XML 28 R18.htm IDEA: XBRL DOCUMENT
v3.22.1

Business Segments | 3 Months Ended
--- | ---
Mar. 31, 2022
Text Block [Abstract] |
Business Segments | Note 10: Business Segments As defined by segment reporting, an operating segment is a component of a company (i) that engages in business activities from which it earns revenue and incurs expenses, (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker to assess the performance of the segment and to make decisions about the allocation of resources to the segment and, (iii) for which discrete financial information is available. The Company manages its businesses across three operating segments: 1) U.S. public finance insurance; 2) corporate; and 3) international and structured finance insurance. The Company’s U.S. public finance insurance business is operated through National and its international and structured finance insurance business is operated through MBIA Corp. The following sections provide a description of each of the Company’s reportable operating segments. U.S. Public Finance Insurance The Company’s U.S. public finance insurance portfolio is managed through National. The financial guarantees issued by National provide unconditional and irrevocable guarantees of the payment of the principal of, and interest or other amounts owing on, U.S. public finance insured obligations when due. The obligations are not subject to acceleration, except that National may have the right, at its discretion, to accelerate insured obligations upon default or otherwise. National’s guarantees insure municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utilities, airports, health care institutions, higher educational facilities, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. Municipal bonds and privately issued bonds used for the financing of public purpose projects are generally supported by taxes, assessments, fees or tariffs related to the use of these projects, lease payments or other similar types of revenue streams. Corporate The Company’s corporate segment consists of general corporate activities, including providing support services to MBIA Inc.’s subsidiaries as well as asset and capital management. Support services are provided by the Company’s service company, MBIA Services, and include, among others, management, legal, accounting, treasury, information technology, and insurance portfolio surveillance, on a fee-for-service basis. Capital management includes activities related to servicing obligations issued by MBIA Inc. and its subsidiary, MBIA Global Funding, LLC (“GFL”). MBIA Inc. issued debt to finance the operations of the MBIA group. GFL raised funds through the issuance of MTNs with varying maturities, which were in turn guaranteed by MBIA Corp. GFL lent the proceeds of these MTN issuances to MBIA Inc. MBIA Inc. also provided customized investment agreements, guaranteed by MBIA Corp., for bond proceeds and other public funds for such purposes as construction, loan origination, escrow and debt service or other reserve fund requirements. The Company has ceased issuing new MTNs and investment agreements and the outstanding liability balances and corresponding asset balances have declined over time as liabilities matured, terminated or were called or repurchased. All of the debt within the corporate segment is managed collectively and is serviced by available liquidity. International and Structured Finance Insurance The Company’s international and structured finance insurance segment is principally conducted through MBIA Corp. The financial guarantees issued by MBIA Corp. generally provide unconditional and irrevocable guarantees of the payment of principal of, and interest or other amounts owing on, non-U.S. public finance and global structured finance insured obligations when due, or in the event MBIA Corp. has the right, at its discretion, to accelerate insured obligations upon default or otherwise. MBIA Corp. insures the investment contracts written by MBIA Inc., and if MBIA Inc. were to have insufficient assets to pay amounts due upon maturity or termination, MBIA Corp. would make such payments. MBIA Corp. insures debt obligations of the following affiliates:
| • |  | MBIA Inc.;
| • |  | GFL; and
| • |  | MZ Funding LLC.
