Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 03, 2017 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MBI | |
Entity Registrant Name | MBIA INC | |
Entity Central Index Key | 814,585 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 91,777,937 | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 136 | $ 187 |
Insurance loss recoverable | 611 | 504 |
Assets held for sale | 555 | |
Deferred income taxes, net | 0 | 970 |
Loan repurchase commitments | 406 | 404 |
Total assets | 9,544 | 11,137 |
Liabilities: | ||
Loss and loss adjustment expense reserves | 818 | 541 |
Liabilities held for sale | 346 | |
Total liabilities | 7,824 | 7,898 |
Commitments and contingencies (Refer to Note 14) | ||
Equity: | ||
Preferred stock, par value $1 per share; authorized shares--10,000,000; issued and outstanding--none | 0 | 0 |
Common stock, par value $1 per share; authorized shares--400,000,000; issued shares-- 283,967,973 and 283,989,999 | 284 | 284 |
Additional paid-in capital | 3,170 | 3,160 |
Retained earnings | 1,132 | 2,700 |
Accumulated other comprehensive income (loss), net of tax of $6 and $37 | 15 | (128) |
Treasury stock, at cost-- 160,858,509 and 148,789,168 shares | (2,893) | (2,789) |
Total shareholders' equity of MBIA Inc. | 1,708 | 3,227 |
Preferred stock of subsidiary | 12 | 12 |
Total equity | 1,720 | 3,239 |
Total liabilities and equity | 9,544 | 11,137 |
Non Variable Interest Entity [Member] | ||
Assets | ||
Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $4,203 and $4,713) | 4,234 | 4,694 |
Investments carried at fair value | 164 | 146 |
Investments pledged as collateral, at fair value (amortized cost $169 and $234) | 170 | 233 |
Short-term investments held as available-for-sale, at fair value (amortized cost $452 and $552) | 452 | 552 |
Other investments (includes investments at fair value of $4 and $5) | 6 | 8 |
Total investments | 5,026 | 5,633 |
Cash and cash equivalents | 116 | 163 |
Premiums receivable | 382 | 409 |
Deferred acquisition costs | 96 | 118 |
Insurance loss recoverable | 611 | 504 |
Assets held for sale | 0 | 555 |
Deferred income taxes, net | 0 | 970 |
Other assets | 146 | 113 |
Liabilities: | ||
Unearned premium revenue | 808 | 958 |
Loss and loss adjustment expense reserves | 818 | 541 |
Long-term debt | 2,093 | 1,986 |
Medium-term notes (includes financial instruments carried at fair value of $127 and $101) | 898 | 895 |
Investment agreements | 350 | 399 |
Derivative liabilities | 284 | 299 |
Liabilities held for sale | 0 | 346 |
Other liabilities | 221 | 233 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Assets | ||
Investments carried at fair value | 189 | 255 |
Other assets | 30 | 33 |
Cash | 20 | 24 |
Investments held-to-maturity, at amortized cost (fair value $897 and $876) | 890 | 890 |
Loans receivable at fair value | 1,632 | 1,066 |
Loan repurchase commitments | 406 | 404 |
Liabilities: | ||
Variable interest entity notes (includes financial instruments carried at fair value of $1,140 and $1,351) | $ 2,352 | $ 2,241 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 4,774 | $ 5,450 |
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 | 283,967,973 | 283,989,999 |
Accumulated other comprehensive income (loss), taxes | $ 10 | $ 0 |
Accumulated other comprehensive income (loss), taxes | $ 6 | $ 37 |
Treasury stock, shares | 160,858,509 | 148,789,168 |
Non Variable Interest Entity [Member] | ||
Fixed-maturity securities held as available-for-sale, amortized cost | $ 4,203 | $ 4,713 |
Investments pledged as collateral, amortized cost | 169 | 234 |
Short-term investments held as available-for-sale, amortized cost | 452 | 552 |
Other investments, fair value | 4 | 5 |
Medium-term notes, financial instruments carried at fair value | 127 | 101 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Investments held-to-maturity, fair value | 897 | 876 |
Variable interest entity notes, financial instruments carried at fair value | $ 1,140 | $ 1,351 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Change in fair value of insured derivatives: | ||||
Unrealized gains (losses) on insured derivatives | $ (10) | $ 0 | ||
Net change in fair value of insured derivatives | $ (1) | $ 16 | (51) | (20) |
Net gains (losses) on financial instruments at fair value and foreign exchange | (11) | 38 | (55) | (17) |
Net investment losses related to other-than-temporary impairments: | ||||
Net investment losses related to other-than-temporary impairments | (71) | 0 | (84) | (1) |
Net gains (losses) on extinguishment of debt | 1 | 0 | 9 | 5 |
Other net realized gains (losses) | (1) | (2) | 36 | (3) |
Total revenues | 33 | 203 | 182 | 353 |
Expenses: | ||||
Losses and loss adjustment | 205 | 50 | 469 | 149 |
Interest | 50 | 49 | 148 | 148 |
Total expenses | 306 | 148 | 785 | 454 |
Income (loss) before income taxes | (273) | 55 | (603) | (101) |
Provision (benefit) for income taxes | (6) | 24 | 965 | (28) |
Net income (loss) | $ (267) | $ 31 | $ (1,568) | $ (73) |
Net income (loss) per common share: | ||||
Basic | $ (2.17) | $ 0.23 | $ (12.38) | $ (0.55) |
Diluted | $ (2.17) | $ 0.23 | $ (12.38) | $ (0.55) |
Weighted average number of common shares outstanding: | ||||
Basic | 122,967,924 | 131,633,411 | 126,643,642 | 133,368,752 |
Diluted | 122,967,924 | 132,042,067 | 126,643,642 | 133,368,752 |
Non Variable Interest Entity [Member] | ||||
Premiums earned: | ||||
Scheduled premiums earned | $ 26 | $ 42 | $ 82 | $ 131 |
Refunding premiums earned | 27 | 35 | 64 | 94 |
Premiums earned (net of ceded premiums of $1, $2, $4 and $5) | 53 | 77 | 146 | 225 |
Net investment income | 33 | 39 | 122 | 115 |
Fees and reimbursements | 1 | 22 | 9 | 24 |
Change in fair value of insured derivatives: | ||||
Realized gains (losses) and other settlements on insured derivatives | (7) | (4) | (41) | (20) |
Unrealized gains (losses) on insured derivatives | 6 | 20 | (10) | 0 |
Net change in fair value of insured derivatives | (1) | 16 | (51) | (20) |
Net gains (losses) on financial instruments at fair value and foreign exchange | (11) | 38 | (55) | (17) |
Net investment losses related to other-than-temporary impairments: | ||||
Investment losses related to other-than-temporary impairments | (26) | 0 | (80) | (1) |
Other-than-temporary impairments recognized in accumulated other comprehensive income (loss) | (45) | 0 | (4) | 0 |
Net investment losses related to other-than-temporary impairments | (71) | 0 | (84) | (1) |
Net gains (losses) on extinguishment of debt | 1 | 0 | 9 | 5 |
Other net realized gains (losses) | (1) | (2) | 36 | (3) |
Expenses: | ||||
Losses and loss adjustment | 205 | 50 | 469 | 149 |
Amortization of deferred acquisition costs | 8 | 10 | 23 | 30 |
Operating | 21 | 32 | 82 | 97 |
Interest | 50 | 49 | 148 | 148 |
Variable Interest Entity Primary Beneficiary [Member] | ||||
Premiums earned: | ||||
Net investment income | 8 | 5 | 20 | 25 |
Change in fair value of insured derivatives: | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 21 | 8 | 2 | 0 |
Net investment losses related to other-than-temporary impairments: | ||||
Other net realized gains (losses) | 0 | 0 | 28 | 0 |
Expenses: | ||||
Operating | 3 | 3 | 8 | 10 |
Interest | $ 19 | $ 4 | $ 55 | $ 20 |
Consolidated Statements Of Ope5
Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Non Variable Interest Entity [Member] | Financial Guarantee Insurance Segment [Member] | ||||
Ceded premiums earned | $ 1 | $ 2 | $ 4 | $ 5 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statements of Comprehensive Income (Loss) | ||||
Net income (loss) | $ (267) | $ 31 | $ (1,568) | $ (73) |
Unrealized gains (losses) on available-for-sale securities: [Abstract] | ||||
Unrealized gains (losses) arising during the period | 16 | (20) | 20 | 204 |
Provision (benefit) for income taxes | 7 | (7) | 7 | 72 |
Total | 9 | (13) | 13 | 132 |
Reclassification adjustments for (gains) losses included in net income (loss) | 1 | (1) | (4) | 7 |
Provision (benefit) for income taxes | (1) | (1) | (1) | 2 |
Total | 2 | 0 | (3) | 5 |
Available-for-sale securities with other-than-temporary impairments: [Abstract] | ||||
Other-than-temporary impairments and unrealized gains (losses) arising during the period | 40 | 0 | 6 | 7 |
Provision (benefit) for income taxes | 2 | 0 | 2 | 2 |
Total | 38 | 0 | 4 | 5 |
Reclassification adjustments for (gains) losses included in net income (loss) | 4 | 0 | 6 | 0 |
Provision (benefit) for income taxes | 1 | 0 | 2 | 0 |
Total | 3 | 0 | 4 | 0 |
Foreign currency translation: [Abstract] | ||||
Foreign currency translation gains (losses) | 1 | (15) | 145 | (70) |
Provision (benefit) for income taxes | (1) | (5) | 20 | (24) |
Total | 2 | (10) | 125 | (46) |
Total other comprehensive income (loss) | 54 | (23) | 143 | 96 |
Comprehensive income (loss) | $ (213) | $ 8 | $ (1,425) | $ 23 |
Consolidated Statement Of Chang
Consolidated Statement Of Changes In Shareholders' Equity - 9 months ended Sep. 30, 2017 - USD ($) $ in Millions | Total | Preferred Stock Of Subsidiary And Noncontrolling Interest [Member] | Total Shareholders' Equity Of MBIA Inc. [Member] | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
Total equity balance at Dec. 31, 2016 | $ 3,239 | $ 12 | $ 3,227 | $ 284 | $ 3,160 | $ 2,700 | $ (128) | $ (2,789) |
Balance (in common stock shares) at Dec. 31, 2016 | 283,989,999 | 283,989,999 | ||||||
Balance (in treasury stock shares) at Dec. 31, 2016 | (148,789,168) | (148,789,168) | ||||||
Balance (in preferred stock shares) at Dec. 31, 2016 | 0 | 1,315 | ||||||
Net income (loss) | $ (1,568) | (1,568) | (1,568) | |||||
Total other comprehensive income (loss) | 143 | 143 | 143 | |||||
Share-based compensation | 6 | 6 | $ 0 | 10 | $ (4) | |||
Share-based compensation (in shares) | (22,026) | (359,335) | ||||||
Treasury shares acquired | (100) | (100) | $ (100) | |||||
Treasury shares acquired (in shares) | (11,710,006) | |||||||
Total equity balance at Sep. 30, 2017 | $ 1,720 | $ 12 | $ 1,708 | $ 284 | $ 3,170 | $ 1,132 | $ 15 | $ (2,893) |
Balance (in common stock shares) at Sep. 30, 2017 | 283,967,973 | 283,967,973 | ||||||
Balance (in treasury stock shares) at Sep. 30, 2017 | (160,858,509) | (160,858,509) | ||||||
Balance (in preferred stock shares) at Sep. 30, 2017 | 0 | 1,315 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Premiums, fees and reimbursements received | $ 41 | $ 87 |
Investment income received | 193 | 249 |
Insured derivative commutations and losses paid | (41) | (24) |
Financial guarantee losses and loss adjustment expenses paid | (744) | (324) |
Proceeds from recoveries and reinsurance | 100 | 88 |
Operating and employee related expenses paid | (103) | (98) |
Interest paid, net of interest converted to principal | (119) | (102) |
Income taxes (paid) received | 0 | (4) |
Net cash provided (used) by operating activities | (673) | (128) |
Cash flows from investing activities: | ||
Purchases of available-for-sale investments | (1,146) | (2,112) |
Sales of available-for-sale investments | 1,300 | 1,785 |
Paydowns and maturities of available-for-sale investments | 392 | 410 |
Purchases of investments at fair value | (199) | (88) |
Sales, paydowns and maturities of investments at fair value | 270 | 197 |
Sales, paydowns and maturities (purchases) of short-term investments, net | 67 | 90 |
Sales, paydowns and maturities of held-to-maturity investments | 0 | 1,799 |
Sales, paydowns and maturities of other investments | 0 | 1 |
Paydowns and maturities of loans receivable | 202 | 188 |
Consolidation of variable interest entities | 18 | 1 |
(Payments) proceeds for derivative settlements | (58) | (36) |
Collateral (to) from counterparties | 4 | 10 |
Capital expenditures | (1) | (1) |
Other investing | (23) | (8) |
Net cash provided (used) by investing activities | 826 | 2,236 |
Cash flows from financing activities: | ||
Proceeds from investment agreements | 13 | 17 |
Principal paydowns of investment agreements | (66) | (63) |
Principal paydowns of medium-term notes | (67) | (122) |
Proceeds from the MBIA Corp. Financing Facility | 328 | 0 |
Principal paydowns of variable interest entity notes | (311) | (2,136) |
Purchases of treasury stock | (98) | (109) |
Other financing | (3) | 0 |
Net cash provided (used) by financing activities | (204) | (2,413) |
Effect of exchange rate changes on cash and cash equivalents | 0 | (1) |
Net increase (decrease) in cash and cash equivalents | (51) | (306) |
Cash and cash equivalents - beginning of year | 187 | 522 |
Cash and cash equivalents - end of year | 136 | 216 |
Reconciliation of net income (loss) to net cash provided (used) by operating activities: [Abstract] | ||
Net income (loss) | (1,568) | (73) |
Change in: [Abstract] | ||
Premiums receivable | 34 | 61 |
Deferred acquisition costs | 22 | 31 |
Unearned premium revenue | (149) | (197) |
Loss and loss adjustment expense reserves | 615 | (1) |
Insurance loss recoverable | (781) | (98) |
Accrued interest payable | 101 | 82 |
Accrued expenses | (26) | 4 |
Unrealized (gains) losses on insured derivatives | 10 | 0 |
Net (gains) losses on financial instruments at fair value and foreign exchange | 53 | 17 |
Other net realized (gains) losses | (64) | 3 |
Deferred income tax provision (benefit) | 961 | (33) |
Interest on variable interest entities, net | 26 | 45 |
Other operating | 93 | 31 |
Total adjustments to net income (loss) | 895 | (55) |
Net cash provided (used) by operating activities | (673) | (128) |
Supplementary Disclosure of Consolidated Cash Flow Information | ||
Non-cash consideration received from the sale of MBIA UK Insurance Limited | $ 332 | $ 0 |
Business Developments and Risks
Business Developments and Risks and Uncertainties | 9 Months Ended |
Sep. 30, 2017 | |
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 one of the largest financial guarantee insurance businesses in the 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 primarily operated through National Public Finance Guarantee Corporation (“National”) and its international and structured finance insurance business is primarily operated through MBIA Insurance Corporation and its subsidiaries (“MBIA Corp.”). Effective on January 10, 2017, MBIA Corp.’s wholly - owned subsidiary, MBIA UK (Holdings) Limited (“MBI A UK Holdings”), sold its operating subsidiary, MBIA UK Insurance Limited (“MBIA UK”) , to Assured Guaranty Corp. (“Assured”), a subsidiary of Assured Guaranty Ltd. Refer below for a further discussion of the sale of MBIA UK. Unless otherwise indicated or t he context otherwise requires, references to “MBIA Corp.” are (i) for any references relating to the period ended January 10, 2 017, to MBIA Insurance Corporation, together with its subsidiaries, MBIA UK, and MBIA Mexico S.A. de C.V . (“MBIA Mexico”) and (ii ) for any references relating to the period after January 10, 2 017, to MBIA Insurance Corporation together with MBIA Mexico. Refer to “ Note 11: Business Segments ” for further information about the Company’s operating segments. Business Developments Financial Strength R atings On June 26, 2017, Standard & Poor’s Financial Services LLC (“S&P”) downgraded the financial strength rating of National from AA- with a stable outlook to A with a stable outlook. National’s ability to write new business and to compete with other fin ancial guarantors is largely dependent on the financial strength ratings assigned to National by major rating agencies. At the current S&P rating it is difficult for National to compete with higher-rated competitors, therefore, at this time, National has c eased its efforts to actively pursue writing new financial guarantee business. National continues to surveil and remediate its existing insured portfolio and will proactively seek opportunities to enhance shareholder value using its strong financial resour ces, while protecting the interests of all of its policyholders. On September 28, 2017, MBIA Inc., on behalf of its subsidiaries, National and MBIA Corp., provided notice to Moody’s Investors Services (“Moody’s”) terminating the agreement by which Moody’s agreed to provide financial strength ratings to MBIA Inc., National and MBIA Corp. Also on September 28, 2017, National provided notice to Kroll Bond Rating Agency (“Kroll”) terminating the agreement by which Kroll agreed to provide a financial strength r ating to National. These termination notices were effective in October of 2017. Full Valuation Allowance o n the Company’s Net Deferred Tax Asset During the nine months ended September 30, 2017 , the Company established a full valuation allowance on its net deferred tax asset , which resulted in a charge to earnings of $ 1. 2 billion. This charge was included in “Provision (benefit) for income taxes” on the Company’s consolidated statement of operations. Refer to “ Note 10: Income Taxes ” for further information about this v aluation allowance on the Company’s net deferred tax asset. Sale of MBIA UK On January 10, 2017, MBIA UK Holdings sold its operating subsidiary, MBIA UK, and made a cash payment of $ 23 million, to Assured in exchange for the receipt by MBIA UK Holdings o f certain notes owned by Assured that were issued by Zohar II 2005-1, Limited (“Zohar II”) with an aggregate outstanding principal amount of $ 347 million as of January 10, 2017 (the “Sale Transaction”) . For the nine months ended September 30, 2017 , the Company recorded a gain of $ 5 million to adjust the carrying value of MBIA UK to its fair value less costs to sell as of the sale date. This gain was reflected in the results of the Company’s internatio nal and structured finance insurance segment and included in “Other net realized gains (losses)” on the Company’s consolidated statement of operations. Held for Sale Classification The assets and liabilities of MBIA UK were classified as held for sale as of December 31, 2016 and presented within “Assets held for sale” and “Liabilities held for sale” on the Company’s consolidated balance sheet. Income before income taxes for MBIA UK was $ 9 and $ 3 2 million , respectively, for the three and nine months ended September 30, 2016 . The following table summarizes the components of assets and liabilities held for sale as of December 31 , 2016: As of In millions December 31, 2016 Assets Investments $ 466 Cash and cash equivalents 73 Premiums receivable 267 Other assets 19 Valuation allowance (270) Total assets held for sale $ 555 Liabilities Unearned premium revenue $ 304 Other liabilities 42 Total liabilities held for sale $ 346 MBIA Corp. Financing Facility On January 10, 2017, MBIA Corp. consummated a financing facility (the “Facility”) with affiliates of certain holders of 14 % Fixed-to-Floating Rate Surplus Notes of MBIA Corp. (collectively, the “Senior Lenders”), and with MBIA Inc., pursuant to which the Senior Lenders have provided $ 325 million of senior financing and MBIA Inc. has provide d $ 38 million of subordinated financing to MZ Funding LLC (“MZ Funding”), a newly formed wholly-owned subsidiary of the Company, which i n turn lent the proceeds of such financing to MBIA Corp. MBIA Corp. issued financial guarantee insurance policies insuring MZ Funding’s obligations under the Facility. Refer to “ Note 9: Debt ” for further information about the Facility. 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 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 i n future periods. U.S. Public Finance Market Conditions National’s insured portfolio continued to perform satisfactorily against a backdrop of strengthening domestic economic activity. While a stable or growing economy will generally benefit tax revenues and fees charged for essential municipal services which secure National’s insured bond portfolio, some state and local governments and territory obligors National insures remain under financial and budgetary stress. This could lead to an increase in defau lts by such entities on the payment of their obligations and losses or impairments on a greater number of the Company’s insured transactions. The Company monitors and analyzes these situations and other stressed credits closely, and the overall extent and duration of this stress is uncertain. In particular, the Commonwealth of Puerto Rico and certain of its instrumentalities (“Puerto Rico”) are experiencing significant fiscal stress and constrained liquidity due to, among other things, Puerto Rico’s struc tural budget imbalance, limited access to the capital markets, a stagnating local economy, net migration of people out of Puerto Rico and a high debt burden . Although Puerto Rico has tried to address its challenges through various fiscal policies, it conti nues to experience significant fiscal stress. On January 1, 2017 and July 1, 2017, Puerto Rico also defaulted on a scheduled debt service for National insured bonds and National paid gross claims in the aggregate of $ 242 million as a result. On September 2 0, 2017, Hurricane Maria made landfall in Puerto Rico as a Category 4 hurricane resulting in catastrophic damage to much of the island’s basic infrastructure, including its electrical transmission and distribution grid, telecommunications network, housing, roads, bridges, water and sewer systems. On September 21, 2017, the President of the United States approved a Major Disaster Declaration for Puerto Rico and the Federal Emergency Management Agency (“FEMA”) made federal disaster assistance available to Puerto Rico to supplement its recovery efforts. Hurricane Maria’s impact on Puerto Rico will likely also impact its ability to both repay its legacy indebtedness and participate in ongoing debt restructuring negotiations. The physical damage and resultant lost economic activity may exceed the collective aid Puerto Rico receives from private insurance, relief from FEMA and other federal agencies and programs. Economic activity in Puerto Rico may not return to pre-hurricane levels and Puerto Rico’s recovery could be more shallow and protracted than that experienced by other similarly affected governments, given Puerto Rico’s prior constrained liquidity and economic activity. While the federal government has made aid available to Puerto Rico, there can be no assurance that such aid will continue in the amounts necessary to offset the adverse impacts from Hurricane Maria in their entirety. In addition, the necessary and greater involvement of the federal government, through its actions to deliver disaster relief and other support services, in addition to the evolving role of the Financial Oversight and Management Board for Puerto Rico (“Oversight Board”) and the role of Puerto Rico in its own recovery, heightens political risk in connection with the restructuring of legacy debt. This risk could lead the Oversight Board, Puerto Rico or the federal government to seek to extract greater concessions from creditors based on the uncertainty of Puerto Rico’s long term recovery prospects. In this event, losses at National on select Puerto Rico exposures could increase materially. MBIA Corp. Insured Portfolio MBIA Corp.’s primary objectives are to satisfy claims of its policyholders, and to maximize future recoveries, if any, for its Senior Lend ers and surplus note holders and, thereafter, its preferred stock holders. MBIA Corp. is executing this strategy by pursuing various actions focused on maximizing the collection of recoveries and by reducing potential losses on its insurance exposures. MBI A Corp.’s insured portfolio 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 cash to meet its obligations. On January 20, 2017, MBIA Corp. was presented with and fully satisfied a claim of $ 770 million (the “Zoha r II Claim”) on an insurance policy it had written insuring the certain notes issued by Zohar II. MBIA Corp. was able to satisfy the Zohar II Claim as a result of having completed the Sale Transaction and by borrowing from the Facility , as described above, together with using approximately $ 60 million from its own resources. Refer to “ Note 1: Business Developments and Risks and Uncertainties ” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 for additional info rmation about these transactions. RMBS Recoveries The amount and timing of projected collections from excess spread from residential mortgage-backed securities (“RMBS”) and the put-back recoverable from Credit Suisse are uncertain. Zohar Recoveries Payme nt of a claim in November of 2015 on MBIA Corp.’s policy insuring the class A-1 and A-2 notes issued by Zohar CDO 2003-1, Limited (“Zohar I”) and satisfying the Zohar II Claim 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. There can be no assurance, however, that the value of the Zohar assets will be sufficient to permit MBIA Corp. to recover all or substantially all of the payments it made on Z ohar I and Zohar II. Refer to “ Note 5: Loss and Loss Adjustment Expense Reserves ” for information about MBIA Corp.’s r ecoveries. Corporate Liquidity Subsequent to September 30, 2017 , National declared and paid a dividend of $ 118 million to its ultimate parent, MBIA Inc. Also, subsequent to September 30, 2017, National purchased from MBIA Inc., certain MBIA Inc. 5.700 % Senior Notes due 2034 that were previously repurchased by MBIA Inc. and had not been retired , resulting in an increase to MBIA Inc.’s liquidity of $ 130 million . Based on the Com pany’s projec tions of National’s dividends, additional anticipated releases under its tax sharing agreement and related tax escrow account (“ Tax Escrow Account ”) , and other cash inflows, the Company expects that MBIA Inc. will have sufficie nt cash to satisfy its debt service and general corporate needs. However, MBIA Inc. continues to have liquidity risk which could be triggered by deterioration in the performance of invested assets, interruption of or reduction in dividends or tax payments received from operating subsidiaries, impaired access to the capital markets, as well as other factors which cannot be anticipated at this time. Furthermore, failure by MBIA Inc. to settle liabilities that are also insured by MBIA Corp. could result in cla ims on MBIA Corp. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
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, 2016 . 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 conso lidated financial statements have been prepared in accordance with the instructions to Fo rm 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 re ad 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, 2016 . The accompanying consolidated financial statements have not been audited by an independent re gistered 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, n ecessary 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 estima tes 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. Actu al 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, 2017 may not be indicative of the results that may be expected for the year ending December 31, 2017 . The December 31, 2016 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures requi red by GAAP for annual periods. Certain amounts have been reclassified in the prior year ’ s financial statements to conform to the current presentation. This includes a change in the presentation of cash paid when withholding shares for tax-withholding purp oses in “ Purchases of treasury stock ” on the Company’s consolidated statement of cash flows as required under Accounting Standards Update ( “ASU”) 2016-09 , “Compensation-Stock Compensation (Topic 718) ” . The change in presentation effected “ Operating and employee related expenses paid ” , in operating cash flows and “ Purchases of treasury stock ” , in financing cash flows, on the Company’s consolidated statement of cash flows in prior periods. Such reclassifications did not materially impact total revenu es, expenses, assets, liabilities, shareholders’ equity , operating cash flows, investing cash flows, or financing cash flows for all periods presente d. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
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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 Revenue from Contracts with Customers (Topic 606) (ASU 2014-09) and Deferral of the Effective Date (ASU 201 5 - 14 ) In May of 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 amends the accounting guidance for recognizing revenue for the transfer of goods or services from contracts with customers unless those contracts are within the scope of other accounting standards. ASU 2014-09 does not apply to financial guarantee insurance contracts within the scope o f Topic 944, “Financial Services — Insurance.” ASU 2014-09 applies to certain fees and reimbursements, and is not expected to materially impact revenue recogni tion of these fees and reimbursements. In August of 2015, the FASB issued ASU 2015-14, “Revenue f rom Contracts with Customers (Topic 606) — Deferral of the Effective Date. ” ASU 2015-14 defers the effective date of ASU 2014-09 to interim and annual periods beginning January 1, 2018, and is applied on a retrospective or modified retrospective basis. The adoption of ASU 2014-09 is not expected to materially impact the Company’s consolidated financial statements. Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) In Janua ry of 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 requires certain equity investments other than those accounted for under the equity method of accounting or result in consolidation of the investee to be measured at fair value with changes in fair value recognized in net income, and permits an entity to measure equity investments that do not have readily determinable fair values a t cost less any impairment plus or minus adjustments for certain changes in observable prices. An entity is also required to evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale (“AFS”) debt securities in c ombination with the entity’s other deferred tax assets. ASU 2016-01 requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability that results from a change in the instrument-specifi c credit risk for financial liabilities that the entity has elected to measure at fair value in accordance with the fair value option for financial instruments. ASU 2016-01 is effective for interim and annual periods beginning January 1, 2018, and is appli ed on a modified retrospective basis. Early adoption is not permitted with the exception of early application of the guidance that requires separate presentation in other comprehensive income of the change in the instrument-specific credit risk for financi al liabilities measured at fair value in accordance with the fair value option . Based on fair values as of September 30, 2017 of equity investments, the cumulative-effect adjustment, net of tax, related to net unrealized gains of such investments was ap proximately $ 1 million, which represents the amount that would have been reclassed from accumulated other comprehensive income (loss) (“AOCI”) to retained earnings had the Company adopted ASU 2016-01 on September 30, 2017 . As of September 30, 2017 , the Company had a full valuation allowance against its deferred tax asset. Refer to “Note 10: Income Taxes” for further information about this valuation allowance on the Company’s deferred tax asset. The Company is continuing to assess the impact of adopting ASU 2016-01 on its financial liabilities measured at fair value in accordance with the fair value option. The amount previously disclosed in its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017 may change materially based on its continued assessment, including as a result of the valuation allowance on its deferred tax assets recorded in the second quarter of 2017. The Company plans to adopt ASU 2016-01 in its entirety on January 1, 2018 and does not expect there to be a material impact to the Company’s consolidated financial statements. Leases (Topic 842) (ASU 2016-02) In February of 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” , that amends the accounting guidance for leasing transactions. ASU 2016-02 requir es a lessee to classify lease contracts as finance or operating leases, and to recognize assets and liabilities for the rights and obligations created by leasing transactions with lease terms more than twelve months. ASU 2016-02 substantially retains the c riteria for classifying leasing transactions as finance or operating leases. For finance leases, a lessee recognizes a right-of-use asset and a lease liability initially measured at the present value of the lease payments, and recognizes interest expense o n the lease liability separately from the amortization of the right-of-use asset. For operating leases, a lessee recognizes a right-of-use asset and a lease liability initially measured at the present value of the lease payments, and recognizes lease expen se on a straight-line basis. ASU 2016-02 is effective for interim and annual periods beginning January 1, 2019 with early adoption permitted, and is applied on a modified retrospective basis. The adoption of ASU 2016-02 is not expected to materially impact the Company’s consolidated financial statements. Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) In June of 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires financing receivables and other financial assets measured at amortized cost to be presented at the net amount expected to be collected by recording an allowance for credit losses with changes in the allowance recorded as credit loss expense or reversal of credit loss expense based on management’s current estimate of expected credit losses each period. ASU 2016-13 does not apply to credit losses on financial guarantee insuran ce contracts within the scope of Topic 944, “Financial Services-Insurance.” ASU 2016-13 also requires impairment relating to credit losses on AFS debt securities to be presented through an allowance for credit losses with changes in the allowance recorded in the period of the change as credit loss expense or reversal of credit loss expense. Any impairment amount not recorded through an allowance fo r credit losses on AFS debt securities is recorded through other comprehensive income. ASU 2016-13 is effective for interim and annual periods beginning January 1, 2020 with early adoption permitted beginning January 1, 2019. ASU 2016-13 is applied on a mo dified retrospective basis except that prospective application is applied to AFS debt securities with other-than-temporary impairments (“OTTI”) recognized before the date of adoption. The Company is evaluating the impact of adopting ASU 2016-13. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2017 | |
