| 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 |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
(Address of principal executive offices) |
(Zip Code) | |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
| Large accelerated filer | ☐ |
☒ | ||||
| Non-accelerated filer | ☐ |
Smaller reporting company | ||||
| Emerging growth company | ||||||
PAGE |
||||||
| PART I FINANCIAL INFORMATION |
| |||||
| Item 1. |
Financial Statements MBIA Inc. and Subsidiaries (Unaudited) | |||||
| 1 | ||||||
| 2 | ||||||
| 3 | ||||||
| 4 | ||||||
| 5 | ||||||
| 6 | ||||||
| 6 | ||||||
| 10 | ||||||
| 10 | ||||||
| 11 | ||||||
| 12 | ||||||
| 18 | ||||||
| 31 | ||||||
| 36 | ||||||
| 38 | ||||||
| 39 | ||||||
| 43 | ||||||
| 44 | ||||||
| 45 | ||||||
| Item 2. |
50 | |||||
| Item 3. |
78 | |||||
| Item 4. |
78 | |||||
| PART II OTHER INFORMATION |
| |||||
| Item 1. |
Legal Proceedings | 79 | ||||
| Item 1A. |
Risk Factors | 79 | ||||
| Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds | 84 | ||||
| Item 6. |
Exhibits | 84 | ||||
| 85 | ||||||
| • | 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. |
September 30, 2021 |
December 31, 2020 | |||||||
| Assets |
||||||||
| Investments: |
||||||||
| Fixed-maturity securities held as available-for-sale, |
$ |
$ |
||||||
| Investments carried at fair value |
||||||||
| Investments pledged as collateral, at fair value (amortized cost $ |
||||||||
| Short-term investments, at fair value (amortized cost $ |
||||||||
| |
|
|
|
|
| |||
| Total investments |
||||||||
| Cash and cash equivalents |
||||||||
| Premiums receivable (net of allowance for credit losses $ |
||||||||
| Deferred acquisition costs |
||||||||
| Insurance loss recoverable |
||||||||
| Other assets |
||||||||
| Assets of consolidated variable interest entities: |
||||||||
| Cash |
||||||||
| Investments carried at fair value |
||||||||
| Loans receivable at fair value |
||||||||
| Loan repurchase commitments |
||||||||
| Other assets |
||||||||
| |
|
|
|
|
| |||
| Total assets |
$ |
$ |
||||||
| |
|
|
|
|
| |||
| Liabilities and Equity |
||||||||
| Liabilities: |
||||||||
| Unearned premium revenue |
$ |
$ |
||||||
| Loss and loss adjustment expense reserves |
||||||||
| Long-term debt |
||||||||
| Medium-term notes (includes financial instruments carried at fair value of $ |
||||||||
| Investment agreements |
||||||||
| Derivative liabilities |
||||||||
| Other liabilities |
||||||||
| Liabilities of consolidated variable interest entities: |
||||||||
| Variable interest entity notes (includes financial instruments carried at fair value of $ |
||||||||
| |
|
|
|
|
| |||
| Total liabilities |
||||||||
| |
|
|
|
|
| |||
| Commitments and contingencies (Refer to Note 13: Commitments and Contingencies) |
||||||||
| Equity: |
||||||||
| Preferred stock, par value $ |
||||||||
| Common stock, par value $ |
||||||||
| Additional paid-in capital |
||||||||
| Retained earnings (deficit) |
( |
) | ( |
) | ||||
| Accumulated other comprehensive income (loss), net of tax of $ |
||||||||
| Treasury stock, at cost and |
( |
) |
( |
) | ||||
| |
|
|
|
|
| |||
| Total shareholders’ equity of MBIA Inc. |
( |
) | ||||||
| Preferred stock of subsidiary |
||||||||
| |
|
|
|
|
| |||
| Total equity |
( |
) |
||||||
| |
|
|
|
|
| |||
| Total liabilities and equity |
$ |
$ |
||||||
| |
|
|
|
|
| |||
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||||||
2021 |
2020 |
2021 |
2020 | |||||||||||||
| Revenues |
||||||||||||||||
| Premiums earned: |
||||||||||||||||
| Scheduled premiums earned |
$ |
$ |
$ |
$ |
||||||||||||
| Refunding premiums earned |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Premiums earned (net of ceded premiums of $ |
||||||||||||||||
| Net investment income |
||||||||||||||||
| Fees and reimbursements |
||||||||||||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange |
( |
) | ||||||||||||||
| Net gains (losses) on extinguishment of debt |
||||||||||||||||
| Revenues of consolidated variable interest entities: |
||||||||||||||||
| Net investment income |
||||||||||||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange |
( |
) |
( |
) |
||||||||||||
| Other net realized gains (losses) |
( |
) |
( |
) |
||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total revenues |
||||||||||||||||
| Expenses |
||||||||||||||||
| Losses and loss adjustment |
||||||||||||||||
| Amortization of deferred acquisition costs |
||||||||||||||||
| Operating |
||||||||||||||||
| Interest |
||||||||||||||||
| Expenses of consolidated variable interest entities: |
||||||||||||||||
| Operating |
||||||||||||||||
| Interest |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total expenses |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income (loss) before income taxes |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| Provision (benefit) for income taxes |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income (loss) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income (loss) per common share |
||||||||||||||||
| Basic |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| Diluted |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| Weighted average number of common shares outstanding |
||||||||||||||||
| Basic |
||||||||||||||||
| Diluted |
||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||||||
2021 |
2020 |
2021 |
2020 | |||||||||||||
| Net income (loss) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| Other comprehensive income (loss): |
||||||||||||||||
| Available-for-sale |
||||||||||||||||
| Unrealized gains (losses) arising during the period |
( |
) |
( |
) |
||||||||||||
| Reclassification adjustments for (gains) losses included in net income (loss) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| Foreign currency translation: |
||||||||||||||||
| Foreign currency translation gains (losses) |
( |
) |
( |
) | ||||||||||||
| Instrument-specific credit risk of liabilities measured at fair value: |
||||||||||||||||
| Unrealized gains (losses) arising during the period |
( |
) |
( |
) |
||||||||||||
| Reclassification adjustments for (gains) losses included in net income (loss) |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total other comprehensive income (loss) |
( |
) |
( |
) |
||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Comprehensive income (loss) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||||||
2021 |
2020 |
2021 |
2020 | |||||||||||||
| Common shares |
|
|||||||||||||||
| Balance at beginning and end of period |
||||||||||||||||
| Common stock amount |
||||||||||||||||
| Balance at beginning and end of period |
$ |
$ |
$ |
$ |
||||||||||||
| Additional paid-in capital |
||||||||||||||||
| Balance at beginning of period |
$ |
$ |
$ |
$ |
||||||||||||
| Period change |
( |
) |
( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Balance at end of period |
$ |
$ |
$ |
$ |
||||||||||||
| Retained earnings |
||||||||||||||||
| Balance at beginning of period |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
||||||||
| ASU 2016-13 transition adjustment |
( |
) | ||||||||||||||
| Net income (loss) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Balance at end of period |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
||||||||
| Accumulated other comprehensive income (loss) |
||||||||||||||||
| Balance at beginning of period |
$ |
$ |
$ |
$ |
( |
) | ||||||||||
| Other comprehensive income (loss) |
( |
) |
( |
) |
||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Balance at end of period |
$ |
$ |
$ |
$ |
||||||||||||
| Treasury shares |
||||||||||||||||
| Balance at beginning of period |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| Treasury shares acquired under share repurchase program |
( |
) |
( |
) | ||||||||||||
| Other |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Balance at end of perio d |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| Treasury stock amount |
||||||||||||||||
| Balance at beginning of period |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| Treasury shares acquired under share repurchase program |
( |
) |
( |
) | ||||||||||||
| Other |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| 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 |
||||||||||||||||
| Preferred stock of subsidiary amount |
||||||||||||||||
| Balance at beginning and end of period |
$ |
$ |
$ |
$ |
||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total equity |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
Nine Months Ended September 30, | ||||||||
2021 |
2020 | |||||||
| Cash flows from operating activities: |
||||||||
| Premiums, fees and reimbursements received |
$ |
$ |
||||||
| Investment income received |
||||||||
| Financial guarantee losses and loss adjustment expenses paid |
( |
) |
( |
) | ||||
| Proceeds from recoveries and reinsurance |
||||||||
| Proceeds from loan repurchase commitments |
||||||||
| Operating and employee related expenses paid |
( |
) |
( |
) | ||||
| Interest paid, net of interest converted to principal |
( |
) |
( |
) | ||||
| Income taxes (paid) received |
||||||||
| |
|
|
|
|
| |||
| Net cash provided (used) by operating activities |
( |
) | ||||||
| |
|
|
|
|
| |||
| Cash flows from investing activities: |
||||||||
| Purchases of available-for-sale |
( |
) |
( |
) | ||||
| Sales of available-for-sale |
||||||||
| Paydowns and maturities of available-for-sale |
||||||||
| Purchases of investments at fair value |
( |
) |
( |
) | ||||
| Sales, paydowns, maturities and other proceeds of investments at fair value |
||||||||
| Sales, paydowns and maturities (purchases) of short-term investments, net |
( |
) |
||||||
| Sales, paydowns and maturities of held-to-maturity |
||||||||
| Paydowns and maturities of loans receivable |
||||||||
| (Payments) proceeds for derivative settlements |
( |
) |
( |
) | ||||
| |
|
|
|
|
| |||
| Net cash provided (used) by investing activities |
||||||||
| |
|
|
|
|
| |||
| Cash flows from financing activities: |
||||||||
| Proceeds from investment agreements |
||||||||
| Principal paydowns of investment agreements |
( |
) |
( |
) | ||||
| Principal paydowns of medium-term notes |
( |
) |
||||||
| Principal paydowns of variable interest entity notes |
( |
) |
( |
) | ||||
| Principal paydowns of long-term debt |
( |
) |
||||||
| Purchases of treasury stock |
( |
) |
( |
) | ||||
| Other financing |
( |
) | ||||||
| |
|
|
|
|
| |||
| Net cash provided (used) by financing activities |
( |
) |
( |
) | ||||
| |
|
|
|
|
| |||
| Net increase (decrease) in cash and cash equivalents |
( |
) |
||||||
| Cash and cash equivalents - beginning of period |
||||||||
| |
|
|
|
|
| |||
| 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: |
||||||||
| Change in: |
||||||||
| Premiums receivable |
||||||||
| Unearned premium revenue |
( |
) |
( |
) | ||||
| Loss and loss adjustment expense reserves |
( |
) |
||||||
| Insurance loss recoverable |
( |
) | ||||||
| Loan repurchase commitments |
||||||||
| Accrued interest payable |
||||||||
| Accrued expenses |
||||||||
| Net (gains) losses on financial instruments at fair value and foreign exchange |
( |
) |
( |
) | ||||
| Other net realized (gains) losses |
( |
) | ||||||
| Other operating |
||||||||
| |
|
|
|
|
| |||
| Total adjustments to net income (loss) |
||||||||
| |
|
|
|
|
| |||
| Net cash provided (used) by operating activities |
$ |
$ |
( |
) | ||||
| |
|
|
|
|
| |||
September 30, 2021 |
||||||||||||||||||||||||
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 |
||||||||||||||||||
| Insurance: |
||||||||||||||||||||||||
| Global structured finance: |
||||||||||||||||||||||||
| Mortgage-backed residential |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
| Consumer asset-backed |
||||||||||||||||||||||||
| Corporate asset-backed |
||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total global structured finance |
||||||||||||||||||||||||
| Global public finance |
||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total insurance |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
December 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 |
||||||||||||||||||
| Insurance: |
||||||||||||||||||||||||
| Global structured finance: |
||||||||||||||||||||||||
| Mortgage-backed residential |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
| Consumer asset-backed |
||||||||||||||||||||||||
| Corporate asset-backed |
||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total global structured finance |
||||||||||||||||||||||||
| Global public finance |
||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total insurance |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
As of September 30, 2021 |
As of December 31, 2020 | |||||||||||||||
| 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: |
||||||||||||||||
| Before VIE eliminations (1) |
||||||||||||||||
| VIE eliminations (1) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total international and structured finance insurance |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total |
$ |
$ |
$ |
$ |
||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| In millions |
Changes in Loss and LAE Reserves for the Nine Months Ended September 30, 2021 |
|||||||||||||
| Gross Loss and LAE Reserves as of December 31, 2020 (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, 2021 (1) | |||||||
| $ |
$( |
$ |
$( |
$ |
$ |
$( |
$ | |||||||
| |
|
|
|
|
|
|
| |||||||
Changes in Insurance Loss Recoverable |
||||||||||||||||||||||||||||
for the Nine Months Ended September 30, 2021 |
||||||||||||||||||||||||||||
| In millions |
Gross Reserve as of December 31, 2020 |
Collections for Cases |
Accretion of Recoveries |
Changes in Discount Rates |
Changes in Assumptions (1) |
Other (2) |
Gross Reserve as of September 30, 2021 | |||||||||||||||||||||
| Insurance loss recoverable |
$ |
$ |
( |
) |
$ |
$ |
$ |
( |
) |
$ |
( |
) | $ |
|||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
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) |
$ |
|||||||||||||||||||
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) |
$ |
|||||||||||||||||||
| In millions |
Fair Value as of September 30, 2021 |
Valuation Techniques |
Unobservable Input |
Range (Weighted Average) | ||||||||
| Assets of consolidated VIEs: |
||||||||||||
| Loans receivable at fair value |
$ |
Market prices of similar liabilities adjusted for |
Impact of financial guarantee |
(1) |
||||||||
| Liabilities of consolidated VIEs: |
||||||||||||
| Variable interest entity notes |
Market prices of VIE assets adjusted for financial guarantees provided or market prices of similar liabilities |
Impact of financial guarantee |
(1) |
|||||||||
| (1) - | Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. |
| In millions |
Fair Value as of December 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 value (3) |
||||||||||
| Liabilities of consolidated VIEs: |
||||||||||||
| Variable interest entity notes |
Market prices of VIE assets adjusted for financial guarantees provided |
Impact of financial guarantee | (1) |
|||||||||
| Other derivative liabilities |
Discounted cash flow | Cash flows | $ |
|||||||||
| (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 value reflects an estimate of the amount to be awarded to the Company as part of litigation seeking to enforce its contractual rights. |
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 September 30, 2021 | ||||||||||||
| 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 |
||||||||||||||||
| 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 September 30, 2021 | ||||||||||||
| 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 |
||||||||||||||||
| Other assets: |
||||||||||||||||
| Currency derivatives |
||||||||||||||||
| Other |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total assets |
$ |
$ |
$ |
$ |
||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Liabilities: |
||||||||||||||||
| Medium-term notes |
$ |
$ |
$ |
$ |
||||||||||||
| Derivative liabilities: |
||||||||||||||||
| Insured derivatives: |
||||||||||||||||
| Credit derivatives |
||||||||||||||||
| Non-insured derivatives: |
||||||||||||||||
| Interest rate derivatives |
||||||||||||||||
| Liabilities of consolidated VIEs: |
||||||||||||||||
| Variable interest entity notes |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total liabilities |
$ |
$ |
$ |
$ |
||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
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, 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 |
||||||||||||||||
| 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, 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 |
$ |
$ |
$ |
$ |
||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
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 September 30, 2021 |
Carry Value Balance as of September 30, 2021 | |||||||||||||||
| Liabilities: |
||||||||||||||||||||
| Long-term debt |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
| Medium-term notes |
||||||||||||||||||||
| Investment agreements |
||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Total liabilities |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Financial Guarantees: |
||||||||||||||||||||
| Gross liability (recoverable) |
$ |
$ |
$ |
$ |
$ |
( |
) | |||||||||||||
| Ceded recoverable (liability) |
( |
) | ||||||||||||||||||
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, 2020 |
Carry Value Balance as of December 31, 2020 | |||||||||||||||
| 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 recoverable (liability) |
( |
) | ||||||||||||||||||
| 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 September 30, 2021 |
Change in Unrealized Gains (Losses) for the Period Included in OCI for Assets still held as of September 30, 2021 (1) | ||||||||||||||||||||||||||||||||||||
| Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||
| Assets of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage-backed |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||||||||
| Loans receivable- residential |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||
| 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 September 30, 2021 |
Change in Unrealized (Gains) Losses for the Period Included in OCI for Liabilities still held as of September 30, 2021 (2) | ||||||||||||||||||||||||||||||||||||
| Liabilities: |
||||||||||||||||||||||||||||||||||||||||||||||||
| Medium-term notes |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||||||||||||||||||
| Liabilities of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||
| VIE notes |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| Total liabilities |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| 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 September 30, 2020 |
Change in Unrealized Gains (Losses) for the Period Included in OCI for Assets still held as of September 30, 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 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 September 30, 2020 |
Change in Unrealized (Gains) Losses for the Period Included in OCI for Liabilities still held as of September 30, 2020 (2) | ||||||||||||||||||||||||||||||||||||
| Liabilities: |
||||||||||||||||||||||||||||||||||||||||||||||||
| Medium-term notes |
$ |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) | ||||||||||||||||||||||||||||||||
| Credit derivatives |
||||||||||||||||||||||||||||||||||||||||||||||||
| Other derivatives |
||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||
| VIE notes |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| Total liabilities |
$ |
$ |
$ |
( |
) |
$ |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) | ||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| In millions |
Balance, Beginning of Year |
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 September 30, 2021 |
Change in Unrealized Gains (Losses) for the Period Included in OCI for Assets still held as of September 30, 2021 (1) | ||||||||||||||||||||||||||||||||||||
| Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||
| Assets of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage-backed |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||||||||
| Loans receivable- residential |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||
| Loan repurchase commitments |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||
| Currency derivatives |
||||||||||||||||||||||||||||||||||||||||||||||||
| Other |
||||||||||||||||||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| Total assets |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| In millions |
Balance, Beginning of Year |
Total (Gains) / Losses Included in Earnings |
Unrealized (Gains) / Losses Included in Credit Risk 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 September 30, 2021 |
Change in Unrealized (Gains) Losses for the Period Included in OCI for Liabilities still held as of September 30, 2021 (2) | ||||||||||||||||||||||||||||||||||||
| Liabilities: |
||||||||||||||||||||||||||||||||||||||||||||||||
| Medium-term notes |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||||||||||||||||||
| Other derivatives |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||
| VIE notes |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| Total liabilities |
$ |
$ |
$ |
( |
) |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| (1) - | Reported within the “Unrealized gains (losses) on available-for-sale |
| (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 Year |
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 September 30, 2020 |
Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets still held as of September 30, 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 Year |
Total (Gains) / Losses Included in Earnings |
Unrealized (Gains) / Losses Included 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 September 30, 2020 |
Change in Unrealized (Gains) Losses for the Period Included in OCI for Liabilities still held as of September 30, 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 |
| (2) - | Reported within the “Instrument-specific credit risk of liabilities measured at fair value” on MBIA’s Consolidated Statement of Comprehensive Income/Loss. |
Three Months Ended September 30, 2021 |
Three Months Ended September 30, 2020 | |||||||||||||||
| In millions |
Total Gains (Losses) Included in Earnings |
Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held as of September 30, 2021 |
Total Gains (Losses) Included in Earnings |
Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held as of September 30, 2020 | ||||||||||||
| Revenues: |
||||||||||||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||
| Revenues of consolidated VIEs: |
||||||||||||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange |
( |
) |
( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
Nine Months Ended September 30, 2021 |
Nine Months Ended September 30, 2020 | |||||||||||||||
| In millions |
Total Gains (Losses) Included in Earnings |
Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held as of September 30, 2021 |
Total Gains (Losses) Included in Earnings |
Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held as of September 30, 2020 | ||||||||||||
Revenues: |
||||||||||||||||
| Unrealized gains (losses) on insured derivatives |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange |
( |
) |
( |
) | ||||||||||||
| Revenues of consolidated VIEs: |
||||||||||||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange |
( |
) |
||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total |
$ |
$ |
$ |
$ |
||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||||||
| In millions |
2021 |
2020 |
2021 |
2020 | ||||||||||||
| 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) |
( |
) |
( |
) | ||||||||||||
| Variable interest entity notes (2) |
( |
) |
( |
) |
( |
) | ||||||||||
As of September 30, 2021 |
As of December 31, 2020 | |||||||||||||||||||||||
Contractual Outstanding |
Fair |
Contractual Outstanding |
Fair |
|||||||||||||||||||||
| In millions |
Principal |
Value |
Difference |
Principal |
Value |
Difference | ||||||||||||||||||
| Loans receivable at fair value: |
||||||||||||||||||||||||
| Residential mortgage loans - current |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
| 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 |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
September 30, 2021 | ||||||||||||||||||||
| 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 |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
December 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 |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AFS Securities | ||||||||
| In millions |
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 |
$ |
$ |
||||||
| |
|
|
|
|
| |||
September 30, 2021 | ||||||||||||||||||||||||
Less than 12 Months |
12 Months or Longer |
Total | ||||||||||||||||||||||
| In millions |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized 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 agency |
( |
) |
( |
) | ||||||||||||||||||||
| Residential mortgage-backed non-agency |
||||||||||||||||||||||||
| Commercial mortgage-backed |
||||||||||||||||||||||||
| Asset-backed securities: |
||||||||||||||||||||||||
| Collateralized debt obligations |
( |
) |
( |
) | ||||||||||||||||||||
| Other asset-backed |
||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Total AFS investments |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
December 31, 2020 | ||||||||||||||||||||||||
Less than 12 Months |
12 Months or Longer |
Total | ||||||||||||||||||||||
| In millions |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses | ||||||||||||||||||
| AFS Investments |
||||||||||||||||||||||||
| Fixed-maturity investments: |
||||||||||||||||||||||||
| U.S. Treasury and government agency |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
( |
) | ||||||||||||||
| 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 |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
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 (1) |
|||||||||
| Mortgage-backed |
$ |
$ |
$ |
|||||||||
| Corporate obligations |
( |
|||||||||||
| |
|
|
|
|
|
|||||||
| Total |
$ |
$ |
( |
$ |
||||||||
| |
|
|
|
|
|
|||||||
| (1) - | Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured and are discounted using a discount rate equal to the risk-free rate applicable to the currency and weighted average remaining life of the insurance contract and may differ from the fair value. |
Three Months Ended September 30, 2020 |
||||||||||||||||||||||||
| In millions |
Balance, Beginning of Period |
Current period provision for expected credit losses |
Initial allowance recognized for PCD assets |
Write-Offs |
Recoveries |
Balance as of September 30, 2020 | ||||||||||||||||||
| HTM Investments |
||||||||||||||||||||||||
| Assets of consolidated VIEs: |
||||||||||||||||||||||||
| Corporate obligations |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Total Allowance on HTM investments |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Nine Months Ended September 30, 2020 |
||||||||||||||||||||||||
| In millions |
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 September 30, 2020 | ||||||||||||||||||
| HTM Investments |
||||||||||||||||||||||||
| Assets of consolidated VIEs: |
||||||||||||||||||||||||
| Corporate obligations |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Total Allowance on HTM investments |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| (1) - | Represents transition adjustment upon adoption of ASU 2016-13. |
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||||||
| In millions |
2021 |
2020 |
2021 |
2020 | ||||||||||||
| Proceeds from sales |
$ |
$ |
$ |
$ |
||||||||||||
| Gross realized gains |
$ |
$ |
$ |
$ |
||||||||||||
| Gross realized losses |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||||
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||||||
| In millions |
2021 |
2020 |
2021 |
2020 | ||||||||||||
| Net gains (losses) recognized during the period on equity securities |
$ |
$ |
$ |
$ |
( |
) | ||||||||||
| Less: |
||||||||||||||||
