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Insurance Premiums | 12 Months Ended
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Dec. 31, 2021
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Insurance Premiums | Note 5: Insurance Premiums The Company recognizes and measures premiums related to financial guarantee (non-derivative) insurance and reinsurance contracts in accordance with the accounting principles for financial guarantee insurance contracts. As of December 31, 2021 and 2020, the Company had an allowance for credit losses on premium receivables of $5 million. Refer to “Note 2: Significant Accounting Policies” for further information regarding the accounting related to credit losses on premium receivables. As of December 31, 2021 and 2020, the weighted average risk-free rates used to discount future installment premiums were 2.8% and 2.7%, respectively, and the weighted average expected collection term of the premiums receivable was 9.09 years and 8.75 years, respectively. As of December 31, 2021 and 2020, reinsurance premiums payable was $5 million and $15 million, respectively, and is included in “Other liabilities” in the Company’s consolidated balance sheets. The decline in reinsurance premiums payable from the prior year relates to the termination of an international public finance credit. The reinsurance premiums payable is accreted and paid to reinsurers as premiums due to MBIA are accreted and collected. The following tables present a roll forward of the Company’s premiums receivable for the years ended December 31, 2021 and 2020.
In millions |  |  |  |  |  |  |  | Adjustments |  |  |  |
Premiums Receivable as of December 31, 2020 |  | Premium Payments Received |  |  | Premiums from New Business Written |  |  | Changes in Expected Term of Policies |  |  | Accretion of Premiums Receivable Discount (1) |  |  | Other (2) |  |  | Premiums Receivable as of December 31, 2021 |
$ 216 |  | $ | (44) |  |  | $ | — |  |  | $ | 7 |  |  | $ | 5 |  |  | $ | (6) |  |  | $ | 178 |
(1)—Recorded within premiums earned on MBIA’s consolidated statement of operations. (2)—The change primarily relates to a foreign exchange loss due to the termination of an international public finance credit.
In millions |  |  |  |  |  |  |  | Adjustments |  |  |  |
Premiums Receivable as of December 31, 2019 |  | Premium Payments Received |  |  | Premiums from New Business Written |  |  | Changes in Expected Term of Policies |  |  | Accretion of Premiums Receivable Discount (1) |  |  | Other (2) |  |  | Premiums Receivable as of December 31, 2020 |
$ 249 |  | $ | (30) |  |  | $ | — |  |  | $ | (1) |  |  | $ | 6 |  |  | $ | (8) |  |  | $ | 216 |
(1)—Recorded within premiums earned on MBIA’s consolidated statement of operations. (2)—The change primarily relates to a reduction in installment premiums due to refunding activity and the recording of an allowance for credit losses under Financial Instruments-Credit Losses, partially offset by changes in foreign exchange currency rates. The following table presents the undiscounted future amount of premiums expected to be collected and the period in which those collections are expected to occur:
In millions |  | Expected Collection of Premiums |
Three months ending: |  |  |  |
March 31, 2022 |  | $ | 3 |
June 30, 2022 |  |  | 6 |
September 30, 2022 |  |  | 4 |
December 31, 2022 |  |  | 7 |
Twelve months ending: |  |  |  |
December 31, 2023 |  |  | 18 |
December 31, 2024 |  |  | 17 |
December 31, 2025 |  |  | 16 |
December 31, 2026 |  |  | 14 |
Five years ending: |  |  |  |
December 31, 2031 |  |  | 57 |
December 31, 2036 |  |  | 42 |
December 31, 2041 and thereafter |  |  | 47 |
Total |  | $ | 231 |
The following table presents the unearned premium revenue balance and future expected premium earnings as of and for the periods presented:
In millions |  | Unearned Premium Revenue |  |  | Expected Future Premium Earnings |  |  | Accretion |  |  | Total Expected Future Premium Earnings |
| Upfront |  |  | Installments |
December 31, 2021 |  | $ | 322 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three months ending: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
March 31, 2022 |  |  | 312 |  |  | $ | 5 |  |  | $ | 5 |  |  | $ | 1 |  |  | $ | 11 |
June 30, 2022 |  |  | 302 |  |  |  | 5 |  |  |  | 5 |  |  |  | 1 |  |  |  | 11 |
September 30, 2022 |  |  | 293 |  |  |  | 5 |  |  |  | 4 |  |  |  | 2 |  |  |  | 11 |
December 31, 2022 |  |  | 284 |  |  |  | 5 |  |  |  | 4 |  |  |  | 1 |  |  |  | 10 |
Twelve months ending: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2023 |  |  | 250 |  |  |  | 18 |  |  |  | 16 |  |  |  | 4 |  |  |  | 38 |
December 31, 2024 |  |  | 219 |  |  |  | 16 |  |  |  | 15 |  |  |  | 4 |  |  |  | 35 |
December 31, 2025 |  |  | 192 |  |  |  | 14 |  |  |  | 13 |  |  |  | 4 |  |  |  | 31 |
December 31, 2026 |  |  | 168 |  |  |  | 13 |  |  |  | 11 |  |  |  | 3 |  |  |  | 27 |
Five years ending: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2031 |  |  | 87 |  |  |  | 41 |  |  |  | 40 |  |  |  | 14 |  |  |  | 95 |
December 31, 2036 |  |  | 41 |  |  |  | 18 |  |  |  | 28 |  |  |  | 8 |  |  |  | 54 |
December 31, 2041 and thereafter |  |  | — |  |  |  | 12 |  |  |  | 29 |  |  |  | 7 |  |  |  | 48 |
Total |  |  |  |  |  | $ | 152 |  |  | $ | 170 |  |  | $ | 49 |  |  | $ | 371 |

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- Definition The entire disclosure for financial guarantee insurance contracts (as defined) issued by the entity. Such disclosure is intended to enable users of the financial information to understand the factors affecting the present and future recognition and measurement of the entity's financial guarantee insurance contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -URI http://asc.fasb.org/topic&trid=2303980 + Details
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- References No definition available. + Details
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