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Variable Interest Entities | Note 4: Variable Interest Entities 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 activit ies 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 inter ests 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 recei ve 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 ent ities 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 o f 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 a nd 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 contractua l 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 considere d 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 absor b 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 circum stances, 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. N o n c o n s o l i d a t e d V I Es T h e f ol l owin g t able s p r e s en t t h e t o t a l a ss e t s o f n o n c on s oli d a t e d V I E s i n whi ch t h e Co m p a n y ho l d s a v a r iab l e i n t e r e s t as o f September 30, 2017 a n d December 31, 2016 , through its insurance operations. T h e f o l lowi n g t abl e s al so p r e s en t t h e Co m pan y ’ s m a x i m u m e x po s u re t o l o ss f o r n o n c on s olid a t e d V I Es and carrying v a lu e s o f t h e a s s e t s a n d liab i li t ie s f o r i t s in t e r e st s in t he se V I Es a s o f September 30, 2017 an d December 31, 2016 . T h e Co m pa n y ha s agg r eg a t e d non c o n s o lida t e d V I Es b a s e d o n t he und e r l y in g c r e di t e x p o s u r e o f t h e in s u r e d ob l iga t ion . T h e na t u re o f t h e C o m p a n y ’ s v a r i a bl e in t e r e s t s i n non c on s o l ida t ed V I Es i s r el a t e d t o f in a n c ia l gua r an t ee s, i n s u r e d credit default swap (“ CD S ”) c on t r a c t s an d an y i n v e s t m en t s i n o b liga t io n s i ss ue d by non c o n s o lida t e d V I Es. September 30, 2017 Carrying Value of Assets Carrying Value of Liabilities Loss and Loss Maximum Unearned Adjustment VIE Exposure Premiums Insurance Loss Premium Expense In millions Assets to Loss Investments (1) Receivable (2) Recoverable (3) Revenue (4) Reserves (5) Insurance: Global structured finance: Mortgage-backed residential $ 7,660 $ 3,955 $ 19 $ 24 $ 248 $ 22 $ 407 Mortgage-backed commercial 226 106 - - - - - Consumer asset-backed 4,939 1,107 - 5 2 4 11 Corporate asset-backed 2,481 1,744 - 13 - 15 - Total global structured finance 15,306 6,912 19 42 250 41 418 Global public finance 19,850 3,104 - 10 - 15 - Total insurance $ 35,156 $ 10,016 $ 19 $ 52 $ 250 $ 56 $ 418 __________ (1) - Reported within "Investments" on MBIA's consolidated balance sheets. (2) - Reported within "Premiums receivable" on MBIA's consolidated balance sheets. (3) - Reported within "Insurance loss recoverable" on MBIA's consolidated balance sheets. (4) - Reported within "Unearned premium revenue" on MBIA's consolidated balance sheets. (5) - Reported within "Loss and loss adjustment expense reserves" on MBIA's consolidated balance sheets. December 31, 2016 Carrying Value of Assets Carrying Value of Liabilities Loss and Loss Maximum Unearned Adjustment VIE Exposure Premiums Insurance Loss Premium Expense In millions Assets to Loss Investments (1) Receivable (2) Recoverable (3) Revenue (4) Reserves (5) Insurance: Global structured finance: Collateralized debt obligations $ 3,167 $ 1,914 $ 51 $ 2 $ - $ - $ 73 Mortgage-backed residential 9,146 4,796 20 28 304 27 325 Mortgage-backed commercial 257 145 - - - - - Consumer asset-backed 4,893 1,331 - 7 2 5 8 Corporate asset-backed 2,625 2,205 5 18 - 20 - Total global structured finance 20,088 10,391 76 55 306 52 406 Global public finance 44,306 12,051 - 11 - 18 - Total insurance $ 64,394 $ 22,442 $ 76 $ 66 $ 306 $ 70 $ 406 __________ (1) - Reported within "Investments" on MBIA's consolidated balance sheets. (2) - Reported within "Premiums receivable" on MBIA's consolidated balance sheets. Excludes $125 million that is included within “Assets held for sale” on the Company’s consolidated balance sheets. (3) - Reported within "Insurance loss recoverable" on MBIA's consolidated balance sheets. (4) - Reported within "Unearned premium revenue" on MBIA's consolidated balance sheets. Excludes $134 million that is included within “Liabilities held for sale” on the Company’s consolidated balance sheets. (5) - Reported within "Loss and loss adjustment expense reserves" on MBIA's consolidated balance sheets. T he 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 princip a l a nd i n te r est whic h ma y be r e qu i r ed und e r c o mmitment s t o ma ke p a y me n t s on i n s ur e d ob li g atio ns iss u e d by n on co n s o li d ate d V I E s. Consolidated VIEs The carrying amounts of assets and liabilities of consolidated VIEs were $ 3.2 billion and $ 2.4 billion , respectively, as of September 30, 2017 , and $ 2.7 billion and $ 2.2 billion, respectively, as of December 31, 2016 . The carrying amounts of assets and liabilities are presented separately in “Assets of consolidated variable interest entities” and “Liabilities of consolidated variable interest entiti es” on the Company’s consolidated balance sheets. VIEs are consolidated or de consolidated based on an ongoing reassessment of controlling financial interest, when events occur or circumstances arise, and whether the ability to exercise rights that constitu te power to direct activities of any VIEs are present according to the design and characteristics of these entities. Two additional VIE s w ere consolidated during the nine months ended September 30, 2017 and one additional VIE w as consolidated during the nine months ended September 30, 2016 . Holders of insured obligations of issuer-sponsored VIEs related to the Company’s international and structured finance insurance segment do not have recourse to the general assets of MBIA. 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 insure d obligations and any additional variable interests held by MBIA. |
Loss and Loss Adjustment Expens
Loss and Loss Adjustment Expense Reserves | 9 Months Ended |
Sep. 30, 2017 | |
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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 insur ed transactions consist of municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utilities, airports, health care institutions, higher educational facilities, student loan issuers, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. The Company estimates future losses by using probability-weighted cas h 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 outs tanding for c apital appreciation bonds represents the par amount at the time of issuance of the insurance policy . Certain local governments remain under financial and budgetary stress and a few have filed for protection under title 11, United States Code ( the “Bankruptcy Code”) , or have entered into state statutory proceedings established to assist municipalities in managing through periods of severe fiscal stress. In the case of Puerto Rico, certain credits that the Company insures have filed petitions for covered instrumentalities under Title III of the Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”), which incorporates by reference provisions from the Bankruptcy Code. This could lead to an increase in defaults by such entities on the payment of their obligations and losses or impairments i n greater amounts on the Company’s insured transactions. The filing for protection under the Bankruptcy Code or entering state statutory proceedings does not necessarily result in a default or ind icate that an ultimate loss will occur . On September 20, 2017, Hurricane Maria made landfall in Puerto Rico as a Category 4 hurricane resulting in catastrophic damage to much of the island’s basic infrastructure, including its electrical transmission and distribution grid, telecommunications network, housing, roads, bridges, water and sewer systems. On September 21, 2017, the President of the United States approved a Major Disaster Declaration for Puerto Rico and the FEMA made federal disaster assistance available to Puerto Rico to supplement its recovery efforts. Hurricane Maria’s impact on Puerto Rico will likely also impact its ability to both repay its legacy indebtedness and participate in ongoing debt restructuring negotiations. The physical damage and resultant lost economic activity may exceed the collective aid Puerto Rico receives from private insurance, relief from FEMA and other federal agencies and programs. Economic activity in Puerto Rico may not return to pre-hurricane levels and Puerto Rico’s recovery could be more shallow and protracted than that experienced by other similarly affected governments, given Puerto Rico’s prior constrained liquidity and economic activity. While the federal government has made aid available to Puerto Rico, there can be no assurance that such aid will continue in the amounts necessary to offset the adverse impacts from Hurricane Maria in their entirety. In addition, the necessary and greater involvement of the federal government, through its actions to deliver disaster relief and other support services, in addition to the evolving role of the Oversight Board and the role of Puerto Rico in its own recovery, heightens political risk in connection with the restructuring of legacy debt. This risk could lead the Oversight Board, Puerto Rico or the federal government to seek to extract greater concessions from creditors based on the uncertainty of Puerto Rico’s long term recovery prospects. In this event, losses at National on select Puerto Rico exposures could increase materially. T he Company monitor s and analyze s these situations closely , however , the overall extent and duration of such events are uncertain . Inte rnational and Structured Finance Insurance T he international and structured finance insurance segment’s case basis reserves and insurance loss recoveries recorded in accordance with GAAP do not include estimates for policies insuring credit derivatives or on financial guarantee VIEs that are eliminated in consolidation . Policies insuring credit derivative contracts are accounted for as derivatives and are carried at fair value in the Company’s consolidated financial statements under GAAP. The fair value s of insured credit derivative contracts are influenced by a variety of market and transaction-specific factors that may be unrelated to potential future claim payments under the Company’s insurance policies. In the absence of credit impairments on insured credit derivative contracts or the early termination of such contracts at a loss, the cumulative unrealized losses recorded from these contracts should reverse before or at the maturity of the contracts. As the Company’s insured credit derivatives have si milar terms, conditions, risks, and economic profiles to its financial guarantee insurance policies, the Company evaluates them for impairment , under Statutory accounting, in the same way that it estimates loss and loss adjustment expense (“ LAE ”) for its f inancial guarantee policies. Refer to “ Note 8: Derivative Instruments ” for a further discussion of the Company’s use of derivatives and their impact on the Company’s consolidated financial statements. RMBS Case Basis Reserves (Financial Guarantees) The Company’s RMBS r eserves 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, 2017 for both first and second-lien RMBS transactions using a process called the “Roll Rate Methodology .” The Roll Rate Methodology is a multi-step process using database s of loan level information, proprietary internal cash flow model s , and commercially available model s to estimate potential losses and recoveries on insured bonds. Refer to “Note 6: Loss and Loss Adjustment Expense Reserves” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, for additional information on the Co mpany’s Roll Rate Methodology for its RMBS case basis reserves. The Company monitors portfolio performance on a monthly basis against projected performance, reviewing delinquencies, r oll r ates, 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. RMBS Recoveries The Company primarily records two types of recoveries related to insured RMBS exposures: excess spread that is generated from the trust structures in the insured transactions; and second-lien “put-back” claims related to those mortgage loan s whose inclusion in an insured securitization failed to comply with representations and warranties (“ineligible loans”). Excess Spread Excess spread within insured RMBS securitizations is the difference between interest inflows on mortgage loan collateral and interest outflows on the insured RMBS notes. The aggregate amount of excess spread depends on the future loss trends (which include future delinquency trends, average time to charge-off/liquidate delinquent loans, and the availability of pool mortgage insurance), the future spread between Prime and the London Interbank Offered Rate interest rates, and borrower refinancing behavior (which may be affected by changes in the interest rate environment) that results in voluntary prepayments. Minor deviations in loss trends and voluntary prepayments may substantially impact the amounts collected from excess spread. Excess spread may also include estimated recoverables from mortgage insurance contracts and subsequent recoveries on charged-off loans associated w ith the insured RMBS securitizations. Second-lien Put-Back Claims Related to Ineligible Loans The Company has settled the majority of the Company’s put-back claims . Only its claims against Credit Suisse remain outstanding. The Company’s settlement amounts have been consistent with the put-back recoveries that had been included in the Company’s financial statements at the times preceding the settlements . The put-back contract claim remaining with Credit Suisse is related to the inclusion of ineligible loans in the 2007-2 Home Equity Mortgage Trust securitization. Credit Suisse has challenged the Company’s assessment of the ineligibility of individual mortgage loans and the dispute is the subject of litigation for which there is no assurance that the Company will prevail. Based on the Company’s assessment of the strength of its contractual put-back rights against Credit Suisse, as well as on its prior settlements with other sellers/servicers and success of other monolines’ put-back settlements, the Company be lieves it will prevail in enforcing its contractual rights and that it is entitled to collect the full amount of its incurred losses, which totaled $ 435 million through September 30, 2017 . The Company is also entitled to collect interest on amounts paid; it believes that in the context of its put-back litigation, the appropriate interest rate should be the New York State statutory rate. However, the Company currently calculates its put-back recoveries using the contractual interest rate, which is lower th an the New York State statutory rate. Notwithstanding the foregoing, u ncertainty remains with respect to the ultimate outcome of the litigation with Credit Suisse, which is contemplated in the probability-weighted cash flow scenario based-modeling the Company uses. The Credit Suisse recovery scenarios are based on the amount of incurred losses measured against certain probabilit ies of ultimate resolution of the dispute with Credit Suisse. Most of the probability weight is assigned to partial recovery scenarios and a re discounted using the current risk-free discount rates associated against the underlying transaction’s cash flows . The Company continues to consider relevant facts and circumstances in developing its assumptions on expected cash inflows, probability of potential recoveries (including the outcome of litigation) and recovery period. The estimated amount and likelihood of potential recoveries are expected to be revised and supplemented to the extent there are developments in the pending litigation and/or changes to the financial condition of Credit Suisse. While the Company believes it will be successful in realizing its recoveries from its put-back contract claims against Credit Suisse , the ultimate amount recovered may be materially different from th at recorded by the Company given the inherent uncertainty of the manner of resolving the claims ( i. e., litigation and/or n egotiated out-of-court settlement ) and the assumptions used in the required estimation process for accounting purposes which are based, in part, on judgments and other information that are not easily corrobor ated by historical data or other relevant benchm arks. Refer to “ Note 14: Commitments and Contingencies ” for further information about the Company’s litigation with Credit Suisse. CDO Reserves The Company also has loss and LAE reserves on certain transactions within its collateralized debt obligation (“ CDO ”) portfolio, including its multi-sector CDO and high yield corporate CDO asset classes that were insured in the form of fi nancial guarantee policies. MBIA’s insured multi-sector CDOs are transactions that include a variety of collateral ranging from corporate bonds to structured finance assets (which includes , but are not limited to , RMBS-related collateral, multi-sector and corporate CDOs). The Company’s high yield corporate CDO portfolio consists of middle-market/special-opportunity corporate loan transaction s . Zohar Recoveries MBIA Corp. will seek to recover the payment s it made (plus interest and expenses) with respect to Zohar I and the Zohar II Claim . MBIA Corp. anticipates that the primary source of the recovery of the Zohar II Claim w ill come from the monetization of the assets of Zohar II, which include, among other things, loans made to, and equity interests in, companies purportedly controlled by the sponsor and former collateral manager of Zohar I and Zohar II (the “Zohar Sponsor”) (all the assets of Zohar II, the “Zohar II Assets”). In connection with the exerci se of its rights and remedies, MBIA Corp. directed the trustee for Zohar I to commence an auction (the “Auction”) of all of the assets of Zohar I, which occurred in 2016. MBIA Corp. was the winning bidder in the Auction, and in connection therewith, acquir ed the beneficial ownership of the Zohar I assets, which include loans made to, and equity interests in, companies purportedly controlled by the Zohar Sponsor (all the assets of Zohar I, the “Zohar I Assets”). Over time, MBIA Corp. expects to acquire the l egal ownership of the Zohar I Assets and recover all or substantially all of the payment it made (plus interest and expenses) with regards to the Zohar I claim . As of September 30, 2017 , the recoveries of Zohar I and Zohar II are included in “Loans recei vable at fair value” which are presented in “Assets of consolidated variable interest entities” on the Company’s consolidated balance sheets. There can be no assurance, however, that the value of the Zohar II Assets and the Zohar I Assets will be sufficien t to permit MBIA Corp. to recover all or substantially all of the payments it made on the Zohar I and the Z ohar I I Claim s . Failure to recover a substantial amount of such payments could impede its ability to make payments when due on other policies. MBIA C orp. 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 rehabi litation 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 determination to commence such a p roceeding or take other such actions is within the exclusive control of the NYSDFS. Refer to “Note 6: Loss and Loss Adjustment Expense Reserves” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, for additional information on the Company’s loss reserving process including risk-management activities. Summary of Loss and LAE Reserves and Recoveries The Company’s loss and LAE reserves and recoveries before consolidat ed VIE eliminations, along with amounts that were eliminated as a result of consolidat ed VIEs, which are included in the Company’s consolidated balance sheets as of September 30, 2017 and December 31, 2016 are presented in the following table: As of September 30, 2017 As of December 31, 2016 In millions Balance Sheet Line Item Balance Sheet Line Item Insurance loss recoverable Loan repurchase commitments Loss and LAE reserves Insurance loss recoverable Loan repurchase commitments Loss and LAE reserves U.S. Public Finance Insurance $ 356 $ - $ 348 $ 174 $ - $ 97 International and Structured Finance Insurance: Before VIE eliminations 1,559 406 694 551 404 650 VIE eliminations (1,304) - (224) (221) - (206) Total international and structured finance insurance 255 406 470 330 404 444 Total $ 611 $ 406 $ 818 $ 504 $ 404 $ 541 Changes in Loss and LAE Reserves The following table present s changes in the Company’s loss and LAE reserves for the nine months ended September 30, 2017 . Changes in loss reserves attributable to the accreti on of the claim liability discount, changes in discount rates, changes in amount and timing of estimated claim payments and recoveries, changes in assumptions and changes in LAE reserves are recorded in “Losses and loss adjustment” expenses in the Company’ s consolidated statements of operations. As of September 30, 2017 , the weighted average risk-free rate used to discount the Company’s loss reserves (claim liability) was 2.17 %. LAE reserves are generally expected to be settled within a one-year pe riod and are not discounted . As of September 30, 2017 and December 31, 2016 , the Company’s gross loss and LAE reserves included $ 69 million and $ 60 million, respectively, related to LAE. In millions Changes in Loss and LAE Reserves for the Nine Months Ended September 30, 2017 Gross Loss Loss Gross Loss and LAE Payments Accretion Changes in and LAE Reserves as of for Cases of Claim Changes in Unearned Changes in Reserves as of December 31, with Liability Discount Changes in Premium LAE September 30, 2016 Reserves (1) Discount Rates Assumptions Revenue Reserves Other (2) 2017 $ 541 $ (1,057) $ 7 $ 8 $ 498 $ (32) $ 9 $ 844 $ 818 ____________ (1) - Includes payments made to satisfy the Zohar II Claim. (2) - Primarily changes in the amount to satisfy the Zohar II Claim. The increase in the Company’s gross loss and LAE reserves reflected in the preceding table was primarily related to increases due to changes in assumptions on certain Puerto Rico exposures . Changes in Insurance Loss Recoverable and Recoveries on Unpaid Losses C u rr en t pe r io d ch a nge s i n th e C o m pan y ’ s est i mat e o f p o tent i a l r e c o v e r i e s ma y be r e c o r de d a s a n in s u r an c e l oss r e c ove r a bl e as s et , net t e d a g ain s t th e g r os s l o s s an d L A E r e se r v e l i abi l i t y , or bo t h . The following table present s changes in the Company’s insurance loss recoverable and changes in recoveries on unpaid losses reported within the Company’s claim liability for the nine months ended September 30, 2017 . Changes in insurance loss recoverable attributable to the accretion of the discount on the recoverable, changes in discount rates, changes in amount and timing of estimated collections, changes in assumptions and changes in LAE recoveries are rec orded in “Losses and loss adjustment” expenses in the Company’s consolidated statements of operations. Changes in Insurance Loss Recoverable and Recoveries on Unpaid Losses for the Nine Months Ended September 30, 2017 Gross Gross Reserve Collections Reserve as of for Cases Accretion Changes in Changes in as of December 31, with of Discount Changes in LAE September 30, In millions 2016 Recoveries Recoveries Rates Assumptions Recoveries Other (1) 2017 Insurance loss recoverable $ 504 $ (56) $ 7 $ 7 $ 133 $ - $ 16 $ 611 Recoveries on unpaid losses (2) 79 - 1 1 (42) (5) - 34 Total $ 583 $ (56) $ 8 $ 8 $ 91 $ (5) $ 16 $ 645 ____________ (1) - Primarily changes in amount and timing of collections. (2) - As of September 30, 2017 and December 31, 2016, excludes Puerto Rico recoveries, and as of December 31, 2016, the Zohar II recoveries, which have been netted against reserves. The inc rease in the Company’s insurance loss recoverable reflected in the preceding table was primarily due to changes in assumptions on certain Puerto Rico credits offset by a decrease in insured RMBS transactions . The decrease in the Company’s recoveries on unpaid losses is primarily related to insured RMBS transactions. Loss and LAE Activity The Company’s financial guarantee insurance losses and LAE (excluding insured credit derivatives and conso lidated VIEs), net of reinsurance for the three and nine months ended September 30, 2017 and 2016 are presented in the following table: Three Months Ended September 30, Nine Months Ended September 30, In millions 2017 2016 2017 2016 U.S. Public Finance Insurance Segment $ 141 $ 28 $ 310 $ 46 International and Structured Finance Insurance Segment: Second-lien RMBS 54 44 58 78 First-lien RMBS 9 - 84 61 CDOs 1 (23) 9 (46) Other (1) - 1 8 10 Losses and loss adjustment expense $ 205 $ 50 $ 469 $ 149 ________________ (1) - Includes non-U.S. public finance and other issues. For the three months ended September 30, 2017 , losses and LAE primarily related to increases in actual and expected payments on certain Puerto Rico exposures and decreases in projected collections from mortgage insurance included in the Company’s excess spread within its second-lien RMBS transactions from the settlement of litigation regarding insurance coverage involving Old Republic Insurance Corporation, Bank of America, N.A . and The Bank of New York Mellon. For the three months ended September 30, 2016 , losses and LAE primarily related to increases in actual and expected payments on certain Puerto Rico exposures and second-lien RMBS transactions. These were partially offset by increases in recoveries of expected payments on certain Puerto Rico exposures and decreases in expected payments on CDOs. For the nine months ended September 30, 2017 , losses and LAE primarily related to increases in actual and expected payments on certain Puerto Rico exposures, insured first-lien RMBS transactions and a decrease in actual and projected collections from mortgage insurance included in the Company’s excess spread within its second-lien RMBS transactions from the settlement of litigation regarding insurance coverage involving Old Republic Insurance Corporation, Bank of America, N.A . and The Bank of New York Mellon. For the nine months ended September 30, 2016 , losses and LAE primarily related to increases in actual and expected payments on certain Puerto Rico exposures and insured first and second-lien RMBS transactions and decreases in projected collections from excess spread within insured se cond-lien RMBS transactions. These were partially offset by increases in recoveries of expected payments on certain Puerto Rico exposures and decreases in expected payments on CDOs. Costs associated with remediating insured obligations assigned to the Comp any’s surveillance categories are recorded as LAE and included in “Losses and loss adjustment” expenses on the Company’s consolidated statements of operations. For the three months ended September 30, 2017 and 2016 , gross LAE related to remediating insur ed obligations were $ 6 million. For the nine months ended September 30, 2017 and 2016 , gross LAE related to remediating insured obligations were $ 33 million and $ 34 million, respectively. Surveillance Categories T h e f ol l owin g t abl e p r o v ide s in f o rm a t i o n a bou t t h e f i nan c ia l gu a r a n t e e s an d r el a t e d c la i m li a bili t y i n c lude d i n ea ch of M B I A ’ s s u rv e i llan ce c a t ego r ie s a s o f September 30, 2017 : Surveillance Categories Caution Caution Caution List List List Classified $ in millions Low Medium High List Total Number of policies 93 5 1 284 383 Number of issues (1) 20 4 1 120 145 Remaining weighted average contract period (in years) 7.1 4.6 8.6 9.7 8.8 Gross insured contractual payments outstanding: (2) Principal $ 3,016 $ 13 $ 108 $ 6,218 $ 9,355 Interest 2,772 4 49 5,795 8,620 Total $ 5,788 $ 17 $ 157 $ 12,013 $ 17,975 Gross Claim Liability (3) $ - $ - $ - $ 934 $ 934 Less: Gross Potential Recoveries (4) - - - 934 934 Discount, net (5) - - - (215) (215) Net claim liability (recoverable) $ - $ - $ - $ 215 $ 215 Unearned premium revenue $ 10 $ - $ 4 $ 79 $ 93 __________ (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. T h e f ol l owin g t abl e p r o v ide s in f o rm a t i o n a bou t t h e f i nan c ia l gu a r a n t e e s an d r el a t e d c la i m li a bili t y i n c lude d i n ea ch of M B I A ’ s s u rv e i llan ce c a t ego r ie s a s o f December 31, 2016 : Surveillance Categories Caution Caution Caution List List List Classified $ in millions Low Medium High List Total Number of policies 90 6 3 331 430 Number of issues (1) 17 4 2 126 149 Remaining weighted average contract period (in years) 7.5 3.4 7.2 7.0 7.1 Gross insured contractual payments outstanding: (2) Principal $ 2,917 $ 17 $ 320 $ 7,031 $ 10,285 Interest 2,795 4 107 2,777 5,683 Total $ 5,712 $ 21 $ 427 $ 9,808 $ 15,968 Gross Claim Liability (3) $ - $ - $ - $ 718 $ 718 Less: Gross Potential Recoveries (4) - - - 770 770 Discount, net (5) - - - (75) (75) Net claim liability (recoverable) $ - $ - $ - $ 23 $ 23 Unearned premium revenue $ 9 $ - $ 8 $ 68 $ 85 __________ (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 and Zohar II 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 liabilty for policies in a net recoverable position. (5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries. As of September 30, 2017 , the gross claim liability primarily related to insured first-lien RMBS transactions as well as certain Puerto Rico exposures . As of December 31, 2016 , the gross claim liability primarily related to insured first-lien RMBS transactions . As of September 30, 2017 and December 31, 2016 , the gross potential recoveries principally related to certain Puerto Rico exposures and insured second-lien RMBS transactions. As of September 30, 2017 , these potential recoveries exclude the recoveries of Zohar I and Zohar II that are included in “Loans receivable at fair value” which are presented in “Assets of consolidated variable interest entities” on the Company’s consolidated balance sheets . The Company’s recoveries have been, and remain based on either salvage rights, the rights conferred to MBIA through the transactional documents (inclusive of the insurance agreement), or subrogation rights embedded within financial guarantee insurance policies. Expected salvage and subrogation r ecoveries, as well as recoveries from other remediation efforts, reduce the Company’s claim liability. Once a claim payment has been made, the claim liability has been satisfied and MBIA’s right to recovery is no longer considered an offset to future expec ted claim payments, it is recorded as a salvage asset. The amount of recoveries recorded by the Company is limited to paid claims plus the present value of projected estimated future claim payments. As claim payments are made, the recorded amount of potent ial recoveries may exceed the remaining amount of the claim liability for a given policy. The gross claim liability and gross potential recoveries reflect the elimination of claim liabilities and potential recoveries related to VIEs consolidated by the Com p any. As of September 30, 2017 and December 31, 2016 , reinsurance recoverable on paid and unpaid losses was $ 15 million and $ 6 million, respectively, and w as included in “ Other assets ” on the Company’s consolidated balance sheets. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Fair Value Measurement | Note 6: Fair Value of Financial Instruments Fair Value Measurement Financial Assets Financial assets held by the Company primarily consist of investments in debt securities. Substantially all of the Company’s investments are priced by independent third parties, including pricing services and brokers. Typically, the Company receives one pricing service v alue or broker quote for each instrument, which represents a non-binding indication of value. The Company, along with its third-party portfolio manager, reviews the assumptions, inp uts and methodologies used by pricing services and brokers to obtain reason able assurance that the prices used in its valuations reflect fair value. When the Company and its third-party portfolio manager believe a third-party quotation differs significantl y from its internally developed expectation of fair value, whether higher or lower, the Company reviews its data or assumptions with the provider. This review includes comparing significant assumptions such as prepayment speeds, default ratios, forward yie ld curves, credit spreads and other significant quantitative inputs to internal assumptions, and working with the price provider to reconcile the differences. The price provider may subsequently provide an updated price. In the event that the price provide r does not update its price, and the Company still does not agree with the price provided, its third-party portfolio manager will obtain a price from another third-party provider or use an internally developed price which it believes represents the fair va lue of the investment. The fair values of investments for which internal prices were used were not significant to the aggregate fair value of the Company’s investment portfolio as of September 30, 2017 or December 31, 2016 . All challenges to third-par ty prices are reviewed by staff of the Company as well as its third-party portfolio manager with relevant expertise to ensure reasonableness of assumptions. A pricing analysis is reviewed and approved by the Company’s v aluation c ommittee. Financial Liabili ties (excluding derivative liabilities) Financial liabilities, excluding derivative liabilities, issued by the Company primarily consist of debt issued for general corporate purposes within its corporate segment, medium-term notes (“ MTNs ”), investment agre ements , debt issued by consolidated VIEs and warrants. The majority of the financial liabilities that the Company has elected to fair value or that require fair value reporting or disclosures are valued based on the estimated value of the underlying collat eral, the Company’s or a third-party’s estimate of discounted cash flow model estimates, or quoted market values for similar products. These valuations include adjustments for expected nonperformance risk of the Company. Derivative Liabilities The Company’ s derivative liabilities are primarily interest rate swaps and insured credit derivatives . The Company’s insured credit derivative contracts are non-traded structured credit derivative transactions. Since insured derivatives are highly customized and there is generally no observable market for these derivatives, the Company estimates their fair values in a hypothetical market based on internal models simulating what a similar company would charge to assume the Company’s position in the transaction at the me asurement date. This pricing would be based on the expected loss of the exposure. The Company reviews its valuation model results on a quarterly basis to assess the appropriateness of the assumptions and results in light of current market activity and cond itions. This review is performed by internal staff with relevant expertise. When market spreads or securities prices are observable for similar transactions, those spreads are an integral part of the analysis. Internal Review Process All significant financial assets and liabilities are reviewed by the valuation committee to ensure compliance with the Company’s policies and risk procedures in the development of fair values of financial assets and liabilities. Th e valuation committee rev iew s , among other things, key assumptions used for internally developed prices, significant changes in sources and uses of inputs, including changes in model approaches, and any adjustments from third-party inputs or prices to internally developed inputs o r prices. The committee also review s any significant impairment or improvements in fair values of the financial instruments from prior periods. The committee is comprised of senior finance team members with relevant experience in the financial instruments their committee is responsible for. T he committee document s its agreement with the fair value measurements reported in the Company’s consolidated financial statements. Valuation Techniques Valuation techniques for financial instruments measured at fair val ue or disclosed at fair value are described below. Fixed-Maturity Securities (including short-term investments) Held as Available-For-Sale, Investments Carried at Fair Value, Investments Pledged as Collateral, Investments Held-to-Maturity, and Other Invest ments These investments include investments in U.S. Treasury and government agencies, state and municipal bonds, foreign governments, corporate obligations, mortgage-backed securities (“MB S ”) , asset-backed securities (“ ABS ”) , money market securities, and p erpetual debt and equity securities. These investments are generally valued based on recently executed transaction prices or quoted market prices. When quoted market prices are not available, fair value is generally determined using quoted prices of sim ilar 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, 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 enhanceme nt. The investment in the fixed - income fund was measured at fair value by applying the net asset value per share practical expedient. The investment in the fixed - income fund may be redeemed on a quarterly basis with prior redemption notification of ninety days subject to withdrawal limitations. The investment is required to be held for a minimum of twelve months, and any subsequent quarterly redemption is limited to 25% of the investment or a complete redemption over four consecutive quarters in the amounts of 25%, 33%, 50%, and 100% of the remaining investment balance as of the first, second, third and fourth consecutive quarters, respectively. The fair value of the held-to-maturity (“ HTM ”) investments is determined using discounted cash flow models. Key inputs include unobservable cash flows projected over the expected term of the investment discounted using observable interest rate yield curves of similar securities. Investments based on q uoted 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, foreign government , money market securities and perpetual de bt 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 Leve l 2 of the fair value hierarchy. Investments that contain significant inputs that are not observable are categorized as Level 3. Cash and Cash Equivalents, Receivable for Investments Sold, Payable for Investments Purchased, Accrued Investment Income and In terest Payable for Derivatives The carrying amounts of cash and cash equivalents, receivable for investments sold, payable for investments purchased, accrued investment income and interest payable for derivatives approximate fair values due to the short-te rm nature and credit worthiness of these instruments. These items are categorized in Level 1 or Level 2 of the fair value hierarchy. Loans Receivable at Fair Value Loans receivable at fair value are comprised of loans held by consolidated VIEs consisting o f residential mortgage and corporate loans. 