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 |
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Item 1. |
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31 |
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34 |
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Item 2. |
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Item 3. |
61 |
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Item 4. |
61 |
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Item 1. |
62 |
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Item 1A. |
62 |
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Item 2. |
64 |
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Item 6. |
64 |
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65 |
• |
increased credit losses or impairments on public finance obligations that National Public Finance Guarantee Corporation (“National”) insures issued by state, local and territorial governments and finance authorities and other providers of public services, located in the U.S. or abroad, that are experiencing fiscal stress; |
• |
the possibility that loss reserve estimates are not adequate to cover potential claims; |
• |
a disruption in the cash flow from National or an inability to access the capital markets and our exposure to significant fluctuations in liquidity and asset values in the global credit markets as a result of collateral posting requirements; |
• |
our ability to fully implement our strategic plan; |
• |
the possibility that MBIA Insurance Corporation will have inadequate liquidity or resources to timely pay claims as a result of higher than expected losses on certain insured transactions or as a result of a delay or failure in collecting expected recoveries, which could lead the New York State Department of Financial Services (“NYSDFS”) to put MBIA Insurance Corporation into a rehabilitation or liquidation proceeding under Article 74 of the New York Insurance Law and/or take such other actions as the NYSDFS may deem necessary to protect the interests of MBIA Insurance Corporation’s policyholders; |
• |
the impact on our insured portfolios or business operations caused by the global spread of the novel coronavirus COVID-19; |
• |
deterioration in the economic environment and financial markets in the United States or abroad, real estate market performance, credit spreads, interest rates and foreign currency levels; and |
• |
the effects of changes to governmental regulation, including insurance laws, securities laws, tax laws, legal precedents and accounting rules. |
March 31, 2022 |
December 31, 2021 | |||||||
Assets |
|
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Investments: |
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Fixed-maturity securities held as available-for-sale, |
$ |
$ |
||||||
Investments carried at fair value |
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Investments pledged as collateral, at fair value (amortized cost $ |
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Short-term investments, at fair value (amortized cost $ |
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Total investments |
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Cash and cash equivalents |
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Premiums receivable (net of allowance for credit losses $ |
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Deferred acquisition costs |
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Insurance loss recoverable |
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Other assets |
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Assets of consolidated variable interest entities: |
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Cash |
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Investments carried at fair value |
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Loans receivable at fair value |
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Other assets |
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Total assets |
$ |
$ |
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Liabilities and Equity |
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Liabilities: |
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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 |
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Derivative liabilities |
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Other liabilities |
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Liabilities of consolidated variable interest entities: |
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Variable interest entity notes carried at fair value |
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Total liabilities |
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Commitments and contingencies (Refer to Note 13: Commitments and Contingencies) |
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Equity: |
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Preferred stock, par value $ |
||||||||
Common stock, par value $ |
||||||||
Additional paid-in capital |
||||||||
Retained earnings (deficit) |
( |
) |
( |
) | ||||
Accumulated other comprehensive income (loss), net of tax of $ |
( |
) |
||||||
Treasury stock, at cost - |
( |
) |
( |
) | ||||
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Total shareholders’ equity of MBIA Inc. |
( |
) |
( |
) | ||||
Preferred stock of subsidiary |
