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Loss And Loss Adjustment Expense Reserves (Tables) | 6 Months Ended
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Jun. 30, 2011
Loss And Loss Adjustment Expense Reserves |
Schedule Of Economic Loss Activity |
Aggregate Losses and LAE (change in expected net payments) In millions |  | Six Months Ended June 30, 2011 |
| RMBS |  |  | Non-RMBS |  |  | Total |
Financial guarantee insurance losses and LAE (1) |  | $ | (50 | ) |  | $ | 64 |  |  | $ | 14 |
Financial guarantee insurance losses and LAE related to consolidated VIEs (eliminated in consolidation) (2) |  |  | (39 | ) |  |  | 51 |  |  |  | 12 |
Insured credit derivative impairments and LAE (statutory basis) (3) |  |  | - |  |  |  | (34 | ) |  |  | (34 | )
Total aggregate losses and LAE |  | $ | (89 | ) |  | $ | 81 |  |  | $ | (8 | )
(1) - Represents "Losses and loss adjustment expense" as reported on the Company's consolidated statement of operations. (2) - Represents losses and LAE eliminated upon the consolidation of insured VIEs. (3) - Represents statutory losses and LAE for insurance contracts accounted for as derivatives. Realized and unrealized gains and losses on these contracts under U.S. GAAP are recorded in "Net change in fair value of insured derivatives" on the Company's consolidated statement of operations.
Aggregate Loss and LAE Reserves |  |  |  |  |  |
In millions |  | As of June 30, 2011 |  |  | As of December 31, 2010 |
Financial guarantee insurance (1) |  | $ | 865 |  |  | $ | 1,129 |
Financial guarantee insurance reserves related to consolidated VIEs (eliminated in consolidation) (2) |  |  | 352 |  |  |  | 377 |
Insured credit derivative impairments and LAE (statutory basis) (3) |  |  | 2,047 |  |  |  | 2,490 |
Reinsurance |  |  | (16) |  |  |  | (15) |
Total aggregate loss and LAE reserves |  | $ | 3,248 |  |  | $ | 3,981 |
(1) - Represents "Loss and loss adjustment expense reserves" as reported on the Company's consolidated balance sheets. (2) - Represents loss and LAE reserves eliminated upon the consolidation of insured VIEs. (3) - Represents statutory loss and LAE reserves for insurance contracts accounted for as derivatives under U.S. GAAP. The fair values of these contracts are recorded in "Derivative liabilities" on the Company's consolidated balance sheets. |
Aggregate Insurance Loss Recoverable |  |  |  |  |  |
In millions |  | As of June 30, 2011 |  |  | As of December 31, 2010 |
Financial guarantee insurance (1) |  | $ | 2,658 |  |  | $ | 2,531 |
Financial guarantee insurance reserves related to consolidated VIEs (eliminated in consolidation) (2) |  |  | 1,159 |  |  |  | 1,061 |
Insured credit derivative impairments and LAE (statutory basis) (3) |  |  | 66 |  |  |  | 74 |
Reinsurance |  |  | (8) |  |  |  | (4) |
Total aggregate insurance loss recoverable |  | $ | 3,875 |  |  | $ | 3,662 |
(1) - Represents "Insurance loss recoverable" as reported on the Company's consolidated balance sheets. (2) - Represents insurance loss recoverable eliminated upon the consolidation of insured VIEs. (3) - Represents statutory recoveries for insurance contracts accounted for as derivatives under U.S. GAAP. The fair values of these contracts are recorded in "Derivative liabilities" on the Company's consolidated balance sheets.