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. Fair values of corporate l oans are based on discounted cash flow methodologies . L oans receivable at fair value are determined using market prices adjusted for financial guarantees provided to VIE obligations and discounted cash flow techniques and ar e categorized in Level 3 of the fair value hierarchy. 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 are assets of the consolidated VIEs. This asset represents 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 an d for the sellers/servicers to cure, replace, or repurchase mortgage loans. Fair value measurements of loan repurchase commitments represent the amounts owed by the sellers/servicers to MBIA as reimbursement of paid claims. Loan repurchase commitments are not securities and no quoted prices or comparable market transaction information are observable or available. Fair values of loan repurchase commitments are determined using discounted cash flow techniques and are categorized in Level 3 of the fair value h ierarchy . Other Assets VIEs consolidated by the Company have entered into derivative instruments consisting of cross currency swaps. Cross currency swaps are entered into to manage the variability in cash flows resulting from fluctuations in foreign currency rates. The fair values of VIE derivatives 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 fa ir 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. Long-term Debt The fair value of long-term notes, debentures and surplus notes are estimated based on quoted prices for the se or similar securities. The fair value of the accrued interest expense on the surplus notes due in 2033 is determined based on the carrying amount of the accrued interest expense , adjusted for the credit risk of the Compan y. The carry ing amounts of accrued interest expense on all other long-term debt approximate fair value due to the short-term nature of the interest payment. Long-term debt is categorized in Level 2 of the fair value hierarchy. Medium- t erm Notes 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 s imilar instruments and considering the MTNs’ stated maturity and interest rate. Nonperformance risk is included in the quoted market prices and the matrix pricing grid. The Company has elected to measure certain MTNs at fair value on a recurring basis with changes in fair value reflected in earnings. MTNs are categorized in Level 3 of the fair value hierarchy. Investment Agreements The fair values of investment agreements are determined using discounted cash flow techniques based on contractual cash flows a nd observable interest rates currently being offered for similar agreements with comparable maturity dates. Investment agreements contain collateralization and termination agreements that substantially mitigate the nonperformance risk of the Company. As th e terms of the notes are private, and the timing and amount of contractual cash flows are not observable, these investment agreements are categorized in Level 3 of the fair value hierarchy. Variable Interest Entity Notes The fair values of VIE notes are de termined 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 s ecurities may be adjusted for factors unique to the securities, including any credit enhancement. When observable quoted prices are not available, fair value is determined based on discounted cash flow techniques of the underlying collateral using observab le and unobservable inputs. 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 hier archy 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-counte r derivatives are determined using valuation models based on observable inputs, nonperformance risk of the Company and nonperformance risk of the counterparties. Observable and market-based inputs include interest rate yields, credit spreads and volatiliti es. These derivatives 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—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 insured credit derivatives using valuation models based on observable inputs and considering nonperformance risk of the Company . Negotia ted settlements are also considered to validate the valuation models and to reflect assumptions the Company believes market participant s would use . Valuation Model Overview For the nine months ended September 30, 2017 , the Company used an internally devel oped Direct Price Model to value insured CDS contracts that incorporate market prices or estimated prices of similar securities that are obtained for all collateral within a transaction, the present value of the market-implied potential losses, and nonperf ormance risk. The valuation of insured derivatives includes the impact of its credit standing. The insured credit derivatives are categorized in Level 3 of the fair value hierarchy based on unobservable inputs that are significant to the fair value measure ment in its entirety. Prior to 2017, t he Company use d the B inomial E xpansion T echnique (“BET”) Model and the Direct Price Model to value insured CDS contracts. The BET Model estimate s what a bond insurer would charge to guarantee a transaction at the measu rement date, based on the market-implied default risk of the underlying collateral and the remaining structural protection in a deductible or subordination. Inputs to the process of determining fair value for structured transactions using the BET Model inc lude estimates of collateral loss, allocation of loss to separate tranches of the capital structure, credit spreads, recovery rates and nonperformance risk and weighted average life. The Company has also entered into a derivative contract as a result of a commutation. The fair value of the derivative is determined using a discounted cash flow model. Key inputs include unobservable cash flows projected over the expected term of the derivative, discounted using observable discount rates and CDS spreads. As t he significant inputs are un observable, the derivative contract is categorized in Level 3 of the fair value hierarchy. Other Liabilities Stock warrants issued by the Company are valued using the Black-Scholes model and are recorded at fair value. Inputs i nto the warrant valuation include the Company’s stock price, the strike price of the warrant, time to expiration, a volatility parameter, interest rates, and dividend data. As all significant inputs are market-based and observable, warrants are categorized in Level 2 of the fair value hierarchy. Other liabilities also include payables for certain contingent consideration . The fair value of the liability is based on the cash flow methodologies using observable and unobservable inputs. Unobservable inputs include invested asset balances and asset management fees that are significant to the fair value estimate and the liability is categorized in Level 3 of the fair value h ierarchy. Held For Sale As of December 31, 2016, the Company estimated the fair value of the assets and liabilities of MBIA UK held for sale based on the fair value of the expected total consideration for the sale of MBIA UK. The fair value of the sale con sideration is categorized in Level 2 of the fair value hierarchy. Refer to “Note 1: Business Developments and Risks and Uncertainties” for additional information about the sale of MBIA UK. Financial Guarantees Gross Financial Guarantees —The fair value of gross financial guarantees is determined using discounted cash flow techniques based on inputs that include (i) assumptions of expected losses on financial guarantee policies where loss reserves have not been recognized, (ii) amount of losses expected on financial guarantee policies where loss reserves have been established, net of expected recoveries, (iii) the cost of capital reserves required to support the financial guarantee liability, (iv) operating expenses, and (v) discount rates which reflect the expected nonperformance risk and recovery rates of the Company. The carrying value of the Company’s gross financial guarantees consists of unearned premium revenue and loss and LAE reserves, net of the insurance loss recoverable as rep orted on the Company’s consolidated balance sheets. Ceded Financial Guarantees — The fair value of ceded financial guarantees is determined by applying the percentage ceded to reinsurers to the related fair value of the gross financial guarantees. The carr ying value of ceded financial guarantees consists of prepaid reinsurance premiums and reinsurance recoverable on paid and unpaid losses as reported within “Other assets” , net of gross salvage payable to reinsurers as reported w ithin “Other liabilities ” on the Company’s consolidated balance sheets. 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 recurr ing basis as of September 30, 2017 and December 31, 2016 . Fair Value as of Range September 30, (Weighted In millions 2017 Valuation Techniques Unobservable Input Average) Assets of consolidated VIEs: Loans receivable at fair value $ 1,632 Market prices adjusted for financial Impact of financial guarantee 0% - 34% (6%) guarantees provided to VIE obligations Discounted cash flow Multiples (1) Loan repurchase commitments 406 Discounted cash flow Recovery rates (2) Breach rates (2) Liabilities of consolidated VIEs: Variable interest entity notes 430 Market prices of VIE assets adjusted for Impact of financial guarantee 0% - 65% (39%) financial guarantees provided Credit derivative liabilities, net: CMBS and multi-sector CDO 74 Direct Price Model Nonperformance risk 46% - 46% (46%) Other derivative liabilities 4 Discounted cash flow Cash flows $0 - $49 ($25) (3) ____________ (1) - Unobservable inputs are primarily based on comparable companies' EBITDA multiples. (2) - Recovery rates and breach rates include estimates about potential variations in the outcome of litigation with a counterparty. (3) - Midpoint of cash flows are used for the weighted average. Fair Value as of Range December 31, (Weighted In millions 2016 Valuation Techniques Unobservable Input Average) Assets of consolidated VIEs: Loans receivable at fair value $ 916 Market prices adjusted for financial Impact of financial guarantee 0% - 28% (3%) guarantees provided to VIE obligations Discounted cash flow Multiples (1) Loan repurchase commitments 404 Discounted cash flow Recovery rates (2) Breach rates (2) Liabilities of consolidated VIEs: Variable interest entity notes 476 Market prices of VIE assets Impact of financial guarantee 0% - 54% (24%) adjusted for financial guarantees provided Credit derivative liabilities, net: Recovery rates 25% - 40% (33%) CMBS 62 BET Model Nonperformance risk 10% - 32% (32%) Weighted average life (in years) 1.1 - 1.5 (1.3) CMBS spreads 25% - 35% (30%) Multi-sector CDO 2 Direct Price Model Nonperformance risk 58% - 58% (58%) Other derivative liabilities 20 Discounted cash flow Cash flows $0 - $83 ($42) (3) ____________ (1) - Unobservable inputs are primarily based on comparable companies' EBITDA multiples. (2) - Recovery rates and breach rates include estimates about potential variations in the outcome of litigation with a counterparty. (3) - Midpoint of cash flows are used for the weighted average. Sensitivity of Significant Unobservable Inputs The significant unobservable input s used in the fair value measurement of the Company’s loans receivable at fair value of consolidated VIEs are t he impact of the financial guarantee and multiples . The fair value of loans receivable are calculated by subtracting the value of the financial guarantee from the market value of VIE liabilities and by discounted cash flow methodologies . The value of a financial guarantee is estimated by the Company as th e present value of expected cash payments under the policy. As expected cash payments provided by the Company under the insurance policy increase , there is a lower expected cash flow on the underlying loans receivable of the VIE. This results in a lower fa ir value of the loans receivable in relation to the obligations of the VIE. Multiples are external factors that are considered when determining the fair values of certain loans. Any increase or decrease in multiples would result in an increase or decrease in the fair value, respectively. The significant unobservable inputs used in the fair value measurement of the Company’s loan repurchase commitments of consolidated VIEs are the recovery rates and breach rates. Recovery rates reflect the estimates of futu re cash flows reduced for litigation delays and risks and/or potential financial distress of the sellers/servicers. The estimated recoveries of the loan repurchase commitments may differ from the actual recoveries that may be received in the future. Breach rates represent the rate at which mortgages fail to comply with stated representations and warranties of the sellers/servicers. Significant increases or decreases in the recovery rates and the breach rates would result in significantly higher or lower fai r values of the loan repurchase commitments, respectively. Additionally, changes in the legal environment and the ability of the counterparties to pay would impact the recovery rate assumptions, which could significantly impact the fair value measurement. Any significant challenges by the counterparties to the Company’s determination of breaches of representations and warranties could have a material adverse impact on the fair value measurement. Recovery rates and breach rates are determined independently. Changes in one input will not necessarily have any impact on the other input. 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. The value of a financial guarantee is estimated by the Company as the present value of expected cash payments under the policy. As the value of the gu arantee provided by the Company to the obligations issued by the VIE increases, the credit support adds value to the liabilities of the VIE. This results in an increase in the fair value of the liabilities of the VIE. Effe ctive in 2017, the Company used th e Direct Price Model to value its commercial mortgage-backed securities (“CMBS”) and multi-sector CDO credit derivatives . The significant unobservable input used in the fair value measurement was nonperformance risk. The nonperformance risk is an assumption of MBIA Corp.’s own ability to pay and whether MBIA Corp. will have the necessary resources to pay the obligations as they come due. Any significant increase or decrease in MBIA Corp.’s nonperformance risk would result in a decrease or increase in the fair value of the derivative liabilities, respectively. Prior to 2017, the Company used the BET Model to value its CMBS credit derivatives . The significant unobservable input s used in the fair value measurement of its CMBS cred it derivatives were CMBS spreads, recovery rates, nonperformance risk and weighted average life. The CMBS spread is an indicator of credit risk of the collateral securities. The recovery rate represents the percentage of notional expected to be recovered after an asset defaults, indicating the severity of a potential loss. The nonperformance risk is an a ssumption of MBIA Corp.’s own ability to pay and whether MBIA Corp. will have the necessary resources to pay the obligations as they come due. Weighted average life is based on the Company’s estimate of when the principal of the underlying collateral of th e CMBS structure will be repaid. A significant increase or decrease in CMBS spreads would result in an increase or decrease in the fair value of the derivative liability, respectively. A significant increase in weighted average life can result in an increa se or decrease in the fair value of the derivative liability, depending on the discount rate and the timing of significant losses. Any significant increase or decrease in recovery rates, or MBIA Corp.’s nonperformance risk would result in a decrease or inc rease in the fair value of the derivative liabilities, respectively. CMBS spreads, recovery rates, nonperformance risk and weighted average lives are determined independently. Changes in one input will not necessarily have any impact on the other inputs. The significant unobservable input used in the fair value measurement of MBIA Corp.’s other derivatives, which are valued using a discount ed cash flow m odel , is the estimates of future cash flows discounted using market rates and CDS spreads. Any significant increase or decrease in future cash flows would result in a n increase or decrease in the fair value of the derivative liabilit y , respec tively . 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, 2017 and December 31, 2016 : Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Counterparty for Identical Observable Unobservable and Cash Balance as of Assets Inputs Inputs Collateral September 30, In millions (Level 1) (Level 2) (Level 3) Netting 2017 Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 724 $ 93 $ - $ - $ 817 State and municipal bonds - 1,113 - - 1,113 Foreign governments - 8 - - 8 Corporate obligations - 1,511 - - 1,511 Mortgage-backed securities: Residential mortgage-backed agency - 699 - - 699 Residential mortgage-backed non-agency - 36 - - 36 Commercial mortgage-backed - 51 - - 51 Asset-backed securities: Collateralized debt obligations - 72 - - 72 Other asset-backed - 315 5 (1) - 320 Total fixed-maturity investments 724 3,898 5 - 4,627 Money market securities 269 - - - 269 Perpetual debt and equity securities 26 21 - - 47 Fixed-income fund - - - - 81 (2) Cash and cash equivalents 116 - - - 116 Derivative assets: Non-insured derivative assets: Interest rate derivatives - 3 - - 3 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Counterparty for Identical Observable Unobservable and Cash Balance as of Assets Inputs Inputs Collateral September 30, In millions (Level 1) (Level 2) (Level 3) Netting 2017 Assets of consolidated VIEs: Corporate obligations - 20 - - 20 Mortgage-backed securities: Residential mortgage-backed non-agency - 111 - - 111 Commercial mortgage-backed - 39 - - 39 Asset-backed securities: Collateralized debt obligations - 8 1 (1) - 9 Other asset-backed - 10 - - 10 Cash 20 - - - 20 Loans receivable at fair value: Residential loans receivable - - 759 - 759 Corporate loans receivable - - 873 - 873 Loan repurchase commitments - - 406 - 406 Other assets: Currency derivatives - - 13 (1) - 13 Other - - 17 (1) - 17 Total assets $ 1,155 $ 4,110 $ 2,074 $ - $ 7,420 Liabilities: Medium-term notes $ - $ - $ 127 (1) $ - $ 127 Derivative liabilities: Insured derivatives: Credit derivatives - 2 74 - 76 Non-insured derivatives: Interest rate derivatives - 204 - - 204 Other - - 4 - 4 Other liabilities: Warrants - 12 - - 12 Other payable - - 7 (1) - 7 Liabilities of consolidated VIEs: Variable interest entity notes - 710 430 - 1,140 Total liabilities $ - $ 928 $ 642 $ - $ 1,570 ____________ (1) - Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities. (2) - Investment that was measured at fair value by applying the net asset value per share practical expedient, and was required not to be classified in the fair value hierarchy. Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Counterparty for Identical Observable Unobservable and Cash Balance as of Assets Inputs Inputs Collateral December 31, In millions (Level 1) (Level 2) (Level 3) Netting 2016 Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 825 $ 112 $ - $ - $ 937 State and municipal bonds - 1,440 - - 1,440 Foreign governments - 9 - - 9 Corporate obligations - 1,332 2 (1) - 1,334 Mortgage-backed securities: Residential mortgage-backed agency - 868 - - 868 Residential mortgage-backed non-agency - 45 - - 45 Commercial mortgage-backed - 43 - - 43 Asset-backed securities: Collateralized debt obligations - 7 15 (1) - 22 Other asset-backed - 257 44 (1) - 301 Total fixed-maturity investments 825 4,113 61 - 4,999 Money market securities 521 - - - 521 Perpetual debt and equity securities 26 9 - - 35 Fixed-income fund - - - - 75 (2) Cash and cash equivalents 163 - - - 163 Derivative assets: Non-insured derivative assets: Interest rate derivatives - 3 - - 3 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Counterparty for Identical Observable Unobservable and Cash Balance as of Assets Inputs Inputs Collateral December 31, In millions (Level 1) (Level 2) (Level 3) Netting 2016 Assets of consolidated VIEs: Corporate obligations - 27 - - 27 Mortgage-backed securities: Residential mortgage-backed non-agency - 149 - - 149 Commercial mortgage-backed - 52 - - 52 Asset-backed securities: Collateralized debt obligations - 7 1 (1) - 8 Other asset-backed - 18 1 (1) - 19 Cash 24 - - - 24 Loans receivable at fair value: Residential loans receivable - - 916 - 916 Corporate loans receivable - - 150 (1) - 150 Loan repurchase commitments - - 404 - 404 Derivative assets: Currency derivatives - - 19 (1) - 19 Total assets $ 1,559 $ 4,378 $ 1,552 $ - $ 7,564 Liabilities: Medium-term notes $ - $ - $ 101 (1) $ - $ 101 Derivative liabilities: Insured derivatives: Credit derivatives - 2 64 - 66 Non-insured derivatives: Interest rate derivatives - 213 - - 213 Other - - |
Investments
Investments | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Investments | Note 7: Investments Investments, excluding those elected under the fair value option, include debt and equity securities classified as either AFS or HTM. Other AFS investments primarily comprise money market funds. T h e f o l l o w i n g t a b l e s p r e s en t t h e a m o r t i z e d c o st , f a i r v a l u e , corresponding gross unrealized gains and losses and OTTI for AFS and HTM investments in the Company’s c o n s o l i d a te d i n v es t m en t p o r tf o l i o a s o f September 30, 2017 a nd December 31, 2016 : September 30, 2017 Gross Gross Other-Than- Amortized Unrealized Unrealized Fair Temporary In millions Cost Gains Losses Value Impairments (1) AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 785 $ 32 $ (5) $ 812 $ - State and municipal bonds 1,054 65 (6) 1,113 - Foreign governments 8 - - 8 - Corporate obligations 1,489 28 (75) 1,442 (64) Mortgage-backed securities: Residential mortgage-backed agency 699 2 (8) 693 - Residential mortgage-backed non-agency 38 2 (4) 36 - Commercial mortgage-backed 49 - - 49 - Asset-backed securities: Collateralized debt obligations 70 - - 70 - Other asset-backed 311 1 - 312 1 Total fixed-maturity investments 4,503 130 (98) 4,535 (63) Money market securities 267 - - 267 - Perpetual debt and equity securities 4 1 - 5 - Total AFS investments $ 4,774 $ 131 $ (98) $ 4,807 $ (63) HTM Investments Assets of consolidated VIEs: Corporate obligations $ 890 $ 7 $ - $ 897 $ - Total HTM investments $ 890 $ 7 $ - $ 897 $ - _______________ (1) - Represents unrealized gains or losses on OTTI securities recognized in AOCI, which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities reported in AOCI. December 31, 2016 Gross Gross Other-Than- Amortized Unrealized Unrealized Fair Temporary In millions Cost Gains Losses Value Impairments (1) AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 909 $ 30 $ (10) $ 929 $ - State and municipal bonds 1,382 72 (15) 1,439 - Foreign governments 8 - - 8 - Corporate obligations 1,352 20 (102) 1,270 (73) Mortgage-backed securities: Residential mortgage-backed agency 871 3 (12) 862 - Residential mortgage-backed non-agency 50 1 (6) 45 (3) Commercial mortgage-backed 41 - - 41 - Asset-backed securities: Collateralized debt obligations 22 - - 22 - Other asset-backed 294 2 (3) 293 1 Total fixed-maturity investments 4,929 128 (148) 4,909 (75) Money market securities 517 - - 517 - Perpetual debt and equity securities 4 1 - 5 - Total AFS investments $ 5,450 $ 129 $ (148) $ 5,431 $ (75) HTM Investments Assets of consolidated VIEs: Corporate obligations $ 890 $ - $ (14) $ 876 $ - Total HTM investments $ 890 $ - $ (14) $ 876 $ - _______________ (1) - Represents unrealized gains or losses on OTTI securities recognized in AOCI, which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities reported in AOCI. T h e f ol l owin g t abl e p r e s en t s t h e di s t r i bu t io n b y c on t r a c t u a l m a t u r i t y o f AFS and HTM f i x ed -m a t u r i t y securities at a m o r t i z e d c o st a n d f ai r v alu e a s o f September 30, 2017 . Con t r a c t ua l m a t u r i t y m a y d i f f e r f r o m e x pe c t e d m a t u r i t y a s bo rr ow e r s m a y h a v e t h e r igh t t o c a l l o r p r e p a y ob l iga t ion s. AFS Securities HTM Securities Consolidated VIEs Amortized Amortized In millions Cost Fair Value Cost Fair Value Due in one year or less $ 508 $ 509 $ - $ - Due after one year through five years 874 883 - - Due after five years through ten years 684 635 - - Due after ten years 1,270 1,348 890 897 Mortgage-backed and asset-backed 1,167 1,160 - - Total fixed-maturity investments $ 4,503 $ 4,535 $ 890 $ 897 Deposited and Pledged Securities T h e f ai r v alu e o f s e c u r i t ie s o n depo s i t wi t h v a r io u s r egu l a t o r y au t ho r i t ie s a s o f September 30, 2017 and December 31, 2016 wa s $ 10 million and $ 11 million, respectively . T h e se d epo s i t s a re r equi r e d t o c o m p l y wi t h s t a t e in s u r an ce law s. 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. I n v e s t m en t ag r ee m en t obligations r equ i re t h e Co m pan y t o ple d g e s e c u r i t i e s a s c o lla t e r al. Securities pledged in connection with investment agreement s may not be repled ged by the investment agreement counterparty. As o f September 30, 2017 a nd December 31, 2016 , t h e f ai r v a l u e o f s e c u r i t ie s p ledge d a s c olla t e r a l for these in v e s t m en t ag r e e m e n t s app r o x i m a t e d $ 380 m i llio n an d $ 416 m i l lion , r e s p e c t i v e l y . T h e Co m pan y ’ s c olla t e r a l a s o f September 30, 2017 c on s i s t e d p r i n c ipal l y o f U . S . T r ea s u ry a n d go v e r n m en t ag e n cy and state and municipal bonds , and wa s p r i m a r il y hel d wi t h m a j o r U . S. ban ks. A ddi t io n all y, t h e Co m pan y pledg e d c a sh an d m one y m a rk e t s e c u r i t i e s as c oll a t e r a l u n de r i n v e s t m en t a g r ee m en t s of $ 1 m il l io n and $ 6 m il l io n a s o f September 30, 2017 a nd December 31, 2016 . Impaired Investments The following tables present the gross unrealized losses related to AFS and HTM investments as of September 30, 2017 and December 31, 2016 : September 30, 2017 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized In millions Value Losses Value Losses Value Losses AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 279 $ (2) $ 87 $ (3) $ 366 $ (5) State and municipal bonds 162 (3) 53 (3) 215 (6) Foreign governments 4 - - - 4 - Corporate obligations 388 (4) 135 (71) 523 (75) Mortgage-backed securities: Residential mortgage-backed agency 344 (4) 140 (4) 484 (8) Residential mortgage-backed non-agency 9 - 15 (4) 24 (4) Commercial mortgage-backed 25 - 6 - 31 - Asset-backed securities: - Collateralized debt obligations 5 - - - 5 - Other asset-backed 149 - 2 - 151 - Total AFS investments $ 1,365 $ (13) $ 438 $ (85) $ 1,803 $ (98) December 31, 2016 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized In millions Value Losses Value Losses Value Losses AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 432 $ (10) $ - $ - $ 432 $ (10) State and municipal bonds 339 (13) 18 (2) 357 (15) Foreign governments 5 - - - 5 - Corporate obligations 534 (29) 52 (73) 586 (102) Mortgage-backed securities: Residential mortgage-backed agency 436 (9) 122 (3) 558 (12) Residential mortgage-backed non-agency 1 - 29 (6) 30 (6) Commercial mortgage-backed 6 - 15 - 21 - Asset-backed securities: Collateralized debt obligations 7 - 15 - 22 - Other asset-backed 112 (1) 49 (2) 161 (3) Total AFS investments $ 1,872 $ (62) $ 300 $ (86) $ 2,172 $ (148) HTM Investments Assets of consolidated VIEs: Corporate obligations $ - $ - $ 876 $ (14) $ 876 $ (14) Total HTM investments $ - $ - $ 876 $ (14) $ 876 $ (14) Gross unrealized losses on AFS investments decreased as of September 30, 2017 compared with December 31, 2016 primarily due to tightening credit spreads and lower long-term interest rates. Gross unrealized losses on HTM investments decreased as of September 30, 2017 compared with December 31, 2016 primarily due to 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, 2017 and December 31, 2016 was 15 and 22 years , respectively . As of September 30, 2017 and December 31, 2016 , there were 59 and 46 securities, respectively, that were in an unrealized loss position for a continuous twelve-month period or longer, of which , fair value s of 27 and 12 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 cont inuous twelve-month period or longer where fair value was below book value by more than 5% as of September 30, 2017 : AFS Securities HTM Securities Percentage of Fair Value Number of Book Value Fair Value Number of Book Value Fair Value Below Book Value Securities (in millions) (in millions) Securities (in millions) (in millions) > 5% to 15% 21 $ 136 $ 126 - $ - $ - > 15% to 25% 2 15 12 - - - > 25% to 50% 1 1 - - - - > 50% 3 101 37 - - - Total 27 $ 253 $ 175 - $ - $ - 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 w ould 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, 2017 that would require the sale of impaired securities. Impaired securities tha t the Company intends to sell before the expected recovery of such securities’ fair values have been written down to fair value. Other-Than-Temporary Impairments The Company’s fixed - maturity securities for which fair value is less than amortized cost are reviewed quarterly in order to determin e whether a credit loss exists. The portion of certain OTTI losses on fixed - maturity securities that does not represent credit losses is recognized in AOCI. Refer to “Note 8: Investments” in the Notes to Con solidated Financial Statements included in the Company’s Annual Report on Form 10 - K for the year ended December 31, 2016 for a disc ussion of the Company’s policy for OTTI and its determination of credit loss. The following table presents the amount of credi t loss impairments recognized in earnings on fixed - maturity securities held by MBIA as of the dates indica ted, for which a portion of the OTTI losses was recognized in AOCI, and the corresponding changes in such amounts . The additional credit loss impairment for the nine months ended September 30, 2017 was primarily related to municipal bonds for which a loss was recognized as the difference between their amortized cost and their fair values in the second qua rter of 2017. This OTTI resulted from liquidity concerns, recent credit rating downgrades and other adverse financial conditions of the issuer. The reduction from credit loss impairment for the three and nine months ended September 30, 2017 was primarily related to municipal bonds previously impaired which were further impaired to fair value during the third quarter of 2017. In millions Three Months Ended September 30, Nine Months Ended September 30, Credit Losses Recognized in Earnings Related to Other-Than-Temporary Impairments 2017 2016 2017 2016 Beginning balance $ 42 $ 26 $ 29 $ 26 Additions for credit loss impairments recognized in the current period on securities not previously impaired - - 11 - Additions for credit loss impairments recognized in the current period on securities previously impaired 2 - 4 - Reductions for credit loss impairments previously recognized on securities sold during the period (2) - (2) - Reductions for credit loss impairments previously recognized on securities impaired to fair value during the period (11) - (11) - Ending balance $ 31 $ 26 $ 31 $ 26 The Company does not recognize OTTI 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, 2017 that were in an unrealized loss position and insured by a financial guarantor, along with the amount of insurance loss reserves corresponding to the pa r amount owned by the Company: Unrealized Insurance Loss In millions Fair Value Loss Reserve (2) Mortgage-backed: MBIA (1) $ 15 $ (4) $ 16 Corporate obligations: MBIA (1) 13 (1) - Other: Other 2 - - Total $ 30 $ (5) $ 16 _______________ (1) - Includes investments insured by MBIA Corp. and National. (2) - Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured. Sales of Available-for-Sale Investments Gross r eali z e d ga i n s and l o s s e s 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, 2017 and 2016 are as follows: Three Months Ended September 30, Nine Months Ended September 30, In millions 2017 2016 2017 2016 Proceeds from sales $ 312 $ 848 $ 1,300 $ 1,785 Gross realized gains $ 5 $ 33 $ 24 $ 70 Gross realized losses $ (5) $ - $ (9) $ (18) |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
