Loss and Loss Adjustment Expense Reserves (Tables)

9 Months Ended

Sep. 30, 2014

Schedule Of Losses And Loss Adjustment Expenses


	Nine Months Ended September 30, 2014
	Second-lien		First-lien
In millions	RMBS		RMBS		Other⁽¹⁾		Total
Losses and LAE related to expected payments	$	13	$	43	$	(112)	$	(56)
Recoveries of expected payments		75		(4)		67		138
Gross losses incurred		88		39		(45)		82
Reinsurance		-		-		-		-
Losses and LAE expense (benefit)	$	88	$	39	$	(45)	$	82
________________
(1) - Includes ABS CDOs, CMBS, 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					46		102		6		185		339
Number of issues⁽¹⁾					21		10		5		120		156
Remaining weighted average contract
	period (in years)				8.7		11.4		10.0		8.5		9.0
Gross insured contractual payments
	outstanding:⁽²⁾
		Principal		$	2,648	$	1,735	$	162	$	7,879	$	12,424
		Interest			2,137		957		87		4,089		7,270
			Total	$	4,785	$	2,692	$	249	$	11,968	$	19,694
Gross Claim Liability				$	-	$	-	$	-	$	841	$	841
Less:
	Gross Potential Recoveries				-		-		-		798		798
	Discount, net⁽³⁾				-		-		-		120		120
Net claim liability (recoverable)				$	-	$	-	$	-	$	(77)	$	(77)
Unearned premium revenue				$	86	$	34	$	5	$	88	$	213
__________
(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.
(3) - 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					83		19		5		192		299
Number of issues⁽¹⁾					26		14		4		136		180
Remaining weighted average contract
	period (in years)				11.0		4.9		11.5		9.5		9.7
Gross insured contractual payments
	outstanding:⁽²⁾
		Principal		$	5,290	$	1,073	$	40	$	7,861	$	14,264
		Interest			3,829		253		24		4,526		8,632
			Total	$	9,119	$	1,326	$	64	$	12,387	$	22,896
Gross Claim Liability				$	-	$	-	$	-	$	1,235	$	1,235
Less:
	Gross Potential Recoveries				-		-		-		1,085		1,085
	Discount, net⁽³⁾				-		-		-		205		205
Net claim liability (recoverable)				$	-	$	-	$	-	$	(55)	$	(55)
Unearned premium revenue				$	112	$	19	$	-	$	96	$	227
__________
(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.
(3) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries.

Present Value Of The Probability-Weighted Future Claim Payments And Recoveries

		As of		As of
In millions		September 30, 2014		December 31, 2013
Loss reserves (claim liability)		$	449	$	580
LAE reserves			68		61
	Loss and LAE reserves	$	517	$	641

Insurance claim loss recoverable		$	(568)	$	(694)
LAE insurance loss recoverable			(7)		-
	Insurance loss recoverable	$	(575)	$	(694)

Reinsurance recoverable on unpaid losses		$	6	$	7
Reinsurance recoverable on unpaid LAE reserves			1		1
	Reinsurance recoverable on paid and unpaid losses	$	7	$	8

Schedule Of Company's Second-Lien RMBS Exposure, Gross Undiscounted Claim Liability And Potential Recoveries, Excluding Amounts Related To Consolidated VIE's

Second-lien RMBS Exposure		Outstanding				Gross Undiscounted
		Gross		Gross		Claim		Potential
$ in billions	Issues	Principal		Interest		Liability		Recoveries
Non-consolidated VIEs	24	$	3.1	$	1.0	$	0.1	$	0.6
Consolidated VIEs	11	$	1.5	$	0.5	$	-	$	0.5

Schedule Of Loss And Loss Adjustment Expenses Reserves

In millions

Changes in Loss and LAE Reserves for the Nine Months Ended September 30, 2014

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,

2013

Reserves

Discount

Rates

Assumptions

Revenue

Reserves

Other⁽¹⁾

2014

641

(131)

(48)

(22)

517

____________

(1) - Primarily changes in amount and timing of payments.

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, 2014
				Collections
		As of		for Cases		Accretion		Changes in				Changes in				As of
		December 31,		with		of		Discount		Changes in		LAE				September 30,
In millions		2013		Recoveries		Recoveries		Rates		Assumptions		Recoveries		Other⁽¹⁾		2014
Insurance loss
	recoverable	$	694	$	(84)	$	10	$	10	$	(63)	$	7	$	1	$	575
Recoveries on unpaid
	losses		206		-		3		12		(128)		2		-		95
Total		$	900	$	(84)	$	13	$	22	$	(191)	$	9	$	1	$	670
____________
(1) Primarily changes in amount and timing of collections.

Schedule Of Expenses Related To Remedial Actions For Insured Obligations

	Nine Months Ended September 30,
In millions	2014		2013
Loss adjustment expense incurred, gross	$	37	$	31

- 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.

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