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Total equity |
( |
) |
( |
) | ||||
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Total liabilities and equity |
$ |
$ |
||||||
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Three Months Ended March 31, | ||||||||
2022 |
2021 | |||||||
Revenues: |
||||||||
Premiums earned: |
||||||||
Scheduled premiums earned |
$ |
$ |
||||||
Refunding premiums earned |
||||||||
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Premiums earned (net of ceded premiums of $ |
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Net investment income |
||||||||
Net realized investment gains (losses) |
( |
) |
( |
) | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
||||||||
Other net realized gains (losses) |
( |
) |
||||||
Revenues of consolidated variable interest entities: |
||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
( |
) |
( |
) | ||||
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Total revenues |
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Expenses: |
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Losses and loss adjustment |
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Amortization of deferred acquisition costs |
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Operating |
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Interest |
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Expenses of consolidated variable interest entities: |
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Operating |
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Interest |
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Total expenses |
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Income (loss) before income taxes |
( |
) |
( |
) | ||||
Provision (benefit) for income taxes |
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| |||
Net income (loss) |
$ |
( |
) |
$ |
( |
) | ||
|
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| |||
Net income (loss) per common share: |
||||||||
Basic |
$ |
( |
) |
$ |
( |
) | ||
Diluted |
$ |
( |
) |
$ |
( |
) | ||
Weighted average number of common shares outstanding: |
||||||||
Basic |
||||||||
Diluted |
Three Months Ended March 31, | ||||||||
2022 |
2021 | |||||||
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 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) |
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Total other comprehensive income (loss) |
( |
) |
( |
) | ||||
|
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|
|
| |||
Comprehensive income (loss) |
$ |
( |
) |
$ |
( |
) | ||
|
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|
|
|
Three Months Ended March 31, | ||||||||
2022 |
2021 | |||||||
Common shares |
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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 |
$ |
( |
) |
$ |
( |
) | ||
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 |
( |
) |
( |
) | ||||
Other |
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|
|
|
|
|
| |||
Balance at end of period |
( |
) |
( |
) | ||||
Treasury stock amount |
||||||||
Balance at beginning of period |
$ |
( |
) |
$ |
( |
) | ||
Other |
||||||||
|
|
|
|
|
| |||
Balance at end of period |
$ |
( |
) |
$ |
( |
) | ||
Total shareholders’ equity of MBIA Inc. |
||||||||
Balance at beginning of period |
$ |
( |
) |
$ |
||||
Period change |
( |
) |
( |
) | ||||
|
|
|
|
|
| |||
Balance at end of period |
$ |
( |
) |
$ |
( |
) | ||
|
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|
| |||
Preferred stock of subsidiary shares |
||||||||
Balance at beginning and end of period |
||||||||
Preferred stock of subsidiary amount |
||||||||
Balance at beginning and end of period |
$ |
$ |
||||||
|
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|
|
|
| |||
Total equity |
$ |
( |
) |
$ |
( |
) | ||
|
|
|
|
|
|
Three Months Ended March 31, | ||||||||
2022 |
2021 | |||||||
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 expenses paid and other operating |
( |
) |
( |
) | ||||
Interest paid, net of interest converted to principal |
( |
) |
( |
) | ||||
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Net cash provided (used) by operating activities |
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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 |
( |
) |
( |
) | ||||
Paydowns and maturities of loans receivable |
||||||||
(Payments) proceeds for derivative settlements |
( |
) |
( |
) | ||||
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| |||
Net cash provided (used) by investing activities |
( |
) |
( |
) | ||||
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| |||
Cash flows from financing activities: |
||||||||
Proceeds from investment agreements |
||||||||
Principal paydowns of investment agreements |
( |
) |
||||||
Principal paydowns of variable interest entity notes |
( |
) |
( |
) | ||||
Principal paydowns of long-term debt |
( |
) |
||||||
Purchases of treasury stock |
( |
) |
( |
) | ||||
|
|
|
|
|
| |||
Net cash provided (used) by financing activities |
( |
) |
( |
) | ||||
|
|
|
|
|
| |||
Effect of exchange rate changes on cash and cash equivalents |
||||||||
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: |
||||||||
Accrued investment income |
( |
) |
||||||
Unearned premium revenue |
( |
) |
( |
) | ||||
Loss and loss adjustment expense reserves |
( |
) |
||||||
Insurance loss recoverable |
||||||||
Loan repurchase commitments |
||||||||
Accrued interest payable |
||||||||
Accrued expenses |