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 and inflation-linked 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 . Corporate The Company has entered into derivative instrument s primarily consisting of interest rate swaps to manage the risks a ssociated with fluctuations in interest rates affecting the value of certain assets . I n t e r na t i on a l and S t r u c t u r e d F i n an c e I n s u r an c e The Company has entered into derivative instrument s to provide financial guarantee insurance to structured finance transactions that do not qualify for the financial guarantee scope exception and, therefore, are accounted for as derivative s . These insured CDS contracts, primarily referencing CMBS and A BS , are intended to be held for the entire term of the contract unless a settlement with the counterparty is negotiated . The Company no longer insures new CDS contracts except for transactions related to the restructuring or reduction of existing derivative exposure. The Company’s derivative exposure within its international and structured finance insurance segment also includes insured interest rate and inflation-linked swaps related to insured debt issues. The Company has also entered into a derivative contract as a result of a co mmutation occurring in 2014. Changes in the fair value of the Company’s 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. Variabl e Interest Entities VIEs consolidated by the Company have entered into derivative instrument s consisting of cross currency swaps . Cross currency swaps are entered into to manage the variability in cash flows resulting from fluctuations in foreign currency rates . Credit Derivatives Sold The following table s present information about credit derivatives sold by the Company’s insurance operations that were outstanding as of September 30, 2017 and December 31, 2016 . Credit ratings represent the lower of underlying ratings assigned to the collateral by Moody’s , S&P or MBIA. $ in millions As of September 30, 2017 Notional Value Credit Derivatives Sold Weighted Average Remaining Expected Maturity AAA AA A BBB Below Investment Grade Total Notional Fair Value Asset (Liability) Insured credit default swaps 3.0 Years $ - $ - $ 115 $ - $ 137 $ 252 $ (74) Insured swaps 15.6 Years - 125 1,903 847 20 2,895 (2) Total notional $ - $ 125 $ 2,018 $ 847 $ 157 $ 3,147 Total fair value $ - $ - $ (1) $ (1) $ (74) $ (76) $ in millions As of December 31, 2016 Notional Value Credit Derivatives Sold Weighted Average Remaining Expected Maturity AAA AA A BBB Below Investment Grade Total Notional Fair Value Asset (Liability) Insured credit default swaps 3.8 Years $ - $ - $ 115 $ - $ 473 $ 588 $ (64) Insured swaps 15.7 Years - 137 2,146 732 20 3,035 (2) Insured swaps - held for sale 14.3 Years - - - 420 - 420 - Total notional $ - $ 137 $ 2,261 $ 1,152 $ 493 $ 4,043 Total fair value $ - $ - $ (1) $ (1) $ (64) $ (66) Internal credit ratings assigned by MBIA on the underlying collateral are derived b y t h e Co m pan y ’ s s u r v e ill a n ce g r ou p . I n a ss ign i n g a n i n t e r n a l r a t i n g , c u rr en t s t a t u s r epo r t s f r o m i ss ue rs an d t r u s t ee s, a s w el l a s p ubli c l y a v ai l able t r a n s a c t i o n - s p e c i f i c i n f o rm a t ion , a re r e v iew e d . A l s o , whe re ap p r o p r ia t e , c a sh f l o w a n al ys e s an d c ol l a t e r a l v a l ua t ion s a re c on s id e r e d . T h e m a x i m u m p o t e n t i a l a m o u n t o f f u t u re p a y m en t s ( u n di sc oun t ed ) o n C D S c on t r a c t s a re e s t i m a t e d a s t he no t ion a l v a l u e plu s an y a d di t iona l d e b t s e rv i ce c o s t s, s u ch a s in t e r e st o r o t h e r a m ou n t s owin g o n CD S c on t r a c t s . T he m a x i m u m a m oun t o f f u t u re debt service pa ym en t s t ha t MB I A m a y b e r equi r e d t o m a ke und e r t he se g uarantees as of September 30, 2017 i s $ 282 million . T h e m a x i m u m po t en t ia l a m ou n t o f f u t u re pa ym en t s ( un d i s c o un t ed ) o n i n s u r e d s w a p s a re e s t i m a t e d a s t he no t ion a l v a l u e o f s u ch c o n t r a c t s. M B I A m a y hol d r e c ou rse p r o v i s ion s wi t h t hi rd pa r t ie s i n de r i v a t i ve instrument s t h r o u g h s ub r o ga t i on r igh t s , wh e r e b y i f M B I A m a k e s a c lai m pa ym en t , i t may be en t i t l e d t o an y r i gh t s o f t h e in s u r ed c oun t e r pa r t y, in c lu d in g t h e r ig h t t o an y a ss e t s hel d a s c o lla t e r al. 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 t o the holder to pay for replacing the counterparty in the event that the counterparty defaults. As of September 30, 2017 , the Company did not hold or post cash collateral to derivative counterparties . As of December 31, 2016 , the Company did not hold cash collat eral to derivative counterparties but posted cash collateral to derivative counterparties of $ 1 million. All of the $ 1 million is included within “Other liabilities” as cash collateral netted against accrued interest on derivative liabilities . As of September 30, 2017 and December 31, 2016 , the Company had securities with a fair value of $ 250 million an d $ 276 million , respectively, posted to derivative counterparties and th ese amount s are included within “Fixed-maturity securities held as available-for-sale, at fair value” on the Company’s consolidated balance sheets. As of September 30, 2017 and December 31, 2016 , the fair value on one Credit Support Annex (“CSA”) was $ 3 million. This CSA governs collateral posting requirements between MBIA and its derivative counterparties . The Company did not receive collateral due to the Co mpany’s credit rating, which was below the CSA minimum credit ratings level for holding counterparty collateral . As of September 30, 2017 and December 31, 2016 , the counterpart y was rated A1 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 m aster 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 instrume nt and balance sheet location, before counterparty netting and posting of cash collateral, as of September 30, 2017 : In millions Derivative Assets (1) Derivative Liabilities (1) Notional Amount Fair Fair Derivative Instruments Outstanding Balance Sheet Location Value Balance Sheet Location Value Not designated as hedging instruments: Insured credit default swaps $ 252 Other assets $ - Derivative liabilities $ (74) Insured swaps 2,895 Other assets - Derivative liabilities (2) Interest rate swaps 749 Other assets 3 Derivative liabilities (204) Interest rate swaps-embedded 419 Medium-term notes 2 Medium-term notes (14) Currency swaps-VIE 63 Other assets-VIE 13 Derivative liabilities-VIE - All other 49 Other assets - Derivative liabilities (4) All other-embedded 1 Other investments - Other investments (1) Total non-designated derivatives $ 4,428 $ 18 $ (299) __________ (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. The following table presents the total fair value of the Company’s derivat ive assets and liabilities by instrument and balance sheet location, before counterparty netting and posting of cash collateral , as of December 31, 2016 : In millions Derivative Assets (1) Derivative Liabilities (1) Notional Amount Fair Fair Derivative Instruments Outstanding Balance Sheet Location Value Balance Sheet Location Value Not designated as hedging instruments: Insured credit default swaps $ 588 Other assets $ - Derivative liabilities $ (64) Insured swaps 3,035 Other assets - Derivative liabilities (2) Insured swaps - held for sale 420 Assets held for sale - Liabilities held for sale - Interest rate swaps 1,062 Other assets 3 Derivative liabilities (213) Interest rate swaps-embedded 376 Medium-term notes 2 Medium-term notes (17) Currency swaps-VIE 71 Other assets-VIE 20 Derivative liabilities-VIE - All other 83 Other assets - Derivative liabilities (20) All other-VIE 35 Other assets-VIE - Derivative liabilities-VIE - All other-embedded 5 Other investments - Other investments - Total non-designated derivatives $ 5,675 $ 25 $ (316) __________ (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. T h e f ol l owin g t able p r e s en t s t h e e f f e ct o f d e r i v a t i ve i n s t r u m en t s o n t h e c o n s olida t e d s t a t e m en t s o f ope r a t ion s f o r t h e three months ended September 30, 2017 and 2016 : In millions Derivatives Not Designated as Three Months Ended September 30, Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2017 2016 Insured credit default swaps Unrealized gains (losses) on insured derivatives $ 6 $ 20 Insured credit default swaps Realized gains (losses) and other settlements on insured derivatives (7) (4) Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange (3) (1) Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE 4 4 All other Net gains (losses) on financial instruments at fair value and foreign exchange - 2 Total $ - $ 21 T h e f ol l owin g t able p r e s en t s t h e e f f e ct o f d e r i v a t i ve i n s t r u m en t s o n t h e c o n s olida t e d s t a t e m en t s o f ope r a t ion s f o r t h e nine months ended September 30, 2017 and 2016 : In millions Derivatives Not Designated as Nine Months Ended September 30, Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2017 2016 Insured credit default swaps Unrealized gains (losses) on insured derivatives $ (10) $ - Insured credit default swaps Realized gains (losses) and other settlements on insured derivatives (41) (20) Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange (8) (86) Interest rate swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE - 8 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE (6) 3 All other Net gains (losses) on financial instruments at fair value and foreign exchange (19) (1) Total $ (84) $ (96) |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Note 9: Debt The Com pany has disclosed its debt in “Note 10: Debt” in the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The following debt discussion is an update and should be read in conjunction with the Company’s Annual Report on Form 10-K. Other Borrowing Arrangements MBIA Corp. Financing Facility In connection with the Zohar II Claim in January of 2017, MBIA Corp. entered into the Facility. The initial outsta nding principal amount of the Facility was $ 366 million, of which, $38 million of subordinated financing was provided by MBIA Inc. and eliminated in consolidation. As of September 30, 2017 , the consolidated outstanding amount of the Facility was $ 322 million a nd included in “ Variable interest entity notes ” which is presented in “ Liabilities of consolidated variable interest entities” on the Company’s consolidated balance sheets. Under the Facility, MBIA Inc. has agreed to provide an additional $ 50 million subor dinated financing to MZ Funding, which MZ Funding would then lend to MBIA Corp., if needed by MBIA Insurance Corporation for liquidity purposes. The Facility is secured by a first priority security interest in all of MBIA Corp.’s right, title and interest in the recovery of its claims from the assets of Zohar I and Zohar II which include, among other things, loans made to, and equity interests in, companies purportedly controlled by the Zohar Sponsor and any claims that the Company may have against the Zoha r Sponsor. MBIA Corp. was obligated to pay a commitment fee of $ 10 million for this facility. The Facility mature s on January 20, 2020 and bear s interest at 14% per annum. If funds received from MBIA Corp. under the Facility are insufficient to pay interes t on interest payment dates, MZ Funding may elect to pay interest in kind, which increases the outstanding principal amount. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Income Taxes | Note 10: Income Taxes The Company’s i n c o m e t a x e s a nd t he r e l a t e d e f f e c ti v e t a x r a t e s f o r t he three and nine months ended September 30, 2017 a nd 2016 a re a s fo l l o ws : Three Months Ended September 30, Nine Months Ended September 30, In millions 2017 2016 2017 2016 Income (loss) before income taxes $ (273) $ 55 $ (603) $ (101) Provision (benefit) for income taxes $ (6) $ 24 $ 965 $ (28) Effective tax rate 2.2% 43.6% -160.0% 27.7% F or the nine months ended September 30, 2017 , the Company’s effective tax rate applied to its loss before income taxes is less than the U.S. statutory tax rate primarily due to a full valuation allowance against its net deferred tax asset. F or the nine months ended September 30, 2016 , the Company’s effective tax rate applied to its loss before income taxes is less than the U.S. statutory effective tax rate primarily due to a foreign tax credit adjustment, partia lly offset by the fluctuation of the value of nontaxable warrants issued by the Company and tax exempt interest income. Deferred Tax Asset, Net of Valuation Allowance The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on tax asse ts and liabilities is recognized in inco me in the period that includes the enactment date. Valuation allowances are established to reduce deferred tax assets to the amount that more likely than not will be realized. The tax effects of temporary differences that give rise to deferred tax assets a nd liabilities as of September 30, 2017 and December 31, 2016 are presented in the following table: As of In millions September 30, 2017 December 31, 2016 Deferred tax liabilities: Unearned premium revenue $ 139 $ 143 Deferral of cancellation of indebtedness income 28 46 Deferred acquisition costs 34 42 Net gains on financial instruments at fair value and foreign exchange - 4 Net unrealized gains in accumulated other comprehensive income 10 - Partnership basis difference 29 36 Basis difference in foreign subsidiaries 1 64 Net deferred taxes on VIEs 13 - Other 28 27 Total gross deferred tax liabilities 282 362 Deferred tax assets: Compensation and employee benefits 15 19 Accrued interest 208 177 Loss and loss adjustment expense reserves 121 142 Net operating loss 996 929 Foreign tax credits 62 7 Other-than-temporary impairments 28 4 Net unrealized losses on insured derivatives 28 29 Net losses on financial instruments at fair value and foreign exchange 30 - Net unrealized losses in accumulated other comprehensive income - 6 Alternative minimum tax credit carryforward 30 26 Total gross deferred tax assets 1,518 1,339 Valuation allowance 1,236 7 Net deferred tax asset $ - $ 970 On June 26, 2017, S&P downgraded the financial strength rating of National , which led the Company to cease its efforts to actively pursue writing new financial guarantee business. In addition to National’s cessation of new business activity, there was an increase in loss and LAE due to changes in assumptions on certain Puerto Rico credits. As a result of the increase in loss and LAE, the Company has a three-year cumulative loss , which is considered significant negative evidence in the assessment of its abi lity to use its deferred tax assets. In addition, the Company considered all available positive and negative evidence as required by GAAP, to estimate if sufficient taxable income will be generated to use its deferred tax assets. After considering all posi tive and negative evidence, including the Company’s inability to objectively identify and forecast future sources of taxable income, the Company c oncluded in the second quarter of 2017 it d id not have sufficient positive evidence to support its abil ity to use its d eferred tax assets before they would expire. Accordingly, the Company has a full valuation allowance against its net deferred tax asset of $ 1.2 billion in the nine months ended September 30, 2017 . The Company will continue to analyze the valuation allowance on a quarterly basis. A cc o u n t i n g f o r U n c e r t a i n t y i n I n c o m e T ax e s The C o m p a ny ’ s po l i c y is t o r eco r d a n d d i s c l o s e an y c h an g e i n unrecognized tax benefits (“ U T B ”) an d r e l a t e d i n t e r es t a n d /or p e n a l t i e s t o i n c o m e t a x i n t h e co n s o l i d a t e d s t a t e m en t s o f o pe r a t i ons . The Company includes interest as a component of income tax expense. As of September 30, 2017 and December 31, 2016 , the Company had no UTB. Federal income tax returns through 2011 have been examined or surveyed. As of September 30, 2017 , the Company’s net operating loss (“NOL”) is approximately $ 2.8 billion . The NOL will expire between tax years 20 3 1 through 203 7 . As of September 30, 2017 , the Company has a foreign tax credit carryforward of $ 62 million, which will expire between tax years 2019 through 2027. As of September 30, 2017 , the Company has an alternative minimum tax credit carryforward of $ 30 million, which does not expire. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Business Segments | Note 11: 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 oper ating 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 segment is principally conducted 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 su bject 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 su bdivisions, as well as utilit ies , airports, health care institutions, higher educational facilities, student loan issuers, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substant ial 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 r evenue streams. Co rporate The Company’s corporate segment consists of general corporate activities, including providing general support services to MBIA Inc.’s subsidiaries as well as asset and capital management. General support services are provided by the Company’s service company, MBIA Services Corporation, 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 serv icing obligations issued by MBIA Inc. and its subsidiaries, MBIA Global Funding, LLC (“GFL”) and MBIA Investment Management Corp. (“IMC”) . 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. IMC, along with MBIA Inc., provided customized investment agreements, guaranteed by MBIA Corp., for bond proceeds and other public fu nds for such purposes as construction, loan origination, escrow and debt service or other reserve fund requirements. The Company has ceased issuing these MTNs and investment agreements and the outstanding liability balances and corresponding asset balances have declined over time as liabilities mature, terminate or are retired. 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 internatio nal 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 contra cts 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 Inc.; GFL; IMC; and LaCrosse Financial Products, LLC, a wholly-owned affiliate, in which MBIA Insurance Corp oration has written insurance policies guaranteeing the obligations under CDS . Certain policies cover payments potentially due under CDS, including termination payments that may become due in certain circumstances, including the occurrence of certain insolvency or payment defaults under the CDS or derivatives contracts by the insured counterparty or by the guarantor. MBIA Corp. insure s non -U.S. public finance and globa l 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, trade and export receivables, and leases for equipment, aircraft and real estate property. MBIA Corp. has also written policies guaranteein g 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. The Company is no longer insuring new credit derivative contrac ts except for transactions related to the restructuring or reduction of existing derivative exposure. MBIA Corp. has not written any meaningful amount of business since 2008. Segments Results The following tables provide the Company’s segment results for t he three months ended September 30, 2017 and 2016 : Three Months Ended September 30, 2017 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 70 $ 7 $ 10 $ - $ 87 Net change in fair value of insured derivatives - - (1) - (1) Net gains (losses) on financial instruments at fair value and foreign exchange 2 (15) 2 - (11) Net investment losses related to other-than-temporary impairments (71) - - - (71) Net gains (losses) on extinguishment of debt - 1 - - 1 Other net realized gains (losses) (1) (1) 1 - (1) Revenues of consolidated VIEs - - 29 - 29 Inter-segment revenues (2) 4 15 11 (30) - Total revenues 4 7 52 (30) 33 Losses and loss adjustment 141 - 64 - 205 Operating 8 14 7 - 29 Interest - 22 28 - 50 Expenses of consolidated VIEs - - 22 - 22 Inter-segment expenses (2) 16 - 14 (30) - Total expenses 165 36 135 (30) 306 Income (loss) before income taxes (161) (29) (83) - (273) Provision (benefit) for income taxes (55) (1) 1 49 (6) Net income (loss) $ (106) $ (28) $ (84) $ (49) $ (267) Identifiable assets $ 5,051 $ 1,205 $ 5,320 $ (2,032) (3) $ 9,544 ________________ (1) - Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. (2) - Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. (3) - Consists of intercompany reinsurance balances and repurchase agreements. Three Months Ended September 30, 2016 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 84 $ 6 $ 48 $ - $ 138 Net change in fair value of insured derivatives - - 16 - 16 Net gains (losses) on financial instruments at fair value and foreign exchange 31 (2) 9 - 38 Other net realized gains (losses) - (2) - - (2) Revenues of consolidated VIEs - - 13 - 13 Inter-segment revenues (2) 6 15 12 (33) - Total revenues 121 17 98 (33) 203 Losses and loss adjustment 28 - 22 - 50 Operating 9 16 17 - 42 Interest - 22 27 - 49 Expenses of consolidated VIEs - - 7 - 7 Inter-segment expenses (2) 18 2 13 (33) - Total expenses 55 40 86 (33) 148 Income (loss) before income taxes 66 (23) 12 - 55 Provision (benefit) for income taxes 22 (8) 7 3 24 Net income (loss) $ 44 $ (15) $ 5 $ (3) $ 31 Identifiable assets $ 5,343 $ 2,407 $ 7,020 $ (2,983) (3) $ 11,787 ________________ (1) - Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. (2) - Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. (3) - Consists of intercompany deferred income taxes, reinsurance balances and repurchase agreements. T h e f ol l owin g t able s p r o v id e t h e Company’s segment r e s u l t s f o r t h e nine months ended September 30, 2017 an d 2016 : Nine Months Ended September 30, 2017 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 200 $ 23 $ 54 $ - $ 277 Net change in fair value of insured derivatives - - (51) - (51) Net gains (losses) on financial instruments at fair value and foreign exchange 20 (54) (21) - (55) Net investment losses related to other-than-temporary impairments (84) - - - (84) Net gains (losses) on extinguishment of debt - 9 - - 9 Other net realized gains (losses) (1) (3) 40 - 36 Revenues of consolidated VIEs - - 50 - 50 Inter-segment revenues (2) 14 46 31 (91) - Total revenues 149 21 103 (91) 182 Losses and loss adjustment 310 - 159 - 469 Operating 34 46 25 - 105 Interest - 66 82 - 148 Expenses of consolidated VIEs - - 63 - 63 Inter-segment expenses (2) 47 2 42 (91) - Total expenses 391 114 371 (91) 785 Income (loss) before income taxes (242) (93) (268) - (603) Provision (benefit) for income taxes (86) 1,069 1,143 (1,161) 965 Net income (loss) $ (156) $ (1,162) $ (1,411) $ 1,161 $ (1,568) Identifiable assets $ 5,051 $ 1,205 $ 5,320 $ (2,032) (3) $ 9,544 ________________ (1) - Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. (2) - Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. (3) - Consists of intercompany reinsurance balances and repurchase agreements. Nine Months Ended September 30, 2016 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 250 $ 17 $ 97 $ - $ 364 Net change in fair value of insured derivatives - - (20) - (20) Net gains (losses) on financial instruments at fair value and foreign exchange 65 (105) 23 - (17) Net investment losses related to other-than-temporary impairments - (1) - - (1) Net gains (losses) on extinguishment of debt - 5 - - 5 Other net realized gains (losses) - (4) 1 - (3) Revenues of consolidated VIEs - - 25 - 25 Inter-segment revenues (2) 16 43 35 (94) - Total revenues 331 (45) 161 (94) 353 Losses and loss adjustment 46 - 103 - 149 Operating 29 52 46 - 127 Interest - 69 79 - 148 Expenses of consolidated VIEs - - 30 - 30 Inter-segment expenses (2) 52 3 38 (93) - Total expenses 127 124 296 (93) 454 Income (loss) before income taxes 204 (169) (135) (1) (101) Provision (benefit) for income taxes 69 (50) (48) 1 (28) Net income (loss) $ 135 $ (119) $ (87) $ (2) $ (73) Identifiable assets $ 5,343 $ 2,407 $ 7,020 $ (2,983) (3) $ 11,787 ________________ (1) - Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. (2) - Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. (3) - Consists of intercompany deferred income taxes, reinsurance balances and repurchase agreements. Pr e m iu ms o n f inan c ia l g u a r an t ee s a n d i n s u r e d de r i v a t i v e s r ep o r t e d wi t hi n t h e C o m p an y ’ s i n s u r an ce s e g m e n t s a re gen e r a t e d wi t hi n a n d o u t s id e t h e U . S. T h e f o l lowin g t abl e s u m m a r i z e s p r e m iu ms ea r ne d o n f i nan c ia l gu a r a n t e e s and in s u r e d d e r i v a t i v e s b y g eog r aph i c l o c a t i o n o f r i sk f o r t h e three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, In millions 2017 2016 2017 2016 Total premiums earned: United States $ 46 $ 59 $ 122 $ 176 United Kingdom - 6 1 20 Europe (excluding United Kingdom) - 1 1 4 Internationally diversified - 3 1 3 Other Americas 7 6 19 20 Asia - 1 - 2 Other - 1 2 3 Total $ 53 $ 77 $ 146 $ 228 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Earnings Per Share | Note 12: 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 and restricted stock units to certain employees and non-employee directors in accordance with the Company’s long-term incentive programs, which entitle the participants to receive nonf orfeitable 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 ea rnings 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 avera ge number of common shares outstanding during the period. D iluted earnings per share reflects the dilutive effect of all stock options , warrants and unvested restricted stock outstanding during the period that could potentially result in the issuance of co mmon stock. The dilution from stock options, warrants and unvested restricted stock are calculated by applying the two-class method and using the treasury stock method. The treasury stock method assumes the proceeds from the exercise of stock options and w arrants or 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. During periods of net loss, stock options, warrants and unvested re stricted stock are excluded from the calculation because they 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, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, In millions except per share amounts 2017 2016 2017 2016 Basic earnings per share: Net income (loss) $ (267) $ 31 $ (1,568) $ (73) Less: undistributed earnings allocated to participating securities - 1 - - Net income (loss) available to common shareholders (267) 30 (1,568) (73) Basic weighted average shares (1) 123.0 131.6 126.6 133.4 Net income (loss) per basic common share: $ (2.17) $ 0.23 $ (12.38) $ (0.55) Diluted earnings per share: Net income (loss) $ (267) $ 31 $ (1,568) $ (73) Less: undistributed earnings allocated to participating securities - 1 - - Net income (loss) available to common shareholders (267) 30 (1,568) (73) Basic weighted average shares (1) 123.0 131.6 126.6 133.4 Effect of common stock equivalents: Stock options - 0.4 - - Diluted weighted average shares 123.0 132.0 126.6 133.4 Net income (loss) per diluted common share: $ (2.17) $ 0.23 $ (12.38) $ (0.55) Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect 14.4 16.1 14.4 17.3 _________ (1) - Includes 0.3 million and 0.9 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the three months ended September 30, 2017 and 2016, respectively. Includes 0.3 million and 0.9 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the nine months ended September 30, 2017 and 2016, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Accumulated Other Comprehensive Income [Text Block] | Note 13: Accumulated Other Comprehensive Income T h e followin g tabl e present s th e changes in the components of AOCI fo r th e nine months ended September 30, 2017 : Unrealized Gains (Losses) on AFS Foreign Currency In millions Securities, Net Translation, Net Total Balance, December 31, 2016 $ 6 $ (134) $ (128) Other comprehensive income (loss) before reclassifications 17 125 142 (1) Amounts reclassified from AOCI 1 - 1 Total other comprehensive income (loss) 18 125 143 Balance, September 30, 2017 $ 24 $ (9) $ 15 ________________ (1) - Includes items included in the Company's loss calculation to adjust the carrying value of MBIA UK to its fair value less costs to sell for the year ended December 31, 2016. The sale was completed in January of 2017 and as such, these amounts included in AOCI were reversed and included in the Sale Transaction. T h e followin g tabl e present s th e details of the reclassifications from AOCI fo r th e three and nine months ended September 30, 2017 and 2016 : In millions Amounts Reclassified from AOCI Three Months Ended September 30, Nine Months Ended September 30, Details about AOCI Components 2017 2016 2017 2016 Affected Line Item on the Consolidated Statements of Operations Unrealized gains (losses) on AFS securities: Realized gains (losses) on sale of securities $ - $ 1 $ 6 $ (3) Net gains (losses) on financial instruments at fair value and foreign exchange OTTI (4) - (6) - Net investment losses related to OTTI Amortization on securities (1) - (2) (4) Net investment income (5) 1 (2) (7) Income (loss) before income taxes - 1 (1) (2) Provision (benefit) for income taxes Total reclassifications for the period $ (5) $ - $ (1) $ (5) Net income (loss) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Commitments and Contingencies | Note 14: Commitments and Contingencies The following commitments and contingencies provide an update of those discussed in “Note 2 1 : 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, 2016 , 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. ; Index No. 603751/2009 (N.Y. Sup. Ct., N.Y. County) E xpert discovery concluded in March of 2016 . Oral argument before the Appellate Division of the Supreme Court, First Judicial Department on the pa rties’ cross-appeals from the court’s March 31, 2017 decision and order on the parties’ summary judgment motions took place on October 24, 2017. Ambac Bond Insurance Coverage Cases, Coordinated Proceeding Case No. JCCP 4555 (Super. Ct. of Cal., County of San Francisco) Following a n appeal of the dismissal of the plaintiff’s anti-trust claim under California’s Cartwright Act , the California Court of Appeal reinstated those claims against the bond insurer defendants on February 18 , 201 6 . On April 8, 2016, Judge Mary E. Wiss recused and disqualified herself from further proceedings in the matter. On April 14, 2016, Judge Curtis E. A. Karnow was assigned to sit as the Coordination Trial Judge. On June 24, 2016, the defendants, including the MBIA parties, filed their answers to the complaints. A discov ery deadline is set for July 16 , 2018 and a trial scheduled for October 1, 2018. Lynn Tilton and Patriarch Partners XV, LLC v. MBIA Inc. and MBIA Insurance Corp. v. ; Index No.68880/2015 (N.Y. Sup. Ct., County of Westchester) On November 2, 2015, Lynn Tilto n and Patriarch Partners XV, LLC filed a complaint in New York State Supreme Court, Westchester County, against MBIA Inc. and MBIA Corp., alleging fraudulent inducement and related claims arising from purported promises made in connection with insurance po licies issued by MBIA Corp. on certain collateralized loan obligations managed by Ms. Tilton and affiliated Patriarch entities, and seeking damages. The plaintiffs filed an amended complaint on January 15, 2016. On December 27, 2016, Justice Alan D. Schein kman granted in part and denied in part MBIA’s motion to dismiss. On January 17, 2017, MBIA filed its answer. Discovery concluded in October 2017 and a Trial Readiness Conference was held on November 3, 2017 , at which the Court set a schedule for the briefing of summary judgment motions . National Public Finance Guarantee Corporation v . Padilla, Civ. No. 16-cv-2101 (D.P.R. June 15, 2016) (Besosa, J.) On June 15, 2016, National filed a complaint in federal court in Puerto Rico challenging the Puerto Rico Emergency Moratorium and Financial Rehabilitation Act (Law 21-2016 or the “Moratoriu m Act”) as unconstitutional under the United States Constitution. On June 22, 2016, National filed a motion for partial summary judgment on its claim that the Moratorium Act is preempted by the federal Bankruptcy Code. On July 7, 2016, the Puerto Rico defe ndants filed a motion to stay the case pursuant to PROMESA, which was granted by the Court in August of 2016 . The defendants filed their answer to the c omplaint on July 26, 2016. On November 15, 2016, the District Court denied National’s motion to lift the litigation stay granted pursuant to PROMESA and on January 30, 2017, the District Court denied National’s partial motion for a summary judgment without prejudice. On January 11, 2017, the U.S. Court of Appeals for the First Circuit affirmed the denial of a separate plaintiff’s motion to lift the PROMESA stay in a related action challenging the Moratorium Act. Accordingly, the case remained stayed through May 1, 2017, at which time the PROMESA stay expired. However, on May 3, 2017, Puerto Rico filed a Title III petition under PROMESA, thereby staying this dispute under Section 405(e) of PROMESA. Assured Guaranty Corp. et al. v. Commonwealth of Puerto Rico et al., Case No. 3:17-cv-01578 (D.P.R. May 3, 2017) (Swain, J.) On May 3, 2017, the Financial Oversight and Management Board filed a petition under Title III of PROMESA to adjust the debts of Puerto Rico. On the same day, National, together with Assured Guaranty Corp. and Assured Guaranty Municipal Corp., filed an adversary complaint in the case commenced b y the Title III filing, alleging that the Fiscal Plan and the Fiscal Plan Compliance Act, signed into law by the Governor of Puerto Rico on April 29, 2017, violate PROMESA and the United States Constitution. On October 6, 2017, National, together with the other plaintiffs in the filing, voluntarily dismissed without prejudice the above referenced adversary complaint. The Bank of New York Mellon v. Puerto Rico Sales Tax Financing Corporation, et al. , Case No. 17-133-LTS (D.P.R. May 16, 2017) (Swain, J.) On May 16, 2017, the Bank of New York Mellon, as trustee for COFINA , filed an adversary complaint seeking an interpleader and declaratory relief relating to conflicting directions from multiple stakeholders regarding alleged events of default. National has intervened in this matter. Given the complexity of the issues, the judge granted Bank of New York’s interpleader request ordering a freeze on disbursements to all bondholders and temporarily setting aside the funds until the dispute can be resolved between the parties. Under a scheduling order, discovery is underway and motions for summary judgment and opening briefs were due by November 6, 2017. Assured Guaranty Corp. et al. v. Commonwealth of Puerto Rico et al. , Case No. 17 BK 3567-LTS (D.P.R. June 3, 2017) (Swain, J.) On May 2 1 , 2017, the Oversight Board filed a petition under Title III of PROMESA to adjust the debts for the Puerto Rico Highways & Transportation Authority (“PRHTA”). On June 3, 2017, National, together with Assured Guaranty Corp. and Assured Guaranty Munic ipal Corp. and Financial Guaranty Insurance Company, filed an adversary complaint in the case commenced by the Title III filing, alleging that the Commonwealth and PRHTA are unlawfully diverting pledged special revenues from the payment of certain PRHTA bo nds to the Commonwealth’s General Fund. Motions to dismiss were filed on June 28, 2017, and the hearing will be on November 21, 2017. National Public Finance Guarantee Corp. et al. v. The Financial Oversight and Mgmt. Bd. et al. , Case No. 3:17-cv-01882 (D.P.R. June 26, 2017) (Besosa, J.) On June 26, 2017, National, together with Assured Guaranty Corp. and Assured Guaranty Municipal Corp., filed a complaint against the Oversight Board , its chairman and certain of its members seeking declaratory, injunctive and mandamus relief requirin g the Oversight Board to comply with certain of its obligations under PROMESA. On July 17, 2017, National, again joined by Assured Guaranty Corp. and Assured Guaranty Municipal Corp., filed an amended complaint against the Oversight Board, its chairman, an d certain of its members in their official and individual capacities, seeking declaratory relief under PROMESA and asserting a claim for nominal damages against the individual defendants for tortious interference with the PREPA Restructuring Support Agreem ent. By order of the Court date August 7, 2017, the litigation was stayed. National Public Finance Guarantee Corp. et al. v. The Financial Oversight and Mgmt. Bd. et al., Case No. 17 BK-04780 (D.P.R. August 7, 2017) On August 7, 2017, National, together with Assured Guaranty Corp. , Assured Guaranty Municipal Corp., f/k/a Financial Security Assurance Inc., National Public Finance Guarantee Corporation, the Ad Hoc Group of PREPA Bondholders, and Syncora Guarantee Inc. filed an adversary complaint under Title III of PROMESA against PREPA, Financial Oversight and Management B oard for Puerto Rico, Puerto Rico Fiscal Agency and Financial Advisory Authority, et al to enforce Plaintiffs’ contractual interest and constitutional right to revenues that PREPA pledged to bondholders but has thus far refused to turn over. Plaintiffs seek a declaration that Defendants have violated sections 922(d) and 928(a) of the Bankruptcy Code, and that efforts to compel Defendants to apply such revenues to pay for debt service on the Bonds are not stayed as provided under section 922(d) of the Bankruptcy Code. Plaintiffs also seek a declaration that, pursuant to sections 922(d) and 928 of the Bankruptcy Code as incorporated into PROMESA, PREPA is only authorized to use Revenues to pay for current operating expenses in the current time period, not for future expenses that may be deferred to or payable at a later date. In addition to declarat ory relief, Plaintiffs also seek injunctive relief prohibiting Defendants from taking or causing to be taken any action that would further violate sections 922(d) and 928(a) of the Bankruptcy Code and ordering Defendants to remit Revenues for the uninterru pted and timely payment of debt service on the Bonds in accordance with sections 922(d) and 928(a) of the Bankruptcy Code. On October 13, 2017, National, together with the other plaintiffs in the filing, voluntarily dismissed without prejudice the above re ferenced adversary complaint. For those aforementioned actions in which it is a defendant, t he Company is defending against th os e actions and expects ultimately to prevail on the merits. There is no assurance, however, that the Company will prevail in the se actions. Adverse rulings in these actions could have a material adverse effect on the Company’s ability to implement its strategy and on its business, results of operations, cash flows and financial condition. At this stage of the litigation, there has not been a determination as to the amount, if any, of damages. Accordingly, the Company is not able to estimate any amount of loss or range of loss. The Company similarly can provide no assurance that it will be successful in those actions in which it is a plaintiff. There are no other material lawsuits pending or, to the knowledge of the Company, threatened, to which the Company or any of its subsidiaries is a party . Lease Commitments The Company has a lease agreement for its headquarters in Purchase, New York as well as other immaterial leases for offices in New York, New York and San Francisco, California. 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. Thi s lease agreement included an incentive amount to fund certain leasehold improvements, renewal options, escalation clauses and a free rent period. Th is lease agreement has been classified as an operating lease, and operating rent expense has been recognize d on a straight-line basis since the second quarter of 2014 . As of September 30, 2017 , total future minimum lease payments remaining on this lease were $ 37 million . |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