| Net gains (losses) recognized during the period on equity securities sold during the period |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Unrealized gains (losses) recognized during the period on equity securities still held at the reporting date |
$ |
( |
) |
$ |
$ |
$ |
( |
) | ||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| $ in millions |
As of September 30, 2021 | |||||||||||||||||||||||||||||||
Notional Value |
||||||||||||||||||||||||||||||||
| Credit Derivatives Sold |
Weighted Average Remaining Expected Maturity |
AAA |
AA |
A |
BBB |
Below Investment Grade |
Total Notional |
Fair Value Asset (Liability) | ||||||||||||||||||||||||
| Insured swaps |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) | |||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
| Total notional |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total fair value |
$ |
$ |
$ |
( |
) |
$ |
$ |
$ |
( |
) | ||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
| $ in millions |
As of December 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 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 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 |
||||||||||||||
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 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 September 30, | |||||||||
Hedging Instruments |
Location of Gain (Loss) Recognized in Income on Derivative |
2021 |
2020 | |||||||
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 |
$ | $ | ||||||||
In millions |
||||||||||
Derivatives Not Designated as |
Nine Months Ended September 30, | |||||||||
Hedging Instruments |
Location of Gain (Loss) Recognized in Income on Derivative |
2021 |
2020 | |||||||
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 September 30, |
Nine Months Ended September 30, | |||||||||||||||
In millions |
2021 |
2020 |
2021 |
2020 | ||||||||||||
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 had written insurance policies guaranteeing the obligations under CDS. Certain policies covered 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 derivative contracts by the insured counterparty or by the guarantor. The Company no longer insures new CDS contracts except for potential transactions related to the restructuring of existing exposures. |
Three Months Ended September 30, 2021 | ||||||||||||||||||||
| 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 |
( |
) |
||||||||||||||||||
| Net gains (losses) on extinguishment of debt |
||||||||||||||||||||
| 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 expense s |
( |
) |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| 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) - | Primarily represents intercompany service charges and intercompany net investment income and expense. |
| (3) - | Consists principally of intercompany reinsurance balances. |
Three Months Ended September 30, 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 |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
( |
) | |||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| (1) - | Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. |
| (2) - | Primarily represents intercompany service charges and intercompany net investment income and expense. |
Nine Months Ended September 30, 2021 | ||||||||||||||||||||
| 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 |
( |
) |
||||||||||||||||||
| Net gains (losses) on extinguishment of debt |
||||||||||||||||||||
| 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 expense s |
( |
) |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| 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) - | Primarily represents intercompany service charges and intercompany net investment income and expense. |
| (3) - | Consists principally of intercompany reinsurance balances. |
Nine Months Ended September 30, 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 |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
( |
) | |||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| (1) - | Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. |
| (2) - | Primarily represents intercompany service charges and intercompany net investment income and expense. |
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||||||
| In millions except per share amounts |
2021 |
2020 |
2021 |
2020 | ||||||||||||
| Basic earnings per share: |
||||||||||||||||
| Net income (loss) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| Less: undistributed earnings allocated to participating securities |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
| ||||
| 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) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| Less: undistributed earnings allocated to participating securities |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
| ||||
| Net income (loss) available to common shareholders |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
| Diluted weighted average shares |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
| ||||
| 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, 2020 |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||
| Other comprehensive income (loss) before reclassifications |
( |
) |
( |
) |
( |
) | ||||||||||
| Amounts reclassified from AOCI |
( |
) |
||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net period other comprehensive income (loss) |
( |
) |
( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Balance, September 30, 2021 |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| In millions |
Amounts Reclassified from AOCI |
|||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||
| Details about AOCI Components |
2021 |
2020 |
2021 |
2020 |
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 | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|||||||
| 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 September 30, 2021 |
Balance Sheet Location |
||||||
| Right-of-use |
$ |
Other assets |
||||||
| Lease liability |
$ |
|||||||
| Weighted average remaining lease term (years) |
||||||||
| Discount rate used for operating leases |
||||||||
| Total future minimum lease payments |
$ |
|||||||
| • | On January 1, 2021 and July 1, 2021, 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 $277 million. As of September 30, 2021, National had $2.6 billion of debt service outstanding related to Puerto Rico. |
| • | In January of 2021, the reconstitution of the Oversight Board with the reappointment of three existing members and appointment of four new members for three year terms, including the newly elected Governor sitting as an ex officio member, was confirmed. |
| • | On February 22, 2021, National agreed to join a plan support agreement, dated as of February 22, 2021 (the “GO PSA”), among the Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”), certain holders of GO Bonds and PBA Bonds, Assured Guaranty Corp. and Assured Guaranty Municipal Corp, and Syncora Guarantee Inc. in connection with the GO and PBA Title III cases. The GO PSA provides that, among other things, National shall receive a pro rata share of allocable cash, newly issued General Obligation bonds, a contingent value instrument and certain fees. On April 12, 2021, National, Assured Guaranty Corp., Assured Guaranty Municipal Corp. and the Oversight Board reached an agreement in principle settling certain clawback claims and providing for a distribution of cash, bonds and a contingent value instrument to Puerto Rico Highway and Transportation Authority (“HTA”) bondholders subject to completing negotiations on a plan support agreement in respect of an HTA plan of adjustment (the “HTA PSA”). On May 5, 2021, National, Assured Guaranty Corp., Assured Guaranty Municipal Corp. and the Oversight Board entered into the HTA PSA. The Oversight Board has committed to filing a plan of adjustment for HTA by January 31, 2022. The GO PSA contemplates a Commonwealth plan becoming effective on or before December 15, 2021; however there can be no assurance that such plans will become effective, or on the contemplated timeline. |
| • | On July 12, 2021, the Oversight Board filed the Fifth Amended Title III Plan of Adjustment and Disclosure Statement, incorporating certain changes in connection with the disclosure statement objections. The Disclosure Statement hearing for the Fifth Amended Plan began on July 13, 2021, and on July 14, 2021, the Bankruptcy Court (i) continued the hearing until July 27, 2021 for the sole purpose of considering a possible settlement of objections by Ambac Assurance Corporation and Financial Guaranty Insurance Company, and (ii) overruled all other objections to the Disclosure Statement but required the Oversight Board to include certain additional disclosure on financial and legislative risks. The Court also approved confirmation procedures, subject to the approval of the Disclosure Statement at the continued hearing, including commencing the confirmation hearing on November 8, 2021 and concluding on November 23, 2021. On July 27, 2021, the Oversight Board filed the Sixth Amended Plan and Disclosure Statement, and on July 29, 2021 the Court approved the amended Disclosure Statement for distribution to claimholders of record. On July 30, 2021, the Oversight Board filed the Seventh Amended Plan of Adjustment. |
| • | On July 30, 2021, the Oversight Board filed the Seventh Amended Plan of Adjustment. Bondholders were required to choose between commuting their insurance policy with National or having their insurance policy accelerated and receiving a one-time payment of par and accrued interest from National. Approximately 27% of bondholders voted by the deadline of October 18, 2021 to commute their insurance policies with National. The expected commutation and acceleration should occur shortly after Plan effectiveness and will reduce National’s insured Puerto Rico Commonwealth GO (“GO”) exposure to zero. |
| • | In October of 2021, National sold certain bankruptcy claims in a private transaction through the transfer of ownership of $199 million face amount of bonds, representing approximately 16% of the principal amount of the current bond claims in the Puerto Rico Electric Power Authority (“PREPA”) Title III case. The bonds included in this transaction had been fully satisfied by National’s insurance claim payments. This transaction monetizes a portion of National’s salvage asset at a discount to National’s previous carrying value, and reduces potential volatility and ongoing risk of remediation around the PREPA credit. Subsequent to the sale of these PREPA bankruptcy claims, National has approximately $230 million of additional par claims to PREPA that have matured and can be sold. |
| • | On October 25, 2021, Judge Swain held an emergency hearing in light of the failure of the Puerto Rico legislature to agree by Friday, October 22 to enabling legislation authorizing the distributions under the Plan. Judge Swain ruled at this hearing that mediation with the interested parties commence in order to resolve the legislation needed by the Plan. On October 26, 2021, the Governor of Puerto Rico signed the enabling legislation after it was adopted by both houses of the Puerto Rico legislature. On October 28, 2021, the mediation team filed its statement with the court that the interested parties had engaged in good faith best efforts and it reasonably believed that the Confirmation Hearing can be expected to move forward as currently scheduled, commencing November 8, 2021. |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| In millions except per share amounts |
2021 |
2020 |
2021 |
2020 |
||||||||||||
| Net income (loss) |
$ |
(123) |
$ |
(58) |
$ |
(290) |
$ |
(497) |
||||||||
| Net income (loss) per diluted share |
$ |
(2.49) |
$ |
(1.11) |
$ |
(5.87) |
$ |
(7.97) |
||||||||
| Adjusted net income (loss) (1) |
$ |
(76) |
$ |
(18) |
$ |
(155) |
$ |
(137) |
||||||||
| Adjusted net income (loss) per diluted share (1) |
$ |
(1.54) |
$ |
(0.34) |
$ |
(3.14) |
$ |
(2.20) |
||||||||
| Cost of shares repurchased |
$ |
— |
$ |
62 |
$ |
— |
$ |
198 |
||||||||
| (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 (loss) to adjusted net income (loss) and GAAP net income (loss) per diluted share to adjusted net income (loss) per diluted share. |
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||||||
| In millions except for per share amounts |
2021 |
2020 |
2021 |
2020 | ||||||||||||
| Total revenues |
$ |
72 |
$ |
71 |
$ |
162 |
$ |
179 |
||||||||
| Total expenses |
195 |
129 |
452 |
676 |
||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income (loss) before income taxes |
(123 |
) |
(58 |
) |
(290 |
) |
(497 |
) | ||||||||
| Provision (benefit) for income taxes |
- |
- |
- |
- |
||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income (loss) |
$ |
(123 |
) |
$ |
(58 |
) |
$ |
(290 |
) |
$ |
(497 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income (loss) per common share: |
||||||||||||||||
| Basic |
$ |
(2.49 |
) |
$ |
(1.11 |
) |
$ |
(5.87 |
) |
$ |
(7.97 |
) | ||||
| Diluted |
$ |
(2.49 |
) |
$ |
(1.11 |
) |
$ |
(5.87 |
) |
$ |
(7.97 |
) | ||||
| Weighted average number of common shares outstanding: |
||||||||||||||||
| Basic |
49.6 |
52.6 |
49.4 |
62.4 |
||||||||||||
| Diluted |
49.6 |
52.6 |
49.4 |
62.4 |
||||||||||||
| • | Mark-to-market gains (losses) on financial instruments |
| • | Foreign exchange gains (losses) |
| • | Net gains (losses) on sales of investments, impaired securities and extinguishment of debt |
| • | Income taxes |
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||||||
| In millions except share and per share amounts |
2021 |
2020 |
2021 |
2020 | ||||||||||||
| Net income (loss) |
$ |
(123 |
) |
$ |
(58 |
) |
$ |
(290 |
) |
$ |
(497 |
) | ||||
| Less: adjusted net income (loss) adjustments: |
||||||||||||||||
| Income (loss) before income taxes of our international and structured finance insurance segment and eliminations |
(80 |
) |
(59 |
) |
(223 |
) |
(338 |
) | ||||||||
| 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) |
10 |
13 |
39 |
(47 |
) | |||||||||||
| Foreign exchange gains (losses) (1) |
5 |
(16 |
) |
18 |
(16 |
) | ||||||||||
| Net gains (losses) on sales of investments (1) |
2 |
22 |
1 |
41 |
||||||||||||
| Net gains (losses) on extinguishment of debt |
16 |
- |
30 |
- |
||||||||||||
| Adjusted net income adjustment to the (provision) benefit for income tax (2) |
- |
- |
- |
- |
||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Adjusted net income (loss) |
$ |
(76 |
) |
$ |
(18 |
) |
$ |
(155 |
) |
$ |
(137 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Adjusted net income (loss) per diluted common share (3) |
$ |
(1.54 |
) |
$ |
(0.34 |
) |
$ |
(3.14 |
) |
$ |
(2.20 |
) | ||||
| • | 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 September 30, 2021 |
As of December 31, 2020 | ||||||
| Total shareholders’ equity of MBIA Inc. |
$ |
(170 |
) |
$ |
136 |
|||
| Common shares outstanding |
54,406,076 |
53,677,148 |
||||||
| GAAP book value per share |
$ |
(3.12 |
) |
$ |
2.55 |
|||
| Management’s adjustments described above: |
||||||||
| Remove negative book value per share of MBIA Corp. |
(35.00 |
) |
(31.97 |
) | ||||
| Remove net unrealized gains (losses) on available-for-sale securities included in other comprehensive income (loss) |
1.81 |
2.86 |
||||||
| Include net unearned premium revenue in excess of expected losses |
3.71 |
4.29 |
||||||
Three Months Ended September 30, |
Percent Change |
Nine Months Ended September 30, |
Percent Change | |||||||||||||||||||||
| In millions |
2021 |
2020 |
2021 |
2020 | ||||||||||||||||||||
| Net premiums earned |
$ |
13 |
$ |
12 |
8% |
$ |
41 |
$ |
42 |
-2% |
||||||||||||||
| Net investment income |
15 |
15 |
-% |
43 |
55 |
-22% |
||||||||||||||||||
| Fees and reimbursements |
- |
1 |
-100% |
2 |
2 |
-% |
||||||||||||||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange |
1 |
23 |
-96% |
1 |
30 |
-97% |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Total revenues |
29 |
51 |
-43% |
87 |
129 |
-33% |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Losses and loss adjustment |
68 |
14 |
n/m |
135 |
134 |
1% |
||||||||||||||||||
| Amortization of deferred acquisition costs |
2 |
- |
n/m |
9 |
7 |
29% |
||||||||||||||||||
| Operating |
15 |
12 |
25% |
41 |
35 |
17% |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Total expenses |
85 |
26 |
n/m |
185 |
176 |
5% |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Income (loss) before income taxes |
$ |
(56 |
) |
$ |
25 |
n/m |
$ |
(98 |
) |
$ |
(47 |
) |
109% |
|||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| In millions |
September 30, 2021 |
December 31, 2020 |
Percent Change | |||||||||
| Assets: |
||||||||||||
| Insurance loss recoverable |
$ |
1,286 |
$ |
1,220 |
5% |
|||||||
| Reinsurance recoverable on paid and unpaid losses (1) |
3 |
6 |
-50% |
|||||||||
| Liabilities: |
||||||||||||
| Loss and LAE reserves |
386 |
469 |
-18% |
|||||||||
| Insurance loss recoverable - ceded (2) |
53 |
48 |
10% |
|||||||||
| |
|
|
|
|
|
|
|
| ||||
| Net reserve (salvage) |
$ |
(850 |
) |
$ |
(709 |
) |
20% |
|||||
| |
|
|
|
|
|
|
|
| ||||
Three Months Ended September 30, |
Percent Change |
Nine Months Ended September 30, |
Percent Change | |||||||||||||||||||||
| In millions |
2021 |
2020 |
2021 |
2020 | ||||||||||||||||||||
| Gross expenses |
$ |
15 |
$ |
12 |
25% |
$ |
41 |
$ |
35 |
17% |
||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Amortization of deferred acquisition costs |
$ |
2 |
$ |
- |
n/m |
$ |
9 |
$ |
7 |
29% |
||||||||||||||
| Operating |
15 |
12 |
25% |
41 |
35 |
17% |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Total insurance operating expenses |
$ |
17 |
$ |
12 |
42% |
$ |
50 |
$ |
42 |
19% |
||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Gross Par Outstanding |
||||||||||||||||
| In millions |
September 30, 2021 |
December 31, 2020 |
||||||||||||||
| Rating |
Amount |
% |
Amount |
% |
||||||||||||
| AAA |
$ |
1,744 |
4.6% |
$ |
2,080 |
5.0% |
||||||||||
| AA |
15,035 |
39.9% |
16,299 |
39.0% |
||||||||||||
| A |
10,986 |
29.1% |
12,888 |
30.8% |
||||||||||||
| BBB |
6,611 |
17.5% |
7,019 |
16.7% |
||||||||||||
| Below investment grade |
3,339 |
8.9% |
3,570 |
8.5% |
||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total |
$ |
37,715 |
100.0% |
$ |
41,856 |
100.0% |
||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| In millions |
Gross Par Outstanding |
Debt Service Outstanding |
National Internal Rating | |||||||||
| Puerto Rico Electric Power Authority (PREPA) |
$ |
809 |
$ |
1,084 |
d |
|||||||
| Puerto Rico Commonwealth GO |
224 |
295 |
d |
|||||||||
| Puerto Rico Public Buildings Authority (PBA) (1) |
155 |
199 |
d |
|||||||||
| Puerto Rico Highway and Transportation Authority Transportation Revenue (PRHTA) |
523 |
856 |
d |
|||||||||
| Puerto Rico Highway and Transportation Authority—Subordinated Transportation Revenue (PRHTA) |
27 |
34 |
d |
|||||||||
| Puerto Rico Highway and Transportation Authority Highway Revenue (PRHTA) |
39 |
(2) |
58 |
d |
||||||||
| University of Puerto Rico System Revenue |
70 |
91 |
d |
|||||||||
| Inter American University of Puerto Rico Inc. |
19 |
23 |
a3 |
|||||||||
| |
|
|
|
|
|
|||||||
| Total |
$ |
1,866 |
$ |
2,640 |
||||||||
| |
|
|
|
|
|
|||||||
| In millions |
Three Months Ending December 31, 2021 |
2022 |
2023 |
2024 |
2025 |
Thereafter |
Total | |||||||||||||||||||||
| Puerto Rico Electric Power Authority (PREPA) |
$ |
- |
$ |
140 |
$ |
137 |
$ |
137 |
$ |
105 |
$ |
565 |
$ |
1,084 |
||||||||||||||
| Puerto Rico Commonwealth GO |
- |
19 |
14 |
13 |
75 |
174 |
295 |
|||||||||||||||||||||
| Puerto Rico Public Buildings Authority (PBA) |
- |
9 |
27 |
43 |
36 |
84 |
199 |
|||||||||||||||||||||
| Puerto Rico Highway and Transportation Authority Transportation Revenue (PRHTA) |
- |
27 |
36 |
33 |
36 |
724 |
856 |
|||||||||||||||||||||
| Puerto Rico Highway and Transportation Authority—Subordinated Transportation Revenue (PRHTA) |
- |
9 |
1 |
1 |
1 |
22 |
34 |
|||||||||||||||||||||
| Puerto Rico Highway and Transportation Authority Highway Revenue (PRHTA) |
- |
2 |
4 |
2 |
2 |
48 |
58 |
|||||||||||||||||||||
| University of Puerto Rico System Revenue |
- |
7 |
12 |
11 |
16 |
45 |
91 |
|||||||||||||||||||||
| Inter American University of Puerto Rico Inc. |
3 |
3 |
3 |
3 |
3 |
8 |
23 |
|||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Total |
$ |
3 |
$ |
216 |
$ |
234 |
$ |
243 |
$ |
274 |
$ |
1,670 |
$ |
2,640 |
||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Three Months Ended September 30, |
Percent Change |
Nine Months Ended September 30, |
Percent Change | |||||||||||||||||||||
| In millions |
2021 |
2020 |
2021 |
2020 | ||||||||||||||||||||
| Net investment income |
$ |
7 |
$ |
7 |
-% |
$ |
21 |
$ |
23 |
-9% |
||||||||||||||
| Fees |
13 |
13 |
-% |
42 |
43 |
-2% |
||||||||||||||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange |
13 |
(6 |
) |
n/m |
50 |
(62 |
) |
n/m |
||||||||||||||||
| Net gains (losses) on extinguishment of debt |
16 |
- |
n/m |
30 |
- |
n/m |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Total revenues |
49 |
14 |
n/m |
143 |
4 |
n/m |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Operating |
15 |
17 |
-12% |
54 |
52 |
4% |
||||||||||||||||||
| Interest |
19 |
21 |
-10% |
56 |
63 |
-11% |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Total expenses |
34 |
38 |
-11% |
110 |
115 |
-4% |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Income (loss) before income taxes |
$ |
15 |
$ |
(24 |
) |
n/m |
$ |
33 |
$ |
(111 |
) |
-130% |
||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Three Months Ended September 30, |
Percent Change |
Nine Months Ended September 30, |
Percent Change | |||||||||||||||||||||
| In millions |
2021 |
2020 |
2021 |
2020 | ||||||||||||||||||||
| Net premiums earned |
$ |
17 |
$ |
5 |
n/m |
$ |
28 |
$ |
18 |
56% |
||||||||||||||
| Net investment income |
1 |
1 |
-% |
4 |
3 |
33% |
||||||||||||||||||
| Fees and reimbursements |
8 |
2 |
n/m |
15 |
9 |
67% |
||||||||||||||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange |
(3 |
) |
(4 |
) |
-25% |
(9 |
) |
6 |
n/m |
|||||||||||||||
| Revenues of consolidated VIEs: |
||||||||||||||||||||||||
| Net investment income |
- |
5 |
-100% |
- |
18 |
-100% |
||||||||||||||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange |
4 |
(4 |
) |
n/m |
(10 |
) |
34 |
-129% |
||||||||||||||||
| Other net realized gains (losses) |
(9 |
) |
23 |
-139% |
(14 |
) |
37 |
-138% |
||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Total revenues |
18 |
28 |
-36% |
14 |
125 |
-89% |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Losses and loss adjustment |
57 |
34 |
-% |
97 |
293 |
-67% |
||||||||||||||||||
| Amortization of deferred acquisition costs |
3 |
4 |
-25% |
11 |
12 |
-8% |
||||||||||||||||||
| Operating |
5 |
6 |
-17% |
18 |
20 |
-10% |
||||||||||||||||||
| Interest |
26 |
27 |
-4% |
82 |
88 |
-7% |
||||||||||||||||||
| Expenses of consolidated VIEs: |
||||||||||||||||||||||||
| Operating |
2 |
1 |
100% |
5 |
4 |
25% |
||||||||||||||||||
| Interest |
7 |
15 |
-53% |
24 |
47 |
-49% |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Total expenses |
100 |
87 |
15% |
237 |
464 |
-49% |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Income (loss) before income taxes |
$ |
(82 |
) |
$ |
(59 |
) |
-% |
$ |
(223 |
) |
$ |
(339 |
) |
-34% |
||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Three Months Ended September 30, |
Percent Change |
Nine Months Ended September 30, |
Percent Change | |||||||||||||||||||||
| In millions |
2021 |
2020 |
2021 |
2020 | ||||||||||||||||||||
| Net premiums earned: |
||||||||||||||||||||||||
| U.S. |
$ |
- |
$ |
1 |
-100% |
$ |
2 |
$ |
2 |
0% |
||||||||||||||
| Non-U.S. |
17 |
4 |
n/m |
26 |
14 |
86% |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Total net premiums earned |
$ |
17 |
$ |
5 |
n/m |
$ |
28 |
$ |
16 |
75% |
||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| VIEs (eliminated in consolidation) |
$ |
2 |
$ |
1 |
100% |
$ |
3 |
$ |
(2 |
) |
n/m |
|||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| n/m - Percent | change not meaningful. |
| In millions |
September 30, 2021 |
December 31, 2020 |
Percent Change |
|||||||||
| Assets: |
||||||||||||
| Insurance loss recoverable |
$ |
251 |
$ |
457 |
-45% |
|||||||
| Reinsurance recoverable on paid and unpaid losses (1) |
4 |
5 |
-20% |
|||||||||
| Liabilities: |
||||||||||||
| Loss and LAE reserves |
464 |
521 |
-11% |
|||||||||
| |
|
|
|
|
|
|||||||
| Net reserve (salvage) |
$ |
209 |
$ |
59 |
n/m |
|||||||
| |
|
|
|
|
|
|||||||
| (1) – Reported | with in “Other assets” on our consolidated balance sheets. |
| n/m - | Percent change not meaningful. |
Three Months Ended September 30, |
Percent Change |
Nine Months Ended September 30, |
Percent Change | |||||||||||||||||||||
| In millions |
2021 |
2020 |
2021 |
2020 | ||||||||||||||||||||
| Gross expenses |
$ |
6 |
$ |
7 |
-14% |
$ |
19 |
$ |
21 |
-10% |
||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Amortization of deferred acquisition costs |
$ |
3 |
$ |
4 |
-25% |
$ |
11 |
$ |
12 |
-8% |
||||||||||||||
| Operating |
5 |
6 |
-17% |
18 |
20 |
-10% |
||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Total insurance operating expenses |
$ |
8 |
$ |
10 |
-20% |
$ |
29 |
$ |
32 |
-9% |
||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| In millions |
Gross Par Outstanding as of |
|||||||||||
| Collateral Type |
September 30, 2021 |
December 31, 2020 |
Percent Change |
|||||||||
| HELOC Second-lien |
$ |
10 |
$ |
269 |
-96% |
|||||||
| CES Second-lien |
1 |
104 |
-99% |
|||||||||
| Alt-A First-lien (1) |
768 |
825 |
-7% |
|||||||||
| Subprime First-lien |
233 |
285 |
-18% |
|||||||||
| Prime First-lien |
5 |
6 |
-17% |
|||||||||
| |
|
|
|
|
|
|||||||
| Total |
$ |
1,017 |
$ |
1,489 |
-32% |
|||||||
| |
|
|
|
|
|
|||||||
| (1) - Includes | international exposure of $233 million and $237 million as of September 30, 2021 and December 31, 2020, respectively. |
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||||||
| In millions |
2021 |
2020 |
2021 |
2020 | ||||||||||||
| Income (loss) before income taxes |
$ |
(123 |
) |
$ |
(58 |
) |
$ |
(290 |
) |
$ |
(497 |
) | ||||
| Provision (benefit) for income taxes |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
||||||||
| Effective tax rate |
0.0% |
0.0% |
0.0% |
0.0% |
||||||||||||
As of September 30, |
As of December 31, |
|||||||
| In millions |
2021 |
2020 |
||||||
| Policyholders’ surplus |
$ |
1,615 |
$ |
1,526 |
||||
| Contingency reserves |
410 |
445 |
||||||
| |
|
|
|
|||||
| Statutory capital |
2,025 |
1,971 |
||||||
| Unearned premiums |
319 |
355 |
||||||
| Present value of installment premiums (1) |
126 |
129 |
||||||
| |
|
|
|
|||||
| Premium resources (2) |
445 |
484 |
||||||
| Net loss and LAE reserves (1) |
(577) |
(301) |
||||||
| Salvage reserves on paid claims (1) |
1,126 |
961 |
||||||
| |
|
|
|
|||||
| Gross loss and LAE reserves |
549 |
660 |
||||||
| |
|
|
|
|||||
| Total claims-paying resources |
$ |
3,019 |
$ |
3,115 |
||||
| |
|
|
|
|||||
As of September 30, |
As of December 31, |
|||||||
| In millions |
2021 |
2020 |
||||||
| Policyholders’ surplus |
$ |
106 |
$ |
106 |
||||
| Contingency reserves |
37 |
167 |
||||||
| |
|
|
|
|||||
| Statutory capital |
143 |
273 |
||||||
| Unearned premiums |
50 |
79 |
||||||
| Present value of installment premiums (1) |
51 |
73 |
||||||
| |
|
|
|
|||||
| Premium resources (2) |
101 |
152 |
||||||
| Net loss and LAE reserves (1) |
240 |
(478) |
||||||
| Salvage reserves on paid claims (1) |
244 |
(3) |
1,045 |
(4) | ||||
| |
|
|
|
|||||
| Gross loss and LAE reserves |
484 |
567 |
||||||
| |
|
|
|
|||||
| Total claims-paying resources |
$ |
728 |
$ |
992 |
||||
| |
|
|
|
|||||
| • | 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; 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 MZ Funding’s debt obligations; and |
| • | payments of operating expenses. |
Nine Months Ended September 30, |
||||||||||||
| In millions |
2021 |
2020 |
Percent Change | |||||||||
| Statement of cash flow data: |
||||||||||||
| Net cash provided (used) by: |
||||||||||||
| Operating activities |
$ |
359 |
$ |
(388 |