( |
) |
( |
) | ||||
Net realized investment gains (losses) |
||||||||
Net (gains) losses on financial instruments at fair value and foreign exchange |
( |
) |
( |
) | ||||
Other net realized (gains) losses |
||||||||
Other operating |
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|
|
|
| |||
Total adjustments to net income (loss) |
||||||||
|
|
|
|
|
| |||
Net cash provided (used) by operating activities |
$ |
$ |
||||||
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|
|
|
|
March 31, 2022 | ||||||||||||||||||||||||
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 |
||||||||||||||||||||||||
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Total global structured finance |
||||||||||||||||||||||||
Global public finance |
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Total insurance |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
|
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|
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|
|
|
|
December 31, 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 |
||||||||||||||||||||||||
|
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|
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Total global structured finance |
||||||||||||||||||||||||
Global public finance |
||||||||||||||||||||||||
|
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|
|||||||||||||
Total insurance |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2022 |
As of December 31, 2021 | |||||||||||||||
In millions |
Balance Sheet Line Item |
Balance Sheet Line Item | ||||||||||||||
Insurance loss recoverable |
Loss and LAE reserves (1) |
Insurance loss recoverable |
Loss and LAE reserves (1) | |||||||||||||
U.S. Public Finance Insurance |
$ |
$ |
$ |
$ |
||||||||||||
International and Structured Finance Insurance: |
||||||||||||||||
Before VIE eliminations |
||||||||||||||||
VIE eliminations |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
|
|
|
|
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|
|
|
|
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|
| |||||
Total international and structured finance insurance |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
Changes in Loss and LAE Reserves for the Three Months Ended March 31, 2022 |
|||||||||||
Gross Loss and LAE Reserves as of December 31, 2021 (1) |
Loss Payments |
Accretion of Claim Liability Discount |
Changes in Discount Rates |
Changes in Assumptions |
Changes in Unearned Premium Revenue |
Gross Loss and LAE Reserves as of March 31, 2022 (1) | ||||||
$ |
$( |
$ |
$( |
$ |
$ |
$ | ||||||
|
|
|
|
|
|
|
(1) - | Includes changes in amount and timing of estimated payments and recoveries. |
Changes in Insurance Loss Recoverable |
||||||||||||||||||||||||
for the Three Months Ended March 31, 2022 |
||||||||||||||||||||||||
In millions |
Gross Recoverable as of December 31, 2021 |
Collections for Cases |
Accretion of Recoveries |
Changes in Discount Rates |
Changes in Assumptions |
Gross Recoverable as of March 31, 2022 | ||||||||||||||||||
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 March 31, 2022 |
Valuation Techniques |
Unobservable Input |
Range (Weighted Average) | ||||||||
Assets of consolidated VIEs: |
||||||||||||
Loans receivable at fair value |
$ |
Market prices of similar liabilities adjusted for financial |
Impact of financial guarantee |
% ( %) (1) |
||||||||
Liabilities of consolidated VIEs: |
||||||||||||
Variable interest entity notes |
Market 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, 2021 |
Valuation Techniques |
Unobservable Input |
Range (Weighted Average) | ||||||||
Assets of consolidated VIEs: |
||||||||||||
Loans receivable at fair value |
$ |
Market prices of similar liabilities adjusted for financial |
Impact of financial guarantee |
% ( %) (1) |
||||||||
Liabilities of consolidated VIEs: |
||||||||||||
Variable interest entity notes |
Market 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. |
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 March 31, 2022 | ||||||||||||
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 |
||||||||||||||||
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 credit derivatives |
||||||||||||||||
Non-insured 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, 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 interest rate derivatives |
||||||||||||||||
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 credit derivatives |
||||||||||||||||
Non-insured 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) |
Fair Value Balance as of March 31, 2022 |
Carry Value Balance as of March 31, 2022 | |||||||||||||||
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, 2021 |
Carry Value Balance as of December 31, 2021 | |||||||||||||||
Liabilities: |
||||||||||||||||||||
Long-term debt |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
Medium-term notes |
||||||||||||||||||||
Investment agreements |
||||||||||||||||||||
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 March 31, 2022 |
Change in Unrealized Gains (Losses) for the Period Included in OCI for Assets still held as of March 31, 2022 (1) | ||||||||||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage- backed non-agency |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
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 OCI (2) |
Purchases |
Issuances |
Settlements |
Sales |
Transfers into Level 3 |
Transfers out of Level 3 |
Ending Balance |