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Subsequent Events | Note 15: Subsequent Events Re f e r t o “ Note 14: Commitments and Contingencies ” f o r in f o rm a t i o n a bou t l e ga l p r o c eed i ng s t ha t o cc u rr e d a f t e r September 30, 2017 . |
Significant Accounting Polici24
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
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Basis of Presentation | Basis of Presentation The accompanying unaudited conso lidated financial statements have been prepared in accordance with the instructions to Fo rm 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 re ad 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, 2016 . The accompanying consolidated financial statements have not been audited by an independent re gistered 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, n ecessary 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 estima tes 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. Actu al 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, 2017 may not be indicative of the results that may be expected for the year ending December 31, 2017 . The December 31, 2016 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures requi red by GAAP for annual periods. Certain amounts have been reclassified in the prior year ’ s financial statements to conform to the current presentation. This includes a change in the presentation of cash paid when withholding shares for tax-withholding purp oses in “ Purchases of treasury stock ” on the Company’s consolidated statement of cash flows as required under Accounting Standards Update ( “ASU”) 2016-09 , “Compensation-Stock Compensation (Topic 718) ” . The change in presentation effected “ Operating and employee related expenses paid ” , in operating cash flows and “ Purchases of treasury stock ” , in financing cash flows, on the Company’s consolidated statement of cash flows in prior periods. Such reclassifications did not materially impact total revenu es, expenses, assets, liabilities, shareholders’ equity , operating cash flows, investing cash flows, or financing cash flows for all periods presente d. |
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 Revenue from Contracts with Customers (Topic 606) (ASU 2014-09) and Deferral of the Effective Date (ASU 201 5 - 14 ) In May of 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 amends the accounting guidance for recognizing revenue for the transfer of goods or services from contracts with customers unless those contracts are within the scope of other accounting standards. ASU 2014-09 does not apply to financial guarantee insurance contracts within the scope o f Topic 944, “Financial Services — Insurance.” ASU 2014-09 applies to certain fees and reimbursements, and is not expected to materially impact revenue recogni tion of these fees and reimbursements. In August of 2015, the FASB issued ASU 2015-14, “Revenue f rom Contracts with Customers (Topic 606) — Deferral of the Effective Date. ” ASU 2015-14 defers the effective date of ASU 2014-09 to interim and annual periods beginning January 1, 2018, and is applied on a retrospective or modified retrospective basis. The adoption of ASU 2014-09 is not expected to materially impact the Company’s consolidated financial statements. Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) In Janua ry of 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 requires certain equity investments other than those accounted for under the equity method of accounting or result in consolidation of the investee to be measured at fair value with changes in fair value recognized in net income, and permits an entity to measure equity investments that do not have readily determinable fair values a t cost less any impairment plus or minus adjustments for certain changes in observable prices. An entity is also required to evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale (“AFS”) debt securities in c ombination with the entity’s other deferred tax assets. ASU 2016-01 requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability that results from a change in the instrument-specifi c credit risk for financial liabilities that the entity has elected to measure at fair value in accordance with the fair value option for financial instruments. ASU 2016-01 is effective for interim and annual periods beginning January 1, 2018, and is appli ed on a modified retrospective basis. Early adoption is not permitted with the exception of early application of the guidance that requires separate presentation in other comprehensive income of the change in the instrument-specific credit risk for financi al liabilities measured at fair value in accordance with the fair value option . Based on fair values as of September 30, 2017 of equity investments, the cumulative-effect adjustment, net of tax, related to net unrealized gains of such investments was ap proximately $ 1 million, which represents the amount that would have been reclassed from accumulated other comprehensive income (loss) (“AOCI”) to retained earnings had the Company adopted ASU 2016-01 on September 30, 2017 . As of September 30, 2017 , the Company had a full valuation allowance against its deferred tax asset. Refer to “Note 10: Income Taxes” for further information about this valuation allowance on the Company’s deferred tax asset. The Company is continuing to assess the impact of adopting ASU 2016-01 on its financial liabilities measured at fair value in accordance with the fair value option. The amount previously disclosed in its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017 may change materially based on its continued assessment, including as a result of the valuation allowance on its deferred tax assets recorded in the second quarter of 2017. The Company plans to adopt ASU 2016-01 in its entirety on January 1, 2018 and does not expect there to be a material impact to the Company’s consolidated financial statements. Leases (Topic 842) (ASU 2016-02) In February of 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” , that amends the accounting guidance for leasing transactions. ASU 2016-02 requir es a lessee to classify lease contracts as finance or operating leases, and to recognize assets and liabilities for the rights and obligations created by leasing transactions with lease terms more than twelve months. ASU 2016-02 substantially retains the c riteria for classifying leasing transactions as finance or operating leases. For finance leases, a lessee recognizes a right-of-use asset and a lease liability initially measured at the present value of the lease payments, and recognizes interest expense o n the lease liability separately from the amortization of the right-of-use asset. For operating leases, a lessee recognizes a right-of-use asset and a lease liability initially measured at the present value of the lease payments, and recognizes lease expen se on a straight-line basis. ASU 2016-02 is effective for interim and annual periods beginning January 1, 2019 with early adoption permitted, and is applied on a modified retrospective basis. The adoption of ASU 2016-02 is not expected to materially impact the Company’s consolidated financial statements. Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) In June of 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires financing receivables and other financial assets measured at amortized cost to be presented at the net amount expected to be collected by recording an allowance for credit losses with changes in the allowance recorded as credit loss expense or reversal of credit loss expense based on management’s current estimate of expected credit losses each period. ASU 2016-13 does not apply to credit losses on financial guarantee insuran ce contracts within the scope of Topic 944, “Financial Services-Insurance.” ASU 2016-13 also requires impairment relating to credit losses on AFS debt securities to be presented through an allowance for credit losses with changes in the allowance recorded in the period of the change as credit loss expense or reversal of credit loss expense. Any impairment amount not recorded through an allowance fo r credit losses on AFS debt securities is recorded through other comprehensive income. ASU 2016-13 is effective for interim and annual periods beginning January 1, 2020 with early adoption permitted beginning January 1, 2019. ASU 2016-13 is applied on a mo dified retrospective basis except that prospective application is applied to AFS debt securities with other-than-temporary impairments (“OTTI”) recognized before the date of adoption. The Company is evaluating the impact of adopting ASU 2016-13. |
Business Developments and Ris25
Business Developments and Risks and Uncertainties (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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Assets And Liabilities Held For Sale | As of In millions December 31, 2016 Assets Investments $ 466 Cash and cash equivalents 73 Premiums receivable 267 Other assets 19 Valuation allowance (270) Total assets held for sale $ 555 Liabilities Unearned premium revenue $ 304 Other liabilities 42 Total liabilities held for sale $ 346 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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Summary Of Nonconsolidated VIEs Assets And Liabilities | September 30, 2017 Carrying Value of Assets Carrying Value of Liabilities Loss and Loss Maximum Unearned Adjustment VIE Exposure Premiums Insurance Loss Premium Expense In millions Assets to Loss Investments (1) Receivable (2) Recoverable (3) Revenue (4) Reserves (5) Insurance: Global structured finance: Mortgage-backed residential $ 7,660 $ 3,955 $ 19 $ 24 $ 248 $ 22 $ 407 Mortgage-backed commercial 226 106 - - - - - Consumer asset-backed 4,939 1,107 - 5 2 4 11 Corporate asset-backed 2,481 1,744 - 13 - 15 - Total global structured finance 15,306 6,912 19 42 250 41 418 Global public finance 19,850 3,104 - 10 - 15 - Total insurance $ 35,156 $ 10,016 $ 19 $ 52 $ 250 $ 56 $ 418 __________ (1) - Reported within "Investments" on MBIA's consolidated balance sheets. (2) - Reported within "Premiums receivable" on MBIA's consolidated balance sheets. (3) - Reported within "Insurance loss recoverable" on MBIA's consolidated balance sheets. (4) - Reported within "Unearned premium revenue" on MBIA's consolidated balance sheets. (5) - Reported within "Loss and loss adjustment expense reserves" on MBIA's consolidated balance sheets. December 31, 2016 Carrying Value of Assets Carrying Value of Liabilities Loss and Loss Maximum Unearned Adjustment VIE Exposure Premiums Insurance Loss Premium Expense In millions Assets to Loss Investments (1) Receivable (2) Recoverable (3) Revenue (4) Reserves (5) Insurance: Global structured finance: Collateralized debt obligations $ 3,167 $ 1,914 $ 51 $ 2 $ - $ - $ 73 Mortgage-backed residential 9,146 4,796 20 28 304 27 325 Mortgage-backed commercial 257 145 - - - - - Consumer asset-backed 4,893 1,331 - 7 2 5 8 Corporate asset-backed 2,625 2,205 5 18 - 20 - Total global structured finance 20,088 10,391 76 55 306 52 406 Global public finance 44,306 12,051 - 11 - 18 - Total insurance $ 64,394 $ 22,442 $ 76 $ 66 $ 306 $ 70 $ 406 __________ (1) - Reported within "Investments" on MBIA's consolidated balance sheets. (2) - Reported within "Premiums receivable" on MBIA's consolidated balance sheets. Excludes $125 million that is included within “Assets held for sale” on the Company’s consolidated balance sheets. (3) - Reported within "Insurance loss recoverable" on MBIA's consolidated balance sheets. (4) - Reported within "Unearned premium revenue" on MBIA's consolidated balance sheets. Excludes $134 million that is included within “Liabilities held for sale” on the Company’s consolidated balance sheets. (5) - Reported within "Loss and loss adjustment expense reserves" on MBIA's consolidated balance sheets. |
Loss and Loss Adjustment Expe27
Loss and Loss Adjustment Expense Reserves (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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Present Value Of The Probability-Weighted Future Claim Payments And Recoveries | As of September 30, 2017 As of December 31, 2016 In millions Balance Sheet Line Item Balance Sheet Line Item Insurance loss recoverable Loan repurchase commitments Loss and LAE reserves Insurance loss recoverable Loan repurchase commitments Loss and LAE reserves U.S. Public Finance Insurance $ 356 $ - $ 348 $ 174 $ - $ 97 International and Structured Finance Insurance: Before VIE eliminations 1,559 406 694 551 404 650 VIE eliminations (1,304) - (224) (221) - (206) Total international and structured finance insurance 255 406 470 330 404 444 Total $ 611 $ 406 $ 818 $ 504 $ 404 $ 541 |
Schedule Of Loss And Loss Adjustment Expenses Reserves | In millions Changes in Loss and LAE Reserves for the Nine Months Ended September 30, 2017 Gross Loss Loss Gross Loss and LAE Payments Accretion Changes in and LAE Reserves as of for Cases of Claim Changes in Unearned Changes in Reserves as of December 31, with Liability Discount Changes in Premium LAE September 30, 2016 Reserves (1) Discount Rates Assumptions Revenue Reserves Other (2) 2017 $ 541 $ (1,057) $ 7 $ 8 $ 498 $ (32) $ 9 $ 844 $ 818 ____________ (1) - Includes payments made to satisfy the Zohar II Claim. (2) - Primarily changes in the amount to satisfy the Zohar II Claim. |
Schedule Of Insurance Loss Recoverable And Changes In Recoveries On Unpaid Losses | Changes in Insurance Loss Recoverable and Recoveries on Unpaid Losses for the Nine Months Ended September 30, 2017 Gross Gross Reserve Collections Reserve as of for Cases Accretion Changes in Changes in as of December 31, with of Discount Changes in LAE September 30, In millions 2016 Recoveries Recoveries Rates Assumptions Recoveries Other (1) 2017 Insurance loss recoverable $ 504 $ (56) $ 7 $ 7 $ 133 $ - $ 16 $ 611 Recoveries on unpaid losses (2) 79 - 1 1 (42) (5) - 34 Total $ 583 $ (56) $ 8 $ 8 $ 91 $ (5) $ 16 $ 645 ____________ (1) - Primarily changes in amount and timing of collections. (2) - As of September 30, 2017 and December 31, 2016, excludes Puerto Rico recoveries, and as of December 31, 2016, the Zohar II recoveries, which have been netted against reserves. |
Schedule Of Losses And Loss Adjustment Expenses | Three Months Ended September 30, Nine Months Ended September 30, In millions 2017 2016 2017 2016 U.S. Public Finance Insurance Segment $ 141 $ 28 $ 310 $ 46 International and Structured Finance Insurance Segment: Second-lien RMBS 54 44 58 78 First-lien RMBS 9 - 84 61 CDOs 1 (23) 9 (46) Other (1) - 1 8 10 Losses and loss adjustment expense $ 205 $ 50 $ 469 $ 149 ________________ (1) - Includes non-U.S. public finance and other issues. |
Schedule Of Financial Guarantees And Related Claim Liability | Surveillance Categories Caution Caution Caution List List List Classified $ in millions Low Medium High List Total Number of policies 93 5 1 284 383 Number of issues (1) 20 4 1 120 145 Remaining weighted average contract period (in years) 7.1 4.6 8.6 9.7 8.8 Gross insured contractual payments outstanding: (2) Principal $ 3,016 $ 13 $ 108 $ 6,218 $ 9,355 Interest 2,772 4 49 5,795 8,620 Total $ 5,788 $ 17 $ 157 $ 12,013 $ 17,975 Gross Claim Liability (3) $ - $ - $ - $ 934 $ 934 Less: Gross Potential Recoveries (4) - - - 934 934 Discount, net (5) - - - (215) (215) Net claim liability (recoverable) $ - $ - $ - $ 215 $ 215 Unearned premium revenue $ 10 $ - $ 4 $ 79 $ 93 __________ (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. Surveillance Categories Caution Caution Caution List List List Classified $ in millions Low Medium High List Total Number of policies 90 6 3 331 430 Number of issues (1) 17 4 2 126 149 Remaining weighted average contract period (in years) 7.5 3.4 7.2 7.0 7.1 Gross insured contractual payments outstanding: (2) Principal $ 2,917 $ 17 $ 320 $ 7,031 $ 10,285 Interest 2,795 4 107 2,777 5,683 Total $ 5,712 $ 21 $ 427 $ 9,808 $ 15,968 Gross Claim Liability (3) $ - $ - $ - $ 718 $ 718 Less: Gross Potential Recoveries (4) - - - 770 770 Discount, net (5) - - - (75) (75) Net claim liability (recoverable) $ - $ - $ - $ 23 $ 23 Unearned premium revenue $ 9 $ - $ 8 $ 68 $ 85 __________ (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 and Zohar II 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 liabilty for policies in a net recoverable position. (5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries. |
Fair Value of Financial Instr28
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis | Fair Value as of Range September 30, (Weighted In millions 2017 Valuation Techniques Unobservable Input Average) Assets of consolidated VIEs: Loans receivable at fair value $ 1,632 Market prices adjusted for financial Impact of financial guarantee 0% - 34% (6%) guarantees provided to VIE obligations Discounted cash flow Multiples (1) Loan repurchase commitments 406 Discounted cash flow Recovery rates (2) Breach rates (2) Liabilities of consolidated VIEs: Variable interest entity notes 430 Market prices of VIE assets adjusted for Impact of financial guarantee 0% - 65% (39%) financial guarantees provided Credit derivative liabilities, net: CMBS and multi-sector CDO 74 Direct Price Model Nonperformance risk 46% - 46% (46%) Other derivative liabilities 4 Discounted cash flow Cash flows $0 - $49 ($25) (3) ____________ (1) - Unobservable inputs are primarily based on comparable companies' EBITDA multiples. (2) - Recovery rates and breach rates include estimates about potential variations in the outcome of litigation with a counterparty. (3) - Midpoint of cash flows are used for the weighted average. Fair Value as of Range December 31, (Weighted In millions 2016 Valuation Techniques Unobservable Input Average) Assets of consolidated VIEs: Loans receivable at fair value $ 916 Market prices adjusted for financial Impact of financial guarantee 0% - 28% (3%) guarantees provided to VIE obligations Discounted cash flow Multiples (1) Loan repurchase commitments 404 Discounted cash flow Recovery rates (2) Breach rates (2) Liabilities of consolidated VIEs: Variable interest entity notes 476 Market prices of VIE assets Impact of financial guarantee 0% - 54% (24%) adjusted for financial guarantees provided Credit derivative liabilities, net: Recovery rates 25% - 40% (33%) CMBS 62 BET Model Nonperformance risk 10% - 32% (32%) Weighted average life (in years) 1.1 - 1.5 (1.3) CMBS spreads 25% - 35% (30%) Multi-sector CDO 2 Direct Price Model Nonperformance risk 58% - 58% (58%) Other derivative liabilities 20 Discounted cash flow Cash flows $0 - $83 ($42) (3) ____________ (1) - Unobservable inputs are primarily based on comparable companies' EBITDA multiples. (2) - Recovery rates and breach rates include estimates about potential variations in the outcome of litigation with a counterparty. (3) - Midpoint of cash flows are used for the weighted average. |
Company's Assets And Liabilities Measured At Fair Value On Recurring Basis | Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Counterparty for Identical Observable Unobservable and Cash Balance as of Assets Inputs Inputs Collateral September 30, In millions (Level 1) (Level 2) (Level 3) Netting 2017 Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 724 $ 93 $ - $ - $ 817 State and municipal bonds - 1,113 - - 1,113 Foreign governments - 8 - - 8 Corporate obligations - 1,511 - - 1,511 Mortgage-backed securities: Residential mortgage-backed agency - 699 - - 699 Residential mortgage-backed non-agency - 36 - - 36 Commercial mortgage-backed - 51 - - 51 Asset-backed securities: Collateralized debt obligations - 72 - - 72 Other asset-backed - 315 5 (1) - 320 Total fixed-maturity investments 724 3,898 5 - 4,627 Money market securities 269 - - - 269 Perpetual debt and equity securities 26 21 - - 47 Fixed-income fund - - - - 81 (2) Cash and cash equivalents 116 - - - 116 Derivative assets: Non-insured derivative assets: Interest rate derivatives - 3 - - 3 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Counterparty for Identical Observable Unobservable and Cash Balance as of Assets Inputs Inputs Collateral September 30, In millions (Level 1) (Level 2) (Level 3) Netting 2017 Assets of consolidated VIEs: Corporate obligations - 20 - - 20 Mortgage-backed securities: Residential mortgage-backed non-agency - 111 - - 111 Commercial mortgage-backed - 39 - - 39 Asset-backed securities: Collateralized debt obligations - 8 1 (1) - 9 Other asset-backed - 10 - - 10 Cash 20 - - - 20 Loans receivable at fair value: Residential loans receivable - - 759 - 759 Corporate loans receivable - - 873 - 873 Loan repurchase commitments - - 406 - 406 Other assets: Currency derivatives - - 13 (1) - 13 Other - - 17 (1) - 17 Total assets $ 1,155 $ 4,110 $ 2,074 $ - $ 7,420 Liabilities: Medium-term notes $ - $ - $ 127 (1) $ - $ 127 Derivative liabilities: Insured derivatives: Credit derivatives - 2 74 - 76 Non-insured derivatives: Interest rate derivatives - 204 - - 204 Other - - 4 - 4 Other liabilities: Warrants - 12 - - 12 Other payable - - 7 (1) - 7 Liabilities of consolidated VIEs: Variable interest entity notes - 710 430 - 1,140 Total liabilities $ - $ 928 $ 642 $ - $ 1,570 ____________ (1) - Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities. (2) - Investment that was measured at fair value by applying the net asset value per share practical expedient, and was required not to be classified in the fair value hierarchy. Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Counterparty for Identical Observable Unobservable and Cash Balance as of Assets Inputs Inputs Collateral December 31, In millions (Level 1) (Level 2) (Level 3) Netting 2016 Assets: Fixed-maturity investments: U.S. Treasury and government agency $ 825 $ 112 $ - $ - $ 937 State and municipal bonds - 1,440 - - 1,440 Foreign governments - 9 - - 9 Corporate obligations - 1,332 2 (1) - 1,334 Mortgage-backed securities: Residential mortgage-backed agency - 868 - - 868 Residential mortgage-backed non-agency - 45 - - 45 Commercial mortgage-backed - 43 - - 43 Asset-backed securities: Collateralized debt obligations - 7 15 (1) - 22 Other asset-backed - 257 44 (1) - 301 Total fixed-maturity investments 825 4,113 61 - 4,999 Money market securities 521 - - - 521 Perpetual debt and equity securities 26 9 - - 35 Fixed-income fund - - - - 75 (2) Cash and cash equivalents 163 - - - 163 Derivative assets: Non-insured derivative assets: Interest rate derivatives - 3 - - 3 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Counterparty for Identical Observable Unobservable and Cash Balance as of Assets Inputs Inputs Collateral December 31, In millions (Level 1) (Level 2) (Level 3) Netting 2016 Assets of consolidated VIEs: Corporate obligations - 27 - - 27 Mortgage-backed securities: Residential mortgage-backed non-agency - 149 - - 149 Commercial mortgage-backed - 52 - - 52 Asset-backed securities: Collateralized debt obligations - 7 1 (1) - 8 Other asset-backed - 18 1 (1) - 19 Cash 24 - - - 24 Loans receivable at fair value: Residential loans receivable - - 916 - 916 Corporate loans receivable - - 150 (1) - 150 Loan repurchase commitments - - 404 - 404 Derivative assets: Currency derivatives - - 19 (1) - 19 Total assets $ 1,559 $ 4,378 $ 1,552 $ - $ 7,564 Liabilities: Medium-term notes $ - $ - $ 101 (1) $ - $ 101 Derivative liabilities: Insured derivatives: Credit derivatives - 2 64 - 66 Non-insured derivatives: Interest rate derivatives - 213 - - 213 Other - - 20 - 20 Other liabilities: Warrants - 33 - - 33 Liabilities of consolidated VIEs: Variable interest entity notes - 875 476 - 1,351 Total liabilities $ - $ 1,123 $ 661 $ - $ 1,784 ____________ (1) - Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities. (2) - Investment that was measured at fair value by applying the net asset value per share practical expedient, and was required not to be classified in the fair value hierarchy. |
Fair Value Hierarchy Table Presents The Company's Assets And Liabilities Not Recorded At Fair Value On The Company's Consolidated Balance Sheet | Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Significant Fair Value Carry Value Active Markets for Other Observable Unobservable Balance as of Balance as of Identical Assets Inputs Inputs September 30, September 30, In millions (Level 1) (Level 2) (Level 3) 2017 2017 Assets: Other investments $ - $ 2 $ - $ 2 $ 2 Accrued investment income (1) - 28 - 28 28 Receivable for investments sold (1) - 49 - 49 49 Assets of consolidated VIEs: Investments held-to-maturity - - 897 897 890 Total assets $ - $ 79 $ 897 $ 976 $ 969 Liabilities: Long-term debt $ - $ 1,054 $ - $ 1,054 $ 2,093 Medium-term notes - - 497 497 771 Investment agreements - - 453 453 350 Payable for investments purchased (2) - 74 - 74 74 Interest payable for derivatives (2) - 15 - 15 15 Liabilities of consolidated VIEs: Variable interest entity notes - 353 897 1,250 1,212 Total liabilities $ - $ 1,496 $ 1,847 $ 3,343 $ 4,515 Financial Guarantees: Gross $ - $ - $ 2,116 $ 2,116 $ 1,015 Ceded - - 71 71 36 __________ (1) - Reported within "Other assets" on MBIA's consolidated balance sheets. (2) - Reported within "Other liabilities" on MBIA's consolidated balance sheets. Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Significant Fair Value Carry Value Active Markets for Other Observable Unobservable Balance as of Balance as of Identical Assets Inputs Inputs December 31, December 31, In millions (Level 1) (Level 2) (Level 3) 2016 2016 Assets: Other investments $ - $ 2 $ - $ 2 $ 3 Accrued investment income (1) - 40 - 40 40 Assets held for sale - 306 - 306 306 Assets of consolidated VIEs: Investments held-to-maturity - - 876 876 890 Total assets $ - $ 348 $ 876 $ 1,224 $ 1,239 Liabilities: Long-term debt $ - $ 1,030 $ - $ 1,030 $ 1,986 Medium-term notes - - 478 478 794 Investment agreements - - 508 508 399 Payable for investments purchased (2) - 32 - 32 32 Liabilities of consolidated VIEs: Variable interest entity notes - - 882 882 890 Total liabilities $ - $ 1,062 $ 1,868 $ 2,930 $ 4,101 Financial Guarantees: Gross $ - $ - $ 2,638 $ 2,638 $ 995 Ceded - - 18 18 43 __________ (1) - Reported within "Other assets" on MBIA's consolidated balance sheets. (2) - Reported within "Other liabilities" on MBIA's consolidated balance sheets. |
Changes In Level 3 Assets Measured At Fair Value On A Recurring Basis | Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2017 Change in Unrealized Gains (Losses) for the Period Included in Unrealized Earnings Gains / Unrealized Foreign for Assets (Losses) Gains / Exchange still held Balance, Realized Included (Losses) Recognized Transfers Transfers as of Beginning Gains / in Included in OCI or into out of Ending September 30, In millions of Period (Losses) Earnings in OCI Earnings Purchases Issuances Settlements Sales Level 3 (1) Level 3 (1) Balance 2017 Assets: Commercial mortgage-backed 7 - - - - - - - - - (7) - - Other asset-backed 5 - - - - - - - - - - 5 - Assets of consolidated VIEs: Commercial mortgage-backed 3 - - - - - - - (3) - - - - Collateralized debt obligations 1 - - - - - - - - - - 1 - Loans receivable- residential 815 - 2 - - - - (58) - - - 759 2 Loans receivable- corporate 875 - 4 - - - - (6) - - - 873 4 Loan repurchase commitments 407 - (1) - - - - - - - - 406 (1) Currency derivatives, net 9 - 3 - 1 - - - - - - 13 4 Other - - - - - 17 - - - - - 17 - Total assets $ 2,122 $ - $ 8 $ - $ 1 $ 17 $ - $ (64) $ (3) $ - $ (7) $ 2,074 $ 9 Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2016 Change in Unrealized Gains (Losses) for the Period Included in Unrealized Earnings for Gains / Unrealized Foreign Assets (Losses) Gains / Exchange still held Balance, Realized Included (Losses) Recognized Transfers Transfers as of Beginning Gains / in Included in OCI or into out of Ending September 30, In millions of Period (Losses) Earnings in OCI Earnings Purchases Issuances Settlements Sales Level 3 (1) Level 3 (1) Balance 2016 Assets: Foreign governments $ 7 $ - $ - $ - $ - $ 5 $ - $ (6) $ - $ - $ - $ 6 $ - Corporate obligations 2 - - - - - - (1) - - - 1 - Commercial mortgage-backed - - - - - - - - - 1 - 1 - Collateralized debt obligations 20 - - - - - - (3) - - - 17 - Other asset-backed 41 - - - - - - - - - (3) 38 - State and municipal bonds 124 - - - - - - - - 2 (122) 4 - Assets of consolidated VIEs: Corporate obligations 3 - - - - - - - - - - 3 - Residential mortgage- backed non-agency 1 - (1) - - - - - - - - - - Commercial mortgage-backed 2 - (1) - - - - - - 2 - 3 (1) Collateralized debt obligations 1 - - - - - - - - - - 1 - Other asset-backed 4 - - - - - - - - - (3) 1 - Loans receivable- residential 1,045 - 25 - - - - (75) - - - 995 25 Loans receivable- corporate 147 - - - - - - - - - - 147 - Loan repurchase commitments 401 - 3 - - - - - - - - 404 3 Currency derivatives, net 9 - - - 4 - - - - - - 13 4 Total assets $ 1,807 $ - $ 26 $ - $ 4 $ 5 $ - $ (85) $ - $ 5 $ (128) $ 1,634 $ 31 Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2017 Change in Unrealized Gains (Losses) for the Period Included in Unrealized Earnings for Gains / Unrealized Foreign Assets (Losses) Gains / Exchange still held Balance, Realized Included (Losses) Recognized Transfers Transfers as of Beginning Gains / in Included in OCI or into out of Ending September 30, In millions of Year (Losses) Earnings in OCI Earnings Purchases Issuances Settlements Sales Level 3 (1) Level 3 (1) Balance 2017 Assets: Corporate obligations 2 - - - - - - - - - (2) - - Commercial mortgage-backed - - - - - - - - - 7 (7) - - Collateralized debt obligations 15 - - - - - - (7) - - (8) - - Other asset-backed 44 - - 2 - - - (41) - - - 5 - State and municipal bonds - - - - - - - - - 1 (1) - - Assets of consolidated VIEs: Corporate obligations - - - - - - - (2) - 6 (4) - - Commercial mortgage-backed - - - - - - - - (3) 3 - - - Collateralized debt obligations 1 - - - - - - - - - - 1 - Other asset-backed 1 - - - - - - - - 1 (2) - - Loans receivable- residential 916 - 29 - - - - (186) - - - 759 29 Loans receivable- corporate 150 - 36 - - 719 - (32) - - - 873 36 Loan repurchase commitments 404 - 2 - - - - - - - - 406 2 Currency derivatives, net 19 - (2) - (4) - - - - - - 13 (6) Other - - - - - 17 - - - - - 17 - Total assets $ 1,552 $ - $ 65 $ 2 $ (4) $ 736 $ - $ (268) $ (3) $ 18 $ (24) $ 2,074 $ 61 Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2016 Change in Unrealized Gains (Losses) for the Period Included in Unrealized Earnings for Gains / Unrealized Foreign Assets (Losses) Gains / Exchange still held Balance, Realized Included (Losses) Recognized Transfers Transfers as of Beginning Gains / in Included in OCI or into out of Ending September 30, In millions of Year (Losses) Earnings in OCI Earnings Purchases Issuances Settlements Sales Level 3 (1) Level 3 (1) Balance 2016 Assets: Foreign governments $ 2 $ - $ - $ - $ (1) $ 10 $ - $ (5) $ - $ - $ - $ 6 $ - Corporate obligations 7 - - - - - - - - - (6) 1 - Commercial mortgage-backed - - - - - - - - - 1 - 1 - Collateralized debt obligations 29 - - 18 - - - (30) - - - 17 - Other asset-backed 38 (1) (1) 8 - - - (3) - - (3) 38 (1) State and municipal bonds 41 - - - - 122 - (39) - 2 (122) 4 - Assets of consolidated VIEs: Corporate obligations 11 - (4) - - - - (1) - 2 (5) 3 - Residential mortgage- backed non-agency - - (1) - - - - - - 1 - - - Commercial mortgage-backed - - (1) - - - - - - 4 - 3 (1) Collateralized debt obligations 1 - - - - - - - - - - 1 - Other asset-backed 6 - (6) - - - - - - 4 (3) 1 - Loans receivable- residential 1,185 - (5) - - - - (185) - - - 995 (5) Loans receivable- corporate 107 - 1 - - 146 - - (107) - - 147 1 Loan repurchase commitments 396 - 8 - - - - - - - - 404 8 Currency derivatives, net 11 - (2) - 4 - - - - - - 13 2 Total assets $ 1,834 $ (1) $ (11) $ 26 $ 3 $ 278 $ - $ (263) $ (107) $ 14 $ (139) $ 1,634 $ 4 |
Changes In Level 3 Liabilities Measured At Fair Value On A Recurring Basis | Change in Unrealized (Gains) Losses for the Period Included in Unrealized Earnings for (Gains) / Unrealized Foreign Liabilities Losses (Gains) / Exchange still held Balance, Realized Included Losses Recognized Transfers Transfers as of Beginning (Gains) / in Included in OCI or into out of Ending September 30, In millions of Period Losses Earnings in OCI Earnings Purchases Issuances Settlements Sales Level 3 (1) Level 3 (1) Balance 2017 Liabilities: Medium-term notes $ 123 $ - $ (1) $ - $ 5 $ - $ - $ - $ - $ - $ - $ 127 $ 4 Credit derivatives, net 80 7 (6) - - - - (7) - - - 74 (6) Other derivatives 4 - - - - - - - - - - 4 - Other payable - - 1 - - 6 - - - - - 7 1 Liabilities of consolidated VIEs: VIE notes 491 - 4 - - - - (14) (51) - - 430 4 Total liabilities $ 698 $ 7 $ (2) $ - $ 5 $ 6 $ - $ (21) $ (51) $ - $ - $ 642 $ 3 _______________ (1) - Transferred in and out at the end of the period. Change in Unrealized (Gains) Losses for the Period Included in Unrealized Earnings for (Gains) / Unrealized Foreign Liabilities Losses (Gains) / Exchange still held Balance, Realized Included Losses Recognized Transfers Transfers as of Beginning (Gains) / in Included in OCI or into out of Ending September 30, In millions of Period Losses Earnings in OCI Earnings Purchases Issuances Settlements Sales Level 3 (1) Level 3 (1) Balance 2016 Liabilities: Medium-term notes $ 161 $ - $ - $ - $ 2 $ - $ - $ (57) $ - $ - $ - $ 106 $ 2 Credit derivatives, net 104 5 (19) - - - - (5) - - - 85 12 Other derivatives, net 21 - (2) - - - - - - - - 19 (2) Liabilities of consolidated VIEs: VIE notes 523 - 2 - - - - (27) - - - 498 2 Total liabilities $ 809 $ 5 $ (19) $ - $ 2 $ - $ - $ (89) $ - $ - $ - $ 708 $ 14 _______________ (1) - Transferred in and out at the end of the period. Change in Unrealized (Gains) Losses for the Period Included in Unrealized Earnings for (Gains) / Unrealized Foreign Liabilities Losses (Gains) / Exchange still held Balance, Realized Included Losses Recognized Transfers Transfers as of Beginning (Gains) / in Included in OCI or into out of Ending September 30, In millions of Year Losses Earnings in OCI Earnings Purchases Issuances Settlements Sales Level 3 (1) Level 3 (1) Balance 2017 Liabilities: Medium-term notes $ 101 $ - $ 13 $ - $ 13 $ - $ - $ - $ - $ - $ - $ 127 $ 26 Credit derivatives, net 64 41 10 - - - - (41) - - - 74 12 Other derivatives, net 20 - 18 - - - - (34) - - - 4 18 Other payable - - 1 - - 6 - - - - - 7 1 Liabilities of consolidated VIEs: VIE notes 476 - 56 - - - - (51) (51) - - 430 56 Total liabilities $ 661 $ 41 $ 98 $ - $ 13 $ 6 $ - $ (126) $ (51) $ - $ - $ 642 $ 113 _______________ (1) - Transferred in and out at the end of the period. Change in Unrealized (Gains) Losses for the Period Included in Unrealized Earnings for (Gains) / Unrealized Foreign Liabilities Losses (Gains) / Exchange still held Balance, Realized Included Losses Recognized Transfers Transfers as of Beginning (Gains) / in Included in OCI or into out of Ending September 30, In millions of Year Losses Earnings in OCI Earnings Purchases Issuances Settlements Sales Level 3 (1) Level 3 (1) Balance 2016 Liabilities: Medium-term notes $ 161 $ - $ (4) $ - $ 6 $ - $ - $ (57) $ - $ - $ - $ 106 $ 2 Credit derivatives, net 85 21 - - - - - (21) - - - 85 9 Other derivatives, net 18 - 1 - - - - - - - - 19 (1) Liabilities of consolidated VIEs: VIE notes 1,267 - (41) - - 9 - (106) (631) - - 498 (41) Total liabilities $ 1,531 $ 21 $ (44) $ - $ 6 $ 9 $ - $ (184) $ (631) $ - $ - $ 708 $ (31) _______________ (1) - Transferred in and out at the end of the period. |
Gains And Losses (Realized And Unrealized) Included In Earnings Pertaining To Level 3 Assets And Liabilities | Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Change in Change in Unrealized Unrealized Gains (Losses) Gains (Losses) for the for the Period Included Period Included in Earnings in Earnings for Assets for Assets and and Total Gains Liabilities still Total Gains Liabilities still (Losses) held as of (Losses) held as of Included September 30, Included September 30, In millions in Earnings 2017 in Earnings 2016 Revenues: Unrealized gains (losses) on insured derivatives $ 6 $ 6 $ 19 $ (12) Realized gains (losses) and other settlements on insured derivatives (7) - (5) - Net gains (losses) on financial instruments at fair value and foreign exchange (4) (4) - - Other net realized gains (losses) (1) (1) - - Revenues of consolidated VIEs: Net gains (losses) on financial instruments at fair value and foreign exchange 5 5 28 29 Total $ (1) $ 6 $ 42 $ 17 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Change in Change in Unrealized Unrealized Gains (Losses) Gains (Losses) for the for the Period Included Period Included in Earnings in Earnings for Assets for Assets and and Total Gains Liabilities still Total Gains Liabilities still (Losses) held as of (Losses) held as of Included September 30, Included September 30, In millions in Earnings 2017 in Earnings 2016 Revenues: Unrealized gains (losses) on insured derivatives $ (10) $ (12) $ - $ (9) Realized gains (losses) and other settlements on insured derivatives (41) - (21) - Net gains (losses) on financial instruments at fair value and foreign exchange (44) (44) (5) (2) Net investment losses related to other-than-temporary impairments - - (1) - Other net realized gains (losses) (1) (1) - - Revenues of consolidated VIEs: Net gains (losses) on financial instruments at fair value and foreign exchange 5 5 35 46 Total $ (91) $ (52) $ 8 $ 35 |
