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Schedule II- Parent Company Financials

12 Months Ended

Dec. 31, 2024

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure

SCHEDULE II

MBIA INC. (PARENT COMPANY)

CONDENSED BALANCE SHEETS

(In millions except share and per share amounts)


				December 31, 2024				December 31, 2023
Assets
Investments:
	Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $120 and $131)			$	114			$	127
	Short-term investments held as available-for-sale, at fair value (amortized cost $445 and $480)				445				480
		Total investments			559				607
Cash and cash equivalents					32				33
Other assets					1				26
		Total assets		$	592			$	666
Liabilities and Shareholders' Equity
Liabilities:
	Investment agreements			$	204			$	221
	Long-term debt				278				278
	Affiliate loans payable				478				533
	Accumulated loss of wholly-owned subsidiaries				1,721				1,290
	Other liabilities				-				1
		Total liabilities			2,681				2,323
Shareholders' Equity:
	Preferred stock, par value $1 per share; authorized shares--10,000,000; issued and outstanding--none				-				-
	Common stock, par value $1 per share; authorized shares--400,000,000; issued shares--283,186,115 and 283,186,115				283				283
	Additional paid-in capital				2,492				2,515
	Retained earnings (deficit)				(1,591	)			(1,144	)
	Accumulated other comprehensive income (loss), net of tax				(128	)			(139	)
	Treasury stock, at cost--232,215,934 and 232,323,184 shares				(3,145	)			(3,172	)
		Total shareholders' equity of MBIA Inc.			(2,089	)			(1,657	)
		Total liabilities and shareholders' equity		$	592			$	666

The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the accompanying notes.

SCHEDULE II

MBIA INC. (PARENT COMPANY)

CONDENSED STATEMENTS OF OPERATIONS

(In millions)


					Years ended December 31,
					2024				2023				2022
Revenues:
	Net investment income				$	27			$	21			$	20
	Net realized investment gains (losses)					-				(32	)			(10	)
	Net gains (losses) on financial instruments at fair value and foreign exchange					8				4				110
	Other net realized gains (losses)					2				1				5
			Total revenues			37				(6	)			125
Expenses:
	Operating					13				15				11
	Interest					72				76				76
			Total expenses			85				91				87
	Gain (loss) before income taxes and equity in earnings of subsidiaries					(48	)			(97	)			38
Provision (benefit) for income taxes						(2	)			(1	)			(3	)
	Gain (loss) before equity in earnings of subsidiaries					(46	)			(96	)			41
Equity in net income (loss) of subsidiaries						(401	)			(395	)			(236	)
			Net income (loss)		$	(447	)		$	(491	)		$	(195	)

The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the accompanying notes.

SCHEDULE II

MBIA INC. (PARENT COMPANY)

CONDENSED STATEMENTS OF CASH FLOWS

(in millions)


					Years ended December 31,
					2024				2023				2022
Cash flows from operating activities:
	Investment income received				$	7			$	369			$	89
	Operating expenses paid and other operating					(9	)			(16	)			(25	)
	Interest paid, net of interest converted to principal					(68	)			(72	)			(51	)
	Income taxes (paid) received					2				1				(1	)
			Net cash provided (used) by operating activities			(68	)			282				12
Cash flows from investing activities:
	Purchases of available-for-sale investments					(27	)			(67	)			(86	)
	Sales of available-for-sale investments					-				289				149
	Paydowns and maturities of available-for-sale investments					51				65				18
	Sales, paydowns and maturities (purchases) of short-term investments, net					54				(380	)			(41	)
	(Payments) proceeds for derivative settlements					(1	)			(38	)			(10	)
	Return of capital from subsidiaries, net					53				295				74
			Net cash provided (used) by investing activities			130				164				104
Cash flows from financing activities:
	Proceeds from investment agreements					-				7				8
	Principal paydowns of investment agreements					(5	)			(12	)			(54	)
	Dividends paid					-				(409	)			-
	Principal paydowns of long-term debt					(1	)			-				-
	Payments for affiliate loans					(62	)			(15	)			(74	)
	Purchases of treasury stock					-				(6	)			-
	Restricted stock awards settlements					5				6				6
			Net cash provided (used) by financing activities			(63	)			(429	)			(114	)
Effect of exchange rates on cash and cash equivalents						-				-				(1	)
Net increase (decrease) in cash and cash equivalents						(1	)			17				1
Cash and cash equivalents - beginning of year						33				16				15
Cash and cash equivalents - end of year					$	32			$	33			$	16
Reconciliation of net income (loss) to net cash provided (used) by operating activities:
	Net income (loss)				$	(447	)		$	(491	)		$	(195	)
	Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
		Change in:
			Intercompany accounts receivable			-				(20	)			(25	)
		Equity in earnings of subsidiaries				401				395				235
		Dividends from subsidiaries				-				352				72
		Net realized investment gains (losses)				-				32				10
		Net (gains) losses on financial instruments at fair value and foreign exchange				(8	)			(4	)			(110	)
		Other net realized (gains) losses				(2	)			(1	)			(5	)
		Other operating				(12	)			19				30
		Total adjustments to net income (loss)				379				773				207
			Net cash provided (used) by operating activities		$	(68	)		$	282			$	12

