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 basis. Capital management includes activities related to servicing obligations issued by MBIA Inc. and its subsidiary, MBIA Global Funding, LLC (“GFL”). MBIA Inc. issued debt to finance the operations of the MBIA group. GFL raised funds through the issuance of MTNs with varying maturities, which were in turn guaranteed by MBIA Corp. GFL lent the proceeds of these MTN issuances to MBIA Inc. MBIA Inc. also provided customized investment agreements, guaranteed by MBIA Corp., for bond proceeds and other public funds for such purposes as construction, loan origination, escrow and debt service or other reserve fund requirements. The Company has ceased issuing new MTNs and investment agreements and the outstanding liability balances and corresponding asset balances have declined over time as liabilities matured, terminated or were called or repurchased. All of the debt within the corporate segment is managed collectively and is serviced by available liquidity.

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

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, 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, structured settlements, consumer loans, and corporate loans and bonds. 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 Insurance Corporation also insures debt obligations of GFL. MBIA Corp. has also written policies guaranteeing obligations under certain 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 years ended December 31, 2022, 2021, and

2020:


	Year Ended December 31, 2022
In millions	U.S. Public Finance Insurance		Corporate		International and Structured Finance Insurance		Eliminations			Consolidated
Revenues (1)	$	53	$	8	$	39	$	—		$	100
Net gains (losses) on financial instruments at fair value and foreign exchange		(47)		99		(7)		—			45
Net gains (losses) on extinguishment of debt		—		5		—		(1)			4
Revenues of consolidated VIEs		—		—		5		—			5
Inter-segment revenues (2)		29		55		9		(93)			—

Total revenues		35		167		46		(94)			154
Losses and loss adjustment		143		—		(105)		—			38
Amortization of deferred acquisition costs and operating		8		55		12		1			76
Interest		—		56		124		(1)			179
Expenses of consolidated VIEs		—		—		9		—			9
Inter-segment expenses (2)		44		23		27		(94)			—

Total expenses		195		134		67		(94)			302

Income (loss) from continuing operations before income taxes	$	(160)	$	33	$	(21)	$	—		$	(148)

Identifiable assets per segment	$	2,491	$	645	$	1,132	$	(973)	(3)	$	3,295
Assets held for sale		—		—		—		—			80

Total identifiable assets	$	2,491	$	645	$	1,132	$	(973)		$	3,375

(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.


	Year Ended December 31, 2021
In millions	U.S. Public Finance Insurance		Corporate		International and Structured Finance Insurance		Eliminations			Consolidated
Revenues (1)	$	85	$	13	$	44	$	—		$	142
Net gains (losses) on financial instruments at fair value and
foreign exchange		(2)		56		(14)		—			40
Net gains (losses) on extinguishment of debt		—		30		—		—			30
Revenues of consolidated VIEs		—		—		(23)		—			(23)
Inter-segment revenues (2)		27		67		12		(106)			—

Total revenues		110		166		19		(106)			189
Losses and loss adjustment		227		—		123		—			350
Amortization of deferred acquisition costs and operating		17		71		9		—			97
Interest		—		56		107		—			163
Expenses of consolidated VIEs		—		—		24		—			24
Inter-segment expenses (2)		45		22		38		(105)			—

Total expenses		289		149		301		(105)			634

Income (loss) from continuing operations before income taxes	$	(179)	$	17	$	(282)	$	(1)		$	(445)

Identifiable assets	$	3,313	$	873	$	2,800	$	(2,290)	(3)	$	4,696

(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.


	Year Ended December 31, 2020
In millions	U.S. Public Finance Insurance		Corporate		International and Structured Finance Insurance		Eliminations		Consolidated
Revenues (1)	$	138	$	31	$	30	$	—	$	199
Net gains (losses) on financial instruments at fair value and foreign exchange		2		(74)		(8)		—		(80)
Revenues of consolidated VIEs		—		—		163		—		163
Inter-segment revenues (2)		28		66		12		(106)		—

Total revenues		168		23		197		(106)		282
Losses and loss adjustment		163		—		367		—		530
Amortization of deferred acquisition costs and operating		14		69		14		—		97
Interest		—		65		113		—		178
Expenses of consolidated VIEs		—		—		55		—		55
Inter-segment expenses (2)		45		22		39		(106)		—

Total expenses		222		156		588		(106)		860

Income (loss) from continuing operations before income taxes	$	(54)	$	(133)	$	(391)	$	—	$	(578)

(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 expense.

Premiums on financial guarantees and insured derivatives reported within the Company’s insurance segments are generated within and outside the U.S. The following table summarizes premiums earned on financial guarantees and insured derivatives by geographic location of risk for the years ended December 31, 2022, 2021 and 2020:


	Years Ended December 31,
In millions	2022		2021		2020
Total premiums earned:
United States	$	45	$	45	$	55
Other Americas		8		29		16
Other		—		1		2

Total	$	53	$	75	$	73