Changes In Fair Value Included In The Company's Consolidated Statements Of Operations | Three Months Ended September 30, Nine Months Ended September 30, In millions 2017 2016 2017 2016 Investments carried at fair value (1) $ 2 $ 2 $ 8 $ 8 Fixed-maturity securities held at fair value-VIE (2) (2) (12) (16) (109) Loans receivable at fair value: Residential mortgage loans (2) (55) (50) (157) (190) Corporate loans (2) (2) - 4 - Loan repurchase commitments (2) (1) 3 3 8 Medium-term notes (1) (4) (2) (26) (2) Variable interest entity notes (2) 70 70 160 307 Other liabilities (3) (1) - (1) - ___________ (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. (3) - Reported within "Other net realized gains (losses)" on MBIA's consolidated statements of operations. |
Difference Between Aggregate Fair Value And The Aggregate Remaining Contractual Principal Balance Outstanding | As of September 30, 2017 As of December 31, 2016 Contractual Contractual Outstanding Fair Outstanding Fair In millions Principal Value Difference Principal Value Difference Loans receivable at fair value: Residential mortgage loans $ 766 $ 721 $ 44 $ 965 $ 894 $ 71 Residential mortgage loans (90 days or more past due) 157 38 119 143 22 121 Corporate loans (90 days or more past due) 873 873 - 150 150 - Total loans receivable at fair value 1,796 1,632 163 1,258 1,066 192 Variable interest entity notes 1,941 1,140 801 2,449 1,351 1,098 Medium-term notes 177 127 51 158 101 57 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Amortized Cost And Fair Value Of Available-For-Sale And Held-To-Maturity Investment Portfolios | September 30, 2017 Gross Gross Other-Than- Amortized Unrealized Unrealized Fair Temporary In millions Cost Gains Losses Value Impairments (1) AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 785 $ 32 $ (5) $ 812 $ - State and municipal bonds 1,054 65 (6) 1,113 - Foreign governments 8 - - 8 - Corporate obligations 1,489 28 (75) 1,442 (64) Mortgage-backed securities: Residential mortgage-backed agency 699 2 (8) 693 - Residential mortgage-backed non-agency 38 2 (4) 36 - Commercial mortgage-backed 49 - - 49 - Asset-backed securities: Collateralized debt obligations 70 - - 70 - Other asset-backed 311 1 - 312 1 Total fixed-maturity investments 4,503 130 (98) 4,535 (63) Money market securities 267 - - 267 - Perpetual debt and equity securities 4 1 - 5 - Total AFS investments $ 4,774 $ 131 $ (98) $ 4,807 $ (63) HTM Investments Assets of consolidated VIEs: Corporate obligations $ 890 $ 7 $ - $ 897 $ - Total HTM investments $ 890 $ 7 $ - $ 897 $ - _______________ (1) - Represents unrealized gains or losses on OTTI securities recognized in AOCI, which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities reported in AOCI. December 31, 2016 Gross Gross Other-Than- Amortized Unrealized Unrealized Fair Temporary In millions Cost Gains Losses Value Impairments (1) AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 909 $ 30 $ (10) $ 929 $ - State and municipal bonds 1,382 72 (15) 1,439 - Foreign governments 8 - - 8 - Corporate obligations 1,352 20 (102) 1,270 (73) Mortgage-backed securities: Residential mortgage-backed agency 871 3 (12) 862 - Residential mortgage-backed non-agency 50 1 (6) 45 (3) Commercial mortgage-backed 41 - - 41 - Asset-backed securities: Collateralized debt obligations 22 - - 22 - Other asset-backed 294 2 (3) 293 1 Total fixed-maturity investments 4,929 128 (148) 4,909 (75) Money market securities 517 - - 517 - Perpetual debt and equity securities 4 1 - 5 - Total AFS investments $ 5,450 $ 129 $ (148) $ 5,431 $ (75) HTM Investments Assets of consolidated VIEs: Corporate obligations $ 890 $ - $ (14) $ 876 $ - Total HTM investments $ 890 $ - $ (14) $ 876 $ - _______________ (1) - Represents unrealized gains or losses on OTTI securities recognized in AOCI, which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities reported in AOCI. |
Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments | AFS Securities HTM Securities Consolidated VIEs Amortized Amortized In millions Cost Fair Value Cost Fair Value Due in one year or less $ 508 $ 509 $ - $ - Due after one year through five years 874 883 - - Due after five years through ten years 684 635 - - Due after ten years 1,270 1,348 890 897 Mortgage-backed and asset-backed 1,167 1,160 - - Total fixed-maturity investments $ 4,503 $ 4,535 $ 890 $ 897 |
Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments | September 30, 2017 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized In millions Value Losses Value Losses Value Losses AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 279 $ (2) $ 87 $ (3) $ 366 $ (5) State and municipal bonds 162 (3) 53 (3) 215 (6) Foreign governments 4 - - - 4 - Corporate obligations 388 (4) 135 (71) 523 (75) Mortgage-backed securities: Residential mortgage-backed agency 344 (4) 140 (4) 484 (8) Residential mortgage-backed non-agency 9 - 15 (4) 24 (4) Commercial mortgage-backed 25 - 6 - 31 - Asset-backed securities: - Collateralized debt obligations 5 - - - 5 - Other asset-backed 149 - 2 - 151 - Total AFS investments $ 1,365 $ (13) $ 438 $ (85) $ 1,803 $ (98) December 31, 2016 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized In millions Value Losses Value Losses Value Losses AFS Investments Fixed-maturity investments: U.S. Treasury and government agency $ 432 $ (10) $ - $ - $ 432 $ (10) State and municipal bonds 339 (13) 18 (2) 357 (15) Foreign governments 5 - - - 5 - Corporate obligations 534 (29) 52 (73) 586 (102) Mortgage-backed securities: Residential mortgage-backed agency 436 (9) 122 (3) 558 (12) Residential mortgage-backed non-agency 1 - 29 (6) 30 (6) Commercial mortgage-backed 6 - 15 - 21 - Asset-backed securities: Collateralized debt obligations 7 - 15 - 22 - Other asset-backed 112 (1) 49 (2) 161 (3) Total AFS investments $ 1,872 $ (62) $ 300 $ (86) $ 2,172 $ (148) HTM Investments Assets of consolidated VIEs: Corporate obligations $ - $ - $ 876 $ (14) $ 876 $ (14) Total HTM investments $ - $ - $ 876 $ (14) $ 876 $ (14) |
Distribution Of Securities By Percentage Of Fair Value Below Book Value By More Than 5% | AFS Securities HTM Securities Percentage of Fair Value Number of Book Value Fair Value Number of Book Value Fair Value Below Book Value Securities (in millions) (in millions) Securities (in millions) (in millions) > 5% to 15% 21 $ 136 $ 126 - $ - $ - > 15% to 25% 2 15 12 - - - > 25% to 50% 1 1 - - - - > 50% 3 101 37 - - - Total 27 $ 253 $ 175 - $ - $ - |
Credit Losses Recognized In Earnings Related To OTTI Losses Recognized In Accumulated Other Comprehensive Income (Loss) | In millions Three Months Ended September 30, Nine Months Ended September 30, Credit Losses Recognized in Earnings Related to Other-Than-Temporary Impairments 2017 2016 2017 2016 Beginning balance $ 42 $ 26 $ 29 $ 26 Additions for credit loss impairments recognized in the current period on securities not previously impaired - - 11 - Additions for credit loss impairments recognized in the current period on securities previously impaired 2 - 4 - Reductions for credit loss impairments previously recognized on securities sold during the period (2) - (2) - Reductions for credit loss impairments previously recognized on securities impaired to fair value during the period (11) - (11) - Ending balance $ 31 $ 26 $ 31 $ 26 |
Securities Held In Unrealized Loss Position And Insured By Financial Guarantor and The Related Insurance Loss Reserve On Company Insured Investments | Unrealized Insurance Loss In millions Fair Value Loss Reserve (2) Mortgage-backed: MBIA (1) $ 15 $ (4) $ 16 Corporate obligations: MBIA (1) 13 (1) - Other: Other 2 - - Total $ 30 $ (5) $ 16 _______________ (1) - Includes investments insured by MBIA Corp. and National. (2) - Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured. |
Gross Realized Gains and Losses From Sales Of Available-For-Sale Securities | Three Months Ended September 30, Nine Months Ended September 30, In millions 2017 2016 2017 2016 Proceeds from sales $ 312 $ 848 $ 1,300 $ 1,785 Gross realized gains $ 5 $ 33 $ 24 $ 70 Gross realized losses $ (5) $ - $ (9) $ (18) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Credit Derivatives Sold | $ in millions As of September 30, 2017 Notional Value Credit Derivatives Sold Weighted Average Remaining Expected Maturity AAA AA A BBB Below Investment Grade Total Notional Fair Value Asset (Liability) Insured credit default swaps 3.0 Years $ - $ - $ 115 $ - $ 137 $ 252 $ (74) Insured swaps 15.6 Years - 125 1,903 847 20 2,895 (2) Total notional $ - $ 125 $ 2,018 $ 847 $ 157 $ 3,147 Total fair value $ - $ - $ (1) $ (1) $ (74) $ (76) $ in millions As of December 31, 2016 Notional Value Credit Derivatives Sold Weighted Average Remaining Expected Maturity AAA AA A BBB Below Investment Grade Total Notional Fair Value Asset (Liability) Insured credit default swaps 3.8 Years $ - $ - $ 115 $ - $ 473 $ 588 $ (64) Insured swaps 15.7 Years - 137 2,146 732 20 3,035 (2) Insured swaps - held for sale 14.3 Years - - - 420 - 420 - Total notional $ - $ 137 $ 2,261 $ 1,152 $ 493 $ 4,043 Total fair value $ - $ - $ (1) $ (1) $ (64) $ (66) |
Total Fair Value Of Company's Derivative Assets And Liabilities By Instrument And Balance Sheet Location, Before Counterparty Netting | In millions Derivative Assets (1) Derivative Liabilities (1) Notional Amount Fair Fair Derivative Instruments Outstanding Balance Sheet Location Value Balance Sheet Location Value Not designated as hedging instruments: Insured credit default swaps $ 252 Other assets $ - Derivative liabilities $ (74) Insured swaps 2,895 Other assets - Derivative liabilities (2) Interest rate swaps 749 Other assets 3 Derivative liabilities (204) Interest rate swaps-embedded 419 Medium-term notes 2 Medium-term notes (14) Currency swaps-VIE 63 Other assets-VIE 13 Derivative liabilities-VIE - All other 49 Other assets - Derivative liabilities (4) All other-embedded 1 Other investments - Other investments (1) Total non-designated derivatives $ 4,428 $ 18 $ (299) __________ (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) Notional Amount Fair Fair Derivative Instruments Outstanding Balance Sheet Location Value Balance Sheet Location Value Not designated as hedging instruments: Insured credit default swaps $ 588 Other assets $ - Derivative liabilities $ (64) Insured swaps 3,035 Other assets - Derivative liabilities (2) Insured swaps - held for sale 420 Assets held for sale - Liabilities held for sale - Interest rate swaps 1,062 Other assets 3 Derivative liabilities (213) Interest rate swaps-embedded 376 Medium-term notes 2 Medium-term notes (17) Currency swaps-VIE 71 Other assets-VIE 20 Derivative liabilities-VIE - All other 83 Other assets - Derivative liabilities (20) All other-VIE 35 Other assets-VIE - Derivative liabilities-VIE - All other-embedded 5 Other investments - Other investments - Total non-designated derivatives $ 5,675 $ 25 $ (316) __________ (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. |
Effect Of Derivative Instruments On Consolidated Statements Of Operations | In millions Derivatives Not Designated as Three Months Ended September 30, Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2017 2016 Insured credit default swaps Unrealized gains (losses) on insured derivatives $ 6 $ 20 Insured credit default swaps Realized gains (losses) and other settlements on insured derivatives (7) (4) Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange (3) (1) Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE 4 4 All other Net gains (losses) on financial instruments at fair value and foreign exchange - 2 Total $ - $ 21 In millions Derivatives Not Designated as Nine Months Ended September 30, Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative 2017 2016 Insured credit default swaps Unrealized gains (losses) on insured derivatives $ (10) $ - Insured credit default swaps Realized gains (losses) and other settlements on insured derivatives (41) (20) Interest rate swaps Net gains (losses) on financial instruments at fair value and foreign exchange (8) (86) Interest rate swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE - 8 Currency swaps-VIE Net gains (losses) on financial instruments at fair value and foreign exchange-VIE (6) 3 All other Net gains (losses) on financial instruments at fair value and foreign exchange (19) (1) Total $ (84) $ (96) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Income tax rate reconciliation from statutory to effective tax rate | Three Months Ended September 30, Nine Months Ended September 30, In millions 2017 2016 2017 2016 Income (loss) before income taxes $ (273) $ 55 $ (603) $ (101) Provision (benefit) for income taxes $ (6) $ 24 $ 965 $ (28) Effective tax rate 2.2% 43.6% -160.0% 27.7% |
Deferred tax assets and liabilities | As of In millions September 30, 2017 December 31, 2016 Deferred tax liabilities: Unearned premium revenue $ 139 $ 143 Deferral of cancellation of indebtedness income 28 46 Deferred acquisition costs 34 42 Net gains on financial instruments at fair value and foreign exchange - 4 Net unrealized gains in accumulated other comprehensive income 10 - Partnership basis difference 29 36 Basis difference in foreign subsidiaries 1 64 Net deferred taxes on VIEs 13 - Other 28 27 Total gross deferred tax liabilities 282 362 Deferred tax assets: Compensation and employee benefits 15 19 Accrued interest 208 177 Loss and loss adjustment expense reserves 121 142 Net operating loss 996 929 Foreign tax credits 62 7 Other-than-temporary impairments 28 4 Net unrealized losses on insured derivatives 28 29 Net losses on financial instruments at fair value and foreign exchange 30 - Net unrealized losses in accumulated other comprehensive income - 6 Alternative minimum tax credit carryforward 30 26 Total gross deferred tax assets 1,518 1,339 Valuation allowance 1,236 7 Net deferred tax asset $ - $ 970 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Summary of company's segment results | Three Months Ended September 30, 2017 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 70 $ 7 $ 10 $ - $ 87 Net change in fair value of insured derivatives - - (1) - (1) Net gains (losses) on financial instruments at fair value and foreign exchange 2 (15) 2 - (11) Net investment losses related to other-than-temporary impairments (71) - - - (71) Net gains (losses) on extinguishment of debt - 1 - - 1 Other net realized gains (losses) (1) (1) 1 - (1) Revenues of consolidated VIEs - - 29 - 29 Inter-segment revenues (2) 4 15 11 (30) - Total revenues 4 7 52 (30) 33 Losses and loss adjustment 141 - 64 - 205 Operating 8 14 7 - 29 Interest - 22 28 - 50 Expenses of consolidated VIEs - - 22 - 22 Inter-segment expenses (2) 16 - 14 (30) - Total expenses 165 36 135 (30) 306 Income (loss) before income taxes (161) (29) (83) - (273) Provision (benefit) for income taxes (55) (1) 1 49 (6) Net income (loss) $ (106) $ (28) $ (84) $ (49) $ (267) Identifiable assets $ 5,051 $ 1,205 $ 5,320 $ (2,032) (3) $ 9,544 ________________ (1) - Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. (2) - Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. (3) - Consists of intercompany reinsurance balances and repurchase agreements. Three Months Ended September 30, 2016 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 84 $ 6 $ 48 $ - $ 138 Net change in fair value of insured derivatives - - 16 - 16 Net gains (losses) on financial instruments at fair value and foreign exchange 31 (2) 9 - 38 Other net realized gains (losses) - (2) - - (2) Revenues of consolidated VIEs - - 13 - 13 Inter-segment revenues (2) 6 15 12 (33) - Total revenues 121 17 98 (33) 203 Losses and loss adjustment 28 - 22 - 50 Operating 9 16 17 - 42 Interest - 22 27 - 49 Expenses of consolidated VIEs - - 7 - 7 Inter-segment expenses (2) 18 2 13 (33) - Total expenses 55 40 86 (33) 148 Income (loss) before income taxes 66 (23) 12 - 55 Provision (benefit) for income taxes 22 (8) 7 3 24 Net income (loss) $ 44 $ (15) $ 5 $ (3) $ 31 Identifiable assets $ 5,343 $ 2,407 $ 7,020 $ (2,983) (3) $ 11,787 ________________ (1) - Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. (2) - Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. (3) - Consists of intercompany deferred income taxes, reinsurance balances and repurchase agreements. Nine Months Ended September 30, 2017 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 200 $ 23 $ 54 $ - $ 277 Net change in fair value of insured derivatives - - (51) - (51) Net gains (losses) on financial instruments at fair value and foreign exchange 20 (54) (21) - (55) Net investment losses related to other-than-temporary impairments (84) - - - (84) Net gains (losses) on extinguishment of debt - 9 - - 9 Other net realized gains (losses) (1) (3) 40 - 36 Revenues of consolidated VIEs - - 50 - 50 Inter-segment revenues (2) 14 46 31 (91) - Total revenues 149 21 103 (91) 182 Losses and loss adjustment 310 - 159 - 469 Operating 34 46 25 - 105 Interest - 66 82 - 148 Expenses of consolidated VIEs - - 63 - 63 Inter-segment expenses (2) 47 2 42 (91) - Total expenses 391 114 371 (91) 785 Income (loss) before income taxes (242) (93) (268) - (603) Provision (benefit) for income taxes (86) 1,069 1,143 (1,161) 965 Net income (loss) $ (156) $ (1,162) $ (1,411) $ 1,161 $ (1,568) Identifiable assets $ 5,051 $ 1,205 $ 5,320 $ (2,032) (3) $ 9,544 ________________ (1) - Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. (2) - Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. (3) - Consists of intercompany reinsurance balances and repurchase agreements. Nine Months Ended September 30, 2016 U.S. International Public and Structured Finance Finance In millions Insurance Corporate Insurance Eliminations Consolidated Revenues (1) $ 250 $ 17 $ 97 $ - $ 364 Net change in fair value of insured derivatives - - (20) - (20) Net gains (losses) on financial instruments at fair value and foreign exchange 65 (105) 23 - (17) Net investment losses related to other-than-temporary impairments - (1) - - (1) Net gains (losses) on extinguishment of debt - 5 - - 5 Other net realized gains (losses) - (4) 1 - (3) Revenues of consolidated VIEs - - 25 - 25 Inter-segment revenues (2) 16 43 35 (94) - Total revenues 331 (45) 161 (94) 353 Losses and loss adjustment 46 - 103 - 149 Operating 29 52 46 - 127 Interest - 69 79 - 148 Expenses of consolidated VIEs - - 30 - 30 Inter-segment expenses (2) 52 3 38 (93) - Total expenses 127 124 296 (93) 454 Income (loss) before income taxes 204 (169) (135) (1) (101) Provision (benefit) for income taxes 69 (50) (48) 1 (28) Net income (loss) $ 135 $ (119) $ (87) $ (2) $ (73) Identifiable assets $ 5,343 $ 2,407 $ 7,020 $ (2,983) (3) $ 11,787 ________________ (1) - Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. (2) - Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. (3) - Consists of intercompany deferred income taxes, reinsurance balances and repurchase agreements. |
Summary Of premiums earned on financial guarantees and insured derivatives by geographic location of risk | Three Months Ended September 30, Nine Months Ended September 30, In millions 2017 2016 2017 2016 Total premiums earned: United States $ 46 $ 59 $ 122 $ 176 United Kingdom - 6 1 20 Europe (excluding United Kingdom) - 1 1 4 Internationally diversified - 3 1 3 Other Americas 7 6 19 20 Asia - 1 - 2 Other - 1 2 3 Total $ 53 $ 77 $ 146 $ 228 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share | Three Months Ended September 30, Nine Months Ended September 30, In millions except per share amounts 2017 2016 2017 2016 Basic earnings per share: Net income (loss) $ (267) $ 31 $ (1,568) $ (73) Less: undistributed earnings allocated to participating securities - 1 - - Net income (loss) available to common shareholders (267) 30 (1,568) (73) Basic weighted average shares (1) 123.0 131.6 126.6 133.4 Net income (loss) per basic common share: $ (2.17) $ 0.23 $ (12.38) $ (0.55) Diluted earnings per share: Net income (loss) $ (267) $ 31 $ (1,568) $ (73) Less: undistributed earnings allocated to participating securities - 1 - - Net income (loss) available to common shareholders (267) 30 (1,568) (73) Basic weighted average shares (1) 123.0 131.6 126.6 133.4 Effect of common stock equivalents: Stock options - 0.4 - - Diluted weighted average shares 123.0 132.0 126.6 133.4 Net income (loss) per diluted common share: $ (2.17) $ 0.23 $ (12.38) $ (0.55) Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect 14.4 16.1 14.4 17.3 _________ (1) - Includes 0.3 million and 0.9 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the three months ended September 30, 2017 and 2016, respectively. Includes 0.3 million and 0.9 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the nine months ended September 30, 2017 and 2016, respectively. |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Changes In The Components Of AOCI | Unrealized Gains (Losses) on AFS Foreign Currency In millions Securities, Net Translation, Net Total Balance, December 31, 2016 $ 6 $ (134) $ (128) Other comprehensive income (loss) before reclassifications 17 125 142 (1) Amounts reclassified from AOCI 1 - 1 Total other comprehensive income (loss) 18 125 143 Balance, September 30, 2017 $ 24 $ (9) $ 15 ________________ (1) - Includes items included in the Company's loss calculation to adjust the carrying value of MBIA UK to its fair value less costs to sell for the year ended December 31, 2016. The sale was completed in January of 2017 and as such, these amounts included in AOCI were reversed and included in the Sale Transaction. |
Reclassifications From AOCI | In millions Amounts Reclassified from AOCI Three Months Ended September 30, Nine Months Ended September 30, Details about AOCI Components 2017 2016 2017 2016 Affected Line Item on the Consolidated Statements of Operations Unrealized gains (losses) on AFS securities: Realized gains (losses) on sale of securities $ - $ 1 $ 6 $ (3) Net gains (losses) on financial instruments at fair value and foreign exchange OTTI (4) - (6) - Net investment losses related to OTTI Amortization on securities (1) - (2) (4) Net investment income (5) 1 (2) (7) Income (loss) before income taxes - 1 (1) (2) Provision (benefit) for income taxes Total reclassifications for the period $ (5) $ - $ (1) $ (5) Net income (loss) |
Business Developments And Ris35
Business Developments And Risks And Uncertainties (Narrative) (Detail) $ in Millions | Oct. 10, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)segments | Sep. 30, 2016USD ($) | Nov. 01, 2017USD ($) |
Business Acquisition [Line Items] | ||||||
Number of operating segments | segments | 3 | |||||
Income (loss) before income taxes | $ (273) | $ 55 | $ (603) | $ (101) | ||
Proceeds from Senior Lenders | 325 | |||||
Valuation allowance taken in current period | 1,200 | |||||
Zohar II [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Claims payments | 770 | |||||
Puerto Rico [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Claims payments | 242 | |||||
Mbia Inc [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from subordinated financing | 38 | |||||
Mbia Corp [Member] | Zohar II [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Claims payments | 60 | |||||
National [Member] | SubsequentEvent [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Dividends from subsidiaries | $ 118 | |||||
Assured Guaranty Corp [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payment for sale of subsidiary | 23 | |||||
Assured Guaranty Corp [Member] | Zohar II [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Outstanding bonds | $ 347 | 347 | ||||
MBIA UK [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Gain recorded on adjustment of carrying value to fair value less costs to sell | $ 5 | |||||
Income (loss) before income taxes | $ 9 | $ 32 | ||||
Sale effective date | Jan. 10, 2017 | |||||
MBIA Inc Senior Notes [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Long-term debt, interest rate | 5.70% | 5.70% | ||||
Long-term debt, maturity year | 2,034 | |||||
MBIA Inc Senior Notes [Member] | National [Member] | SubsequentEvent [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Senior notes at par value owned by National | $ 130 | |||||
MBIA Corp Surplus Notes [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Long-term debt, interest rate | 14.00% | 14.00% |
Business Developments And Ris36
Business Developments And Risks And Uncertainties (Assets And Liabilities Held For Sale) (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Assets And Liabilities Held For Sale By Major Category [Line Items] | |
Assets held for sale | $ 555 |
Liabilities held for sale | 346 |
Investments At Fair Value [Member] | |
Assets And Liabilities Held For Sale By Major Category [Line Items] | |
Assets held for sale | 466 |
Cash And Cash Equivalents [Member] | |
Assets And Liabilities Held For Sale By Major Category [Line Items] | |
Assets held for sale | 73 |
Premiums Receivable [Member] | |
Assets And Liabilities Held For Sale By Major Category [Line Items] | |
Assets held for sale | 267 |
Other Assets [Member] | |
Assets And Liabilities Held For Sale By Major Category [Line Items] | |
Assets held for sale | 19 |
Valuation Allowance [Member] | |
Assets And Liabilities Held For Sale By Major Category [Line Items] | |
Assets held for sale | (270) |
Unearned Premium Revenue [Member] | |
Assets And Liabilities Held For Sale By Major Category [Line Items] | |
Liabilities held for sale | 304 |
Other Liabilities [Member] | |
Assets And Liabilities Held For Sale By Major Category [Line Items] | |
Liabilities held for sale | $ 42 |
Recent Accounting Pronounceme37
Recent Accounting Pronouncements (Narrative) (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Accounting Policies [Abstract] | |
Estimated reclassification of cumulative effect accumulated other comprehensive income to retained earnings for equity investments. | $ 1 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Detail) $ in Billions | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016 | Dec. 31, 2016USD ($) | |
Variable Interest Entity [Line Items] | |||
Carrying amounts of assets | $ 3.2 | $ 2.7 | |
Carrying amounts of liabilities | $ 2.4 | $ 2.2 | |
Number of variable interest entities consolidated | 2 | 1 |
Variable Interest Entities (Sum
Variable Interest Entities (Summary Of Nonconsolidated VIEs Assets And Liabilities) (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |||
Insurance loss recoverable | $ 611 | $ 504 | |
Loss and loss adjustment expense reserves | 818 | 541 | |
Global Structured Finance [Member] | |||
Variable Interest Entity [Line Items] | |||
VIE Assets | 15,306 | 20,088 | |
Maximum Exposure to Loss | 6,912 | 10,391 | |
Investments | [1] | 19 | 76 |
Premiums receivable | [2] | 42 | 55 |
Insurance loss recoverable | [3] | 250 | 306 |
Unearned premium revenue | [4] | 41 | 52 |
Loss and loss adjustment expense reserves | [5] | 418 | 406 |
Global Structured Finance [Member] | Collateralized Debt Obligations [Member] | |||
Variable Interest Entity [Line Items] | |||
VIE Assets | 0 | 3,167 | |
Maximum Exposure to Loss | 0 | 1,914 | |
Investments | [1] | 0 | 51 |
Premiums receivable | [2] | 0 | 2 |
Unearned premium revenue | [4] | 0 | 0 |
Loss and loss adjustment expense reserves | [5] | 0 | 73 |
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | |||
Variable Interest Entity [Line Items] | |||
VIE Assets | 7,660 | 9,146 | |
Maximum Exposure to Loss | 3,955 | 4,796 | |
Investments | [1] | 19 | 20 |
Premiums receivable | [2] | 24 | 28 |
Insurance loss recoverable | [3] | 248 | 304 |
Unearned premium revenue | [4] | 22 | 27 |
Loss and loss adjustment expense reserves | [5] | 407 | 325 |
Global Structured Finance [Member] | Commercial Mortgage Backed Securities [Member] | |||
Variable Interest Entity [Line Items] | |||
VIE Assets | 226 | 257 | |
Maximum Exposure to Loss | 106 | 145 | |
Premiums receivable | [2] | 0 | 0 |
Unearned premium revenue | [4] | 0 | 0 |
Global Structured Finance [Member] | Consumer Asset Backed [Member] | |||
Variable Interest Entity [Line Items] | |||
VIE Assets | 4,939 | 4,893 | |
Maximum Exposure to Loss | 1,107 | 1,331 | |
Premiums receivable | [2] | 5 | 7 |
Insurance loss recoverable | [3] | 2 | 2 |
Unearned premium revenue | [4] | 4 | 5 |
Loss and loss adjustment expense reserves | [5] | 11 | 8 |
Global Structured Finance [Member] | Corporate Asset Backed [Member] | |||
Variable Interest Entity [Line Items] | |||
VIE Assets | 2,481 | 2,625 | |
Maximum Exposure to Loss | 1,744 | 2,205 | |
Investments | [1] | 0 | 5 |
Premiums receivable | [2] | 13 | 18 |
Insurance loss recoverable | [3] | 0 | 0 |
Unearned premium revenue | [4] | 15 | 20 |
Global Public Finance [Member] | |||
Variable Interest Entity [Line Items] | |||
VIE Assets | 19,850 | 44,306 | |
Maximum Exposure to Loss | 3,104 | 12,051 | |
Premiums receivable | [2] | 10 | 11 |
Unearned premium revenue | [4] | 15 | 18 |
Total Insurance [Member] | |||
Variable Interest Entity [Line Items] | |||
VIE Assets | 35,156 | 64,394 | |
Maximum Exposure to Loss | 10,016 | 22,442 | |
Investments | [1] | 19 | 76 |
Premiums receivable | [2] | 52 | 66 |
Insurance loss recoverable | [3] | 250 | 306 |
Unearned premium revenue | [4] | 56 | 70 |
Loss and loss adjustment expense reserves | [5] | $ 418 | $ 406 |
[1] | Reported within Investments on MBIA's consolidated balance sheets. | ||
[2] | Reported within Premiums receivable on MBIA's consolidated balance sheets. | ||
[3] | Reported within Insurance loss recoverable on MBIA's consolidated balance sheets. | ||
[4] | Reported within Unearned premium revenue on MBIA's consolidated balance sheets. | ||
[5] | Reported within Loss and loss adjustment expense reserves on MBIA's consolidated balance sheets. |
Loss And Loss Adjustment Expe40
Loss And Loss Adjustment Expense Reserves (Loss And LAE Activity) (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Loss And Loss Adjustment Expense Reserves [Line Items] | |||||
Policyholder (Benefits) And Claims Incurred Net | $ 205 | $ 50 | $ 469 | $ 149 | |
Weighted average risk-free rate used to discount claim liability | 2.17% | ||||
Insurance loss recoverable | $ 611 | 611 | $ 504 | ||
Loss and loss adjustment expense reserves | 818 | 818 | 541 | ||
Reinsurance Receivables Case Basis | 15 | 15 | 6 | ||
Second Lien Residential Mortgage Backed Securities And Reserves [Member] | |||||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||||
Policyholder (Benefits) And Claims Incurred Net | 54 | 44 | 58 | 78 | |
Lae [Member] | |||||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||||
Policyholder (Benefits) And Claims Incurred Net | 6 | $ 6 | 33 | $ 34 | |
Loss and loss adjustment expense reserves | 69 | 69 | $ 60 | ||
Ineligible Mortgage Loans [Member] | Second Lien Residential Mortgage Backed Securities And Reserves [Member] | |||||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||||
Contract Claims On Ineligible Mortgage Loans Inception To Date Incurred Loss On Transactions | $ 435 | $ 435 |
Loss And Loss Adjustment Expe41
Loss And Loss Adjustment Expense Reserves (Schedule OF Losses And Loss Adjustment Expenses Reserves and Recoveries) (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Loss And Loss Adjustment Expense Reserves [Line Items] | ||
Loan repurchase commitments | $ 406 | $ 404 |
Insurance Loss Recoverable | 611 | 504 |
Loss and loss adjustment expense reserves | 818 | 541 |
Loss And Lae Reserves [Member] | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||
Loss and loss adjustment expense reserves | 818 | 541 |
Insurance Loss Recoverable [Member] | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||
Insurance Loss Recoverable | 611 | 504 |
U S Public Finance Insurance [Member] | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||
Insurance Loss Recoverable | 356 | 174 |
Loss and loss adjustment expense reserves | 348 | 97 |
International And Structured Finance Insurance [Member] | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||
Loan repurchase commitments | 406 | 404 |
Insurance Loss Recoverable | 255 | 330 |
Loss and loss adjustment expense reserves | 470 | 444 |
International And Structured Finance Insurance [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||
Insurance Loss Recoverable | (1,304) | (221) |
Loss and loss adjustment expense reserves | (224) | (206) |
International And Structured Finance Insurance [Member] | Non Variable Interest Entity [Member] | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||
Loan repurchase commitments | 406 | 404 |
Insurance Loss Recoverable | 1,559 | 551 |
Loss and loss adjustment expense reserves | $ 694 | $ 650 |
Loss And Loss Adjustment Expe42
Loss And Loss Adjustment Expense Reserves (Schedule Of Loss And Loss Adjustment Expenses Reserves) (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Gross loss and LAE reserve, beginning balance | $ 541 | ||
Changes in unearned premium revenue | 149 | $ 197 | |
Gross loss and LAE reserve, ending balance | 818 | ||
Loss And Lae Reserves [Member] | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | |||
Gross loss and LAE reserve, beginning balance | 541 | ||
Loss payments for cases with reserves | [1] | (1,057) | |
Accretion of claim liability discount | 7 | ||
Changes in discount rates | 8 | ||
Changes in assumptions | 498 | ||
Changes in unearned premium revenue | (32) | ||
Changes in LAE | 9 | ||
Other | [2] | 844 | |
Gross loss and LAE reserve, ending balance | $ 818 | ||
[1] | Includes payments made to satisfy the Zohar II Claim. | ||
[2] | Primarily changes in the amount to satisfy the Zohar II Claim. |
Loss And Loss Adjustment Expe43
Loss And Loss Adjustment Expense Reserves (Schedule Of Insurance Loss Recoverable And Changes In Recoveries On Unpaid Losses) (Detail) $ in Millions | 9 Months Ended | |
Sep. 30, 2017USD ($) | ||
Loss And Loss Adjustment Expense Recoveries [Line Items] | ||
Gross Reserve beginning balance, Insurance loss recoverable | $ 504 | |
Gross Reserve beginning balance, Total | 583 | |
Collections for Cases with Recoveries | (56) | |
Accretion of Recoveries | 8 | |
Changes in Discount Rates | 8 | |
Changes in Assumptions | 91 | |
Changes in LAE Recoveries | (5) | |
Other | 16 | [1] |
Gross Reserve ending balance, Insurance loss recoverable | 611 | |
Gross Reserve ending balance, Total | 645 | |
Insurance Loss Recoverable [Member] | ||
Loss And Loss Adjustment Expense Recoveries [Line Items] | ||
Gross Reserve beginning balance, Insurance loss recoverable | 504 | |
Collections for Cases with Recoveries | (56) | |
Accretion of Recoveries | 7 | |
Changes in Discount Rates | 7 | |
Changes in Assumptions | 133 | |
Changes in LAE Recoveries | 0 | |
Other | 16 | [2] |
Gross Reserve ending balance, Insurance loss recoverable | 611 | |
Recoveries On Unpaid Losses [Member] | ||
Loss And Loss Adjustment Expense Recoveries [Line Items] | ||
Gross Reserve beginning balance,Recoveries on unpaid losses | 79 | [2] |
Collections for Cases with Recoveries | 0 | |
Accretion of Recoveries | 1 | |
Changes in Discount Rates | 1 | [2] |
Changes in Assumptions | (42) | [2] |
Changes in LAE Recoveries | (5) | [2] |
Other | 0 | |
Gross Reserve ending balance, Recoveries on unpaid losses | $ 34 | [2] |
[1] | Primarily changes in amount and timing of collections. | |
[2] | As of September 30, 2017 and December 31, 2016, excludes Puerto Rico recoveries, and as of December 31, 2016, the Zohar II recoveries, which have been netted against reserves. |
Loss And Loss Adjustment Expe44
Loss And Loss Adjustment Expense Reserves (Schedule Of Losses And Loss Adjustment Expenses) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Policyholder Benefits And Claims Incurred Net | $ 205 | $ 50 | $ 469 | $ 149 |
U S Public Finance Insurance [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Policyholder Benefits And Claims Incurred Net | 141 | 28 | 310 | 46 |
Second-Lien RMBS [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Policyholder Benefits And Claims Incurred Net | 54 | 44 | 58 | 78 |
First-Lien RMBS [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Policyholder Benefits And Claims Incurred Net | 9 | 0 | 84 | 61 |
CDOs [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Policyholder Benefits And Claims Incurred Net | 1 | (23) | 9 | (46) |
Other [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Policyholder Benefits And Claims Incurred Net | $ 0 | $ 1 | $ 8 | $ 10 |