) |
n/m |
||||||
| Investing activities |
37 |
968 |
-96% |
|||||||||
| Financing activities |
(451 |
) |
(552 |
) |
-18% |
|||||||
| Cash and cash equivalents - beginning of period |
167 |
83 |
101% |
|||||||||
| |
|
|
|
|
|
|
|
| ||||
| Cash and cash equivalents - end of period |
$ |
112 |
$ |
111 |
1% |
|||||||
| |
|
|
|
|
|
|
|
| ||||
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) | ||||||||||||
| July |
75 |
$ |
12.03 |
- |
$ |
- |
||||||||||
| August |
83 |
11.83 |
- |
- |
||||||||||||
| September |
107 |
11.03 |
- |
- |
||||||||||||
| |
|
|
|
|
|
|||||||||||
265 |
$ |
11.56 |
- |
$ |
- |
|||||||||||
| (1) | Represents shares repurchased in open market transactions as investments in the Company’s non-qualified deferred compensation plan. |
| *31.1. | Chief Executive Officer - Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| *31.2. | Chief Financial Officer - Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| **32.1. | Chief Executive Officer - Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| **32.2. | Chief Financial Officer - Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| *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: November 3, 2021 | /s/ Anthony McKiernan | |
| Anthony McKiernan | ||
| Chief Financial Officer | ||
| Date: November 3, 2021 | /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 September 30, 2021 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 Company’s 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 Company’s 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 Company’s internal control over financial reporting that occurred during the Company’s third quarter of 2021 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and |
| 5. | The Company’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s 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 Company’s 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 Company’s internal control over financial reporting. |
| /s/ William C. Fallon |
| William C. Fallon |
| Chief Executive Officer |
| November 3, 2021 |
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 September 30, 2021 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 Company’s 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 Company’s 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 Company’s internal control over financial reporting that occurred during the Company’s third quarter of 2021 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and |
| 5. | The Company’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s 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 Company’s 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 Company’s internal control over financial reporting. |
| /s/ Anthony McKiernan |
| Anthony McKiernan |
| Chief Financial Officer |
| November 3, 2021 |
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 September 30, 2021 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 |
| November 3, 2021 |
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 September 30, 2021 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 |
| November 3, 2021 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Preferred stock, par value | $ 1 | $ 1 |
| Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
| Preferred stock, issued | 0 | 0 |
| Preferred stock, outstanding | 0 | 0 |
| Common stock, par value | $ 1 | $ 1 |
| Common stock, authorized shares | 400,000,000 | 400,000,000 |
| Common stock, issued shares | 283,186,115 | 283,186,115 |
| Accumulated other comprehensive income (loss), taxes | $ 8 | $ 8 |
| Treasury stock, shares | 228,780,039 | 229,508,967 |
| Non Variable Interest Entity [Member] | ||
| Fixed-maturity securities held as available-for-sale, amortized cost | $ 1,963 | $ 2,078 |
| Investments pledged as collateral, amortized cost | 4 | 6 |
| Short-term investments, amortized cost | 372 | 281 |
| Premiums receivable (net of allowance for credit losses) | 5 | 5 |
| Medium-term notes, financial instruments carried at fair value | 102 | 110 |
| Variable Interest Entity Primary Beneficiary [Member] | ||
| Variable interest entity notes, financial instruments carried at fair value | $ 292 | $ 350 |
Consolidated Statements Of Operations - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
|---|---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|||
| Premiums earned: | ||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange | $ 11 | $ 13 | $ 42 | $ (26) | ||
| Net gains (losses) on extinguishment of debt | 16 | 30 | ||||
| Total revenues | 72 | 71 | 162 | 179 | ||
| Expenses: | ||||||
| Losses and loss adjustment | 125 | 48 | 232 | 427 | ||
| Interest | 40 | 43 | 122 | 135 | ||
| Total expenses | 195 | 129 | 452 | 676 | ||
| Income (loss) before income taxes | (123) | (58) | (290) | (497) | ||
| Provision (benefit) for income taxes | 0 | 0 | 0 | 0 | ||
| Net income (loss) | $ (123) | $ (58) | $ (290) | $ (497) | ||
| Net income (loss) per common share: | ||||||
| Basic | $ (2.49) | $ (1.11) | $ (5.87) | $ (7.97) | ||
| Diluted | $ (2.49) | $ (1.11) | $ (5.87) | $ (7.97) | ||
| Weighted average number of common shares outstanding: | ||||||
| Basic | [1] | 49,552,796 | 52,588,533 | 49,434,177 | 62,391,826 | |
| Diluted | 49,552,796 | 52,588,533 | 49,434,177 | 62,391,826 | ||
| Non Variable Interest Entity [Member] | ||||||
| Premiums earned: | ||||||
| Scheduled premiums earned | $ 26 | $ 14 | $ 53 | $ 45 | ||
| Refunding premiums earned | 3 | 2 | 10 | 10 | ||
| Premiums earned (net of ceded premiums of $14, $1, $16 and $3) | 29 | 16 | 63 | 55 | ||
| Net investment income | 16 | 16 | 45 | 59 | ||
| Fees and reimbursements | 5 | 2 | 6 | 2 | ||
| Net gains (losses) on financial instruments at fair value and foreign exchange | 11 | 13 | 42 | (26) | ||
| Net gains (losses) on extinguishment of debt | 16 | 0 | 30 | 0 | ||
| Expenses: | ||||||
| Losses and loss adjustment | 125 | 48 | 232 | 427 | ||
| Amortization of deferred acquisition costs | 0 | 2 | 5 | 7 | ||
| Operating | 23 | 21 | 70 | 61 | ||
| Interest | 40 | 43 | 122 | 135 | ||
| Variable Interest Entity Primary Beneficiary [Member] | ||||||
| Premiums earned: | ||||||
| Net investment income | 0 | 5 | 0 | 18 | ||
| Net gains (losses) on financial instruments at fair value and foreign exchange | 4 | (4) | (10) | 34 | ||
| Other net realized gains (losses) | (9) | 23 | (14) | 37 | ||
| Expenses: | ||||||
| Operating | 2 | 1 | 5 | 4 | ||
| Interest | $ 5 | $ 14 | $ 18 | $ 42 | ||
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Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
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| Financial Guarantee Insurance Segment [Member] | ||||
| Ceded premiums earned | $ 14 | $ 1 | $ 16 | $ 3 |
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
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| Statements of Comprehensive Income (Loss) | ||||
| Net income (loss) | $ (123) | $ (58) | $ (290) | $ (497) |
| Available-for-sale securities with no credit losses: | ||||
| Unrealized gains (losses) arising during the period | (10) | 5 | (42) | 93 |
| Reclassification adjustments for (gains) losses included in net income (loss) | (3) | (9) | (11) | (17) |
| Foreign currency translation: | ||||
| Foreign currency translation gains (losses) | 0 | (2) | 3 | (3) |
| Instrument-specific credit risk of liabilities measured at fair value: | ||||
| Unrealized gains (losses) arising during the period | (12) | 5 | (11) | 54 |
| Reclassification adjustments for (gains) losses included in net income (loss) | 12 | 2 | 36 | 5 |
| Total other comprehensive income (loss) | (13) | 1 | (25) | 132 |
| Comprehensive income (loss) | $ (136) | $ (57) | $ (315) | $ (365) |
Business Developments and Risks and Uncertainties |
9 Months Ended |
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Sep. 30, 2021 | |
| 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 subsidiary (“MBIA Corp.”). Refer to “Note 10: Business Segments” for further information about the Company’s operating segments. Business Developments Puerto Rico On January 1, 2021 and July 1, 2021, 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 claim payments in the aggregate of $277 million. As of September 30, 2021, National had $2.6 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 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 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. In October of 2021, National sold certain bankruptcy claims in a private transaction through the transfer of ownership of $199 million face amount of bonds, representing approximately % of the principal amount of the current bond claims in the PREPA Title III case. The bonds included in this transaction had been fully satisfied by National’s insurance claim payments. This transaction monetizes a portion of National’s salvage asset at a discount to National’s previous carrying value, and reduces potential volatility and ongoing risk of remediation around the PREPA credit. Subsequent to the sale of these PREPA bankruptcy claims, National has approximately $230 million of additional par claims to PREPA that have matured and can be sold. GO and HTA On February 22, 2021, National agreed to join a plan support agreement, dated as of February 22, 2021 (the “GO PSA”), among the Oversight Board, certain holders of Puerto Rico Commonwealth GO (“GO”) Bonds and Puerto Rico Public Buildings Authority (“PBA”) Bonds, Assured Guaranty Corp. and Assured Guaranty Municipal Corp, and Syncora Guarantee Inc. in connection with the GO and PBA Title III cases. The GO PSA provides that, among other things, National shall receive a pro rata share of allocable cash, newly issued General Obligation bonds, a contingent value instrument (“CVI”) and certain fees. The GO PSA contemplates a Commonwealth plan becoming effective on or before December 15, 2021; however there can be no assurance that such plans will become effective, or on the contemplated timeline. Pursuant to the GO PSA, the Oversight Board and National jointly obtained the entry of an order in the Title III court staying National’s participation in actions related to the clawback of HTA funds from the Commonwealth, and National shall take no further action with respect to those proceedings subject to the Commonwealth plan becoming effective. On April 12, 2021, National, Assured Guaranty Corp., Assured Guaranty Municipal Corp. and the Oversight Board reached an agreement in principle settling certain clawback claims and providing for a distribution of cash, bonds and a contingent value instrument to bondholders in the Puerto Rico Highway and Transportation Authority (“HTA”) Title III case subject to completing negotiations on a plan support agreement in respect of an HTA plan of adjustment (the “HTA PSA”). On May 5, 2021, National, Assured Guaranty Corp., Assured Guaranty Municipal Corp. and the Oversight Board entered into the HTA PSA. The Oversight Board has committed to filing a plan of adjustment for HTA by January 31, 2022. On July 12, 2021, the Oversight Board filed the Fifth Amended Title III Plan of Adjustment and Disclosure Statement, incorporating certain changes and agreements in connection with certain disclosure statement objections. The Disclosure Statement hearing for the Fifth Amended Plan began on July 13, 2021, and on July 14, 2021, the Bankruptcy Court (i) continued the hearing until July 27, 2021 for the sole purpose of considering a possible settlement of objections by Ambac Assurance Corporation and Financial Guaranty Insurance Company, and (ii) overruled all other objections to the Disclosure Statement but required the Oversight Board to include certain additional disclosure on financial and legislative risks. The Court also approved confirmation procedures, subject to the approval of the Disclosure Statement at the continued hearing, including commencing the confirmation hearing on November 8, 2021 and concluding on November 23, 2021. On July 27, 2021, the Oversight Board filed the Sixth Amended Plan and Disclosure Statement, and on July 29, 2021 the Court approved the amended Disclosure Statement for distribution to claimholders of record. On July 30, 2021, the Oversight Board filed the Seventh Amended Plan of Adjustment. On October 25, 2021, Judge Swain held an emergency hearing in light of the failure of the Puerto Rico legislature to agree by Friday, October 22 to enabling legislation authorizing the distributions under the Plan. Judge Swain ruled at this hearing that mediation with the interested parties commence in order to resolve the legislation needed by the Plan. On October 26, 2021, the Governor of Puerto Rico signed the enabling legislation after it was adopted by both houses of the Puerto Rico legislature. On October 28, 2021, the mediation team filed its statement with the court that the interested parties had engaged in good faith best efforts and it reasonably believed that the Confirmation Hearing can be expected to move forward as currently scheduled, commencing November 8, 2021. Based on the Seventh Amended Plan of Adjustment, bondholders were required to choose between commuting their insurance policy with National or having their insurance policy accelerated and receiving a one-time payment of par and accrued interest from National. Approximately 27% of bondholders voted by the deadline of October 18, 2021 to commute their insurance policies with National. The expected commutation and acceleration should occur shortly after Plan approval and will reduce National’s insured GO exposure to zero. Refer to “Note 5: Loss and Loss Adjustment Expense Reserves” for a further discussion of the Company’s GO recoveries. Credit Suisse In January of 2021, the Court overseeing MBIA Corp.’s litigation against Credit Suisse Securities (USA) LLC and DLJ Mortgage Capital, Inc. (collectively, “Credit Suisse”), involving the ineligibility of a majority of the loans in the HEMT 2007-2 RMBS transaction sponsored by Credit Suisse, issued an order declaring that Credit Suisse was liable to MBIA for approximately $604 million in damages. In February of 2021, the parties to the litigation entered into a settlement agreement pursuant to which Credit Suisse paid MBIA Corp. $600 million, and the Court entered an order dismissing the case. Refer to “Note 5: Loss and Loss Adjustment Expense Reserves” for a discussion of the Company’s Credit Suisse put-back claims. Debt Securities As of September 30, 2021, MBIA Corp. repaid in full the outstanding amount of the MZ Funding LLC (“MZ Funding”) financing facility’s 12% senior notes maturing on January 20, 2022 (“Refinanced Facility”). During the nine months ended September 30, 2021, the Company repurchased $106 million par value outstanding of GFL medium-term notes (“MTNs”) with maturity dates between 2024 and 2036 issued by the corporate segment at a weighted average cost of approximately 72% of par value. 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 The number of COVID-19 cases, hospitalizations and deaths continues to decrease. Nevertheless, the current and longer-term impacts of the virus, including those caused by any new strains, continues to remain uncertain. In addition, the attendant governmental policy and social responses, and economic and financial consequences, continue to be the subject of considerable attention. Insured portfolios Any adverse developments on macroeconomic factors resulting from 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. Any impact of the pandemic on the Company’s financial guarantee credits would 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. The duration of the pandemic, the efficacy of vaccines, spending of federal aid to state and local governments, and the breadth and speed of economic recovery will determine the economic stress, if any, incurred by the credits in the Company’s insured portfolios. Further, any economic impact that may result from the pandemic and its aftermath could present additional but yet unknown credit risks to the Company’s insured portfolios. Federal legislation passed to combat the economic impact of the pandemic has been significant, including the $2.7 trillion Coronavirus Aid, Relief, and Economic Security (“CARES”) Act in 2020, which included significant aid to offset COVID-19 related expenditures of public sector issuers including states, territories, healthcare, higher education and transportation issuers. Also, the Federal Reserve has shown willingness to promote the stability of the financial system that is directly supportive of the municipal market, such as the Municipal Lending Facility created in 2020. In March of 2021, Congress passed the American Rescue Plan Act of 2021, a $1.9 trillion economic stimulus package designed to further stabilize the financial system. This law allocated nearly $350 billion of aid to state and local governments to replace lost revenues resulting from the pandemic with relatively few restrictions on use of said funds. While the unprecedented amount of federal aid directed to state and local municipalities has blunted the impact of the pandemic, not all of the issuers of the obligations in National’s insured portfolio are eligible to receive it. Further, if issuers 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 expected recoveries on certain RMBS transactions, and the forbearance options that mortgage borrowers who were facing financial difficulties took advantage of under the CARES Act 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 challenging to predict the full long-term 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 or other factors may 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. Additionally, 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. 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, taking steps to maximize the collection of recoveries and by reducing and mitigating 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”), but 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. In particular, as the monetization process unfolds and new information concerning the financial condition of the portfolio companies which comprise a significant portion of the Zohar Assets is disclosed, the Company may revise its expectations for recoveries. For example, at a June 3, 2020 hearing, counsel for one of the portfolio companies announced that the monetization process for that company would be delayed as a consequence of having to investigate issues relating to the integrity of the company’s financial statements. MBIA Corp. also projects to collect excess spread from insured RMBS; however, the amount and timing of these 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 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, 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 from National, 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. |
Significant Accounting Policies |
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Sep. 30, 2021 | |
| Text Block [Abstract] | |
| Significant Accounting Policies | Note 2: Significant Accounting Policies The Company has disclosed its significant accounting policies in “Note 2: Significant Accounting Policies” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The following significant accounting policies provide an update to those included in the Company’s Annual Report on Form 10-K. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and, accordingly, do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual periods. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2020. The accompanying consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board (U.S.), but in the opinion of management such financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company’s consolidated financial position and results of operations. All material intercompany balances and transactions have been eliminated. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As additional information becomes available or actual amounts become determinable, the recorded estimates are revised and reflected in operating results. The results of operations for the three and nine months ended September 30, 2021 may not be indicative of the results that may be expected for the year ending December 31, 2021. The December 31, 2020 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP for annual periods. |
Recent Accounting Pronouncements |
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| Text Block [Abstract] | |
| Recent Accounting Pronouncements | Note 3: Recent Accounting Pronouncements Recently Adopted Accounting Standards The Company has not adopted any new accounting pronouncements that had a material impact on its consolidated financial statements. Recent Accounting Developments Reference Rate Reform (Topic 848): Scope (ASU 2021-01) and Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04) In January of 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-01, “Reference Rate Reform – Scope,” which clarified the scope and application of the original guidance, ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” issued in March of 2020. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships that reference London Interbank Offered Rate (“LIBOR”) or other rates that are expected to be discontinued, subject to meeting certain criteria. Both ASU 2020-04 and ASU 2021-01 were effective upon issuance, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is evaluating the impact of adopting ASU 2021-01 and 2020-04. |
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| Variable Interest Entities | Note 4: Variable Interest Entities Primarily through MBIA’s international and structured finance insurance segment, the Company provides credit protection to issuers of obligations that may involve issuer-sponsored special purpose entities (“SPEs”). An SPE may be considered a variable interest entity (“VIE”) to the extent the SPE’s total equity at risk is not sufficient to permit the SPE to finance its activities without additional subordinated financial support or its equity investors lack any one of the following characteristics: (i) the power to direct the activities of the SPE that most significantly impact the entity’s economic performance or (ii) the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the entity. A holder of a variable interest or interests in a VIE is required to assess whether it has a controlling financial interest, and thus is required to consolidate the entity as primary beneficiary. An assessment of a controlling financial interest identifies the primary beneficiary as the variable interest holder that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. An ongoing reassessment of controlling financial interest is required to be performed based on any substantive changes in facts and circumstances involving the VIE and its variable interests. The Company evaluates issuer-sponsored SPEs initially to determine if an entity is a VIE, and is required to reconsider its initial determination if certain events occur. For all entities determined to be VIEs, MBIA performs an ongoing reassessment to determine whether its guarantee to provide credit protection on obligations issued by VIEs provides the Company with a controlling financial interest. Based on its ongoing reassessment of controlling financial interest, the Company determines whether a VIE is required to be consolidated or deconsolidated. The Company makes its determination for consolidation based on a qualitative assessment of the purpose and design of a VIE, the terms and characteristics of variable interests of an entity, and the risks a VIE is designed to create and pass through to holders of variable interests. The Company generally provides credit protection on obligations issued by VIEs, and holds certain contractual rights according to the purpose and design of a VIE. The Company may have the ability to direct certain activities of a VIE depending on facts and circumstances, including the occurrence of certain contingent events, and these activities may be considered the activities of a VIE that most significantly impact the entity’s economic performance. The Company generally considers its guarantee of principal and interest payments of insured obligations, given nonperformance by a VIE, to be an obligation to absorb losses of the entity that could potentially be significant to the VIE. At the time the Company determines it has the ability to direct the activities of a VIE that most significantly impact the economic performance of the entity based on facts and circumstances, MBIA is deemed to have a controlling financial interest in the VIE and is required to consolidate the entity as primary beneficiary. The Company performs an ongoing reassessment of controlling financial interest that may result in consolidation or deconsolidation of any VIE. Consolidated VIEs The carrying amounts of assets and liabilities of consolidated VIEs were $168 million and $292 million, respectively, as of September 30, 2021 and $830 million and $623 million, respectively, as of December 31, 2020. The carrying amounts of assets and liabilities are presented separately in “Assets of consolidated variable interest entities” and “Liabilities of consolidated variable interest entities” on the Company’s consolidated balance sheets. VIEs are consolidated or deconsolidated based on an ongoing reassessment of controlling financial interest, when events occur or circumstances arise, and whether the ability to exercise rights that constitute power to direct activities of any VIEs are present according to the design and characteristics of these entities. In the third and second quarters of 2021, the Company deconsolidated one and two structured finance VIEs, respectively, due to the prepayment of the outstanding notes of the VIEs and recorded losses of $10 million and $5 million, respectively, primarily due to credit losses in accumulated other comprehensive income (“AOCI”) that were released to earnings. In the first quarter of 2021, there was no consolidation or deconsolidation of VIEs by the Company. In the first quarter of 2020, the Company deconsolidated one structured finance VIE due to the prepayment of the outstanding notes of the VIE. Also in the first quarter of 2020, the Puerto Rico Sales Tax Financing Corporation (“COFINA”) Trusts established in 2019 (the “Trusts”) were legally dissolved and the seven related VIEs were deconsolidated. There was no impact on the Company’s consolidated statement of operations for the first quarter of 2020 due to the deconsolidation of these VIEs. Consolidation and deconsolidation gains and losses, if any, are recorded within “Other net realized gains (losses)” under “Revenues of consolidated variable interest entities” on the Company’s consolidated statements of operations. Holders of insured obligations of issuer-sponsored VIEs do not have recourse to the general assets of the Company. In the event of nonpayment of an insured obligation issued by a consolidated VIE, the Company is obligated to pay principal and interest, when due, on the respective insured obligation only. The Company’s exposure to consolidated VIEs is limited to the credit protection provided on insured obligations and any additional variable interests held by the Company. Nonconsolidated VIEs The following tables present the Company’s maximum exposure to loss for nonconsolidated VIEs and carrying values of the assets and liabilities for its interests in these VIEs in its insurance operations as of September 30, 2021 and December 31, 2020. The maximum exposure to loss as a result of MBIA’s variable interests in VIEs is represented by insurance in force. Insurance in force is the maximum future payments of principal and interest which may be required under commitments to make payments on insured obligations issued by nonconsolidated VIEs. The Company has aggregated nonconsolidated VIEs based on the underlying credit exposure of the insured obligation. The nature of the Company’s variable interests in nonconsolidated VIEs is related to financial guarantees and any investments in obligations issued by nonconsolidated VIEs.
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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, 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. On April 12, 2021, National, other monoline insurers and the Oversight Board reached an agreement in principle settling certain HTA clawback claims in the Commonwealth Title III case and providing for a distribution to HTA holders of cash, bonds and a contingent value instrument and on February 22, 2021, National agreed to join the GO PSA. 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 Risks 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 to default. As part of the GO PSA, National will receive certain consideration to include cash, bonds and a CVI. The ultimate recovery value to National will depend on the value of these assets once issued and over time. Prior to the third quarter of 2021, National’s estimate of GO recoveries was based on expected long-term cash flows and sale prices at future dates of the consideration it expects to receive from the GO PSA discounted at risk free rates used for GAAP loss reserving. In the third quarter of 2021, National updated its loss reserve scenarios, which include a probability weighting of potential outcomes, to include certain assumptions about recovery valuation on the date it expects to receive the cash, bonds and the CVI. Also in the third quarter of 2021, National modified its PREPA scenario assumptions to reflect the market insight gained from the anticipated sale of a portion of the recoverable on PREPA bankruptcy claims that had been fully satisfied by National’s insurance claim payments. The net effect of these changes in assumptions resulted in additional incurred losses for the third quarter of 2021. 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 financial guarantee VIEs that are eliminated in consolidation. In addition, COVID-19 may present additional but unknown credit risks to MBIA Corp.’s insured portfolio. Refer to “Note 1: Business Developments and Risks 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 September 30, 2021 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 potential 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. Where applicable, the Company factors in termination scenarios when clean up calls are imminent. 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’s RMBS recoveries primarily relate to excess spread that is generated from the trust structures in the insured transactions. Previously, recoveries also included 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”); however the Company has settled all of its put-back claims relating to the inclusion of ineligible loans in securitizations it insured. See “Second-lien Put-Back Claims Related to Ineligible Loans” below. 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 During the first quarter of 2021, the Company entered into a settlement agreement with Credit Suisse related to its put-back claims. In the litigation brought to pursue these claims, Credit Suisse had challenged the Company’s assessment of the ineligibility of individual mortgage loans. In November of 2020, following a trial and post-trial briefing, the Court overseeing the litigation issued a decision declaring that MBIA Corp. had succeeded in establishing that a majority of the loans in the transaction were ineligible. In January of 2021, the Court issued an order declaring that Credit Suisse was liable to MBIA for approximately $604 million in damages. In February of 2021, the parties to the litigation entered into a settlement agreement pursuant to which Credit Suisse paid MBIA Corp. $600 million, and the Court entered an order dismissing the case. Refer to “Note 13: Commitments and Contingencies” for further information about the Company’s litigation with Credit Suisse. As of December 31, 2020, the Company consolidated 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 fair value measurement. CDO Reserves and Recoveries The Company also has loss and 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, commercial mortgage-backed securities (“CMBS”), ABS and CDO collateral). 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”). 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 monetization procedures agreed to in the Zohar Funds Bankruptcy Cases 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. In particular, as the monetization process unfolds and new information concerning the financial condition of the portfolio companies is disclosed, the Company may revise its expectations for recoveries. For example, at a June 3, 2020 hearing, counsel for one of the portfolio companies announced that the monetization process for that company would be delayed as a consequence of having to investigate issues relating to the integrity of the company’s financial statements. Failure to recover a substantial portion of the payments made on Zohar I and Zohar II 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 September 30, 2021 and December 31, 2020 are presented in the following table:
(1) - Includes loan repurchase commitments of $604 million as of December 31, 2020. (2) - Amounts are net of expected recoveries. Changes in Loss and LAE Reserves The following table presents changes in the Company’s loss and LAE reserves for the nine months ended September 30, 2021. Changes in loss and LAE reserves, with the exception of loss and LAE payments and the impact of the revaluation of loss reserves denominated in amounts other than U.S. dollars, are recorded in “Losses and loss adjustment” expenses in the Company’s consolidated statements of operations. As of September 30, 2021, the weighted average risk-free rate used to discount the Company’s loss reserves (claim liability) was 1.52%. LAE reserves are generally expected to be settled within a one-year period and are not discounted. As of September 30, 2021 and December 31, 2020, the Company’s gross loss and LAE reserves included $33 million and $30 million, respectively, related to LAE.
(1) - Includes changes in amount and timing of estimated payments and recoveries. For the nine months ended September 30, 2021, the Company’s loss and LAE reserves declined primarily due to payments made on certain Puerto Rico exposures and a decrease in expected payments related to certain insured first-lien RMBS transactions as a result of an increase in risk-free rates used to present value loss reserves during the period. This decline was partially offset by unfavorable changes in future recoveries of unpaid losses due to a change in assumptions as well as the increase in risk-free discount rates 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 nine months ended September 30, 2021. Changes in insurance loss recoverable with the exception of collections, are recorded in “Losses and loss adjustment” expenses in the Company’s consolidated statements of operations.
(1) - Includes amounts related to paid claims. (2) - Primarily changes in amount and timing of collections and LAE. The decrease in the Company’s insurance loss recoverable reflected in the preceding table was primarily due to a decrease in expected recovery assumptions on CDOs, the collection of salvage related to certain CDO transactions and the collection of excess spread related to the termination of certain second-lien RMBS trusts. This decrease was partially offset by the amount of claim payments made during 2021 that the Company expects to recover on certain Puerto Rico credits. Loss and LAE Activity For the three months ended September 30, 2021, loss and LAE incurred primarily related to changes in loss scenario assumptions on the Puerto Rico GO and PREPA credits, as well as a decline in expected salvage collections related to CDOs. In the third quarter of 2021, National modified its GO scenario assumptions to incorporate the final terms of the Plan of Adjustment. This includes a commutation of 27% of National’s outstanding insured bonds and an acceleration of National’s remaining insured bonds. In addition, National updated its GO loss reserve scenarios to include certain assumptions about recovery valuation on the date it expects to receive cash, bonds and a CVI. These assumption changes decreased expected GO recoveries. Also in the third quarter of 2021, National modified its PREPA scenario assumptions to reflect the market insight gained from the anticipated sale of a portion of the recoverable on PREPA bankruptcy claims that had been fully satisfied by National’s insurance claim payments, which decreased its expected PREPA recoveries, partially offset by additional expected recoveries under the PREPA RSA. For the nine months ended September 30, 2021, loss and LAE incurred primarily related to the changes in loss reserve scenario assumptions on the PREPA credit discussed above, and reflects changes in loss reserve scenario assumptions on HTA exposure to reflect the most recent Plan of Adjustment. In addition, an increase in the risk-free rates used to discount the value of long-dated future recoveries on Puerto Rico exposures contributed to loss and LAE incurred. Loss and LAE incurred also reflects a decrease in expected salvage collections related to CDOs. This was partially offset primarily by a decrease in the present value of loss reserves related to first-lien RMBS transactions as a result of the increase in risk-free discount rates. For the three months ended September 30, 2020, loss and LAE incurred primarily related to a decrease in expected salvage collections related to CDOs, an increase in incurred losses on RMBS transactions and an increase in actual and expected payments on certain Puerto Rico credits. For the nine months ended September 30, 2020, loss and LAE incurred primarily related to a decrease in expected salvage collections related to CDOs, an increase in actual and expected payments on certain Puerto Rico credits and an increase in incurred losses on first-lien RMBS transactions. Overall, risk-free rates used to discount loss reserve and recovery cash flows declined during the nine months ended September 30, 2020. The decline in risk-free rates used to present value recoveries on certain Puerto Rico credits resulted in a loss and LAE benefit for the period. This was partially offset by loss and LAE incurred from a decline in risk-free rates used to present value future claim payments across the Company’s insured portfolio. 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 September 30, 2021 and 2020, gross LAE related to remediating insured obligations were $4 million and $8 million, respectively. For the nine months ended September 30, 2021 and 2020, gross LAE related to remediating insured obligations were $17 million and $25 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 September 30, 2021:
(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, 2020:
(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. |
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| Fair Value Measurement | Note 6: Fair Value of Financial Instruments Fair Value Measurement Financial Assets and Liabilities Financial assets held by the Company primarily consist of investments in debt securities, loans receivables at fair value and loan repurchase commitments held by consolidated VIEs. The Company’s remaining loan repurchase commitments were settled in the first quarter of 2021. Financial liabilities, excluding derivative liabilities, issued by the Company primarily consist of debt issued for general corporate purposes within its corporate segment, MTNs, investment agreements and debt issued by consolidated VIEs. The Company’s derivative liabilities are primarily interest rate swaps and insured credit derivatives. Valuation Techniques Valuation techniques for financial instruments measured at fair value are described below. Fixed-Maturity Securities Held as Available-For-Sale, These investments include investments in U.S. Treasury and government agencies, state and municipal bonds, foreign governments, corporate obligations, MBS, ABS, money market securities, and perpetual debt and equity securities. Substantially all of these investments are valued based on recently executed transaction prices or quoted market prices by independent third parties, including pricing services and brokers. When quoted market prices are not available, fair value is generally determined using quoted prices of similar investments or a valuation model based on observable and unobservable inputs. Inputs vary depending on the type of investment. Observable inputs include contractual cash flows, interest rate yield curves, credit default swap (“CDS”) spreads, prepayment and volatility scores, diversity scores, cross-currency basis index spreads, and credit spreads for structures similar to the financial instrument in terms of issuer, maturity and seniority. Unobservable inputs include cash flow projections and the value of any credit enhancement. Investments based on quoted market prices of identical investments in active markets are classified as Level 1 of the fair value hierarchy. Level 1 investments generally consist of U.S. Treasury and government agency, money market securities and perpetual debt and equity securities. Quoted market prices of investments in less active markets, as well as investments which are valued based on other than quoted prices for which the inputs are observable, such as interest rate yield curves, are categorized in Level 2 of the fair value hierarchy. Investments that contain significant inputs that are not observable are categorized as Level 3. Cash and Cash Equivalents The carrying amounts of cash and cash equivalents approximate fair value due to the short-term nature and credit worthiness of these instruments and are categorized in Level 1 of the fair value hierarchy. Loans Receivable at Fair Value Loans receivable at fair value are comprised of loans and other instruments held by consolidated VIEs, consisting of residential mortgage loans and are categorized in Level 3 of the fair value hierarchy. Fair values of residential mortgage loans are determined using quoted prices for MBS issued by the respective VIE and adjusted for the fair values of the financial guarantees provided by MBIA Corp. on the related MBS. The fair values of the financial guarantees consider expected claim payments, net of recoveries, under MBIA Corp.’s policies. Loan Repurchase Commitments Loan repurchase commitments are obligations owed by the sellers/servicers of mortgage loans to MBIA as reimbursement of paid claims. Loan repurchase commitments were assets of the consolidated VIEs. These assets represented the rights of MBIA against the sellers/servicers for breaches of representations and warranties that the securitized residential mortgage loans sold to the trust to comply with stated underwriting guidelines and for the sellers/servicers to cure, replace, or repurchase mortgage loans. Fair value measurements of loan repurchase commitments represented the amounts owed by the sellers/servicers to MBIA as reimbursement of paid claims and contractual interest. Loan repurchase commitments were not securities and no quoted prices or comparable market transaction information were observable or available. Fair values of loan repurchase commitments were determined using discounted cash flow techniques and were categorized in Level 3 of the fair value hierarchy. The Company’s loan repurchase commitments were settled in the first quarter of 2021. Other Assets A VIE consolidated by the Company has entered into a derivative instrument consisting of a cross currency swap. The cross currency swap is entered into to manage the variability in cash flows resulting from fluctuations in foreign currency rates. The fair value of the VIE derivative is determined based on inputs from unobservable cash flows projection of the derivative, discounted using observable discount rates. As the significant inputs are unobservable, the derivative contract is categorized in Level 3 of the fair value hierarchy. Other assets also include receivables representing the right to receive reimbursement payments on claim payments expected to be made on certain insured VIE liabilities due to risk mitigating transactions with third parties executed to effectively defease, or, in-substance commute the Company’s exposure on its financial guarantee policies. The right to receive reimbursement payments is based on the value of the Company’s financial guarantee determined using the cash flow model. The fair value of the financial guarantee primarily contains unobservable inputs and is categorized in Level 3 of the fair value hierarchy. Medium-term Notes at Fair Value The Company has elected to measure certain MTNs at fair value on a recurring basis. The fair values of certain MTNs are based on quoted market prices provided by third-party sources, where available. When quoted market prices are not available, the Company applies a matrix pricing grid to determine fair value based on the quoted market prices received for similar instruments and considering the MTNs’ stated maturity and interest rate. Nonperformance risk is included in the quoted market prices and the matrix pricing grid. MTNs are categorized in Level 3 of the fair value hierarchy and do not include accrued interest. Variable Interest Entity Notes The fair values of VIE notes are determined based on recently executed transaction prices or quoted prices where observable. When position-specific quoted prices are not observable, fair values are based on quoted prices of similar securities. Fair values based on quoted prices of similar securities may be adjusted for factors unique to the securities, including any credit enhancement. Observable inputs include interest rate yield curves and bond spreads of similar securities. Unobservable inputs include the value of any credit enhancement. VIE notes are categorized in Level 2 or Level 3 of the fair value hierarchy based on the lowest level input that is significant to the fair value measurement in its entirety. Derivatives The corporate segment has entered into derivative transactions primarily consisting of interest rate swaps. Fair values of over-the-counter Derivatives—Insurance The derivative contracts insured by the Company cannot be legally traded and generally do not have observable market prices. The Company determines the fair values of certain insured credit derivatives using valuation models based on observable inputs and considering nonperformance risk of the Company. These insured credit derivatives are categorized in Level 2 of the fair value hierarchy. Derivatives—Other The Company also had other derivative liabilities as a result of a commutation that occurred in 2014. The fair value of these derivative liabilities were determined using a discounted cash flow model. Key inputs included unobservable cash flows projected over the expected term of the derivative. As the significant inputs were unobservable, the derivative contract was categorized in Level 3 of the fair value hierarchy. These derivative liabilities were settled in the first quarter of 2021. Significant Unobservable Inputs 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 September 30, 2021 and December 31, 2020:
Sensitivity of Significant Unobservable Inputs The significant unobservable input used in the fair value measurement of the Company’s residential loans receivable at fair value of consolidated VIEs is the impact of the financial guarantee. The fair value of residential loans receivable is calculated by subtracting the value of the financial guarantee from the quoted price of VIE liabilities or the market value of similar instruments to that of the VIE liabilities. The value of a financial guarantee is estimated by the Company as the present value of expected cash payments, net of recoveries, under the policy. If there had been a lower expected cash flow on the underlying loans receivable of the VIE, the value of the financial guarantee provided by the Company under the insurance policy would have been higher. This would have resulted in a lower fair value of the residential loans receivable in relation to the obligations of the VIE. As of December 31, 2020, the significant unobservable input used in the fair value measurement of the Company’s loan repurchase commitments of consolidated VIEs was a recovery value, which reflected an estimate of the amount to be awarded to the Company as part of litigation seeking to enforce its contractual rights. The Company’s remaining loan repurchase commitments were settled in the first quarter of 2021 for $600 million. The significant unobservable input used in the fair value measurement of the Company’s VIE notes of consolidated VIEs is the impact of the financial guarantee. The fair value of VIE notes is calculated by adding the value of the financial guarantee to the market value of VIE assets. When the VIE note is backed by RMBS, the fair value of the VIE liability is calculated by applying the market value of similar instruments to that of the VIE liabilities. The value of a financial guarantee is estimated by the Company as the present value of expected cash payments under the policy. If the value of the guarantee provided by the Company to the obligations issued by the VIE had increased, the credit support would have added value to the liabilities of the VIE. This would have resulted in an increased fair value of the liabilities of the VIE. As of December 31, 2020, the significant unobservable input used in the fair value measurement of MBIA Corp.’s other derivatives, which were valued using a discounted cash flow model, was the estimates of future cash flows discounted using market rates and CDS spreads. This derivative contract was settled in the first quarter of 2021 for an amount consistent with the reported amount as of December 31, 2020. Fair Value Measurements 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 September 30 , 2021 and December 31 , 2020 :
Level 3 assets at fair value as of September 30, 2021 and December 31, 2020 represented approximately 4% and 20%, respectively, of total assets measured at fair value. Level 3 liabilities at fair value as of September 30, 2021 and December 31, 2020 represented approximately 75% and 68%, respectively, of total liabilities measured at fair value. The following tables present the fair values and carrying values of the Company’s assets and liabilities that are disclosed at fair value but not reported at fair value on the Company’s consolidated balance sheets as of September 30, 2021 and December 31, 2020. The majority of the financial assets and liabilities that the Company requires fair value reporting or disclosures are valued based on the estimated value of the underlying collateral, the Company’s or a third-party’s estimate of discounted cash flow model estimates, or quoted market values for similar products.
The following tables present information about changes in Level 3 assets (including short-term investments) and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2021 and 2020: Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2021
(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. Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2020
(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. For the three months ended September 30, 2021, sales included the impact of the deconsolidation of VIEs. Refer to “Note 4: Variable Interest Entities” for additional information about the deconsolidation of VIEs. For the three months ended September 30, 2021, transfers into Level 3 and out of Level 2 were principally related to CMBS, where inputs, which are significant to their valuation, became unobservable during the quarter. These inputs included spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. There were no transfers out of Level 3. For the three months ended September 30, 2020, there were no transfers into or out of Level 3. The following tables present information about changes in Level 3 assets (including short-term investments) and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2021 and 2020: Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2021
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2020
For the nine months ended September 30, 2021, sales include the impact of the deconsolidation of VIEs. Refer to “Note 4: Variable Interest Entities” for additional information about the deconsolidation of VIEs. For the nine months ended September 30, 2021, transfers into Level 3 and out of Level 2 were principally related to CMBS, where inputs, which are significant to their valuation, became unobservable during the quarter. These inputs included spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. There were no transfers out of Level 3. For the nine months ended September 30, 2020, there were no transfers into or out of Level 3. Gains and losses (realized and unrealized) included in earnings related to Level 3 assets and liabilities for the three months ended September 30, 2021 and 2020 are reported on the Company’s consolidated statements of operations as follows:
Gains and losses (realized and unrealized) included in earnings relating to Level 3 assets and liabilities for the nine months ended September 30, 2021 and 2020 are reported on the Company’s consolidated statements of operations as follows:
Fair Value Option The Company elected to record at fair value certain financial instruments that are consolidated in connection with the adoption of the accounting guidance for consolidation of VIEs, among others. The following table presents the gains and (losses) included in the Company’s consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020 for financial instruments for which the fair value option was elected:
(1) – Reported within “Net gains (losses) on financial instruments at fair value and foreign exchange” on MBIA’s consolidated statements of operations. (2) – Reported within “Net gains (losses) on financial instruments at fair value and foreign exchange-VIE” on MBIA’s consolidated statements of operations. The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of September 30, 2021 and December 31, 2020 for loans and notes for which the fair value option was elected:
The differences between the contractual outstanding principal and the fair values on loans receivable, VIE notes and MTNs, in the preceding table, are primarily attributable to credit risk. This is due to the high rate of defaults on loans (90 days or more past due), the collateral supporting the VIE notes and the nonperformance risk of the Company on its MTNs, which resulted in depressed pricing of the financial instruments. Instrument-Specific Credit Risk of Liabilities Elected Under the Fair Value Option As of September 30, 2021 and December 31, 2020, the cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option were losses of $26 million and $51 million, respectively, reported in “Accumulated other comprehensive income” on the Company’s consolidated balance sheets. Changes in value attributable to instrument-specific credit risk were derived principally from changes in the Company’s credit spread. For liabilities of VIEs, additional adjustments to instrument-specific credit risk are required, which is determined by an analysis of deal specific performance of collateral that support these liabilities. During the three months ended September 30, 2021 and 2020, the portions of instrument-specific credit risk included AOCI that were recognized in earnings due to settlement of liabilities were losses of $12 million and $2 million, respectively. During the nine months ended September 30, 2021 and 2020, the portions of instrument-specific credit risk included in AOCI that were recognized in earnings due to settlement of liabilities were losses of $36 million and $5 million, respectively. |
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| Investments | Note 7: Investments Investments, excluding equity instruments and those elected under the fair value option, include debt instruments classified as available-for-sale (“AFS”). The following tables presents the amortized cost, allowance for credit losses, corresponding gross unrealized gains and losses and fair value for AFS investments in the Company’s consolidated investment portfolio as of September 30, 2021 and December 31, 2020:
The following table presents the distribution by contractual maturity of AFS fixed-maturity securities at amortized cost, net of allowance for credit losses, and fair value as of September 30, 2021. Contractual maturity may differ from expected maturity as borrowers may have the right to call or prepay obligations.