Change in Unrealized (Gains) Losses for the Period Included in Earnings for Liabilities still held as of March 31, 2022 |
Change in Unrealized (Gains) Losses for the Period Included in OCI for Liabilities still held as of March 31, 2022 (2) | ||||||||||||||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||||||||||||||||||
Medium-term notes |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||||||||||||||||||
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 Period |
Total Gains / (Losses) Included in Earnings |
Unrealized Gains / (Losses) Included in OCI (1) |
Purchases |
Issuances |
Settlements |
Sales |
Transfers into Level 3 |
Transfers out of Level 3 |
Ending Balance |
Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets still held as of March 31, 2021 |
Change in Unrealized Gains (Losses) for the Period Included in OCI for Assets still held as of March 31, 2021 (1) | ||||||||||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||
Loans receivable-residential |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||||||
Loan repurchase |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||
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 March 31, 2021 |
Change in Unrealized (Gains) Losses for the Period Included in OCI for Liabilities still held as of March 31, 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. |
Three Months Ended March 31, 2022 |
Three Months Ended March 31, 2021 | |||||||||||||||
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 March 31, 2022 |
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 March 31, 2021 | ||||||||||||
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 |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
Three Months Ended March 31, | ||||||||
In millions |
2022 |
2021 | ||||||
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 March 31, 2022 |
As of December 31, 2021 | |||||||||||||||||||||||
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 |
$ |
$ |
$ |
$ |
$ |
$ |
March 31, 2022 | ||||||||||||||||||||
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, 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 |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
$ |
$ |
||||||
|
|
|
|
|
|
March 31, 2022 | ||||||||||||||||||||||||
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, 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 |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFS Securities | ||||||||||||
Percentage of Fair Value Below Book Value |
Number of Securities |
Book Value (in millions) |
Fair Value (in millions) | |||||||||
> |
$ |
$ |
||||||||||
> |
||||||||||||
> |
||||||||||||
> |
||||||||||||
|
|
|
|
|
|
|
|
| ||||
Total |
$ |
$ |
||||||||||
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||
In millions |
Balance as of December 31, 2021 |
Additions not previously recorded |
Additions arising from PCD Assets |
Reductions from Securities Sold |
Reductions- Intent to sell or MLTN |
Change in Allowance Previously Recorded |
Write Offs |
Recoveries |
Balance as of March 31, 2022 | |||||||||||||||||||||||||||
AFS Investments |
||||||||||||||||||||||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||||||||||||||||||||||
Corporate obligations |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Allowance on AFS investments |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 March 31, | ||||||||
In millions |
2022 |
2021 | ||||||
Proceeds from sales |
$ |
$ |
||||||
Gross realized gains |
$ |
$ |
||||||
Gross realized losses |
$ |
( |
) |
$ |
( |
) |
In millions |
Three Months Ended March 31, | |||||||
2022 |
2021 | |||||||
Net gains and (losses) recognized during the period on equity and trading securities |
$ |
( |
) |
$ |
||||
Less: |
||||||||
Net gains and (losses) recognized during the period on equity and trading securities sold during the period |
||||||||
|
|
|
|
|
| |||
Unrealized gains and (losses) recognized during the period on equity and trading securities still held at the reporting date |
$ |
( |
) |
$ |
||||
|
|
|
|
|
|
$ in millions |
As of March 31, 2022 | |||||||||||||||||||||||||||||||
Credit Derivatives Sold |
Weighted Average Remaining Expected Maturity |
AAA |
AA |
A |
BBB |
Below Investment Grade |
Total Notional |
Fair Value Asset (Liability) | ||||||||||||||||||||||||
Insured swaps |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) | |||||||||||||||||||||||
Total fair value |
$ |
$ |
$ |
( |
) |
$ |
$ |
- |
$ |
( |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in millions |
As of December 31, 2021 | |||||||||||||||||||||||||||||||
Credit Derivatives Sold |
Weighted Average Remaining Expected Maturity |
AAA |
AA |
A |
BBB |
Below Investment Grade |
Total Notional |
Fair Value Asset (Liability) | ||||||||||||||||||||||||
Insured swaps |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
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 |
||||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||
Total non-designated derivatives |
$ |
$ |
$ |
( |
) | |||||||||||||||
|
|
|
|
|
|
|
|
|
(1) - | In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Company’s embedded derivative instruments is determined by the location of the related host contract. |
In millions |
||||||||||
Derivatives Not Designated as |
Three Months Ended March 31, |
|||||||||
Hedging Instruments |
Location of Gain (Loss) Recognized in Income on Derivative |
2022 |
2021 |
|||||||
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 |
|||||||||
|
|
|
|
|
| |||||
Total |
$ |
$ |
||||||||
|