Schedule Of Losses And Loss Adjustment Expenses |
Losses and LAE |  | Six Months Ended June 30, 2011 |
In millions |  | RMBS |  |  | Non-RMBS |  |  | Total |
Losses and LAE related to actual and expected payments |  | $ | 16 |  |  | $ | (54) |  |  | $ | (38) |
Recoveries of actual and expected payments |  |  | (66) |  |  |  | 120 |  |  |  | 54 |
Gross losses incurred |  |  | (50) |  |  |  | 66 |  |  |  | 16 |
Reinsurance |  |  | 0 |  |  |  | (2) |  |  |  | (2) |
Losses and LAE |  | $ | (50) |  |  | $ | 64 |  |  | $ | 14 |
Schedule Of Financial Guarantees And Related Claim Liability |
|  | Surveillance Categories |
$ in millions |  | Caution List Low |  |  | Caution List Medium |  |  | Caution List High |  |  | Classified List |  |  | Total |
Number of policies |  |  | 50 |  |  |  | 43 |  |  |  | 10 |  |  |  | 189 |  |  |  | 292 |
Number of issues(1) |  |  | 34 |  |  |  | 27 |  |  |  | 5 |  |  |  | 123 |  |  |  | 189 |
Remaining weighted average contract period (in years) |  |  | 9.0 |  |  |  | 5.3 |  |  |  | 7.7 |  |  |  | 9.5 |  |  |  | 8.9 |
Gross insured contractual payments outstanding(2): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Principal |  | $ | 4,247 |  |  | $ | 1,861 |  |  | $ | 206 |  |  | $ | 10,658 |  |  | $ | 16,972 |
Interest |  |  | 2,776 |  |  |  | 559 |  |  |  | 67 |  |  |  | 5,959 |  |  |  | 9,361 |
Total |  | $ | 7,023 |  |  | $ | 2,420 |  |  | $ | 273 |  |  | $ | 16,617 |  |  | $ | 26,333 |
Gross claim liability |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 2,039 |  |  | $ | 2,039 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross potential recoveries |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3,663 |  |  |  | 3,663 |
Discount, net |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 158 |  |  |  | 158 |
Net claim liability (recoverable) |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | (1,782) |  |  | $ | (1,782) |
Unearned premium revenue |  | $ | 154 |  |  | $ | 17 |  |  | $ | 2 |  |  | $ | 137 |  |  | $ | 310 |
(1) - An "issue" represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments. (2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.
|  | Surveillance Categories |
$ in millions |  | Caution List Low |  |  | Caution List Medium |  |  | Caution List High |  |  | Classified List |  |  | Total |
Number of policies |  |  | 199 |  |  |  | 43 |  |  |  | 12 |  |  |  | 179 |  |  |  | 433 |
Number of issues(1) |  |  | 40 |  |  |  | 26 |  |  |  | 12 |  |  |  | 110 |  |  |  | 188 |
Remaining weighted average contract period (in years) |  |  | 9.4 |  |  |  | 6.9 |  |  |  | 9.1 |  |  |  | 9.4 |  |  |  | 9.2 |
Gross insured contractual payments outstanding(2): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Principal |  | $ | 5,041 |  |  | $ | 1,419 |  |  | $ | 1,446 |  |  | $ | 11,190 |  |  | $ | 19,096 |
Interest |  |  | 3,439 |  |  |  | 536 |  |  |  | 746 |  |  |  | 6,132 |  |  |  | 10,853 |
Total |  | $ | 8,480 |  |  | $ | 1,955 |  |  | $ | 2,192 |  |  | $ | 17,322 |  |  | $ | 29,949 |
Gross claim liability |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 2,692 |  |  | $ | 2,692 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross potential recoveries |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,045 |  |  |  | 4,045 |
Discount, net |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 27 |  |  |  | 27 |
Net claim liability (recoverable) |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | (1,380) |  |  | $ | (1,380) |
Unearned premium revenue |  | $ | 148 |  |  | $ | 16 |  |  | $ | 72 |  |  | $ | 141 |  |  | $ | 377 |
(1) - An "issue" represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments. (2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.
Schedule Of Company's RMBS Exposure Gross Undiscounted Claim Liability And Potential Recoveries Before The Elimination Of Amounts Related To Consolidated VIE's |
RMBS Exposure |  |  |  |  | Outstanding |  |  | Gross Undiscounted |
|  |  |  |  | Gross |  |  | Gross |  |  | Claim |  |  | Potential |
$ in billions |  | Issues |  |  | Principal |  |  | Interest |  |  | Liability |  |  | Recoveries |
Insured issues designated as "Classified List" |  |  | 47 |  |  | $ | 9.4 |  |  | $ | 4.0 |  |  | $ | 1.1 |  |  | $ | 4.3 |
Loan files reviewed with recognized recoveries |  |  | 28 |  |  | $ | 8.2 |  |  | $ | 3.3 |  |  | $ | 0.8 |  |  | $ | 4.3 |
Schedule Of Insurance Loss Reserves And Recoverables For Insured Obligations |
In millions |  | As of June 30, 2011 |  |  | As of December 31, 2010 |
Loss reserves (claim liability) |  | $ | 795 |  |  | $ | 1,059 |
LAE reserves |  |  | 70 |  |  |  | 70 |