Deposited and Pledged Securities The fair value of securities on deposit with various regulatory authorities as of September 30, 2021 and December 31, 2020 was $11 million. These deposits are required to comply with state insurance laws. Pursuant to the Company’s tax sharing agreement, securities held by MBIA Inc. in the Tax Escrow Account are included as “Investments pledged as collateral, at fair value” on the Company’s consolidated balance sheets. Investment agreement obligations require the Company to pledge securities as collateral. Securities pledged in connection with investment agreements may not be repledged by the investment agreement counterparty. As of September 30, 2021 and December 31, 2020, the fair value of securities pledged as collateral for these investment agreements approximated $282 million. The Company’s collateral as of September 30, 2021 consisted principally of U.S. Treasury and government agency and corporate obligations, and was primarily held with major U.S. banks. Refer to “Note 8: Derivative Instruments” for information about securities posted to derivative counterparties. Impaired Investments The following tables present the
non-credit related gross unrealized losses related to AFS investments as of September 30, 2021 and December 31, 2020:
Gross unrealized losses on AFS investments increased as of September 30, 2021 compared with December 31, 2020 primarily due to higher interest rates, partially offset by tightening credit spreads. With the weighting applied on the fair value of each security relative to the total fair value, the weighted average contractual maturity of securities in an unrealized loss position as of September 30, 2021 and December 31, 2020 was 11 and 9 years, respectively. As of September 30, 2021 and December 31, 2020, there were 37 and 42 securities, respectively, that were in an unrealized loss position for a continuous twelve-month period or longer, of which, fair values of 6 and 9 securities, respectively, were below book value by more than 5%. The following table presents the distribution of securities in an unrealized loss position for a continuous twelve-month period or longer where fair value was below book value by more than 5% as of September 30, 2021:
Impaired securities that the Company intends to sell before the expected recovery of such securities’ fair values have been written down to fair value. As of September 30, 2021, the Company concluded that it does not have the intent to sell securities in an unrealized loss position and it is more likely than not, that it would not have to sell these securities before recovery of their cost basis. In making this conclusion, the Company examined the cash flow projections for its investment portfolios, the potential sources and uses of cash in its businesses, and the cash resources available to its business other than sales of securities. It also considered the existence of any risk management or other plans as of September 30, 2021 that would require the sale of impaired securities. Credit Losses on Investments The Company’s fixed-maturity securities for which fair value is less than amortized cost are reviewed quarterly in order to determine whether a credit loss exists. If the Company determines that the declines in the fair value are related to credit loss, the Company will establish an allowance for credit losses and recognize the credit component through earnings. Refer to “Note 8: Investments” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 for a discussion of the Company’s policy for its determination of credit losses. The Company does not recognize credit losses on securities insured by MBIA Corp. and National since those securities, whether or not owned by the Company, are evaluated for impairments in accordance with its loss reserving policy. The following table provides information about securities held by the Company as of September 30, 2021 that were in an unrealized loss position and insured by a financial guarantor, along with the amount of insurance loss reserves corresponding to the par amount owned by the Company. The Company did not hold any securities in an unrealized loss position that were insured by a third-party financial guarantor as of September 30, 2021.
Allowance for Credit Losses Rollforward The Company did not establish an allowance for credit losses for AFS securities as of September 30, 2021 or purchase any credit-deteriorated assets for the three or nine months ended September 30, 2021. The following tables present the rollforward of the allowance for credit losses on HTM investments for the three and nine months ended September 30, 2020. As of September 30, 2020, the allowance for credit losses was reduced to zero as a result of the repayment of the assets, at par, subsequent to the third quarter of 2020.
Sales of Available-for-Sale Gross realized gains and losses are recorded within “Net gains (losses) on financial instruments at fair value and foreign exchange” on the Company’s consolidated statements of operations. The proceeds and the gross realized gains and losses from sales of fixed-maturity securities held as AFS for the three and nine months ended September 30, 2021 and 2020 are as follows:
Equity Investments Unrealized gains and losses recognized on equity investments held as of the end of each period for the three and nine months ended September 30, 2021 and 2020 are as follows:
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| Derivative Instruments | Note 8: Derivative Instruments U.S. Public Finance Insurance The Company’s derivative exposure within its U.S. public finance insurance operations primarily consists of insured interest rate swaps related to insured U.S. public finance debt issues. These derivatives do not qualify for the financial guarantee scope exception and are accounted for as derivative instruments. Changes in the fair values of the Company’s insured derivatives within its U.S. Public Finance segment are included in “Net change in fair value of insured derivatives” on the Company’s consolidated statements of operations. Corporate The Company has entered into derivative instruments primarily consisting of interest rate swaps to manage the risks associated with fluctuations in interest rates affecting the value of certain assets. Changes in the fair values of the Company’s derivatives within its corporate segment are included in “Net gains (losses) on financial instruments at fair value and foreign exchange” on the Company’s consolidated statements of operations. International and Structured Finance Insurance The Company’s derivative exposure within its international and structured finance insurance segment includes insured interest rate and inflation-linked swaps related to insured debt issues. Changes in the fair values of the Company’s insured derivatives within its International and Structured Finance segment are included in “Net change in fair value of insured derivatives” on the Company’s consolidated statements of operations. The Company had also entered into a derivative contract in connection with the commutation of certain insurance exposure, which occurred in 2014. Changes in the fair value of this non-insured derivative are included in “Net gains (losses) on financial instruments at fair value and foreign exchange” on the Company’s consolidated statements of operations. This derivative contract was settled in the first quarter of 2021 for an amount consistent with the amount reported at fair value as of December 31, 2020. Variable Interest Entities A VIE consolidated by the Company is party to a cross currency swap, which was entered into to manage the variability in cash flows resulting from fluctuations in foreign currency rates. Changes in the fair value of the VIE derivative are included in “Net gains (losses) on financial instruments at fair value and foreign exchange-VIE” on the Company’s consolidated statements of operations. Credit Derivatives Sold The following tables present information about credit derivatives sold by the Company’s insurance operations that were outstanding as of September 30, 2021 and December 31, 2020. Credit ratings represent the lower of underlying ratings assigned to the collateral by Moody’s Investor Services (“Moody’s”), Standard & Poor’s Financial Services, LLC (“S&P”) or MBIA.
Internal credit ratings assigned by MBIA on the underlying credit exposures are assigned by the Company’s surveillance group. In assigning an internal rating, current status reports from issuers and trustees, as well as publicly available transaction-specific information, are reviewed. The maximum potential amount of future payments (undiscounted) on insured swaps that are primarily insured interest rate swaps is estimated as the net interest settlements plus principal payments where applicable, on amortizing swaps. MBIA may hold recourse provisions through subrogation rights of the swap counterparty, whereby if MBIA makes a claim payment, it may be entitled to receive net swap settlements from the issuer under the swap agreement. Counterparty Credit Risk The Company manages counterparty credit risk on an individual counterparty basis through master netting agreements covering derivative instruments in the corporate segment. These agreements allow the Company to contractually net amounts due from a counterparty with those amounts due to such counterparty when certain triggering events occur. The Company only executes swaps under master netting agreements, which typically contain mutual credit downgrade provisions that generally provide the ability to require assignment or termination in the event either MBIA or the counterparty is downgraded below a specified credit rating. Under these agreements, the Company may receive or provide cash, U.S. Treasury or other highly rated securities to secure counterparties’ exposure to the Company or its exposure to counterparties, respectively. Such collateral is available to the holder to pay for replacing the counterparty in the event that the counterparty defaults. As of September 30, 2021 and December 31, 2020, the Company did not hold or post cash collateral to derivative counterparties. As of September 30, 2021 and December 31, 2020, the Company had securities with a fair value of $163 million and $214 million, respectively, posted to derivative counterparties and these amounts are included within “Fixed-maturity securities held as available-for-sale, As of September 30, 2021 and December 31, 2020, the fair value on one Credit Support Annex (“CSA”) was $1 million. This CSA governs collateral posting requirements between MBIA and its derivative counterparties. The Company did not receive collateral due to the Company’s credit rating, which was below the CSA minimum credit ratings level for holding counterparty collateral. As of September 30, 2021 and December 31, 2020, the counterparty was rated Aa3 by Moody’s and A+ by S&P. Financial Statement Presentation The fair value of amounts recognized for eligible derivative contracts executed with the same counterparty under a master netting agreement, including any cash collateral that may have been received or posted by the Company, is presented on a net basis in accordance with accounting guidance for the offsetting of fair value amounts related to derivative instruments. Insured CDS and insured swaps are not subject to master netting agreements. VIE derivative assets and liabilities are not presented net of any master netting agreements. Counterparty netting of derivative assets and liabilities offsets balances in “Interest rate swaps”, when applicable. The following table presents the total fair value of the Company’s derivative assets and liabilities by instrument and balance sheet location, before counterparty netting, as of September 30, 2021:
The following table presents the total fair value of the Company’s derivative assets and liabilities by instrument and balance sheet location, before counterparty netting, as of December 31, 2020:
The following table presents the effect of derivative instruments on the consolidated statements of operations for the three months ended September 30, 2021 and 2020:
The following table presents the effect of derivative instruments on the consolidated statements of operations for the nine months ended September 30, 2021 and 2020:
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Income Taxes |
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| Income Taxes | Note 9: Income Taxes The Company’s income taxes and the related effective tax rates for the three and nine months ended September 30, 2021 and 2020 are as follows:
For the nine months ended September 30, 2021 and 2020, the Company’s 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 $1.0 billion and $966 million as of September 30, 2021 and December 31, 2020, respectively. The Company will continue to analyze the valuation allowance on a quarterly basis. 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 September 30, 2021 and December 31, 2020, the Company had no UTB. Federal income tax returns through 2011 have been examined or surveyed. As of September 30, 2021, the Company’s NOL is approximately $3.5 billion. NOLs generated prior to tax reform and property and casualty NOLs generated after tax reform will expire between tax years 2031 through 2041. As of September 30, 2021, the Company has a foreign tax credit carryforward of $61 million, which will expire between tax years 2021 through 2030. 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. COVID-19 Tax Impact On March 27, 2020, as part of the business stimulus package in response to
COVID-19, the U.S. government enacted the 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 alternative minimum tax (“AMT”) credit carryforwards; and (3) retroactive changes to allow accelerated depreciation for certain depreciable property. The legislation did not have a material impact on the Company’s tax positions due to the lack of taxable income in the carryback periods. On December 21, 2020, The Consolidated Appropriations Act (“Act”) passed by Congress to respond to the health and economic impacts of COVID-19. The Act includes a number of tax law changes, including the expansion of Employee Retention Credit, important changes to Paycheck Protection Program, and extension of a variety of expiring tax provisions. On March 6, 2021, The American Rescue Plan Act was passed by Congress to further respond to the health and economic impacts of COVID-19. Among other changes, the legislation provides for an extension of the Employee Retention Credit through 2021. These two legislations do not have a material impact on the Company’s tax positions. |
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| Business Segments | Note 10: Business Segments As defined by segment reporting, an operating segment is a component of a company (i) that engages in business activities from which it earns revenue and incurs expenses, (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker to assess the performance of the segment and to make decisions about the allocation of resources to the segment and, (iii) for which discrete financial information is available. The Company manages its businesses across three operating segments: 1) U.S. public finance insurance; 2) corporate; and 3) international and structured finance insurance. The Company’s U.S. public finance insurance business is operated through National and its international and structured finance insurance business is operated through MBIA Corp. The following sections provide a description of each of the Company’s reportable operating segments. U.S. Public Finance Insurance The Company’s U.S. public finance insurance portfolio is managed through National. The financial guarantees issued by National provide unconditional and irrevocable guarantees of the payment of the principal of, and interest or other amounts owing on, U.S. public finance insured obligations when due. The obligations are not subject to acceleration, except that National may have the right, at its discretion, to accelerate insured obligations upon default or otherwise. National’s guarantees insure municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utilities, airports, health care institutions, higher educational facilities, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. Municipal bonds and privately issued bonds used for the financing of public purpose projects are generally supported by taxes, assessments, fees or tariffs related to the use of these projects, lease payments or other similar types of revenue streams. Corporate The Company’s corporate segment consists of general corporate activities, including providing support services to MBIA Inc.’s subsidiaries as well as asset and capital management. Support services are provided by the Company’s service company, MBIA Services, and include, among others, management, legal, accounting, treasury, information technology, and insurance portfolio surveillance, on a fee-for-service International and Structured Finance Insurance The Company’s international and structured finance insurance segment is principally conducted through MBIA Corp. The financial guarantees issued by MBIA Corp. generally provide unconditional and irrevocable guarantees of the payment of principal of, and interest or other amounts owing on, non-U.S. public finance and global structured finance insured obligations when due, or in the event MBIA Corp. has the right, at its discretion, to accelerate insured obligations upon default or otherwise. MBIA Corp. insures the investment contracts written by MBIA Inc., and if MBIA Inc. were to have insufficient assets to pay amounts due upon maturity or termination, MBIA Corp. would make such payments. MBIA Corp. insures debt obligations of the following affiliates:
MBIA Corp. insures non-U.S. public finance and global structured finance obligations, including asset-backed obligations. MBIA Corp. has insured sovereign-related and sub-sovereign bonds, utilities, privately issued bonds used for the financing of projects that include toll roads, bridges, airports, public transportation facilities, and other types of infrastructure projects serving a substantial public purpose. Global structured finance and asset-backed obligations typically are securities repayable from expected cash flows generated by a specified pool of assets, such as residential and commercial mortgages, insurance policies, consumer loans, corporate loans and bonds, and aircraft leases. MBIA Corp. has also written policies guaranteeing obligations under certain other derivative contracts, including termination payments that may become due upon certain insolvency or payment defaults of the financial guarantor or the issuer. MBIA Corp. has not written any meaningful amount of business since 2008. Segments Results The following tables provide the Company’s segment results for the three months ended September 30, 2021 and 2020:
The following tables provide the Company’s segment results for the nine months ended September 30, 2021 and 2020:
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Earnings Per Share |
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| Earnings Per Share | Note 11: Earnings Per Share Earnings per share is calculated using the two-class method in which earnings are allocated to common stock and participating securities based on their rights to receive nonforfeitable dividends or dividend equivalents. The Company grants restricted stock to certain employees and non-employee directors in accordance with the Company’s long-term incentive programs, which entitle the participants to receive nonforfeitable dividends or dividend equivalents during the vesting period on the same basis as those dividends are paid to common shareholders. These unvested stock awards represent participating securities. During periods of net income, the calculation of earnings per share exclude the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. During periods of net loss, no effect is given to participating securities in the numerator and the denominator excludes the dilutive impact of these securities since they do not share in the losses of the Company. Basic earnings per share excludes dilution and is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the dilutive effect of all unvested restricted stock outstanding during the period that could potentially result in the issuance of common stock. The dilution from unvested restricted stock is calculated by applying the two-class method and using the treasury stock method. The treasury stock method assumes the proceeds from the unrecognized compensation expense from unvested restricted stock will be used to purchase shares of the Company’s common stock at the average market price during the period. If the potentially dilutive securities disclosed in the table below become vested, the transaction would be net share settled resulting in a significantly lower impact to the outstanding share balance in comparison to the total amount of the potentially dilutive securities. During periods of net loss, unvested restricted stock is excluded from the calculation because it would have an antidilutive effect. Therefore, in periods of net loss, the calculation of basic and diluted earnings per share would result in the same value. The following table presents the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2021 and 2020:
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Accumulated Other Comprehensive Income |
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| Accumulated Other Comprehensive Income | Note 12: Accumulated Other Comprehensive Income The following table presents the changes in the components of AOCI for the nine months ended September 30, 2021:
The following table presents the details of the reclassifications from AOCI for the three and nine months ended September 30, 2021 and 2020:
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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, 2020, 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 December 14, 2009, MBIA Corp. commenced an action in New York State Supreme Court, New York County, against Credit Suisse. The complaint sought damages for claims in connection with the procurement of financial guarantee insurance on the Home Equity Mortgage Trust Series 2007-2 securitization. On January 30, 2013, MBIA Corp. filed an amended complaint. In November of 2020, following a trial and post-trial briefing, the court overseeing the litigation issued a decision declaring that MBIA Corp. had succeeded in establishing that a majority of the loans in the transaction were ineligible. In January of 2021, the Court issued an order declaring that Credit Suisse was liable to MBIA for approximately $604 million in damages. On February 9, 2021, the parties to the litigation entered into a settlement agreement pursuant to which Credit Suisse paid MBIA Corp. $600 million, and on February 11, 2021, the court entered an order dismissing the case. Tilton v. MBIA Inc., 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., seeking damages based on allegations of 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. Plaintiffs filed an amended complaint on January 15, 2016. The parties completed discovery in 2017. In June of 2021, the court denied the parties’ respective cross-motions for summary judgment and set a trial date of December 6, 2021. MBIA has filed a notice of appeal with respect to the denial of its summary judgement. 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 Funds 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. The Company and the other defendants filed their respective motions to dismiss on October 30, 2020. Briefing on those motions is complete and the motions are under submission. Zohar CDO 2003-1, Ltd., et al. v. Patriarch Partners, LLC et al.,1:17-cv-0307-WHP On November 27, 2017, Lynn Tilton and certain affiliated entities including Patriarch Partners, LLC commenced a third-party complaint against MBIA Inc., MBIA Insurance Corp. and other Zohar Fund stakeholders seeking damages for alleged breaches of the contracts governing the Zohar Funds and additional alleged legal duties and obligations relating to the Funds. On December 22, 2020, the Company and the other third-party defendants moved to dismiss the third-party complaint. On July 6, 2021, following the completion of briefing on those motions to dismiss, the presiding judge, the Honorable William H. Pauley, and the case was reassigned to the Honorable P. Kevin Castel. On September 29, 2021, Judge Castel issued a decision on the motions to dismiss; granting them almost in full, with certain claims being stayed rather than dismissed, pending further developments in the Adversary Proceedings pending in the Zohar Funds Bankruptcy Cases in Delaware Bankruptcy Court. MBIA Insurance Corp. v. Tilton et al., Adversary Case No. 20-50776 (KBO) (Bankr. Del.)On July 30, 2020, MBIA Corp. commenced an adversary proceeding in the Zohar Funds Bankruptcy Cases against Lynn Tilton and certain affiliated entities seeking damages incurred by MBIA Corp. in connection with insurance policies it issued on senior notes issued by Zohar I and Zohar II. On July 23, 2021, the court denied in part and granted in part Tilton’s and her affiliated defendants’ motion to dismiss the complaint. The court denied defendants’ motion with respect to MBIA’s claims for breach of contract, tortious interference, unjust enrichment, and malicious prosecution of claims commenced by Tilton in Delaware. On September 24, 2021, MBIA filed an Amended Complaint consistent with the rulings on the motion to dismiss. 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. These 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. 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., 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 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 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. As part of the GO PSA, National has agreed to stay its participation in this litigation subject to the effective date of the Commonwealth plan of adjustment. 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 No. 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. As part of the GO PSA, National has agreed to stay its participation in this litigation subject to the effective date of the Commonwealth plan of adjustment. The Financial Oversight and Management Board for Puerto Rico, as Representative of the Commonwealth of Puerto Rico, et al., Case No. 17-03567 LTS (D.P.R. July 17, 2020) (Swain, J.) On July 17, 2020, National, Ambac Assurance Corporation, Assured Guaranty Corp., Assured Guaranty Municipal Corp. and Financial Guaranty Insurance Company sought appointment as trustees under Section 926 of Title 11 of the United States Code to pursue certain claims on behalf of HTA against the Commonwealth of Puerto Rico. On August 11, 2020, Judge Swain denied the motion. The movants appealed to the First Circuit Court of Appeals, and briefing is underway. As part of the GO PSA and HTA PSA, National’s participation in this litigation will be stayed subject to the effective date of the Commonwealth plan of adjustment. National Public Finance Guarantee Corporation et al. v. UBS Financial Services, Inc. et al., 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 held a hearing on the remand motion on July 29, 2020, at the end of which it granted National’s motion and remanded the case to the Commonwealth Court of First Instance. On July 31, 2020, National filed an informative motion with the Commonwealth of Puerto Rico Court of First Instance, Superior Court of San Juan, advising that the case has been remanded and requesting the reopening of the case in the Superior Court for further proceedings. On August 2, 2020, the Superior Court recognized the order of Judge Swain remanding the case and acknowledged that proceedings would continue in Commonwealth Court. On September 16, 2020, Defendants filed a motion to dismiss the complaint. National filed its objection to that motion on October 7, 2020, and briefing concluded on November 30, 2020. On June 2, 2021, the Superior Court denied Defendants’ motion to dismiss; Defendants have filed a petition seeking to appeal this ruling. Defendants filed an answer to the complaint on July 15, 2021. Complaint Objecting to Defendants’ Claims and Seeking Related Relief, 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. The cross motions for summary judgment were filed on July 16, 2020. On September 23, 2020, Judge Swain heard argument on the limited cross motions for summary judgment, which remain pending. On January 20, 2021, Judge Swain issued an order deferring the adjudication of the summary judgment motions so that defendant monolines can seek limited discovery from the Oversight Board on all documents related to the collection and flow of Excise Taxes and pledged revenue into and out of its accounts, among other things. On April 6, 2021, the Oversight Board filed a motion to lift the litigation stay for the limited purpose of filing further summary judgment motions that would dispose of substantially all of the remaining claims challenged in this complaint. The hearing on this motion was held April 28, 2021, and the motion was denied. As part of the GO PSA and HTA PSA, National has agreed to stay its participation in this litigation subject to the effective date of the HTA plan of adjustment. Complaint Objecting to Defendants’ Claims and Seeking Related Relief, 20-00007-LTS 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. As part of the GO PSA and HTA PSA, National has agreed to stay its participation in this litigation subject to the effective date of the Commonwealth plan of adjustment. Amerinational Community Services, LLC, as Servicer for the GDB Debt Recovery Authority and Cantor-Katz Collateral Monitor LLC v. Ambac Assurance Corporation, Assured Guaranty Corp, Assured Guaranty Municipal Corp., National Public Finance Guarantee Corporation, Financial Guaranty Insurance Company, Peaje Investments LLC and The Bank of New Yok Mellon, as Fiscal Agent On June 26, 2021, the GDB Debt Recovery Authority (“DRA”) Parties commenced an adversary proceeding (“DRA Complaint”) against National, Assured, Ambac, and FGIC seeking a declaration that the DRA’s loans are not subordinate to HTA bonds, that the DRA is the only party with the right to collect from a valid, perfected security interest in the Act 30-31 Revenues and that HTA bondholders have limited recourse bonds, and that the bonds may only be satisfied from revenues that do not include the Act 30-31 revenues. On July 27, 2021, Judge Swain entered an order setting procedures and a schedule for early dispositive motions in the adversary proceeding. The Judge’s order further indicated that any DRA-related disputes not resolved by the early dispositive motions should be resolved through the confirmation process. A motion to dismiss, as well as an answer and counterclaims (including equitable subordination), were filed on August 26, 2021. The government parties have intervened in the case and likewise moved to dismiss. DRA filed its response to the motions to dismiss on September 23, 2021. The defendants filed their replies in support of the motions to dismiss on October 8, 2021. On September 16, 2021, the DRA parties moved (with Defendants’ consent) to extend their time to respond to the counterclaims to September 22, 2021. The Defendants filed their response to the DRA’s motion to stay counterclaims on October 7, 2021, and DRA filed its reply on October 12, 2021. On October 29, 2021, Judge Swain granted the defendants’ motion to dismiss the DRA Complaint on all four counts asserted. 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 an immaterial lease for an office in 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 l ea se 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 September 30, 2021:
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Significant Accounting Policies (Policies) |
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| Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and, accordingly, do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual periods. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2020. The accompanying consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board (U.S.), but in the opinion of management such financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company’s consolidated financial position and results of operations. All material intercompany balances and transactions have been eliminated. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As additional information becomes available or actual amounts become determinable, the recorded estimates are revised and reflected in operating results. The results of operations for the three and nine months ended September 30, 2021 may not be indicative of the results that may be expected for the year ending December 31, 2021. The December 31, 2020 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP for annual periods. |
| Recently Adopted Accounting Standards | Recently Adopted Accounting Standards The Company has not adopted any new accounting pronouncements that had a material impact on its consolidated financial statements. |
| New Accounting Pronouncements Not Yet Adopted | Recent Accounting Developments Reference Rate Reform (Topic 848): Scope (ASU 2021-01) and Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04) In January of 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-01, “Reference Rate Reform – Scope,” which clarified the scope and application of the original guidance, ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” issued in March of 2020. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships that reference London Interbank Offered Rate (“LIBOR”) or other rates that are expected to be discontinued, subject to meeting certain criteria. Both ASU 2020-04 and ASU 2021-01 were effective upon issuance, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is evaluating the impact of adopting ASU 2021-01 and 2020-04. |
Variable Interest Entities (Tables) |
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Loss and Loss Adjustment Expense Reserves (Tables) |
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| Present Value Of The Probability-Weighted Future Claim Payments And Recoveries |
(1) - Includes loan repurchase commitments of $604 million as of December 31, 2020. (2) - Amounts are net of expected recoveries. |
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| Schedule Of Loss And Loss Adjustment Expenses Reserves |
(1) - Includes changes in amount and timing of estimated payments and recoveries. |
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| Schedule Of Insurance Loss Recoverable |
(1) - Includes amounts related to paid claims. (2) - Primarily changes in amount and timing of collections and LAE. |
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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 September 30, 2021:
(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, 2020:
(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. |
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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 September 30, 2021 and December 31, 2020:
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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 September 30 , 2021 and December 31 , 2020 :
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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 |
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| Changes In Level 3 Liabilities Measured At Fair Value On A Recurring Basis |
(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.
(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.
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| Gains And Losses (Realized And Unrealized) Included In Earnings Pertaining To Level 3 Assets And Liabilities | Gains and losses (realized and unrealized) included in earnings related to Level 3 assets and liabilities for the three months ended September 30, 2021 and 2020 are reported on the Company’s consolidated statements of operations as follows:
Gains and losses (realized and unrealized) included in earnings relating to Level 3 assets and liabilities for the nine months ended September 30, 2021 and 2020 are reported on the Company’s consolidated statements of operations as follows:
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| Changes In Fair Value Included In The Company's Consolidated Statements Of Operations | The following table presents the gains and (losses) included in the Company’s consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020 for financial instruments for which the fair value option was elected:
(1) – Reported within “Net gains (losses) on financial instruments at fair value and foreign exchange” on MBIA’s consolidated statements of operations. (2) – Reported within “Net gains (losses) on financial instruments at fair value and foreign exchange-VIE” on MBIA’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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Investments (Tables) |
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| Amortized Cost And Fair Value Of Available-For-Sale And Held-To-Maturity Investment Portfolios | The following tables presents the amortized cost, allowance for credit losses, corresponding gross unrealized gains and losses and fair value for AFS investments in the Company’s consolidated investment portfolio as of September 30, 2021 and December 31, 2020:
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| Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments |
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| Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments |
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| Distribution Of Securities By Percentage Of Fair Value Below Book Value By More Than 5% |
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| Securities Held In Unrealized Loss Position And Insured By Financial Guarantor and The Related Insurance Loss Reserve On Company Insured Investments |
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| Summary of Allowance for Credit Losses on HTM Investments | The following tables present the rollforward of the allowance for credit losses on HTM investments for the three and nine months ended September 30, 2020. As of September 30, 2020, the allowance for credit losses was reduced to zero as a result of the repayment of the assets, at par, subsequent to the third quarter of 2020.
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| Gross Realized Gains and Losses From Sales Of Available-For-Sale Securities |
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| Portion Of Unrealized Gains Losses Recognized On Equity Investments |
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Derivative Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Credit Derivatives Sold |
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| Total Fair Value Of Company's Derivative Assets And Liabilities By Instrument And Balance Sheet Location, Before Counterparty Netting | The following table presents the total fair value of the Company’s derivative assets and liabilities by instrument and balance sheet location, before counterparty netting, as of September 30, 2021:
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| Effect Of Derivative Instruments On Consolidated Statements Of Operations | The following table presents the effect of derivative instruments on the consolidated statements of operations for the three months ended September 30, 2021 and 2020:
The following table presents the effect of derivative instruments on the consolidated statements of operations for the nine months ended September 30, 2021 and 2020:
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Income Taxes (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) from operations before provision (benefit) for income taxes | The Company’s income taxes and the related effective tax rates for the three and nine months ended September 30, 2021 and 2020 are as follows:
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Business Segments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Summary of company's segment results | The following tables provide the Company’s segment results for the three months ended September 30, 2021 and 2020:
The following tables provide the Company’s segment results for the nine months ended September 30, 2021 and 2020:
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Earnings Per Share (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Text Block [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule Of Basic And Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2021 and 2020:
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Accumulated Other Comprehensive Income (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changes In The Components Of AOCI | The following table presents the changes in the components of AOCI for the nine months ended September 30, 2021:
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| Reclassifications From AOCI | The following table presents the details of the reclassifications from AOCI for the three and nine months ended September 30, 2021 and 2020:
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Commitments and Contingencies (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Text Block [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Leases Of Lessee Disclosure | The following table provides information about the Company’s leases as of September 30, 2021:
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Loss And Loss Adjustment Expense Reserves (Loss And LAE Activity) (Narrative) (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
|---|---|---|---|---|---|---|---|
Oct. 18, 2021 |
Feb. 10, 2021 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
| Loss And Loss Adjustment Expense Reserves [Line Items] | |||||||
| Weighted average risk-free rate used to discount claim liability | 1.52% | ||||||
| Percentage of voters voted by the deadline | 27.00% | ||||||
| Credit Suisse [Member] | |||||||
| Loss And Loss Adjustment Expense Reserves [Line Items] | |||||||
| Damages Sought Value | $ 604 | ||||||
| Damages Paid Value | $ 600 | ||||||
| Lae [Member] | |||||||
| Loss And Loss Adjustment Expense Reserves [Line Items] | |||||||
| Losses and loss adjustment | $ 4 | $ 8 | 17 | $ 25 | |||
| Loss and loss adjustment expense reserves | $ 33 | $ 33 | $ 30 | ||||
| Changes in Loss and LAE Reserves | one-year | ||||||
Loss And Loss Adjustment Expense Reserves (Schedule Of Loss And Loss Adjustment Expenses Reserves) (Detail) - USD ($) $ in Millions |
9 Months Ended | |||||
|---|---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|||||
| Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||
| Changes in unearned premium revenue | $ 72 | $ 53 | ||||
| Loss And Lae Reserves [Member] | ||||||
| Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||
| Gross loss and LAE reserve, beginning balance | [1],[2] | 990 | ||||
| Loss payments for cases | [2] | (298) | ||||
| Accretion of claim liability discount | [2] | 11 | ||||
| Changes in discount rates | [2] | (25) | ||||
| Changes in assumptions | [2] | 173 | ||||
| Changes in unearned premium revenue | [2] | 3 | ||||
| Other | [2] | (4) | ||||
| Gross loss and LAE reserve, ending balance | [1],[2] | $ 850 | ||||
| ||||||
Loss And Loss Adjustment Expense Reserves (Schedule Of Insurance Loss Recoverable) (Detail) - Insurance Loss Recoverable [Member] $ in Millions |
9 Months Ended | |||||
|---|---|---|---|---|---|---|
|
Sep. 30, 2021
USD ($)
| ||||||
| Roll forward of Insurance Loss Recoverable [Line Items] | ||||||
| Gross Reserve beginning balance, Insurance loss recoverable | $ 1,677 | |||||
| Collections for Cases | (74) | |||||
| Accretion of Recoveries | 12 | |||||
| Changes in Discount Rates | 5 | |||||
| Changes in Assumptions | (80) | [1] | ||||
| Other | (3) | [2] | ||||
| Gross Reserve ending balance, Insurance loss recoverable | $ 1,537 | |||||
| ||||||
Loss And Loss Adjustment Expense Reserves (Schedule Of Financial Guarantees And Related Claim Liability) (Detail) $ in Millions |
9 Months Ended | 12 Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Sep. 30, 2021
USD ($)
issue
policy
|
Dec. 31, 2020
USD ($)
issue
policy
|
|||||||||||||
| Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||||||||||
| Number of policies | policy | 264 | 281 | ||||||||||||
| Number of issues | issue | [1] | 108 | 119 | |||||||||||
| Remaining weighted average contract period (in years) | 7 years 6 months | 7 years 4 months 24 days | ||||||||||||
| Principal | [2] | $ 4,228 | $ 4,847 | |||||||||||
| Interest | [2] | 3,193 | 3,469 | |||||||||||
| Total | [2] | 7,421 | 8,316 | |||||||||||
| Gross claim liability | [3] | 897 | 1,088 | |||||||||||
| Less: Gross potential recoveries | [4] | 1,831 | 1,947 | |||||||||||
| Discount, net | [5] | (242) | (173) | |||||||||||
| Net claim liability (recoverable) | (692) | (686) | ||||||||||||
| Unearned premium revenue | 38 | 45 | ||||||||||||
| Reinsurance recoverables on paid and unpaid losses | [6] | $ 8 | $ 11 | |||||||||||
| Caution List Low [Member] | ||||||||||||||
| Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||||||||||
| Number of policies | policy | 58 | 46 | ||||||||||||
| Number of issues | issue | [1] | 17 | 16 | |||||||||||
| Remaining weighted average contract period (in years) | 5 years 10 months 24 days | 6 years 4 months 24 days | ||||||||||||
| Principal | [2] | $ 1,480 | $ 1,422 | |||||||||||
| Interest | [2] | 1,952 | 1,974 | |||||||||||
| Total | [2] | 3,432 | 3,396 | |||||||||||
| 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 | $ 8 | $ 10 | ||||||||||||
| Caution List Medium [Member] | ||||||||||||||
| Loss And Loss Adjustment Expense Reserves [Line Items] | ||||||||||||||
| Number of policies | policy | 3 | 16 | ||||||||||||
| Number of issues | issue | [1] | 2 | 3 | |||||||||||
| Remaining weighted average contract period (in years) | 2 years 2 months 12 days | 6 years 4 months 24 days | ||||||||||||
| Principal | [2] | $ 7 | $ 123 | |||||||||||
| Interest | [2] | 1 | 54 | |||||||||||
| Total | [2] | 8 | 177 | |||||||||||
| 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 | ||||||||||||
| 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 | 203 | 219 | ||||||||||||
| Number of issues | issue | [1] | 89 | 100 | |||||||||||
| Remaining weighted average contract period (in years) | 8 years 4 months 24 days | 7 years 10 months 24 days | ||||||||||||
| Principal | [2] | $ 2,741 | $ 3,302 | |||||||||||
| Interest | [2] | 1,240 | 1,441 | |||||||||||
| Total | [2] | 3,981 | 4,743 | |||||||||||
| Gross claim liability | [3] | 897 | 1,088 | |||||||||||
| Less: Gross potential recoveries | [4] | 1,831 | 1,947 | |||||||||||
| Discount, net | [5] | (242) | (173) | |||||||||||
| Net claim liability (recoverable) | (692) | (686) | ||||||||||||
| Unearned premium revenue | $ 30 | $ 35 | ||||||||||||
| ||||||||||||||
Fair Value Of Financial Instruments (Narrative) (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
|---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
| Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
| Percentage of level 3 assets at fair value in total assets measured at fair value value | 4.00% | 4.00% | 20.00% | ||
| Percentage of level 3 liabilities at fair value in total liabilities measured at fair value | 75.00% | 75.00% | 68.00% | ||
| Cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option | $ (90) | $ (90) | $ (115) | ||
| Loan Repurchase Commitments [Member] | |||||
| Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
| Payments for Litigation Settlements | 600 | ||||
| Instrument-specific credit risk of liabilities measured at fair value, net [Member] | |||||
| Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
| Cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option | 26 | 26 | $ 51 | ||
| Loss on instrument-specific credit risk recognized in earnings | $ 12 | $ 2 | $ 36 | $ 5 | |
Fair Value Of Financial Instruments (Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
||
|---|---|---|---|---|
| Cash Flows [Member] | Discounted cash flow [Member] | Other Derivatives Liabilities [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Fair value, liabilities | $ 49 | |||
| Minimum [Member] | Cash Flows [Member] | Discounted cash flow [Member] | Other Derivatives Liabilities [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Range dollars | 49 | |||
| Maximum [Member] | Cash Flows [Member] | Discounted cash flow [Member] | Other Derivatives Liabilities [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Range dollars | 49 | |||
| Weighted Average [Member] | Cash Flows [Member] | Discounted cash flow [Member] | Other Derivatives Liabilities [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Range dollars | 49 | |||
| Variable Interest Entity Primary Beneficiary [Member] | Variable Interest Entity Notes [Member] | Impact Of Financial Guarantee [Member] | Market Prices of VIE Assets Adjusted for Financial Guarantees Provided or Market Prices of Similar Liabilities [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Fair value, liabilities | $ 292 | |||
| Variable Interest Entity Primary Beneficiary [Member] | Variable Interest Entity Notes [Member] | Impact Of Financial Guarantee [Member] | Quoted market prices of VIE assets adjusted for financial guarantees provided [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Fair value, liabilities | 303 | |||
| Variable Interest Entity Primary Beneficiary [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices of Similar Liabilities Adjusted for Financial Guarantees Provided to VIE Obligations [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Fair Value, assets | $ 77 | |||
| Variable Interest Entity Primary Beneficiary [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices Adjusted For Financial Guarantees Provided To VIE Obligations [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Fair Value, assets | 120 | |||
| Variable Interest Entity Primary Beneficiary [Member] | Loan Repurchase Commitments [Member] | Recovery Rates And Breach Rates [Member] | Discounted cash flow [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Fair Value, assets | $ 604 | |||
| Variable Interest Entity Primary Beneficiary [Member] | Minimum [Member] | Variable Interest Entity Notes [Member] | Impact Of Financial Guarantee [Member] | Market Prices of VIE Assets Adjusted for Financial Guarantees Provided or Market Prices of Similar Liabilities [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Range percentage | 32.00% | |||
| Variable Interest Entity Primary Beneficiary [Member] | Minimum [Member] | Variable Interest Entity Notes [Member] | Impact Of Financial Guarantee [Member] | Market Prices Adjusted For Financial Guarantees Provided To VIE Obligations [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Range percentage | [1] | 30.00% | ||
| Variable Interest Entity Primary Beneficiary [Member] | Minimum [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices of Similar Liabilities Adjusted for Financial Guarantees Provided to VIE Obligations [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Range percentage | [1] | 23.00% | ||
| Variable Interest Entity Primary Beneficiary [Member] | Minimum [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices Adjusted For Financial Guarantees Provided To VIE Obligations [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Range percentage | [1] | (28.00%) | ||
| Variable Interest Entity Primary Beneficiary [Member] | Maximum [Member] | Variable Interest Entity Notes [Member] | Impact Of Financial Guarantee [Member] | Market Prices of VIE Assets Adjusted for Financial Guarantees Provided or Market Prices of Similar Liabilities [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Range percentage | 74.00% | |||
| Variable Interest Entity Primary Beneficiary [Member] | Maximum [Member] | Variable Interest Entity Notes [Member] | Impact Of Financial Guarantee [Member] | Market Prices Adjusted For Financial Guarantees Provided To VIE Obligations [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Range percentage | [1] | 73.00% | ||
| Variable Interest Entity Primary Beneficiary [Member] | Maximum [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices of Similar Liabilities Adjusted for Financial Guarantees Provided to VIE Obligations [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Range percentage | [1] | 72.00% | ||
| Variable Interest Entity Primary Beneficiary [Member] | Maximum [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices Adjusted For Financial Guarantees Provided To VIE Obligations [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Range percentage | [1] | 109.00% | ||
| Variable Interest Entity Primary Beneficiary [Member] | Weighted Average [Member] | Variable Interest Entity Notes [Member] | Impact Of Financial Guarantee [Member] | Market Prices of VIE Assets Adjusted for Financial Guarantees Provided or Market Prices of Similar Liabilities [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Range percentage | [1] | 60.00% | ||
| Variable Interest Entity Primary Beneficiary [Member] | Weighted Average [Member] | Variable Interest Entity Notes [Member] | Impact Of Financial Guarantee [Member] | Market Prices Adjusted For Financial Guarantees Provided To VIE Obligations [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Range percentage | [1] | 57.00% | ||
| Variable Interest Entity Primary Beneficiary [Member] | Weighted Average [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices of Similar Liabilities Adjusted for Financial Guarantees Provided to VIE Obligations [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Range percentage | [1] | 55.00% | ||
| Variable Interest Entity Primary Beneficiary [Member] | Weighted Average [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices Adjusted For Financial Guarantees Provided To VIE Obligations [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Range percentage | [1] | 22.00% | ||
| ||||
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 |
Sep. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Accounts Notes And Loans Receivable [Line Items] | ||
| Fair value financial assets measured on recurring basis | $ 2,987 | $ 3,725 |
| Fair value financial liabilities measured on recurring basis | 527 | 675 |
| Money Market Securities [Member] | ||
| Accounts Notes And Loans Receivable [Line Items] | ||
| Fair value financial assets measured on recurring basis | 60 | 1 |
| Medium-term Notes [Member] | ||
| Accounts Notes And Loans Receivable [Line Items] | ||
| Fair value financial liabilities measured on recurring basis | 102 | 110 |
| Perpetual Debt And Equity Securities [Member] | ||
| Accounts Notes And Loans Receivable [Line Items] | ||
| Fair value financial assets measured on recurring basis | 67 | 62 |
| Cash and Cash Equivalents [Member] | ||
| Accounts Notes And Loans Receivable [Line Items] | ||
| Fair value financial assets measured on recurring basis | 108 | 158 |
| Fixed Maturities [Member] | ||
| Accounts Notes And Loans Receivable [Line Items] | ||
| Fair value financial assets measured on recurring basis | 2,583 | 2,673 |
| 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 | 782 | 855 |
| 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 | 179 | 195 |
| 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 | 14 | 15 |
| 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 | 1,032 | 975 |
| 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 | 203 | 319 |
| 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 | 98 | 32 |
| 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 | 13 | 20 |
| 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 | 154 | 121 |
| 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 | 108 | 141 |
| 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 | 604 | |
| 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 | 5 | 6 |
| 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 | 27 | 40 |
| 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 | 8 | 8 |
| 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 | 8 | 7 |
| 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 | 77 | 120 |
| 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 | 9 | 6 |
| 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 | 4 | 9 |
| 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 | 14 |
| Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||
| Accounts Notes And Loans Receivable [Line Items] | ||
| Fair value financial liabilities measured on recurring basis | 1 | 2 |
| 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 | 132 | 164 |
| 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 | 49 | |
| 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 | 292 | 350 |
| Fair Value Inputs Level 1 [Member] | ||
| Accounts Notes And Loans Receivable [Line Items] | ||
| Fair value financial assets measured on recurring basis | 903 | 955 |
| 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 | 60 | 1 |
| 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 | 44 | 37 |
| 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 | 108 | 158 |
| Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | ||
| Accounts Notes And Loans Receivable [Line Items] | ||
| Fair value financial assets measured on recurring basis | 687 | 750 |
| 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 | 687 | 750 |
| 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 | |
| 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 | 4 | 9 |
| 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 | |
| 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 | 1,979 | 2,026 |
| Fair value financial liabilities measured on recurring basis | 133 | 213 |
| 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 | 23 | 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 Maturities [Member] | ||
| Accounts Notes And Loans Receivable [Line Items] | ||
| Fair value financial assets measured on recurring basis | 1,896 | 1,923 |
| 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 | 95 | 105 |
| 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 | 179 | 195 |
| 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 | 14 | 15 |
| 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 | 1,032 | 975 |
| 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 | 203 | 319 |
| 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 | 98 | 32 |
| 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 | 13 | 20 |
| 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 | 154 | 121 |
| 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 | 108 | 141 |
| 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 | |
| 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 | 5 | 6 |
| 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 | 27 | 40 |
| 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 | 11 | 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 | 8 | 8 |
| 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 | 8 | 7 |
| 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 | 1 | 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 | 132 | 164 |
| 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 | |
| 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 | 0 | 47 |