|
|
|
|
|
Three Months Ended March 31, | ||||||||
In millions |
2022 |
2021 | ||||||
Income (loss) before income taxes |
$ |
( |
) |
$ |
( |
) | ||
Provision (benefit) for income taxes |
$ |
$ |
||||||
Effective tax rate |
• | MBIA Inc.; |
• | GFL; and |
• | MZ Funding LLC. |
Three Months Ended March 31, 2022 | ||||||||||||||||||||
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 |
( |
) |
||||||||||||||||||
Amortization of deferred acquisition costs and operating |
||||||||||||||||||||
Interest |
||||||||||||||||||||
Expenses of consolidated VIEs |
||||||||||||||||||||
Inter-segment expenses (2) |
( |
) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total expenses |
( |
) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Income (loss) before income taxes |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
( |
) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Identifiable assets |
$ |
$ |
$ |
$ |
( |
) (3) |
$ |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - |
Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses). |
(2) - |
Primarily represents intercompany service charges and intercompany net investment income and expenses. |
(3) - |
Consists principally of intercompany reinsurance balances. |
Three Months Ended March 31, 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 |
( |
) |
( |
) |
||||||||||||||||
Revenues of consolidated VIEs |
( |
) |
( |
) | ||||||||||||||||
Inter-segment revenues (2) |
( |
) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total revenues |
( |
) |
( |
) |
||||||||||||||||
Losses and loss adjustment |
( |
) |
||||||||||||||||||
Amortization |
||||||||||||||||||||
Interest |
||||||||||||||||||||
Expenses of consolidated VIEs |
||||||||||||||||||||
Inter-segment expenses (2) |
( |
) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total expenses |
( |
) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Income (loss) before income taxes |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
( |
) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - |
Consists of net premiums earned, net investment income, net realized investment gains (losses) and fees and reimbursements. |
(2) - |
Primarily represents intercompany service charges and intercompany net investment income and expense. |
Three Months Ended March 31, | ||||||||
In millions except per share amounts |
2022 |
2021 | ||||||
Basic earnings per share: |
||||||||
Net income (loss) available to common shareholders |
$ |
( |
) |
$ |
( |
) | ||
Basic weighted average shares (1) |
||||||||
|
|
|
|
|
| |||
Net income (loss) per basic common share |
$ |
( |
) |
$ |
( |
) | ||
|
|
|
|
|
| |||
Diluted earnings per share: |
||||||||
Net income (loss) available to common shareholders |
$ |
( |
) |
$ |
( |
) | ||
Diluted weighted average shares (1) |
||||||||
|
|
|
|
|
| |||
Net income (loss) per diluted common share |
$ |
( |
) |
$ |
( |
) | ||
|
|
|
|
|
| |||
Potentially |
(1) - | Includes |
Unrealized |
Instrument-Specific |
|||||||||||||||
Gains (Losses) |
Credit Risk of |
|||||||||||||||
on AFS |
Foreign Currency |
Liabilities Measured |
||||||||||||||
In millions |
Securities, Net |
Translation, Net |
at Fair Value, Net |
Total | ||||||||||||
Balance, December 31, 2021 |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||
Other comprehensive income (loss) before reclassifications |
( |
) |
( |
) |
( |
) | ||||||||||
Amounts reclassified from AOCI |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net period other comprehensive income (loss) |
( |
) |
( |
) |
( |
) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Balance, March 31, 2022 |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
Amounts Reclassified from AOCI |
|||||||||
Three Months Ended March 31, |
||||||||||
Details about AOCI Components |
2022 |
2021 |
Affected Line Item on the Consolidated Statements of Operations | |||||||
Unrealized gains (losses) on AFS securities: |
||||||||||
Realized |
$ |
$ |
Net realized investment gains (losses) | |||||||
|
|
|
|
|
|
|||||
Total unrealized gains (losses) on AFS securities |
||||||||||
Instrument-specific credit risk of liabilities: |
||||||||||
Settlement of liabilities |
( |
) |
( |
) |
Net gains (losses) on financial instruments at fair value and foreign exchange | |||||
|
|
|
|
|
|
|||||
Total reclassifications for the period |
$ |
( |
) |
$ |
( |
) |
Net income (loss) | |||
|
|
|
|
|
|
$ in millions |
As of March 31, 2022 |
Balance Sheet Location |
||||||
Right-of-use |
$ |
assets |
||||||
Lease liability |
$ |
liabilities |
||||||
Weighted average remaining lease term (years) |
||||||||
Discount rate used for operating leases |
||||||||
Total future minimum lease payments |
$ |
• | 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 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 Puerto Rico Commonwealth GO (“GO”) and PBA Title III cases. The GO PSA was effective and implemented on March 15, 2022 and among other things, National received cash, including certain fees, newly issued General Obligation bonds (“GO Bonds”) and a contingent value instrument (“CVI”) totaling approximately $1.0 billion. Subsequent to the GO PSA implementation, National made $277 million of acceleration and commutation payments pursuant to the GO PSA. Accordingly, National’s GO and PBA gross par outstanding and debt service outstanding have been reduced to zero from approximately $380 million and $495 million, respectively. |