The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the accompanying notes.

SCHEDULE II

MBIA INC. (PARENT COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

1. Condensed Financial Statements

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. This includes the statements of comprehensive income (loss) which is exactly the same as the Company’s consolidated statements of comprehensive income (loss). It is suggested that these condensed financial statements be read in conjunction with the Company’s consolidated financial statements and the notes thereto.

The activities of MBIA Inc. (the “Parent Company”) consist of general corporate activities and funding activities, which principally include holding and managing investments, servicing outstanding corporate debt, investment agreements issued by the Parent Company and its subsidiaries, and posting collateral under investment agreement and derivative contracts.

The Parent Company is subject to the same liquidity risks and uncertainties as described in footnote 1 to the Company’s consolidated financial statements. As of December 31, 2024, the liquidity position of the Parent Company, which included cash and cash equivalents or short-term investments comprised of highly rated commercial paper, money market funds and municipal, U.S. agency and corporate bonds for general corporate purposes, excluding the amount held in escrow under its tax sharing agreement, was $380 million.

During 2024, the Parent Company repurchased $10 million and $1 million principal amounts of the Parent Company 7.000% Debentures due 2025 from National and MBIA Corp., respectively, and $5 million principal amount of the Parent Company 7.150% Debentures due 2027 from MBIA Corp. As of December 31, 2024, National owned $308 million principal amount of the Parent Company 5.700% Senior Notes due 2034 and MBIA Corp. owned $29 million principal amount of the Parent Company 6.625% Debentures due 2028; and the Parent Company owned $13 million of MBIA Corp. surplus notes.

2. Accounting Policies

The Parent Company carries its investments in subsidiaries under the equity method.

For a further discussion of significant accounting policies and recent accounting pronouncements, refer to footnotes 2 and 3 to the Company’s consolidated financial statements.

3. Dividends from Subsidiaries

During 2024, National declared and paid dividends of $69 million to its ultimate parent, MBIA Inc. The Parent Company accounted for the dividend as a return of investment.

During 2023, National declared and paid a special dividend of $550 million and an as-of-right dividend of $97 million to its ultimate parent, MBIA Inc.

During 2022, National declared and paid dividends of $72 million to its ultimate parent, MBIA Inc.

4. Deferred Tax Asset, Net of Valuation Allowance

The Parent Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on tax assets and liabilities is recognized in income in the period that includes the enactment date. Valuation allowances are established to reduce deferred tax assets to the amount that more likely than not will be realized. For a further discussion of the net deferred tax asset, refer to footnote 10 to the Company’s consolidated financial statements.

SCHEDULE II

MBIA INC. (PARENT COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS (continued)

5. Obligations under Investment Agreements

Refer to footnote 9 to the Company’s consolidated financial statements for information of investment agreements.

6. Pledged Collateral

Substantially all of the obligations under investment agreements require the Parent Company and its subsidiaries to pledge securities as collateral. As of December 31, 2024 and 2023, the fair value of securities pledged as collateral with respect to these investment agreements approximated $213 million and $241 million, respectively. The Parent Company’s collateral as of December 31, 2024, consisted principally of U.S. Treasury and government agency and state and municipal bonds, and was primarily held with major U.S. banks.

7. Affiliate Loans Payable

Affiliate loans payable consists of loans payable to MBIA Global Funding, LLC (“GFL”). GFL raised funds through the issuance of medium-term notes with varying maturities, which were, in turn, guaranteed by MBIA Corp. GFL lent the proceeds of these medium-term note issuances to the Parent Company.

8. Extraordinary Cash Dividend

On December 7, 2023, the Company's Board of Directors declared an extraordinary cash dividend on MBIA’s common stock of $8.00 per share. The dividend was paid on December 22, 2023 to shareholders of record as of the close of business on December 18, 2023.