| Fair Value Inputs Level 3 [Member] | ||
| Accounts Notes And Loans Receivable [Line Items] | ||
| Fair value financial assets measured on recurring basis | 105 | 744 |
| Fair value financial liabilities measured on recurring basis | 394 | 462 |
| 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 | 102 | 110 |
| 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 Maturities [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] | 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 | 0 | 0 |
| 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 | 604 | |
| 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 | 4 | 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 | 77 | 120 |
| 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 | 9 | 6 |
| 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 | 14 |
| 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 | 0 | 0 |
| 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 | 49 | |
| 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 | $ 292 | $ 303 |
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 |
Sep. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Variable Interest Entity Primary Beneficiary [Member] | ||
| Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
| Variable interest entity notes | $ 292 | $ 623 |
| 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] | ||
| Long-term debt | 2,308 | 2,229 |
| Medium-term notes | 489 | 598 |
| Investment agreements | 271 | 269 |
| Total liabilities | 3,068 | 3,369 |
| Gross | (354) | (282) |
| Ceded recoverable (liability) | (39) | (17) |
| 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] | ||
| Variable interest entity notes | 273 | |
| 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] | ||
| Long-term debt | 425 | 631 |
| Medium-term notes | 302 | 396 |
| Investment agreements | 355 | 376 |
| Total liabilities | 1,082 | 1,679 |
| Gross | 508 | 811 |
| Ceded recoverable (liability) | 32 | 45 |
| 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] | ||
| Variable interest entity notes | 276 | |
| 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] | ||
| Long-term debt | 0 | 0 |
| Medium-term notes | 0 | 0 |
| Investment agreements | 0 | 0 |
| Total liabilities | 0 | 0 |
| Gross | 0 | 0 |
| Ceded recoverable (liability) | 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] | ||
| Variable interest entity notes | 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] | ||
| Long-term debt | 425 | 631 |
| Medium-term notes | 0 | 0 |
| Investment agreements | 0 | 0 |
| Total liabilities | 425 | 907 |
| Gross | 0 | 0 |
| Ceded recoverable (liability) | 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] | ||
| Variable interest entity notes | 276 | |
| 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] | ||
| Long-term debt | 0 | 0 |
| Medium-term notes | 302 | 396 |
| Investment agreements | 355 | 376 |
| Total liabilities | 657 | 772 |
| Gross | 508 | 811 |
| Ceded recoverable (liability) | $ 32 | 45 |
| 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] | ||
| Variable interest entity notes | $ 0 |
Fair Value Of Financial Instruments (Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - Fair Value Inputs Level 3 [Member] - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Accounts Notes And Loans Receivable [Line Items] | ||||
| Beginning balance, fair value assets | $ 150 | $ 669 | $ 744 | $ 649 |
| Total gains/(losses) included in earnings, assets | 0 | 5 | 31 | 32 |
| Unrealized gains/(losses) included in OCI, assets | 0 | 0 | 0 | 0 |
| Purchases, assets | 0 | 0 | 0 | 0 |
| Issuances, assets | 0 | 0 | 0 | 0 |
| Settlements, assets | (2) | (5) | (613) | (12) |
| Sales, assets | (47) | 0 | (61) | 0 |
| Transfers into level 3, assets | 4 | 0 | 4 | 0 |
| Transfers out of level 3, assets | 0 | 0 | 0 | 0 |
| Ending balance, fair value assets | 105 | 669 | 105 | 669 |
| Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (1) | 4 | 25 | 30 |
| Change in unrealized gains/(losses) for the period included in OCI for Assets still held | 0 | 0 | 0 | 0 |
| Beginning balance, fair value liabilities | 395 | 432 | 462 | 500 |
| Total (gains)/losses included in earnings, liabilities | (7) | 19 | 31 | 15 |
| Unrealized (gains)/losses included in OCI, liabilities | 10 | (6) | (10) | (56) |
| Purchases, liabilities | 0 | 0 | 0 | 0 |
| Issuances, liabilities | 0 | 0 | 0 | 0 |
| Settlements, liabilities | (4) | (4) | (84) | (18) |
| Sales, liabilities | 0 | 0 | (5) | 0 |
| Transfers into Level 3, liabilities | 0 | 0 | 0 | 0 |
| Transfers out of Level 3, liabilities | 0 | 0 | 0 | 0 |
| Ending balance, fair value liabilities | 394 | 441 | 394 | 441 |
| Change in unrealized (gains)/losses for the period included in earnings for liabilities still held, liabilities | (9) | 17 | 10 | 9 |
| Change in Unrealized (Gains)/ Losses for the Period Included in OCI for Liabilities still held | 10 | (5) | 9 | (54) |
| Residential Prime Financing Receivable [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
| Accounts Notes And Loans Receivable [Line Items] | ||||
| Beginning balance, fair value assets | 129 | 116 | 120 | 136 |
| Total gains/(losses) included in earnings, assets | (3) | 2 | 31 | (11) |
| Unrealized gains/(losses) included in OCI, assets | 0 | 0 | 0 | 0 |
| Purchases, assets | 0 | 0 | 0 | 0 |
| Issuances, assets | 0 | 0 | 0 | 0 |
| Settlements, assets | (2) | (4) | (13) | (11) |
| Sales, assets | (47) | 0 | (61) | 0 |
| Transfers into level 3, assets | 0 | 0 | 0 | 0 |
| Transfers out of level 3, assets | 0 | 0 | 0 | 0 |
| Ending balance, fair value assets | 77 | 114 | 77 | 114 |
| Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (4) | 1 | 21 | (13) |
| Change in unrealized gains/(losses) for the period included in OCI for Assets still held | 0 | 0 | 0 | 0 |
| Loan Repurchase Commitments [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
| Accounts Notes And Loans Receivable [Line Items] | ||||
| Beginning balance, fair value assets | 524 | 604 | 486 | |
| Total gains/(losses) included in earnings, assets | 6 | (4) | 44 | |
| Unrealized gains/(losses) included in OCI, assets | 0 | 0 | 0 | |
| Purchases, assets | 0 | 0 | 0 | |
| Issuances, assets | 0 | 0 | 0 | |
| Settlements, assets | 0 | (600) | 0 | |
| Sales, assets | 0 | 0 | 0 | |
| Transfers into level 3, assets | 0 | 0 | 0 | |
| Transfers out of level 3, assets | 0 | 0 | 0 | |
| Ending balance, fair value assets | 0 | 530 | 0 | 530 |
| Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 6 | 0 | 44 | |
| Change in unrealized gains/(losses) for the period included in OCI for Assets still held | 0 | 0 | 0 | |
| Commercial Mortgage Backed Securities [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
| Accounts Notes And Loans Receivable [Line Items] | ||||
| Beginning balance, fair value assets | 0 | 0 | ||
| Total gains/(losses) included in earnings, assets | 0 | 0 | ||
| Unrealized gains/(losses) included in OCI, assets | 0 | 0 | ||
| Purchases, assets | 0 | 0 | ||
| Issuances, assets | 0 | 0 | ||
| Settlements, assets | 0 | 0 | ||
| Sales, assets | 0 | 0 | ||
| Transfers into level 3, assets | 4 | 4 | ||
| Transfers out of level 3, assets | 0 | 0 | ||
| Ending balance, fair value assets | 4 | 4 | ||
| Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 0 | 0 | ||
| Change in unrealized gains/(losses) for the period included in OCI for Assets still held | 0 | 0 | ||
| Other Asset Backed [Member] | ||||
| Accounts Notes And Loans Receivable [Line Items] | ||||
| Beginning balance, fair value assets | 1 | 1 | ||
| Total gains/(losses) included in earnings, assets | 0 | 0 | ||
| Unrealized gains/(losses) included in OCI, assets | 0 | 0 | ||
| Purchases, assets | 0 | 0 | ||
| Issuances, assets | 0 | 0 | ||
| Settlements, assets | (1) | (1) | ||
| Sales, assets | 0 | 0 | ||
| Transfers into level 3, assets | 0 | 0 | ||
| Transfers out of level 3, assets | 0 | 0 | ||
| Ending balance, fair value assets | 0 | 0 | ||
| Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 0 | 0 | ||
| Change in unrealized gains/(losses) for the period included in OCI for Assets still held | 0 | 0 | ||
| Medium Term Notes [Member] | ||||
| Accounts Notes And Loans Receivable [Line Items] | ||||
| Beginning balance, fair value liabilities | 105 | 96 | 110 | 108 |
| Total (gains)/losses included in earnings, liabilities | (4) | 8 | (13) | 8 |
| Unrealized (gains)/losses included in OCI, liabilities | 1 | (3) | 5 | (15) |
| Purchases, liabilities | 0 | 0 | 0 | 0 |
| Issuances, liabilities | 0 | 0 | 0 | 0 |
| Settlements, liabilities | 0 | 0 | 0 | 0 |
| Sales, liabilities | 0 | 0 | 0 | 0 |
| Transfers into Level 3, liabilities | 0 | 0 | 0 | 0 |
| Transfers out of Level 3, liabilities | 0 | 0 | 0 | 0 |
| Ending balance, fair value liabilities | 102 | 101 | 102 | 101 |
| Change in unrealized (gains)/losses for the period included in earnings for liabilities still held, liabilities | (4) | 8 | (13) | 8 |
| Change in Unrealized (Gains)/ Losses for the Period Included in OCI for Liabilities still held | 1 | (3) | 5 | (15) |
| Credit Derivatives [Member] | ||||
| Accounts Notes And Loans Receivable [Line Items] | ||||
| Beginning balance, fair value liabilities | 8 | 7 | ||
| Total (gains)/losses included in earnings, liabilities | 0 | 1 | ||
| Unrealized (gains)/losses included in OCI, liabilities | 0 | 0 | ||
| Purchases, liabilities | 0 | 0 | ||
| Issuances, liabilities | 0 | 0 | ||
| Settlements, liabilities | 0 | 0 | ||
| Sales, liabilities | 0 | 0 | ||
| Transfers into Level 3, liabilities | 0 | 0 | ||
| Transfers out of Level 3, liabilities | 0 | 0 | ||
| Ending balance, fair value liabilities | 8 | 8 | ||
| Change in unrealized (gains)/losses for the period included in earnings for liabilities still held, liabilities | 0 | 1 | ||
| Change in Unrealized (Gains)/ Losses for the Period Included in OCI for Liabilities still held | 0 | 0 | ||
| Other Derivatives Liabilities [Member] | ||||
| Accounts Notes And Loans Receivable [Line Items] | ||||
| Beginning balance, fair value liabilities | 37 | 49 | 34 | |
| Total (gains)/losses included in earnings, liabilities | 1 | 0 | 4 | |
| Unrealized (gains)/losses included in OCI, liabilities | 0 | 0 | 0 | |
| Purchases, liabilities | 0 | 0 | 0 | |
| Issuances, liabilities | 0 | 0 | 0 | |
| Settlements, liabilities | 0 | (49) | 0 | |
| Sales, liabilities | 0 | 0 | 0 | |
| Transfers into Level 3, liabilities | 0 | 0 | 0 | |
| Transfers out of Level 3, liabilities | 0 | 0 | 0 | |
| Ending balance, fair value liabilities | 0 | 38 | 0 | 38 |
| Change in unrealized (gains)/losses for the period included in earnings for liabilities still held, liabilities | 1 | 0 | 4 | |
| Change in Unrealized (Gains)/ Losses for the Period Included in OCI for Liabilities still held | 0 | 0 | 0 | |
| Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
| Accounts Notes And Loans Receivable [Line Items] | ||||
| Beginning balance, fair value liabilities | 290 | 291 | 303 | 347 |
| Total (gains)/losses included in earnings, liabilities | (3) | 10 | 44 | 2 |
| Unrealized (gains)/losses included in OCI, liabilities | 9 | (3) | (15) | (41) |
| Purchases, liabilities | 0 | 0 | 0 | 0 |
| Issuances, liabilities | 0 | 0 | 0 | 0 |
| Settlements, liabilities | (4) | (4) | (35) | (14) |
| Sales, liabilities | 0 | 0 | (5) | 0 |
| Transfers into Level 3, liabilities | 0 | 0 | 0 | 0 |
| Transfers out of Level 3, liabilities | 0 | 0 | 0 | 0 |
| Ending balance, fair value liabilities | 292 | 294 | 292 | 294 |
| Change in unrealized (gains)/losses for the period included in earnings for liabilities still held, liabilities | (5) | 8 | 23 | (4) |
| Change in Unrealized (Gains)/ Losses for the Period Included in OCI for Liabilities still held | 9 | (2) | 4 | (39) |
| Currency Derivatives [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
| Accounts Notes And Loans Receivable [Line Items] | ||||
| Beginning balance, fair value assets | 8 | 14 | 6 | 8 |
| Total gains/(losses) included in earnings, assets | 1 | (2) | 3 | 4 |
| Unrealized gains/(losses) included in OCI, assets | 0 | 0 | 0 | 0 |
| Purchases, assets | 0 | 0 | 0 | 0 |
| Issuances, assets | 0 | 0 | 0 | 0 |
| Settlements, assets | 0 | 0 | 0 | 0 |
| Sales, assets | 0 | 0 | 0 | 0 |
| Transfers into level 3, assets | 0 | 0 | 0 | 0 |
| Transfers out of level 3, assets | 0 | 0 | 0 | 0 |
| Ending balance, fair value assets | 9 | 12 | 9 | 12 |
| Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 1 | (2) | 3 | 4 |
| Change in unrealized gains/(losses) for the period included in OCI for Assets still held | 0 | 0 | 0 | 0 |
| Other Assets [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
| Accounts Notes And Loans Receivable [Line Items] | ||||
| Beginning balance, fair value assets | 13 | 14 | 14 | 18 |
| Total gains/(losses) included in earnings, assets | 2 | (1) | 1 | (5) |
| Unrealized gains/(losses) included in OCI, assets | 0 | 0 | 0 | 0 |
| Purchases, assets | 0 | 0 | 0 | 0 |
| Issuances, assets | 0 | 0 | 0 | 0 |
| Settlements, assets | 0 | 0 | 0 | 0 |
| Sales, assets | 0 | 0 | 0 | 0 |
| Transfers into level 3, assets | 0 | 0 | 0 | 0 |
| Transfers out of level 3, assets | 0 | 0 | 0 | 0 |
| Ending balance, fair value assets | 15 | 13 | 15 | 13 |
| Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 2 | (1) | 1 | (5) |
| Change in unrealized gains/(losses) for the period included in OCI for Assets still held | $ 0 | 0 | $ 0 | 0 |
| Other Payable [Member] | ||||
| Accounts Notes And Loans Receivable [Line Items] | ||||
| Beginning balance, fair value liabilities | 4 | |||
| Total (gains)/losses included in earnings, liabilities | 0 | |||
| Unrealized (gains)/losses included in OCI, liabilities | 0 | |||
| Purchases, liabilities | 0 | |||
| Issuances, liabilities | 0 | |||
| Settlements, liabilities | (4) | |||
| Sales, liabilities | 0 | |||
| Transfers into Level 3, liabilities | 0 | |||
| Transfers out of Level 3, liabilities | 0 | |||
| Ending balance, fair value liabilities | $ 0 | 0 | ||
| Change in unrealized (gains)/losses for the period included in earnings for liabilities still held, liabilities | 0 | |||
| Change in Unrealized (Gains)/ Losses for the Period Included in OCI for Liabilities still held | $ 0 | |||
Fair Value Of Financial Instruments (Realized And Unrealized Gains And Losses Included In Earnings Pertaining To Level 3 Assets And Liabilities) (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
| Net gains (losses) on financial instruments at fair value and foreign exchange | $ 11 | $ 13 | $ 42 | $ (26) |
| Variable Interest Entity Primary Beneficiary [Member] | ||||
| Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
| Net gains (losses) on financial instruments at fair value and foreign exchange | 4 | (4) | (10) | 34 |
| Fair Value Inputs Level 3 [Member] | Total Gains (Losses) Included in Earnings [Member] | ||||
| Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
| Unrealized gains (losses) on insured derivatives | 0 | (1) | ||
| Net gains (losses) on financial instruments at fair value and foreign exchange | 4 | (9) | 13 | (12) |
| Total revenues | 7 | (14) | 0 | 17 |
| Fair Value Inputs Level 3 [Member] | Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held [Member] | ||||
| Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
| Unrealized gains (losses) on insured derivatives | 0 | (1) | ||
| Net gains (losses) on financial instruments at fair value and foreign exchange | 4 | (9) | 13 | (12) |
| Total revenues | 8 | (13) | 15 | 21 |
| Fair Value Inputs Level 3 [Member] | Variable Interest Entity Primary Beneficiary [Member] | Total Gains (Losses) Included in Earnings [Member] | ||||
| Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
| Net gains (losses) on financial instruments at fair value and foreign exchange | 3 | (5) | (13) | 30 |
| Fair Value Inputs Level 3 [Member] | Variable Interest Entity Primary Beneficiary [Member] | Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held [Member] | ||||
| Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
| Net gains (losses) on financial instruments at fair value and foreign exchange | $ 4 | $ (4) | $ 2 | $ 34 |
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 | 9 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|||||
| Accounts Notes And Loans Receivable [Line Items] | ||||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange | $ 11 | $ 13 | $ 42 | $ (26) | ||||
| Non Variable Interest Entity [Member] | ||||||||
| Accounts Notes And Loans Receivable [Line Items] | ||||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange | 11 | 13 | 42 | (26) | ||||
| Variable Interest Entity [Member] | ||||||||
| Accounts Notes And Loans Receivable [Line Items] | ||||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange | 4 | (4) | (10) | 34 | ||||
| Investments Carried At Fair Value [Member] | ||||||||
| Accounts Notes And Loans Receivable [Line Items] | ||||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange | [1] | (1) | 4 | 5 | (3) | |||
| 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] | 1 | 4 | 3 | 2 | |||
| 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] | (3) | 2 | 31 | (11) | |||
| 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] | 0 | 6 | (4) | 44 | |||
| 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] | 2 | (1) | 1 | (5) | |||
| 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] | 4 | (8) | 13 | (8) | |||
| 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] | $ 3 | $ (11) | $ (47) | $ (1) | |||
| ||||||||
Fair Value Of Financial Instruments (Aggregate Fair Value And Remaining Contractual Principal Balance Outstanding On Fair Value Option) (Detail) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Residential Mortgage Loans [Member] | Loans Receivable [Member] | ||
| Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
| Loans receivable and other instruments, contractual outstanding principal | $ 40 | $ 89 |
| Loans receivable and other instruments, 90 days or more past due, contractual outstanding principal | 138 | 147 |
| Loans receivable and other instruments, fair value | 40 | 89 |
| Loans receivable and other instruments, 90 days or more past due, fair value | 37 | 31 |
| Loans receivable and other instruments, difference | 0 | 0 |
| Loans receivable and other instruments, 90 days or more past due, difference | 101 | 116 |
| Total Loans Receivable and Other Instruments [Member] | Loans Receivable [Member] | ||
| Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
| Loans receivable and other instruments, contractual outstanding principal | 178 | 236 |
| Loans receivable and other instruments, fair value | 77 | 120 |
| Loans receivable and other instruments, difference | 101 | 116 |
| 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 | 918 | 1,117 |
| Long-term debt instruments, fair value | 292 | 350 |
| Long-term debt instruments, difference | 626 | 767 |
| 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 | 116 | 122 |
| Long-term debt instruments, fair value | 102 | 110 |
| Long-term debt instruments, difference | $ 14 | $ 12 |
Investments (Narrative) (Detail) $ in Millions |
9 Months Ended | 12 Months Ended |
|---|---|---|
|
Sep. 30, 2021
USD ($)
security
|
Dec. 31, 2020
USD ($)
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 | $ | $ 282 | $ 282 |
| Number of securities in unrealized loss position for a continuous 12 month period | security | 37 | 42 |
| Rate that a security's fair value is below book value | 5.00% | 5.00% |
| 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 | 11 years | 9 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 | 6 | 9 |
Investments (Amortized Cost And Fair Value Of Available-For-Sale and Held-To-Maturity Investment Portfolios) (Detail) - Fixed Maturities [Member] - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Available For Sale Securities [Abstract] | ||
| Total available-for-sale, amortized cost | $ 2,279 | $ 2,360 |
| Allowance for Credit Losess | 0 | 0 |
| Gross unrealized gains | 134 | 184 |
| Gross unrealized losses | (9) | (5) |
| Total available-for-sale, fair value | 2,404 | 2,539 |
| U S Treasury And Government [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Total available-for-sale, amortized cost | 720 | 775 |
| Allowance for Credit Losess | 0 | 0 |
| Gross unrealized gains | 54 | 75 |
| Gross unrealized losses | (2) | (1) |
| Total available-for-sale, fair value | 772 | 849 |
| US States And Political Subdivisions [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Total available-for-sale, amortized cost | 151 | 162 |
| Allowance for Credit Losess | 0 | 0 |
| Gross unrealized gains | 27 | 32 |
| Gross unrealized losses | 0 | 0 |
| Total available-for-sale, fair value | 178 | 194 |
| Foreign Governments [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Total available-for-sale, amortized cost | 10 | 11 |
| Allowance for Credit Losess | 0 | 0 |
| Gross unrealized gains | 0 | 1 |
| Gross unrealized losses | 0 | 0 |
| Total available-for-sale, fair value | 10 | 12 |
| Corporate Obligations [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Total available-for-sale, amortized cost | 901 | 827 |
| Allowance for Credit Losess | 0 | 0 |
| Gross unrealized gains | 38 | 64 |
| Gross unrealized losses | (5) | (1) |
| Total available-for-sale, fair value | 934 | 890 |
| Residential Mortgage-Backed Agency [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Total available-for-sale, amortized cost | 195 | 305 |
| Allowance for Credit Losess | 0 | 0 |
| Gross unrealized gains | 4 | 8 |
| Gross unrealized losses | (1) | (1) |
| Total available-for-sale, fair value | 198 | 312 |
| Residential Mortgage-Backed Non-Agency [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Total available-for-sale, amortized cost | 82 | 22 |
| Allowance for Credit Losess | 0 | 0 |
| Gross unrealized gains | 10 | 3 |
| Gross unrealized losses | 0 | 0 |
| Total available-for-sale, fair value | 92 | 25 |
| Commercial Mortgage-Backed [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Total available-for-sale, amortized cost | 10 | 17 |
| Allowance for Credit Losess | 0 | 0 |
| Gross unrealized gains | 1 | 1 |
| Gross unrealized losses | 0 | 0 |
| Total available-for-sale, fair value | 11 | 18 |
| Collateralized Debt Obligations [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Total available-for-sale, amortized cost | 119 | 120 |
| Allowance for Credit Losess | 0 | 0 |
| Gross unrealized gains | 0 | 0 |
| Gross unrealized losses | (1) | (2) |
| Total available-for-sale, fair value | 118 | 118 |
| Other Asset-Backed [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Total available-for-sale, amortized cost | 91 | 121 |
| Allowance for Credit Losess | 0 | 0 |
| Gross unrealized gains | 0 | 0 |
| Gross unrealized losses | 0 | 0 |
| Total available-for-sale, fair value | $ 91 | $ 121 |
Investments (Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments) (Detail) - Fixed Maturities [Member] $ in Millions |
Sep. 30, 2021
USD ($)
|
|---|---|
| Available For Sale Securities [Abstract] | |
| Due in one year or less | $ 462 |
| Due after one year through five years | 308 |
| Due after five years through ten years | 321 |
| Due after ten years | 691 |
| Mortgage-Backed and Asset-Backed | 497 |
| Total Available-For-Sale, amortized cost | 2,279 |
| Due in one year or less | 462 |
| Due after one year through five years | 323 |
| Due after five years through ten years | 336 |
| Due after ten years | 773 |
| Mortgage-Backed and Asset-Backed | 510 |
| Total Available-For-Sale, fair value | $ 2,404 |
Investments (Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments) (Detail) - Fixed Maturities [Member] - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Available For Sale Securities [Abstract] | ||
| Less than 12 months, fair value | $ 539 | $ 325 |
| Less than 12 months, unrealized losses | (7) | (3) |