Loss And Loss Adjustment Expe45
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, 2017USD ($)issuepolicy | Dec. 31, 2016USD ($)issuepolicy | |||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Number of policies | policy | 383 | 430 | ||
Number of issues | issue | [1] | 145 | 149 | |
Remaining weighted average contract period (in years) | 8 years 9 months 18 days | 7 years 1 month 6 days | ||
Principal | [2] | $ 9,355 | $ 10,285 | |
Interest | [2] | 8,620 | 5,683 | |
Total | [2] | 17,975 | 15,968 | |
Gross claim liability | [3] | 934 | 718 | |
Less: Gross potential recoveries | 934 | [4] | 770 | |
Discount, net | [5] | (215) | (75) | |
Net claim liability (recoverable) | 215 | 23 | ||
Unearned premium revenue | $ 93 | $ 85 | ||
Caution List Low [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Number of policies | policy | 93 | 90 | ||
Number of issues | issue | [1] | 20 | 17 | |
Remaining weighted average contract period (in years) | 7 years 1 month 6 days | 7 years 6 months | ||
Principal | [2] | $ 3,016 | $ 2,917 | |
Interest | [2] | 2,772 | 2,795 | |
Total | [2] | 5,788 | 5,712 | |
Gross claim liability | [3] | 0 | ||
Less: Gross potential recoveries | 0 | |||
Discount, net | [5] | 0 | ||
Net claim liability (recoverable) | 0 | |||
Unearned premium revenue | $ 10 | $ 9 | ||
Caution List Medium [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Number of policies | policy | 5 | 6 | ||
Number of issues | issue | [1] | 4 | 4 | |
Remaining weighted average contract period (in years) | 4 years 7 months 6 days | 3 years 4 months 24 days | ||
Principal | [2] | $ 13 | $ 17 | |
Interest | [2] | 4 | 4 | |
Total | [2] | 17 | 21 | |
Gross claim liability | [3] | 0 | ||
Less: Gross potential recoveries | 0 | |||
Discount, net | [5] | 0 | ||
Net claim liability (recoverable) | 0 | |||
Unearned premium revenue | $ 0 | $ 0 | ||
Caution List High [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Number of policies | policy | 1 | 3 | ||
Number of issues | issue | [1] | 1 | 2 | |
Remaining weighted average contract period (in years) | 8 years 7 months 6 days | 7 years 2 months 12 days | ||
Principal | [2] | $ 108 | $ 320 | |
Interest | [2] | 49 | 107 | |
Total | [2] | 157 | 427 | |
Gross claim liability | [3] | 0 | ||
Less: Gross potential recoveries | 0 | |||
Discount, net | [5] | 0 | ||
Net claim liability (recoverable) | 0 | |||
Unearned premium revenue | $ 4 | $ 8 | ||
Classified List [Member] | ||||
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Number of policies | policy | 284 | 331 | ||
Number of issues | issue | [1] | 120 | 126 | |
Remaining weighted average contract period (in years) | 9 years 8 months 12 days | 7 years | ||
Principal | [2] | $ 6,218 | $ 7,031 | |
Interest | [2] | 5,795 | 2,777 | |
Total | [2] | 12,013 | 9,808 | |
Gross claim liability | [3] | 934 | 718 | |
Less: Gross potential recoveries | 934 | [4] | 770 | |
Discount, net | [5] | (215) | (75) | |
Net claim liability (recoverable) | 215 | 23 | ||
Unearned premium revenue | $ 79 | $ 68 | ||
[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. |
Fair Value Of Financial Instr46
Fair Value Of Financial Instruments (Narrative) (Detail) | Sep. 30, 2017 | Dec. 31, 2016 |
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 | 28.00% | 21.00% |
Percentage of level 3 liabilities at fair value in total liabilities measured at fair value | 41.00% | 37.00% |
Fair Value Of Financial Instr47
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) $ in Millions | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($)Y |
Other Derivative Liabilities [Member] | Discounted cash flow [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value, liabilities | $ 4 | $ 20 |
Nonperformance Risk [Member] | Commercial Mortgage-Backed and Multi Sector C D O [Member] | Minimum [Member] | Direct Price Model [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 46.00% | |
Nonperformance Risk [Member] | Commercial Mortgage-Backed and Multi Sector C D O [Member] | Maximum [Member] | Direct Price Model [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 46.00% | |
Nonperformance Risk [Member] | Commercial Mortgage-Backed and Multi Sector C D O [Member] | Weighted Average [Member] | Direct Price Model [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 46.00% | |
Discounted Cash Flows [Member] | Other Derivative Liabilities [Member] | Minimum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range dollars | $ 0 | 0 |
Discounted Cash Flows [Member] | Other Derivative Liabilities [Member] | Maximum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range dollars | 49 | 83 |
Discounted Cash Flows [Member] | Other Derivative Liabilities [Member] | Weighted Average [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range dollars | 25 | 42 |
Credit Derivatives [Member] | Commercial Mortgage Backed Securities [Member] | BET Model [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value, liabilities | 62 | |
Credit Derivatives [Member] | Multi Sector C D O [Member] | Direct Price Model [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value, liabilities | $ 2 | |
Credit Derivatives [Member] | Commercial Mortgage-Backed and Multi Sector C D O [Member] | Direct Price Model [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value, liabilities | 74 | |
Credit Derivatives [Member] | Recovery Rates [Member] | Commercial Mortgage Backed Securities [Member] | Minimum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 25.00% | |
Credit Derivatives [Member] | Recovery Rates [Member] | Commercial Mortgage Backed Securities [Member] | Maximum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 40.00% | |
Credit Derivatives [Member] | Recovery Rates [Member] | Commercial Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 33.00% | |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Commercial Mortgage Backed Securities [Member] | Minimum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 10.00% | |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Commercial Mortgage Backed Securities [Member] | Maximum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 32.00% | |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Commercial Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 32.00% | |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Multi Sector C D O [Member] | Minimum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 58.00% | |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Multi Sector C D O [Member] | Maximum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 58.00% | |
Credit Derivatives [Member] | Nonperformance Risk [Member] | Multi Sector C D O [Member] | Weighted Average [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 58.00% | |
Credit Derivatives [Member] | Weighted Average Life [Member] | Commercial Mortgage Backed Securities [Member] | Minimum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Weighted Average (in years) | Y | 1.1 | |
Credit Derivatives [Member] | Weighted Average Life [Member] | Commercial Mortgage Backed Securities [Member] | Maximum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Weighted Average (in years) | Y | 1.5 | |
Credit Derivatives [Member] | Weighted Average Life [Member] | Commercial Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Weighted Average (in years) | Y | 1.3 | |
Credit Derivatives [Member] | Commercial Mortgage Backed Securities Spreads [Member] | Commercial Mortgage Backed Securities [Member] | Minimum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 25.00% | |
Credit Derivatives [Member] | Commercial Mortgage Backed Securities Spreads [Member] | Commercial Mortgage Backed Securities [Member] | Maximum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 35.00% | |
Credit Derivatives [Member] | Commercial Mortgage Backed Securities Spreads [Member] | Commercial Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 30.00% | |
Loans Receivable [Member] | Variable Interest Entity Primary Beneficiary [Member] | Quoted market prices adjusted for financial guarantees provided to VIE obligations [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair Value, assets | $ 1,632 | $ 916 |
Loans Receivable [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [Member] | Minimum [Member] | Quoted market prices adjusted for financial guarantees provided to VIE obligations [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 0.00% | 0.00% |
Loans Receivable [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [Member] | Maximum [Member] | Quoted market prices adjusted for financial guarantees provided to VIE obligations [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 34.00% | 28.00% |
Loans Receivable [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [Member] | Weighted Average [Member] | Quoted market prices adjusted for financial guarantees provided to VIE obligations [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 6.00% | 3.00% |
Loan Repurchase Commitments [Member] | Variable Interest Entity Primary Beneficiary [Member] | Discounted cash flow [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair Value, assets | $ 406 | $ 404 |
Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member] | Quoted market prices of VIE assets adjusted for financial guarantees provided [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value, liabilities | $ 430 | $ 476 |
Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [Member] | Minimum [Member] | Quoted market prices of VIE assets adjusted for financial guarantees provided [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 0.00% | 0.00% |
Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [Member] | Maximum [Member] | Quoted market prices of VIE assets adjusted for financial guarantees provided [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 65.00% | 54.00% |
Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member] | Impact Of Financial Guarantee [Member] | Weighted Average [Member] | Quoted market prices of VIE assets adjusted for financial guarantees provided [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Range percentage | 39.00% | 24.00% |
Fair Value Of Financial Instr48
Fair Value Of Financial Instruments (Company's Assets And Liabilities Measured At Fair Value On Recurring Basis) (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | ||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | $ 7,420 | $ 7,564 | ||
Fair value financial liabilities measured on recurring basis | 1,570 | 1,784 | ||
Money Market Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 269 | 521 | ||
Medium Term Notes [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 127 | 101 | ||
Perpetual Debt And Equity Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 47 | 35 | ||
Cash And Cash Equivalents [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 116 | 163 | ||
Fixed Income Funds [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | [1] | 81 | 75 | |
Other [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 17 | |||
Other Payable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 7 | |||
Fixed Maturities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 4,627 | 4,999 | ||
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 | 817 | 937 | ||
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 | 1,113 | 1,440 | ||
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 | 8 | 9 | ||
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 | 1,511 | 1,334 | ||
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 | 699 | 868 | ||
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 | 36 | 45 | ||
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 | 51 | 43 | ||
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 | 72 | 22 | ||
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 | 320 | 301 | ||
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 | 3 | 3 | ||
Derivative Assets [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 | 13 | 19 | ||
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 | 406 | 404 | ||
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 | 20 | 27 | ||
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 | 111 | 149 | ||
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 | 39 | 52 | ||
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 | 9 | 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 | 10 | 19 | ||
Assets Of Consolidated V I Es [Member] | Loans Receivable 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 | 759 | 916 | ||
Assets Of Consolidated V I Es [Member] | Loans Receivable At Fair Value [Member] | Variable Interest Entity Primary Beneficiary [Member] | Corporate Loans Receivable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 873 | 150 | ||
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 | 20 | 24 | ||
Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 76 | 66 | ||
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 | 204 | 213 | ||
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 | 4 | 20 | ||
Other Liabilities [Member] | Warrant [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 12 | 33 | ||
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 | 1,140 | 1,351 | ||
Fair Value Inputs Level 1 [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 1,155 | 1,559 | ||
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 | 269 | 521 | ||
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 | 26 | 26 | ||
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 | 116 | 163 | ||
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 724 | 825 | ||
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 | 724 | 825 | ||
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 | |||
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 | 20 | 24 | ||
Fair Value Inputs Level 2 [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 4,110 | 4,378 | ||
Fair value financial liabilities measured on recurring basis | 928 | 1,123 | ||
Fair Value Inputs Level 2 [Member] | Perpetual Debt And Equity Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 21 | 9 | ||
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 3,898 | 4,113 | ||
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 | 93 | 112 | ||
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 | 1,113 | 1,440 | ||
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 | 8 | 9 | ||
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 | 1,511 | 1,332 | ||
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 | 699 | 868 | ||
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 | 36 | 45 | ||
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 | 51 | 43 | ||
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 | 72 | 7 | ||
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 | 315 | 257 | ||
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 | 3 | 3 | ||
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 | 20 | 27 | ||
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 | 111 | 149 | ||
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 | 39 | 52 | ||
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 | 7 | ||
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 | 10 | 18 | ||
Fair Value Inputs Level 2 [Member] | Derivative Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 2 | 2 | ||
Fair Value Inputs Level 2 [Member] | Derivative Liabilities [Member] | Interest Rate Derivatives [Member] | Non Insured Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 204 | 213 | ||
Fair Value Inputs Level 2 [Member] | Other Liabilities [Member] | Warrant [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | 12 | 33 | ||
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 | 710 | 875 | ||
Fair Value Inputs Level 3 [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 2,074 | 1,552 | ||
Fair value financial liabilities measured on recurring basis | 642 | 661 | ||
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 | [2] | 127 | 101 | |
Fair Value Inputs Level 3 [Member] | Other [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | [2] | 17 | ||
Fair Value Inputs Level 3 [Member] | Other Payable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial liabilities measured on recurring basis | [2] | 7 | ||
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 5 | 61 | ||
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 | [2] | 2 | ||
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 | [2] | 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 | [2] | 15 | ||
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 | [2] | 5 | 44 | |
Fair Value Inputs Level 3 [Member] | Derivative Assets [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 | 13 | 19 | [2] | |
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 | 406 | 404 | ||
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 | [2] | 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 | [2] | 1 | 1 | |
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 | [2] | 1 | ||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Loans Receivable 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 | 759 | 916 | ||
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Loans Receivable At Fair Value [Member] | Variable Interest Entity Primary Beneficiary [Member] | Corporate Loans Receivable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value financial assets measured on recurring basis | 873 | 150 | [2] | |
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 | 74 | 64 | ||
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 | 4 | 20 | ||
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 | $ 430 | $ 476 | ||
[1] | Investment that was measured at fair value by applying the net asset value per share practical expedient, and was required not to be classified in the fair value hierarchy. | |||
[2] | Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities. |
Fair Value Of Financial Instr49
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, 2017 | Dec. 31, 2016 | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||||
Assets held for sale | $ 555 | |||
Variable Interest Entity Primary Beneficiary [Member] | ||||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||||
Investments held-to-maturity, fair value | $ 897 | 876 | ||
Carrying Reported Amount Fair Value Disclosure [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | ||||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||||
Other investments | 2 | 3 | ||
Accrued investment income | [1] | 28 | 40 | |
Receivable for investments sold | [1] | 49 | ||
Assets held for sale | 306 | |||
Total assets | 969 | 1,239 | ||
Investment agreements | 350 | 399 | ||
Medium-term notes | 771 | 794 | ||
Long-term debt | 2,093 | 1,986 | ||
Payable for investments purchased | [2] | 74 | 32 | |
Interest payable for derivatives | [2] | 15 | ||
Total liabilities | 4,515 | 4,101 | ||
Gross | 1,015 | 995 | ||
Ceded | 36 | 43 | ||
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 Off Balance Sheet Risks Disclosure Information [Line Items] | ||||
Investments held-to-maturity, fair value | 890 | 890 | ||
Variable interest entity notes | 1,212 | 890 | ||
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | ||||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||||
Other investments | 2 | [1] | 2 | |
Accrued investment income | [1] | 28 | 40 | |
Receivable for investments sold | 49 | |||
Assets held for sale | 306 | |||
Total assets | 976 | 1,224 | ||
Investment agreements | 453 | 508 | ||
Medium-term notes | 497 | 478 | ||
Long-term debt | 1,054 | 1,030 | ||
Payable for investments purchased | [2] | 74 | 32 | |
Interest payable for derivatives | [2] | 15 | ||
Total liabilities | 3,343 | 2,930 | ||
Gross | 2,116 | 2,638 | ||
Ceded | 71 | 18 | ||
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||||
Investments held-to-maturity, fair value | 897 | 876 | ||
Variable interest entity notes | 1,250 | 882 | ||
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 2 [Member] | ||||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||||
Other investments | 2 | [1] | 2 | |
Accrued investment income | [1] | 28 | 40 | |
Receivable for investments sold | 49 | |||
Assets held for sale | 306 | |||
Total assets | 79 | 348 | ||
Long-term debt | 1,054 | 1,030 | ||
Payable for investments purchased | [2] | 74 | 32 | |
Interest payable for derivatives | [2] | 15 | ||
Total liabilities | 1,496 | 1,062 | ||
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 Off Balance Sheet Risks Disclosure Information [Line Items] | ||||
Variable interest entity notes | 353 | |||
Fair Value [Member] | Value Disclosed At Fair Value Not Recorded At Fair Value [Member] | Fair Value Inputs Level 3 [Member] | ||||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||||
Total assets | 897 | 876 | ||
Investment agreements | 453 | 508 | ||
Medium-term notes | 497 | 478 | ||
Total liabilities | 1,847 | 1,868 | ||
Gross | 2,116 | 2,638 | ||
Ceded | 71 | 18 | ||
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 Off Balance Sheet Risks Disclosure Information [Line Items] | ||||
Investments held-to-maturity, fair value | 897 | 876 | ||
Variable interest entity notes | $ 897 | $ 882 | ||
[1] | Reported within "Other assets" on MBIA's consolidated balance sheets. | |||
[2] | Reported within "Other liabilities" on MBIA's consolidated balance sheets. |
Fair Value Of Financial Instr50
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | $ 2,122 | $ 1,807 | $ 1,552 | $ 1,834 |
Realized gains/(losses), assets | (1) | |||
Unrealized gains/(losses) included in earnings, assets | 8 | 26 | 65 | (11) |
Unrealized gains/(losses) included in OCI, assets | 2 | 26 | ||
Foreign exchange recognized in OCI or earnings, assets | 1 | 4 | (4) | 3 |
Purchases, assets | 17 | 5 | 736 | 278 |
Settlements, assets | (64) | (85) | (268) | (263) |
Sales, assets | (3) | (3) | (107) | |
Transfers into level 3, assets | 5 | 18 | 14 | |
Transfers out of level 3, assets | (7) | (128) | (24) | (139) |
Ending balance, fair value assets | 2,074 | 1,634 | 2,074 | 1,634 |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 9 | 31 | 61 | 4 |
Beginning balance, fair value liabilities | 698 | 809 | 661 | 1,531 |
Realized gains/(losses), liabilities | 7 | 5 | 41 | 21 |
Unrealized gains/(losses included in earnings, liabilities | (2) | (19) | 98 | (44) |
Foreign exchange recognized in OCI or earnings, liabilities | 5 | 2 | 13 | 6 |
Purchases, liabilities | 6 | 6 | 9 | |
Settlements, liabilities | (21) | (89) | (126) | (184) |
Sales, liabilities | (51) | (51) | (631) | |
Ending balance, fair value liabilities | 642 | 708 | 642 | 708 |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 3 | 14 | 113 | (31) |
Residential Prime Financing Receivable [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 815 | 1,045 | 916 | 1,185 |
Unrealized gains/(losses) included in earnings, assets | 2 | 25 | 29 | (5) |
Settlements, assets | (58) | (75) | (186) | (185) |
Ending balance, fair value assets | 759 | 995 | 759 | 995 |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 2 | 25 | 29 | (5) |
Corporate Loans Receivable [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 875 | 147 | 150 | 107 |
Unrealized gains/(losses) included in earnings, assets | 4 | 36 | 1 | |
Purchases, assets | 719 | 146 | ||
Settlements, assets | (6) | (32) | ||
Sales, assets | (107) | |||
Ending balance, fair value assets | 873 | 147 | 873 | 147 |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 4 | 36 | 1 | |
Loan Repurchase Commitments [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 407 | 401 | 404 | 396 |
Unrealized gains/(losses) included in earnings, assets | (1) | 3 | 2 | 8 |
Ending balance, fair value assets | 406 | 404 | 406 | 404 |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (1) | 3 | 2 | 8 |
State and municipal bonds [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 124 | 41 | ||
Purchases, assets | 122 | |||
Settlements, assets | (39) | |||
Transfers into level 3, assets | 2 | 1 | 2 | |
Transfers out of level 3, assets | (122) | (1) | (122) | |
Ending balance, fair value assets | 4 | 4 | ||
Foreign Government Debt [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 7 | 2 | ||
Foreign exchange recognized in OCI or earnings, assets | (1) | |||
Purchases, assets | 5 | 10 | ||
Settlements, assets | (6) | (5) | ||
Ending balance, fair value assets | 6 | 6 | ||
Corporate Obligations [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 2 | 2 | 7 | |
Settlements, assets | (1) | 0 | ||
Transfers out of level 3, assets | (2) | (6) | ||
Ending balance, fair value assets | 1 | 1 | ||
Corporate Obligations [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 3 | 11 | ||
Unrealized gains/(losses) included in earnings, assets | (4) | |||
Settlements, assets | (2) | (1) | ||
Transfers into level 3, assets | 6 | 2 | ||
Transfers out of level 3, assets | (4) | (5) | ||
Ending balance, fair value assets | 3 | 3 | ||
Residential Mortgage Backed Non Agency [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 1 | |||
Unrealized gains/(losses) included in earnings, assets | (1) | (1) | ||
Transfers into level 3, assets | 1 | |||
Commercial Mortgage Backed Securities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 7 | |||
Transfers into level 3, assets | 1 | 7 | 1 | |
Transfers out of level 3, assets | (7) | (7) | ||
Ending balance, fair value assets | 1 | 1 | ||
Commercial Mortgage Backed Securities [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 3 | 2 | ||
Unrealized gains/(losses) included in earnings, assets | (1) | (1) | ||
Sales, assets | (3) | (3) | ||
Transfers into level 3, assets | 2 | 3 | 4 | |
Ending balance, fair value assets | 3 | 3 | ||
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (1) | (1) | ||
Collateralized Debt Obligations [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 20 | 15 | 29 | |
Unrealized gains/(losses) included in OCI, assets | 18 | |||
Settlements, assets | (3) | (7) | (30) | |
Transfers out of level 3, assets | (8) | |||
Ending balance, fair value assets | 17 | 17 | ||
Collateralized Debt Obligations [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 1 | 1 | 1 | 1 |
Ending balance, fair value assets | 1 | 1 | 1 | 1 |
Other Asset Backed [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 5 | 41 | 44 | 38 |
Realized gains/(losses), assets | (1) | |||
Unrealized gains/(losses) included in earnings, assets | (1) | |||
Unrealized gains/(losses) included in OCI, assets | 2 | 8 | ||
Settlements, assets | (41) | (3) | ||
Transfers out of level 3, assets | (3) | (3) | ||
Ending balance, fair value assets | 5 | 38 | 5 | 38 |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | (1) | |||
Other Asset Backed [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 4 | 1 | 6 | |
Unrealized gains/(losses) included in earnings, assets | (6) | |||
Transfers into level 3, assets | 1 | 4 | ||
Transfers out of level 3, assets | (3) | (2) | (3) | |
Ending balance, fair value assets | 1 | 1 | ||
Medium Term Notes [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value liabilities | 123 | 161 | 101 | 161 |
Unrealized gains/(losses included in earnings, liabilities | (1) | 13 | (4) | |
Foreign exchange recognized in OCI or earnings, liabilities | 5 | 2 | 13 | 6 |
Settlements, liabilities | (57) | (57) | ||
Ending balance, fair value liabilities | 127 | 106 | 127 | 106 |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 4 | 2 | 26 | 2 |
Credit Derivatives [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value liabilities | 80 | 104 | 64 | 85 |
Realized gains/(losses), liabilities | 7 | 5 | 41 | 21 |
Unrealized gains/(losses included in earnings, liabilities | (6) | (19) | 10 | |
Settlements, liabilities | (7) | (5) | (41) | (21) |
Ending balance, fair value liabilities | 74 | 85 | 74 | 85 |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | (6) | 12 | 12 | 9 |
Other Derivative Liabilities [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value liabilities | 4 | 21 | 20 | 18 |
Unrealized gains/(losses included in earnings, liabilities | (2) | 18 | 1 | |
Settlements, liabilities | (34) | |||
Ending balance, fair value liabilities | 4 | 19 | 4 | 19 |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | (2) | 18 | (1) | |
Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value liabilities | 491 | 523 | 476 | 1,267 |
Unrealized gains/(losses included in earnings, liabilities | 4 | 2 | 56 | (41) |
Purchases, liabilities | 9 | |||
Settlements, liabilities | (14) | (27) | (51) | (106) |
Sales, liabilities | (51) | (51) | (631) | |
Ending balance, fair value liabilities | 430 | 498 | 430 | 498 |
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | 4 | 2 | 56 | (41) |
Currency Derivatives [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance, fair value assets | 9 | 9 | 19 | 11 |
Unrealized gains/(losses) included in earnings, assets | 3 | (2) | (2) | |
Foreign exchange recognized in OCI or earnings, assets | 1 | 4 | (4) | 4 |
Ending balance, fair value assets | 13 | 13 | 13 | 13 |
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets | 4 | $ 4 | (6) | $ 2 |
Other Assets [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Purchases, assets | 17 | 17 | ||
Ending balance, fair value assets | 17 | 17 | ||
Other Payable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Unrealized gains/(losses included in earnings, liabilities | 1 | 1 | ||
Purchases, liabilities | 6 | 6 | ||
Ending balance, fair value liabilities | 7 | 7 | ||
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities | $ 1 | $ 1 |
Fair Value Of Financial Instr51
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Unrealized gains (losses) on insured derivatives | $ (10) | $ 0 | ||
Net gains (losses) on financial instruments at fair value and foreign exchange | $ (11) | $ 38 | (55) | (17) |
Other net realized gains (losses) | (1) | (2) | 36 | (3) |
Net investment losses related to other-than-temporary impairments | (71) | 0 | (84) | (1) |
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 | 6 | 19 | (10) | |
Realized gains and other settlements on insured derivatives | (7) | (5) | (41) | (21) |
Net gains (losses) on financial instruments at fair value and foreign exchange | (4) | (44) | (5) | |
Other net realized gains (losses) | (1) | (1) | ||
Net investment losses related to other-than-temporary impairments | (1) | |||
Total revenues | (1) | 42 | (91) | 8 |
Fair Value Inputs Level 3 [Member] | Change In Unrealized Gains Losses For 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 | 6 | (12) | (12) | (9) |
Net gains (losses) on financial instruments at fair value and foreign exchange | (4) | (44) | (2) | |
Other net realized gains (losses) | (1) | (1) | ||
Total revenues | 6 | 17 | (52) | 35 |
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 | 5 | 28 | 5 | 35 |
Fair Value Inputs Level 3 [Member] | Variable Interest Entity Primary Beneficiary [Member] | Change In Unrealized Gains Losses For 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 | $ 5 | $ 29 | $ 5 | $ 46 |
Fair Value Of Financial Instr52
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | $ (11) | $ 38 | $ (55) | $ (17) | |
Other net realized gains (losses) | (1) | (2) | 36 | (3) | |
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) | 38 | (55) | (17) | |
Other net realized gains (losses) | (1) | (2) | 36 | (3) | |
Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 21 | 8 | 2 | 0 | |
Other net realized gains (losses) | 0 | 0 | 28 | 0 | |
Variable Interest Entity [Member] | Loan Repurchase Commitments [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | (1) | 3 | 3 | 8 | |
Investments Carried At Fair Value [Member] | Non Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | [1] | 2 | 2 | 8 | 8 |
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] | (2) | (12) | (16) | (109) |
Residential Mortgage Loans [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] | (55) | (50) | (157) | (190) |
Corporate Loans [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) | 4 | ||
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) | (2) | (26) | (2) |
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] | 70 | $ 70 | 160 | $ 307 |
Other Liabilities [Member] | Non Variable Interest Entity [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Other net realized gains (losses) | [3] | $ (1) | $ (1) | ||
[1] | Reported within Net gains (losses) of financial instruments at fair value and foreign exchange on MBIA's consolidated statements of operations. | ||||
[2] | Reported within Net gains (losses) of financial instruments at fair value and foreign exchange-VIE on MBIA's consolidated statements of operations. | ||||
[3] | Reported within "Other net realized gains (losses)" on MBIA's consolidated statements of operations. |
Fair Value Of Financial Instr53
Fair Value Of Financial Instruments (Aggregate Fair Value And Remaining Contractual Principal Balance Outstanding On Fair Value Option) (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Non Variable Interest Entity [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Medium-term notes, contractual outstanding principal | $ 177 | $ 158 |
Medium-term notes, fair value | 127 | 101 |
Medium-term notes, difference | 51 | 57 |
Variable Interest Entity [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Loans receivable, contractual outstanding principal | 1,796 | 1,258 |
Variable interest entity notes, contractual outstanding principal | 1,941 | 2,449 |
Loans receivable, fair value | 1,632 | 1,066 |
Variable interest entity notes, fair value | 1,140 | 1,351 |
Loans receivable, difference | 163 | 192 |
Variable interest entity notes, difference | 801 | 1,098 |
Residential Mortgage Loans [Member] | Variable Interest Entity [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Loans receivable, contractual outstanding principal | 766 | 965 |
Loans receivable, 90 days or more past due, contractual outstanding principal | 157 | 143 |
Loans receivable, fair value | 721 | 894 |
Loans receivable, 90 days or more past due, fair value | 38 | 22 |
Loans receivable, difference | 44 | 71 |
Loans receivable, 90 days or more past due, difference | 119 | 121 |
Corporate Loans [Member] | Variable Interest Entity [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Loans receivable, contractual outstanding principal | 873 | 150 |
Loans receivable, fair value | 873 | 150 |
Loans receivable, difference | $ 0 | $ 0 |
Investments (Narrative) (Detail
Investments (Narrative) (Detail) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017USD ($)security | Dec. 31, 2016USD ($)security | |
Schedule Of Investments [Line Items] | ||
Fair value of securities on deposit with various regulatory authorities | $ 10 | $ 11 |
Fair value of securities pledged as collateral | 380 | 416 |
Cash and money market securities pledged as collateral under investment agreements | $ 1 | $ 6 |
Weighted average contractual maturity period in years for securities in an unrealized loss position | 15 years | 22 years |
Number of securities in unrealized loss position for a continuous 12 month period | security | 59 | 46 |
Rate that a security's fair value is below book value | 5.00% | 5.00% |
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 | 27 | 12 |
Investments (Amortized Cost And
Investments (Amortized Cost And Fair Value Of Available-For-Sale and Held-To-Maturity Investment Portfolios) (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | $ 4,774 | $ 5,450 | |
Gross unrealized gains | 131 | 129 | |
Gross unrealized losses | (98) | (148) | |
Total available-for-sale, fair value | 4,807 | 5,431 | |
Other-than-temporary impairments | [1] | (63) | (75) |
Variable Interest Entity Primary Beneficiary [Member] | |||
Held To Maturity Securities [Abstract] | |||
Total held-to-maturity, amortized cost | 890 | 890 | |
Gross unrealized gains | 7 | 0 | |
Gross unrealized losses | 0 | (14) | |
Total held-to-maturity investments, fair value | 897 | 876 | |
Other-Than-Temporary Impairments | [1] | 0 | 0 |
Corporate Obligations [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Held To Maturity Securities [Abstract] | |||
Total held-to-maturity, amortized cost | 890 | 890 | |
Gross unrealized gains | 7 | 0 | |
Gross unrealized losses | 0 | (14) | |
Total held-to-maturity investments, fair value | 897 | 876 | |
Other-Than-Temporary Impairments | [1] | 0 | 0 |
Money Market Securities [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 267 | 517 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Total available-for-sale, fair value | 267 | 517 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Perpetual Debt And Equity Securities [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 4 | 4 | |
Gross unrealized gains | 1 | 1 | |
Gross unrealized losses | 0 | 0 | |
Total available-for-sale, fair value | 5 | 5 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 4,503 | 4,929 | |