• | On January 1, 2022, 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 $47 million. As of March 31, 2022, National had $2.1 billion of debt service outstanding related to Puerto Rico. |
• | In January of 2022, National sold an additional $231 million of Puerto Rico Electric Power Authority (“PREPA”) bankruptcy claims related to insurance claims paid on matured National-insured PREPA bonds. As of March 31, 2022, National has sold approximately 35% of National’s par claims to PREPA. These sales monetized a portion of National’s salvage asset and reduced potential volatility and ongoing risk of remediation around the PREPA credit. Currently, National does not have a material amount of additional par claims to PREPA that have matured and can be sold. |
• | On March 8, 2022, the Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”) and PREPA terminated the RSA under a provision permitting termination if an order approving the RSA had not been entered by September 30, 2019. On April 8, 2022, the Court appointed a new panel of judges to commence mediation among the Oversight Board, the Ad Hoc creditor group as holders of PREPA Senior Bonds, Assured, National and Syncora (the “April 8 Order”). The April 8 Order provides that mediation will terminate on June 1, 2022 unless the mediation team extends the time to July 1, 2022. The April 8 Order further provides that nothing therein acts as a stay of any pending adversary proceedings or contested matters in the PREPA case, subject to the Court’s pending request to the Oversight Board for a status report by June 1, 2022. |
• | 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. On May 2, 2022, the Oversight Board filed the Title III Plan of Adjustment for the Puerto Rico Highways and Transportation Authority (the “HTA Plan”), together with the Disclosure Statement and supporting documents. National expects to receive during the second quarter of 2022 its allocable portion of cash and CVI relating to HTA, which aggregate amounts to be distributed to bondholders totals approximately $264 million and $2.2 billion, respectively. In addition, National shall receive its allocable portion of approximately $1.2 billion of newly issued HTA bonds (or cash equivalent) following the effective date of the HTA Plan. |
Three Months Ended March 31, | ||||||||
In millions except for per share, percentage and share amounts |
2022 |
2021 | ||||||
Total revenues |
$ |
40 |
$ |
72 |
||||
Total expenses |
113 |
178 |
||||||
|
|
|
|
|
| |||
Income (loss) before income taxes |
(73) |
(106) |
||||||
Provision (benefit) for income taxes |
- |
- |
||||||
|
|
|
|
|
| |||
Net income (loss) |
$ |
(73) |
$ |
(106) |
||||
|
|
|
|
|
| |||
Net income (loss) per basic and diluted common share |
$ |
(1.48) |
$ |
(2.16) |
||||
Effective tax rate |
0.0% |
0.0% |
||||||
Adjusted net income (loss) (1) |
$ |
(96) |
$ |
(116) |
||||
Adjusted net income (loss) per diluted share (1) |
$ |
(1.94) |
$ |
(2.36) |
||||
Weighted average basic and diluted common shares outstanding |
49,631,448 |
49,258,110 |
(1) | - Adjusted net income (loss) and adjusted net income (loss) per diluted share are non-GAAP measures. Refer to the following Non-GAAP Adjusted Net Income (Loss) 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. |
• | Mark-to-market mark-to-market |
• | Foreign exchange gains (losses) non-functional currencies. Given the possibility of volatility in foreign exchange markets, we exclude the impact of foreign exchange gains (losses) to provide a measurement of comparability of adjusted net income (loss). |
• | Net realized investment gains (losses), impaired securities and extinguishment of debt |
• | Income taxes pre-tax adjustments, if applicable, consistent with our consolidated effective tax rate. |
Three Months Ended March 31, |
||||||||
In millions except share and per share amounts |
2022 |
2021 |
||||||
Net income (loss) |
$ |
(73 |
) |
$ |
(106 |
) | ||
Less: adjusted net income (loss) adjustments: |
||||||||
Income (loss) before income taxes of our international and structured finance insurance segment and eliminations |
(5 |
) |
(44 |
) | ||||
Adjustments to income before income taxes of our U.S. public finance insurance and corporate segments: |
||||||||
Mark-to-market (1) |
24 |
38 |
||||||
Foreign exchange gains (losses) (1) |
6 |
17 |
||||||
Net realized investment gains (losses) |
(2 |
) |
(1 |
) | ||||
Adjusted net income adjustment to the (provision) benefit for income tax |
- |
- |
||||||
|
|
|
|
|||||
Adjusted net income (loss) |
$ |
(96 |
) |
$ |
(116 |
) | ||
|
|
|
|
|||||
Adjusted net income (loss) per diluted common share (2) |
(1.94 |
) |
(2.36 |
) |
(1) - Reported | within “Net gains (losses) on financial instruments at fair value and foreign exchange” on the Company’s consolidated statements of operations. |
(2) - Adjusted | net income (loss) per diluted common share is calculated by taking adjusted net income (loss) divided by the GAAP weighted average number of diluted common shares outstanding. |
• | Negative Book value of MBIA Corp. |
• | Net unrealized (gains) losses on available-for-sale |
• | Net unearned premium revenue in excess of expected losses of National |
As of March 31, |
As of December 31, | |||||||
In millions except share and per share amounts |
2022 |
2021 | ||||||
Total shareholders’ equity of MBIA Inc. |
$ |
(565 |
) |
$ |
(313 |
) | ||
Common shares outstanding |
54,857,000 |
54,556,112 |
||||||
GAAP book value per share |
$ |
(10.29 |
) |
$ |
(5.73 |
) | ||