| 12 months or longer, fair value | 62 | 91 |
| 12 months or longer, unrealized losses | (2) | (2) |
| Total available-for-sale, fair value | 601 | 416 |
| Total available-for-sale, unrealized losses | (9) | (5) |
| U S Treasury And Government [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Less than 12 months, fair value | 60 | 99 |
| Less than 12 months, unrealized losses | (1) | (1) |
| 12 months or longer, fair value | 10 | 0 |
| 12 months or longer, unrealized losses | (1) | 0 |
| Total available-for-sale, fair value | 70 | 99 |
| Total available-for-sale, unrealized losses | (2) | (1) |
| State and municipal bonds [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Less than 12 months, fair value | 1 | |
| Less than 12 months, unrealized losses | 0 | |
| 12 months or longer, fair value | 0 | |
| 12 months or longer, unrealized losses | 0 | |
| Total available-for-sale, fair value | 1 | |
| Total available-for-sale, unrealized losses | 0 | |
| Foreign Government Debt [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Less than 12 months, fair value | 6 | 2 |
| Less than 12 months, unrealized losses | 0 | 0 |
| 12 months or longer, fair value | 0 | 0 |
| 12 months or longer, unrealized losses | 0 | 0 |
| Total available-for-sale, fair value | 6 | 2 |
| Total available-for-sale, unrealized losses | 0 | 0 |
| Corporate Obligations [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Less than 12 months, fair value | 287 | 103 |
| Less than 12 months, unrealized losses | (5) | (1) |
| 12 months or longer, fair value | 7 | 7 |
| 12 months or longer, unrealized losses | 0 | 0 |
| Total available-for-sale, fair value | 294 | 110 |
| Total available-for-sale, unrealized losses | (5) | (1) |
| Residential Mortgage Backed Agency [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Less than 12 months, fair value | 83 | 53 |
| Less than 12 months, unrealized losses | (1) | (1) |
| 12 months or longer, fair value | 1 | 0 |
| 12 months or longer, unrealized losses | 0 | 0 |
| Total available-for-sale, fair value | 84 | 53 |
| Total available-for-sale, unrealized losses | (1) | (1) |
| Residential Mortgage Backed Non Agency [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Less than 12 months, fair value | 0 | 2 |
| Less than 12 months, unrealized losses | 0 | 0 |
| 12 months or longer, fair value | 1 | 1 |
| 12 months or longer, unrealized losses | 0 | 0 |
| Total available-for-sale, fair value | 1 | 3 |
| Total available-for-sale, unrealized losses | 0 | 0 |
| Commercial Mortgage Backed Securities [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Less than 12 months, fair value | 2 | 0 |
| Less than 12 months, unrealized losses | 0 | 0 |
| 12 months or longer, fair value | 0 | 5 |
| 12 months or longer, unrealized losses | 0 | 0 |
| Total available-for-sale, fair value | 2 | 5 |
| Total available-for-sale, unrealized losses | 0 | 0 |
| Collateralized Debt Obligations [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Less than 12 months, fair value | 44 | 37 |
| Less than 12 months, unrealized losses | 0 | 0 |
| 12 months or longer, fair value | 43 | 78 |
| 12 months or longer, unrealized losses | (1) | (2) |
| Total available-for-sale, fair value | 87 | 115 |
| Total available-for-sale, unrealized losses | (1) | (2) |
| Other Asset Backed [Member] | ||
| Available For Sale Securities [Abstract] | ||
| Less than 12 months, fair value | 56 | 29 |
| Less than 12 months, unrealized losses | 0 | 0 |
| 12 months or longer, fair value | 0 | 0 |
| 12 months or longer, unrealized losses | 0 | 0 |
| Total available-for-sale, fair value | 56 | 29 |
| Total available-for-sale, unrealized losses | $ 0 | $ 0 |
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 |
Sep. 30, 2021
USD ($)
security
|
|---|---|
| > 5% To 15% [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 | 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 | 2 |
| Fixed-maturity securities held as available-for-sale, amortized cost | $ 5 |
| Available For Sale Securities | $ 4 |
| 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% |
| > 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 | 6 |
| Fixed-maturity securities held as available-for-sale, amortized cost | $ 5 |
| Available For Sale Securities | $ 4 |
Investments (Securities Held In Unrealized Loss Position And Insured By Financial Guarantor) (Detail) - Financial Guarantee [Member] $ in Millions |
Sep. 30, 2021
USD ($)
|
|||
|---|---|---|---|---|
| Schedule Of Investments [Line Items] | ||||
| Total Available-For-Sale, Fair Value | $ 38 | |||
| Gross unrealized losses | (2) | |||
| Loss and loss adjustment expense reserves | 0 | [1] | ||
| Mortgage-backed [Member] | ||||
| Schedule Of Investments [Line Items] | ||||
| Total Available-For-Sale, Fair Value | 1 | |||
| Gross unrealized losses | 0 | |||
| Loss and loss adjustment expense reserves | 0 | [1] | ||
| Corporate Obligations [Member] | ||||
| Schedule Of Investments [Line Items] | ||||
| Total Available-For-Sale, Fair Value | 37 | |||
| Gross unrealized losses | (2) | |||
| Loss and loss adjustment expense reserves | $ 0 | [1] | ||
| ||||
Investments - (Summary of Allowance for Credit Losses on HTM Investments) (Detail) - Variable Interest Entity Primary Beneficiary [Member] - Accounting Standards Update 2016-13 [Member] - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
||||
| Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | |||||
| Beginning balance | $ 23 | $ 37 | [1] | ||
| Current period provision for expected credit losses | (23) | (37) | |||
| Initial allowance recognized for PCD assets | 0 | 0 | |||
| Write- Offs | 0 | 0 | |||
| Recoveries | 0 | 0 | |||
| Ending balance | 0 | 0 | |||
| Corporate Obligations [Member] | |||||
| Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | |||||
| Beginning balance | 23 | 37 | [1] | ||
| Current period provision for expected credit losses | (23) | (37) | |||
| Initial allowance recognized for PCD assets | 0 | 0 | |||
| Write- Offs | 0 | 0 | |||
| Recoveries | 0 | 0 | |||
| Ending balance | $ 0 | $ 0 | |||
| |||||
Investments (Net Realized Gains (Losses) From Sales Of Available-For-Sale Securities) (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Investments [Abstract] | ||||
| Proceeds from sales | $ 73 | $ 293 | $ 469 | $ 862 |
| Available For Sale Securities Realized Gain Loss [Abstract] | ||||
| Gross realized gains | 1 | 22 | 7 | 53 |
| Gross realized losses | $ 0 | $ (2) | $ (8) | $ (14) |
Investments (Portion Of Unrealized Gains And Losses On Equity Investments Held) (Detail) - Equity Securities [Member] - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Gains (losses) on equity investments [Member] | ||||
| Gain (Loss) on Investments [Line Items] | ||||
| Realized investment gains (losses) | $ 0 | $ 4 | $ 5 | $ (1) |
| Gains (losses) on equity investments sold during the period [Member] | ||||
| Gain (Loss) on Investments [Line Items] | ||||
| Realized investment gains (losses) | 1 | 0 | 1 | 0 |
| Gains (losses) on equity investments still held at the end of the period [Member] | ||||
| Gain (Loss) on Investments [Line Items] | ||||
| Realized investment gains (losses) | $ (1) | $ 4 | $ 4 | $ (1) |
Derivative Instruments (Narrative) (Detail) $ in Millions |
Sep. 30, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
|---|---|---|
| Derivative [Line Items] | ||
| Cash collateral posted to derivative counterparties | $ 0 | $ 0 |
| Securities posted as collateral to derivative counterparties | $ 163 | $ 214 |
| Number of credit support annexes | 1 | 1 |
| Fair value of Credit Support Annex | $ 1 | $ 1 |
Derivative Instruments (Credit Derivatives Sold) (Detail) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended |
|---|---|---|
Sep. 30, 2021 |
Dec. 31, 2020 |
|
| Insured Swaps [Member] | ||
| Derivative [Line Items] | ||
| Weighted average remaining expected maturity | 13 years 4 months 24 days | 13 years 10 months 24 days |
| Insurance Operations [Member] | ||
| Derivative [Line Items] | ||
| Derivative notional amount | $ 1,696 | $ 1,743 |
| Total fair value of credit derivatives | (1) | (2) |
| Insurance Operations [Member] | Insured Swaps [Member] | ||
| Derivative [Line Items] | ||
| Derivative notional amount | 1,696 | 1,743 |
| Total fair value of credit derivatives | (1) | (2) |
| Credit Rating Aaa [Member] | Insurance Operations [Member] | ||
| Derivative [Line Items] | ||
| Derivative notional amount | 0 | 0 |
| Total fair value of credit derivatives | 0 | 0 |
| Credit Rating Aaa [Member] | Insurance Operations [Member] | Insured Swaps [Member] | ||
| Derivative [Line Items] | ||
| Derivative notional amount | 0 | 0 |
| Credit Rating Aa [Member] | Insurance Operations [Member] | ||
| Derivative [Line Items] | ||
| Derivative notional amount | 52 | 58 |
| Total fair value of credit derivatives | 0 | 0 |
| Credit Rating Aa [Member] | Insurance Operations [Member] | Insured Swaps [Member] | ||
| Derivative [Line Items] | ||
| Derivative notional amount | 52 | 58 |
| Credit Rating A [Member] | Insurance Operations [Member] | ||
| Derivative [Line Items] | ||
| Derivative notional amount | 1,285 | 1,327 |
| Total fair value of credit derivatives | (1) | (1) |
| Credit Rating A [Member] | Insurance Operations [Member] | Insured Swaps [Member] | ||
| Derivative [Line Items] | ||
| Derivative notional amount | 1,285 | 1,327 |
| Credit Rating Bbb [Member] | Insurance Operations [Member] | ||
| Derivative [Line Items] | ||
| Derivative notional amount | 359 | 358 |
| Total fair value of credit derivatives | 0 | (1) |
| Credit Rating Bbb [Member] | Insurance Operations [Member] | Insured Swaps [Member] | ||
| Derivative [Line Items] | ||
| Derivative notional amount | 359 | 358 |
| Credit Rating Below Investment Grade [Member] | Insurance Operations [Member] | ||
| Derivative [Line Items] | ||
| Derivative notional amount | 0 | 0 |
| Total fair value of credit derivatives | 0 | 0 |
| Credit Rating Below Investment Grade [Member] | Insurance Operations [Member] | Insured Swaps [Member] | ||
| Derivative [Line Items] | ||
| Derivative notional amount | $ 0 | $ 0 |
Derivative Instruments (Total Fair Value Of Company's Derivative Assets And Liabilities By Instrument And Balance Sheet Location, Before Counterparty Netting) (Detail) - Derivative Instrument [Member] - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
|||
|---|---|---|---|---|---|
| Derivative [Line Items] | |||||
| Derivative notional amount | $ 2,382 | $ 2,534 | |||
| Derivative Assets, Not designated, Fair Value | 10 | 7 | |||
| Derivative Liabilities, Not designated, Fair Value | (141) | (225) | |||
| Insured swaps [Member] | |||||
| Derivative [Line Items] | |||||
| Derivative notional amount | 1,696 | 1,743 | |||
| Insured swaps [Member] | Other assets [Member] | |||||
| Derivative [Line Items] | |||||
| Derivative Assets, Not designated, Fair Value | 0 | 0 | |||
| Insured swaps [Member] | Derivative liabilities [Member] | |||||
| Derivative [Line Items] | |||||
| Derivative Liabilities, Not designated, Fair Value | (1) | (2) | [1] | ||
| Interest rate swaps [Member] | |||||
| Derivative [Line Items] | |||||
| Derivative notional amount | 425 | 437 | |||
| Interest rate swaps [Member] | Other assets [Member] | |||||
| Derivative [Line Items] | |||||
| Derivative Assets, Not designated, Fair Value | 1 | 1 | |||
| Interest rate swaps [Member] | Derivative liabilities [Member] | |||||
| Derivative [Line Items] | |||||
| Derivative Liabilities, Not designated, Fair Value | (132) | (164) | |||
| Interest rate swaps-embedded [Member] | |||||
| Derivative [Line Items] | |||||
| Derivative notional amount | 211 | 252 | |||
| Interest rate swaps-embedded [Member] | Medium-term notes [Member] | |||||
| Derivative [Line Items] | |||||
| Derivative Assets, Not designated, Fair Value | 0 | 0 | |||
| Derivative Liabilities, Not designated, Fair Value | (8) | (10) | |||
| Currency swaps-VIE [Member] | |||||
| Derivative [Line Items] | |||||
| Derivative notional amount | 50 | 53 | |||
| Currency swaps-VIE [Member] | Other assets-VIE [Member] | |||||
| Derivative [Line Items] | |||||
| Derivative Assets, Not designated, Fair Value | 9 | 6 | |||
| Currency swaps-VIE [Member] | Derivative liabilities-VIE [Member] | |||||
| Derivative [Line Items] | |||||
| Derivative Liabilities, Not designated, Fair Value | $ 0 | 0 | |||
| All other [Member] | |||||
| Derivative [Line Items] | |||||
| Derivative notional amount | 49 | ||||
| All other [Member] | Other assets [Member] | |||||
| Derivative [Line Items] | |||||
| Derivative Assets, Not designated, Fair Value | 0 | ||||
| All other [Member] | Derivative liabilities [Member] | |||||
| Derivative [Line Items] | |||||
| Derivative Liabilities, Not designated, Fair Value | $ (49) | ||||
| |||||
Derivative Instruments (Effect Of Derivative Instruments On Consolidated Statements Of Operations) (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Derivative [Line Items] | ||||
| Net gain/(loss) recognized in income | $ 6 | $ 4 | $ 25 | $ (54) |
| Unrealized Gains Losses On Insured Derivatives [Member] | Credit Default Swap [Member] | ||||
| Derivative [Line Items] | ||||
| Net gain/(loss) recognized in income | 0 | (1) | ||
| 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 | 5 | 6 | 22 | (53) |
| 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 | 1 | (1) | 3 | 4 |
| 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 | $ 0 | $ (1) | $ 0 | $ (4) |
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Non Variable Interest Entities [Line Items] | ||
| NOL carryforward | $ 3,500 | |
| Foreign tax credit | 61 | |
| Unrecognized Tax Benefits | 0 | $ 0 |
| Valuation allowance on net deferred tax asset | $ 1,000 | $ 966 |
Income Taxes (Income Taxes And Related Effective Tax Rates) (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Disclosure Income Taxes Income Taxes And Related Effective Tax Rates [Abstract] | ||||
| Income (loss) before income taxes | $ (123) | $ (58) | $ (290) | $ (497) |
| Provision (benefit) for income taxes | $ 0 | $ 0 | $ 0 | $ 0 |
| Effective tax rate | 0.00% | 0.00% | 0.00% | 0.00% |
Business Segments (Narrative) (Detail) |
9 Months Ended |
|---|---|
|
Sep. 30, 2021
segments
| |
| Segment Reporting Information [Line Items] | |
| Number of operating segments | 3 |
Business Segments (Summary Of Company's Segment Results) (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|||||||
| Segment Reporting Information [Line Items] | |||||||||||
| Revenues | [1] | $ 50 | $ 34 | $ 114 | $ 116 | ||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange | 11 | 13 | 42 | (26) | |||||||
| Net gains (losses) on extinguishment of debt | 16 | 30 | |||||||||
| Revenues of consolidated VIEs | (5) | 24 | (24) | 89 | |||||||
| Inter-segment revenues | [2] | 0 | 0 | 0 | 0 | ||||||
| Total revenues | 72 | 71 | 162 | 179 | |||||||
| Losses and loss adjustment | 125 | 48 | 232 | 427 | |||||||
| Operating | 23 | 23 | 75 | 68 | |||||||
| Interest | 40 | 43 | 122 | 135 | |||||||
| Expenses of consolidated VIEs | 7 | 15 | 23 | 46 | |||||||
| Inter-segment expenses | [2] | 0 | 0 | 0 | 0 | ||||||
| Total expenses | 195 | 129 | 452 | 676 | |||||||
| Income (loss) before income taxes | (123) | (58) | (290) | (497) | |||||||
| Identifiable assets | 4,816 | 4,816 | $ 5,751 | ||||||||
| Operating Segments [Member] | US Public Finance Insurance [Member] | |||||||||||
| Segment Reporting Information [Line Items] | |||||||||||
| Revenues | [1] | 20 | 21 | 64 | 78 | ||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange | 1 | 23 | 1 | 30 | |||||||
| Net gains (losses) on extinguishment of debt | 0 | 0 | |||||||||
| Revenues of consolidated VIEs | 0 | 0 | 0 | 0 | |||||||
| Inter-segment revenues | [2] | 8 | 7 | 22 | 21 | ||||||
| Total revenues | 29 | 51 | 87 | 129 | |||||||
| Losses and loss adjustment | 68 | 14 | 135 | 134 | |||||||
| Operating | 6 | 3 | 14 | 8 | |||||||
| Interest | 0 | 0 | 0 | 0 | |||||||
| Expenses of consolidated VIEs | 0 | 0 | 0 | 0 | |||||||
| Inter-segment expenses | [2] | 11 | 9 | 36 | 34 | ||||||
| Total expenses | 85 | 26 | 185 | 176 | |||||||
| Income (loss) before income taxes | (56) | 25 | (98) | (47) | |||||||
| Identifiable assets | 3,448 | 3,448 | |||||||||
| Operating Segments [Member] | Corporate Operations [Member] | |||||||||||
| Segment Reporting Information [Line Items] | |||||||||||
| Revenues | [1] | 6 | 4 | 13 | 15 | ||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange | 13 | (6) | 50 | (62) | |||||||
| Net gains (losses) on extinguishment of debt | 16 | 30 | |||||||||
| Revenues of consolidated VIEs | 0 | 0 | 0 | 0 | |||||||
| Inter-segment revenues | [2] | 14 | 16 | 50 | 51 | ||||||
| Total revenues | 49 | 14 | 143 | 4 | |||||||
| Losses and loss adjustment | 0 | 0 | 0 | 0 | |||||||
| Operating | 16 | 16 | 54 | 50 | |||||||
| Interest | 14 | 16 | 42 | 48 | |||||||
| Expenses of consolidated VIEs | 0 | 0 | 0 | 0 | |||||||
| Inter-segment expenses | [2] | 4 | 6 | 14 | 17 | ||||||
| Total expenses | 34 | 38 | 110 | 115 | |||||||
| Income (loss) before income taxes | 15 | (24) | 33 | (111) | |||||||
| Identifiable assets | 826 | 826 | |||||||||
| Operating Segments [Member] | International And Structured Finance Insurance [Member] | |||||||||||
| Segment Reporting Information [Line Items] | |||||||||||
| Revenues | [1] | 24 | 9 | 37 | 23 | ||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange | (3) | (4) | (9) | 6 | |||||||
| Net gains (losses) on extinguishment of debt | 0 | 0 | |||||||||
| Revenues of consolidated VIEs | (5) | 24 | (24) | 89 | |||||||
| Inter-segment revenues | [2] | 2 | (1) | 10 | 7 | ||||||
| Total revenues | 18 | 28 | 14 | 125 | |||||||
| Losses and loss adjustment | 57 | 34 | 97 | 293 | |||||||
| Operating | 1 | 4 | 7 | 10 | |||||||
| Interest | 26 | 27 | 80 | 87 | |||||||
| Expenses of consolidated VIEs | 7 | 15 | 23 | 46 | |||||||
| Inter-segment expenses | [2] | 9 | 7 | 30 | 28 | ||||||
| Total expenses | 100 | 87 | 237 | 464 | |||||||
| Income (loss) before income taxes | (82) | (59) | (223) | (339) | |||||||
| Identifiable assets | 3,034 | 3,034 | |||||||||
| Intersegment Elimination [Member] | |||||||||||
| Segment Reporting Information [Line Items] | |||||||||||
| Revenues | [1] | 0 | 0 | 0 | 0 | ||||||
| Net gains (losses) on financial instruments at fair value and foreign exchange | 0 | 0 | 0 | 0 | |||||||
| Net gains (losses) on extinguishment of debt | 0 | 0 | |||||||||
| Revenues of consolidated VIEs | 0 | 0 | 0 | 0 | |||||||
| Inter-segment revenues | [2] | (24) | (22) | (82) | (79) | ||||||
| Total revenues | (24) | (22) | (82) | (79) | |||||||
| Losses and loss adjustment | 0 | 0 | 0 | 0 | |||||||
| Operating | 0 | 0 | 0 | 0 | |||||||
| Interest | 0 | 0 | 0 | 0 | |||||||
| Expenses of consolidated VIEs | 0 | 0 | 0 | 0 | |||||||
| Inter-segment expenses | [2] | (24) | (22) | (80) | (79) | ||||||
| Total expenses | (24) | (22) | (80) | (79) | |||||||
| Income (loss) before income taxes | 0 | $ 0 | (2) | $ 0 | |||||||
| Identifiable assets | [3] | $ (2,492) | $ (2,492) | ||||||||
| |||||||||||
Earnings Per Share (Narrative) (Detail) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Antidilutive Shares [Abstract] | ||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.9 | 1.0 | 0.9 | 0.9 |
Earnings Per Share (Computation Of Basic And Diluted Earnings Per Share) (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||||
|---|---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|||
| Basic earnings per share: | ||||||
| Net income (loss) | $ (123) | $ (58) | $ (290) | $ (497) | ||
| Less: undistributed earnings allocated to participating securities | 0 | 0 | 0 | 0 | ||
| Net income (loss) available to common shareholders | $ (123) | $ (58) | $ (290) | $ (497) | ||
| Basic weighted average shares | [1] | 49,552,796 | 52,588,533 | 49,434,177 | 62,391,826 | |
| Net income (loss) per basic common share | $ (2.49) | $ (1.11) | $ (5.87) | $ (7.97) | ||
| Diluted earnings per share: | ||||||
| Net income (loss) | $ (123) | $ (58) | $ (290) | $ (497) | ||
| Less: undistributed earnings allocated to participating securities | 0 | 0 | 0 | 0 | ||
| Net income (loss) available to common shareholders | $ (123) | $ (58) | $ (290) | $ (497) | ||
| Diluted weighted average shares | 49,552,796 | 52,588,533 | 49,434,177 | 62,391,826 | ||
| Net income (loss) per diluted common share | $ (2.49) | $ (1.11) | $ (5.87) | $ (7.97) | ||
| Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect | 4,900,000 | 4,800,000 | 4,900,000 | 4,800,000 | ||
| ||||||
Accumulated Other Comprehensive Income (Changes In The Components Of AOCI) (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Beginning balance | $ 115 | |||
| Other comprehensive income (loss) before reclassifications | (50) | |||
| Amounts reclassified from AOCI | 25 | |||
| Total other comprehensive income (loss) | $ (13) | $ 1 | (25) | $ 132 |
| Ending balance | 90 | 90 | ||
| Unrealized gains (losses) on AFS, net [Member] | ||||
| Beginning balance | 176 | |||
| Other comprehensive income (loss) before reclassifications | (42) | |||
| Amounts reclassified from AOCI | (11) | |||
| Total other comprehensive income (loss) | (53) | |||
| Ending balance | 123 | 123 | ||
| Foreign currency translation, net [Member] | ||||
| Beginning balance | (10) | |||
| Other comprehensive income (loss) before reclassifications | 3 | |||
| Amounts reclassified from AOCI | 0 | |||
| Total other comprehensive income (loss) | 3 | |||
| Ending balance | (7) | (7) | ||
| Instrument-specific credit risk of liabilities measured at fair value, net [Member] | ||||
| Beginning balance | (51) | |||
| Other comprehensive income (loss) before reclassifications | (11) | |||
| Amounts reclassified from AOCI | 36 | |||
| Total other comprehensive income (loss) | 25 | |||
| Ending balance | $ (26) | $ (26) | ||
Accumulated Other Comprehensive Income (Details Of The Reclassification From AOCI) (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Net gains (losses) on financial instruments at fair value and foreign exchange | $ 11 | $ 13 | $ 42 | $ (26) |
| Income (loss) before income taxes | (123) | (58) | (290) | (497) |
| Net income (loss) | (123) | (58) | (290) | (497) |
| Amounts reclassified from AOCI [Member] | ||||
| Net income (loss) | (9) | 7 | (25) | 12 |
| Unrealized gains (losses) on AFS, net [Member] | Amounts reclassified from AOCI [Member] | ||||
| Net gains (losses) on financial instruments at fair value and foreign exchange | 3 | 9 | 11 | 17 |
| Income (loss) before income taxes | 3 | 9 | 11 | 17 |
| Instrument-specific credit risk of liabilities measured at fair value, net [Member] | Amounts reclassified from AOCI [Member] | ||||
| Net gains (losses) on financial instruments at fair value and foreign exchange | $ (12) | $ (2) | $ (36) | $ (5) |
Commitments and Contingencies (Narrative) (Detail) $ in Millions |
9 Months Ended | |
|---|---|---|
|
Feb. 10, 2021
USD ($)
|
Sep. 30, 2021
USD ($)
Lawsuits
|
|
| Commitments And Contingencies [Line Items] | ||
| Other material lawsuits pending | Lawsuits | 0 | |
| Credit Suisse [Member] | ||
| Commitments And Contingencies [Line Items] | ||
| Damages Sought Value | $ 604 | |
| Damages Paid Value | $ 600 | |
| Fuel Line Lenders [Member] | ||
| Commitments And Contingencies [Line Items] | ||
| PREPA working capital | $ 700 |
Commitments and Contingencies (Lease Disclosures) (Detail) $ in Millions |
Sep. 30, 2021
USD ($)
|
|---|---|
| Operating lease weighted average remaining lease term | 8 years 7 months 6 days |
| Operating lease weighted average discount rate percent | 7.50% |
| Operating leases future minimum payments due | $ 26 |
| Other Assets [Member] | |
| Operating lease right of use asset | 19 |
| Other Liabilities [Member] | |
| Operating lease liability | $ 19 |
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