Gross unrealized gains | 130 | 128 | |
Gross unrealized losses | (98) | (148) | |
Total available-for-sale, fair value | 4,535 | 4,909 | |
Other-than-temporary impairments | [1] | (63) | (75) |
Fixed Maturities [Member] | Variable Interest Entity Primary Beneficiary [Member] | |||
Held To Maturity Securities [Abstract] | |||
Total held-to-maturity, amortized cost | 890 | ||
Total held-to-maturity investments, fair value | 897 | ||
Fixed Maturities [Member] | U S Treasury And Government [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 785 | 909 | |
Gross unrealized gains | 32 | 30 | |
Gross unrealized losses | (5) | (10) | |
Total available-for-sale, fair value | 812 | 929 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | US States And Political Subdivisions [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 1,054 | 1,382 | |
Gross unrealized gains | 65 | 72 | |
Gross unrealized losses | (6) | (15) | |
Total available-for-sale, fair value | 1,113 | 1,439 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | Foreign Governments [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 8 | 8 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Total available-for-sale, fair value | 8 | 8 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | Corporate Obligations [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 1,489 | 1,352 | |
Gross unrealized gains | 28 | 20 | |
Gross unrealized losses | (75) | (102) | |
Total available-for-sale, fair value | 1,442 | 1,270 | |
Other-than-temporary impairments | [1] | (64) | (73) |
Fixed Maturities [Member] | Residential Mortgage-Backed Agency [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 699 | 871 | |
Gross unrealized gains | 2 | 3 | |
Gross unrealized losses | (8) | (12) | |
Total available-for-sale, fair value | 693 | 862 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | Residential Mortgage-Backed Non-Agency [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 38 | 50 | |
Gross unrealized gains | 2 | 1 | |
Gross unrealized losses | (4) | (6) | |
Total available-for-sale, fair value | 36 | 45 | |
Other-than-temporary impairments | [1] | 0 | (3) |
Fixed Maturities [Member] | Commercial Mortgage-Backed [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 49 | 41 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Total available-for-sale, fair value | 49 | 41 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 70 | 22 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Total available-for-sale, fair value | 70 | 22 | |
Other-than-temporary impairments | [1] | 0 | 0 |
Fixed Maturities [Member] | Other Asset-Backed [Member] | |||
Available For Sale Securities [Abstract] | |||
Total available-for-sale, amortized cost | 311 | 294 | |
Gross unrealized gains | 1 | 2 | |
Gross unrealized losses | 0 | (3) | |
Total available-for-sale, fair value | 312 | 293 | |
Other-than-temporary impairments | [1] | $ 1 | $ 1 |
[1] | Represents unrealized gains or losses on other than temporarily impaired securities recognized in AOCI, which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities reported in AOCI. |
Investments (Distribution By Co
Investments (Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments) (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Held To Maturity Securities [Abstract] | ||
Total held-to-maturity, amortized cost | $ 890 | $ 890 |
Held-To-Maturity Securities Fair Value | 897 | $ 876 |
Fixed Maturities [Member] | ||
Available For Sale Securities [Abstract] | ||
Due in one year or less | 508 | |
Due after one year through five years | 874 | |
Due after five years through ten years | 684 | |
Due after ten years | 1,270 | |
Mortgage-Backed and Asset-Backed | 1,167 | |
Total Available-For-Sale, amortized cost | 4,503 | |
Due in one year or less | 509 | |
Due after one year through five years | 883 | |
Due after five years through ten years | 635 | |
Due after ten years | 1,348 | |
Mortgage-Backed and Asset-Backed | 1,160 | |
Total Available-For-Sale, fair value | 4,535 | |
Fixed Maturities [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||
Held To Maturity Securities [Abstract] | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 0 | |
Due after ten years | 890 | |
Mortgage-Backed and Asset-Backed | 0 | |
Total held-to-maturity, amortized cost | 890 | |
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 0 | |
Due after ten years | 897 | |
Mortgage-Backed and Asset-Backed | 0 | |
Held-To-Maturity Securities Fair Value | $ 897 |
Investments (Gross Unrealized L
Investments (Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments) (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | $ 1,365 | |
Less than 12 months, unrealized losses | (13) | |
12 months or longer, fair value | 438 | |
12 months or longer, unrealized losses | (85) | |
Total available-for-sale, fair value | 1,803 | |
Total available-for-sale, unrealized losses | (98) | |
Variable Interest Entity Primary Beneficiary [Member] | ||
Held To Maturity Securities [Abstract] | ||
Less than 12 months, fair value | 0 | $ 0 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 0 | 876 |
12 months or longer, unrealized losses | 0 | (14) |
Total held-to-maturity, fair value | 0 | 876 |
Total held-to-maturity, unrealized losses | 0 | (14) |
Corporate Obligations [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||
Held To Maturity Securities [Abstract] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 0 | 876 |
12 months or longer, unrealized losses | 0 | (14) |
Total held-to-maturity, fair value | 0 | 876 |
Total held-to-maturity, unrealized losses | 0 | (14) |
Perpetual Debt And Equity Securities [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 0 | |
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 | 0 | |
Total available-for-sale, unrealized losses | 0 | |
Fixed Maturities [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 1,365 | 1,872 |
Less than 12 months, unrealized losses | (13) | (62) |
12 months or longer, fair value | 438 | 300 |
12 months or longer, unrealized losses | (85) | (86) |
Total available-for-sale, fair value | 1,803 | 2,172 |
Total available-for-sale, unrealized losses | (98) | (148) |
Fixed Maturities [Member] | U S Treasury And Government [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 279 | 432 |
Less than 12 months, unrealized losses | (2) | (10) |
12 months or longer, fair value | 87 | 0 |
12 months or longer, unrealized losses | (3) | 0 |
Total available-for-sale, fair value | 366 | 432 |
Total available-for-sale, unrealized losses | (5) | (10) |
Fixed Maturities [Member] | US States And Political Subdivisions [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 162 | 339 |
Less than 12 months, unrealized losses | (3) | (13) |
12 months or longer, fair value | 53 | 18 |
12 months or longer, unrealized losses | (3) | (2) |
Total available-for-sale, fair value | 215 | 357 |
Total available-for-sale, unrealized losses | (6) | (15) |
Fixed Maturities [Member] | Foreign Government Debt [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 4 | 5 |
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 | 4 | 5 |
Total available-for-sale, unrealized losses | 0 | 0 |
Fixed Maturities [Member] | Corporate Obligations [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 388 | 534 |
Less than 12 months, unrealized losses | (4) | (29) |
12 months or longer, fair value | 135 | 52 |
12 months or longer, unrealized losses | (71) | (73) |
Total available-for-sale, fair value | 523 | 586 |
Total available-for-sale, unrealized losses | (75) | (102) |
Fixed Maturities [Member] | Residential Mortgage Backed Agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 344 | 436 |
Less than 12 months, unrealized losses | (4) | (9) |
12 months or longer, fair value | 140 | 122 |
12 months or longer, unrealized losses | (4) | (3) |
Total available-for-sale, fair value | 484 | 558 |
Total available-for-sale, unrealized losses | (8) | (12) |
Fixed Maturities [Member] | Residential Mortgage Backed Non Agency [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 9 | 1 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 15 | 29 |
12 months or longer, unrealized losses | (4) | (6) |
Total available-for-sale, fair value | 24 | 30 |
Total available-for-sale, unrealized losses | (4) | (6) |
Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 25 | 6 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 6 | 15 |
12 months or longer, unrealized losses | 0 | 0 |
Total available-for-sale, fair value | 31 | 21 |
Total available-for-sale, unrealized losses | 0 | 0 |
Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 5 | 7 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer, fair value | 0 | 15 |
12 months or longer, unrealized losses | 0 | 0 |
Total available-for-sale, fair value | 5 | 22 |
Total available-for-sale, unrealized losses | 0 | 0 |
Fixed Maturities [Member] | Other Asset Backed [Member] | ||
Available For Sale Securities [Abstract] | ||
Less than 12 months, fair value | 149 | 112 |
Less than 12 months, unrealized losses | 0 | (1) |
12 months or longer, fair value | 2 | 49 |
12 months or longer, unrealized losses | 0 | (2) |
Total available-for-sale, fair value | 151 | 161 |
Total available-for-sale, unrealized losses | $ 0 | $ (3) |
Investments (Distribution Of Se
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) $ in Millions | Sep. 30, 2017USD ($)security | Dec. 31, 2016USD ($) |
Available For Sale Securities [Abstract] | ||
Fixed-maturity securities held as available-for-sale, amortized cost | $ 4,774 | $ 5,450 |
Available For Sale Securities | $ 4,807 | $ 5,431 |
> 5% To 15% [Member] | ||
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% | |
> 5% To 15% [Member] | Unrealized loss position > 12 months | ||
Available For Sale Securities [Abstract] | ||
Number of available-for-sale securities in unrealized loss position | security | 21 | |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 136 | |
Available For Sale Securities | $ 126 | |
Held To Maturity Securities [Abstract] | ||
Number of Held-To-Maturity Securities in unrealized loss position | security | 0 | |
Held-To-Maturity Securities Amortized Cost | $ 0 | |
Held-To-Maturity Securities Fair Value | $ 0 | |
> 15% To 25% [Member] | ||
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% | |
> 15% To 25% [Member] | Unrealized loss position > 12 months | ||
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 | $ 15 | |
Available For Sale Securities | $ 12 | |
Held To Maturity Securities [Abstract] | ||
Number of Held-To-Maturity Securities in unrealized loss position | security | 0 | |
Held-To-Maturity Securities Amortized Cost | $ 0 | |
Held-To-Maturity Securities Fair Value | $ 0 | |
> 25% To 50% [Member] | ||
Held To Maturity Securities [Abstract] | ||
Percentage Of Fair Value Below Book Value Minimum | 25.00% | |
Percentage Of Fair Value Below Book Value Maximum | 50.00% | |
> 25% To 50% [Member] | Unrealized loss position > 12 months | ||
Available For Sale Securities [Abstract] | ||
Number of available-for-sale securities in unrealized loss position | security | 1 | |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 1 | |
Available For Sale Securities | $ 0 | |
Held To Maturity Securities [Abstract] | ||
Number of Held-To-Maturity Securities in unrealized loss position | security | 0 | |
Held-To-Maturity Securities Amortized Cost | $ 0 | |
Held-To-Maturity Securities Fair Value | $ 0 | |
> 50% [Member] | ||
Held To Maturity Securities [Abstract] | ||
Percentage Of Fair Value Below Book Value Minimum | 50.00% | |
> 50% [Member] | Unrealized loss position > 12 months | ||
Available For Sale Securities [Abstract] | ||
Number of available-for-sale securities in unrealized loss position | security | 3 | |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 101 | |
Available For Sale Securities | $ 37 | |
Held To Maturity Securities [Abstract] | ||
Number of Held-To-Maturity Securities in unrealized loss position | security | 0 | |
Held-To-Maturity Securities Amortized Cost | $ 0 | |
Held-To-Maturity Securities Fair Value | $ 0 | |
Greater Than 5% [Member] | Unrealized loss position > 12 months | ||
Available For Sale Securities [Abstract] | ||
Number of available-for-sale securities in unrealized loss position | security | 27 | |
Fixed-maturity securities held as available-for-sale, amortized cost | $ 253 | |
Available For Sale Securities | $ 175 | |
Held To Maturity Securities [Abstract] | ||
Number of Held-To-Maturity Securities in unrealized loss position | security | 0 | |
Held-To-Maturity Securities Amortized Cost | $ 0 | |
Held-To-Maturity Securities Fair Value | $ 0 |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings Related To OTTI Losses Recognized In Accumulated Other Comprehensive Income (Loss)) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other than temporary impairment credit lossesfor available for sale securities rollforward [Abstract] | ||||
Beginning Balance | $ 42 | $ 26 | $ 29 | $ 26 |
Additions For Credit Loss Impairments Recognized In The Current Period On Securities Not Previous Impaired | 0 | 0 | 11 | 0 |
Additions For Credit Loss Impairments Recognized In The Current Period On Securities Previously Impaired | 2 | 0 | 4 | 0 |
Reductions For Credit Loss Impairments Previously Recognized On Securities Sold During The Period | (2) | (2) | ||
Reductions For Credit Loss Impairments Previously Recognized On Securities Impaired To Fair Value During The Period | (11) | (11) | ||
Ending Balance | $ 31 | $ 26 | $ 31 | $ 26 |
Investments (Securities Held In
Investments (Securities Held In Unrealized Loss Position And Insured By Financial Guarantor) (Detail) $ in Millions | Sep. 30, 2017USD ($) | |
Schedule Of Investments [Line Items] | ||
Total Available-For-Sale, Fair Value | $ 1,803 | |
Wrapped Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Total Available-For-Sale, Fair Value | 30 | |
Gross unrealized losses | (5) | |
Loss and loss adjustment expense reserves | 16 | [1] |
Asset-backed [Member] | Wrapped Securities [Member] | Mbia Corp And National [Member] | ||
Schedule Of Investments [Line Items] | ||
Total Available-For-Sale, Fair Value | 0 | [2] |
Gross unrealized losses | 0 | [2] |
Loss and loss adjustment expense reserves | 0 | [1],[2] |
Mortgage-backed [Member] | Wrapped Securities [Member] | Mbia Corp And National [Member] | ||
Schedule Of Investments [Line Items] | ||
Total Available-For-Sale, Fair Value | 15 | [2] |
Gross unrealized losses | (4) | [2] |
Loss and loss adjustment expense reserves | 16 | [1],[2] |
Corporate Obligations [Member] | Wrapped Securities [Member] | Mbia Corp And National [Member] | ||
Schedule Of Investments [Line Items] | ||
Total Available-For-Sale, Fair Value | 13 | [2] |
Gross unrealized losses | (1) | [2] |
Loss and loss adjustment expense reserves | 0 | [1],[2] |
All Other Securities [Member] | Wrapped Securities [Member] | Mbia Corp And National [Member] | ||
Schedule Of Investments [Line Items] | ||
Total Available-For-Sale, Fair Value | 0 | [2] |
Gross unrealized losses | 0 | [2] |
Loss and loss adjustment expense reserves | 0 | [1],[2] |
All Other Securities [Member] | Wrapped Securities [Member] | Other Insurers [Member] | ||
Schedule Of Investments [Line Items] | ||
Total Available-For-Sale, Fair Value | 2 | |
Gross unrealized losses | 0 | |
Loss and loss adjustment expense reserves | $ 0 | [1] |
[1] | Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured. | |
[2] | Includes investments insured by MBIA Corp. and National. |
Investments (Net Realized Gains
Investments (Net Realized Gains (Losses) From Sales Of Available-For-Sale Securities) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Investments [Abstract] | ||||
Proceeds from sales | $ 312 | $ 848 | $ 1,300 | $ 1,785 |
Available For Sale Securities Realized Gain Loss [Abstract] | ||||
Gross realized gains | 5 | 33 | 24 | 70 |
Gross realized losses | $ (5) | $ 0 | $ (9) | $ (18) |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Maximum amount of future guarantee payments | $ 282 | |
Cash collateral posted to derivative counterparties | 0 | $ 1 |
Securities posted as collateral to derivative counterparties | 250 | 276 |
Fair value of Credit Support Annex | $ 3 | $ 3 |
Derivative Instruments (Credit
Derivative Instruments (Credit Derivatives Sold) (Detail) - Insurance Operations [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Derivative notional amount | $ 3,147 | $ 4,043 |
Total fair value of credit derivatives | $ (76) | $ (66) |
Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Weighted average remaining expected maturity | 3 years | 3 years 9 months |
Derivative notional amount | $ 252 | $ 588 |
Total fair value of credit derivatives | $ (74) | $ (64) |
Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Weighted average remaining expected maturity | 15 years 7 months | 15 years 6 months |
Derivative notional amount | $ 2,895 | $ 3,035 |
Total fair value of credit derivatives | (2) | $ (2) |
Insured Swaps - Held for Sale [Member] | ||
Derivative [Line Items] | ||
Weighted average remaining expected maturity | 14 years 3 months | |
Derivative notional amount | 0 | $ 420 |
Credit Rating Aaa [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | 0 |
Total fair value of credit derivatives | 0 | 0 |
Credit Rating Aaa [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | 0 |
Credit Rating Aaa [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | 0 |
Credit Rating Aaa [Member] | Other Credit Derivatives [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | |
Credit Rating Aa [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 125 | 137 |
Total fair value of credit derivatives | 0 | 0 |
Credit Rating Aa [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | 0 |
Credit Rating Aa [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 125 | 137 |
Credit Rating Aa [Member] | Other Credit Derivatives [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | |
Credit Rating A [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 2,018 | 2,261 |
Total fair value of credit derivatives | (1) | (1) |
Credit Rating A [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 115 | 115 |
Credit Rating A [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 1,903 | 2,146 |
Credit Rating A [Member] | Other Credit Derivatives [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | |
Credit Rating Bbb [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 847 | 1,152 |
Total fair value of credit derivatives | (1) | (1) |
Credit Rating Bbb [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | 0 |
Credit Rating Bbb [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 847 | 732 |
Credit Rating Bbb [Member] | Insured Swaps - Held for Sale [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | 420 |
Credit Rating Below Investment Grade [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 157 | 493 |
Total fair value of credit derivatives | (74) | (64) |
Credit Rating Below Investment Grade [Member] | Credit Default Swap [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | 137 | 473 |
Credit Rating Below Investment Grade [Member] | Insured Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 20 | $ 20 |
Derivative Instruments (Total F
Derivative Instruments (Total Fair Value Of Company's Derivative Assets And Liabilities By Instrument And Balance Sheet Location, Before Counterparty Netting) (Detail) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Derivative notional amount | $ 4,428 | $ 5,675 | |
Derivative Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | (299) | (316) |
Derivative Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | [1] | 18 | 25 |
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 749 | 1,062 | |
Interest Rate Swap [Member] | Derivative Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | (204) | (213) |
Interest Rate Swap [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | [1] | 3 | 3 |
Credit Default Swap [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 252 | 588 | |
Credit Default Swap [Member] | Derivative Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | (74) | (64) |
Insured Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 2,895 | 3,035 | |
Insured Swaps [Member] | Derivative Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | (2) | (2) |
Interest Rate Swaps V I E [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 0 | 0 | |
Interest Rate Swaps V I E [Member] | Derivative Liabilities V I E [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | 0 | 0 |
Interest Rate Swaps V I E [Member] | Derivative Assets V I E [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | 0 | ||
Interest Rate Swaps Embedded [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 419 | 376 | |
Interest Rate Swaps Embedded [Member] | Medium Term Notes [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | [1] | 2 | 2 |
Derivative Liabilities, Not designated, Fair Value | [1] | (14) | (17) |
Currency Swaps Vie [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 63 | 71 | |
Currency Swaps Vie [Member] | Other Assets V I E [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | [1] | 13 | 20 |
All Other [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 49 | 83 | |
All Other [Member] | Derivative Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | (4) | (20) |
All Other V I E [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 0 | 35 | |
All Other V I E [Member] | Other Assets V I E [Member] | |||
Derivative [Line Items] | |||
Derivative Assets, Not designated, Fair Value | 0 | ||
All Other Embedded [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | 1 | 5 | |
All Other Embedded [Member] | Derivative Liabilities Other Investments [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities, Not designated, Fair Value | [1] | (1) | |
Insured Swaps - Held for Sale [Member] | |||
Derivative [Line Items] | |||
Derivative notional amount | $ 0 | $ 420 | |
[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 |
Derivative Instruments (Effect
Derivative Instruments (Effect Of Derivative Instruments On Consolidated Statements Of Operations) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | $ 0 | $ 21 | $ (84) | $ (96) |
Unrealized Gains Losses On Insured Derivatives [Member] | Credit Default Swap [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | 6 | 20 | (10) | 0 |
Realized Gains Losses And Other Settlements On Insured Derivatives [Member] | Credit Default Swap [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | (7) | (4) | (41) | (20) |
Foreign Exchange And Other Derivative Financial Instruments [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | (3) | (1) | (8) | (86) |
Foreign Exchange And Other Derivative Financial Instruments [Member] | All Other [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | 0 | 2 | (19) | (1) |
Foreign Exchange And Other Derivative Financial Instruments Attributable To V I E [Member] | Interest Rate Swaps V I E [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | 0 | 0 | 8 | |
Foreign Exchange And Other Derivative Financial Instruments Attributable To V I E [Member] | Currency Swaps Vie [Member] | ||||
Derivative [Line Items] | ||||
Net gain/(loss) recognized in income | $ 4 | $ 4 | $ (6) | $ 3 |
Debt (Narrative) (Detail)
Debt (Narrative) (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |
Proceeds from Senior Lenders | $ 325 |
MBIA Corp Financing Facility [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, maturity date | Jan. 20, 2020 |
Long-term debt | $ 322 |
commitment fees | 10 |
MBIA Corp Financing Facility [Member] | Initial [Member] | |
Debt Instrument [Line Items] | |
Long-term debt | 366 |
Mbia Inc [Member] | |
Debt Instrument [Line Items] | |
Proceeds from subordinated financing | 38 |
Mbia Corp [Member] | Undrawn [Member] | |
Debt Instrument [Line Items] | |
Proceeds from subordinated financing | $ 50 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Non Variable Interest Entities [Line Items] | ||
Deferred income taxes, net | $ 0 | $ 970 |
Valuation allowance | 1,236 | 7 |
Valuation Allowance Deferred Tax Asset Change In Amount | 1,200 | |
NOL carryforward | 2,800 | |
Foreign tax credit | 62 | 7 |
Alternative minimum tax credit carryforward | $ 30 | $ 26 |
Income Taxes (Income Taxes And
Income Taxes (Income Taxes And Related Effective Tax Rates) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Disclosure Income Taxes Income Taxes And Related Effective Tax Rates [Abstract] | ||||
Income (loss) before income taxes | $ (273) | $ 55 | $ (603) | $ (101) |
Provision (benefit) for income taxes | $ (6) | $ 24 | $ 965 | $ (28) |
Effective tax rate | 2.20% | 43.60% | (160.00%) | 27.70% |
Income Taxes (Components Of Def
Income Taxes (Components Of Deferred Tax Assets and Liabilities) (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Deferred tax liabilities [Abstract] | ||
Unearned premium reserve | $ 139 | $ 143 |
Deferral of cancellation of indebtedness income | 28 | 46 |
Deferred acquisition costs | 34 | 42 |
Net gains on financial instruments at fair value and foreign exchange | 0 | 4 |
Net unrealized gains in accumulated other comprehensive income | 10 | 0 |
Partnership basis difference | 29 | 36 |
Basis difference in foreign subsidiaries | 1 | 64 |
Net deferred taxes on VIEs | 13 | 0 |
Other | 28 | 27 |
Total gross deferred tax liabilities | 282 | 362 |
Deferred tax assets [Abstract] | ||
Compensation and employee benefits | 15 | 19 |
Accrued interest | 208 | 177 |
Loss and loss adjustment expense reserves | 121 | 142 |
Net operating loss | 996 | 929 |
Foreign tax credit | 62 | 7 |
Capital loss carryforward and other-than-temporary impairments | 28 | 4 |
Net unrealized losses on insured derivatives | 28 | 29 |
Net losses on financial instruments at fair value and foreign exchange | 30 | 0 |
Net unrealized losses in accumulated other comprehensive income | 0 | 6 |
Alternative minimum tax credit carryforward | 30 | 26 |
Total gross deferred tax assets | 1,518 | 1,339 |
Valuation allowance | 1,236 | 7 |
Net deferred tax asset | $ 0 | $ 970 |
Business Segments (Narrative) (
Business Segments (Narrative) (Detail) | 9 Months Ended |
Sep. 30, 2017segments | |
Disclosure Business Segments Summary Of Companys Segment Results [Abstract] | |
Number of operating segments | 3 |
Business Segments (Summary Of C
Business Segments (Summary Of Company's Segment Results) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | ||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | [1] | $ 87 | $ 138 | $ 277 | $ 364 | |||||
Net change in fair value of insured derivatives | (1) | 16 | (51) | (20) | ||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | (11) | 38 | (55) | (17) | ||||||
Net investment losses related to other-than-temporary impairments | (71) | 0 | (84) | (1) | ||||||
Net gains (losses) on extinguishment of debt | 1 | 0 | 9 | 5 | ||||||
Other net realized gains (losses) | (1) | (2) | 36 | (3) | ||||||
Revenues of consolidated VIEs | 29 | 13 | 50 | 25 | ||||||
Inter-segment revenues | [2] | 0 | 0 | 0 | 0 | |||||
Total revenues | 33 | 203 | 182 | 353 | ||||||
Losses and loss adjustment | 205 | 50 | 469 | 149 | ||||||
Operating | 29 | 42 | 105 | 127 | ||||||
Interest | 50 | 49 | 148 | 148 | ||||||
Expenses of consolidated VIEs | 22 | 7 | 63 | 30 | ||||||
Inter-segment expenses | [2] | 0 | 0 | 0 | 0 | |||||
Total expenses | 306 | 148 | 785 | 454 | ||||||
Income (loss) before income taxes | (273) | 55 | (603) | (101) | ||||||
Provision (benefit) for income taxes | (6) | 24 | 965 | (28) | ||||||
Net income (loss) | (267) | 31 | (1,568) | (73) | ||||||
Identifiable assets | 9,544 | 11,787 | 9,544 | 11,787 | $ 11,137 | |||||
U S Public Finance Insurance [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Losses and loss adjustment | 141 | 28 | 310 | 46 | ||||||
Operating Segments [Member] | U S Public Finance Insurance [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | [1] | 70 | 84 | 200 | 250 | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 2 | 31 | 20 | 65 | ||||||
Net investment losses related to other-than-temporary impairments | (71) | (84) | ||||||||
Other net realized gains (losses) | (1) | (1) | ||||||||
Inter-segment revenues | [2] | 4 | 6 | 14 | 16 | |||||
Total revenues | 4 | 121 | 149 | 331 | ||||||
Losses and loss adjustment | 141 | 28 | 310 | 46 | ||||||
Operating | 8 | 9 | 34 | 29 | ||||||
Inter-segment expenses | [2] | 16 | 18 | 47 | 52 | |||||
Total expenses | 165 | 55 | 391 | 127 | ||||||
Income (loss) before income taxes | (161) | 66 | (242) | 204 | ||||||
Provision (benefit) for income taxes | (55) | 22 | (86) | 69 | ||||||
Net income (loss) | (106) | 44 | (156) | 135 | ||||||
Identifiable assets | 5,051 | 5,343 | 5,051 | 5,343 | 5,343 | |||||
Operating Segments [Member] | Corporate Operations [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | [1] | 7 | 6 | 23 | 17 | |||||
Net gains (losses) on financial instruments at fair value and foreign exchange | (15) | (2) | (54) | (105) | ||||||
Net investment losses related to other-than-temporary impairments | (1) | |||||||||
Net gains (losses) on extinguishment of debt | 1 | 0 | 9 | 5 | ||||||
Other net realized gains (losses) | (1) | (2) | (3) | (4) | ||||||
Inter-segment revenues | [2] | 15 | 15 | 46 | 43 | |||||
Total revenues | 7 | 17 | 21 | (45) | ||||||
Operating | 14 | 16 | 46 | 52 | ||||||
Interest | 22 | 22 | 66 | 69 | ||||||
Inter-segment expenses | [2] | 0 | 2 | 2 | 3 | |||||
Total expenses | 36 | 40 | 114 | 124 | ||||||
Income (loss) before income taxes | (29) | (23) | (93) | (169) | ||||||
Provision (benefit) for income taxes | (1) | (8) | 1,069 | (50) | ||||||
Net income (loss) | (28) | (15) | (1,162) | (119) | ||||||
Identifiable assets | 1,205 | 2,407 | 1,205 | 2,407 | 2,407 | |||||
Operating Segments [Member] | International And Structured Finance Insurance [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | [1] | 10 | 48 | 54 | 97 | |||||
Net change in fair value of insured derivatives | (1) | 16 | (51) | (20) | ||||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 2 | 9 | (21) | 23 | ||||||
Other net realized gains (losses) | 1 | 0 | 40 | 1 | ||||||
Revenues of consolidated VIEs | 29 | 13 | 50 | 25 | ||||||
Inter-segment revenues | [2] | 11 | 12 | 31 | 35 | |||||
Total revenues | 52 | 98 | 103 | 161 | ||||||
Losses and loss adjustment | 64 | 22 | 159 | 103 | ||||||
Operating | 7 | 17 | 25 | 46 | ||||||
Interest | 28 | 27 | 82 | 79 | ||||||
Expenses of consolidated VIEs | 22 | 7 | 63 | 30 | ||||||
Inter-segment expenses | [2] | 14 | 13 | 42 | 38 | |||||
Total expenses | 135 | 86 | 371 | 296 | ||||||
Income (loss) before income taxes | (83) | 12 | (268) | (135) | ||||||
Provision (benefit) for income taxes | 1 | 7 | 1,143 | (48) | ||||||
Net income (loss) | (84) | 5 | (1,411) | (87) | ||||||
Identifiable assets | 5,320 | 7,020 | 5,320 | 7,020 | 7,020 | |||||
Intersegment Elimination [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Inter-segment revenues | [2] | (30) | (33) | (91) | (94) | |||||
Total revenues | (30) | (33) | (91) | (94) | ||||||
Inter-segment expenses | [2] | (30) | (33) | (91) | (93) | |||||
Total expenses | (30) | (33) | (91) | (93) | ||||||
Income (loss) before income taxes | 0 | 0 | 0 | (1) | ||||||
Provision (benefit) for income taxes | 49 | 3 | (1,161) | 1 | ||||||
Net income (loss) | (49) | (3) | 1,161 | (2) | ||||||
Identifiable assets | $ (2,032) | [3] | $ (2,983) | [3] | $ (2,032) | [3] | $ (2,983) | [3] | $ (2,983) | |
[1] | Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements and other fees. | |||||||||
[2] | Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables. | |||||||||
[3] | Consists of intercompany reinsurance balances and repurchase agreements. |
Business Segments (Summary Of P
Business Segments (Summary Of Premiums Earned On Financial Guarantees And Insured Derivatives By Geographic Location Of Risk) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total premiums earned | $ 53 | $ 77 | $ 146 | $ 228 |
United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total premiums earned | 46 | 59 | 122 | 176 |
United Kingdom [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total premiums earned | 0 | 6 | 1 | 20 |
Europe Excluding United Kingdom [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total premiums earned | 0 | 1 | 1 | 4 |
Internationally Diversified [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total premiums earned | 0 | 3 | 1 | 3 |
Other Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total premiums earned | 7 | 6 | 19 | 20 |
Asia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total premiums earned | 0 | 1 | 0 | 2 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total premiums earned | $ 0 | $ 1 | $ 2 | $ 3 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Shares [Abstract] | ||||
Antidilutive stock options, restricted stock and warrants outstanding | 14.4 | 16.1 | 14.4 | 17.3 |
Earnings Per Share (Computation
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Basic earnings per share: [Abstract] | ||||
Net income (loss) | $ (267) | $ 31 | $ (1,568) | $ (73) |
Less: Undistributed earnings allocated to participating securities | 0 | 1 | 0 | 0 |
Net income (loss) available to common stockholders | $ (267) | $ 30 | $ (1,568) | $ (73) |
Basic weighted average shares | 122,967,924 | 131,633,411 | 126,643,642 | 133,368,752 |
Basic | $ (2.17) | $ 0.23 | $ (12.38) | $ (0.55) |
Diluted earnings per share: [Abstract] | ||||
Net income (loss) | $ (267) | $ 31 | $ (1,568) | $ (73) |
Less: Undistributed earnings allocated to participating securities | 0 | 1 | 0 | 0 |
Less: mark-to-market gain (loss) on warrants | 0 | 0 | ||
Net income (loss) available to common stockholders | $ (267) | $ 30 | $ (1,568) | $ (73) |
Basic weighted average shares | 122,967,924 | 131,633,411 | 126,643,642 | 133,368,752 |
Stock options | 0 | 408,656 | 0 | 0 |
Warants | 0 | 0 | ||
Diluted weighted average shares | 122,967,924 | 132,042,067 | 126,643,642 | 133,368,752 |
Diluted | $ (2.17) | $ 0.23 | $ (12.38) | $ (0.55) |
Unvested Restricted Stock And Units That Receive Nonforfeitable Dividends Or Dividend Equivalents That Have Met Service Condition | 300,000 | 900,000 | 300,000 | 900,000 |
Accumulated Other Comprehensi75
Accumulated Other Comprehensive Income (Changes In The Components Of AOCI) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Beginning balance | $ (128) | ||||
Other comprehensive income (loss) before reclassification | [1] | 142 | |||
Amounts reclassified from AOCI | 1 | ||||
Total other comprehensive income (loss) | $ 54 | $ (23) | 143 | $ 96 | |
Ending balance | 15 | 15 | |||
Unrealized gains (losses) on AFS, net [Member] | |||||
Beginning balance | 6 | ||||
Other comprehensive income (loss) before reclassification | 17 | ||||
Amounts reclassified from AOCI | 1 | ||||
Total other comprehensive income (loss) | 18 | ||||
Ending balance | 24 | 24 | |||
Foreign currency translation, net [Member] | |||||
Beginning balance | (134) | ||||
Other comprehensive income (loss) before reclassification | 125 | ||||
Amounts reclassified from AOCI | 0 | ||||
Total other comprehensive income (loss) | 125 | ||||
Ending balance | $ (9) | $ (9) | |||
[1] | Includes items included in the Company's loss calculation to adjust the carrying value of MBIA UK to its fair value less costs to sell for the year ended December 31, 2016. The sale was completed in January of 2017 and as such, these amounts included in AOCI were reversed and included in the Sale Transaction. |
Accumulated Other Comprehensi76
Accumulated Other Comprehensive Income (Details Of The Reclassification From AOCI) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net gains (losses) on financial instruments at fair value and foreign exchange | $ (11) | $ 38 | $ (55) | $ (17) |
Income (loss) before income taxes | (273) | 55 | (603) | (101) |
Provision (benefit) for income taxes | (6) | 24 | 965 | (28) |
Net income (loss) | (267) | 31 | (1,568) | (73) |
Amounts reclassified from AOCI [Member] | ||||
Net income (loss) | (5) | 0 | (1) | (5) |
Unrealized gains (losses) on AFS, net [Member] | Amounts reclassified from AOCI [Member] | ||||
Net gains (losses) on financial instruments at fair value and foreign exchange | 0 | 1 | 6 | (3) |
Other-than-temporary impairments recognized in accumulated other comprehensive income (loss) | (4) | 0 | (6) | 0 |
Net investment income | (1) | 0 | (2) | (4) |
Income (loss) before income taxes | (5) | 1 | (2) | (7) |
Provision (benefit) for income taxes | $ 0 | $ 1 | $ (1) | $ (2) |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Detail) $ in Millions | Sep. 30, 2017USD ($)Lawsuits |
Commitments and Contingencies [Abstract] | |
Other material lawsuits pending | Lawsuits | 0 |
Operating leases future minimum payments due | $ | $ 37 |