Management’s adjustments described above: |
||||||||
Remove negative book value per share of MBIA Corp. |
(36.16 |
) |
(35.94 |
) | ||||
Remove net unrealized gains (losses) on available-for-sale |
(0.80 |
) |
2.02 |
|||||
Include net unearned premium revenue in excess of expected losses |
3.39 |
3.58 |
Three Months Ended March 31, |
Percent | |||||||||||
In millions |
2022 |
2021 |
Change | |||||||||
Net premiums earned |
$ |
13 |
$ |
17 |
-24% |
|||||||
Net investment income |
17 |
14 |
21% |
|||||||||
Net realized investment gains (losses) |
(1 |
) |
(1 |
) |
-% |
|||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(16 |
) |
(2 |
) |
n/m |
|||||||
Fees and reimbursements |
2 |
- |
n/m |
|||||||||
Other net realized gains (losses) |
(3 |
) |
- |
n/m |
||||||||
|
|
|
|
|
|
|
|
| ||||
Total revenues |
12 |
28 |
-57% |
|||||||||
|
|
|
|
|
|
|
|
| ||||
Losses and loss adjustment |
87 |
109 |
-20% |
|||||||||
Amortization of deferred acquisition costs |
3 |
4 |
-25% |
|||||||||
Operating |
13 |
14 |
-7% |
|||||||||
|
|
|
|
|
|
|
|
| ||||
Total expenses |
103 |
127 |
-19% |
|||||||||
|
|
|
|
|
|
|
|
| ||||
Income (loss) before income taxes |
$ |
(91 |
) |
$ |
(99 |
) |
-8% |
|||||
|
|
|
|
|
|
|
|
|
In millions |
March 31, 2022 |
December 31, 2021 |
Percent Change | |||||||||
Assets: |
||||||||||||
Insurance loss recoverable |
$ | 128 | $ | 1,054 | -88 | % | ||||||
Reinsurance recoverable on paid and unpaid losses (1) |
10 | 3 | n/ | m | ||||||||
Liabilities: |
||||||||||||
Loss and LAE reserves |
460 | 425 | 8 | % | ||||||||
Insurance loss recoverable - ceded (2) |
3 | 55 | -95 | % | ||||||||
|
|
|
|
|
|
|
|
| ||||
Net reserve (salvage) |
$ | 325 | $ | (577 | ) | n/ | m | |||||
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
Percent |
|||||||||||
In millions |
2022 |
2021 |
Change |
|||||||||
Gross expenses |
$ |
13 |
$ |
15 |
-13% |
|||||||
|
|
|
|
|
|
|||||||
Amortization of deferred acquisition costs |
$ |
3 |
$ |
4 |
-25% |
|||||||
Operating |
13 |
14 |
-7% |
|||||||||
|
|
|
|
|
|
|||||||
Total insurance operating expenses |
$ |
16 |
$ |
18 |
-11% |
|||||||
|
|
|
|
|
|
Gross Par Outstanding |
||||||||||||||||
In millions |
March 31, 2022 |
December 31, 2021 |
||||||||||||||
Rating |
Amount |
% |
Amount |
% |
||||||||||||
AAA |
$ |
1,614 |
4.6% |
$ |
1,682 |
4.6% |
||||||||||
AA |
14,559 |
41.4% |
14,874 |
40.8% |
||||||||||||
A |
10,167 |
28.9% |
10,439 |
28.6% |
||||||||||||
BBB |
5,968 |
17.0% |
6,187 |
17.0% |
||||||||||||
Below investment grade |
2,870 |
8.1% |
3,269 |
9.0% |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
35,178 |
100.0% |
$ |
36,451 |
100.0% |
||||||||||
|
|
|
|
|
|
|
|
In millions |
Gross Par Outstanding |
Debt Service Outstanding |
National Internal Rating | |||||||||
Puerto Rico Electric Power Authority (PREPA) |
$ | 809 | $ | 1,063 | d | |||||||
Puerto Rico Highway and Transportation Authority Transportation Revenue (PRHTA) |
523 | 842 | d | |||||||||
Puerto Rico Highway and Transportation Authority—Subordinated Transportation Revenue (PRHTA) |
27 | 33 | d | |||||||||
Puerto Rico Highway and Transportation Authority Highway Revenue (PRHTA) |
39 | (1) |
57 | d | ||||||||
University of Puerto Rico System Revenue |
70 | 90 | d | |||||||||
Inter American University of Puerto Rico Inc. |
17 | 21 | a3 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 1,485 | $ | 2,106 | ||||||||
|
|
|
|
|
|
In millions |
Nine Months Ending December 31, 2022 |
2023 |
2024 |
2025 |
2026 |
Thereafter |
Total | |||||||||||||||||||||
Puerto Rico Electric Power Authority (PREPA) |
$ |
119 |
$ |
137 |
$ |
137 |
$ |
105 |
$ |
57 |
$ |
508 |
$ |
1,063 |
||||||||||||||
Puerto Rico Highway and Transportation Authority Transportation Revenue (PRHTA) |
13 |
36 |
33 |
36 |
35 |
689 |
842 |
|||||||||||||||||||||
Puerto Rico Highway and Transportation Authority—Subordinated Transportation Revenue (PRHTA) |
8 |
1 |
1 |
1 |
1 |
21 |
33 |
|||||||||||||||||||||
Puerto Rico Highway and Transportation Authority Highway Revenue (PRHTA) |
2 |
4 |
2 |
2 |
2 |
45 |
57 |
|||||||||||||||||||||
University of Puerto Rico System Revenue |
5 |
12 |
11 |
16 |
6 |
40 |
90 |
|||||||||||||||||||||
Inter American University of Puerto Rico Inc. |
3 |
3 |
3 |
3 |
2 |
7 |
21 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total |
$ |
150 |
$ |
193 |
$ |
187 |
$ |
163 |
$ |
103 |
$ |
1,310 |
$ |
2,106 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
Percent | |||||||||||
In millions |
2022 |
2021 |
Change | |||||||||
Net investment income |
$ |
6 |
$ |
7 |
-14% |
|||||||
Net realized investment gains (losses) |
(1 |
) |
- |
n/m |
||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
39 |
55 |
-29% |
|||||||||
Fees |
14 |
16 |
-13% |
|||||||||
|
|
|
|
|
|
|
|
| ||||
Total revenues |
58 |
78 |
-26% |
|||||||||
|
|
|
|
|
|
|
|
| ||||
Operating |
16 |
22 |
-27% |
|||||||||
Interest |
19 |
19 |
-% |
|||||||||
|
|
|
|
|
|
|
|
| ||||
Total expenses |
35 |
41 |
-15% |
|||||||||
|
|
|
|
|
|
|
|
| ||||
Income (loss) before income taxes |
$ |
23 |
$ |
37 |
-38% |
|||||||
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
Percent | |||||||||||
In millions |
2022 |
2021 |
Change | |||||||||
Net premiums earned |
$ |
4 |
$ |
6 |
-33% |
|||||||
Net investment income |
2 |
1 |
100% |
|||||||||
Net realized investment gains (losses) |
(1 |
) |
- |
n/m |
||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(6 |
) |
(1 |
) |
n/m |
|||||||
Fees and reimbursements |
3 |
4 |
-25% |
|||||||||
Revenues of consolidated VIEs: |
