact performance of the underlying assets. Additionally, several of the Company’s credits, particularly within its international public finance sector, feature large, near term debt-service payments, and there can be no assurance that the liquidity position of MBIA Corp. will enable it to satisfy any claims that arise if the issuers of such credits are unable or unwilling to refinance or repay their obligations. MBIA Corp. has recorded substantial expected recoveries on certain RMBS transactions, and the forbearance options available under the CARES Act for mortgage borrowers who are facing financial difficulties, may delay or impair collections on these recoveries. Liquidity The Company continues to monitor its cash and liquid asset resources using cash forecasting and stress-scenario testing. Members of the Company’s senior management meet regularly to review liquidity metrics, discuss contingency plans and establish target liquidity levels. It remains premature to predict the full impact the pandemic may have on the Company’s future liquidity position and needs. Declines in the market value or rating eligibility of assets pledged against the Company’s obligations as a result of credit market deterioration caused by COVID-19 require additional eligible assets to be pledged in order to meet minimum required collateral amounts against these obligations. This could require the Company to sell assets, potentially with substantial losses or use free cash or other assets to meet the collateral requirements, thus negatively impacting the Company’s liquidity position. Associated declines in the yields in its insurance companies’ fixed-income portfolios could materially impact investment income.U.S. Public Finance Market Conditions National continues to monitor and remediate its existing insured portfolio and may also pursue strategic alternatives that could enhance shareholder value. Certain state and local governments and territory obligors that National insures are under financial and budgetary stress. This could lead to an increase in defaults by such entities on the payment of their obligations and losses or impairments on a greater number of National’s insured transactions. National monitors and analyzes these situations and other stressed credits closely, and the overall extent and duration of this stress is uncertain. Puerto Rico had been experiencing significant fiscal stress and constrained liquidity, and in response, the U.S. Congress passed PROMESA, which established an independent Oversight Board vested with the sole power to certify fiscal plans for Puerto Rico. Any current proposed or contemplated plan, including any revisions thereto, can provide no assurance that National will fully recover past amounts paid or future amounts that may be covered under its insurance policies. In addition, the extent and duration of any federal aid that may be offered to Puerto Rico is inherently uncertain, and the necessary and greater involvement of the federal government, through its actions to deliver disaster relief and other support services, in addition to the role of the Oversight Board and the role of Puerto Rico in its own recovery, heightens political risk in connection with the restructuring of legacy debt. This risk could lead the Oversight Board, Puerto Rico or the federal government to seek to extract greater concessions from creditors based on the uncertainty of Puerto Rico’s long term recovery prospects. In this event, losses at National on select Puerto Rico exposures could increase materially. MBIA Corp. Insured Portfolio MBIA Corp.’s primary objectives are to satisfy all claims by its policyholders and to maximize future recoveries, if any, for its senior lending and surplus note holders, and then its preferred stock holders. MBIA Corp. is executing this strategy by, among other things, pursuing various actions focused on maximizing the collection of recoveries and by reducing potential losses on its insurance exposures. MBIA Corp.’s insured portfolio performance could deteriorate and result in additional significant loss reserves and claim payments. MBIA Corp.’s ability to meet its obligations is limited by available liquidity and its ability to secure additional liquidity through financing and other transactions. There can be no assurance that MBIA Corp. will be successful in generating sufficient resources to meet its obligations. Zohar and RMBS Recoveries Payment of claims on MBIA Corp.’s policies insuring the Class A-1 and A-2 notes issued by Zohar CDO 2003-1, Limited (“Zohar I”) and Zohar II 2005-1, Limited (“Zohar II”), entitles MBIA Corp. to reimbursement of such amounts plus interest and expenses and/or to exercise certain rights and remedies to seek recovery of such amounts. MBIA Corp. anticipates that the primary source of the recoveries will come from the monetization of the assets of Zohar I and Zohar II (the “Zohar Assets”), which include, among other things, loans made to, and equity interests in, companies that, until late March 2020, were purportedly controlled and managed by the sponsor and former collateral manager of Zohar I and Zohar II (the “Zohar Sponsor”). In late March 2020, the Zohar Sponsor resigned as director and manager of all but one portfolio company, and Zohar I and Zohar II have nominated or elected, or are in talks regarding the engagement of, new directors and managers at these portfolio companies, although the Zohar Sponsor may continue to serve in some capacity at select portfolio companies until a replacement is put in place. There can be no assurance that the monetization of the Zohar Assets will yield amounts sufficient to permit MBIA Corp. to recover a substantial portion of the payments it made on Zohar I and Zohar II. MBIA Corp. also projects to collect excess spread from insured RMBS, and to recover proceeds from Credit Suisse Securities (USA) LLC and DLJ Mortgage Capital, Inc. (collectively, “Credit Suisse”) arising from its failure to repurchase ineligible loans that were included in a Credit Suisse sponsored RMBS transaction. However, the amount and timing of these recoveries and collections are uncertain. Failure to collect its expected recoveries could impede MBIA Corp.’s ability to make payments when due on other policies. MBIA Corp. believes that if the New York State Department of Financial Services (“NYSDFS”) concludes at any time that MBIA Insurance Corporation will not be able to pay its policyholder claims, the NYSDFS would likely put MBIA Insurance Corporation into a rehabilitation or liquidation proceeding under Article 74 of the New York Insurance Law (“NYIL”) and/or take such other actions as the NYSDFS may deem necessary to protect the interests of MBIA Insurance Corporation’s policyholders. The determination to commence such a proceeding or take other such actions is within the exclusive control of the NYSDFS. Given the separation of MBIA Inc. and MBIA Corp. as distinct legal entities, the absence of any cross defaults between the entities and the lack of reliance by MBIA Inc. on MBIA Corp. for dividends, the Company does not believe that a rehabilitation or liquidation proceeding with respect to MBIA Insurance Corporation would have any significant liquidity impact on MBIA Inc. Such a proceeding could have material adverse consequences for MBIA Corp., including the termination of insured credit default swaps (“CDS”) and other derivative contracts for which counterparties may assert market-based claims, the acceleration of debt obligations issued by affiliates and insured by MBIA Corp., the loss of control of MBIA Insurance Corporation to a rehabilitator or liquidator, and unplanned costs. Refer to “Note 5: Loss and Loss Adjustment Expense Reserves” for additional information about MBIA Corp.’s recoveries. Corporate Liquidity Based on the Company’s projections of National’s dividends and other cash inflows, including potential additional releases under its tax sharing agreement and related tax escrow account (“Tax Escrow Account”), the Company expects that MBIA Inc. will have sufficient cash to satisfy its debt service and general corporate needs. However, MBIA Inc. continues to have liquidity risk that could be caused by interruption of or reduction in dividends or tax payments received from operating subsidiaries, deterioration in the performance of invested assets, impaired access to the capital markets, as well as other factors, which are not anticipated at this time. Furthermore, failure by MBIA Inc. to settle liabilities that are insured by MBIA Corp. could result in claims on MBIA Corp. |
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