v3.26.1
Loss and Loss Adjustment Expense Reserves (Tables)
 3 Months Ended
Mar. 31, 2026
Text Block [Abstract]  
Present Value Of The Probability-Weighted Future Claim Payments And Recoveries

The following table summarizes 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:

 

 

 

 

As of March 31, 2026

 

 

As of December 31, 2025

 

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

$

25

 

 

$

208

 

 

$

22

 

 

$

219

 

International and Structured Finance Insurance:

 

 

 

 

 

 

 

 

 

 

 

 

Before VIE eliminations

 

22

 

 

 

223

 

 

 

21

 

 

 

229

 

 

VIE eliminations

 

-

 

 

 

6

 

 

 

-

 

 

 

6

 

 

 

Total international and structured finance insurance

 

22

 

 

 

229

 

 

 

21

 

 

 

235

 

 

Total

$

47

 

 

$

437

 

 

$

43

 

 

$

454

 

 

___________________

(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 Three Months Ended March 31, 2026

 

 

 

 

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

 

 

March 31,

 

2025

 

 

Payments

 

 

Discount

 

 

Rates

 

 

Assumptions (1)

 

 

Revenue

 

 

2026

 

$

454

 

 

$

(21

)

 

$

4

 

 

$

(7

)

 

$

6

 

 

$

1

 

 

$

437

 

___________________

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

 

 

 

 

 

 

 

Changes in Insurance Loss Recoverable

 

 

 

 

 

 

 

 

 

for the Three Months Ended March 31, 2026

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

Recoverable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recoverable

 

 

 

 

 

as of

 

 

 

 

 

Accretion

 

 

Changes in

 

 

 

 

 

as of

 

 

 

 

 

December 31,

 

 

Collections

 

 

of

 

 

Discount

 

 

Changes in

 

 

March 31,

 

In millions

 

 

2025

 

 

for Cases

 

 

Recoveries

 

 

Rates

 

 

Assumptions

 

 

2026

 

Insurance loss recoverable

 

 

$

43

 

 

$

(3

)

 

$

-

 

 

$

(1

)

 

$

8

 

 

$

47

 

 

 
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 March 31, 2026:

 

 

 

 

 

Surveillance Categories

 

 

 

 

 

 

Caution

 

 

Caution

 

 

Caution

 

 

 

 

 

 

 

 

 

 

 

 

List

 

 

List

 

 

List

 

 

Classified

 

 

 

 

$ in millions

 

Low

 

 

Medium

 

 

High

 

 

List

 

 

Total

 

Number of policies

 

 

20

 

 

 

-

 

 

 

-

 

 

 

87

 

 

 

107

 

Number of issues (1)

 

 

7

 

 

 

-

 

 

 

-

 

 

 

76

 

 

 

83

 

Remaining weighted average contract period (in years)

 

 

3.3

 

 

 

-

 

 

 

-

 

 

 

6.0

 

 

 

5.4

 

Gross insured contractual payments outstanding: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

$

348

 

 

$

-

 

 

$

-

 

 

$

1,308

 

 

$

1,656

 

 

 

Interest

 

 

1,028

 

 

 

-

 

 

 

-

 

 

 

453

 

 

 

1,481

 

 

 

 

Total

 

$

1,376

 

 

$

-

 

 

$

-

 

 

$

1,761

 

 

$

3,137

 

Gross Claim Liability (3)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

762

 

 

$

762

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Potential Recoveries (4)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

279

 

 

 

279

 

 

Discount, net (5)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

100

 

 

 

100

 

Net claim liability (recoverable)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

383

 

 

$

383

 

Unearned premium revenue

 

$

-

 

 

$

-

 

 

$

-

 

 

$

7

 

 

$

7

 

Reinsurance recoverable on paid and unpaid losses (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

15

 

 

(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 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.

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

 

Note 5: Loss and Loss Adjustment Expense Reserves (continued)

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, 2025:

 

 

 

 

 

Surveillance Categories

 

 

 

 

 

 

Caution

 

 

Caution

 

 

Caution

 

 

 

 

 

 

 

 

 

 

 

 

List

 

 

List

 

 

List

 

 

Classified

 

 

 

 

$ in millions

 

Low

 

 

Medium

 

 

High

 

 

List

 

 

Total

 

Number of policies

 

 

20

 

 

 

-

 

 

 

-

 

 

 

87

 

 

 

107

 

Number of issues (1)

 

 

7

 

 

 

-

 

 

 

-

 

 

 

76

 

 

 

83

 

Remaining weighted average contract period (in years)

 

 

3.5

 

 

 

-

 

 

 

-

 

 

 

6.1

 

 

 

5.6

 

Gross insured contractual payments outstanding: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

$

356

 

 

$

-

 

 

$

-

 

 

$

1,329

 

 

$

1,685

 

 

 

Interest

 

 

1,054

 

 

 

-

 

 

 

-

 

 

 

478

 

 

 

1,532

 

 

 

 

Total

 

$

1,410

 

 

$

-

 

 

$

-

 

 

$

1,807

 

 

$

3,217

 

Gross Claim Liability (3)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

786

 

 

$

786

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Potential Recoveries (4)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

281

 

 

 

281

 

 

Discount, net (5)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

101

 

 

 

101

 

Net claim liability (recoverable)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

404

 

 

$

404

 

Unearned premium revenue

 

$

1

 

 

$

-

 

 

$

-

 

 

$

8

 

 

$

9

 

Reinsurance recoverable on paid and unpaid losses (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

14

 

 

(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 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.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)