Loss and LAE reserves |  | $ | 865 |  |  | $ | 1,129 |
Insurance claim loss recoverable |  | $ | (2,655) |  |  | $ | (2,531) |
LAE insurance loss recoverable |  |  | (3) |  |  |  | - |
Insurance loss recoverable |  | $ | (2,658) |  |  | $ | (2,531) |
Reinsurance recoverable on unpaid losses |  | $ | 16 |  |  | $ | 14 |
Reinsurance recoverable on LAE reserves |  |  | 0 |  |  |  | 1 |
Reinsurance recoverable on paid losses |  |  | 4 |  |  |  | - |
Reinsurance recoverable on paid and unpaid losses |  | $ | 20 |  |  | $ | 15 |
Schedule Of Loss And Loss Adjustment Expenses Reserve |
In millions |  |  | Changes in Loss and LAE Reserves for the Six Months Ended June 30, 2011 |  |  | Gross Loss and LAE Reserve as of June 30, 2011 |
Gross Loss and LAE Reserve as of December 31, 2010 |  |  | Loss Payments for Cases with Reserves |  |  | Accretion of Claim Liability Discount |  |  | Changes in Discount Rates |  |  | Changes in Timing of Payments |  |  | Changes in Amount of Net Payments |  |  | Changes in Assumptions |  |  | Changes in Unearned Premium Revenue |  |  | Change in LAE Reserves |  |
$ | 1,129 |  |  | $ | (324 | ) |  | $ | 9 |  |  | $ | (47 | ) |  | $ | 20 |  |  | $ | (1 | ) |  | $ | 64 |  |  | $ | 16 |  |  | $ | (1 | ) |  | $ | 865 |
Schedule Of Insurance Loss Recoverable And Changes In Recoveries On Unpaid Losses |
|  | Changes in Insurance Loss Recoverable and Recoveries on Unpaid Losses for the Six Months Ended June 30, 2011 |
In millions |  | Gross Reserve as of December 31, 2010 |  |  | Collections for Cases with Recoveries |  |  | Accretion of Recoveries |  |  | Changes in Discount Rates |  |  | Changes in Timing of Collections |  |  | Changes in Amount of Collections |  |  | Changes in Assumptions |  |  | Change in LAE Recoveries |  |  | Gross Reserve as of June 30, 2011 |
Insurance Loss Recoverable |  | $ | 2,531 |  |  | $ | (3) |  |  | $ | 34 |  |  | $ | 20 |  |  | $ | - |  |  | $ | (116) |  |  | $ | 190 |  |  | $ | 2 |  |  | $ | 2,658 |
Recoveries on Unpaid Losses |  |  | 896 |  |  |  | - |  |  |  | 10 |  |  |  | 2 |  |  |  | - |  |  |  | - |  |  |  | (212) |  |  |  | 5 |  |  |  | 701 |
Total |  | $ | 3,427 |  |  | $ | (3) |  |  | $ | 44 |  |  | $ | 22 |  |  | $ | - |  |  | $ | (116) |  |  | $ | (22) |  |  | $ | 7 |  |  | $ | 3,359 |
Schedule Of Total Estimated Recoveries From Ineligible Mortgage Loans |
In millions |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Estimated Recoveries from Ineligible Loans as of December 31, 2010 |  |  | Accretion of Future Collections |  |  | Changes in Discount Rates |  |  | Recoveries (Collections) |  |  | Changes in Assumptions |  |  | Total Estimated Recoveries from Ineligible Loans as of June 30, 2011 |
$ | 2,517 |  |  | $ | 38 |  |  | $ | 12 |  |  | $ | - |  |  | $ | 174 |  |  | $ | 2,741 |
Schedule Of Expenses Related To Remedial Actions For Insured Obligations |
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
In millions |  | 2011 |  |  | 2010 |  |  | 2011 |  |  | 2010 |
Loss adjustment expense incurred, gross |  | $ | 30 |  |  | $ | 2 |  |  | $ | 45 |  |  | $ | 16 |
Loss adjustment expense incurred, net |  | $ | 30 |  |  | $ | 3 |  |  | $ | 45 |  |  | $ | 15 |

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- Definition Tabular disclosure of insured financial obligations with credit deterioration related to the claim liability on financial guarantee insurance contracts as of the end of each annual and interim reporting period detailing, at a minimum, the following for each surveillance category or grouping used to track and monitor the entity's insured financial obligations: (1) number of issued and outstanding financial guarantee insurance contracts; (2) remaining weighted average contract period; (3) insured contractual payments outstanding, segregating principal and interest; (4) gross claim liability; (5) gross potential recoveries; (6) net discount of both the claim liability and potential recoveries; (7) net claim liability; (8) reinsurance recoverable; and (9) unearned premium revenue. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 163 -Section Appendix A -Paragraph A13 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Number 163 -Paragraph 31 -Name Statement of Financial Accounting Standard (FAS) -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 55 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6933462&loc=SL5751140-161288 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 9 -Subparagraph (a)(5), (b)(1) -URI http://asc.fasb.org/extlink&oid=6933314&loc=SL5749324-161292 + Details
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