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Loss and Loss Adjustment Expense Reserves (Tables)
 9 Months Ended
Sep. 30, 2020
Text Block [Abstract]  
Present Value Of The Probability-Weighted Future Claim Payments And Recoveries
          
          
          
          
 
  
As of September 30,
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
  
$
1,233
 
 
$
454
 
 
$
911
 
 
$
432
 
International and Structured Finance Insurance:
  
 
 
 
Before VIE eliminations
(1)
  
 
1,116
 
 
 
791
 
 
 
1,286
 
 
 
749
 
VIE eliminations
(1)
  
 
(551
) 
 
 
(254
) 
 
 
(503
) 
 
 
(280
) 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total international and structured finance insurance
  
 
565
 
 
 
537
 
 
 
783
 
 
 
469
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total
  
$
1,798
 
 
$
991
 
 
$
1,694
 
 
$
901
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
(1) - Includes loan repurchase commitments of $530 million and $486 million as of September 30, 2020 and December 31, 2019, respectively.
(2) - Amounts are net of expected recoveries.
Schedule Of Loss And Loss Adjustment Expenses Reserves
In millions
 
Changes in Loss and LAE Reserves for the Nine Months Ended September 30, 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
September 30,
2020
(1)
$901
 
$(435)
 
$8
 
$(86)
 
$600
 
$7
 
(4)
 
$991
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
(1) - Includes changes in amount and timing of estimated payments and recoveries.
Schedule Of Insurance Loss Recoverable
 
          
          
          
          
          
          
          
 
  
 
 
  
Changes in Insurance Loss Recoverable
 
 
  
 
 
  
for the Nine Months Ended September 30, 2020
 
In millions
  
Gross
Reserve as of
December 31,
2019
 
  
Collections
for Cases
 
 
Accretion
of
Recoveries
 
  
Changes in
Discount
Rates
 
  
Changes in
Assumptions
 
 
Other
 
 
Gross
Reserve as of
September 30,
2020
 
Insurance loss recoverable
  
$
1,694
 
  
$
(35
) 
 
$
11
 
  
$
152
 
  
$
(21
) 
 
$
(3
) 
 
$
1,798
 
  
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
   
 
 
 
  
 
 
 
  
 
 
 
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 September 30, 2020:
 
     
               
      
               
      
               
      
               
      
               
  
 
  
Surveillance Categories
 
$ in millions
  
Caution
List
Low
 
  
Caution
List
Medium
 
  
Caution
List
High
 
  
Classified
List
 
 
Total
 
Number of policies
  
 
50
 
  
 
17
 
  
 
-
 
  
 
220
 
 
 
287
 
Number of issues
(1)
  
 
18
 
  
 
4
 
  
 
-
 
  
 
101
 
 
 
123
 
Remaining weighted average contract period (in years)
  
 
6.1
 
  
 
6.6
 
  
 
-
 
  
 
8.0
 
 
 
7.4
 
Gross insured contractual payments outstanding:
(2)
  
  
  
  
 
Principal
  
$
1,558
 
  
$
218
 
  
$
-
 
  
$
3,364
 
 
$
5,140
 
Interest
  
 
2,058
 
  
 
90
 
  
 
-
 
  
 
1,457
 
 
 
3,605
 
  
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
  
 
 
  
Total
  
$
3,616
 
  
$
308
 
  
$
-
 
  
$
4,821
 
 
$
8,745
 
  
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
  
 
 
  
Gross Claim Liability
(3)
  
$
-
 
  
$
-
 
  
$
-
 
  
$
1,088
 
 
$
1,088
 
Less:
  
  
  
  
 
Gross Potential Recoveries
(4)
  
 
-
 
  
 
-
 
  
 
-
 
  
 
2,008
 
 
 
2,008
 
Discount, net
(5)
  
 
-
 
  
 
-
 
  
 
-
 
  
 
(133
) 
 
 
(133
) 
  
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
  
 
 
  
Net claim liability (recoverable)
  
$
-
 
  
$
-
 
  
$
-
 
  
$
(787
) 
 
$
(787
) 
  
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
  
 
 
  
Unearned premium revenue
  
$
10
 
  
$
3
 
  
$
-
 
  
$
36
 
 
$
49
 
Reinsurance recoverable on paid and unpaid losses
(6)
  
  
  
  
 
$
10
 
 
(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.
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:
 
     
               
      
               
      
               
      
               
      
               
  
 
  
Surveillance Categories
 
$ in millions
  
Caution
List
Low
 
  
Caution
List
Medium
 
  
Caution
List
High
 
  
Classified
List
 
 
Total
 
Number of policies
  
 
45
 
  
 
19
 
  
 
-
 
  
 
212
 
 
 
276
 
Number of issues
(1)
  
 
13
 
  
 
5
 
  
 
-
 
  
 
94
 
 
 
112
 
Remaining weighted average contract period (in years)
  
 
7.3
 
  
 
7.2
 
  
 
-
 
  
 
7.9
 
 
 
7.7
 
Gross insured contractual payments outstanding:
(2)
  
  
  
  
 
Principal
  
$
1,546
 
  
$
248
 
  
$
-
 
  
$
3,794
 
 
$
5,588
 
Interest
  
 
2,107
 
  
 
110
 
  
 
-
 
  
 
1,668
 
 
 
3,885
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
  
 
 
 
Total
  
$
3,653
 
  
$
358
 
  
$
-
 
  
$
5,462
 
 
$
9,473
 
  
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
  
 
 
 
Gross Claim Liability
(3)
  
$
-
 
  
$
-
 
  
$
-
 
  
$
965
 
 
$
965
 
Less:
  
  
  
  
 
Gross Potential Recoveries
(4)
  
 
-
 
  
 
-
 
  
 
-
 
  
 
2,184
 
 
 
2,184
 
Discount, net
(5)
  
 
-
 
  
 
-
 
  
 
-
 
  
 
(453
) 
 
 
(453
) 
  
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
  
 
 
 
Net claim liability (recoverable)
  
$
-
 
  
$
-
 
  
$
-
 
  
$
(766
) 
 
$
(766
) 
  
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
  
 
 
 
Unearned premium revenue
  
$
6
 
  
$
3
 
  
$
-
 
  
$
39
 
 
$
48
 
Reinsurance recoverable on paid and unpaid losses
(6)
  
  
  
  
 
$
19
 
 
(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.