||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(4 |
) |
(14 |
) |
-71% |
|||||||
|
|
|
|
|
|
|
|
| ||||
Total revenues |
(2 |
) |
(4 |
) |
-50% |
|||||||
|
|
|
|
|
|
|
|
| ||||
Losses and loss adjustment |
(38 |
) |
(11 |
) |
n/m |
|||||||
Amortization of deferred acquisition costs |
4 |
4 |
-% |
|||||||||
Operating |
6 |
7 |
-14% |
|||||||||
Interest |
28 |
27 |
4% |
|||||||||
Expenses of consolidated VIEs: |
||||||||||||
Operating |
2 |
2 |
-% |
|||||||||
Interest |
1 |
11 |
-91% |
|||||||||
|
|
|
|
|
|
|
|
| ||||
Total expenses |
3 |
40 |
-93% |
|||||||||
|
|
|
|
|
|
|
|
| ||||
Income (loss) before income taxes |
$ |
(5 |
) |
$ |
(44 |
) |
-89% |
|||||
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
Percent |
|||||||||||
In millions |
2022 |
2021 |
Change |
|||||||||
Net premiums earned: |
||||||||||||
Non-U.S. |
$ |
3 |
$ |
5 |
-40% |
|||||||
U.S. |
1 |
1 |
-% |
|||||||||
|
|
|
|
|
|
|||||||
Total net premiums earned |
$ |
4 |
$ |
6 |
-33% |
|||||||
|
|
|
|
|
|
|||||||
VIEs (eliminated in consolidation) |
$ |
- |
$ |
1 |
-100% |
In millions |
March 31, 2022 |
December 31, 2021 |
Percent Change |
|||||||||
Assets: |
||||||||||||
Insurance loss recoverable |
$ |
238 |
$ |
242 |
-2% |
|||||||
Reinsurance recoverable on paid and unpaid losses (1) |
4 |
5 |
-20% |
|||||||||
Liabilities: |
||||||||||||
Loss and LAE reserves |
426 |
469 |
-9% |
|||||||||
|
|
|
|
|||||||||
Net reserve (salvage) |
$ |
184 |
$ |
222 |
-17% |
|||||||
|
|
|
|
Three Months Ended March 31, |
Percent Change |
|||||||||||
In millions |
2022 |
2021 |
||||||||||
Gross expenses |
$ |
6 |
$ |
7 |
-14% |
|||||||
|
|
|
|
|
|
|||||||
Amortization of deferred acquisition costs |
$ |
4 |
$ |
4 |
-% |
|||||||
|
|
|||||||||||
Operating |
6 |
7 |
-14% |
|||||||||
|
|
|
|
|
|
|||||||
Total insurance operating expenses |
$ |
10 |
$ |
11 |
-9% |
|||||||
|
|
|
|
|
|
Three Months Ended March 31, |
||||||||||||
In millions |
2022 |
2021 |
Percent Change | |||||||||
Statement of cash flow data: |
||||||||||||
Net cash provided (used) by: |
||||||||||||
Operating activities |
$ |
273 |
$ |
529 |
-48% |
|||||||
Investing activities |
(254 |
) |
(418 |
) |
-39% |
|||||||
Financing activities |
(29 |
) |
(157 |
) |
-82% |
|||||||
Effect of exchange rate changes on cash and cash equivalents |
1 |
- |
n/m |
|||||||||
Cash and cash equivalents - beginning of period |
160 |
167 |
-4% |
|||||||||
|
|
|
|
|
|
|
|
| ||||
Cash and cash equivalents - end of period |
$ |
151 |
$ |
121 |
25% |
|||||||
|
|
|
|
|
|
|
|
|
• | 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. |
In millions |
As of March 31, 2022 |
As of December 31, 2021 |
||||||
Policyholders’ surplus |
$ |
1,671 |
$ |
1,569 |
||||
Contingency reserves |
399 |
402 |
||||||
|
|
|
|
|||||
Statutory capital |
2,070 |
1,971 |
||||||
Unearned premiums |
294 |
311 |
||||||
Present value of installment premiums (1) |
122 |
121 |
||||||
|
|
|
|
|||||
Premium resources (2) |
416 |
432 |
||||||
Net loss and LAE reserves (1) |
(201) |
(386) |
||||||
Salvage reserves on paid claims (1) |
661 |
944 |
||||||
|
|
|
|
|||||
Gross loss and LAE reserves |
460 |
558 |
||||||
|
|
|
|
|||||
Total claims-paying resources |
$ |
2,946 |
$ |
2,961 |
||||
|
|
|
|
(1) - Calculated | using a discount rate of 3.65% as of March 31, 2022 and December 31, 2021. |
(2) - Includes | financial guarantee and insured derivative related premiums. |
In millions |
As of March 31, 2022 |
As of December 31, 2021 |
||||||
Policyholders’ surplus |
$ |
94 |
$ |
97 |
||||
Contingency reserves |
37 |
37 |
||||||
|
|
|
|
|||||
Statutory capital |
131 |
134 |
||||||
Unearned premiums |
45 |
46 |
||||||
Present value of installment premiums (1) |
48 |
48 |
||||||
|
|
|
|
|||||
Premium resources (2) |
93 |
94 |
||||||
Net loss and LAE reserves (1) |
203 |
266 |
||||||
Salvage reserves on paid claims (1) (3) |
299 |
231 |
||||||
|
|
|
|
|||||
Gross loss and LAE reserves |
502 |
497 |
||||||
|
|
|
|
|||||
Total claims-paying resources |
$ |
726 |
$ |
725 |
||||
|
|
|
|
(1) - Calculated | using a discount rate of 4.99% as of March 31, 2022 and December 31, 2021. |
(2) - Includes | financial guarantee and insured derivative related premiums. |
(3) - This | amount primarily consists of expected recoveries related to the payment of claims on insured CDOs and RMBS. In addition, the March 31, 2022 balance includes salvage related to a permitted practice granted by NYSDFS. |
Total Number |
Maximum | |||||||||||||||
Total |
Average |
of Shares |
Amount That May | |||||||||||||
Number |
Price |
Purchased as |
Be Purchased | |||||||||||||
of Shares |
Paid Per |
Part of Publicly |
Under the Plan | |||||||||||||
Month |
Purchased (1) |
Share |
Announced Plan |
(in millions) | ||||||||||||
January |
- |
$ |
- |
- |
$ |
- |
||||||||||
February |
1,260 |
15.22 |
- |
- |
||||||||||||
March |
179,428 |
14.10 |
- |
- |
||||||||||||
|
|
|
||||||||||||||
180,688 |
$ |
14.11 |
- |
$ |
- |
(1) | 1,260 shares in February and 45 shares in March were repurchased in open market transactions as investments in the Company’s non-qualified deferred compensation plan. 179,383 shares in March were repurchased by the Company in open market transactions for settling awards under the Company’s long term incentive 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: May 9, 2022 | /s/ Anthony McKiernan | |
Anthony McKiernan | ||
Chief Financial Officer | ||
Date: May 9, 2022 | /s/ Joseph R. Schachinger | |
Joseph R. Schachinger | ||
Controller (Chief Accounting Officer) |