v3.25.2
Loss and Loss Adjustment Expense Reserves (Tables)
 6 Months Ended
Jun. 30, 2025
Text Block [Abstract]  
Present Value Of The Probability-Weighted Future Claim Payments And Recoveries

The Company’s loss and loss adjustment expense ("LAE") reserves and recoveries before consolidated VIE eliminations, along with amounts that were eliminated as a result of consolidating VIEs for the international and structured finance insurance segment, which are included in the Company’s consolidated balance sheets as of June 30, 2025 and December 31, 2024 are presented in the following table:

 

 

 

 

As of June 30, 2025

 

 

As of December 31, 2024

 

In millions

Balance Sheet Line Item

 

 

Balance Sheet Line Item

 

 

 

 

Insurance loss recoverable

 

 

Loss and LAE reserves (1)

 

 

Insurance loss recoverable

 

 

Loss and LAE reserves (1)

 

U.S. Public Finance Insurance

$

164

 

 

$

295

 

 

$

165

 

 

$

299

 

International and Structured Finance Insurance:

 

 

 

 

 

 

 

 

 

 

 

 

Before VIE eliminations

 

25

 

 

 

237

 

 

 

23

 

 

 

238

 

 

VIE eliminations

 

(4

)

 

 

(6

)

 

 

(3

)

 

 

(11

)

 

 

Total international and structured finance insurance

 

21

 

 

 

231

 

 

 

20

 

 

 

227

 

 

Total

$

185

 

 

$

526

 

 

$

185

 

 

$

526

 

 

___________________

(1) - Amounts are net of estimated recoveries of expected future claims.
Schedule Of Loss And Loss Adjustment Expenses Reserves

In millions

 

 

Changes in Loss and LAE Reserves for the Six Months Ended June 30, 2025

 

 

 

 

Gross Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Loss

 

and LAE

 

 

 

 

 

Accretion

 

 

 

 

 

 

 

 

Changes in

 

 

and LAE

 

Reserves as of

 

 

Loss

 

 

of Claim

 

 

Changes in

 

 

 

 

 

Unearned

 

 

Reserves as of

 

December 31,

 

 

and LAE

 

 

Liability

 

 

Discount

 

 

Changes in

 

 

Premium

 

 

June 30,

 

2024

 

 

Payments

 

 

Discount

 

 

Rates

 

 

Assumptions (1)

 

 

Revenue

 

 

2025

 

$

526

 

 

$

(29

)

 

$

11

 

 

$

9

 

 

$

9

 

 

$

-

 

 

$

526

 

___________________

(1) - Includes changes in amount and timing of estimated payments and recoveries.
Schedule Of Insurance Loss Recoverable

 

 

 

 

 

 

 

Changes in Insurance Loss Recoverable

 

 

 

 

 

 

 

 

 

for the Six Months Ended June 30, 2025

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

Recoverable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recoverable

 

 

 

 

 

as of

 

 

 

 

 

Accretion

 

 

Changes in

 

 

 

 

 

as of

 

 

 

 

 

December 31,

 

 

Collections

 

 

of

 

 

Discount

 

 

Changes in

 

 

June 30,

 

In millions

 

 

2024

 

 

for Cases

 

 

Recoveries

 

 

Rates

 

 

Assumptions

 

 

2025

 

Insurance loss recoverable

 

 

$

185

 

 

$

(13

)

 

$

4

 

 

$

2

 

 

$

7

 

 

$

185

 

 

 
Schedule of Financial Guarantees And Related Claim Liability

The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of June 30, 2025:

 

 

 

 

 

 

Surveillance Categories

 

 

 

 

 

 

Caution

 

 

Caution

 

 

Caution

 

 

 

 

 

 

 

 

 

 

 

 

List

 

 

List

 

 

List

 

 

Classified

 

 

 

 

$ in millions

 

Low

 

 

Medium

 

 

High

 

 

List

 

 

Total

 

Number of policies

 

 

27

 

 

 

-

 

 

 

-

 

 

 

88

 

 

 

115

 

Number of issues (1)

 

 

9

 

 

 

-

 

 

 

-

 

 

 

75

 

 

 

84

 

Remaining weighted average contract period (in years)

 

 

3.5

 

 

 

-

 

 

 

-

 

 

 

6.1

 

 

 

5.4

 

Gross insured contractual payments outstanding: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

$

572

 

 

$

-

 

 

$

-

 

 

$

1,457

 

 

$

2,029

 

 

 

Interest

 

 

1,168

 

 

 

-

 

 

 

-

 

 

 

526

 

 

 

1,694

 

 

 

 

Total

 

$

1,740

 

 

$

-

 

 

$

-

 

 

$

1,983

 

 

$

3,723

 

Gross Claim Liability (3)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

872

 

 

$

872

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Potential Recoveries (4)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

441

 

 

 

441

 

 

Discount, net (5)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

99

 

 

 

99

 

Net claim liability (recoverable)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

332

 

 

$

332

 

Unearned premium revenue

 

$

2

 

 

$

-

 

 

$

-

 

 

$

9

 

 

$

11

 

Reinsurance recoverable on paid and unpaid losses (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

16

 

 

(1) - An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt.

(2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.

(3) - The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position.

(4) - Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position.

(5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries.

(6) - Included in "Other assets" on the Company's consolidated balance sheets.

The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of December 31, 2024:

 

 

 

 

 

 

Surveillance Categories

 

 

 

 

 

 

Caution

 

 

Caution

 

 

Caution

 

 

 

 

 

 

 

 

 

 

 

 

List

 

 

List

 

 

List

 

 

Classified

 

 

 

 

$ in millions

 

Low

 

 

Medium

 

 

High

 

 

List

 

 

Total

 

Number of policies

 

 

29

 

 

 

-

 

 

 

-

 

 

 

90

 

 

 

119

 

Number of issues (1)

 

 

10

 

 

 

-

 

 

 

-

 

 

 

76

 

 

 

86

 

 

Remaining weighted average contract period (in years)

 

 

5.7

 

 

 

-

 

 

 

-

 

 

 

6.4

 

 

 

6.2

 

Gross insured contractual payments outstanding: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

$

717

 

 

$

-

 

 

$

-

 

 

$

1,509

 

 

$

2,226

 

 

 

Interest

 

 

1,307

 

 

 

-

 

 

 

-

 

 

 

569

 

 

 

1,876

 

 

 

 

Total

 

$

2,024

 

 

$

-

 

 

$

-

 

 

$

2,078

 

 

$

4,102

 

Gross Claim Liability (3)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

906

 

 

$

906

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Potential Recoveries (4)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

467

 

 

 

467

 

 

Discount, net (5)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

107

 

 

 

107

 

Net claim liability (recoverable)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

332

 

 

$

332

 

Unearned premium revenue

 

$

4

 

 

$

-

 

 

$

-

 

 

$

9

 

 

$

13

 

Reinsurance recoverable on paid and unpaid losses (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

16

 

 

(1) - An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt.

(2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.

(3) - The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position.

(4) - Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position.

(5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries.

(6) - Included in "Other assets" on the Company's consolidated balance sheets.