Subsequent to March 31, 2022, the debt obligations affiliated with MZ Funding LLC were repaid in full. MBIA Corp. insures non-U.S. public finance and global structured finance obligations, including asset-backed obligations. MBIA Corp. has insured sovereign-related and sub-sovereign bonds, utilities, privately issued bonds used for the financing of projects that include toll roads, bridges, airports, public transportation facilities, and other types of infrastructure projects serving a substantial public purpose. Global structured finance and asset-backed obligations typically are securities repayable from expected cash flows generated by a specified pool of assets, such as residential and commercial mortgages, structured settlements, consumer loans, and corporate loans and bonds. MBIA Corp. has also written policies guaranteeing obligations under certain derivative contracts, including termination payments that may become due upon certain insolvency or payment defaults of the financial guarantor or the issuer. MBIA Corp. has not written any meaningful amount of business since 2008. Segments Results The following tables provide the Company’s segment results for the three months ended March 31, 2022 and 2021:
|  | Three Months Ended March 31, 2022
In millions |  | U.S. Public Finance Insurance |  | Corporate |  | International and Structured Finance Insurance |  | Eliminations |  | Consolidated
Revenues (1) |  | $ | 20 |  |  | $ | 2 |  |  | $ | 5 |  |  | $ | - |  |  | $ | 27 |
Net gains (losses) on financial instruments at fair value and foreign exchange |  |  | (16 | ) |  |  | 39 |  |  |  | (6 | ) |  |  | - |  |  |  | 17 |
Revenues of consolidated VIEs |  |  | - |  |  |  | - |  |  |  | (4 | ) |  |  | - |  |  |  | (4 | )
Inter-segment revenues (2) |  |  | 8 |  |  |  | 17 |  |  |  | 3 |  |  |  | (28 | ) |  |  | - |
Total revenues |  |  | 12 |  |  |  | 58 |  |  |  | (2 | ) |  |  | (28 | ) |  |  | 40 |
Losses and loss adjustment |  |  | 87 |  |  |  | - |  |  |  | (38 | ) |  |  | - |  |  |  | 49 |
Amortization of deferred acquisition costs and operating |  |  | 3 |  |  |  | 15 |  |  |  | 3 |  |  |  | - |  |  |  | 21 |
Interest |  |  | - |  |  |  | 14 |  |  |  | 27 |  |  |  | - |  |  |  | 41 |
Expenses of consolidated VIEs |  |  | - |  |  |  | - |  |  |  | 2 |  |  |  | - |  |  |  | 2 |
Inter-segment expenses (2) |  |  | 13 |  |  |  | 6 |  |  |  | 9 |  |  |  | (28 | ) |  |  | - |
Total expenses |  |  | 103 |  |  |  | 35 |  |  |  | 3 |  |  |  | (28 | ) |  |  | 113 |
Income (loss) before income taxes |  | $ | (91 | ) |  | $ | 23 |  |  | $ | (5 | ) |  | $ | - |  |  | $ | (73 | )
Identifiable assets |  | $ | 3,196 |  |  | $ | 798 |  |  | $ | 1,877 |  |  | $ | (1,428 | ) (3) |  | $ | 4,443 |
(1) - | Consists of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses).
(2) - | Primarily represents intercompany service charges and intercompany net investment income and expenses.
(3) - | Consists principally of intercompany reinsurance balances.
|  | Three Months Ended March 31, 2021
In millions |  | U.S. Public Finance Insurance |  | Corporate |  | International and Structured Finance Insurance |  | Eliminations |  | Consolidated
Revenues (1) |  | $ | 22 |  |  | $ | 5 |  |  | $ | 7 |  |  | $ | - |  |  | $ | 34 |
Net gains (losses) on financial instruments at fair value and foreign exchange |  |  | (2 | ) |  |  | 55 |  |  |  | (1 | ) |  |  | - |  |  |  | 52 |
Revenues of consolidated VIEs |  |  | - |  |  |  | - |  |  |  | (14 | ) |  |  | - |  |  |  | (14 | )
Inter-segment revenues (2) |  |  | 8 |  |  |  | 18 |  |  |  | 4 |  |  |  | (30 | ) |  |  | - |
Total revenues |  |  | 28 |  |  |  | 78 |  |  |  | (4 | ) |  |  | (30 | ) |  |  | 72 |
Losses and loss adjustment |  |  | 109 |  |  |  | - |  |  |  | (11 | ) |  |  | - |  |  |  | 98 |
Amortization of deferred acquisition costs and operating |  |  | 4 |  |  |  | 21 |  |  |  | 3 |  |  |  | - |  |  |  | 28 |
Interest |  |  | - |  |  |  | 14 |  |  |  | 27 |  |  |  | - |  |  |  | 41 |
Expenses of consolidated VIEs |  |  | - |  |  |  | - |  |  |  | 11 |  |  |  | - |  |  |  | 11 |
Inter-segment expenses (2) |  |  | 14 |  |  |  | 6 |  |  |  | 10 |  |  |  | (30 | ) |  |  | - |
Total expenses |  |  | 127 |  |  |  | 41 |  |  |  | 40 |  |  |  | (30 | ) |  |  | 178 |
Income (loss) before income taxes |  | $ | (99 | ) |  | $ | 37 |  |  | $ | (44 | ) |  | $ | - |  |  | $ | (106 | )
(1) - | Consists of net premiums earned, net investment income, net realized investment gains (losses) and fees and reimbursements.
(2) - | Primarily represents intercompany service charges and intercompany net investment income and expense.

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_TextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration