MBIA INC, 10-K filed on 2/26/2026
Annual Report
v3.25.4
Cover Page - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Feb. 19, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Entity Central Index Key 0000814585    
Current Fiscal Year End Date --12-31    
Document Annual Report true    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Document Transition Report false    
Document Period End Date Dec. 31, 2025    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Trading Symbol MBI    
Entity Registrant Name MBIA INC.    
Entity Filer Category Accelerated Filer    
Entity Emerging Growth Company false    
Entity Small Business false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 196.0
Entity Common Stock, Shares Outstanding   50,511,149  
Title of 12(b) Security Common Stock    
Security Exchange Name NYSE    
Entity File Number 001-09583    
Entity Tax Identification Number 06-1185706    
Entity Address, Address Line One 1 Manhattanville Road, Suite 202    
Entity Address, City or Town Purchase    
Entity Address, State or Province NY    
Entity Address, Postal Zip Code 10577    
Entity Incorporation, State or Country Code CT    
City Area Code 914    
Local Phone Number 273-4545    
Document Financial Statement Error Correction [Flag] false    
Documents Incorporated by Reference [Text Block]

Documents incorporated by reference:

Portions of the Registrant’s Definitive Proxy Statement for its Annual Shareholders Meeting to be held in May of 2026 are incorporated by reference into Part III of this Form 10-K.

   
Auditor Name PricewaterhouseCoopers LLP    
Auditor Firm ID 238    
Auditor Location New York    
Auditor Opinion [Text Block]

Opinions on the Financial Statements and Internal Control over Financial Reporting

 

We have audited the accompanying consolidated balance sheets of MBIA Inc. and its subsidiaries (the “Company”) as of December 31, 2025 and 2024 and the related consolidated statements of operations, of comprehensive income (loss), of changes in shareholders' equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes and financial statement schedules listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013 )issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

 

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

   
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Investments:    
Premiums receivable (net of allowance for credit losses of $- and $-) $ 121 $ 133
Assets held for sale 8 11
Total assets 2,013 2,168
Liabilities:    
Liabilities held for sale 6 7
Total liabilities 4,243 4,244
Commitments and contingencies (Refer to Note 18)
Equity:    
Preferred stock, par value $1 per share; authorized shares—10,000,000; issued and outstanding—none 0 0
Common stock, par value $1 per share; authorized shares--400,000,000; issued shares--283,186,115 283 283
Additional paid-in capital 2,450 2,492
Retained earnings (deficit) (1,768) (1,591)
Accumulated other comprehensive income (loss), net of tax of $7 and $7 (95) (128)
Treasury stock, at cost--232,675,865 and 232,215,934 shares (3,107) (3,145)
Total shareholders' equity of MBIA Inc. (2,237) (2,089)
Preferred stock of subsidiary and noncontrolling interests 7 13
Total equity (2,230) (2,076)
Total liabilities and equity 2,013 2,168
Non Variable Interest Entity [Member]    
Investments:    
Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $1,163 and $1,080) 1,042 925
Investments carried at fair value 223 237
Short-term investments, at fair value (amortized cost $409 and $492) 409 492
Other investments at amortized cost 1 1
Total investments 1,675 1,655
Cash and cash equivalents 69 84
Premiums receivable (net of allowance for credit losses of $- and $-) 121 133
Deferred acquisition costs 24 27
Insurance loss recoverable 43 185
Assets held for sale 8 11
Other assets 37 42
Liabilities:    
Unearned premium revenue 172 199
Loss and loss adjustment expense reserves 454 526
Long-term debt 2,843 2,741
Medium-term notes (includes financial instruments carried at fair value of $46 and $35) 472 440
Investment agreements 174 204
Liabilities held for sale 6 7
Other liabilities 73 78
Variable Interest Entity, Primary Beneficiary [Member]    
Investments:    
Cash 2 3
Loans receivable at fair value 34 28
Liabilities:    
Other liabilities 17 6
Variable interest entity debt (includes financial instruments carried at fair value of $25 and $31) $ 32 $ 43
v3.25.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fixed-maturity securities held as available-for-sale, amortized cost $ 1,464  
Preferred stock, par value $ 1 $ 1
Preferred stock, authorized shares 10,000,000 10,000,000
Preferred stock, issued 0 0
Preferred stock, outstanding 0 0
Common stock, par value $ 1 $ 1
Common stock, authorized shares 400,000,000 400,000,000
Common stock, issued shares 283,186,115 283,186,115
Accumulated other comprehensive income (loss), taxes $ 7 $ 7
Treasury stock, shares 232,675,865 232,215,934
Non Variable Interest Entity [Member]    
Fixed-maturity securities held as available-for-sale, amortized cost $ 1,163 $ 1,080
Short-term investments, amortized cost 409 492
Premiums receivable (net of allowance for credit losses) 0 0
Medium-term notes, financial instruments carried at fair value 46 35
Variable Interest Entity, Primary Beneficiary [Member]    
Variable interest entity debt (includes financial instruments carried at fair value) $ 25 $ 31
v3.25.4
Consolidated Statements Of Operations - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues:      
Net realized investment gains (losses) $ (6) $ (3) $ (76)
Net gains (losses) on financial instruments at fair value and foreign exchange (29) (42) 4
Total revenues 80 [1] 42 [2] 7 [3]
Expenses:      
Losses and loss adjustment (20) 184 177
Interest 196 208 210
Total expenses 261 483 491
Income (loss) from continuing operations before income taxes (181) (441) (484)
Provision (benefit) for income taxes 0 0 0
Income (loss) from continuing operations (181) (441) (484)
Income (loss) from discontinued operations, net of income taxes (2) (3) (3)
Net income (loss) (183) (444) (487)
Less: Net income (loss) attributable to noncontrolling interests (6) 3 4
Net income (loss) attributable to MBIA Inc. $ (177) $ (447) $ (491)
Net income (loss) per common share attributable to MBIA Inc. - basic and diluted      
Continuing operations - basic $ (3.53) $ (9.31) $ (10.03)
Continuing operations - diluted (3.53) (9.31) (10.03)
Discontinued operations - basic (0.05) (0.12) (0.15)
Discontinued operations - diluted (0.05) (0.12) (0.15)
Net income (loss) per common share attributable to MBIA Inc. - basic (3.58) (9.43) (10.18)
Net income (loss) per common share attributable to MBIA Inc. - diluted $ (3.58) $ (9.43) $ (10.18)
Weighted average number of common shares outstanding:      
Basic 49,278,281 47,436,079 [4] 48,207,574 [4]
Diluted 49,278,281 47,436,079 [4] 48,207,574 [4]
Non Variable Interest Entity [Member]      
Revenues:      
Scheduled premiums earned $ 28 $ 32 $ 35
Refunding premiums earned 2 4 2
Premiums earned (net of ceded premiums of $1, $1, and $1) 30 36 37
Net investment income 73 84 116
Net realized investment gains (losses) (6) (3) (76)
Net gains (losses) on financial instruments at fair value and foreign exchange (29) (42) 4
Fees and reimbursements 2 3 0
Other net realized gains (losses) 0 1 (4)
Expenses:      
Losses and loss adjustment (20) 184 177
Amortization of deferred acquisition costs 4 4 5
Operating 68 69 87
Interest 196 208 210
Variable Interest Entity, Primary Beneficiary [Member]      
Revenues:      
Net gains (losses) on financial instruments at fair value and foreign exchange 3 (23) (45)
Other net realized gains (losses) 7 (14) (25)
Expenses:      
Operating 12 17 11
Interest $ 1 $ 1 $ 1
[1] Includes net investment income of $60 million, $26 million, $11 million, and ($24) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.
[2] Includes net investment income of $67 million, $30 million, $11 million, and ($24) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.
[3] Includes net investment income of $93 million, $25 million, $23 million, and ($25) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.
[4] Includes approximately 1 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for each of the years ended December 31, 2025, 2024 and 2023 respectively.
v3.25.4
Consolidated Statements Of Operations (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Financial Guarantee Insurance Segment [Member]      
Ceded premiums earned $ 1 $ 1 $ 1
v3.25.4
Consolidated Statements Of Comprehensive Income (Loss) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statements of Comprehensive Income (Loss)      
Net income (loss) $ (183) $ (444) $ (487)
Available-for-sale securities with no credit losses:      
Unrealized gains (losses) arising during the period 29 (19) 33
Reclassification adjustments for (gains) losses included in net income (loss) 7 3 67
Foreign currency translation:      
Foreign currency translation gains (losses) 0 (1) 0
Reclassification adjustments for (gains) losses included in net income (loss) 5 0 0
Instrument-specific credit risk of liabilities measured at fair value:      
Unrealized gains (losses) arising during the period (8) 0 (1)
Reclassification adjustments for (gains) losses included in net income (loss) 0 28 45
Total other comprehensive income (loss) 33 11 144
Comprehensive income (loss) (150) (433) (343)
Less: Comprehensive income (loss) attributable to noncontrolling interests (6) 3 4
Comprehensive income (loss) attributable to MBIA Inc. $ (144) $ (436) $ (347)
v3.25.4
Consolidated Statements Of Changes In Shareholders' Equity - USD ($)
$ in Millions
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings (Deficit) [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Treasury Stock [Member]
Total Shareholders' Equity Of MBIA Inc. [Member]
Preferred Stock [Member]
Preferred Stock Of Subsidiary And Noncontrolling Interests [Member]
Balance (in common stock shares) at Dec. 31, 2022   283,186,115              
Balance (in preferred stock shares) at Dec. 31, 2022               1,315  
Total equity balance at Dec. 31, 2022   $ 283 $ 2,925 $ (653) $ (283) $ (3,154) $ (882)   $ 6
Balance (in treasury stock shares) at Dec. 31, 2022           (228,333,444)      
Net income (loss) attributable to MBIA Inc. $ 477     (491)          
Other comprehensive income (loss) 144       144        
Treasury shares acquired under share repurchase program           $ (29)      
Treasury shares acquired under share repurchase program (in shares)           (3,568,886)      
Cash dividends paid     (409)            
Share-based compensation     (1)            
Other           $ 11      
Other (in shares)           (420,854)      
Period change             (775)   4
Total equity balance at Dec. 31, 2023 (1,647) $ 283 2,515 (1,144) (139) $ (3,172) (1,657)   10
Balance (in treasury stock shares) at Dec. 31, 2023           (232,323,184)      
Balance (in common stock shares) at Dec. 31, 2023   283,186,115              
Balance (in preferred stock shares) at Dec. 31, 2023               1,315  
Net income (loss) attributable to MBIA Inc. 435     (447)          
Other comprehensive income (loss) $ 11       11        
Treasury shares acquired under share repurchase program           $ 0      
Treasury shares acquired under share repurchase program (in shares) 0         0      
Cash dividends paid     0            
Share-based compensation     (23)            
Other           $ 27      
Other (in shares)           107,250      
Period change             (432)   3
Total equity balance at Dec. 31, 2024 $ (2,076) $ 283 2,492 (1,591) (128) $ (3,145) (2,089)   13
Balance (in treasury stock shares) at Dec. 31, 2024 (232,215,934)         (232,215,934)      
Balance (in common stock shares) at Dec. 31, 2024 283,186,115 283,186,115              
Balance (in preferred stock shares) at Dec. 31, 2024 0             1,315  
Net income (loss) attributable to MBIA Inc. $ (177)     (177)          
Other comprehensive income (loss) $ 33       33        
Treasury shares acquired under share repurchase program           $ 0      
Treasury shares acquired under share repurchase program (in shares) 0         0      
Cash dividends paid     0            
Share-based compensation     (42)            
Other           $ 38      
Other (in shares)           (459,931)      
Period change             (148)   (6)
Total equity balance at Dec. 31, 2025 $ (2,230) $ 283 $ 2,450 $ (1,768) $ (95) $ (3,107) $ (2,237)   $ 7
Balance (in treasury stock shares) at Dec. 31, 2025 (232,675,865)         (232,675,865)      
Balance (in common stock shares) at Dec. 31, 2025 283,186,115 283,186,115              
Balance (in preferred stock shares) at Dec. 31, 2025 0             1,315  
v3.25.4
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Additional Paid-in Capital [Member]      
Cash dividends paid per common share $ 8 $ 8 $ 8
v3.25.4
Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities:      
Premiums, fees and reimbursements received $ 16 $ 17 $ 18
Investment income received 52 57 105
Financial guarantee losses and loss adjustment expenses paid (145) (157) (214)
Proceeds from recoveries and reinsurance, net of salvage paid to reinsurers 236 22 10
Operating expenses paid and other operating (72) (57) (71)
Other proceeds from consolidated variable interest entities 0 2 28
Interest paid, net of interest converted to principal (49) (53) (64)
Cash (used) provided by discontinued operations 0 (7) (7)
Net cash provided (used) by operating activities 38 (176) (195)
Cash flows from investing activities:      
Purchases of available-for-sale investments (411) (210) (366)
Sales of available-for-sale investments 126 115 943
Paydowns, maturities and other proceeds of available-for-sale investments 204 207 214
Purchases of investments at fair value (62) (114) (77)
Sales, paydowns, maturities and other proceeds of investments at fair value 66 189 279
Sales, paydowns and maturities (purchases) of short-term investments, net 98 76 (186)
Paydowns and maturities of loans receivable 4 6 9
Consolidation/(deconsolidation) of variable interest entities 0 0 (2)
(Payments) proceeds for derivative settlements 0 (1) (38)
Proceeds (payments) from discontinued operations 0 19 (9)
Net cash provided (used) by investing activities 25 287 767
Cash flows from financing activities:      
Proceeds from investment agreements 0 0 7
Principal paydowns of investment agreements (16) (5) (12)
Principal paydowns of medium-term notes 0 (62) (15)
Proceeds from variable interest entity debt 0 8 62
Principal paydowns/redemptions of variable interest entity debt (11) (59) (142)
Dividends paid 0 0 (409)
Principal paydowns of long-term debt (45) (1) 0
Purchases of treasury stock (7) (4) (38)
Cash provided (used) by discontinued operations 0 (9) 5
Net cash provided (used) by financing activities (79) (132) (542)
Net increase (decrease) in cash and cash equivalents (16) (21) 30
Cash and cash equivalents - beginning of period 87 108 78
Cash and cash equivalents - end of period 71 87 108
Reconciliation of net income (loss) to net cash provided (used) by operating activities:      
Net income (loss) (183) (444) (487)
Income (loss) from discontinued operations, net of income taxes (2) (3) (3)
Income (loss) from continuing operations (181) (441) (484)
Change in:      
Premiums receivable 12 13 14
Unearned premium revenue (27) (33) (34)
Loss and loss adjustment expense reserves (72) 53 24
Insurance loss recoverable 142 (2) (46)
Accrued interest payable 151 162 159
Other assets and liabilities (4) 8 (1)
Net realized investment (gains) losses 6 3 76
Net (gains) losses on financial instruments at fair value and foreign exchange 26 65 41
Other net realized (gains) losses (7) 13 29
Other operating (8) (17) 27
Total adjustments to income (loss) from continuing operations 219 265 289
Net cash provided (used) by operating activities 38 (176) (195)
Non-cash operating activities:      
Loans receivable disposed of a variable interest entity 0 0 28
Other investments, received from sale of net assets held for sale 0 0 3
Non-cash financing activities:      
Variable interest entity debt extinguishment 7 0 0
Variable interest entity notes disposed of upon deconsolidation $ 0 $ 0 $ 22
v3.25.4
Cybersecurity Risk Management, Strategy, and Governance
12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Item 1C. Cybersecurity

The cybersecurity program of the Company establishes the framework for safeguarding critical information assets through an evolving, multi-tiered security approach. This program encompasses the Company’s policies and controls designed to mitigate risks from malicious and unauthorized use, as well as cybersecurity threats or attacks targeting the Company’s Information Assets ("IA"). These IA primarily include business and technology applications, networks, computing platforms, and the data stored therein. The following is a discussion of our cybersecurity risk management and strategy and our cybersecurity governance.

Risk Management and Strategy

Cybersecurity is a part of the Company’s overall risk management strategy. The Audit Committee oversees risks associated with cybersecurity. Refer to the following "Governance" section for additional information on the Audit Committee's oversight of cybersecurity.

 

The Company has developed a security architecture designed to minimize and defend against threats, with an emphasis on the capability to effectively assess and identify cyber risks to its IA. This includes regulating access to IA and protection against unauthorized access, malicious software, and hacking attempts. The Company maintains reasonable defenses to protect against known threats by systematic scanning for security vulnerabilities and utilizes more advanced technologies to protect against new threat vectors for which there is not yet a vendor-provided security solution. The Company uses tools such as firewalls, anti-malware software, multi-factor authentication, e-mail and internet security gateways, virtual private networks, and an active vulnerability management program to safeguard IA against cyberattacks. The Company also engages third-party outsourced security services to continuously monitor and provide timely remediation of security events across all information technology ("IT") assets. This serves as a virtual extension of the internal security team. In addition, the Company engages third-party security firms to perform periodic penetration testing to validate the security of its IT infrastructure and applications. Periodic incident response exercises are also conducted as part of the Company's overall cybersecurity program. Our processes also address threats to its IA associated with our use of third-party security providers. Third-party risks are included within our risk management strategy discussed above. Cybersecurity considerations affect the selection and oversight of our third-party service providers. We perform diligence on third-parties that have access to our systems, data or facilities that house such systems or data, and continually monitor cybersecurity threats identified through such diligence. Additionally, we may require certain third-parties to agree by contract to manage their cybersecurity risks in specified ways, and to agree to be subject to cybersecurity audits, which we conduct as appropriate.

The Company manages software using a risk-based approach that assesses software version requirements, technology obsolescence, business value and cost. Web based applications have external penetration testing performed to determine vulnerabilities and/or open exploits before deployment to production. The Company also utilizes data leakage prevention controls to further protect IA. The Company's hardware, including computers, smartphones, and tablets, has security software installed to extend cybersecurity and general technology management controls. In addition, the Company's IT department arranges periodic training for Company employees related to best practices to prevent, identify, and report cybersecurity incidents. All Company employees are required to participate in scheduled training and are obligated to certify the completion of each training session. Additionally, all third parties retained by the Company, including vendors, that are granted access to the Company’s IA are required to certify compliance with all relevant Company policies relating to such access and re-certify compliance as deemed necessary. This certification includes the completion of questionnaires that are reviewed by the Chief Information Security Officer ("CISO") and Chief Information Officer ("CIO").

 

Despite the Company's implementation and maintenance of the cybersecurity program and its components as identified above and elsewhere herein that includes a variety of best practice security measures, our information technology systems, networks, and data are subject to cyber-attacks or physical break-ins, unauthorized tampering or other security breaches. Notwithstanding these protections, attacks may result in a failure to maintain the security, confidentiality or privacy of sensitive information. To date, the Company has not had any cybersecurity incidents that have materially affected, or are reasonably likely to materially affect, its business strategy, results of operations, or its financial condition. There can be no assurance that a future cybersecurity incident would not result in a loss and/or have a material adverse effect on our reputation, business, results of operations, or financial condition.

 

 

 

 

Item 1C. Cybersecurity (continued)

 

Governance

The Company created an Enterprise Security Council (“ESC”) that is comprised of senior IT management (including the CISO and CIO), Internal Audit and Compliance leaders which meet regularly to evaluate potential security risks to the Company and its IA.

 

The CISO is responsible for performing a thorough examination of any identified or suspected cybersecurity incidents or violations. The CISO will collaborate with the Company's General Counsel and other relevant personnel during this formal review. Documentation detailing the event and an action plan, if required, will be generated by the CISO. Additionally, communication will be promptly established with the Cyber Incident Response Team ("CIRT"), and if deemed necessary, the Audit Committee.

The Audit Committee receives quarterly or more frequent as appropriate, briefings from the Company’s senior management and CISO. The briefings concern, among other topics, the cyber threat landscape and associated risks to the Company, updates to the Company’s cybersecurity program and associated policies, its ongoing strategy to prevent, identify and react to security incidents, internal and external vulnerability assessments, penetration testing results, and Internal Audit’s periodic reviews of MBIA’s security controls, policies, and procedures. The CIRT is comprised of senior leaders from across the company, which include Legal, Compliance, Investor/Media Relations, and Information Technology.

Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Text Block] To date, the Company has not had any cybersecurity incidents that have materially affected, or are reasonably likely to materially affect, its business strategy, results of operations, or its financial condition.
Cybersecurity Risk Board of Directors Oversight [Text Block]

Governance

The Company created an Enterprise Security Council (“ESC”) that is comprised of senior IT management (including the CISO and CIO), Internal Audit and Compliance leaders which meet regularly to evaluate potential security risks to the Company and its IA.

 

The CISO is responsible for performing a thorough examination of any identified or suspected cybersecurity incidents or violations. The CISO will collaborate with the Company's General Counsel and other relevant personnel during this formal review. Documentation detailing the event and an action plan, if required, will be generated by the CISO. Additionally, communication will be promptly established with the Cyber Incident Response Team ("CIRT"), and if deemed necessary, the Audit Committee.

The Audit Committee receives quarterly or more frequent as appropriate, briefings from the Company’s senior management and CISO. The briefings concern, among other topics, the cyber threat landscape and associated risks to the Company, updates to the Company’s cybersecurity program and associated policies, its ongoing strategy to prevent, identify and react to security incidents, internal and external vulnerability assessments, penetration testing results, and Internal Audit’s periodic reviews of MBIA’s security controls, policies, and procedures. The CIRT is comprised of senior leaders from across the company, which include Legal, Compliance, Investor/Media Relations, and Information Technology.

Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee oversees risks associated with cybersecurity.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]

The Company created an Enterprise Security Council (“ESC”) that is comprised of senior IT management (including the CISO and CIO), Internal Audit and Compliance leaders which meet regularly to evaluate potential security risks to the Company and its IA.

Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The CISO will collaborate with the Company's General Counsel and other relevant personnel during this formal review. Documentation detailing the event and an action plan, if required, will be generated by the CISO. Additionally, communication will be promptly established with the Cyber Incident Response Team ("CIRT"), and if deemed necessary, the Audit Committee.

The Audit Committee receives quarterly or more frequent as appropriate, briefings from the Company’s senior management and CISO.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Pay vs Performance Disclosure - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pay vs Performance Disclosure      
Net Income (Loss) $ (177) $ 435 $ 477
v3.25.4
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Business Developments and Risks and Uncertainties
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Business Developments and Risks and Uncertainties

Note 1: Business Developments and Risks and Uncertainties

Summary

MBIA Inc., together with its consolidated subsidiaries, (collectively, “MBIA” or the “Company”) operates within the financial guarantee insurance industry. MBIA manages three operating segments: 1) United States (“U.S.”) public finance insurance; 2) corporate; and 3) international and structured finance insurance. The Company’s U.S. public finance insurance business is managed through National Public Finance Guarantee Corporation (“National”), the corporate segment is managed through MBIA Inc. and several of its subsidiaries, including its service company, MBIA Services Corporation (“MBIA Services”) and its international and structured finance insurance business is managed through MBIA Insurance Corporation and its subsidiaries (“MBIA Corp.”).

Refer to “Note 11: Business Segments” for further information about the Company’s operating segments.

Business Developments

PREPA

During 2025, the Puerto Rico Electric Power Authority (“PREPA”) defaulted on scheduled debt service for National insured bonds and National paid gross claims in the aggregate of $105 million. As of December 31, 2025, National had $565 million of debt service outstanding related to PREPA. On January 1, 2026, PREPA defaulted on scheduled debt service for National insured bonds and National paid gross claims in the aggregate of $11 million.

 

On January 31, 2023, National entered into a restructuring support agreement (“PREPA RSA”) with the Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”), on behalf of itself and as the sole Title III representative of PREPA. A plan of adjustment for PREPA (the "Plan") and related disclosure statement was filed on February 9, 2023. Subsequently, both the Plan and PREPA RSA were amended. The Title III Court conducted confirmation hearings in March 2024. On June 12, 2024, the First Circuit Court of Appeals reversed Judge Swain's prior rulings and supported bondholder liens and claim amounts (the "Appeal Decision"). On June 26, 2024, the Oversight Board filed a petition for a First Circuit panel rehearing, and the Unsecured Creditors Committee ("UCC") filed an en banc appeal. On November 13, 2024, the First Circuit affirmed the Appeal Decision. On November 27, 2024, the Oversight Board filed a petition for further rehearing, and on December 31, 2024, the First Circuit denied the rehearing request. Following the Appeal Decision, the Oversight Board informed the Court, National and other parties that it intended to modify National’s settlement in a forthcoming amended Plan. Thereafter, National provided notice to the Oversight Board that National did not support the board's actions and that such actions constituted a breach and termination of the PREPA RSA, as amended. On January 29, 2025, the Court extended its litigation stay through March 24, 2025, and on March 3, 2025, the Court entered an order identifying key legal issues and requiring a joint proposed litigation schedule. On March 20, 2025, the Court set a briefing schedule on a motion for allowance of an administrative expense. On June 11, 2025, the Court set June 30, 2025, as the deadline for discovery, and July 23, 2025, for oral arguments in the administrative expense claim motion. Following the hearing, the Court reserved its decision on the legal issues and permitted the parties to continue resolution of discovery disputes. On August 8, 2025, the Court entered an order suspending deadlines for the Administrative Expense Claim until further order of the Court. On October 22, 2025, the Court ordered the parties to meet and confer on scheduling issues in the Administrative Expense Claim litigation and required they filed a Joint Status Report by November 24, 2025. Following the filing of the Joint Status Report, the Court entered an order dated December 9, 2025, lifting the litigation stay to permit the parties to litigate motions to compel solely in connection with the Administrative Expense Motion. Bondholders filed their Motion to Compel on January 9, 2026, and the Oversight Board on January 23, 2026 filed its opposition. Bondholders filed their reply brief on February 6, 2026. There is no assurance that a plan that is substantially similar in the treatment of National's claims and rights will ultimately be confirmed and become effective. In the event of a substantially different confirmed plan, National’s PREPA loss reserves and recoveries could be materially adversely affected.

 

 

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 1: Business Developments and Risks and Uncertainties (continued)

 

In July of 2025, National transferred certain PREPA bankruptcy claims to a custodian in exchange for tradeable custodial receipts (the "Custodial Receipts"). At the time of transfer, National owned the Custodial Receipts and continued to hold the same rights and was entitled to the same economic benefits associated with the transferred bankruptcy claims. In August of 2025, National sold the Custodial Receipts in a series of transactions through the transfer of ownership of approximately $374 million face amount of the Custodial Receipts, representing approximately 47% of the principal amount of National’s then current bond claims in the PREPA Title III case. This transaction reduced potential volatility and ongoing risk of remediation around National’s remaining PREPA exposure, for which the Title III case continues to remain uncertain and National continues to use its best efforts to strengthen its position. Subsequent to the sale of these Custodial Receipts, National does not retain any additional Custodial Receipts for sale. The sales price of the Custodial Receipts was higher than National's previous estimate, which resulted in National recording a gain included in "Losses and loss adjustment" on the Company's consolidated statements of operations for the year ended December 31, 2025. These sales also reduced National's "Insurance loss recoverable" related to PREPA on the Company's consolidated balance sheet as of December 31, 2025. Refer to “Note 6: Loss and Loss Adjustment Expense Reserves” for additional information on the Custodial Receipts sales.

 

Between August 1 and August 8, 2025, President Trump notified six Oversight Board members that their membership on the Oversight Board was terminated effective immediately. On September 18, 2025, three of the terminated Oversight Board members, Arthur Gonzalez, Andrew Biggs and Betty Rosa (the "Plaintiffs") sought reinstatement on the Oversight Board by filing injunctive, declaratory and legal relief (the Termination Case"). On September 22, 2025, Plaintiffs also filed a Motion for Preliminary Injunction seeking restrictions on replacing them on the Oversight Board until the Court hears the underlying merits of their claims. On October 3, 2025, the District Court for the District of Puerto Rico granted Plaintiffs' Motion for Preliminary Injunction permitting the Plaintiffs to remain on the Oversight Board until a final hearing on the adequacy of the termination notice as well as the scope of executive authority. On December 30, 2025, the Court of Appeals for the First Circuit entered an order holding the Termination Case in abeyance until the court is notified that the Supreme Court has issued a decision in the Trump v. Cook case, heard by the Supreme Court on January 21, 2026.

 

Refer to “Note 6: Loss and Loss Adjustment Expense Reserves” for a further discussion of the Company’s PREPA reserves and recoveries.

MBIA Mexico

During 2025, the Company dissolved MBIA Corp.' s wholly-owned subsidiary, MBIA México, S.A. de C.V. (“MBIA Mexico”) and MBIA Mexico returned approximately $13 million of capital to MBIA Corp.

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 1: Business Developments and Risks and Uncertainties (continued)

Zohar CDOs

Payment of claims on MBIA Corp.’s policies insuring the Class A-1 and A-2 notes issued by Zohar collateralized debt obligation (“CDO”) 2003-1, Limited (“Zohar I”) and Zohar II 2005-1, Limited (“Zohar II”) (collectively, the “Zohar CDOs”), entitled MBIA Corp. to reimbursement of such amounts plus interest and expenses and/or to exercise certain rights and remedies to seek recovery of such amounts. Pursuant to a plan of liquidation that became effective in August of 2022, all remaining loans made to, and equity interests in, portfolio companies, were distributed to MBIA Corp. either directly or in the form of interests in certain asset recovery entities. For those portfolio companies in which the Company does not have a majority of the voting interest, the Company recorded these assets as investments. For those portfolio companies in which the Company owns a majority of the voting interest, the Company consolidated the assets, liabilities, and financial results of these companies and classified these entities as discontinued operations and held for sale. Refer to “Note 2: Significant Accounting Policies” for the Company’s accounting policies related to its net assets held for sale and discontinued operations. In addition, certain of the Zohar debtors’ litigation claims were transferred into a litigation trust that the Company consolidated as a variable interest entity (“VIE”).

There still remains significant uncertainty with respect to the realizable value of the remaining loans to and equity interests in these portfolio companies and the litigation trust. Further, as the monetization of these assets unfolds, and new information concerning the financial condition of the portfolio companies is disclosed, the Company will continue to revise its expectations for recoveries.

Discontinued Operations

As of December 31, 2025 and 2024, the assets and liabilities of the portfolio companies are presented within “Assets held for sale” and “Liabilities held for sale” on the Company’s consolidated balance sheets. Additionally, the results of operations for these entities are classified as “Income from discontinued operations, net of income taxes” on the Company’s consolidated statements of operations for the years ended December 31, 2025, 2024 and 2023. During 2024 and 2023, certain net assets of the Company's Zohar-related portfolio companies that were classified as held for sale were disposed. The consideration received as part of these dispositions were approximate to the carrying values of the assets and liabilities sold.

 

The following table summarizes the components of assets and liabilities held for sale:

 

 

  As of

In millions

 

December 31, 2025

 

December 31, 2024

Assets held for sale

 

 

 

 

 

 

 

 

Accounts receivable

 

$

2

 

 

$

1

 

Goodwill

 

 

11

 

 

 

11

 

Other assets

 

 

1

 

 

 

2

 

Loss on disposal group

 

 

(6

)

 

 

(3

)

Total assets held for sale

 

$

8

 

 

$

11

 

Liabilities held for sale

 

 

 

 

 

 

 

 

Accounts payable

 

$

1

 

 

$

1

 

Debt

 

 

-

 

 

 

1

 

Accrued expenses and other

 

 

5

 

 

 

5

 

Total liabilities held for sale

 

$

6

 

 

$

7

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 1: Business Developments and Risks and Uncertainties (continued)

 

The results of operations from discontinued operations for the years ended December 31, 2025, 2024 and 2023 consist of the following:

 

 

 

Years Ended December 31,

 

In millions

 

2025

 

 

2024

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

 

 

Revenues

$

12

 

 

$

59

 

 

$

116

 

 

Cost of sales

 

6

 

 

 

28

 

 

 

58

 

 

     Total revenues from discontinued operations

 

6

 

 

 

31

 

 

 

58

 

Expenses:

 

 

 

 

 

 

 

 

 

Operating

 

5

 

 

 

31

 

 

 

67

 

 

Interest

 

-

 

 

 

3

 

 

 

4

 

 

Increase (decrease) on loss on disposal group

 

3

 

 

 

-

 

 

 

(10

)

 

     Total expenses from discontinued operations

 

8

 

 

 

34

 

 

 

61

 

Income (loss) before income taxes from discontinued operations

 

 

(2

)

 

 

(3

)

 

 

(3

)

Provision (benefit) for income taxes from discontinued operations

 

 

-

 

 

 

-

 

 

 

-

 

Income (loss) from discontinued operations, net of income taxes

 

$

(2

)

 

$

(3

)

 

$

(3

)

Risks and Uncertainties

The Company’s financial statements include estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The outcome of certain significant risks and uncertainties could cause the Company to revise its estimates and assumptions or could cause actual results to differ materially from the Company’s estimates. The discussion below highlights the significant risks and uncertainties that could have a material effect on the Company’s financial statements and business objectives in future periods.

National’s Insured Portfolio

National continues to monitor and remediate its existing insured portfolio. Certain state and local governments and territory obligors that National insures are under financial and budgetary stress. This could lead to an increase in defaults by such entities on the payment of their obligations and losses or impairments on a greater number of National’s insured transactions. In particular, PREPA is currently in bankruptcy-like proceedings in the United States District Court for the District of Puerto Rico. Refer to the “PREPA” section above for further information. National monitors and analyzes these situations and other stressed credits closely, and the overall extent and duration of this stress is uncertain.

MBIA Corp.’s Insured Portfolio

MBIA Corp.’s primary objectives are to satisfy all claims by its policyholders and to maximize future recoveries, if any, for its surplus note holders, and then its preferred stock holders. MBIA Corp. is executing this strategy by, among other things, taking steps to maximize the collection of recoveries and by reducing and mitigating potential losses on its insurance exposures. MBIA Corp.’s insured portfolio performance could deteriorate and result in additional significant loss reserves and claim payments. MBIA Corp.’s ability to meet its obligations is limited by available liquidity and its ability to secure additional liquidity through financing and other transactions. There can be no assurance that MBIA Corp. will be successful in generating sufficient resources to meet its obligations.

 

 

 

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 1: Business Developments and Risks and Uncertainties (continued)

 

Recoveries

In addition to the recoveries related to the Zohar CDOs, MBIA Corp. also projects to collect recoveries from prior claims associated with insured residential mortgage-backed securities (“RMBS”); however, the amount and timing of these collections are uncertain.

 

Failure to collect its expected recoveries could impede MBIA Corp.’s ability to make payments when due on other policies. MBIA Corp. believes that if the New York State Department of Financial Services ("NYSDFS") concludes at any time that MBIA Insurance Corporation will not be able to pay its policyholder claims, the NYSDFS would likely put MBIA Insurance Corporation into a rehabilitation or liquidation proceeding under Article 74 of the New York Insurance Law (“NYIL”) and/or take such other actions as the NYSDFS may deem necessary to protect the interests of MBIA Insurance Corporation’s policyholders. The determination to commence such a proceeding or take other such actions is within the exclusive control of the NYSDFS.

Given the separation of MBIA Inc. and MBIA Corp. as distinct legal entities, the absence of any cross defaults between the entities and the lack of reliance by MBIA Inc. on MBIA Corp. for dividends, the Company does not believe that a rehabilitation or liquidation proceeding with respect to MBIA Insurance Corporation would have any significant liquidity impact on MBIA Inc. Such a proceeding could have material adverse consequences for MBIA Corp., including the termination of derivative contracts for which counterparties may assert market-based claims, the acceleration of debt obligations issued by affiliates and insured by MBIA Corp., the loss of control of MBIA Insurance Corporation to a rehabilitator or liquidator, and unplanned costs.

Refer to “Note 6: Loss and Loss Adjustment Expense Reserves” for additional information about MBIA Corp.’s recoveries.

v3.25.4
Significant Accounting Policies
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Significant Accounting Policies

Note 2: Significant Accounting Policies

Basis of Presentation

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As additional information becomes available or actual amounts become determinable, the recorded estimates are revised and reflected in operating results. Certain amounts have been reclassified in prior years’ financial statements to conform to the current presentation.

Consolidation

The consolidated financial statements include the accounts of MBIA Inc., its wholly-owned subsidiaries and all other entities in which the Company has a controlling financial interest. All intercompany balances and transactions have been eliminated. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether an entity is a voting interest entity or a VIE.

Voting interest entities are entities in which (i) the total equity investment at risk is sufficient to enable an entity to finance its activities independently and (ii) the equity holders have the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. Voting interest entities are consolidated when the Company has a majority voting interest.

VIEs are entities that lack one or more of the characteristics of a voting interest entity. The consolidation of a VIE is required if an entity has a variable interest (such as an equity or debt investment, a beneficial interest, a guarantee, a written put option or a similar obligation) and that variable interest or interests give it a controlling financial interest in the VIE. A controlling financial interest is present when an enterprise has both (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The enterprise with the controlling financial interest, known as the primary beneficiary, is required to consolidate the VIE. The Company consolidates all VIEs in which it is the primary beneficiary. The Company may elect to apply the fair value option to the financial assets and financial liabilities of consolidated VIEs on a VIE-by-VIE basis. Refer to “Note 4: Variable Interest Entities” for additional information.

Investments

The Company classifies its fixed-maturity investments as available-for-sale (“AFS”), held-to-maturity or trading. AFS investments are reported in the consolidated balance sheets at fair value with non-credit related unrealized gains and losses, net of applicable deferred income taxes, reflected in accumulated other comprehensive income (loss) (“AOCI”) in shareholders’ equity. The specific identification method is used to determine realized gains and losses on AFS securities. Investments carried at fair value consist of equity instruments and fixed-maturity investments elected under the fair value option. Short-term investments include all fixed-maturity securities held as AFS with a remaining maturity of less than one year at the date of purchase, including commercial paper and money market securities.

Investment income is recorded as earned, which includes the current period interest accruals deemed collectible. Accrued interest income is recorded as part of “Other assets” on the Company’s consolidated balance sheets. Bond discounts and premiums are amortized using the effective yield method over the remaining term of the securities and reported within “Net investment income” on the Company’s consolidated statements of operations; however, premiums on certain callable debt securities are amortized to the next call date. As the Company primarily holds high-quality asset-backed ("ABS") and mortgage-backed ("MBS") securities purchased without expectation of principal loss, premiums and discounts are amortized into interest income using the retrospective method based on probable and reasonably estimable prepayment experience.

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 2: Significant Accounting Policies (continued)

Changes in the fair values of investments carried at fair value are reflected in earnings as part of “Net gains (losses) on financial instruments at fair value and foreign exchange” on the Company’s consolidated statements of operations. For VIE investments carried at fair value, interest income is also recorded as part of fair value changes within “Net gains (losses) on financial instruments at fair value and foreign exchange”. Realized gains and losses from the sale and other dispositions of AFS investments are reflected in earnings as part of “Net realized investment gains (losses)” on the Company’s consolidated statements of operations.

Credit Losses

For AFS debt securities, the Company’s consolidated statements of operations reflect the full impairment (the difference between a security’s amortized cost basis and fair value) if the Company intends to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis. AFS debt securities in an unrealized loss position are evaluated on a quarterly basis to determine if credit losses exist. The Company considers that credit losses exist when the Company does not expect to recover the entire amortized cost basis of the debt security. The Company measures an allowance for credit losses on a security-by-security basis as the difference between the recorded investment and the present value of the cash flows expected to be collected, discounted at the instrument’s effective interest rate. Only the amounts of impairment associated with the credit losses are recognized as charges to earnings.

The carrying values of debt securities are presented net of any allowance for credit losses. For AFS debt securities, adjustments to the amortized cost basis are recorded if there is an intent to sell before recovery of the impairment. For debt securities with an allowance for credit loss, changes in credit losses including accretion of the allowance for credit losses are recognized in earnings through other net realized gains (losses) with a corresponding change to the allowance for credit losses.

Accrued interest income on debt securities is not assessed for credit losses since the Company reverses any past due accrued interest income through earnings as a charge against net investment income. Interest income is subsequently recognized to the extent cash is received.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, demand deposits, and deposits with banks with original maturities of less than three months.

Deferred Acquisition Costs

The Company deferred acquisition costs that were directly related to new or renewal insurance business. Acquisition costs are costs to acquire an insurance contract which result directly from and are essential to the insurance contract and would not have been incurred by the Company had the contract not occurred. Acquisition costs include compensation of employees involved in underwriting, certain rating agency fees, state premium taxes and certain other underwriting expenses, reduced by ceding commission income on premiums ceded to reinsurers. Acquisition costs also included ceding commissions paid by the Company in connection with assuming business from other financial guarantors. Acquisition costs, net of ceding commissions received, related to non-derivative insured financial guarantee transactions are deferred and amortized over the period in which the related premiums are earned.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 2: Significant Accounting Policies (continued)

Held For Sale Classification and Discontinued Operations

The net assets the Company classifies as held for sale in accordance with Accounting Standards Codification (“ASC”) 360-10, Property, Plant, and Equipment and as discontinued operations in accordance with ASC 205-20, Presentation of Financial Statements-Discontinued Operations has been held for sale beyond the one-year probable sale criteria. The Company continues to meet exceptions permitting it to continue to record these net assets as held for sale. The Company continues to actively market its net assets held for sale and has identified interested parties, including having attained various stages of a sales or liquidation process. In addition, the Company has continued to (i) take necessary actions to respond to changes in circumstances, including recording a loss on disposal group; (ii) actively market the net assets at prices that are deemed reasonable; and (iii) meet the criteria for held for sale classification. The assets and liabilities of these companies are presented within “Assets held for sale” and “Liabilities held for sale” on the Company’s consolidated balance sheets. Also, the results of operations for these companies are classified as "Income from discontinued operations, net of income taxes" on the Company’s consolidated statements of operations. The Company consolidated the operating results of these portfolio companies on a two-month lag to allow for a more timely preparation of the Company's consolidated financial statements. Refer to “Note 1: Business Developments and Risks and Uncertainties” for further information about the Company’s held for sale assets and liabilities and discontinued operations.

Fair Value Measurements—Definition and Hierarchy

The Company carries certain financial instruments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement of financial instruments held or issued by the Company are determined through the use of observable market data when available. Market data is obtained from a variety of third-party sources, including dealer quotes. If dealer quotes are not available for an instrument that is infrequently traded, the Company uses alternate valuation methods, including either dealer quotes for similar instruments or pricing models that use market data inputs. The use of alternate valuation methods generally requires considerable judgment in the application of estimates and assumptions and changes to such estimates and assumptions may produce materially different fair values. The Company considers its own nonperformance risk and the nonperformance risk of its counterparties when measuring fair value.

The accounting guidance establishes a fair value hierarchy that categorizes into three levels, the inputs used to measure fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available and reliable. Observable inputs are those that the Company believes market participants would use in pricing an asset or liability based on available market data. Unobservable inputs are those that reflect the Company’s beliefs about the assumptions market participants would use in pricing the asset or liability based on the best information available. The three levels of the fair value hierarchy are defined as follows:

Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 2 assets include debt securities with quoted prices that are traded less frequently than exchange-traded instruments, securities which are priced using observable inputs and derivative contracts whose values are determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data.
Level 3—Valuations based on inputs that are unobservable or supported by little or no market activity, and that are significant to the overall fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques where significant inputs are unobservable, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 2: Significant Accounting Policies (continued)

The availability of observable inputs can vary from financial instrument to financial instrument and period to period depending on the type of instrument, market activity, the approach used to measure fair value, and other factors. The Company categorizes a financial instrument within the fair value hierarchy based on the least observable input that is significant to the fair value measurement. When the inputs used to measure fair value of an asset or a liability are categorized within different levels based on the definition of the fair value hierarchy, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

Refer to “Note 7: Fair Value of Financial Instruments” for additional fair value disclosures.

Loss and Loss Adjustment Expenses

The Company recognizes loss reserves on a contract-by-contract basis when the present value of probability-weighted expected net cash outflows to be paid under the contract discounted using a risk-free rate as of the measurement date exceed the unearned premium revenue. A loss reserve is subsequently remeasured each reporting period for expected increases or decreases due to changes in the likelihood of default and potential recoveries. Subsequent changes to the measurement of loss reserves are recognized as loss expense or benefit in the period of change. Measurement and recognition of loss reserves are reported gross of any reinsurance on the Company’s consolidated balance sheets. The Company estimates the likelihood of possible claim payments and possible recoveries of such claim payments using probability-weighted expected cash flows as of the measurement date based on information available, including market information. Accretion of the discounts on loss reserves and recoveries is included in loss expense. The Company considers its ability to collect contractual interest on claim payments when developing its expected inflows, if applicable.

The Company recognizes potential recoveries on paid claims based on probability-weighted cash inflows that are present valued at U.S. risk-free rates as of the measurement date. Such amounts are reported within “Insurance loss recoverable” on the Company’s consolidated balance sheets. To the extent the Company had recorded potential recoveries in its loss reserves previous to a claim payment, such recoveries are reclassified to “Insurance loss recoverable” upon payment of the related claim and remeasured at each reporting period.

The Company’s loss reserves, insurance loss recoverable, and accruals for loss adjustment expense (“LAE”) incurred are disclosed in “Note 6: Loss and Loss Adjustment Expense Reserves.”

Long-term Debt

Long-term debt, including VIE loans payable, is carried at the principal amount outstanding plus accrued interest and net of unamortized debt issuance costs and discounts. Interest expense is accrued at the contractual interest rate. Debt issuance costs and discounts are amortized and reported as interest expense.

For long-term debt issued by consolidated VIEs in which the Company's variable interest arises from financial guarantees written by its insurance operations, the Company has elected the fair value option on these instruments. Changes in fair value are reported within “Net gains (losses) on financial instruments at fair value and foreign exchange” under “Revenues of consolidated variable interest entities” on the Company’s consolidated statements of operations, except for the portion of the total change in fair value of financial liabilities caused by changes in the instrument-specific credit risk which is presented separately in AOCI in shareholders' equity.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 2: Significant Accounting Policies (continued)

Medium-Term Notes and Investment Agreements

Medium-term notes ("MTNs") and investment agreements are generally carried at the principal amount outstanding plus accrued interest and are net of unamortized discounts. One MTN that is a hybrid financial instrument was elected to be accounted for fair value given the complexity of bifurcating the embedded derivative. For the MTN carried at fair value, changes in fair value are recorded in earnings, except for the portion of unrealized gains (losses) caused by a change in the instrument-specific credit risk which are recorded in AOCI. Interest expense is accrued at the contractual interest rate. Discounts are amortized and reported as interest expense.

Financial Guarantee Insurance Premiums

Unearned Premium Revenue and Receivable for Future Premiums

The Company recognized a liability for unearned premium revenue at the inception of financial guarantee insurance and reinsurance contracts on a contract-by-contract basis. Unearned premium revenue recognized at inception of a contract is measured at the present value of the premium due. For most financial guarantee insurance contracts, the Company received the entire premium due at the inception of the contract, and recognized an unearned premium revenue liability at that time. For certain other financial guarantee contracts, the Company receives premiums in installments over the term of the contract. Unearned premium revenue and a receivable for future premiums were recognized at the inception of each installment contract, and measured at the present value of premiums expected to be collected over the contract period or expected period using a risk-free discount rate. The expected period is used in the present value determination of unearned premium revenue and receivable for future premiums for contracts where (a) the insured obligation is contractually prepayable, (b) prepayments are probable, (c) the amount and timing of prepayments are reasonably estimable, and (d) a homogenous pool of assets is the underlying collateral for the insured obligation. Premiums receivable for policies that use the expected period of risk due to expected prepayments are adjusted in subsequent measurement periods when prepayment assumptions change using the risk-free discount rate as of the remeasurement date. The Company has determined that substantially all of its installment contracts meet the conditions required to be treated as expected period contracts. Premiums receivable also includes the current amount of premiums due from installment policies insuring consolidated VIEs when the premiums are payable by third-parties on behalf of the consolidated VIEs. The receivable for future premiums is reduced as installment premiums are collected. The Company reports the accretion of the discount on installment premiums receivable as premium revenue and discloses the amount recognized in “Note 5: Insurance Premiums.” As premium revenue is recognized, the unearned premium revenue liability is reduced.

Credit Losses on Premium Receivables

The Company evaluates the collectability of outstanding premium receivables on a quarterly basis and measures any allowance for credit losses as the difference between the recorded premium receivable amount and the current projected net present value of premiums expected to be collected, discounted at risk-free rates described in the preceding paragraph. Estimating the allowance for credit losses involves substantial judgment, including forecasting an insured transaction’s cash flows, such as the future performance of the transaction’s underlying assets and the impact of certain macro-economic factors, as well as incorporating any historical experience of uncollectible balances and a transaction’s liability structure, including the seniority of premium payments to the Company.

Premium Revenue Recognition

The Company recognizes and measures premium revenue over the period of the contract in proportion to the amount of insurance protection provided. Premium revenue is measured by applying a constant rate to the insured principal amount outstanding in a given period to recognize a proportionate share of the premium received or expected to be received on a financial guarantee insurance contract. A constant rate for each respective financial guarantee insurance contract is calculated as the ratio of (a) the present value of premium received or expected to be received over the period of the contract to (b) the sum of all insured principal amounts outstanding during each period over the term of the contract.

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 2: Significant Accounting Policies (continued)

An issuer of an insured financial obligation may retire the obligation prior to its scheduled maturity through refinancing or legal defeasance in satisfaction of the obligation according to its indenture, which results in the Company’s obligation being extinguished under the financial guarantee contract. The Company recognizes any remaining unearned premium revenue on the insured obligation as refunding premiums earned in the period the contract is extinguished to the extent the unearned premium revenue has been collected.

Fee and Reimbursement Revenue Recognition

The Company collects insurance related fees for services performed in connection with certain transactions. Fees are earned when the related services are completed. Types of fees include waiver and consent and termination fees.

Stock-Based Compensation

The Company recognizes in earnings, generally over the vesting or service period of an award, the cost of all stock-based payment transactions using the fair value of the stock-based compensation provided. Refer to “Note 14: Benefit Plans” for a further discussion regarding the methodology utilized in recognizing employee stock compensation expense.

Foreign Currency Translation

Financial statement assets and liabilities denominated in foreign currencies are reported in U.S. dollars generally using rates of exchange prevailing as of the balance sheet date. Translation adjustments resulting from the translation of the financial statements of the Company’s non-U.S. operations from its functional currency into U.S. dollars are included in AOCI in shareholders’ equity. Operating results of the Company’s non-U.S. operations are translated at average rates of exchange prevailing during the year. Foreign currency remeasurement gains and losses resulting from transactions in non-functional currencies are recorded in earnings. The Company derecognizes the cumulative translation adjustment reported in AOCI and includes the amount as part of the gain or loss on the sale or liquidation of its investment in a foreign entity in the period in which the sale or liquidation occurs.

Income Taxes

Deferred income taxes are recorded with respect to temporary differences between the tax bases of assets and liabilities and the reported amounts in the Company’s financial statements that will result in deductible or taxable amounts in future years when the reported amounts of assets and liabilities are recovered or settled. Such temporary differences relate principally to net operating losses (“NOLs”), accrued surplus note interest, foreign tax credits, and capital loss carryforward, as well as timing differences in loss reserve deductions, premium revenue recognition and unrealized gains and losses. Valuation allowances are established to reduce deferred tax assets to the amount that more likely than not will be realized. As of December 31, 2025 and 2024, the Company had a full valuation allowance on its net deferred tax asset. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates in the period in which changes are approved by the relevant authority.

MBIA Inc. and its eligible U.S. subsidiaries file a consolidated federal income tax return. The U.S. income taxes are allocated based on the provisions of the Company’s tax sharing agreement, which governs the intercompany settlement of tax obligations and benefits. The method of allocation between the members is based on calculations as if each member filed its separate tax return. Under the Company’s tax sharing agreement, each member with an NOL will receive the benefits of its tax losses and credits as it is able to earn them out in the future.

Refer to “Note 10: Income Taxes” for additional information about the Company’s income taxes.

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

v3.25.4
Recent Accounting Pronouncements
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Recent Accounting Pronouncements

Note 3: Recent Accounting Pronouncements

Recently Adopted Accounting Standards

Income Taxes (Topic 740): Improvements to Income Tax Disclosure (ASU 2023-09)

In December of 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures” which requires disaggregated information about a reporting entity’s effective tax rate reconciliation, information on income taxes paid, and contain other disclosure requirements. This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. Upon the effective date, the amendments should be applied prospectively with retrospective application permitted. The Company adopted the amendments of ASU 2023-09 for its fiscal year ending December 31, 2025. The Company applied the amendments of ASU 2023-09 retrospectively and restated the applicable income tax disclosures for all prior periods. The adoption of ASU 2023-09 only impacted the income tax disclosures within the Company's consolidated financial statements and did not impact amounts reported on the Company's balance sheet, statement of operations, statement of comprehensive income or statement of cash flows.

The Company has not adopted any other new accounting pronouncements that had a material impact on its consolidated financial statements.

Recent Accounting Developments

Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03)

In November of 2024, the FASB issued ASU 2024-03, “Disaggregation of Income Statement Expenses" which requires to disclose the amounts of employee compensation, depreciation, intangible asset amortization, and certain other costs and expenses included in each relevant expense caption on the consolidated statements of operations and include certain amounts that are already required to be disclosed under current GAAP in the same disclosure. Additionally, ASU 2024-03 requires the disclosure of a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and the disclosure of the total amount of selling expenses. This ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. Upon the effective date, the amendments can be applied either prospectively or retrospectively. The Company is currently evaluating the potential impact of adopting ASU 2024-03.

v3.25.4
Variable Interest Entities
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Variable Interest Entities

Note 4: Variable Interest Entities

Primarily through MBIA’s international and structured finance insurance segment, the Company provides credit protection to issuers of obligations that may involve issuer-sponsored special purpose entities (“SPEs”). An SPE may be considered a VIE to the extent the SPE’s total equity at risk is not sufficient to permit the SPE to finance its activities without additional subordinated financial support or its equity investors lack any one of the following characteristics: (i) the power to direct the activities of the SPE that most significantly impact the entity’s economic performance or (ii) the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the entity. A holder of a variable interest or interests in a VIE is required to assess whether it has a controlling financial interest, and thus is required to consolidate the entity as primary beneficiary. An assessment of a controlling financial interest identifies the primary beneficiary as the variable interest holder that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. An ongoing reassessment of controlling financial interest is required to be performed based on any substantive changes in facts and circumstances involving the VIE and its variable interests.

 

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Note 4: Variable Interest Entities (continued)

 

The Company evaluates issuer-sponsored SPEs initially to determine if an entity is a VIE, and is required to reconsider its initial determination if certain events occur. For all entities determined to be VIEs, MBIA performs an ongoing reassessment to determine whether its guarantee to provide credit protection on obligations issued by VIEs provides the Company with a controlling financial interest. Based on its ongoing reassessment of controlling financial interest, the Company determines whether a VIE is required to be consolidated or deconsolidated.

 

The Company consolidates VIEs, including grantor trusts, when it is deemed the primary beneficiary. This determination is based on a qualitative assessment of whether the Company has the power to direct a VIE's most significant activities and the obligation to absorb potentially significant losses. For VIEs where the Company provides credit protection, its guarantee of principal and interest payments of insured obligations, triggered by a VIE's nonperformance, generally constitutes an obligation to absorb losses of the entity that could potentially be significant to the VIE. When facts and circumstances indicate the Company holds a controlling financial interest, it is required to consolidate the entity as the primary beneficiary. The Company performs an ongoing reassessment of controlling financial interest that may result in consolidation or deconsolidation of any VIE.

 

Consolidated VIEs

The carrying amounts of assets and liabilities are presented separately in “Assets of consolidated variable interest entities” and “Liabilities of consolidated variable interest entities” on the Company’s consolidated balance sheets. During the fourth, second and first quarters of 2025, the Company had no additional consolidations or deconsolidations of VIEs. During the third quarter of 2025, the Company consolidated one VIE, a de-risking trust created to effectively commute certain insurance exposures on an insured RMBS security. There were no deconsolidations of VIEs during the third quarter of 2025. During the fourth, third and first quarters of 2024, the Company had no additional consolidations or deconsolidations of VIEs. During the second quarter of 2024, the Company did not consolidate any additional VIEs and deconsolidated one VIE due to the prepayment of outstanding notes and recorded losses of $14 million, of which $9 million was due to credit losses in AOCI that were released to earnings. Consolidation and deconsolidation gains and losses, if any, are recorded within “Other net realized gains (losses)” under “Revenues of consolidated variable interest entities” on the Company’s consolidated statements of operations.

Holders of insured obligations of issuer-sponsored VIEs do not have recourse to the general assets of the Company. In the event of nonpayment of an insured obligation issued by a consolidated VIE, the Company is obligated to pay principal and interest, when due, on the respective insured obligation only. The Company’s exposure to these consolidated VIEs is limited to the credit protection provided on insured obligations and any additional variable interests held by the Company.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Note 4: Variable Interest Entities (continued)

 

Nonconsolidated VIEs

The following tables present the Company’s maximum exposure to loss for nonconsolidated VIEs and carrying values of the assets and liabilities for its interests in these VIEs in its insurance operations as of December 31, 2025 and 2024. The maximum exposure to loss as a result of MBIA’s variable interests in VIEs is represented by insurance in force. Insurance in force is the maximum future payments of principal and interest which may be required under commitments to make payments on insured obligations issued by nonconsolidated VIEs. The Company has aggregated nonconsolidated VIEs based on the underlying credit exposure of the insured obligation. The nature of the Company’s variable interests in nonconsolidated VIEs is related to financial guarantees and any investments in obligations issued by nonconsolidated VIEs.

December 31, 2025

Carrying Value of Assets

Carrying Value of Liabilities

In millions

Maximum

Exposure

to Loss

 

Investments

 

Premiums

Receivable

 

Insurance Loss

Recoverable

 

Unearned

Premium

Revenue

 

Loss and Loss

Adjustment

Expense

Reserves

 

Insurance:

Global structured finance:

Mortgage-backed residential

$

729

$

29

$

4

$

22

$

3

$

234

Consumer asset-backed

58

-

-

-

-

1

Corporate asset-backed

212

-

1

-

1

-

 

Total global structured finance

 

 

999

 

 

 

29

 

 

 

5

 

 

 

22

 

 

 

4

 

 

 

235

 

Global public finance

 

 

189

 

 

 

-

 

 

 

3

 

 

 

-

 

 

 

2

 

 

 

-

 

Total insurance

 

$

1,188

 

 

$

29

 

 

$

8

 

 

$

22

 

 

$

6

 

 

$

235

 

 

 

 

 

December 31, 2024

 

 

 

 

Carrying Value of Assets

 

Carrying Value of Liabilities

In millions

 

Maximum

Exposure

to Loss

 

 

Investments

 

 

Premiums

Receivable

 

 

Insurance Loss

Recoverable

 

 

Unearned

Premium

Revenue

 

 

Loss and Loss

Adjustment

Expense

Reserves

 

Insurance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global structured finance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed residential

 

$

785

 

 

$

26

 

 

$

5

 

 

$

21

 

 

$

3

 

 

$

224

 

Consumer asset-backed

 

 

86

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3

 

Corporate asset-backed

 

 

358

 

 

 

-

 

 

 

2

 

 

 

-

 

 

 

2

 

 

 

-

 

Total global structured finance

 

 

1,229

 

 

 

26

 

 

 

7

 

 

 

21

 

 

 

5

 

 

 

227

 

Global public finance

 

 

196

 

 

 

-

 

 

 

3

 

 

 

-

 

 

 

3

 

 

 

-

 

Total insurance

 

$

1,425

 

 

$

26

 

 

$

10

 

 

$

21

 

 

$

8

 

 

$

227

 

v3.25.4
Insurance Premiums
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Insurance Premiums

Note 5: Insurance Premiums

The following tables present a roll forward of the Company’s premiums receivable for the years ended December 31, 2025 and 2024:

In millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

Premiums

 

 

 

 

 

Premiums

 

 

Changes in

 

 

Accretion of

 

 

Premiums

 

Receivable as of

 

 

Premium

 

 

from New

 

 

Expected

 

 

Premiums

 

 

Receivable as of

 

December 31,

 

 

Payments

 

 

Business

 

 

Term of

 

 

Receivable

 

 

December 31,

 

2024

 

 

Received

 

 

Written

 

 

Policies

 

 

Discount (1)

 

 

2025

 

$

133

 

 

$

(15

)

 

$

-

 

 

$

-

 

 

$

3

 

 

$

121

 

 

(1) - Recorded within premiums earned on the Company's consolidated statements of operations.

 

 

In millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

Premiums

 

 

 

 

 

Premiums

 

 

Changes in

 

 

Accretion of

 

 

Premiums

 

Receivable as of

 

 

Premium

 

 

from New

 

 

Expected

 

 

Premiums

 

 

Receivable as of

 

December 31,

 

 

Payments

 

 

Business

 

 

Term of

 

 

Receivable

 

 

December 31,

 

2023

 

 

Received

 

 

Written

 

 

Policies

 

 

Discount (1)

 

 

2024

 

$

146

 

 

$

(17

)

 

$

-

 

 

$

-

 

 

$

4

 

 

$

133

 

 

(1) - Recorded within premiums earned on the Company's consolidated statements of operations.

 

As of December 31, 2025 and 2024, the weighted average risk-free rates used to discount future installment premiums was 3.1% and 3.0%, respectively, and the weighted average expected collection term of the premiums receivable was 8.33 years and 8.57 years, respectively. As of December 31, 2025 and 2024, reinsurance premiums payable was $3 million and is included in “Other liabilities” in the Company’s consolidated balance sheets. The reinsurance premiums payable is accreted and paid to reinsurers as premiums due to MBIA are accreted and collected.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Note 5: Insurance Premiums (continued)

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:

 

 

Expected

 

 

 

Collection of

 

In millions

 

Premiums

 

Three months ending:

 

 

 

March 31, 2026

 

$

1

 

June 30, 2026

 

 

4

 

September 30, 2026

 

 

3

 

December 31, 2026

 

 

5

 

 

 

 

 

Twelve months ending:

 

 

 

December 31, 2027

 

 

12

 

December 31, 2028

 

 

12

 

December 31, 2029

 

 

11

 

December 31, 2030

 

 

10

 

 

 

 

 

Five years ending:

 

 

 

December 31, 2035

 

 

42

 

December 31, 2040

 

 

29

 

December 31, 2045 and thereafter

 

 

25

 

Total

 

$

154

 

 

The following table presents the unearned premium revenue balance and future expected premium earnings as of and for the periods presented:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expected

 

 

 

Unearned

 

 

Expected Future

 

 

 

 

 

Future

 

 

 

Premium

 

 

Premium Earnings

 

 

 

 

 

Premium

 

In millions

 

Revenue

 

 

Upfront

 

 

Installments

 

 

Accretion

 

 

Earnings

 

December 31, 2025

 

$

172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ending:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2026

 

 

166

 

 

$

3

 

 

$

3

 

 

$

1

 

 

$

7

 

June 30, 2026

 

 

160

 

 

 

3

 

 

 

3

 

 

 

1

 

 

 

7

 

September 30, 2026

 

 

155

 

 

 

2

 

 

 

3

 

 

 

1

 

 

 

6

 

December 31, 2026

 

 

151

 

 

 

2

 

 

 

2

 

 

 

1

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve months ending:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2027

 

 

133

 

 

 

9

 

 

 

9

 

 

 

3

 

 

 

21

 

December 31, 2028

 

 

117

 

 

 

8

 

 

 

8

 

 

 

3

 

 

 

19

 

December 31, 2029

 

 

104

 

 

 

6

 

 

 

7

 

 

 

3

 

 

 

16

 

December 31, 2030

 

 

92

 

 

 

5

 

 

 

7

 

 

 

3

 

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Five years ending:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2035

 

 

46

 

 

 

18

 

 

 

28

 

 

 

10

 

 

 

56

 

December 31, 2040

 

 

21

 

 

 

7

 

 

 

18

 

 

 

5

 

 

 

30

 

December 31, 2045 and thereafter

 

 

-

 

 

 

6

 

 

 

15

 

 

 

2

 

 

 

23

 

Total

 

 

 

 

$

69

 

 

$

103

 

 

$

33

 

 

$

205

 

v3.25.4
Loss and Loss Adjustment Expense Reserves
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Loss and Loss Adjustment Expense Reserves

Note 6: Loss and Loss Adjustment Expense Reserves

The Company’s insured portfolio management groups within its U.S. public finance insurance and international and structured finance insurance businesses (collectively, “IPM”) monitor the Company’s outstanding insured obligations with the objective of minimizing losses. IPM meets this objective by identifying issuers that, because of deterioration in credit quality or changes in the economic, regulatory or political environment, are at a heightened risk of defaulting on debt service of obligations insured by the Company. In such cases, IPM works with the issuer, trustee, bond counsel, servicer, underwriter and other interested parties in an attempt to alleviate or remedy the problem and avoid defaults on debt service payments. The Company typically requires the issuer, servicer (if applicable) and the trustee of insured obligations to furnish periodic financial and asset-related information, including audited financial statements, to IPM for review. IPM also monitors publicly available information related to insured obligations. Potential problems uncovered through this review, such as poor financial results, low fund balances, covenant or trigger violations and trustee or servicer problems, or other events that could have an adverse impact on the insured obligation, could result in an immediate surveillance review and an evaluation of possible remedial actions. IPM also monitors and evaluates the impact on issuers of general economic conditions, current and proposed legislation and regulations, political developments, as well as sovereign, state and municipal finances and budget developments.

 

The frequency and extent of IPM’s monitoring is based on the criteria and categories described below. Insured obligations that are judged to merit more frequent and extensive monitoring or remediation activities due to a deterioration in the underlying credit quality of the insured obligation or the occurrence of adverse events related to the underlying credit of the issuer are assigned to a surveillance category (“Caution List—Low,” “Caution List—Medium,” “Caution List—High” or “Classified List”) depending on the extent of credit deterioration or the nature of the adverse events. IPM monitors insured obligations assigned to a surveillance category more frequently and, if needed, develops a remediation plan to address any credit deterioration.

 

Remediation actions may involve, among other things, waivers or renegotiations of financial covenants or triggers, waivers of contractual provisions, the granting of consents, transfer of servicing, consideration of restructuring plans, acceleration, security or collateral enforcement, actions in bankruptcy or receivership, litigation and similar actions. The types of remedial actions pursued are based on the insured obligation’s risk type and the nature and scope of the event giving rise to the remediation. As part of any such remedial actions, the Company seeks to improve its security position and to obtain concessions from the issuer of the insured obligation. From time to time, the issuer of an insured obligation by the Company may, with the consent of the Company, restructure the insured obligation by extending the term, increasing or decreasing the par amount or decreasing the related interest rate, with the Company insuring the restructured obligation.

 

The Company does not establish any case basis reserves for insured obligations that are assigned to “Caution List—Low,” “Caution List—Medium” or “Caution List—High.” In the event MBIA expects to pay a claim with respect to an insured transaction, it places the insured transaction on its “Classified List” and establishes a case basis reserve. The following provides a description of each surveillance category:

 

“Caution List—Low”—Includes issuers where debt service protection is adequate under current and anticipated circumstances. However, debt service protection and other measures of credit support and stability may have declined since the transaction was underwritten and the issuer is less able to withstand further adverse events. Transactions in this category generally require more frequent monitoring than transactions that do not appear within a surveillance category. IPM subjects issuers in this category to heightened scrutiny.

 

“Caution List—Medium”—Includes issuers where debt service protection is adequate under current and anticipated circumstances, although adverse trends have developed and are more pronounced than for “Caution List – Low.” Issuers in this category may have breached one or more covenants or triggers. These issuers are more closely monitored by IPM but generally take remedial action on their own.

 

“Caution List—High”—Includes issuers where more proactive remedial action is needed but where no defaults on debt service payments are expected. Issuers in this category exhibit more significant weaknesses, such as low debt service coverage, reduced or insufficient collateral protection or inadequate liquidity, which could lead to debt service defaults in the future. Issuers in this category may have breached one or more covenants or triggers and have not taken conclusive remedial action. Therefore, IPM adopts a remediation plan and takes more proactive remedial actions.

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Note 6: Loss and Loss Adjustment Expense Reserves (continued)

“Classified List”—Includes all insured obligations where the Company has paid a claim or where a claim payment is expected. It also includes insured obligations where a significant LAE payment has been made, or is expected to be made, to mitigate a claim payment. This may include property improvements, bond purchases and commutation payments. Generally, IPM is actively remediating these credits where possible, including restructurings through legal proceedings, usually with the assistance of specialist counsel and advisors.

 

The establishment of the appropriate level of loss reserves is an inherently uncertain process involving numerous assumptions, estimates and subjective judgments by management that depend primarily on the nature of the underlying insured obligation. These variables include the nature and creditworthiness of the issuers of the insured obligations, expected recovery rates on unsecured obligations, the projected cash flow or market value of any assets pledged as collateral on secured obligations, and the expected rates of recovery, cash flow or market values on such obligations or other expected consideration. Factors that may affect the actual ultimate realized losses for any policy include economic conditions and trends, political developments, levels of interest rates, borrower behavior, the default rate and salvage values of specific collateral or other expected consideration, and the Company’s ability to enforce contractual rights through litigation and otherwise, including the collection of contractual interest on claim payments. The Company’s remediation strategy for an insured obligation that has defaulted or is expected to default may also have an impact on the Company’s loss reserves.

 

In establishing case basis loss reserves, the Company calculates the present value of probability-weighted estimated loss payments, net of estimated recoveries, using a discount rate equal to the risk-free rate applicable to the currency and the weighted average remaining life of the insurance contract as required by accounting principles for financial guarantee contracts. The Company applies yields on U.S. Treasury offerings to discount loss reserves. Significant changes in discount rates from period to period may have a material impact on the present value of the Company’s loss reserves and expected recoveries. In addition, if the Company were to apply different discount rates, its case basis reserves may have been higher or lower than those established as of December 31, 2025. For example, a higher discount rate applied to expected future payments would have decreased the amount of a case basis reserve established by the Company and a lower rate would have increased the amount of a reserve established by the Company. Similarly, a higher discount rate applied to the potential future recoveries would have decreased the amount of a loss recoverable established by the Company and a lower rate would have increased the amount of a loss recoverable established by the Company.

U.S. Public Finance Insurance

U.S. public finance insured transactions consist of 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. The Company estimates future losses by using probability-weighted cash flow scenarios that are customized to each insured transaction. Future loss estimates consider debt service due for each insured transaction, which includes par outstanding and interest due, as well as recoveries for such payments, if any. Gross par outstanding for capital appreciation bonds represents the par amount at the time of issuance of the insurance policy.

PREPA

In formulating loss reserves and recoveries for PREPA, estimates in the Company’s probability-weighted scenarios include assumptions related to the nature, value, and timing of net cash flows considering the following: environmental, economic, and political developments on the island; litigation and ongoing discussions with creditors and obligors on the Title III proceedings; contractual debt service payments; any existing settlement agreements or proposals and deviations from these proposals; the remediation strategy for insured obligations that have defaulted or are expected to default; and values of other obligations of the issuer. Refer to “Note 1: Business Developments and Risks and Uncertainties” for further information on the Company’s PREPA exposure.

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Note 6: Loss and Loss Adjustment Expense Reserves (continued)

International and Structured Finance Insurance

The international and structured finance insurance segment’s case basis reserves and insurance loss recoveries recorded in accordance with GAAP do not include reserves and recoveries on consolidated VIEs, since they are eliminated in consolidation.

RMBS Case Basis Reserves (Financial Guarantees)

The Company’s RMBS case basis reserves primarily relate to RMBS backed by alternative A-paper and subprime mortgage loans. The Company calculated RMBS case basis reserves as of December 31, 2025 using a process called the Roll Rate Methodology (“Roll Rate Methodology”). The Roll Rate Methodology is a multi-step process using databases of loan level information, proprietary internal cash flow models, and commercially available models to estimate potential losses and recoveries on insured bonds. Roll Rate is defined as the probability that current loans become delinquent and subsequently default and loans in the delinquent pipeline are charged-off or liquidated. The loss reserve estimates are based on a probability-weighted average of potential scenarios of loan losses. Additional data used for both first and second-lien loans include historic averages of deal specific voluntary prepayment rates, forward projections of the Secured Overnight Financing Rate ("SOFR"), and historic averages of deal-specific loss severities. Where applicable, the Company factors in termination scenarios when clean up calls are imminent.

In calculating ultimate cumulative losses for RMBS, the Company estimates the amount of first-lien loans that are expected to be liquidated in the future through foreclosure or short sale, and estimates the amount of second-lien loans that are expected to be charged-off (deemed uncollectible by servicers of the transactions). The time to liquidation for a defaulted loan is specific to the loan’s delinquency bucket.

For all RMBS transactions, cash flow models consider allocations and other structural aspects and claims against MBIA Corp.’s insurance policy consistent with such policy’s terms and conditions. The estimated net claims from the procedure above are then discounted using a risk-free rate to a net present value reflecting MBIA’s general obligation to pay claims over time and not on an accelerated basis.

The Company monitors RMBS portfolio performance on a monthly basis against projected performance, reviewing delinquencies, roll rates, and prepayment rates (including voluntary and involuntary). However, loan performance remains difficult to predict and losses may exceed expectations. In the event of a material deviation in actual performance from projected performance, the Company would increase or decrease the case basis reserves accordingly and re-evaluate its assumptions.

RMBS Recoveries

The Company’s RMBS recoveries relate to structural features within the trust structures that allow for the Company to be reimbursed for prior claims paid. These reimbursements for specific trusts include recoveries that are generated from the excess spread of the transactions. Excess spread within insured RMBS securitizations is the difference between interest inflows on mortgage loan collateral and interest outflows on the insured RMBS notes.

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Note 6: Loss and Loss Adjustment Expense Reserves (continued)

Summary of Loss and LAE Reserves and Recoveries

The following table summarizes the Company’s loss and LAE reserves and recoveries before consolidated VIE eliminations, along with amounts that were eliminated as a result of consolidating VIEs:

 

 

 

 

As of December 31, 2025

 

 

As of December 31, 2024

 

In millions

Balance Sheet Line Item

 

 

Balance Sheet Line Item

 

 

 

 

Insurance loss recoverable

 

 

Loss and LAE reserves (1)

 

 

Insurance loss recoverable

 

 

Loss and LAE reserves (1)

 

U.S. Public Finance Insurance

$

22

 

 

$

219

 

 

$

165

 

 

$

299

 

International and Structured Finance Insurance:

 

 

 

 

 

 

 

 

 

 

 

 

Before VIE eliminations

 

21

 

 

 

229

 

 

 

23

 

 

 

238

 

 

VIE eliminations

 

-

 

 

 

6

 

 

 

(3

)

 

 

(11

)

 

 

Total international and structured finance insurance

 

21

 

 

 

235

 

 

 

20

 

 

 

227

 

 

Total

$

43

 

 

$

454

 

 

$

185

 

 

$

526

 

 

 

(1) - Amounts are net of estimated recoveries of expected future claims.

Changes in Loss and LAE Reserves

Loss and LAE reserves represent the Company’s estimate of future claims and LAE payments, net of any future recoveries of such payments. The following tables present changes in the Company’s loss and LAE reserves for the years ended December 31, 2025 and 2024. Changes in loss and LAE reserves, with the exception of loss and LAE payments, are recorded within “Losses and loss adjustment” expenses in the Company’s consolidated statements of operations. As of December 31, 2025 and 2024, the weighted average risk-free rate used to discount the Company’s loss reserves (claim liability) was 3.79% and 4.50%, respectively. LAE reserves are generally expected to be settled within a one-year period and are not discounted. As of December 31, 2025 and 2024, the Company’s gross loss and LAE reserves included $15 million and $19 million, respectively, related to LAE.

 

In millions

 

 

Changes in Loss and LAE Reserves for the Year Ended December 31, 2025

 

 

 

 

Gross Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Loss

 

and LAE

 

 

 

 

 

Accretion

 

 

 

 

 

 

 

 

Changes in

 

 

and LAE

 

Reserves as of

 

 

Loss

 

 

of Claim

 

 

Changes in

 

 

 

 

 

Unearned

 

 

Reserves as of

 

December 31,

 

 

and LAE

 

 

Liability

 

 

Discount

 

 

Changes in

 

 

Premium

 

 

December 31,

 

2024

 

 

Payments

 

 

Discount

 

 

Rates

 

 

Assumptions (1)

 

 

Revenue

 

 

2025

 

$

526

 

 

$

(145

)

 

$

19

 

 

$

12

 

 

$

41

 

 

$

1

 

 

$

454

 

 

 

(1) - Includes changes in amount and timing of estimated payments and recoveries.

 

 

In millions

 

 

Changes in Loss and LAE Reserves for the Year Ended December 31, 2024

 

 

 

 

Gross Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Loss

 

and LAE

 

 

 

 

 

Accretion

 

 

 

 

 

 

 

 

Changes in

 

 

and LAE

 

Reserves as of

 

 

Loss

 

 

of Claim

 

 

Changes in

 

 

 

 

 

Unearned

 

 

Reserves as of

 

December 31,

 

 

and LAE

 

 

Liability

 

 

Discount

 

 

Changes in

 

 

Premium

 

 

December 31,

 

2023

 

 

Payments

 

 

Discount

 

 

Rates

 

 

Assumptions (1)

 

 

Revenue

 

 

2024

 

$

473

 

 

$

(157

)

 

$

19

 

 

$

(19

)

 

$

212

 

 

$

(2

)

 

$

526

 

 

(1) - Includes changes in amount and timing of estimated payments and recoveries.

 

The decrease in the Company's loss and LAE reserves during 2025 was primarily due to claim payments on PREPA and a U.S. public finance lease-backed transaction, as well as updated PREPA loss reserve scenarios and weightings for possible settlement outcomes. This decrease was partially offset by the reclassification of expected recoveries related to paid claims and extending the estimated timing of a PREPA settlement. Refer to "Note 1: Business Developments and Risks and Uncertainties" for further information on PREPA.

The increase in the Company’s loss and LAE reserves during 2024 was primarily due to assumption changes for National's PREPA reserves, partially offset by claim payments on PREPA. In addition, National established reserves on a U.S. public finance lease-backed transaction.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 6: Loss and Loss Adjustment Expense Reserves (continued)

Changes in Insurance Loss Recoverable

Insurance loss recoverable represents the Company’s estimate of expected recoveries on paid claims and LAE. The Company recognizes potential recoveries on paid claims based on the probability-weighted net cash inflows present valued at applicable risk-free rates as of the measurement date. The following tables present changes in the Company’s insurance loss recoverable for the years ended December 31, 2025 and 2024. Changes in insurance loss recoverable with the exception of collections, are recorded within “Losses and loss adjustment” expenses in the Company’s consolidated statements of operations.

 

 

 

 

 

 

 

Changes in Insurance Loss Recoverable

 

 

 

 

 

 

 

 

 

for the Year Ended December 31, 2025

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

Recoverable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recoverable

 

 

 

 

 

as of

 

 

 

 

 

Accretion

 

 

Changes in

 

 

 

 

 

as of

 

 

 

 

 

December 31,

 

 

Collections

 

 

of

 

 

Discount

 

 

Changes in

 

 

December 31,

 

In millions

 

 

2024

 

 

for Cases

 

 

Recoveries

 

 

Rates

 

 

Assumptions

 

 

2025

 

Insurance loss recoverable

 

 

$

185

 

 

$

(235

)

 

$

6

 

 

$

2

 

 

$

85

 

 

$

43

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in Insurance Loss Recoverable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

for the Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

Recoverable

 

 

 

 

 

 

 

 

 

 

 

 

Recoverable

 

 

 

 

 

as of

 

 

 

 

 

Accretion

 

 

Changes in

 

 

 

 

 

 

as of

 

 

 

 

 

December 31,

 

 

Collections

 

 

of

 

 

Discount

 

 

Changes in

 

 

December 31,

 

In millions

 

 

2023

 

 

for Cases

 

 

Recoveries

 

 

Rates

 

 

Assumptions

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance loss recoverable

 

 

$

 

183

 

 

$

 

(16

)

 

$

 

7

 

 

$

 

-

 

 

$

 

11

 

 

$

 

185

 

The decrease in the Company’s insurance loss recoverable during 2025 was primarily from the sale of PREPA Custodial Receipts associated with the transfer of certain of National's PREPA-related bankruptcy claims and unwrapped PREPA bonds received via subrogation for fully paid secondary insured claims. This decrease was partially offset by the reclassification from loss and LAE of expected recoveries related to paid claims for PREPA, and a U.S. public finance lease-backed transaction.

The increase in the Company’s insurance loss recoverable during 2024 was primarily due to reclassifying expected PREPA recoveries from loss and LAE reserves on paid claims, partially offset by assumption changes related to PREPA reserves and from collections of recoveries.

Loss and LAE Activity

For 2025, the incurred benefit was primarily related to the sale of PREPA Custodial Receipts at a price above prior estimates and updated scenarios and weightings for potential PREPA settlement outcomes. This benefit was partially offset by extending the estimated timing of a PREPA settlement, accretion of loss reserves, and a decline in risk-free rates, which caused future liabilities, net of recoveries to increase, primarily related to the Company's insured RMBS transactions.

For 2024, the incurred loss primarily related to updated PREPA scenarios to reflect developments in the then PREPA remediation and extending the timing of resolution. In addition, the incurred loss related to reserves on a U.S. public finance lease-backed transaction.

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 6: Loss and Loss Adjustment Expense Reserves (continued)

For 2023, the incurred loss primarily related to updated PREPA scenarios to reflect the then PSA, which resulted in lower net expected recoveries. Changes in scenario assumptions also included extending the effective date of a settlement until 2024. In addition, for 2023, the incurred loss included the termination of a first-lien RMBS insured transaction.

Costs associated with remediating insured obligations assigned to the Company’s surveillance categories are recorded as LAE and are included in “Losses and loss adjustment” expenses on the Company’s consolidated statements of operations. For 2025, 2024 and 2023, LAE related to remediating insured obligations were $5 million, $17 million and $6 million, respectively.

Surveillance Categories

The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of December 31, 2025:

 

 

 

 

 

 

Surveillance Categories

 

 

 

 

 

 

Caution

 

 

Caution

 

 

Caution

 

 

 

 

 

 

 

 

 

 

 

 

List

 

 

List

 

 

List

 

 

Classified

 

 

 

 

$ in millions

 

Low

 

 

Medium

 

 

High

 

 

List

 

 

Total

 

Number of policies

 

 

20

 

 

 

-

 

 

 

-

 

 

 

87

 

 

 

107

 

Number of issues (1)

 

 

7

 

 

 

-

 

 

 

-

 

 

 

76

 

 

 

83

 

Remaining weighted average contract period (in years)

 

 

3.5

 

 

 

-

 

 

 

-

 

 

 

6.1

 

 

 

5.6

 

Gross insured contractual payments outstanding: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

$

356

 

 

$

-

 

 

$

-

 

 

$

1,329

 

 

$

1,685

 

 

 

Interest

 

 

1,054

 

 

 

-

 

 

 

-

 

 

 

478

 

 

 

1,532

 

 

 

 

Total

 

$

1,410

 

 

$

-

 

 

$

-

 

 

$

1,807

 

 

$

3,217

 

Gross Claim Liability (3)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

786

 

 

$

786

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Potential Recoveries (4)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

281

 

 

 

281

 

 

Discount, net (5)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

101

 

 

 

101

 

Net claim liability (recoverable)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

404

 

 

$

404

 

Unearned premium revenue

 

$

1

 

 

$

-

 

 

$

-

 

 

$

8

 

 

$

9

 

Reinsurance recoverable on paid and unpaid losses (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

14

 

 

(1) - An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt.

(2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.

(3) - The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position.

(4) - Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position.

(5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries.

(6) - Included in "Other assets" on the Company's consolidated balance sheets.

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 6: Loss and Loss Adjustment Expense Reserves (continued)

The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of December 31, 2024:

 

 

 

 

 

 

Surveillance Categories

 

 

 

 

 

 

Caution

 

 

Caution

 

 

Caution

 

 

 

 

 

 

 

 

 

 

 

 

List

 

 

List

 

 

List

 

 

Classified

 

 

 

 

$ in millions

 

Low

 

 

Medium

 

 

High

 

 

List

 

 

Total

 

Number of policies

 

 

29

 

 

 

-

 

 

 

-

 

 

 

90

 

 

 

119

 

Number of issues (1)

 

 

10

 

 

 

-

 

 

 

-

 

 

 

76

 

 

 

86

 

 

Remaining weighted average contract period (in years)

 

 

5.7

 

 

 

-

 

 

 

-

 

 

 

6.4

 

 

 

6.2

 

Gross insured contractual payments outstanding: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

$

717

 

 

$

-

 

 

$

-

 

 

$

1,509

 

 

$

2,226

 

 

 

Interest

 

 

1,307

 

 

 

-

 

 

 

-

 

 

 

569

 

 

 

1,876

 

 

 

 

Total

 

$

2,024

 

 

$

-

 

 

$

-

 

 

$

2,078

 

 

$

4,102

 

Gross Claim Liability (3)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

906

 

 

$

906

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Potential Recoveries (4)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

467

 

 

 

467

 

 

Discount, net (5)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

107

 

 

 

107

 

Net claim liability (recoverable)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

332

 

 

$

332

 

Unearned premium revenue

 

$

4

 

 

$

-

 

 

$

-

 

 

$

9

 

 

$

13

 

Reinsurance recoverable on paid and unpaid losses (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

16

 

 

(1) - An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt.

(2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.

(3) - The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position.

(4) - Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position.

(5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries.

(6) - Included in "Other assets" on the Company's consolidated balance sheets.

v3.25.4
Fair Value Of Financial Instruments
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Fair Value Of Financial Instruments

Note 7: Fair Value of Financial Instruments

Fair Value Measurement

Financial Assets and Liabilities

Financial assets held by the Company primarily consist of investments in debt and equity securities and loans receivables at fair value. Financial liabilities issued by the Company primarily consist of debt issued for general corporate purposes within its corporate segment, MTNs, investment agreements, and debt issued by consolidated VIEs.

Valuation Techniques

Valuation techniques for financial instruments measured at fair value are described below.

Fixed-Maturity Securities Held as Available-For-Sale, Investments Carried at Fair Value and Short-term Investments

These investments include investments in U.S. Treasury and government agencies, state and municipal bonds, foreign governments, corporate obligations, MBS, ABS, money market securities, equity investments and loans carried at fair value.

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 7: Fair Value of Financial Instruments (continued)

Substantially all of these investments are valued based on recently executed transaction prices or quoted market prices by independent third parties, including pricing services and brokers. When quoted market prices are not available, fair value is generally determined using quoted prices of similar investments or a valuation model based on observable and unobservable inputs. Inputs vary depending on the type of investment. Observable inputs include contractual cash flows, interest rate yield curves, credit default swap (“CDS”) spreads, prepayment and volatility scores, diversity scores, cross-currency basis index spreads, and credit spreads for structures similar to the financial instrument in terms of issuer, maturity and seniority. Unobservable inputs include cash flow projections, the value of any credit enhancement and currently for certain equity investments, a discount rate, EBITDA multiple and EBITDA royalty share.

Investments based on quoted market prices of identical investments in active markets are classified as Level 1 of the fair value hierarchy. Level 1 investments generally consist of U.S. Treasury and government agency, money market securities and certain equity investments. Quoted market prices of investments in less active markets, as well as investments which are valued based on other than quoted prices for which the inputs are observable, such as interest rate yield curves, are categorized in Level 2 of the fair value hierarchy. Investments that contain significant inputs that are not observable are categorized as Level 3.

Cash and Cash Equivalents

The carrying amounts of cash and cash equivalents approximate fair value due to the short-term nature and credit worthiness of these instruments and are categorized in Level 1 of the fair value hierarchy.

Variable Interest Entity Loans Receivable at Fair Value

Loans receivable at fair value are assets held by a consolidated VIE consisting of residential mortgage loans and are categorized in Level 3 of the fair value hierarchy. Fair values of residential mortgage loans are determined using quoted prices for similar MBS liabilities, adjusted for the fair values of the financial guarantees provided by MBIA Corp. The fair values of the financial guarantees consider expected claim payments, net of recoveries, under MBIA Corp.’s policies.

Medium-term Notes at Fair Value

The fair values of certain MTNs are based on quoted market prices provided by third-party sources, where available. When quoted market prices are not available, the Company applies a matrix pricing grid to determine fair value based on the quoted market prices received for similar instruments and considering the MTNs’ stated maturity and interest rate. Nonperformance risk is included in the quoted market prices and the matrix pricing grid. MTNs are categorized in Level 3 of the fair value hierarchy and do not include accrued interest.

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 7: Fair Value of Financial Instruments (continued)

Variable Interest Entity Debt

The fair values of VIE debt are determined based on recently executed transaction prices or quoted prices where observable. When position-specific quoted prices are not observable, fair values are based on quoted prices of similar securities. Fair values based on quoted prices of similar securities may be adjusted for factors unique to the securities, including any credit enhancement. Observable inputs include interest rate yield curves, bond spreads of similar securities and MBIA Corp.’s CDS spreads. Unobservable inputs include the value of any credit enhancement. VIE debt are categorized in Level 3 of the fair value hierarchy based on the lowest level input that is significant to the fair value measurement in its entirety.

Derivatives

A VIE consolidated by the Company entered into a derivative instrument consisting of a cross currency swap that as of December 31, 2025 and 2024 had outstanding notional amounts of $28 million and $36 million, respectively. The cross currency swap was entered into to manage the variability in cash flows resulting from fluctuations in foreign currency rates. The fair value of the VIE derivative was determined based on the valuation provided by an independent third-party, which is included in “Liabilities of consolidated variable interest entities – Other liabilities” on the Company’s consolidated balance sheets. As the significant inputs are unobservable, the derivative contract is categorized in Level 3 of the fair value hierarchy.

Significant Unobservable Inputs

The following tables provide quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024:

 

 

 

 

Fair Value as of

 

 

 

 

 

 

Range

 

 

 

December 31,

 

 

 

 

 

 

(Weighted

In millions

 

2025

 

 

Valuation Techniques

 

Unobservable Input

 

Average)

Assets:

 

 

 

 

 

 

 

 

 

 

Equity Investments

 

$

33

 

 

Discounted cash flow

 

Discount rate (1)

 

 

 

 

 

 

 

 

 

 

EBITDA multiple (1)

 

 

 

 

 

 

 

 

Type certificate

 

Discount rate (1)

 

 

 

 

 

 

 

 

 

 

EBITDA royalty share (1)

 

 

 

Loans carried at fair value

 

 

17

 

 

Discounted cash flow

 

Discount rate (1)

 

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

Loans receivable at fair value

 

 

34

 

 

Market prices of similar liabilities adjusted for financial guarantees provided to VIE obligations

 

Impact of financial guarantee

 

3% to 3% (3%) (2)

 

(1) - Ranges for discount rate, EBITDA multiple and EBITDA royalty share are not meaningful.

(2) - Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. The percentage is negative when the guarantees are in a net receivable position and positive when they are in a net payable position.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 7: Fair Value of Financial Instruments (continued)

 

 

 

 

Fair Value as of

 

 

 

 

 

 

Range

 

 

 

December 31,

 

 

 

 

 

 

(Weighted

In millions

 

2024

 

 

Valuation Techniques

 

Unobservable Input

 

Average)

Assets:

 

 

 

 

 

 

 

 

 

 

Equity Investments

 

$

52

 

 

Discounted cash flow

 

Discount rate (1)

 

 

 

 

 

 

 

 

 

 

EBITDA multiple (1)

 

 

 

 

 

 

 

 

Type certificate

 

Discount rate (1)

 

 

 

 

 

 

 

 

 

 

EBITDA royalty share (1)

 

 

 

Loans carried at fair value

 

 

15

 

 

Discounted cash flow

 

Discount rate (1)

 

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

Loans receivable at fair value

 

 

28

 

 

Market prices of similar liabilities adjusted for financial guarantees provided to VIE obligations

 

Impact of financial guarantee

 

27% to 27% (27%) (2)

 

(1) - Ranges for discount rate, EBITDA multiple and EBITDA royalty share are not meaningful.

(2) - Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. The percentage is negative when the guarantees are in a net receivable position and positive when they are in a net payable position.

 

Sensitivity of Significant Unobservable Inputs

The significant unobservable inputs used in the fair value measurement of the Company’s equity investments at fair value are the discount rate, EBITDA multiple and EBITDA royalty share. The fair value of equity investments is determined as the mid-point of a range of valuation scenarios. If there had been lower or higher EBITDA multiple or EBITDA royalty share, the value of equity investments would have been lower or higher, respectively. If there had been a lower or higher discount rate, the value of equity investments would have been higher or lower, respectively.

The significant unobservable input used in the fair value measurement of the loans carried at fair value is the discount rate. The loans carried at fair value is determined by discounting cash flows. The discount rate includes the credit spread which primarily reflects the credit quality of the obligor. If there had been a lower or higher discount rate, the value of loans carried at fair value would have been higher or lower, respectively.

The significant unobservable input used in the fair value measurement of the Company’s residential loans receivable at fair value of consolidated VIEs is the impact of the financial guarantee. The fair value of residential loans receivable is calculated by subtracting the value of the financial guarantee from the market value of similar instruments to that of the VIE liabilities. The value of a financial guarantee is estimated by the Company as the present value of expected cash payments, net of recoveries, under the policy. If there had been a lower expected cash flow on the underlying loans receivable of the VIE, the value of the financial guarantee provided by the Company under the insurance policy would have been higher. This would have resulted in a lower fair value of the residential loans receivable in relation to the obligations of the VIE.

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 7: Fair Value of Financial Instruments (continued)

 

Fair Value Measurements

 

The following tables present the fair value of the Company’s assets (including short-term investments) and liabilities measured and reported at fair value on a recurring basis as of December 31, 2025 and 2024:

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

 

 

 

 

 

 

 

 

 

 

Quoted Prices in

 

 

Significant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active Markets

 

 

Other

 

 

Significant

 

 

 

 

 

 

 

 

 

 

 

for Identical

 

 

Observable

 

 

Unobservable

 

 

Balance as of

 

 

 

 

 

 

 

 

Assets

 

 

Inputs

 

 

Inputs

 

 

December 31,

 

 

In millions

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

2025

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency

 

$

473

 

 

$

-

 

 

$

-

 

 

$

473

 

 

 

State and municipal bonds

 

 

-

 

 

 

100

 

 

 

-

 

 

100

 

 

 

Foreign governments

 

 

-

 

 

 

5

 

 

 

-

 

 

5

 

 

 

Corporate obligations

 

 

-

 

 

 

415

 

 

 

18

 

(1)

 

433

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

-

 

 

 

117

 

 

 

-

 

 

117

 

 

 

 

Residential mortgage-backed non-agency

 

 

-

 

 

 

21

 

 

 

-

 

 

21

 

 

 

 

Commercial mortgage-backed

 

 

-

 

 

 

18

 

 

 

-

 

 

18

 

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

-

 

 

 

49

 

 

 

-

 

 

49

 

 

 

 

Other asset-backed

 

 

-

 

 

 

252

 

 

 

-

 

 

252

 

 

 

 

 

Total fixed-maturity investments

 

 

473

 

 

 

977

 

 

 

18

 

 

 

1,468

 

 

Money market securities

 

 

109

 

 

 

-

 

 

 

-

 

 

 

109

 

 

Equity investments

 

 

47

 

 

 

7

 

 

 

33

 

 

 

97

 

(2)

Cash and cash equivalents

 

 

69

 

 

 

-

 

 

 

-

 

 

 

69

 

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

 

2

 

 

 

-

 

 

 

-

 

 

 

2

 

 

 

Loans receivable at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential loans receivable

 

 

-

 

 

 

-

 

 

 

34

 

 

 

34

 

 

Total assets

 

$

700

 

 

$

984

 

 

$

85

 

 

$

1,779

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Medium-term notes

 

$

-

 

 

$

-

 

 

$

46

 

$

46

 

 

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable interest entity notes

 

 

-

 

 

 

-

 

 

 

25

 

 

 

25

 

 

 

Currency derivatives

 

 

-

 

 

 

-

 

 

 

12

 

 

 

12

 

 

Total liabilities

 

$

-

 

 

$

-

 

 

$

83

 

 

$

83

 

 

 

(1) - Includes loans carried at fair value of $17 million.

(2) - Includes $10 million of an exchange-traded bond fund that seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield corporate bonds. The fund is measured at fair value by applying the net asset value per share practical expedient, and is not required to be classified in the fair value hierarchy.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 7: Fair Value of Financial Instruments (continued)

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

 

 

 

 

 

 

 

 

Quoted Prices in

 

 

Significant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active Markets

 

 

Other

 

 

Significant

 

 

 

 

 

 

 

 

 

 

 

for Identical

 

 

Observable

 

 

Unobservable

 

 

Balance as of

 

 

 

 

 

 

 

 

Assets

 

 

Inputs

 

 

Inputs

 

 

December 31,

 

 

In millions

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

2024

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency

 

$

481

 

 

$

-

 

 

$

-

 

 

$

481

 

 

 

State and municipal bonds

 

 

-

 

 

 

102

 

 

 

-

 

 

102

 

 

 

Foreign governments

 

 

-

 

 

 

10

 

 

 

-

 

 

10

 

 

 

Corporate obligations

 

 

-

 

 

 

435

 

 

 

16

 

(1)

 

451

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

-

 

 

 

111

 

 

 

-

 

 

 

111

 

 

 

 

Residential mortgage-backed non-agency

 

 

-

 

 

 

41

 

 

 

-

 

 

41

 

 

 

 

Commercial mortgage-backed

 

 

-

 

 

 

7

 

 

 

-

 

 

7

 

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

-

 

 

 

101

 

 

 

-

 

 

101

 

 

 

 

Other asset-backed

 

 

-

 

 

 

52

 

 

 

-

 

 

52

 

 

 

 

 

Total fixed-maturity investments

 

 

481

 

 

 

859

 

 

 

16

 

 

 

1,356

 

 

Money market securities

 

 

181

 

 

 

-

 

 

 

-

 

 

 

181

 

 

Equity investments

 

 

48

 

 

 

7

 

 

 

52

 

 

 

117

 

(2)

Cash and cash equivalents

 

 

84

 

 

 

-

 

 

 

-

 

 

 

84

 

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

 

3

 

 

 

-

 

 

 

-

 

 

 

3

 

 

 

Loans receivable at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential loans receivable

 

 

-

 

 

 

-

 

 

 

28

 

 

 

28

 

 

Total assets

 

$

797

 

 

$

866

 

 

$

96

 

 

$

1,769

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Medium-term notes

 

$

-

 

 

$

-

 

 

$

35

 

$

35

 

 

Other liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insured credit derivatives

 

 

-

 

 

 

1

 

 

 

-

 

 

 

1

 

 

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable interest entity notes

 

 

-

 

 

 

-

 

 

 

31

 

 

 

31

 

 

 

Currency derivatives

 

 

-

 

 

 

-

 

 

 

6

 

 

6

 

 

Total liabilities

 

$

-

 

 

$

1

 

 

$

72

 

 

$

73

 

 

 

(1) - Includes loans carried at fair value of $15 million.

(2) - Includes $10 million of an exchange-traded bond fund that seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield corporate bonds. The fund is measured at fair value by applying the net asset value per share practical expedient, and is not required to be classified in the fair value hierarchy.

 

Level 3 assets at fair value as of December 31, 2025 and 2024 represented approximately 5% of total assets measured at fair value. Level 3 liabilities at fair value as of December 31, 2025 and 2024 represented approximately 100% and 99%, respectively, of total liabilities measured at fair value.

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 7: Fair Value of Financial Instruments (continued)

The following tables present the fair values and carrying values of the Company’s assets and liabilities that are disclosed at fair value but not reported at fair value on the Company’s consolidated balance sheets as of December 31, 2025 and 2024. The majority of the financial assets and liabilities for which the Company requires fair value reporting or disclosures are valued based on the Company’s or a third party’s estimate of discounted cash flows or quoted market values for identical or similar products.

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

 

 

 

 

 

 

 

 

 

 

Quoted Prices in

 

 

Significant

 

 

Significant

 

 

Fair Value

 

 

Carry Value

 

 

 

 

 

Active Markets for

 

 

Other Observable

 

 

Unobservable

 

 

Balance as of

 

 

Balance as of

 

 

 

 

 

Identical Assets

 

 

Inputs

 

 

Inputs

 

 

December 31,

 

 

December 31,

 

 

In millions

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

2025

 

 

2025

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

 

$

-

 

 

$

-

 

 

$

1

 

 

$

1

 

 

$

1

 

 

Total assets

 

$

-

 

 

$

-

 

 

$

1

 

 

$

1

 

 

$

1

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

$

-

 

 

$

242

 

 

$

-

 

 

$

242

 

 

$

2,843

 

 

 

Medium-term notes

 

 

-

 

 

 

-

 

 

 

275

 

 

 

275

 

 

 

424

 

(1)

 

Investment agreements

 

 

-

 

 

 

-

 

 

 

187

 

 

 

187

 

 

 

174

 

 

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable interest entity loans payable

 

 

-

 

 

 

-

 

 

 

7

 

 

 

7

 

 

 

7

 

 

Total liabilities

 

$

-

 

 

$

242

 

 

$

469

 

 

$

711

 

 

$

3,448

 

 

Financial Guarantees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross liability (recoverable)

 

$

-

 

 

$

-

 

 

$

817

 

 

$

817

 

 

$

583

 

 

 

Ceded recoverable (liability)

 

 

-

 

 

 

-

 

 

 

19

 

 

 

19

 

 

 

16

 

 

(1) - The carry value includes complex interest calculations for an MTN feature that is accounted for as a separate derivative and reported together with the host contract. As of December 31, 2025, the Company had an embedded derivative liability of $1 million.

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

 

 

 

 

 

 

 

 

 

 

Quoted Prices in

 

 

Significant

 

 

Significant

 

 

Fair Value

 

 

Carry Value

 

 

 

 

 

Active Markets for

 

 

Other Observable

 

 

Unobservable

 

 

Balance as of

 

 

Balance as of

 

 

 

 

 

Identical Assets

 

 

Inputs

 

 

Inputs

 

 

December 31,

 

 

December 31,

 

 

In millions

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

2024

 

 

2024

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

 

$

-

 

 

$

-

 

 

$

1

 

 

$

1

 

 

$

1

 

 

Total assets

 

$

-

 

 

$

-

 

 

$

1

 

 

$

1

 

 

$

1

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

$

-

 

 

$

305

 

 

$

-

 

 

$

305

 

 

$

2,741

 

 

 

Medium-term notes

 

 

-

 

 

 

-

 

 

 

217

 

 

 

217

 

 

 

403

 

(1)

 

Investment agreements

 

 

-

 

 

 

-

 

 

 

217

 

 

 

217

 

 

 

204

 

 

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable interest entity loans payable

 

 

-

 

 

 

-

 

 

 

12

 

 

 

12

 

 

 

12

 

 

Total liabilities

 

$

-

 

 

$

305

 

 

$

446

 

 

$

751

 

 

$

3,360

 

 

Financial Guarantees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross liability (recoverable)

 

$

-

 

 

$

-

 

 

$

764

 

 

$

764

 

 

$

540

 

 

 

Ceded recoverable (liability)

 

 

-

 

 

 

-

 

 

 

19

 

 

 

19

 

 

 

18

 

 

(1) - The carry value includes complex interest calculations for an MTN feature that is accounted for as a separate derivative and reported together with the host contract. As of December 31, 2024, the Company had an embedded derivative liability of $2 million.

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 7: Fair Value of Financial Instruments (continued)

The following tables present information about changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2025 and 2024:

 

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in

 

 

Change in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

 

Gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Losses) for

 

 

(Losses) for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the Period

 

 

the Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in

 

 

Included in

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings for

 

 

OCI for

 

 

 

 

 

 

Gains /

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

Assets

 

 

 

 

 

 

(Losses)

 

 

Gains /

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

still held

 

 

still held

 

 

 

Balance

 

 

Included

 

 

(Losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfers

 

 

Transfers

 

 

 

 

 

as of

 

 

as of

 

 

 

Beginning

 

 

in

 

 

Included

 

 

 

 

 

 

 

 

 

 

 

 

 

 

into

 

 

out of

 

 

Ending

 

 

December 31,

 

 

December 31,

 

In millions

 

of Year

 

 

Earnings

 

 

in OCI(1)

 

 

Purchases

 

 

Issuances

 

 

Settlements

 

 

Sales

 

 

Level 3

 

 

Level 3

 

 

Balance

 

 

2025

 

 

2025(1)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate obligations

 

$

16

 

 

$

(1

)

 

$

-

 

 

$

3

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

18

 

(3)

$

(1

)

 

$

-

 

Equity investments

 

 

52

 

 

 

(19

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

33

 

 

 

(19

)

 

 

-

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable -
   residential

 

 

28

 

 

 

10

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

34

 

 

 

7

 

 

 

-

 

Total assets

 

$

96

 

 

$

(10

)

 

$

-

 

 

$

3

 

 

$

-

 

 

$

(4

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

85

 

 

$

(13

)

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in

 

 

Change in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Gains)

 

 

(Gains)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses for

 

 

Losses for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the Period

 

 

the Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in

 

 

Included in

 

 

 

 

 

 

Total

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings for

 

 

OCI for

 

 

 

 

 

 

(Gains) /

 

 

(Gains) /

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

 

 

 

 

Losses

 

 

Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

still held

 

 

still held

 

 

 

Balance,

 

 

Included

 

 

Included in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfers

 

 

Transfers

 

 

 

 

 

as of

 

 

as of

 

 

 

Beginning

 

 

in

 

 

Credit Risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

into

 

 

out of

 

 

Ending

 

 

December 31,

 

 

December 31,

 

In millions

 

of Year

 

 

Earnings

 

 

in OCI(2)

 

 

Purchases

 

 

Issuances

 

 

Settlements

 

 

Sales

 

 

Level 3

 

 

Level 3

 

 

Balance

 

 

2025

 

 

2025(2)

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medium-term notes

 

$

35

 

 

$

3

 

 

$

8

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

46

 

 

$

3

 

 

$

8

 

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VIE notes

 

 

31

 

 

 

4

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(10

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

25

 

 

 

1

 

 

 

-

 

Currency derivatives

 

 

6

 

 

 

6

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

12

 

 

 

6

 

 

 

-

 

Total liabilities

 

$

72

 

 

$

13

 

 

$

8

 

 

$

-

 

 

$

-

 

 

$

(10

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

83

 

 

$

10

 

 

$

8

 

 

(1) - Reported within the "Unrealized gains (losses) on available-for-sale securities" on the Company's consolidated statements of comprehensive income (loss).

(2) - Reported within the "Instrument-specific credit risk of liabilities measured at fair value" on the Company's consolidated statements of comprehensive income (loss).

(3) - Includes loans carried at fair value of $17 million.

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 7: Fair Value of Financial Instruments (continued)

 

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in

 

 

Change in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

 

Gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Losses) for

 

 

(Losses) for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the Period

 

 

the Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in

 

 

Included in

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings for

 

 

OCI for

 

 

 

 

 

 

Gains /

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

Assets

 

 

 

 

 

 

(Losses)

 

 

Gains /

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

still held

 

 

still held

 

 

 

Balance,

 

 

Included

 

 

(Losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfers

 

 

Transfers

 

 

 

 

 

as of

 

 

as of

 

 

 

Beginning

 

 

in

 

 

Included

 

 

 

 

 

 

 

 

 

 

 

 

 

 

into

 

 

out of

 

 

Ending

 

 

December 31,

 

 

December 31,

 

In millions

 

of Year

 

 

Earnings

 

 

in OCI(1)

 

 

Purchases

 

 

Issuances

 

 

Settlements

 

 

Sales

 

 

Level 3

 

 

Level 3

 

 

Balance

 

 

2024

 

 

2024(1)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate obligations

 

$

1

 

 

$

(2

)

 

$

-

 

 

$

17

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

16

 

(3)

$

-

 

 

$

-

 

Equity investments

 

 

108

 

 

 

(56

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

52

 

 

 

(56

)

 

 

-

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable -
  residential

 

 

35

 

 

 

(4

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

28

 

 

 

(6

)

 

 

-

 

Other

 

 

2

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total assets

 

$

146

 

 

$

(62

)

 

$

-

 

 

$

17

 

 

$

-

 

 

$

(3

)

 

$

(2

)

 

$

-

 

 

$

-

 

 

$

96

 

 

$

(62

)

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in

 

 

Change in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Gains)

 

 

(Gains)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses for

 

 

Losses for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the Period

 

 

the Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in

 

 

Included in

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings for

 

 

OCI for

 

 

 

 

 

 

(Gains) /

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

 

 

 

 

Losses

 

 

(Gains) /

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

still held

 

 

still held

 

 

 

Balance,

 

 

Included

 

 

Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfers

 

 

Transfers

 

 

 

 

 

as of

 

 

as of

 

 

 

Beginning

 

 

in

 

 

Included

 

 

 

 

 

 

 

 

 

 

 

 

 

 

into

 

 

out of

 

 

Ending

 

 

December 31,

 

 

December 31,

 

In millions

 

of Year

 

 

Earnings

 

 

in OCI(2)

 

 

Purchases

 

 

Issuances

 

 

Settlements

 

 

Sales

 

 

Level 3

 

 

Level 3

 

 

Balance

 

 

2024

 

 

2024(2)

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medium-term notes

 

$

40

 

 

$

(4

)

 

$

(1

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

35

 

 

$

(4

)

 

$

(1

)

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VIE notes

 

 

78

 

 

 

40

 

 

 

(27

)

 

 

-

 

 

 

-

 

 

 

(40

)

 

 

(20

)

 

 

-

 

 

 

-

 

 

 

31

 

 

 

-

 

 

 

1

 

Currency derivatives

 

 

14

 

 

 

(8

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6

 

 

 

(8

)

 

 

-

 

Total liabilities

 

$

132

 

 

$

28

 

 

$

(28

)

 

$

-

 

 

$

-

 

 

$

(40

)

 

$

(20

)

 

$

-

 

 

$

-

 

 

$

72

 

 

$

(12

)

 

$

-

 

 

(1) - Reported within the "Unrealized gains (losses) on available-for-sale securities" on the Company's consolidated statements of comprehensive income (loss).

(2) - Reported within the "Instrument-specific credit risk of liabilities measured at fair value" on the Company's consolidated statements of comprehensive income (loss).

(3) - Includes loans carried at fair value of $15 million.

 

For the year ended December 31, 2024, sales include the impact of the deconsolidation of VIEs. Refer to “Note 4: Variable Interest Entities” for additional information about the deconsolidation of VIEs.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 7: Fair Value of Financial Instruments (continued)

 

Gains and losses (realized and unrealized) included in earnings relating to Level 3 assets and liabilities for the years ended December 31, 2025, 2024 and 2023 are reported on the Company’s consolidated statements of operations as follows:

 

 

 

 

 

 

Change in Unrealized Gains (Losses)

 

 

 

 

 

 

 

 

 

 

 

 

for the Period Included in Earnings

 

 

 

Total Gains (Losses)

 

 

for Assets and Liabilities still

 

In millions

Included in Earnings

 

 

held as of December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

2025

 

 

2024

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains (losses) on financial instruments
  at fair value and foreign exchange

$

(23

)

 

$

(54

)

 

$

(12

)

 

$

(23

)

 

$

(52

)

 

$

(12

)

 

Revenues of consolidated VIEs (1)

 

-

 

 

 

(36

)

 

 

(62

)

 

 

-

 

 

 

2

 

 

 

(10

)

Total

$

(23

)

 

$

(90

)

 

$

(74

)

 

$

(23

)

 

$

(50

)

 

$

(22

)

 

(1) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" and "Other net realized gains (losses)-VIE" on the Company's consolidated statements of operations.

 

Derivative Instruments

The Company's derivatives are comprised of insured swaps, primarily consisting of insured interest rate swaps and inflation-linked swaps related to its insured debt issuance, embedded derivatives containing the complex interest rate calculations and a cross currency swap entered into by a consolidated VIE. The following table presents the effect of derivative instruments on the Company's consolidated statements of operations for the years ended December 31, 2025, 2024 and 2023:

 

In millions

 

 

 

 

 

 

 

 

 

 

 

Derivatives Not Designated

 

 

 

Years Ended December 31,

 

as Hedging Instruments

 

Location of Gain (Loss) Recognized in Income on Derivative

 

2025

 

 

2024

 

 

2023

 

Interest rate swaps

 

Net gains (losses) on financial instruments at fair value and foreign exchange

 

$

1

 

 

$

-

 

 

$

13

 

Currency swaps-VIE

 

Net gains (losses) on financial instruments at fair value and foreign exchange-VIE

 

 

(6

)

 

 

8

 

 

 

(7

)

Total

 

 

 

$

(5

)

 

$

8

 

 

$

6

 

Fair Value Option

 

The Company elected to record at fair value certain financial instruments, including certain equity investments and financial instruments that are consolidated in connection with the adoption of the accounting guidance for consolidation of VIEs.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 7: Fair Value of Financial Instruments (continued)

 

The following table presents the gains and (losses) included in the Company's consolidated statements of operations for the years ended December 31, 2025, 2024 and 2023 for financial instruments for which the fair value option was elected:

 

 

 

 

Years Ended December 31,

 

In millions

 

2025

 

 

2024

 

 

2023

 

Investments carried at fair value (1)

 

$

(19

)

 

$

(55

)

 

$

1

 

Fixed-maturity securities held at fair value-VIE (2)

 

 

-

 

 

 

(1

)

 

 

(4

)

Loans receivable and other instruments at fair value:

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans (2)

 

 

10

 

 

 

(4

)

 

 

(33

)

Other assets-VIE (2)

 

 

-

 

 

 

-

 

 

 

4

 

Medium-term notes (1)

 

 

(3

)

 

 

4

 

 

 

(5

)

Variable interest entity notes (2)

 

 

(4

)

 

 

(40

)

 

 

(25

)

 

 

 

 

 

 

 

 

 

 

(1) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange" on the Company's consolidated statements of operations.

(2) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" and "Other net realized gains (losses)-VIE" on the Company's consolidated statements of operations.

 

The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of December 31, 2025 and 2024, for loans and notes for which the fair value option was elected:

 

 

 

 

 

As of December 31, 2025

 

 

As of December 31, 2024

 

 

 

 

 

Contractual

 

 

 

 

 

 

 

 

Contractual

 

 

 

 

 

 

 

 

 

 

 

Outstanding

 

 

Fair

 

 

 

 

 

Outstanding

 

 

Fair

 

 

 

 

 

In millions

 

Principal

 

 

Value

 

 

Difference

 

 

Principal

 

 

Value

 

 

Difference

 

 

Loans receivable at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans - current

 

$

12

 

 

$

12

 

 

$

-

 

 

$

12

 

 

$

12

 

 

$

-

 

 

 

Residential mortgage loans (90 days or more past due)

 

 

55

 

 

 

22

 

 

 

33

 

 

 

48

 

 

 

16

 

 

 

32

 

 

 

Corporate loans - current

 

 

19

 

 

 

17

 

 

 

2

 

 

 

16

 

 

 

15

 

 

 

1

 

 

Total loans receivable at fair value

 

$

86

 

 

$

51

 

 

$

35

 

 

$

76

 

 

$

43

 

 

$

33

 

 

Variable interest entity notes

 

$

39

 

 

$

25

 

 

$

14

 

 

$

45

 

 

$

31

 

 

$

14

 

 

Medium-term notes

 

$

59

 

 

$

46

 

 

$

13

 

 

$

52

 

 

$

35

 

 

$

17

 

 

 

The differences between the contractual outstanding principal and the fair values on residential mortgage loans receivable, VIE notes and MTNs in the preceding table are primarily attributable to credit risk. This is due to the high rate of defaults on loans (90 days or more past due), the collateral supporting the VIE notes and the nonperformance risk of the Company on its MTNs, all of which resulted in depressed pricing of the financial instruments.

 

Instrument-Specific Credit Risk of Liabilities Elected Under the Fair Value Option

 

As of December 31, 2025 and 2024, the cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option were gains of $19 million and $27 million, respectively, reported in AOCI on the Company’s consolidated balance sheets. Changes in value attributable to instrument-specific credit risk were derived principally from changes in the Company’s credit spread. For liabilities of VIEs, additional adjustments to instrument-specific credit risk are required, which is determined by an analysis of deal specific performance of collateral that support these liabilities. During the years ended December 31, 2024 and 2023, the portions of instrument-specific credit risk included in AOCI that were recognized in earnings due to settlement of liabilities were losses of $28 million and $45 million, respectively.

v3.25.4
Investments
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Investments

Note 8: Investments

Investments, excluding equity instruments and those elected under the fair value option, primarily consist of debt instruments classified as AFS.

The following tables present the amortized cost, allowance for credit losses, corresponding gross unrealized gains and losses and fair value for AFS investments in the Company’s consolidated investment portfolio as of December 31, 2025 and 2024:

 

 

 

 

 

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

Allowance

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Amortized

 

 

for Credit

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

In millions

 

Cost

 

 

Losses

 

 

Gains

 

 

Losses

 

 

Value

 

AFS Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency

 

$

478

 

 

$

-

 

 

$

-

 

 

$

(10

)

 

$

468

 

 

State and municipal bonds

 

 

106

 

 

 

-

 

 

 

3

 

 

 

(8

)

 

 

101

 

 

Foreign governments

 

 

7

 

 

 

-

 

 

 

-

 

 

 

(2

)

 

 

5

 

 

Corporate obligations

 

 

462

 

 

 

-

 

 

 

1

 

 

 

(96

)

 

 

367

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

125

 

 

 

-

 

 

 

-

 

 

 

(11

)

 

 

114

 

 

 

Residential mortgage-backed non-agency

 

 

17

 

 

 

-

 

 

 

-

 

 

 

(1

)

 

 

16

 

 

 

Commercial mortgage-backed

 

 

10

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

30

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

31

 

 

 

Other asset-backed

 

 

229

 

 

 

-

 

 

 

2

 

 

 

(1

)

 

 

230

 

Total AFS investments

 

$

1,464

 

 

$

-

 

 

$

7

 

 

$

(129

)

 

$

1,342

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

Allowance

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Amortized

 

 

for Credit

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

In millions

 

Cost

 

 

Losses

 

 

Gains

 

 

Losses

 

 

Value

 

AFS Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency

 

$

500

 

 

$

-

 

 

$

-

 

 

$

(19

)

 

$

481

 

 

State and municipal bonds

 

 

110

 

 

 

-

 

 

 

2

 

 

 

(11

)

 

 

101

 

 

Foreign governments

 

 

12

 

 

 

-

 

 

 

-

 

 

 

(2

)

 

 

10

 

 

Corporate obligations

 

 

496

 

 

 

-

 

 

 

1

 

 

 

(106

)

 

 

391

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

127

 

 

 

-

 

 

 

-

 

 

 

(16

)

 

 

111

 

 

 

Residential mortgage-backed non-agency

 

 

36

 

 

 

-

 

 

 

1

 

 

 

(5

)

 

 

32

 

 

 

Commercial mortgage-backed

 

 

7

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

7

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

71

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

72

 

 

 

Other asset-backed

 

 

32

 

 

 

-

 

 

 

-

 

 

 

(1

)

 

 

31

 

Total AFS investments

 

$

1,391

 

 

$

-

 

 

$

5

 

 

$

(160

)

 

$

1,236

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 8: Investments (continued)

The following table presents the distribution by contractual maturity of AFS fixed-maturity securities at amortized cost, net of allowance for credit losses, and fair value as of December 31, 2025. Contractual maturity may differ from expected maturity as borrowers may have the right to call or prepay obligations.

 

 

 

 

 

 

 

AFS Securities

 

 

 

Net

 

 

 

 

 

 

Amortized

 

 

Fair

 

In millions

 

Cost

 

 

Value

 

Due in one year or less

 

$

395

 

 

$

395

 

Due after one year through five years

 

 

97

 

 

 

98

 

Due after five years through ten years

 

 

183

 

 

 

168

 

Due after ten years

 

 

378

 

 

 

280

 

Mortgage-backed and asset-backed

 

 

411

 

 

 

401

 

Total fixed-maturity investments

 

$

1,464

 

 

$

1,342

 

Deposited and Pledged Securities

The fair value of securities on deposit with various regulatory authorities as of December 31, 2025 and 2024 was $11 million. These deposits are required to comply with state insurance laws.

Investment agreement obligations require the Company to pledge securities as collateral. Securities pledged in connection with investment agreements may not be repledged by the investment agreement counterparty. As of December 31, 2025 and 2024, the fair value of securities pledged as collateral for these investment agreements were $183 million and $213 million, respectively. The Company’s collateral as of December 31, 2025 consisted principally of U.S. Treasury and government agency and corporate obligations, and was primarily held with major U.S. banks.

Impaired Investments

The following tables present the non-credit related gross unrealized losses related to AFS investments as of December 31, 2025 and 2024:

 

 

 

 

 

 

December 31, 2025

 

 

 

 

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

 

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

In millions

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

AFS Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency

 

$

2

 

 

$

-

 

 

$

122

 

 

$

(10

)

 

$

124

 

 

$

(10

)

 

State and municipal bonds

 

 

4

 

 

 

-

 

 

 

63

 

 

 

(8

)

 

 

67

 

 

 

(8

)

 

Foreign governments

 

 

-

 

 

 

-

 

 

 

5

 

 

 

(2

)

 

 

5

 

 

 

(2

)

 

Corporate obligations

 

 

9

 

 

 

(2

)

 

 

283

 

 

 

(94

)

 

 

292

 

 

 

(96

)

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

5

 

 

 

-

 

 

 

90

 

 

 

(11

)

 

 

95

 

 

 

(11

)

 

 

Residential mortgage-backed non-agency

 

5

 

 

 

-

 

 

 

5

 

 

 

(1

)

 

 

10

 

 

 

(1

)

 

 

Commercial mortgage-backed

 

 

-

 

 

 

-

 

 

 

3

 

 

 

-

 

 

 

3

 

 

 

-

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

8

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

8

 

 

 

-

 

 

 

Other asset-backed

 

 

20

 

 

 

-

 

 

 

22

 

 

 

(1

)

 

 

42

 

 

 

(1

)

Total AFS investments

 

$

53

 

 

$

(2

)

 

$

593

 

 

$

(127

)

 

$

646

 

 

$

(129

)

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 8: Investments (continued)

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

 

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

In millions

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

AFS Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency

 

$

41

 

 

$

(1

)

 

$

123

 

 

$

(18

)

 

$

164

 

 

$

(19

)

 

State and municipal bonds

 

 

15

 

 

 

(1

)

 

 

63

 

 

 

(10

)

 

 

78

 

 

 

(11

)

 

Foreign governments

 

 

5

 

 

 

-

 

 

 

5

 

 

 

(2

)

 

 

10

 

 

 

(2

)

 

Corporate obligations

 

 

25

 

 

 

(1

)

 

 

302

 

 

 

(105

)

 

 

327

 

 

 

(106

)

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

5

 

 

 

-

 

 

 

100

 

 

 

(16

)

 

 

105

 

 

 

(16

)

 

 

Residential mortgage-backed non-agency

 

6

 

 

 

(1

)

 

 

21

 

 

 

(4

)

 

 

27

 

 

 

(5

)

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

6

 

 

 

-

 

 

 

8

 

 

 

-

 

 

 

14

 

 

 

-

 

 

 

Other asset-backed

 

 

3

 

 

 

-

 

 

 

12

 

 

 

(1

)

 

 

15

 

 

 

(1

)

Total AFS investments

 

$

106

 

 

$

(4

)

 

$

634

 

 

$

(156

)

 

$

740

 

 

$

(160

)

 

Gross unrealized losses on AFS investments decreased as of December 31, 2025 compared with December 31, 2024 primarily due to lower interest rates and tighter credit spreads.

With the weighting applied on the fair value of each security relative to the total fair value, the weighted average contractual maturity of securities in an unrealized loss position as of December 31, 2025 and 2024 was 14 and 15 years, respectively. As of December 31, 2025 and 2024, there were 247 and 366 securities, respectively, that were in an unrealized loss position for a continuous twelve- month period or longer, of which, fair values of 200 and 318 securities, respectively, were below book value by more than 5%.

The following table presents the distribution of securities in an unrealized loss position for a continuous twelve-month period or longer where fair value was below book value by more than 5% as of December 31, 2025:

 

 

 

AFS Securities

 

Percentage of Fair Value

 

Number of

 

 

Book Value

 

 

Fair Value

 

 Below Book Value

 

Securities

 

 

(in millions)

 

 

(in millions)

 

> 5% to 15%

 

 

91

 

 

 

$

273

 

 

$

247

 

> 15% to 25%

 

 

49

 

 

 

 

81

 

 

 

65

 

> 25% to 50%

 

 

58

 

 

 

 

221

 

 

 

139

 

> 50%

 

 

2

 

 

 

 

-

 

 

 

-

 

Total

 

 

200

 

 

 

$

575

 

 

$

451

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 8: Investments (continued)

As of December 31, 2025, the Company concluded that it does not have the intent to sell securities in an unrealized loss position and it is more likely than not, that it would not have to sell these securities before recovery of their cost basis. In making this conclusion, the Company examined the cash flow projections for its investment portfolios, the potential sources and uses of cash in its businesses, and the cash resources available to its business other than sales of securities. It also considered the existence of any risk management or other plans as of December 31, 2025 that would require the sale of impaired securities. Impaired securities that the Company intends to sell before the expected recovery of such securities' fair values have been written down to fair value. For the year ended December 31, 2023, the impairment loss due to the intent to sell securities in an unrealized position was $8 million and reported within "Other net realized gains (losses)" on the Company's consolidated statement of operations.

Credit Losses on Investments

 

In calculating credit-related losses, the Company uses cash flow modeling based on the type of security. The Company’s cash flow analysis considers all sources of cash that support the payment of amounts owed by an issuer of a security. For AFS investments, this includes the credit enhancement taking into the consideration of cash expected to be provided by financial guarantors, including MBIA Corp. and National, resulting from an actual or potential insurance policy claim. In general, any change in the amount and/or timing of cash flows received or expected to be received, whether or not such cash flows are contractually defined, is reflected in the Company’s cash flow analysis for purposes of assessing a credit loss on an impaired security.

 

Each quarter, an internal committee, comprising staff that is independent of the Company’s evaluation process for determining credit losses of securities, reviews and approves the valuation of investments. Among other responsibilities, this committee ensures that the Company’s process for identifying and calculating allowance for credit losses, including the use of models and assumptions, is reasonable and complies with the Company’s internal policy.

 

Determination of Credit Losses on ABS, MBS and Corporate Obligations

 

AFS ABS investments are evaluated for credit loss using historical collateral performance, deal waterfall and structural protections, credit ratings, and forward looking projections of collateral performance based on business and economic conditions specific to each collateral type and risk. The underlying collateral is evaluated to identify any specific performance concerns, and stress scenarios are considered in forecasting ultimate returns of principal. Based on this evaluation, if a principal default is projected for a security, estimated future cash flows are discounted at the security’s effective interest rate used to recognize interest income on the security. For CDO investments, the Company uses the same tools as its RMBS investments discussed below, aggregating the bond level cash flows to the CDO investment level. If the present value of cash flows is less than the Company’s amortized cost for the security, the difference is recorded as a credit loss.

 

AFS RMBS investments are evaluated for credit losses using several quantitative tools. Loan level data is obtained and analyzed in a model that produces prepayment, default, and severity vectors. The model uses macro inputs, including housing price assumptions and interest rates. The vector outputs are used as inputs to a third-party cash flow model, which considers deal waterfall dynamics and structural features, to generate cash flows for an RMBS investment. The expected cash flows of the security are then discounted at the interest rate used to recognize interest income of the security to arrive at a present value amount. If the present value of the cash flows is less than the Company’s amortized cost for the investment, the difference is recorded as a credit loss.

 

For AFS corporate obligation investments, credit losses are evaluated using credit analysis techniques. The Company’s analysis includes a detailed review of a number of quantitative and qualitative factors impacting the value of an individual security. These factors include the interest rate of the security (fixed or floating), the security’s current market spread, any collateral supporting the security, the security’s position in the issuer’s capital structure, and credit rating upgrades or downgrades. Additionally, these factors include an assessment of various issuer-related credit metrics including market capitalization, earnings, cash flow, capitalization, interest coverage, leverage, liquidity and management. The Company’s analysis is augmented by comparing market prices for similar securities of other issuers in the same sector, as well as any recent corporate or government actions that may impact the ultimate return of principal. If the Company determines that a principal default is projected, a recovery analysis is performed using the above data. If the Company’s estimated recovery value for the security is less than its amortized cost, the difference is recorded as a credit loss.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 8: Investments (continued)

 

Determination of Credit Losses Guaranteed by the Company and Other Third-Party Guarantors

 

The Company does not recognize credit losses on securities insured by MBIA Corp. and National since those securities, whether or not owned by the Company, are evaluated for impairments in accordance with its loss reserving policy. Refer to "Note 2: Significant Accounting Policies" included herein for information about the Company's loss reserving policy and "Note 6: Loss and Loss Adjustment Expense Reserves" for information about loss reserves.

 

The following table provides information about securities held by the Company as of December 31, 2025 that were in an unrealized loss position and insured by a financial guarantor, along with the amount of insurance loss reserves corresponding to the par amount owned by the Company. The Company did not hold any securities in an unrealized loss position that were insured by a third-party financial guarantor as of December 31, 2025.

 

 

 

 

 

 

 

 

Unrealized

 

 

Insurance Loss

 

In millions

 

Fair Value

 

 

Loss

 

 

Reserve (1)

 

Asset-backed

 

$

17

 

 

$

(1

)

 

$

19

 

Corporate obligations

 

 

80

 

 

 

(47

)

 

 

-

 

Total

 

$

97

 

 

$

(48

)

 

$

19

 

 

(1) - Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured and are discounted using a discount rate equal to the risk-free rate applicable to the currency and weighted average remaining life of the insurance contract and may differ from the fair value.

Sales of Available-for-Sale Investments

The proceeds and the gross realized gains and losses from sales of fixed-maturity securities held as AFS for the years ended December 31, 2025, 2024 and 2023 are as follows:

 

 

 

 

Years Ended December 31,

 

In millions

 

2025

 

 

2024

 

 

2023

 

Proceeds from sales

 

$

126

 

 

$

115

 

 

$

943

 

Gross realized gains

 

$

1

 

 

$

1

 

 

$

4

 

Gross realized losses

 

$

(7

)

 

$

(4

)

 

$

(79

)

Equity and Trading Investments

Unrealized gains and losses recognized on equity and trading investments held as of the end of each period for the years ended December 31, 2025, 2024 and 2023 are as follows:

 

 

 

Years Ended December 31,

 

In millions

2025

 

 

2024

 

 

2023

 

Net gains (losses) recognized during the period on equity and trading securities

$

(14

)

 

$

(50

)

 

$

(2

)

Less:

 

 

 

 

 

 

 

 

 

Net gains (losses) recognized during the period on equity and trading securities sold during the period

 

3

 

 

 

-

 

 

 

-

 

Unrealized gains (losses) recognized during the period on equity and trading securities still held at the reporting date

$

(17

)

 

$

(50

)

 

$

(2

)

v3.25.4
Debt
12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt

Note 9: Debt

Long-Term Debt

The Company’s long-term debt consists of notes and debentures including accrued interest as follows:

 

 

 

As of December 31,

 

In millions

 

2025

 

 

2024

 

7.000% Debentures due 2025

 

$

 

 

$

45

 

7.150% Debentures due 2027

 

 

95

 

 

 

95

 

6.625% Debentures due 2028

 

 

112

 

 

 

112

 

5.700% Senior Notes due 2034 (1)

 

 

21

 

 

 

21

 

Surplus Notes due 2033 (2)

 

 

940

 

 

 

940

 

Accrued interest

 

 

1,681

 

 

 

1,535

 

Debt issuance costs

 

 

(6

)

 

 

(7

)

Total

 

$

2,843

 

 

$

2,741

 

 

(1) - Callable anytime at the greater of par or the present value of the remaining scheduled payments of principal and interest.

(2) - Contractual interest rate is based on three-month SOFR plus 11.52161% at each future reset date.

As of December 31, 2025 and 2024, National owned $308 million principal amount of MBIA Inc. 5.700% Senior Notes due 2034 and MBIA Corp. owned $29 million principal amount of MBIA Inc. 6.625% Debentures due 2028; and MBIA Inc., through its corporate segment, owned $13 million of MBIA Corp. surplus notes. These amounts are eliminated in the Company's consolidated financial statements.

Interest and principal payments on the surplus notes are subject to prior approval by the NYSDFS. From the January 15, 2013 interest payment to the present, MBIA Corp.’s requests for approval of the note interest payments have not been approved by the NYSDFS. MBIA Corp. provides notice to the Fiscal Agent when it will not make a scheduled interest payment. The deferred interest payment will become due on the first business day on or after which MBIA Corp. obtains approval from the NYSDFS to make such payment. No interest will accrue on the deferred interest. The surplus notes were callable at par at the option of MBIA Corp. on the fifth anniversary of the date of issuance, and are callable at par on January 15, 2028 and on any other date at par plus a make-whole amount, subject to prior approval by the Superintendent and other restrictions. The cash received from the issuance of surplus notes was used for general business purposes and the deferred debt issuance costs are being amortized over the term of the surplus notes.

The aggregate maturities of principal payments of long-term debt obligations in each of the next five years ending December 31, and thereafter, are as follows:

 

In millions

 

2026

 

 

2027

 

 

2028

 

 

2029

 

 

2030

 

 

Thereafter

 

 

Total

 

Corporate debt

 

$

 

 

$

95

 

 

$

112

 

 

$

 

 

$

 

 

$

21

 

 

$

228

 

Surplus Notes due 2033

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

940

 

 

 

940

 

Total debt obligations due

 

$

 

 

$

95

 

 

$

112

 

 

$

 

 

$

 

 

$

961

 

 

$

1,168

 

Investment Agreements

Certain investment agreements provide for early termination, including, in some cases, with make-whole payments, upon certain contingent events including the bankruptcy of MBIA Inc. or the commencement of an insolvency proceeding with respect to MBIA Corp. Upon the occurrence of certain contractually agreed-upon events, some of these funds may be withdrawn by the investor prior to their contractual maturity dates. All of the investment agreements have been collateralized in accordance with the contractual terms.

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 9: Debt (continued)

Investment agreements have been issued with fixed interest rates in U.S. dollars. As of December 31, 2025 and 2024, the annual interest rates on these agreements ranged from 4.88% to 6.88% and 4.78% to 6.88%, respectively, and the weighted average interest rates were 6.01%. Expected principal payments due under investment agreements in each of the next five years ending December 31, and thereafter, based upon contractual maturity dates, are as follows:

 

 

Principal

 

In millions

 

Amount

 

Maturity date:

 

 

 

2026

 

$

59

 

2027

 

 

29

 

2028

 

 

29

 

2029

 

 

 

2030

 

 

 

Thereafter (through 2037)

 

 

63

 

Total expected principal payments (1)

 

$

180

 

Less discount (2)

 

 

6

 

Total

 

$

174

 

 

(1)- Amounts reflect principal due at maturity for investment agreements issued at a discount.

(2)- Discount is net of carrying amount adjustment of $2 million and accrued interest adjustment of $3 million.

Medium-Term Notes

MTNs have been issued with fixed or floating interest rates in U.S. dollars or Euros. Floating rates on Euro-denominated MTNs are floored at 0% when the actual floating rates become negative. As of December 31, 2025 and 2024, the interest rates of the MTNs ranged from 2.50% to 5.90% and the weighted average interest rates were 5.15% and 5.17%, respectively. Expected principal payments due under MTN obligations in each of the next five years ending December 31, and thereafter, based upon contractual maturity dates, are as follows:

 

 

Principal

 

In millions

 

Amount

 

Maturity date:

 

 

 

2026

 

$

 

2027

 

 

2

 

2028

 

 

30

 

2029

 

 

 

2030

 

 

 

Thereafter (through 2035)

 

 

578

 

Total expected principal payments (1)

 

$

610

 

Less discount (2)

 

 

138

 

Total

 

$

472

 

 

(1)- Amounts reflect principal due at maturity for notes issued at a discount.

(2)- Discount is net of carrying amount and market value adjustments of $9 million and accrued interest adjustment of $4 million.

Variable Interest Entity Debt

VIE notes elected to be recorded at fair value are debt instruments that were issued primarily in U.S. dollars by VIEs consolidated within the Company’s international and structured finance insurance segment. These VIE notes consist of debt instruments issued by issuer-sponsored consolidated VIEs collateralized by assets held by those consolidated VIEs. Holders of insured obligations of issuer-sponsored VIEs do not have recourse to the general assets of the Company. In the event of non-payment of an obligation issued by a consolidated VIE, the Company is obligated to pay principal and interest, when due, on MBIA-insured obligations only.

As of December 31, 2025 and 2024, the aggregate unpaid contractual principal of consolidated VIE notes were $39 million and $45 million, respectively. As of December 31, 2025 and 2024, the unpaid contractual principal of MBIA-insured consolidated VIE notes were $28 million and $36 million, respectively. Refer to “Note 7: Fair Value of Financial Instruments” for information about the fair values of consolidated VIE notes.

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 9: Debt (continued)

Expected principal payments due under MBIA-insured consolidated VIE notes in each of the next five years ending December 31, and thereafter, based upon expected contractual maturity dates, are as follows:

 

 

Insured

 

 

 

Principal

 

In millions

 

Amount

 

Maturity date:

 

 

 

2026

 

$

5

 

2027

 

 

7

 

2028

 

 

7

 

2029

 

 

4

 

2030

 

 

2

 

Thereafter (through 2035)

 

 

3

 

Total

 

$

28

 

 

Following the creation of a litigation trust established to liquidate the Zohar Collateral pursuant to a plan of liquidation that became effective in August of 2022, certain lenders agreed to make term loans to fund the trust that the Company consolidates as a VIE, in an aggregate amount not to exceed the commitment amount. These loans constitute a joint and several liability of the trust and its co-obligors. Loans made to the trust bear interest at 18% per annum, mature on August 2, 2027, and can be prepaid at any time in part or in whole, in some cases subject to certain fees. Accrued interest due on the interest payment date is capitalized and added to the outstanding principal in lieu of cash payment. Loans are secured by recoveries from the litigation claims transferred into the trust. Proceeds received from the settlement of the litigation claims are first applied to the outstanding loan balances and, to the extent of any excess, distributed to the trust beneficiaries or used to permanently reduce the unused commitment amounts. During 2025, the Company recognized a $7 million gain related to the partial extinguishment of this joint and several liability, which was paid down from proceeds received by a third-party co-obligor. As of December 31, 2025 and 2024, the outstanding principal balance was $6 million and $12 million, respectively. As of December 31, 2025, there was no unused commitment amount available to the litigation trust.

v3.25.4
Income Taxes
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 10: Income Taxes

Income (loss) from continuing operations before income taxes consisted of:

 

 

Years Ended December 31,

 

In millions

 

2025

 

 

2024

 

 

2023

 

Domestic

 

$

(181

)

 

$

(441

)

 

$

(484

)

Foreign

 

 

-

 

 

 

-

 

 

 

-

 

Income (loss) from continuing operations before income taxes

 

$

(181

)

 

$

(441

)

 

$

(484

)

 

The Company files a consolidated tax return that includes all of its U.S. subsidiaries and foreign branches. The Company also filed tax returns in Mexico and in various state and local jurisdictions. Income tax expense (benefit) on income (loss) and shareholder's equity, net of changes in the Company's valuation allowance, was not material for the years ended December 31, 2025, 2024, and 2023 and did not have any material impact on the Company's financial results.

 

 

 

 

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 10: Income Taxes (continued)

 

A reconciliation of the U.S. federal statutory tax rate to the Company's effective income tax rate for the years ended December 31, 2025, 2024 and 2023 is presented in the following table:

 

 

 

 

Years Ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

$ In millions

 

Tax Effected

 

Rate

 

 

Tax Effected

 

Rate

 

 

Tax Effected

 

Rate

 

U.S. Federal statutory tax rate

 

$

(38

)

 

21.0

%

 

$

(93

)

 

21.0

%

 

$

(101

)

 

21.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in valuation allowance

 

 

33

 

 

(18.2

)%

 

 

88

 

 

(19.9

)%

 

 

95

 

 

(19.7

)%

Non-taxable or non-deductible items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive compensation

 

 

4

 

 

(2.2

)%

 

 

2

 

 

(0.5

)%

 

 

5

 

 

(1.1

)%

 

Share-based compensation

 

 

(2

)

 

1.1

%

 

 

-

 

 

0.0

%

 

 

-

 

 

0.0

%

 

GAAP-only gains/losses

 

 

2

 

 

(1.1

)%

 

 

2

 

 

(0.4

)%

 

 

-

 

 

0.0

%

 

Other

 

 

1

 

 

(0.6

)%

 

 

-

 

 

0.0

%

 

 

-

 

 

0.0

%

Other adjustments

 

 

-

 

 

0.0

%

 

 

1

 

 

(0.2

)%

 

 

1

 

 

(0.2

)%

Effective tax rate

 

$

-

 

 

0.0

%

 

$

-

 

 

0.0

%

 

$

-

 

 

0.0

%

Deferred Tax Asset, Net of Valuation Allowance

The tax effects of temporary differences that give rise to deferred tax assets and liabilities as of December 31, 2025 and 2024 are presented in the following table:

 

 

 

 

As of

 

In millions

 

 

December 31, 2025

 

 

December 31, 2024

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Unearned premium revenue

 

 

$

28

 

 

$

30

 

 

Deferred acquisition costs

 

 

 

5

 

 

 

6

 

 

Net gains on financial instruments at fair value and foreign exchange

 

 

 

31

 

 

 

32

 

 

Net deferred taxes on VIEs

 

 

 

2

 

 

 

2

 

Total gross deferred tax liabilities

 

 

 

66

 

 

 

70

 

 

 

 

 

 

 

 

 

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

 

 

7

 

 

 

4

 

 

Accrued interest

 

 

 

357

 

 

 

326

 

 

Loss and loss adjustment expense reserves

 

 

 

33

 

 

 

40

 

 

Net operating loss

 

 

 

911

 

 

 

918

 

 

Foreign tax credits

 

 

 

55

 

 

 

55

 

 

Capital loss carryforward

 

 

 

53

 

 

 

51

 

 

Net unrealized gains and losses in accumulated other comprehensive income

 

 

 

21

 

 

 

27

 

 

Other

 

 

 

38

 

 

 

29

 

Total gross deferred tax assets

 

 

 

1,475

 

 

 

1,450

 

 

Valuation allowance

 

 

 

1,409

 

 

 

1,380

 

Net deferred tax asset

 

 

$

-

 

 

$

-

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 10: Income Taxes (continued)

 

The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of its existing deferred tax assets. A significant piece of objective negative evidence evaluated was the Company having a three-year cumulative loss. Such objective evidence limits the ability to consider other subjective evidence, such as the Company’s projections of pre-tax income. On the basis of this evaluation, the Company has recorded a full valuation allowance against its net deferred tax asset of $1.4 billion as of December 31, 2025 and 2024. The Company will continue to analyze the valuation allowance on a quarterly basis.

Net operating losses (“NOLs”) of property and casualty insurance companies are permitted to be carried back two years and carried forward 20 years. NOLs of property and casualty insurance companies are not subject to the 80 percent taxable income limitation and indefinite lived carryforward period required by the Tax Cuts and Jobs Act applicable to general corporate NOLs.

Federal income tax returns through 2011 have been examined or surveyed. As of December 31, 2025, the Company’s NOL is approximately $4.3 billion. NOLs generated prior to tax reform and property and casualty NOLs generated after tax reform will expire between tax years 2026 through 2044. As of December 31, 2025, the Company has a foreign tax credit carryforward of $55 million, which will expire between tax years 2026 through 2033.

Section 382 of the Internal Revenue Code

Included in the Company’s Amended By-Laws are restrictions on certain acquisitions of Company stock that otherwise may have increased the likelihood of an ownership change within the meaning of Section 382 of the Internal Revenue Code. With certain exceptions, the By-Laws generally prohibit a person from becoming a “Section 382 five-percent shareholder” by acquiring, directly or by attribution, 5% or more of the outstanding shares of the Company’s common stock.

One Big Beautiful Bill Act

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law and includes permanent extensions, with certain updates, of several individual, business, and international tax measures originally established under the 2017 Tax Cuts and Jobs Act and set to change at the end of 2025. The OBBBA did not have a material impact on the Company’s financial results.

v3.25.4
Business Segments
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Business Segments

Note 11: 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 ("CODM") 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 CODM is the Chief Executive Officer. The Company evaluates the performance of all of its reportable segments based on each segment's income (loss) from continuing operations before income taxes. The CODM uses each segment's income (loss) from continuing operations before income taxes to allocate resources, including employees and financial or capital resources. Operating decisions are made during the Company's annual planning and quarterly forecasting processes, and after considering budget-to-actual variances on a quarterly basis using the income (loss) from continuing operations before income taxes. 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. MBIA Services is compensated for services at cost and its net revenues and expenses are generally managed to break-even. 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 managed 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 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, public transportation facilities, and other types of infrastructure projects serving a substantial public purpose. MBIA Corp. also insures structured finance and asset-backed obligations repayable from expected cash flows generated by a specified pool of assets, such as residential and commercial mortgages, consumer loans and structured settlements. 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 Insurance Corporation also insures debt obligations of GFL. 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.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 11: Business Segments (continued)

 

The following tables provide the Company’s segment results for the years ended December 31, 2025, 2024 and 2023:

 

 

 

 

 

Year Ended December 31, 2025

 

 

 

 

 

U.S.

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 

 

Public

 

 

 

 

 

and Structured

 

 

 

 

 

 

 

 

 

 

 

Finance

 

 

 

 

 

Finance

 

 

 

 

 

 

 

In millions

 

Insurance

 

 

Corporate

 

 

Insurance

 

 

Eliminations

 

 

Consolidated

 

Revenues (1)

 

$

56

 

 

$

24

 

 

$

19

 

 

$

-

 

 

$

99

 

Net gains (losses) on financial instruments at fair value and foreign exchange

 

 

1

 

 

 

(2

)

 

 

(28

)

 

 

-

 

 

 

(29

)

Revenues of consolidated VIEs

 

 

-

 

 

 

-

 

 

 

10

 

 

 

-

 

 

 

10

 

Inter-segment revenues (2)

 

 

26

 

 

 

47

 

 

 

6

 

 

 

(79

)

 

 

-

 

 

 

Total revenues (3)

 

 

83

 

 

 

69

 

 

 

7

 

 

 

(79

)

 

 

80

 

Losses and loss adjustment

 

 

(33

)

 

 

-

 

 

 

13

 

 

 

-

 

 

 

(20

)

Compensation and benefits

 

 

-

 

 

 

44

 

 

 

-

 

 

 

-

 

 

 

44

 

Interest

 

 

-

 

 

 

69

 

 

 

150

 

 

 

(23

)

 

 

196

 

Inter-segment service charge

 

 

31

 

 

 

-

 

 

 

14

 

 

 

(45

)

 

 

-

 

Other segment items (4)

 

 

12

 

 

 

16

 

 

 

24

 

 

 

(11

)

 

 

41

 

 

 

Total expenses

 

 

10

 

 

 

129

 

 

 

201

 

 

 

(79

)

 

 

261

 

Income (loss) from continuing operations before income taxes

 

$

73

 

 

$

(60

)

 

$

(194

)

 

$

-

 

 

$

(181

)

Total assets per reportable segment

 

$

1,475

 

 

$

653

 

 

$

668

 

 

$

(791

)

 (5)

$

2,005

 

Assets held for sale

 

 

 

 

 

 

 

 

8

 

Total assets

 

 

 

 

 

 

 

$

2,013

 

 

(1) - Consists primarily 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.

(3) - Includes net investment income of $60 million, $26 million, $11 million, and ($24) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.

(4) - Other segment items for each reportable segment include:

a. U.S. Public Finance Insurance - amortization of DAC, professional service fees, occupancy costs and other operating expenses;

b. Corporate - professional service fees, occupancy costs and other operating expenses;

c. International and Structured Finance Insurance - expenses of consolidated VIEs, amortization of DAC, professional service fees and other operating expenses, and

d. Elimination - inter-segment amortization of DAC and inter-segment occupancy costs.

(5) - Consists principally of intercompany reinsurance balances.

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 11: Business Segments (continued)

 

 

 

 

 

Year Ended December 31, 2024

 

In millions

 

U.S. Public Finance Insurance

 

 

Corporate

 

 

International and Structured Finance Insurance

 

 

Eliminations

 

 

Consolidated

 

Revenues (1)

 

$

72

 

 

$

28

 

 

$

21

 

 

$

-

 

 

$

121

 

Net gains (losses) on financial instruments at fair value and foreign exchange

 

 

1

 

 

 

14

 

 

 

(57

)

 

 

-

 

 

 

(42

)

Revenues of consolidated VIEs

 

 

-

 

 

 

-

 

 

 

(37

)

 

 

-

 

 

 

(37

)

Inter-segment revenues (2)

 

 

26

 

 

 

54

 

 

 

6

 

 

 

(86

)

 

 

-

 

 

 

Total revenues (3)

 

 

99

 

 

 

96

 

 

 

(67

)

 

 

(86

)

 

 

42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment

 

 

191

 

 

 

-

 

 

 

(7

)

 

 

-

 

 

 

184

 

Compensation and benefits

 

 

-

 

 

 

44

 

 

 

-

 

 

 

-

 

 

 

44

 

Interest

 

 

-

 

 

 

72

 

 

 

159

 

 

 

(23

)

 

 

208

 

Inter-segment service charge

 

 

32

 

 

 

-

 

 

 

18

 

 

 

(50

)

 

 

-

 

Other segment items (4)

 

 

14

 

 

 

17

 

 

 

29

 

 

 

(13

)

 

 

47

 

 

 

Total expenses

 

 

237

 

 

 

133

 

 

 

199

 

 

 

(86

)

 

 

483

 

Income (loss) from continuing operations before income taxes

 

$

(138

)

 

$

(37

)

 

$

(266

)

 

$

-

 

 

$

(441

)

Total assets per reportable segment

 

$

1,549

 

 

$

707

 

 

$

834

 

 

$

(933

)

(5)

$

2,157

 

Assets held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,168

 

 

(1) - Consists primarily 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.

(3) - Includes net investment income of $67 million, $30 million, $11 million, and ($24) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.

(4) - Other segment items for each reportable segment include:

a. U.S. Public Finance Insurance - amortization of DAC, professional service fees, occupancy costs and other operating expenses;

b. Corporate - professional service fees, occupancy costs and other operating expenses;

c. International and Structured Finance Insurance - expenses of consolidated VIEs, amortization of DAC, professional service fees and other operating expenses, and

d. Elimination - inter-segment amortization of DAC and inter-segment occupancy costs.

(5) - Consists principally of intercompany reinsurance balances.

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 11: Business Segments (continued)

 

 

 

 

 

Year Ended December 31, 2023

 

In millions

 

U.S. Public Finance Insurance

 

 

Corporate

 

 

International and Structured Finance Insurance

 

 

Eliminations

 

 

Consolidated

 

Revenues (1)

 

$

51

 

 

$

(11

)

 

$

33

 

 

$

-

 

 

$

73

 

Net gains (losses) on financial instruments at fair value and foreign exchange

 

 

8

 

 

 

8

 

 

 

(12

)

 

 

-

 

 

 

4

 

Revenues of consolidated VIEs

 

 

-

 

 

 

-

 

 

 

(70

)

 

 

-

 

 

 

(70

)

Inter-segment revenues (2)

 

 

27

 

 

 

54

 

 

 

6

 

 

 

(87

)

 

 

-

 

 

 

Total revenues (3)

 

 

86

 

 

 

51

 

 

 

(43

)

 

 

(87

)

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment

 

 

170

 

 

 

-

 

 

 

7

 

 

 

-

 

 

 

177

 

Compensation and benefits

 

 

-

 

 

 

61

 

 

 

-

 

 

 

-

 

 

 

61

 

Interest

 

 

-

 

 

 

76

 

 

 

158

 

 

 

(24

)

 

 

210

 

Inter-segment service charge

 

 

33

 

 

 

-

 

 

 

17

 

 

 

(50

)

 

 

-

 

Other segment items (4)

 

 

14

 

 

 

16

 

 

 

25

 

 

 

(12

)

 

 

43

 

 

 

Total expenses

 

 

217

 

 

 

153

 

 

 

207

 

 

 

(86

)

 

 

491

 

Income (loss) from continuing operations before income taxes

 

$

(131

)

 

$

(102

)

 

$

(250

)

 

$

(1

)

 

$

(484

)

Total assets per reportable segment

 

$

1,742

 

 

$

755

 

 

$

974

 

 

$

(938

)

 (5)

$

2,533

 

Assets held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

73

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,606

 

 

(1) - Consists primarily 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.

(3) - Includes net investment income of $93 million, $25 million, $23 million, and ($25) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.

(4) - Other segment items for each reportable segment include:

a. U.S. Public Finance Insurance - amortization of DAC, professional service fees, occupancy costs and other operating expenses;

b. Corporate - professional service fees, occupancy costs and other operating expenses;

c. International and Structured Finance Insurance - expenses of consolidated VIEs, amortization of DAC, professional service fees and other operating expenses, and

d. Elimination - inter-segment amortization of DAC and inter-segment occupancy costs.

(5) - Consists principally of intercompany reinsurance balances.

 

Net premiums earned reported within the Company’s insurance segments are generated within and outside the U.S. The following table summarizes net premiums earned by geographic location for the years ended December 31, 2025, 2024 and 2023:

 

 

 

 

Years Ended December 31,

 

In millions

 

2025

 

 

2024

 

 

2023

 

Net premiums earned:

 

 

 

 

 

 

 

 

 

 

United States

 

$

24

 

 

$

29

 

 

$

29

 

 

Other

 

 

6

 

 

 

7

 

 

 

8

 

Total

 

$

30

 

 

$

36

 

 

$

37

 

v3.25.4
Insurance in Force
12 Months Ended
Dec. 31, 2025
Insurance [Abstract]  
Insurance In Force

Note 12: Insurance in Force

The financial guarantees issued by the Company provide unconditional and irrevocable guarantees of the payment of the principal of, and interest or other amounts owing on, insured obligations when due. The obligations are generally not subject to acceleration, except in the event the Company has the right, at its discretion, to accelerate insured obligations upon default or otherwise. Payments to be made by the issuer on the bonds or notes may be backed by a pledge of revenues, reserve funds, letters of credit, investment contracts or collateral in the form of mortgages or other assets. The right to such funds or collateral would typically become National’s or MBIA Corp.’s upon the payment of a claim by either National or MBIA Corp.

The Company’s ultimate exposure to credit loss in the event of nonperformance by the issuer of the insured obligation is represented by insurance in force. Insurance in force is the estimated maximum potential exposure to insured obligations before considering the Company's various legal rights to the underlying collateral and other remedies available under its financial guarantee contract. The calculation of insurance in force includes estimates, which the Company periodically updates, relating to the expected remaining term of insured obligations supported by homogeneous pools of assets, foreign exchange rates, a municipality's taxing power, municipal revenues derived from a public project or dedicated tax or fee and other assumptions based on the characteristics of each insured obligation. The Company insures predominantly fixed-rate instruments. For variable rate contracts and contracts which reference the consumer price indices, the Company's methodology includes utilizing the respective interest rates in effect at the inception of the insurance contracts.

Actual insurance in force may differ from estimated insurance in force due to refundings, terminations and commutations, prepayments, changes in floating interest rates and consumer price indices, changes in foreign exchange rates on non-U.S. denominated insured obligations and other factors.

As of December 31, 2025, the Company's insurance in force had an expected maturity through 2058. The distribution of MBIA Corp.’s and National’s combined insurance in force by geographic location, excluding financial obligations guaranteed by MBIA Corp. on behalf of affiliated companies, is presented in the following table:

 

 

 

 

As of December 31,

 

$ in billions

 

2025

 

 

2024

 

 

 

 

 

 

 

% of

 

 

 

 

 

% of

 

 

 

 

Insurance

 

 

Insurance

 

 

Insurance

 

 

Insurance

 

Geographic Location

 

in Force

 

 

in Force

 

 

in Force

 

 

in Force

 

California

 

$

10.8

 

 

 

22.2

%

 

$

12.1

 

 

 

22.3

%

Illinois

 

 

5.5

 

 

 

11.4

%

 

 

6.0

 

 

 

11.0

%

New Jersey

 

 

3.5

 

 

 

7.2

%

 

 

3.8

 

 

 

7.0

%

Hawaii

 

 

3.4

 

 

 

7.0

%

 

 

3.5

 

 

 

6.5

%

Virginia

 

 

3.0

 

 

 

6.3

%

 

 

3.2

 

 

 

6.0

%

Texas

 

 

1.8

 

 

 

3.8

%

 

 

2.0

 

 

 

3.7

%

Colorado

 

 

1.4

 

 

 

2.8

%

 

 

1.6

 

 

 

2.9

%

Oregon

 

 

1.1

 

 

 

2.2

%

 

 

1.4

 

 

 

2.5

%

New York

 

 

1.0

 

 

 

2.1

%

 

 

1.1

 

 

 

2.1

%

Georgia

 

 

1.0

 

 

 

2.0

%

 

 

1.2

 

 

 

2.2

%

 

Subtotal

 

 

32.5

 

 

 

67.0

%

 

 

35.9

 

 

 

66.2

%

Nationally Diversified

 

 

5.8

 

 

 

12.1

%

 

 

6.3

 

 

 

11.5

%

Other states

 

 

8.3

 

 

 

17.2

%

 

 

10.1

 

 

 

18.5

%

 

Total United States

 

 

46.6

 

 

 

96.3

%

 

 

52.3

 

 

 

96.2

%

Internationally Diversified

 

 

0.1

 

 

 

0.2

%

 

 

0.2

 

 

 

0.4

%

Country specific

 

 

1.7

 

 

 

3.5

%

 

 

1.8

 

 

 

3.4

%

 

Total non-United States

 

 

1.8

 

 

 

3.7

%

 

 

2.0

 

 

 

3.8

%

Total

 

$

48.4

 

 

 

100.0

%

 

$

54.3

 

 

 

100.0

%

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 12: Insurance in Force (continued)

The insurance in force and insured gross par outstanding by type of bond, excluding financial obligations guaranteed by MBIA Corp. on behalf of affiliated companies, are presented in the following table:

 

 

 

 

 

 

As of December 31,

 

$ in billions

 

2025

 

 

2024

 

 

 

 

 

 

 

Insurance

 

 

Gross Par

 

 

Insurance

 

 

Gross Par

 

Bond type

 

in Force

 

 

Amount

 

 

in Force

 

 

Amount

 

Global public finance - United States:

 

 

 

 

 

 

 

 

 

 

 

 

 

General obligation (1)

 

$

12.5

 

 

$

6.0

 

 

$

14.6

 

 

$

7.0

 

 

Military housing

 

 

12.2

 

 

 

6.3

 

 

 

12.7

 

 

 

6.5

 

 

Tax-backed

 

 

8.4

 

 

 

3.2

 

 

 

9.8

 

 

 

4.2

 

 

Transportation

 

 

5.6

 

 

 

1.8

 

 

 

6.1

 

 

 

1.9

 

 

Municipal utilities

 

 

4.8

 

 

 

3.5

 

 

 

5.4

 

 

 

3.9

 

 

Higher education

 

 

0.7

 

 

 

0.5

 

 

 

0.8

 

 

 

0.6

 

 

General obligation - lease

 

 

0.7

 

 

 

0.5

 

 

 

0.8

 

 

 

0.5

 

 

Health care

 

 

0.4

 

 

 

0.2

 

 

 

0.6

 

 

 

0.4

 

 

Investor-owned utilities  (2)

 

 

0.3

 

 

 

0.3

 

 

 

0.4

 

 

 

0.3

 

 

 

 

Total United States

 

 

45.6

 

 

 

22.3

 

 

 

51.2

 

 

 

25.3

 

Global public finance - non-United States:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sovereign-related and sub-sovereign  (3)

 

 

1.1

 

 

 

0.8

 

 

 

1.1

 

 

 

0.9

 

 

Transportation

 

 

0.2

 

 

 

0.2

 

 

 

0.3

 

 

 

0.2

 

 

Other (4)

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

 

 

 

Total non-United States

 

 

1.4

 

 

 

1.1

 

 

 

1.5

 

 

 

1.2

 

 

 

 

 

Total global public finance

 

 

47.0

 

 

 

23.4

 

 

 

52.7

 

 

 

26.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global structured finance:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed residential

 

 

0.7

 

 

 

0.5

 

 

 

0.8

 

 

 

0.5

 

 

Mortgage-backed commercial

 

 

0.3

 

 

 

0.2

 

 

 

0.3

 

 

 

0.1

 

 

Corporate asset-backed

 

 

0.3

 

 

 

0.2

 

 

 

0.4

 

 

 

0.4

 

 

Consumer asset-backed

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

 

 

 

Total global structured finance

 

 

1.4

 

 

 

1.0

 

 

 

1.6

 

 

 

1.1

 

 

 

 

 

Total

 

$

48.4

 

 

$

24.4

 

 

$

54.3

 

 

$

27.6

 

 

(1) - Includes general obligation unlimited and limited (property) tax bonds, general fund obligation bonds and pension obligation bonds of states, cities, counties, schools and special districts.

(2) - Includes investor-owned utilities, industrial development and pollution control revenue bonds.

(3) - Includes regions, departments or their equivalent in each jurisdiction as well as sovereign owned entities that are supported by a sovereign state, region or department.

(4) - Includes municipal owned entities backed by sponsoring local government, tax backed and utility transactions.

Affiliated Financial Obligations Insured by MBIA Corp.

Investment agreement contracts and MTNs issued by the Company’s corporate segment are not included in the previous tables. If MBIA Inc. or these subsidiaries were to have insufficient assets to pay amounts due, MBIA Corp. would be obligated to make such payments under its insurance policies. As of December 31, 2025, the maximum amount of future payments that MBIA Corp. could be required to make under these guarantees is $0.9 billion. These guarantees, which mature through 2037, were entered into on an arm’s length basis. MBIA Corp. has both direct recourse provisions and subrogation rights in these transactions. If MBIA Corp. is required to make a payment under any of these affiliate guarantees, it would have the right to seek reimbursement from such affiliate and to liquidate any collateral to recover amounts paid under the guarantee.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 12: Insurance in Force (continued)

Reinsured Exposure

Reinsurance enables the Company to cede exposure for purposes of syndicating risk. The Company generally retains the right to reassume the business ceded to reinsurers under certain circumstances, including a reinsurer’s rating downgrade below specified thresholds. At this time, the Company does not intend to utilize reinsurance to decrease the insured exposure in its portfolio.

MBIA requires certain unauthorized reinsurers to establish trust accounts or maintain amounts on deposit to cover liabilities ceded to such reinsurers under reinsurance contracts. The Company remains liable on a primary basis for all reinsured risk. MBIA believes that its reinsurers remain capable of meeting their obligations, although, there can be no assurance of such in the future.

In addition, MBIA Corp. and National are parties to a reinsurance agreement pursuant to which National reinsures certain U.S. public finance guarantee policies originally written by MBIA Corp. If a reinsurer of MBIA Corp. is unable to pay claims ceded by MBIA Corp. on U.S. public finance exposure, National will assume liability for such ceded claim payments.

As of December 31, 2025 and 2024, the aggregate amount of insurance in force ceded by MBIA to third-party reinsurers was $1.2 billion and $1.5 billion, respectively. As of December 31, 2025 and 2024, the aggregate amount of insured par outstanding ceded by MBIA to third-party reinsurers was $504 million and $671, respectively. As of December 31, 2025, $417 million of the ceded par outstanding was ceded from the Company’s U.S. public finance insurance segment and $87 million was ceded from the Company’s international and structured finance insurance segment. The following table presents information about the Company’s reinsured exposure as of December 31, 2025:

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reinsurers

 

Standard & Poor's Rating (Status)

 

Moody's Rating (Status)

Ceded Par Outstanding

 

 

Trust Accounts/Amounts on Deposit

 

 

Reinsurance Recoverable/(Payable), Net(1)

 

Assured Guaranty Re Ltd.

 

AA

 

WR(2)

$

256

 

 

$

18

 

 

$

13

 

 

(Stable Outlook)

 

 

 

 

 

 

 

 

 

 

Assured Guaranty Inc.

 

AA

 

A1

 

243

 

 

 

-

 

 

 

-

 

 

 

(Stable Outlook)

 

(Stable Outlook)

 

 

 

 

 

 

 

 

Others

 

A or above

 

WR(2) or above

 

5

 

 

 

-

 

 

 

-

 

Total

 

 

 

 

$

504

 

 

$

18

 

 

$

13

 

 

(1) - Total reinsurance recoverable/(payable) is primarily related to recoverables on paid and unpaid losses net of paid and unpaid salvage due to reinsurers.

(2) - Represents a withdrawal of ratings.

v3.25.4
Insurance Regulations and Dividends
12 Months Ended
Dec. 31, 2025
Insurance Regulations And Dividends [Abstract]  
Insurance Regulations And Dividends

Note 13: Insurance Regulations and Dividends

National and MBIA Insurance Corporation are subject to insurance regulations and supervision of the State of New York (their state of domicile) and all U.S. and non-U.S. jurisdictions in which they are licensed to conduct insurance business. In order to maintain their New York State financial guarantee insurance license, National and MBIA Insurance Corporation are required to maintain a minimum of $65 million of policyholders’ surplus. MBIA Mexico was regulated by the Comisión Nacional de Seguros y Fianzas in Mexico and was dissolved during 2025. The extent of insurance regulation and supervision varies by jurisdiction, but New York and most other jurisdictions have laws and regulations prescribing minimum standards of solvency and business conduct, which must be maintained by insurance companies. Among other things, these laws prescribe permitted classes and concentrations of investments and limit both the aggregate and individual securities risks that National and MBIA Insurance Corporation may insure on a net basis based on the type of obligations insured. In addition, some insurance laws and regulations require the approval or filing of policy forms and rates. National and MBIA Insurance Corporation are required to file detailed annual financial statements with the NYSDFS. The operations and accounts of National and MBIA Insurance Corporation are subject to examination by regulatory agencies at regular intervals.

Statutory Capital and Regulations

National

For 2025, 2024 and 2023, National had statutory net income of $88 million and statutory net losses of $133 million and $142 million, respectively. As of December 31, 2025, National’s statutory capital was $937 million, consisting of policyholders’ surplus of $656 million and contingency reserves of $281 million. As of December 31, 2024, National had statutory capital of $912 million.

As of December 31, 2025, National was in compliance with its aggregate risk limits under NYIL, but was not in compliance with certain of its single risk limits.

MBIA Insurance Corporation

For 2025, 2024 and 2023, MBIA Insurance Corporation had statutory net losses of $26 million, $64 million and $28 million, respectively. As of December 31, 2025, MBIA Insurance Corporation’s statutory capital was $79 million, consisting of policyholders’ surplus of $74 million and contingency reserves of $5 million. As of December 31, 2024, MBIA Insurance Corporation had statutory capital of $88 million. MBIA Insurance Corporation’s policyholders’ surplus as of December 31, 2025 and 2024 included negative unassigned surplus of $2.0 billion and $1.9 billion, respectively. MBIA Insurance Corporation’s policyholders’ surplus may be further negatively impacted if future additional insured losses are incurred.

As of December 31, 2025, MBIA Insurance Corporation was in compliance with its aggregate risk limits under the NYIL, but was not in compliance with certain of its single risk limits.

Dividends

NYIL regulates the payment of dividends by financial guarantee insurance companies and provides that such companies may not declare or distribute dividends except out of statutory earned surplus. Under NYIL, the sum of (i) the amount of dividends declared or distributed during the preceding 12-month period and (ii) the dividend to be declared may not exceed the lesser of (a) 10% of policyholders’ surplus, as reported in the latest statutory financial statements or (b) 100% of adjusted net investment income for such 12-month period (the net investment income for such 12-month period plus the excess, if any, of net investment income over dividends declared or distributed during the two-year period preceding such 12-month period), unless the Superintendent of the NYSDFS approves a greater dividend distribution based upon a finding that the insurer will retain sufficient surplus to support its obligations.

During 2025 and 2024, National declared and paid as-of-right dividends of $63 million and $69 million, respectively, to its ultimate parent, MBIA Inc.

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Note 13: Insurance Regulations and Dividends (continued)

During 2025, MBIA Insurance Corporation did not declare or pay any dividends to MBIA Inc. or the holders of its preferred stock. MBIA Insurance Corporation is currently unable to pay dividends, including those related to its preferred stock, as a result of its earned surplus deficit as of December 31, 2025, and is not expected to have any statutory capacity to pay dividends in the near term. Additionally, as a result of MBIA Insurance Corporation obtaining approval from the NYSDFS to release excess contingency reserves in previous periods, MBIA Insurance Corporation agreed that it would not pay any dividends without prior approval from the NYSDFS.

v3.25.4
Benefit Plans
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Benefit Plans

Note 14: Benefit Plans

Long-term Incentive Plans

Plan Description

The Company maintains the Amended and Restated MBIA Inc. Omnibus Incentive Plan (the “Omnibus Plan”), which was originally effective upon approval by the shareholders of the Company on May 5, 2005, as amended, and has been subsequently amended and restated upon approval by the shareholders in May 2025. Under the Omnibus Plan a maximum of 20,750,000 shares of the Company’s common stock can be used for any type of award including stock options, performance shares, performance units, restricted stock, restricted stock units and dividend equivalents. Any shares issued under the Omnibus Plan in connection with stock options shall be counted against this limit as 1 share covered by such option. For all awards other than stock options, any shares issued shall be counted against this limit as 1.28 shares for every share issued after the May 1, 2012 amendment and two shares for every share issued prior to the May 1, 2012 amendment. In 2025 and 2024, the type of equity awards granted by the Company were time-based restricted stock. In 2023, the Company granted time and performance based restricted stock awards.

Under the restricted stock component of the Omnibus Plan, certain employees and non-employee directors of the Company are granted restricted shares of the Company’s common stock. The employee awards have a restriction period lasting between three to five years depending on the type of award, after which time the awards fully vest. During the vesting period, these shares may not be sold. Restricted stock may be granted to all employees.

There were 3,325,068 shares available for future grants under the Omnibus Plan as of December 31, 2025.

In accordance with accounting guidance for share-based payments, the Company expenses the fair value of stock-based compensation as described in the following sections. In addition, the guidance classifies share-based payment awards as either liability awards, which are remeasured at fair value at each balance sheet date, or equity awards, which are measured on the grant date and not subsequently remeasured. Generally, awards with cash-based settlement repurchase features or that are settled at a fixed dollar amount are classified as liability awards, and changes in fair value will be reported in earnings. Awards with net-settlement features are classified as equity awards and changes in fair value are not reported in earnings. The Company’s long-term incentive plans include features which result in equity awards. In addition, the guidance requires the use of a forfeiture estimate. The Company uses historical employee termination information to estimate the forfeiture rate applied to current stock-based awards.

The Company maintains voluntary retirement benefits, which provide certain benefits to eligible employees of the Company upon retirement. A description of these benefits is included in the Company’s proxy statement. One of the components of the retirement program for those employees that are retirement eligible is to continue to vest all performance-based restricted stock awards beyond the retirement date in accordance with the original vesting terms and to immediately vest all outstanding time-based restricted stock grants. The accounting guidance for share-based payment requires compensation costs for those employees to be recognized from the date of grant through the retirement eligible date. Accelerated expense, if any, relating to this retirement benefit for restricted stock awards has been included in the compensation expense amounts. Refer to the “Performance Based Awards” section below for additional information on compensation expense.

 

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 14: Benefit Plans (continued)

Restricted Stock

The fair value of the restricted shares awarded, net of cancellations, determined on the grant date during 2025 was $4 million and 2024 was $5 million, respectively. The amount of unearned compensation, net of estimated forfeitures, was $2 million as of December 31, 2025, which is expected to be recognized as expense over a weighted average period of 1.92 years. Unearned compensation is amortized to expense over the appropriate vesting period.

In connection with the MBIA Inc. dividend payment to shareholders in 2023, payments to restricted stockholders was considered a modification of the original restricted stock awards since the dividend payment was required to be made to restricted stockholders. There was no additional compensation expense recognized on the restricted stock awards as a result of the dividend payment, since the fair value of the awards immediately before the modification was the same as the fair value of the awards after the modification, including the cash payment. Therefore, the dividend payment to restricted stockholders was effectively a cash settlement of a portion of the original awards since no future service is required to earn the cash. Since the restricted stock awards were unvested at the modification date, the dividend payment accelerated the recognition of compensation expense by $5 million in 2023 for the portion of the arrangement that was settled.

Compensation expense related to the restricted shares, net of estimated forfeitures, was $4 million, $7 million and $18 million for the years ended December 31, 2025, 2024 and 2023, respectively. There was no tax charge related to the restricted share awards during 2025, 2024 and 2023 after consideration of the Company’s valuation allowance.

A summary of the Company’s restricted shares outstanding as of December 31, 2025, 2024 and 2023, and changes during the years ended on those dates, is presented in the following table:

 

 

Restricted Share Activity

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

Number of Shares

 

 

Weighted Average Price Per Share

 

 

Number of Shares

 

 

Weighted Average Price Per Share

 

 

Number of Shares

 

 

Weighted Average Price Per Share

 

Outstanding at beginning of year

 

 

3,997,476

 

 

$

9.4675

 

 

 

4,838,270

 

 

$

9.9295

 

 

 

5,759,505

 

 

$

9.5583

 

Granted

 

 

817,072

 

 

 

5.0485

 

 

 

793,891

 

 

 

6.4543

 

 

 

519,238

 

 

 

11.6314

 

Vested

 

 

(2,784,391

)

 

 

9.6484

 

 

 

(1,418,225

)

 

 

8.6867

 

 

 

(1,440,473

)

 

 

9.0587

 

Forfeited

 

 

 

 

 

 

 

 

(216,460

)

 

 

13.8595

 

 

 

 

 

 

 

Outstanding at end of year

 

 

2,030,157

 

 

$

7.4409

 

 

 

3,997,476

 

 

$

9.4675

 

 

 

4,838,270

 

 

$

9.9295

 

Performance Based Awards

During 2023, the Company granted 255,340 restricted shares, respectively, to certain key employees which have a vesting schedule dependent on the achievement of certain stock price targets of the Company. The grants and corresponding compensation expense have been included in the above restricted stock disclosures. As permitted by the accounting guidance for share-based payments, the Company estimates the fair value of awards that contain market performance conditions at the date of grant using a binomial lattice model with a Monte Carlo simulation and recognizes compensation cost over the requisite service period. The binomial lattice model can better incorporate assumptions about a stock price path because the model can accommodate a large number of potential stock prices over the award’s term in comparison to the Black-Scholes model. As of December 31, 2025 and 2023, certain previously awarded grants exceeded the stock price performance target which resulted in issuing additional shares. In 2025 and 2024, restricted shares of 41,307 and 71,193, respectively, representing the dividend value of the above target shares were granted by the Company and will vest on the same vesting schedule as the performance shares. The corresponding issuance of additional shares has been included in the above restricted stock disclosure. As of December 31, 2024, certain previously awarded grants did not meet the stock price performance target. The corresponding cancellation of shares has been included in the above restricted stock disclosures.

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 14: Benefit Plans (continued)

Deferred Cash Awards

During 2025, the Company granted deferred cash awards for certain employees, primarily executive officers. These awards generally vest over a three year requisite service period and are recognized as compensation expense on a straight-line basis over the vesting term. For certain awards, compensation expense is recognized from the date of grant through the retirement eligible date. For the year ended December 31, 2025, the Company recognized $4 million in compensation expense related to these awards. As of December 31, 2025, the total accrued liability related to these awards was $4 million.

Pension, 401(k) and Deferred Compensation Plans

The Company maintains a qualified non-contributory defined contribution pension plan to which the Company contributes 10% of each eligible employee’s annual compensation. Annual compensation for determining such contributions consists of base salary and bonus, as applicable, up to a maximum of $2 million. Pension benefits vest over the first five-year period of employment with 20% vested after two years, 60% vested after three years, 80% vested after four years and 100% vested after five years. The Company funds the annual pension contribution by the following February of each applicable year.

The Company also maintains a qualified 401(k) plan. The plan is a voluntary contributory plan that allows eligible employees to defer compensation for federal income tax purposes under Section 401(k) of the Internal Revenue Code of 1986, as amended. Employees may contribute, through payroll deductions, up to 25% of eligible compensation. The Company matches employee contributions up to the first 5% of such compensation. The 401(k) matching contributions are made in the form of cash, whereby participants may direct the Company match to an investment of their choice. The 401(k) matching benefits vest over the first five-year period of employment with 20% vested after two years, 60% vested after three years, 80% vested after four years and 100% vested after five years. Generally, a participating employee is entitled to distributions from the plans upon termination of employment, retirement, death or disability.

In addition to the above two plans, the Company maintains a non-qualified deferred compensation plan. Contributions to the above qualified plans that exceed limitations established by federal regulations are then contributed to the non-qualified deferred compensation plan.

Expenses related to these plans for each of the years ended December 31, 2025, 2024 and 2023 were $2 million.

v3.25.4
Earnings Per Share
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Earnings Per Share

Note 15: Earnings Per Share

Earnings per share is calculated using the two-class method in which earnings are allocated to common stock and participating securities based on their rights to receive nonforfeitable dividends or dividend equivalents. The Company grants restricted stock to certain employees and non-employee directors in accordance with the Company’s long-term incentive programs, which entitle the participants to receive nonforfeitable dividends or dividend equivalents during the vesting period on the same basis as those dividends are paid to common shareholders. These unvested stock awards represent participating securities. During periods of net income, the calculation of earnings per share exclude the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. During periods of net loss, no effect is given to participating securities in the numerator and the denominator excludes the dilutive impact of these securities since they do not share in the losses of the Company.

Basic earnings per share excludes dilution and is reported separately for continuing operations and discontinued operations. Basic earnings per share for continuing operations and discontinued operations is computed by dividing net income from continuing operations and discontinued operations available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the dilutive effect of all unvested restricted stock outstanding during the period that could potentially result in the issuance of common stock. The dilution from unvested restricted stock is calculated by applying the two-class method and using the treasury stock method. The treasury stock method assumes the proceeds from the unrecognized compensation expense from unvested restricted stock will be used to purchase shares of the Company’s common stock at the average market price during the period. If the potentially dilutive securities disclosed in the table below become vested, the transaction would be net share settled resulting in a significantly lower impact to the outstanding share balance in comparison to the total amount of the potentially dilutive securities. During periods of net loss, unvested restricted stock is excluded from the calculation because it would have an antidilutive effect. Therefore, in periods of net loss, the calculation of basic and diluted earnings per share would result in the same value.

 

The following table presents the computation of basic and diluted earnings per share for the years ended December 31, 2025, 2024 and 2023:

 

 

 

 

Years Ended December 31,

 

In millions except per share amounts

2025

 

 

2024

 

 

2023

 

Basic and diluted earnings per share:

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations available to common shareholders

$

(181

)

 

$

(441

)

 

$

(484

)

Less: Net income (loss) from continuing operations attributable to noncontrolling interests

 

(6

)

 

 

-

 

 

 

-

 

Net income (loss) from continuing operations attributable to MBIA Inc.

 

(175

)

 

 

441

 

 

 

484

 

Income (loss) from discontinued operations, net of income taxes

 

(2

)

 

 

(3

)

 

 

(3

)

Less: Net income (loss) from discontinued operations attributable to noncontrolling interests

 

-

 

 

 

3

 

 

 

4

 

Net income (loss) from discontinued operations attributable to MBIA Inc.

 

(2

)

 

 

(6

)

 

 

(7

)

Net income (loss) attributable to MBIA Inc.

$

(177

)

 

$

435

 

 

$

477

 

Basic and diluted weighted average shares (1)

 

49.3

 

 

 

47.4

 

 

 

48.2

 

Net income (loss) per common share attributable to MBIA Inc. - basic and diluted:

 

 

 

 

 

 

 

 

Continuing operations

$

(3.53

)

 

$

(9.31

)

 

$

(10.03

)

Discontinued operations

 

(0.05

)

 

 

(0.12

)

 

 

(0.15

)

Net income (loss) per share attributable to MBIA Inc. - basic and diluted

$

(3.58

)

 

$

(9.43

)

 

$

(10.18

)

Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect

 

0.9

 

 

 

3.2

 

 

 

4.3

 

 

 

(1) - Includes approximately 1 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for each of the years ended December 31, 2025, 2024 and 2023 respectively.

v3.25.4
Common and Preferred Stock
12 Months Ended
Dec. 31, 2025
Stockholders' Equity Note [Abstract]  
Common And Preferred Stock

Note 16: Common and Preferred Stock

Common Stock

Share Repurchases

Purchases or repurchases of common stock may be made from time to time in the open market or in private transactions as permitted by securities laws and other legal requirements. The Company believes that share purchases or repurchases can be an appropriate deployment of capital in excess of amounts needed to support the Company’s liquidity while maintaining the claims-paying resources of MBIA Corp. and National, as well as other business needs. On May 3, 2023, the Company’s Board of Directors approved a share repurchase program authorizing the Company and/or National to purchase up to $100 million of the Company’s shares in open market transactions, in privately negotiated transactions or by any other legal means. During 2025 and 2024, MBIA Inc. or National did not repurchase or purchase any MBIA Inc. common shares. As of December 31, 2025, the remaining authorization under this share repurchase program was $71 million. If applicable, any excise tax on share repurchases is reflected as an additional cost of the shares acquired and is recorded within “Treasury stock, at cost” with a corresponding liability recorded within “Other liabilities” on the Company’s consolidated balance sheets.

Preferred Stock

As of December 31, 2025, MBIA Insurance Corporation had 2,759 shares of preferred stock issued and outstanding with a carrying value of $28 million, including 1,444 shares held by MBIA Inc. that were purchased at a weighted average price of $10,900 per share or 10.9% of face value and 1,315 shares held by unaffiliated investors. During 2025, MBIA Inc. did not repurchase any additional shares.

In accordance with MBIA’s fixed-rate election, the dividend rate on the preferred stock was determined using a fixed-rate equivalent of SOFR plus 2.26161%. Each share of preferred stock has a par value of $1,000 with a liquidation preference of $100,000. The holders of the preferred stock are generally not entitled to any voting rights. Subject to certain requirements, the preferred stock may be redeemed, in whole or in part, at the option of MBIA Corp. at any time or from time to time for cash at a redemption price equal to the liquidation preference per share plus any accrued and unpaid dividends thereon at the date of redemption for the then current dividend period and any previously accumulated dividends payable without interest on such unpaid dividends. As of December 31, 2025 and 2024, there were no dividends declared on the preferred stock. Payment of dividends on MBIA Corp.’s preferred stock is subject to the same restrictions that apply to dividends on common stock under NYIL.

v3.25.4
Accumulated Other Comprehensive Income
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Accumulated Other Comprehensive Income

Note 17: Accumulated Other Comprehensive Income

The following table presents the changes in the components of AOCI for the years ended December 31, 2025, 2024 and 2023:

 

In millions

 

Unrealized Gains (Losses) on AFS Securities, Net

 

 

Foreign Currency Translation, Net

 

 

Instrument-Specific Credit Risk of Liabilities Measured at Fair Value, Net

 

 

Total

 

 

Balance, January 1, 2023

 

$

(234

)

 

$

(4

)

 

$

(45

)

 

$

(283

)

 

 

Other comprehensive income (loss) before reclassifications

 

 

33

 

 

 

-

 

 

 

(1

)

 

 

32

 

 

 

Amounts reclassified from AOCI

 

 

67

 

 

 

-

 

 

 

45

 

 

 

112

 

 

Net period other comprehensive income (loss)

 

 

100

 

 

 

-

 

 

 

44

 

 

 

144

 

 

Balance, December 31, 2023

 

$

(134

)

 

$

(4

)

 

$

(1

)

 

$

(139

)

 

 

Other comprehensive income (loss) before reclassifications

 

 

(19

)

 

 

(1

)

 

 

-

 

 

 

(20

)

 

 

Amounts reclassified from AOCI

 

 

3

 

 

 

-

 

 

 

28

 

 

 

31

 

 

Net period other comprehensive income (loss)

 

 

(16

)

 

 

(1

)

 

 

28

 

 

 

11

 

 

Balance, December 31, 2024

 

$

(150

)

 

$

(5

)

 

$

27

 

 

$

(128

)

 

 

Other comprehensive income (loss) before reclassifications

 

 

29

 

 

 

-

 

 

 

(8

)

 

 

21

 

 

 

Amounts reclassified from AOCI

 

 

7

 

 

 

5

 

 

 

-

 

 

 

12

 

 

Net period other comprehensive income (loss)

 

 

36

 

 

 

5

 

 

 

(8

)

 

 

33

 

 

Balance, December 31, 2025

 

$

(114

)

 

$

-

 

 

$

19

 

 

$

(95

)

 

 

The following table presents the details of the reclassifications from AOCI for the years ended December 31, 2025, 2024 and 2023:

In millions

 

Amounts Reclassified from AOCI

 

 

 

 

 

 

Years Ended December 31,

 

 

 

Details about AOCI Components

 

2025

 

 

2024

 

 

2023

 

 

Affected Line Item on the Consolidated Statements of Operations

Unrealized gains (losses) on AFS securities:

 

 

 

 

 

 

 

 

 

 

 

 

Realized gains (losses) on sale of securities

 

$

(7

)

 

$

(3

)

 

$

(67

)

 

Net realized investment gains (losses)

Foreign currency translation:

 

 

 

 

 

 

 

 

 

 

 

 

Liquidation of MBIA Mexico

 

 

(5

)

 

 

-

 

 

 

-

 

 

Net gains (losses) on financial instruments at fair value and foreign exchange

Instrument-specific credit risk of liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Deconsolidation of VIEs

 

 

-

 

 

 

(9

)

 

 

(20

)

 

Other net realized gains (losses) - VIEs

 

Settlement of liabilities

 

 

-

 

 

 

(19

)

 

 

(25

)

 

Net gains (losses) on financial instruments at fair value and foreign exchange - VIEs

Total reclassifications for the period

 

$

(12

)

 

$

(31

)

 

$

(112

)

 

Net income (loss) attributable to MBIA Inc.

 

v3.25.4
Commitments and Contingencies
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Commitments and Contingencies

Note 18: Commitments and Contingencies

MBIA has received subpoenas or informal inquiries from a variety of regulators, regarding a variety of subjects. MBIA has cooperated fully with each of these regulators and has or is in the process of satisfying all such requests. MBIA may receive additional inquiries from these or other regulators and expects to provide additional information to such regulators regarding their inquiries in the future.

 

Litigation

 

Zohar CDO 2003-1, Ltd., et al. v. Patriarch Partners, LLC et al., Case No. 1:17-cv-0307-WHP (S.D.N.Y.)

 

On November 27, 2017, Lynn Tilton and certain affiliated entities including Patriarch Partners, LLC commenced a third-party complaint against MBIA Inc., MBIA Insurance Corp. and other Zohar Fund stakeholders seeking damages for alleged breaches of the contracts governing the Zohar Funds and additional alleged legal duties and obligations relating to the Funds. On December 22, 2020, the Company and the other third-party defendants moved to dismiss the third-party complaint. On July 6, 2021, following the completion of briefing on those motions to dismiss, the presiding judge, the Honorable William H. Pauley died, and the case was reassigned to the Honorable P. Kevin Castel. On September 29, 2021, Judge Castel issued a decision on the motions to dismiss; granting them almost in full, with certain claims being stayed rather than dismissed, pending further developments in the Adversary Proceedings pending in the Zohar Funds Bankruptcy Cases in Delaware Bankruptcy Court.

 

Zohar Litigation Trust-A v. Tilton, et al. (f/k/a MBIA Insurance Corp. v. Tilton et al.),Adversary Case No. 20-50776 (KBO) (Bankr. Del.)

 

On July 30, 2020, MBIA Corp. commenced an adversary proceeding in the Zohar Funds Bankruptcy Cases against Lynn Tilton and certain affiliated entities seeking damages incurred by MBIA Corp. in connection with insurance policies it issued on senior notes issued by Zohar I and Zohar II. On July 23, 2021, the court denied in part and granted in part Tilton’s and her affiliated defendants’ motion to dismiss the complaint. The court denied defendants’ motion with respect to MBIA’s claims for breach of contract, tortious interference, unjust enrichment, and malicious prosecution of claims Tilton brought against MBIA in Delaware. On February 1, 2022, MBIA filed its most recent Amended Complaint pursuant to and in accordance with the court’s multiple rulings on defendants’ motion to dismiss and related filings regarding the parties’ pleadings. Defendants filed their Answer to MBIA’s most recent Amended Complaint on April 13, 2022. Following the confirmation of a liquidation plan of the Zohar Collateral by the Delaware Bankruptcy Court and that plan becoming effective on August 2, 2022, MBIA Corp.’s claims in this adversary proceeding, among other assets, were transferred and assigned to a litigation trust (Zohar Litigation Trust-A, or "the Trust") and distributed to MBIA Corp. in the form of interests in the Trust subject to oversight by MBIA Corp. and another former Zohar creditor. As a result, on September 12, 2022, the court ordered the substitution of the Trust, as successor-in-interest to MBIA Corp., for MBIA Corp. as plaintiff in this adversary proceeding. Accordingly, MBIA Corp. is no longer the plaintiff or party to this adversary proceeding. On September 13, 2022, the Delaware Bankruptcy Court ordered the consolidation of this adversary proceeding for discovery and pretrial proceedings with an adversary proceeding commenced in 2020 by the Zohar Funds against Lynn Tilton in the Delaware Bankruptcy Court. Pursuant to that order, all pleadings concerning the now-consolidated proceedings shall be filed only in the adversary proceeding captioned Zohar III, Corp. v. Patriarch Partners, LLC, Adv. Proc. No. 20-50534 (KBO).

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 18: Commitments and Contingencies (continued)

 

Complaint Objecting to Defendant's Claims and Seeking Related Relief, Case No. 17-BK-4780-LTS (D.P.R. July 1, 2019)

On July 1, 2019, the Oversight Board and the Puerto Rico Fiscal Agency and Financial Advisory Authority filed an adversary complaint against the Trustee for the PREPA bonds, challenging the validity of the liens arising under the Trust Agreement securing the insurance obligations of National. On September 30, 2022, the Oversight Board filed an amended complaint objecting to: (1) the secured claims asserted by the Trustee in PREPA’s assets; and (2) all unsecured claims of the Trustee, including as a result of the disallowance of the Trustee’s claims. The Oversight Board alleges that the Trustee’s security interest in PREPA’s property is limited to moneys deposited to the credit of the sinking fund and subordinate funds, and are non-recourse except as to the same sinking and subordinate funds moneys actually deposited. In addition it asserts that the Trust Agreement does not grant security interests in any of the covenants or remedies thereunder, that any security interests in deposit accounts other than those held by the Trustee are unperfected, and that there can be no security interest in the covenants and remedies, and if so, would be unperfected. The Defendants, including National, filed an answer and counterclaim on October 17, 2022. On October 24, 2022, the Oversight Board and Defendants each filed summary judgment motions seeking expedited resolution of certain counts in the amended complaint. On March 22, 2023, the Court ruled on summary judgment, finding the bondholders' liens only extend to the amount of funds held in certain specified accounts. In addition, the court determined that the unsecured portion of the bondholders' claims were subject to estimation of their scope. On January 29, 2024, the First Circuit Court of Appeals heard argument on the appeals and cross appeals of the parties. On June 12, 2024, the First Circuit Court of Appeals reversed Judge Swain's prior rulings and supported bondholder liens and claim amounts (the "Appeal Decision"). On June 26, 2024, the Oversight Board filed a petition for a First Circuit panel rehearing, and the UCC filed an en banc appeal. On November 13, 2024, the First Circuit affirmed the Appeal Decision. On November 27, 2024, the Oversight Board filed a petition for further rehearing, and on December 31, 2024, the First Circuit denied the rehearing request.

 

For those aforementioned actions in which it is a defendant, the Company is defending against those actions and expects ultimately to prevail on the merits. There is no assurance, however, that the Company will prevail in these actions. Adverse rulings in these actions could have a material adverse effect on the Company’s ability to implement its strategy and on its business, results of operations, cash flows and financial condition. At this stage of the litigation, there has not been a determination as to the amount, if any, of damages. Accordingly, the Company is not able to estimate any amount of loss or range of loss. The Company similarly can provide no assurance that it will be successful in those actions in which it is a plaintiff.

 

There are no other material legal proceedings pending or, to the knowledge of the Company, threatened, to which the Company or any of its subsidiaries is a party.

Lease Commitments

The Company has a lease agreement for its headquarters in Purchase, New York. In May of 2024, the Company notified its landlord of the Purchase, New York lease that it is exercising its right to terminate the lease in August of 2025 ("Termination Date"). The Company accounted for this termination as a lease modification and remeasured its lease liability to the present value of the remaining lease payments and adjusted its right-of-use ("ROU") asset as of the modification date in accordance with ASC 842. The Company paid a termination fee that included the unamortized amount of incentives, free rent and other costs at the Termination Date. In June of 2025, the Company executed a partial reinstatement of its Purchase, New York lease that includes a portion of its original leased space with an initial term expiring in 2029. The Company accounted for this partial reinstatement as a lease modification and remeasured its lease liability to the present value of the remaining lease payments and adjusted its ROU asset as of the modification date in accordance with ASC 842. The partially reinstated lease was classified as an operating lease with expense being recognized on a straight-line basis.

 

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 18: Commitments and Contingencies (continued)

 

The following table provides information about the Company’s lease as of December 31, 2025:

 

$ in millions

 

As of

December 31, 2025

 

 

Balance Sheet

Location

 

Right-of-use asset

 

$

2

 

 

 

Other assets

 

Lease liability

 

$

2

 

 

 

Other liabilities

 

Weighted average remaining lease term (years)

 

 

3.3

 

 

 

 

 

Discount rate used for operating leases

 

 

9.5%

 

 

 

 

 

Total future minimum lease payments

 

$

2

 

 

 

 

 

 

Other Commitment

 

MBIA Corp. and other non-affiliates agreed to provide a delayed draw term loan commitment to an entity which MBIA Corp. holds as an equity investment. MBIA Corp.'s maximum commitment to this loan is approximately $15 million which was fully drawn and outstanding as of December 31, 2025.

v3.25.4
Schedule I - Investments
12 Months Ended
Dec. 31, 2025
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract]  
Schedule I - Summary Of Investments, Other Than Investments In Related Parties

SCHEDULE I

MBIA INC. AND SUBSIDIARIES

SUMMARY OF INVESTMENTS, OTHER THAN INVESTMENTS IN RELATED PARTIES

December 31, 2025

(In millions)

 

 

 

 

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount at

 

 

 

 

 

 

 

 

 

 

 

 

 

which shown

 

 

 

 

 

 

 

 

 

 

 

 

 

in the

 

Type of investment

 

Cost

 

 

Fair Value

 

 

balance sheet

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency

 

$

178

 

 

$

168

 

 

$

168

 

 

State and municipal bonds

 

 

106

 

 

 

101

 

 

 

101

 

 

Foreign governments

 

 

7

 

 

 

5

 

 

 

5

 

 

Corporate obligations

 

 

462

 

 

 

367

 

 

 

367

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

125

 

 

 

114

 

 

 

114

 

 

 

Residential mortgage-backed non-agency

 

 

17

 

 

 

16

 

 

 

16

 

 

 

Commercial mortgage-backed

 

 

10

 

 

 

10

 

 

 

10

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

30

 

 

 

31

 

 

 

31

 

 

 

Other asset-backed

 

 

229

 

 

 

230

 

 

 

230

 

 

 

 

Total long-term available-for-sale

 

 

1,164

 

 

 

1,042

 

 

 

1,042

 

 

Short-term available-for-sale

 

 

300

 

 

 

300

 

 

 

300

 

 

 

 

Total available-for-sale

 

 

1,464

 

 

 

1,342

 

 

 

1,342

 

Investments at fair value

 

 

387

 

 

 

332

 

 

 

332

 

Other investments

 

1

 

 

 

1

 

 

 

1

 

 

 

 

Total investments

 

$

1,852

 

 

$

1,675

 

 

$

1,675

 

Assets of consolidated variable interest entities:

 

 

 

 

 

 

 

 

 

Loans receivable

 

$

41

 

 

$

34

 

 

$

34

 

 

 

 

 

Total investments of consolidated variable interest entities

$

41

 

 

$

34

 

 

$

34

 

v3.25.4
Schedule II- Parent Company Financials
12 Months Ended
Dec. 31, 2025
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, 2025

 

 

December 31, 2024

 

Assets

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $228 and $120)

 

$

226

 

 

$

114

 

 

Short-term investments, at fair value (amortized cost $278 and $445)

 

 

278

 

 

 

445

 

 

 

Total investments

 

 

504

 

 

 

559

 

Cash and cash equivalents

 

 

34

 

 

 

32

 

Other assets

 

 

5

 

 

 

1

 

 

 

Total assets

 

$

543

 

 

$

592

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Investment agreements

 

$

174

 

 

$

204

 

 

Long-term debt

 

 

233

 

 

 

278

 

 

Affiliate loans payable

 

 

511

 

 

 

478

 

 

Accumulated loss of wholly-owned subsidiaries

 

 

1,862

 

 

 

1,721

 

 

 

Total liabilities

 

 

2,780

 

 

 

2,681

 

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

 

 

283

 

 

 

283

 

 

Additional paid-in capital

 

 

2,450

 

 

 

2,492

 

 

Retained earnings (deficit)

 

 

(1,768

)

 

 

(1,591

)

 

Accumulated other comprehensive income (loss), net of tax

 

 

(95

)

 

 

(128

)

 

Treasury stock, at cost--232,675,865 and 232,215,934 shares

 

 

(3,107

)

 

 

(3,145

)

 

 

Total shareholders' equity of MBIA Inc.

 

 

(2,237

)

 

 

(2,089

)

 

 

Total liabilities and shareholders' equity

 

$

543

 

 

$

592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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,

 

 

 

 

 

 

2025

 

 

2024

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

 

 

 

Net investment income

 

$

23

 

 

$

27

 

 

$

21

 

 

Net realized investment gains (losses)

 

 

-

 

 

 

-

 

 

 

(32

)

 

Net gains (losses) on financial instruments at fair value and foreign exchange

 

 

(14

)

 

 

8

 

 

 

4

 

 

Other net realized gains (losses)

 

 

-

 

 

 

2

 

 

 

1

 

 

 

 

Total revenues

 

 

9

 

 

 

37

 

 

 

(6

)

Expenses:

 

 

 

 

 

 

 

 

 

 

Operating

 

 

10

 

 

 

13

 

 

 

15

 

 

Interest

 

 

69

 

 

 

72

 

 

 

76

 

 

 

 

Total expenses

 

 

79

 

 

 

85

 

 

 

91

 

 

Gain (loss) before income taxes and equity in earnings of subsidiaries

 

 

(70

)

 

 

(48

)

 

 

(97

)

Provision (benefit) for income taxes

 

 

(2

)

 

 

(2

)

 

 

(1

)

 

Gain (loss) before equity in earnings of subsidiaries

 

 

(68

)

 

 

(46

)

 

 

(96

)

Equity in net income (loss) of subsidiaries

 

 

(109

)

 

 

(401

)

 

 

(395

)

 

 

 

Net income (loss)

 

$

(177

)

 

$

(447

)

 

$

(491

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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,

 

 

 

 

 

 

2025

 

 

2024

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Investment income received

 

$

8

 

 

$

7

 

 

$

369

 

 

Operating expenses paid and other operating

 

 

(11

)

 

 

(9

)

 

 

(16

)

 

Interest paid, net of interest converted to principal

 

 

(67

)

 

 

(68

)

 

 

(72

)

 

Income taxes (paid) received

 

 

2

 

 

 

2

 

 

 

1

 

 

 

 

Net cash provided (used) by operating activities

 

 

(68

)

 

 

(68

)

 

 

282

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Purchases of available-for-sale investments

 

 

(136

)

 

 

(27

)

 

 

(67

)

 

Sales of available-for-sale investments

 

 

-

 

 

 

-

 

 

 

289

 

 

Paydowns and maturities of available-for-sale investments

 

 

30

 

 

 

51

 

 

 

65

 

 

Sales, paydowns and maturities (purchases) of short-term investments, net

 

 

179

 

 

 

54

 

 

 

(380

)

 

(Payments) proceeds for derivative settlements

 

 

-

 

 

 

(1

)

 

 

(38

)

 

Return of capital from subsidiaries, net

 

 

61

 

 

 

53

 

 

 

295

 

 

 

 

Net cash provided (used) by investing activities

 

 

134

 

 

 

130

 

 

 

164

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Proceeds from investment agreements

 

 

-

 

 

 

-

 

 

 

7

 

 

Principal paydowns of investment agreements

 

 

(16

)

 

 

(5

)

 

 

(12

)

 

Dividends paid

 

 

-

 

 

 

-

 

 

 

(409

)

 

Principal paydowns of long-term debt

 

 

(45

)

 

 

(1

)

 

 

-

 

 

Payments for affiliate loans

 

 

-

 

 

 

(62

)

 

 

(15

)

 

Restricted stock awards settlements, net of purchases of treasury stock

 

 

(3

)

 

 

5

 

 

 

-

 

 

 

 

Net cash provided (used) by financing activities

 

 

(64

)

 

 

(63

)

 

 

(429

)

Net increase (decrease) in cash and cash equivalents

 

 

2

 

 

 

(1

)

 

 

17

 

Cash and cash equivalents - beginning of year

 

 

32

 

 

 

33

 

 

 

16

 

Cash and cash equivalents - end of year

 

$

34

 

 

$

32

 

 

$

33

 

Reconciliation of net income (loss) to net cash provided (used) by operating activities:

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(177

)

 

$

(447

)

 

$

(491

)

 

Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:

 

 

 

 

 

 

 

 

 

 

 

Change in:

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany accounts receivable

 

 

(4

)

 

 

-

 

 

 

(20

)

 

 

Equity in earnings of subsidiaries

 

 

109

 

 

 

401

 

 

 

395

 

 

 

Dividends from subsidiaries

 

 

-

 

 

 

-

 

 

 

352

 

 

 

Net realized investment gains (losses)

 

 

-

 

 

 

-

 

 

 

32

 

 

 

Net (gains) losses on financial instruments at fair value and foreign exchange

 

 

14

 

 

 

(8

)

 

 

(4

)

 

 

Other net realized (gains) losses

 

 

-

 

 

 

(2

)

 

 

(1

)

 

 

Other operating

 

 

(10

)

 

 

(12

)

 

 

19

 

 

 

Total adjustments to net income (loss)

 

 

109

 

 

 

379

 

 

 

773

 

 

 

 

Net cash provided (used) by operating activities

 

$

(68

)

 

$

(68

)

 

$

282

 

 

 

 

 

 

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.

As of December 31, 2025, 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. In addition, as of December 31, 2025, the Parent Company held 1,444 shares of preferred stock of MBIA Insurance Corporation that was purchased at a weighted average price of $10,900 per share or 10.9% of face value.

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

The Parent Company is largely dependent on dividends from National to pay principal and interest on its indebtedness and operating expenses, among other items. Dividends from National are subject to various statutory and regulatory restrictions applicable to insurance companies generally, that limit the amount of cash dividends, loans and advances that it may pay. See “Note 13: Insurance Regulations and Dividends” in the Notes to Consolidated Financial Statements of MBIA Inc. and Subsidiaries in Part II, Item 8 of this Form 10-K for a further discussion of dividends and its restrictions.

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 footnotes 8 and 9 to the Company’s consolidated financial statements for information of investment agreements including the requirements for the Parent Company and its subsidiaries to pledge securities as collateral regarding its obligations under investment agreements.

6. 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.

v3.25.4
Schedule IV - Reinsurance
12 Months Ended
Dec. 31, 2025
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract]  
Supplemental Schedule of Reinsurance Premiums for Insurance Companies

SCHEDULE IV

MBIA INC. AND SUBSIDIARIES

REINSURANCE

Years Ended December 31, 2025, 2024 and 2023

(In millions)

 

Column A

 

Column B

 

 

Column C

 

 

Column D

 

 

Column E

 

 

Column F

 

Insurance Premium Written

 

Direct Amount

 

 

Ceded to Others

 

 

Assumed from Other Companies

 

 

Net Amount

 

 

Percentage of Amount Assumed to Net

 

2025

 

$

3

 

 

$

-

 

 

$

-

 

 

$

3

 

 

 

0

%

2024

 

$

4

 

 

$

-

 

 

$

-

 

 

$

4

 

 

 

0

%

2023

 

$

5

 

 

$

-

 

 

$

-

 

 

$

5

 

 

 

0

%

 

 

 

v3.25.4
Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Basis of Presentation

Basis of Presentation

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As additional information becomes available or actual amounts become determinable, the recorded estimates are revised and reflected in operating results. Certain amounts have been reclassified in prior years’ financial statements to conform to the current presentation.

Consolidation

Consolidation

The consolidated financial statements include the accounts of MBIA Inc., its wholly-owned subsidiaries and all other entities in which the Company has a controlling financial interest. All intercompany balances and transactions have been eliminated. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether an entity is a voting interest entity or a VIE.

Voting interest entities are entities in which (i) the total equity investment at risk is sufficient to enable an entity to finance its activities independently and (ii) the equity holders have the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. Voting interest entities are consolidated when the Company has a majority voting interest.

VIEs are entities that lack one or more of the characteristics of a voting interest entity. The consolidation of a VIE is required if an entity has a variable interest (such as an equity or debt investment, a beneficial interest, a guarantee, a written put option or a similar obligation) and that variable interest or interests give it a controlling financial interest in the VIE. A controlling financial interest is present when an enterprise has both (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The enterprise with the controlling financial interest, known as the primary beneficiary, is required to consolidate the VIE. The Company consolidates all VIEs in which it is the primary beneficiary. The Company may elect to apply the fair value option to the financial assets and financial liabilities of consolidated VIEs on a VIE-by-VIE basis. Refer to “Note 4: Variable Interest Entities” for additional information.

Investments

Investments

The Company classifies its fixed-maturity investments as available-for-sale (“AFS”), held-to-maturity or trading. AFS investments are reported in the consolidated balance sheets at fair value with non-credit related unrealized gains and losses, net of applicable deferred income taxes, reflected in accumulated other comprehensive income (loss) (“AOCI”) in shareholders’ equity. The specific identification method is used to determine realized gains and losses on AFS securities. Investments carried at fair value consist of equity instruments and fixed-maturity investments elected under the fair value option. Short-term investments include all fixed-maturity securities held as AFS with a remaining maturity of less than one year at the date of purchase, including commercial paper and money market securities.

Investment income is recorded as earned, which includes the current period interest accruals deemed collectible. Accrued interest income is recorded as part of “Other assets” on the Company’s consolidated balance sheets. Bond discounts and premiums are amortized using the effective yield method over the remaining term of the securities and reported within “Net investment income” on the Company’s consolidated statements of operations; however, premiums on certain callable debt securities are amortized to the next call date. As the Company primarily holds high-quality asset-backed ("ABS") and mortgage-backed ("MBS") securities purchased without expectation of principal loss, premiums and discounts are amortized into interest income using the retrospective method based on probable and reasonably estimable prepayment experience.

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 2: Significant Accounting Policies (continued)

Changes in the fair values of investments carried at fair value are reflected in earnings as part of “Net gains (losses) on financial instruments at fair value and foreign exchange” on the Company’s consolidated statements of operations. For VIE investments carried at fair value, interest income is also recorded as part of fair value changes within “Net gains (losses) on financial instruments at fair value and foreign exchange”. Realized gains and losses from the sale and other dispositions of AFS investments are reflected in earnings as part of “Net realized investment gains (losses)” on the Company’s consolidated statements of operations.

Credit Losses

For AFS debt securities, the Company’s consolidated statements of operations reflect the full impairment (the difference between a security’s amortized cost basis and fair value) if the Company intends to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis. AFS debt securities in an unrealized loss position are evaluated on a quarterly basis to determine if credit losses exist. The Company considers that credit losses exist when the Company does not expect to recover the entire amortized cost basis of the debt security. The Company measures an allowance for credit losses on a security-by-security basis as the difference between the recorded investment and the present value of the cash flows expected to be collected, discounted at the instrument’s effective interest rate. Only the amounts of impairment associated with the credit losses are recognized as charges to earnings.

The carrying values of debt securities are presented net of any allowance for credit losses. For AFS debt securities, adjustments to the amortized cost basis are recorded if there is an intent to sell before recovery of the impairment. For debt securities with an allowance for credit loss, changes in credit losses including accretion of the allowance for credit losses are recognized in earnings through other net realized gains (losses) with a corresponding change to the allowance for credit losses.

Accrued interest income on debt securities is not assessed for credit losses since the Company reverses any past due accrued interest income through earnings as a charge against net investment income. Interest income is subsequently recognized to the extent cash is received.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, demand deposits, and deposits with banks with original maturities of less than three months.

Deferred Acquisition Costs

Deferred Acquisition Costs

The Company deferred acquisition costs that were directly related to new or renewal insurance business. Acquisition costs are costs to acquire an insurance contract which result directly from and are essential to the insurance contract and would not have been incurred by the Company had the contract not occurred. Acquisition costs include compensation of employees involved in underwriting, certain rating agency fees, state premium taxes and certain other underwriting expenses, reduced by ceding commission income on premiums ceded to reinsurers. Acquisition costs also included ceding commissions paid by the Company in connection with assuming business from other financial guarantors. Acquisition costs, net of ceding commissions received, related to non-derivative insured financial guarantee transactions are deferred and amortized over the period in which the related premiums are earned.

Held For Sale Classification and Discontinued Operations

Held For Sale Classification and Discontinued Operations

The net assets the Company classifies as held for sale in accordance with Accounting Standards Codification (“ASC”) 360-10, Property, Plant, and Equipment and as discontinued operations in accordance with ASC 205-20, Presentation of Financial Statements-Discontinued Operations has been held for sale beyond the one-year probable sale criteria. The Company continues to meet exceptions permitting it to continue to record these net assets as held for sale. The Company continues to actively market its net assets held for sale and has identified interested parties, including having attained various stages of a sales or liquidation process. In addition, the Company has continued to (i) take necessary actions to respond to changes in circumstances, including recording a loss on disposal group; (ii) actively market the net assets at prices that are deemed reasonable; and (iii) meet the criteria for held for sale classification. The assets and liabilities of these companies are presented within “Assets held for sale” and “Liabilities held for sale” on the Company’s consolidated balance sheets. Also, the results of operations for these companies are classified as "Income from discontinued operations, net of income taxes" on the Company’s consolidated statements of operations. The Company consolidated the operating results of these portfolio companies on a two-month lag to allow for a more timely preparation of the Company's consolidated financial statements. Refer to “Note 1: Business Developments and Risks and Uncertainties” for further information about the Company’s held for sale assets and liabilities and discontinued operations.

Fair Value Measurements-Definition and Hierarchy

Fair Value Measurements—Definition and Hierarchy

The Company carries certain financial instruments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement of financial instruments held or issued by the Company are determined through the use of observable market data when available. Market data is obtained from a variety of third-party sources, including dealer quotes. If dealer quotes are not available for an instrument that is infrequently traded, the Company uses alternate valuation methods, including either dealer quotes for similar instruments or pricing models that use market data inputs. The use of alternate valuation methods generally requires considerable judgment in the application of estimates and assumptions and changes to such estimates and assumptions may produce materially different fair values. The Company considers its own nonperformance risk and the nonperformance risk of its counterparties when measuring fair value.

The accounting guidance establishes a fair value hierarchy that categorizes into three levels, the inputs used to measure fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available and reliable. Observable inputs are those that the Company believes market participants would use in pricing an asset or liability based on available market data. Unobservable inputs are those that reflect the Company’s beliefs about the assumptions market participants would use in pricing the asset or liability based on the best information available. The three levels of the fair value hierarchy are defined as follows:

Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 2 assets include debt securities with quoted prices that are traded less frequently than exchange-traded instruments, securities which are priced using observable inputs and derivative contracts whose values are determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data.
Level 3—Valuations based on inputs that are unobservable or supported by little or no market activity, and that are significant to the overall fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques where significant inputs are unobservable, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 2: Significant Accounting Policies (continued)

The availability of observable inputs can vary from financial instrument to financial instrument and period to period depending on the type of instrument, market activity, the approach used to measure fair value, and other factors. The Company categorizes a financial instrument within the fair value hierarchy based on the least observable input that is significant to the fair value measurement. When the inputs used to measure fair value of an asset or a liability are categorized within different levels based on the definition of the fair value hierarchy, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

Refer to “Note 7: Fair Value of Financial Instruments” for additional fair value disclosures.

Loss and Loss Adjustment Expenses

Loss and Loss Adjustment Expenses

The Company recognizes loss reserves on a contract-by-contract basis when the present value of probability-weighted expected net cash outflows to be paid under the contract discounted using a risk-free rate as of the measurement date exceed the unearned premium revenue. A loss reserve is subsequently remeasured each reporting period for expected increases or decreases due to changes in the likelihood of default and potential recoveries. Subsequent changes to the measurement of loss reserves are recognized as loss expense or benefit in the period of change. Measurement and recognition of loss reserves are reported gross of any reinsurance on the Company’s consolidated balance sheets. The Company estimates the likelihood of possible claim payments and possible recoveries of such claim payments using probability-weighted expected cash flows as of the measurement date based on information available, including market information. Accretion of the discounts on loss reserves and recoveries is included in loss expense. The Company considers its ability to collect contractual interest on claim payments when developing its expected inflows, if applicable.

The Company recognizes potential recoveries on paid claims based on probability-weighted cash inflows that are present valued at U.S. risk-free rates as of the measurement date. Such amounts are reported within “Insurance loss recoverable” on the Company’s consolidated balance sheets. To the extent the Company had recorded potential recoveries in its loss reserves previous to a claim payment, such recoveries are reclassified to “Insurance loss recoverable” upon payment of the related claim and remeasured at each reporting period.

The Company’s loss reserves, insurance loss recoverable, and accruals for loss adjustment expense (“LAE”) incurred are disclosed in “Note 6: Loss and Loss Adjustment Expense Reserves.”

Long-term Debt

Long-term Debt

Long-term debt, including VIE loans payable, is carried at the principal amount outstanding plus accrued interest and net of unamortized debt issuance costs and discounts. Interest expense is accrued at the contractual interest rate. Debt issuance costs and discounts are amortized and reported as interest expense.

For long-term debt issued by consolidated VIEs in which the Company's variable interest arises from financial guarantees written by its insurance operations, the Company has elected the fair value option on these instruments. Changes in fair value are reported within “Net gains (losses) on financial instruments at fair value and foreign exchange” under “Revenues of consolidated variable interest entities” on the Company’s consolidated statements of operations, except for the portion of the total change in fair value of financial liabilities caused by changes in the instrument-specific credit risk which is presented separately in AOCI in shareholders' equity.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 2: Significant Accounting Policies (continued)

Medium-Term Notes and Investment Agreements

Medium-term notes ("MTNs") and investment agreements are generally carried at the principal amount outstanding plus accrued interest and are net of unamortized discounts. One MTN that is a hybrid financial instrument was elected to be accounted for fair value given the complexity of bifurcating the embedded derivative. For the MTN carried at fair value, changes in fair value are recorded in earnings, except for the portion of unrealized gains (losses) caused by a change in the instrument-specific credit risk which are recorded in AOCI. Interest expense is accrued at the contractual interest rate. Discounts are amortized and reported as interest expense.

Financial Guarantee Insurance Premiums

Financial Guarantee Insurance Premiums

Unearned Premium Revenue and Receivable for Future Premiums

The Company recognized a liability for unearned premium revenue at the inception of financial guarantee insurance and reinsurance contracts on a contract-by-contract basis. Unearned premium revenue recognized at inception of a contract is measured at the present value of the premium due. For most financial guarantee insurance contracts, the Company received the entire premium due at the inception of the contract, and recognized an unearned premium revenue liability at that time. For certain other financial guarantee contracts, the Company receives premiums in installments over the term of the contract. Unearned premium revenue and a receivable for future premiums were recognized at the inception of each installment contract, and measured at the present value of premiums expected to be collected over the contract period or expected period using a risk-free discount rate. The expected period is used in the present value determination of unearned premium revenue and receivable for future premiums for contracts where (a) the insured obligation is contractually prepayable, (b) prepayments are probable, (c) the amount and timing of prepayments are reasonably estimable, and (d) a homogenous pool of assets is the underlying collateral for the insured obligation. Premiums receivable for policies that use the expected period of risk due to expected prepayments are adjusted in subsequent measurement periods when prepayment assumptions change using the risk-free discount rate as of the remeasurement date. The Company has determined that substantially all of its installment contracts meet the conditions required to be treated as expected period contracts. Premiums receivable also includes the current amount of premiums due from installment policies insuring consolidated VIEs when the premiums are payable by third-parties on behalf of the consolidated VIEs. The receivable for future premiums is reduced as installment premiums are collected. The Company reports the accretion of the discount on installment premiums receivable as premium revenue and discloses the amount recognized in “Note 5: Insurance Premiums.” As premium revenue is recognized, the unearned premium revenue liability is reduced.

Credit Losses on Premium Receivables

The Company evaluates the collectability of outstanding premium receivables on a quarterly basis and measures any allowance for credit losses as the difference between the recorded premium receivable amount and the current projected net present value of premiums expected to be collected, discounted at risk-free rates described in the preceding paragraph. Estimating the allowance for credit losses involves substantial judgment, including forecasting an insured transaction’s cash flows, such as the future performance of the transaction’s underlying assets and the impact of certain macro-economic factors, as well as incorporating any historical experience of uncollectible balances and a transaction’s liability structure, including the seniority of premium payments to the Company.

Premium Revenue Recognition

The Company recognizes and measures premium revenue over the period of the contract in proportion to the amount of insurance protection provided. Premium revenue is measured by applying a constant rate to the insured principal amount outstanding in a given period to recognize a proportionate share of the premium received or expected to be received on a financial guarantee insurance contract. A constant rate for each respective financial guarantee insurance contract is calculated as the ratio of (a) the present value of premium received or expected to be received over the period of the contract to (b) the sum of all insured principal amounts outstanding during each period over the term of the contract.

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 2: Significant Accounting Policies (continued)

An issuer of an insured financial obligation may retire the obligation prior to its scheduled maturity through refinancing or legal defeasance in satisfaction of the obligation according to its indenture, which results in the Company’s obligation being extinguished under the financial guarantee contract. The Company recognizes any remaining unearned premium revenue on the insured obligation as refunding premiums earned in the period the contract is extinguished to the extent the unearned premium revenue has been collected.

Fee and Reimbursement Revenue Recognition

Fee and Reimbursement Revenue Recognition

The Company collects insurance related fees for services performed in connection with certain transactions. Fees are earned when the related services are completed. Types of fees include waiver and consent and termination fees.

Stock-Based Compensation

Stock-Based Compensation

The Company recognizes in earnings, generally over the vesting or service period of an award, the cost of all stock-based payment transactions using the fair value of the stock-based compensation provided. Refer to “Note 14: Benefit Plans” for a further discussion regarding the methodology utilized in recognizing employee stock compensation expense.

Foreign Currency Translation

Foreign Currency Translation

Financial statement assets and liabilities denominated in foreign currencies are reported in U.S. dollars generally using rates of exchange prevailing as of the balance sheet date. Translation adjustments resulting from the translation of the financial statements of the Company’s non-U.S. operations from its functional currency into U.S. dollars are included in AOCI in shareholders’ equity. Operating results of the Company’s non-U.S. operations are translated at average rates of exchange prevailing during the year. Foreign currency remeasurement gains and losses resulting from transactions in non-functional currencies are recorded in earnings. The Company derecognizes the cumulative translation adjustment reported in AOCI and includes the amount as part of the gain or loss on the sale or liquidation of its investment in a foreign entity in the period in which the sale or liquidation occurs.

Income Taxes

Income Taxes

Deferred income taxes are recorded with respect to temporary differences between the tax bases of assets and liabilities and the reported amounts in the Company’s financial statements that will result in deductible or taxable amounts in future years when the reported amounts of assets and liabilities are recovered or settled. Such temporary differences relate principally to net operating losses (“NOLs”), accrued surplus note interest, foreign tax credits, and capital loss carryforward, as well as timing differences in loss reserve deductions, premium revenue recognition and unrealized gains and losses. Valuation allowances are established to reduce deferred tax assets to the amount that more likely than not will be realized. As of December 31, 2025 and 2024, the Company had a full valuation allowance on its net deferred tax asset. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates in the period in which changes are approved by the relevant authority.

MBIA Inc. and its eligible U.S. subsidiaries file a consolidated federal income tax return. The U.S. income taxes are allocated based on the provisions of the Company’s tax sharing agreement, which governs the intercompany settlement of tax obligations and benefits. The method of allocation between the members is based on calculations as if each member filed its separate tax return. Under the Company’s tax sharing agreement, each member with an NOL will receive the benefits of its tax losses and credits as it is able to earn them out in the future.

Refer to “Note 10: Income Taxes” for additional information about the Company’s income taxes.

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

Income Taxes (Topic 740): Improvements to Income Tax Disclosure (ASU 2023-09)

In December of 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures” which requires disaggregated information about a reporting entity’s effective tax rate reconciliation, information on income taxes paid, and contain other disclosure requirements. This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. Upon the effective date, the amendments should be applied prospectively with retrospective application permitted. The Company adopted the amendments of ASU 2023-09 for its fiscal year ending December 31, 2025. The Company applied the amendments of ASU 2023-09 retrospectively and restated the applicable income tax disclosures for all prior periods. The adoption of ASU 2023-09 only impacted the income tax disclosures within the Company's consolidated financial statements and did not impact amounts reported on the Company's balance sheet, statement of operations, statement of comprehensive income or statement of cash flows.

The Company has not adopted any other new accounting pronouncements that had a material impact on its consolidated financial statements.

Recent Accounting Developments

Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03)

In November of 2024, the FASB issued ASU 2024-03, “Disaggregation of Income Statement Expenses" which requires to disclose the amounts of employee compensation, depreciation, intangible asset amortization, and certain other costs and expenses included in each relevant expense caption on the consolidated statements of operations and include certain amounts that are already required to be disclosed under current GAAP in the same disclosure. Additionally, ASU 2024-03 requires the disclosure of a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and the disclosure of the total amount of selling expenses. This ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. Upon the effective date, the amendments can be applied either prospectively or retrospectively. The Company is currently evaluating the potential impact of adopting ASU 2024-03.

v3.25.4
Business Developments and Risks and Uncertainties (Tables)
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Schedule of Discontinued Operations Components of Assets and Liabilities Held for Sale

The following table summarizes the components of assets and liabilities held for sale:

 

 

  As of

In millions

 

December 31, 2025

 

December 31, 2024

Assets held for sale

 

 

 

 

 

 

 

 

Accounts receivable

 

$

2

 

 

$

1

 

Goodwill

 

 

11

 

 

 

11

 

Other assets

 

 

1

 

 

 

2

 

Loss on disposal group

 

 

(6

)

 

 

(3

)

Total assets held for sale

 

$

8

 

 

$

11

 

Liabilities held for sale

 

 

 

 

 

 

 

 

Accounts payable

 

$

1

 

 

$

1

 

Debt

 

 

-

 

 

 

1

 

Accrued expenses and other

 

 

5

 

 

 

5

 

Total liabilities held for sale

 

$

6

 

 

$

7

 

Schedule of Results of Operations from Discontinued Operation

The results of operations from discontinued operations for the years ended December 31, 2025, 2024 and 2023 consist of the following:

 

 

 

Years Ended December 31,

 

In millions

 

2025

 

 

2024

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

 

 

Revenues

$

12

 

 

$

59

 

 

$

116

 

 

Cost of sales

 

6

 

 

 

28

 

 

 

58

 

 

     Total revenues from discontinued operations

 

6

 

 

 

31

 

 

 

58

 

Expenses:

 

 

 

 

 

 

 

 

 

Operating

 

5

 

 

 

31

 

 

 

67

 

 

Interest

 

-

 

 

 

3

 

 

 

4

 

 

Increase (decrease) on loss on disposal group

 

3

 

 

 

-

 

 

 

(10

)

 

     Total expenses from discontinued operations

 

8

 

 

 

34

 

 

 

61

 

Income (loss) before income taxes from discontinued operations

 

 

(2

)

 

 

(3

)

 

 

(3

)

Provision (benefit) for income taxes from discontinued operations

 

 

-

 

 

 

-

 

 

 

-

 

Income (loss) from discontinued operations, net of income taxes

 

$

(2

)

 

$

(3

)

 

$

(3

)

v3.25.4
Variable Interest Entities (Tables)
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Summary of Nonconsolidated VIEs Assets and Liabilities

December 31, 2025

Carrying Value of Assets

Carrying Value of Liabilities

In millions

Maximum

Exposure

to Loss

 

Investments

 

Premiums

Receivable

 

Insurance Loss

Recoverable

 

Unearned

Premium

Revenue

 

Loss and Loss

Adjustment

Expense

Reserves

 

Insurance:

Global structured finance:

Mortgage-backed residential

$

729

$

29

$

4

$

22

$

3

$

234

Consumer asset-backed

58

-

-

-

-

1

Corporate asset-backed

212

-

1

-

1

-

 

Total global structured finance

 

 

999

 

 

 

29

 

 

 

5

 

 

 

22

 

 

 

4

 

 

 

235

 

Global public finance

 

 

189

 

 

 

-

 

 

 

3

 

 

 

-

 

 

 

2

 

 

 

-

 

Total insurance

 

$

1,188

 

 

$

29

 

 

$

8

 

 

$

22

 

 

$

6

 

 

$

235

 

 

 

 

 

December 31, 2024

 

 

 

 

Carrying Value of Assets

 

Carrying Value of Liabilities

In millions

 

Maximum

Exposure

to Loss

 

 

Investments

 

 

Premiums

Receivable

 

 

Insurance Loss

Recoverable

 

 

Unearned

Premium

Revenue

 

 

Loss and Loss

Adjustment

Expense

Reserves

 

Insurance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global structured finance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed residential

 

$

785

 

 

$

26

 

 

$

5

 

 

$

21

 

 

$

3

 

 

$

224

 

Consumer asset-backed

 

 

86

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3

 

Corporate asset-backed

 

 

358

 

 

 

-

 

 

 

2

 

 

 

-

 

 

 

2

 

 

 

-

 

Total global structured finance

 

 

1,229

 

 

 

26

 

 

 

7

 

 

 

21

 

 

 

5

 

 

 

227

 

Global public finance

 

 

196

 

 

 

-

 

 

 

3

 

 

 

-

 

 

 

3

 

 

 

-

 

Total insurance

 

$

1,425

 

 

$

26

 

 

$

10

 

 

$

21

 

 

$

8

 

 

$

227

 

v3.25.4
Insurance Premiums (Tables)
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Rollforward of Premiums Receivable

The following tables present a roll forward of the Company’s premiums receivable for the years ended December 31, 2025 and 2024:

In millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

Premiums

 

 

 

 

 

Premiums

 

 

Changes in

 

 

Accretion of

 

 

Premiums

 

Receivable as of

 

 

Premium

 

 

from New

 

 

Expected

 

 

Premiums

 

 

Receivable as of

 

December 31,

 

 

Payments

 

 

Business

 

 

Term of

 

 

Receivable

 

 

December 31,

 

2024

 

 

Received

 

 

Written

 

 

Policies

 

 

Discount (1)

 

 

2025

 

$

133

 

 

$

(15

)

 

$

-

 

 

$

-

 

 

$

3

 

 

$

121

 

 

(1) - Recorded within premiums earned on the Company's consolidated statements of operations.

 

 

In millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

Premiums

 

 

 

 

 

Premiums

 

 

Changes in

 

 

Accretion of

 

 

Premiums

 

Receivable as of

 

 

Premium

 

 

from New

 

 

Expected

 

 

Premiums

 

 

Receivable as of

 

December 31,

 

 

Payments

 

 

Business

 

 

Term of

 

 

Receivable

 

 

December 31,

 

2023

 

 

Received

 

 

Written

 

 

Policies

 

 

Discount (1)

 

 

2024

 

$

146

 

 

$

(17

)

 

$

-

 

 

$

-

 

 

$

4

 

 

$

133

 

 

(1) - Recorded within premiums earned on the Company's consolidated statements of operations.

Undiscounted Future Premiums By Period

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:

 

 

Expected

 

 

 

Collection of

 

In millions

 

Premiums

 

Three months ending:

 

 

 

March 31, 2026

 

$

1

 

June 30, 2026

 

 

4

 

September 30, 2026

 

 

3

 

December 31, 2026

 

 

5

 

 

 

 

 

Twelve months ending:

 

 

 

December 31, 2027

 

 

12

 

December 31, 2028

 

 

12

 

December 31, 2029

 

 

11

 

December 31, 2030

 

 

10

 

 

 

 

 

Five years ending:

 

 

 

December 31, 2035

 

 

42

 

December 31, 2040

 

 

29

 

December 31, 2045 and thereafter

 

 

25

 

Total

 

$

154

 

Unearned Premium Reserve And Future Premium Earnings

The following table presents the unearned premium revenue balance and future expected premium earnings as of and for the periods presented:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expected

 

 

 

Unearned

 

 

Expected Future

 

 

 

 

 

Future

 

 

 

Premium

 

 

Premium Earnings

 

 

 

 

 

Premium

 

In millions

 

Revenue

 

 

Upfront

 

 

Installments

 

 

Accretion

 

 

Earnings

 

December 31, 2025

 

$

172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ending:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2026

 

 

166

 

 

$

3

 

 

$

3

 

 

$

1

 

 

$

7

 

June 30, 2026

 

 

160

 

 

 

3

 

 

 

3

 

 

 

1

 

 

 

7

 

September 30, 2026

 

 

155

 

 

 

2

 

 

 

3

 

 

 

1

 

 

 

6

 

December 31, 2026

 

 

151

 

 

 

2

 

 

 

2

 

 

 

1

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve months ending:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2027

 

 

133

 

 

 

9

 

 

 

9

 

 

 

3

 

 

 

21

 

December 31, 2028

 

 

117

 

 

 

8

 

 

 

8

 

 

 

3

 

 

 

19

 

December 31, 2029

 

 

104

 

 

 

6

 

 

 

7

 

 

 

3

 

 

 

16

 

December 31, 2030

 

 

92

 

 

 

5

 

 

 

7

 

 

 

3

 

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Five years ending:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2035

 

 

46

 

 

 

18

 

 

 

28

 

 

 

10

 

 

 

56

 

December 31, 2040

 

 

21

 

 

 

7

 

 

 

18

 

 

 

5

 

 

 

30

 

December 31, 2045 and thereafter

 

 

-

 

 

 

6

 

 

 

15

 

 

 

2

 

 

 

23

 

Total

 

 

 

 

$

69

 

 

$

103

 

 

$

33

 

 

$

205

 

v3.25.4
Loss and Loss Adjustment Expense Reserves (Tables)
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Present Value Of The Probability-Weighted Future Claim Payments And Recoveries

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Note 6: Loss and Loss Adjustment Expense Reserves (continued)

Summary of Loss and LAE Reserves and Recoveries

The following table summarizes the Company’s loss and LAE reserves and recoveries before consolidated VIE eliminations, along with amounts that were eliminated as a result of consolidating VIEs:

 

 

 

 

As of December 31, 2025

 

 

As of December 31, 2024

 

In millions

Balance Sheet Line Item

 

 

Balance Sheet Line Item

 

 

 

 

Insurance loss recoverable

 

 

Loss and LAE reserves (1)

 

 

Insurance loss recoverable

 

 

Loss and LAE reserves (1)

 

U.S. Public Finance Insurance

$

22

 

 

$

219

 

 

$

165

 

 

$

299

 

International and Structured Finance Insurance:

 

 

 

 

 

 

 

 

 

 

 

 

Before VIE eliminations

 

21

 

 

 

229

 

 

 

23

 

 

 

238

 

 

VIE eliminations

 

-

 

 

 

6

 

 

 

(3

)

 

 

(11

)

 

 

Total international and structured finance insurance

 

21

 

 

 

235

 

 

 

20

 

 

 

227

 

 

Total

$

43

 

 

$

454

 

 

$

185

 

 

$

526

 

 

 

(1) - Amounts are net of estimated recoveries of expected future claims.

Schedule Of Loss And Loss Adjustment Expenses Reserves

In millions

 

 

Changes in Loss and LAE Reserves for the Year Ended December 31, 2025

 

 

 

 

Gross Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Loss

 

and LAE

 

 

 

 

 

Accretion

 

 

 

 

 

 

 

 

Changes in

 

 

and LAE

 

Reserves as of

 

 

Loss

 

 

of Claim

 

 

Changes in

 

 

 

 

 

Unearned

 

 

Reserves as of

 

December 31,

 

 

and LAE

 

 

Liability

 

 

Discount

 

 

Changes in

 

 

Premium

 

 

December 31,

 

2024

 

 

Payments

 

 

Discount

 

 

Rates

 

 

Assumptions (1)

 

 

Revenue

 

 

2025

 

$

526

 

 

$

(145

)

 

$

19

 

 

$

12

 

 

$

41

 

 

$

1

 

 

$

454

 

 

 

(1) - Includes changes in amount and timing of estimated payments and recoveries.

 

 

In millions

 

 

Changes in Loss and LAE Reserves for the Year Ended December 31, 2024

 

 

 

 

Gross Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Loss

 

and LAE

 

 

 

 

 

Accretion

 

 

 

 

 

 

 

 

Changes in

 

 

and LAE

 

Reserves as of

 

 

Loss

 

 

of Claim

 

 

Changes in

 

 

 

 

 

Unearned

 

 

Reserves as of

 

December 31,

 

 

and LAE

 

 

Liability

 

 

Discount

 

 

Changes in

 

 

Premium

 

 

December 31,

 

2023

 

 

Payments

 

 

Discount

 

 

Rates

 

 

Assumptions (1)

 

 

Revenue

 

 

2024

 

$

473

 

 

$

(157

)

 

$

19

 

 

$

(19

)

 

$

212

 

 

$

(2

)

 

$

526

 

 

(1) - Includes changes in amount and timing of estimated payments and recoveries.

Schedule Of Insurance Loss Recoverable

 

 

 

 

 

 

 

Changes in Insurance Loss Recoverable

 

 

 

 

 

 

 

 

 

for the Year Ended December 31, 2025

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

Recoverable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recoverable

 

 

 

 

 

as of

 

 

 

 

 

Accretion

 

 

Changes in

 

 

 

 

 

as of

 

 

 

 

 

December 31,

 

 

Collections

 

 

of

 

 

Discount

 

 

Changes in

 

 

December 31,

 

In millions

 

 

2024

 

 

for Cases

 

 

Recoveries

 

 

Rates

 

 

Assumptions

 

 

2025

 

Insurance loss recoverable

 

 

$

185

 

 

$

(235

)

 

$

6

 

 

$

2

 

 

$

85

 

 

$

43

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in Insurance Loss Recoverable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

for the Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

Recoverable

 

 

 

 

 

 

 

 

 

 

 

 

Recoverable

 

 

 

 

 

as of

 

 

 

 

 

Accretion

 

 

Changes in

 

 

 

 

 

 

as of

 

 

 

 

 

December 31,

 

 

Collections

 

 

of

 

 

Discount

 

 

Changes in

 

 

December 31,

 

In millions

 

 

2023

 

 

for Cases

 

 

Recoveries

 

 

Rates

 

 

Assumptions

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance loss recoverable

 

 

$

 

183

 

 

$

 

(16

)

 

$

 

7

 

 

$

 

-

 

 

$

 

11

 

 

$

 

185

 

Schedule of Financial Guarantees And Related Claim Liability

The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of December 31, 2025:

 

 

 

 

 

 

Surveillance Categories

 

 

 

 

 

 

Caution

 

 

Caution

 

 

Caution

 

 

 

 

 

 

 

 

 

 

 

 

List

 

 

List

 

 

List

 

 

Classified

 

 

 

 

$ in millions

 

Low

 

 

Medium

 

 

High

 

 

List

 

 

Total

 

Number of policies

 

 

20

 

 

 

-

 

 

 

-

 

 

 

87

 

 

 

107

 

Number of issues (1)

 

 

7

 

 

 

-

 

 

 

-

 

 

 

76

 

 

 

83

 

Remaining weighted average contract period (in years)

 

 

3.5

 

 

 

-

 

 

 

-

 

 

 

6.1

 

 

 

5.6

 

Gross insured contractual payments outstanding: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

$

356

 

 

$

-

 

 

$

-

 

 

$

1,329

 

 

$

1,685

 

 

 

Interest

 

 

1,054

 

 

 

-

 

 

 

-

 

 

 

478

 

 

 

1,532

 

 

 

 

Total

 

$

1,410

 

 

$

-

 

 

$

-

 

 

$

1,807

 

 

$

3,217

 

Gross Claim Liability (3)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

786

 

 

$

786

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Potential Recoveries (4)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

281

 

 

 

281

 

 

Discount, net (5)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

101

 

 

 

101

 

Net claim liability (recoverable)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

404

 

 

$

404

 

Unearned premium revenue

 

$

1

 

 

$

-

 

 

$

-

 

 

$

8

 

 

$

9

 

Reinsurance recoverable on paid and unpaid losses (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

14

 

 

(1) - An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt.

(2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.

(3) - The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position.

(4) - Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position.

(5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries.

(6) - Included in "Other assets" on the Company's consolidated balance sheets.

The following table provides information about the financial guarantees and related claim liability included in each of MBIA’s surveillance categories as of December 31, 2024:

 

 

 

 

 

 

Surveillance Categories

 

 

 

 

 

 

Caution

 

 

Caution

 

 

Caution

 

 

 

 

 

 

 

 

 

 

 

 

List

 

 

List

 

 

List

 

 

Classified

 

 

 

 

$ in millions

 

Low

 

 

Medium

 

 

High

 

 

List

 

 

Total

 

Number of policies

 

 

29

 

 

 

-

 

 

 

-

 

 

 

90

 

 

 

119

 

Number of issues (1)

 

 

10

 

 

 

-

 

 

 

-

 

 

 

76

 

 

 

86

 

 

Remaining weighted average contract period (in years)

 

 

5.7

 

 

 

-

 

 

 

-

 

 

 

6.4

 

 

 

6.2

 

Gross insured contractual payments outstanding: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

$

717

 

 

$

-

 

 

$

-

 

 

$

1,509

 

 

$

2,226

 

 

 

Interest

 

 

1,307

 

 

 

-

 

 

 

-

 

 

 

569

 

 

 

1,876

 

 

 

 

Total

 

$

2,024

 

 

$

-

 

 

$

-

 

 

$

2,078

 

 

$

4,102

 

Gross Claim Liability (3)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

906

 

 

$

906

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Potential Recoveries (4)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

467

 

 

 

467

 

 

Discount, net (5)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

107

 

 

 

107

 

Net claim liability (recoverable)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

332

 

 

$

332

 

Unearned premium revenue

 

$

4

 

 

$

-

 

 

$

-

 

 

$

9

 

 

$

13

 

Reinsurance recoverable on paid and unpaid losses (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

16

 

 

(1) - An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt.

(2) - Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.

(3) - The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position.

(4) - Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position.

(5) - Represents discount related to Gross Claim Liability and Gross Potential Recoveries.

(6) - Included in "Other assets" on the Company's consolidated balance sheets.

v3.25.4
Fair Value of Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following tables provide quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024:

 

 

 

 

Fair Value as of

 

 

 

 

 

 

Range

 

 

 

December 31,

 

 

 

 

 

 

(Weighted

In millions

 

2025

 

 

Valuation Techniques

 

Unobservable Input

 

Average)

Assets:

 

 

 

 

 

 

 

 

 

 

Equity Investments

 

$

33

 

 

Discounted cash flow

 

Discount rate (1)

 

 

 

 

 

 

 

 

 

 

EBITDA multiple (1)

 

 

 

 

 

 

 

 

Type certificate

 

Discount rate (1)

 

 

 

 

 

 

 

 

 

 

EBITDA royalty share (1)

 

 

 

Loans carried at fair value

 

 

17

 

 

Discounted cash flow

 

Discount rate (1)

 

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

Loans receivable at fair value

 

 

34

 

 

Market prices of similar liabilities adjusted for financial guarantees provided to VIE obligations

 

Impact of financial guarantee

 

3% to 3% (3%) (2)

 

(1) - Ranges for discount rate, EBITDA multiple and EBITDA royalty share are not meaningful.

(2) - Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. The percentage is negative when the guarantees are in a net receivable position and positive when they are in a net payable position.

 

 

 

Fair Value as of

 

 

 

 

 

 

Range

 

 

 

December 31,

 

 

 

 

 

 

(Weighted

In millions

 

2024

 

 

Valuation Techniques

 

Unobservable Input

 

Average)

Assets:

 

 

 

 

 

 

 

 

 

 

Equity Investments

 

$

52

 

 

Discounted cash flow

 

Discount rate (1)

 

 

 

 

 

 

 

 

 

 

EBITDA multiple (1)

 

 

 

 

 

 

 

 

Type certificate

 

Discount rate (1)

 

 

 

 

 

 

 

 

 

 

EBITDA royalty share (1)

 

 

 

Loans carried at fair value

 

 

15

 

 

Discounted cash flow

 

Discount rate (1)

 

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

Loans receivable at fair value

 

 

28

 

 

Market prices of similar liabilities adjusted for financial guarantees provided to VIE obligations

 

Impact of financial guarantee

 

27% to 27% (27%) (2)

 

(1) - Ranges for discount rate, EBITDA multiple and EBITDA royalty share are not meaningful.

(2) - Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. The percentage is negative when the guarantees are in a net receivable position and positive when they are in a net payable position.

Company's Assets And Liabilities Measured At Fair Value On Recurring Basis

The following tables present the fair value of the Company’s assets (including short-term investments) and liabilities measured and reported at fair value on a recurring basis as of December 31, 2025 and 2024:

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

 

 

 

 

 

 

 

 

 

 

Quoted Prices in

 

 

Significant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active Markets

 

 

Other

 

 

Significant

 

 

 

 

 

 

 

 

 

 

 

for Identical

 

 

Observable

 

 

Unobservable

 

 

Balance as of

 

 

 

 

 

 

 

 

Assets

 

 

Inputs

 

 

Inputs

 

 

December 31,

 

 

In millions

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

2025

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency

 

$

473

 

 

$

-

 

 

$

-

 

 

$

473

 

 

 

State and municipal bonds

 

 

-

 

 

 

100

 

 

 

-

 

 

100

 

 

 

Foreign governments

 

 

-

 

 

 

5

 

 

 

-

 

 

5

 

 

 

Corporate obligations

 

 

-

 

 

 

415

 

 

 

18

 

(1)

 

433

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

-

 

 

 

117

 

 

 

-

 

 

117

 

 

 

 

Residential mortgage-backed non-agency

 

 

-

 

 

 

21

 

 

 

-

 

 

21

 

 

 

 

Commercial mortgage-backed

 

 

-

 

 

 

18

 

 

 

-

 

 

18

 

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

-

 

 

 

49

 

 

 

-

 

 

49

 

 

 

 

Other asset-backed

 

 

-

 

 

 

252

 

 

 

-

 

 

252

 

 

 

 

 

Total fixed-maturity investments

 

 

473

 

 

 

977

 

 

 

18

 

 

 

1,468

 

 

Money market securities

 

 

109

 

 

 

-

 

 

 

-

 

 

 

109

 

 

Equity investments

 

 

47

 

 

 

7

 

 

 

33

 

 

 

97

 

(2)

Cash and cash equivalents

 

 

69

 

 

 

-

 

 

 

-

 

 

 

69

 

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

 

2

 

 

 

-

 

 

 

-

 

 

 

2

 

 

 

Loans receivable at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential loans receivable

 

 

-

 

 

 

-

 

 

 

34

 

 

 

34

 

 

Total assets

 

$

700

 

 

$

984

 

 

$

85

 

 

$

1,779

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Medium-term notes

 

$

-

 

 

$

-

 

 

$

46

 

$

46

 

 

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable interest entity notes

 

 

-

 

 

 

-

 

 

 

25

 

 

 

25

 

 

 

Currency derivatives

 

 

-

 

 

 

-

 

 

 

12

 

 

 

12

 

 

Total liabilities

 

$

-

 

 

$

-

 

 

$

83

 

 

$

83

 

 

 

(1) - Includes loans carried at fair value of $17 million.

(2) - Includes $10 million of an exchange-traded bond fund that seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield corporate bonds. The fund is measured at fair value by applying the net asset value per share practical expedient, and is not required to be classified in the fair value hierarchy.

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

 

 

 

 

 

 

 

 

Quoted Prices in

 

 

Significant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active Markets

 

 

Other

 

 

Significant

 

 

 

 

 

 

 

 

 

 

 

for Identical

 

 

Observable

 

 

Unobservable

 

 

Balance as of

 

 

 

 

 

 

 

 

Assets

 

 

Inputs

 

 

Inputs

 

 

December 31,

 

 

In millions

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

2024

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency

 

$

481

 

 

$

-

 

 

$

-

 

 

$

481

 

 

 

State and municipal bonds

 

 

-

 

 

 

102

 

 

 

-

 

 

102

 

 

 

Foreign governments

 

 

-

 

 

 

10

 

 

 

-

 

 

10

 

 

 

Corporate obligations

 

 

-

 

 

 

435

 

 

 

16

 

(1)

 

451

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

-

 

 

 

111

 

 

 

-

 

 

 

111

 

 

 

 

Residential mortgage-backed non-agency

 

 

-

 

 

 

41

 

 

 

-

 

 

41

 

 

 

 

Commercial mortgage-backed

 

 

-

 

 

 

7

 

 

 

-

 

 

7

 

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

-

 

 

 

101

 

 

 

-

 

 

101

 

 

 

 

Other asset-backed

 

 

-

 

 

 

52

 

 

 

-

 

 

52

 

 

 

 

 

Total fixed-maturity investments

 

 

481

 

 

 

859

 

 

 

16

 

 

 

1,356

 

 

Money market securities

 

 

181

 

 

 

-

 

 

 

-

 

 

 

181

 

 

Equity investments

 

 

48

 

 

 

7

 

 

 

52

 

 

 

117

 

(2)

Cash and cash equivalents

 

 

84

 

 

 

-

 

 

 

-

 

 

 

84

 

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

 

3

 

 

 

-

 

 

 

-

 

 

 

3

 

 

 

Loans receivable at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential loans receivable

 

 

-

 

 

 

-

 

 

 

28

 

 

 

28

 

 

Total assets

 

$

797

 

 

$

866

 

 

$

96

 

 

$

1,769

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Medium-term notes

 

$

-

 

 

$

-

 

 

$

35

 

$

35

 

 

Other liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insured credit derivatives

 

 

-

 

 

 

1

 

 

 

-

 

 

 

1

 

 

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable interest entity notes

 

 

-

 

 

 

-

 

 

 

31

 

 

 

31

 

 

 

Currency derivatives

 

 

-

 

 

 

-

 

 

 

6

 

 

6

 

 

Total liabilities

 

$

-

 

 

$

1

 

 

$

72

 

 

$

73

 

 

 

(1) - Includes loans carried at fair value of $15 million.

(2) - Includes $10 million of an exchange-traded bond fund that seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield corporate bonds. The fund is measured at fair value by applying the net asset value per share practical expedient, and is not required to be classified in the fair value hierarchy.

Fair Value Hierarchy Table Presents The Company's Assets And Liabilities Not Recorded At Fair Value On The Company's Consolidated Balance Sheet

 

 

 

Fair Value Measurements at Reporting Date Using

 

 

 

 

 

 

 

 

 

 

 

Quoted Prices in

 

 

Significant

 

 

Significant

 

 

Fair Value

 

 

Carry Value

 

 

 

 

 

Active Markets for

 

 

Other Observable

 

 

Unobservable

 

 

Balance as of

 

 

Balance as of

 

 

 

 

 

Identical Assets

 

 

Inputs

 

 

Inputs

 

 

December 31,

 

 

December 31,

 

 

In millions

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

2025

 

 

2025

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

 

$

-

 

 

$

-

 

 

$

1

 

 

$

1

 

 

$

1

 

 

Total assets

 

$

-

 

 

$

-

 

 

$

1

 

 

$

1

 

 

$

1

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

$

-

 

 

$

242

 

 

$

-

 

 

$

242

 

 

$

2,843

 

 

 

Medium-term notes

 

 

-

 

 

 

-

 

 

 

275

 

 

 

275

 

 

 

424

 

(1)

 

Investment agreements

 

 

-

 

 

 

-

 

 

 

187

 

 

 

187

 

 

 

174

 

 

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable interest entity loans payable

 

 

-

 

 

 

-

 

 

 

7

 

 

 

7

 

 

 

7

 

 

Total liabilities

 

$

-

 

 

$

242

 

 

$

469

 

 

$

711

 

 

$

3,448

 

 

Financial Guarantees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross liability (recoverable)

 

$

-

 

 

$

-

 

 

$

817

 

 

$

817

 

 

$

583

 

 

 

Ceded recoverable (liability)

 

 

-

 

 

 

-

 

 

 

19

 

 

 

19

 

 

 

16

 

 

(1) - The carry value includes complex interest calculations for an MTN feature that is accounted for as a separate derivative and reported together with the host contract. As of December 31, 2025, the Company had an embedded derivative liability of $1 million.

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

 

 

 

 

 

 

 

 

 

 

Quoted Prices in

 

 

Significant

 

 

Significant

 

 

Fair Value

 

 

Carry Value

 

 

 

 

 

Active Markets for

 

 

Other Observable

 

 

Unobservable

 

 

Balance as of

 

 

Balance as of

 

 

 

 

 

Identical Assets

 

 

Inputs

 

 

Inputs

 

 

December 31,

 

 

December 31,

 

 

In millions

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

2024

 

 

2024

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

 

$

-

 

 

$

-

 

 

$

1

 

 

$

1

 

 

$

1

 

 

Total assets

 

$

-

 

 

$

-

 

 

$

1

 

 

$

1

 

 

$

1

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

$

-

 

 

$

305

 

 

$

-

 

 

$

305

 

 

$

2,741

 

 

 

Medium-term notes

 

 

-

 

 

 

-

 

 

 

217

 

 

 

217

 

 

 

403

 

(1)

 

Investment agreements

 

 

-

 

 

 

-

 

 

 

217

 

 

 

217

 

 

 

204

 

 

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable interest entity loans payable

 

 

-

 

 

 

-

 

 

 

12

 

 

 

12

 

 

 

12

 

 

Total liabilities

 

$

-

 

 

$

305

 

 

$

446

 

 

$

751

 

 

$

3,360

 

 

Financial Guarantees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross liability (recoverable)

 

$

-

 

 

$

-

 

 

$

764

 

 

$

764

 

 

$

540

 

 

 

Ceded recoverable (liability)

 

 

-

 

 

 

-

 

 

 

19

 

 

 

19

 

 

 

18

 

 

(1) - The carry value includes complex interest calculations for an MTN feature that is accounted for as a separate derivative and reported together with the host contract. As of December 31, 2024, the Company had an embedded derivative liability of $2 million.

Changes In Level 3 Assets Measured At Fair Value On A Recurring Basis

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in

 

 

Change in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

 

Gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Losses) for

 

 

(Losses) for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the Period

 

 

the Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in

 

 

Included in

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings for

 

 

OCI for

 

 

 

 

 

 

Gains /

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

Assets

 

 

 

 

 

 

(Losses)

 

 

Gains /

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

still held

 

 

still held

 

 

 

Balance

 

 

Included

 

 

(Losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfers

 

 

Transfers

 

 

 

 

 

as of

 

 

as of

 

 

 

Beginning

 

 

in

 

 

Included

 

 

 

 

 

 

 

 

 

 

 

 

 

 

into

 

 

out of

 

 

Ending

 

 

December 31,

 

 

December 31,

 

In millions

 

of Year

 

 

Earnings

 

 

in OCI(1)

 

 

Purchases

 

 

Issuances

 

 

Settlements

 

 

Sales

 

 

Level 3

 

 

Level 3

 

 

Balance

 

 

2025

 

 

2025(1)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate obligations

 

$

16

 

 

$

(1

)

 

$

-

 

 

$

3

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

18

 

(3)

$

(1

)

 

$

-

 

Equity investments

 

 

52

 

 

 

(19

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

33

 

 

 

(19

)

 

 

-

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable -
   residential

 

 

28

 

 

 

10

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

34

 

 

 

7

 

 

 

-

 

Total assets

 

$

96

 

 

$

(10

)

 

$

-

 

 

$

3

 

 

$

-

 

 

$

(4

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

85

 

 

$

(13

)

 

$

-

 

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in

 

 

Change in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

 

Gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Losses) for

 

 

(Losses) for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the Period

 

 

the Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in

 

 

Included in

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings for

 

 

OCI for

 

 

 

 

 

 

Gains /

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

Assets

 

 

 

 

 

 

(Losses)

 

 

Gains /

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

still held

 

 

still held

 

 

 

Balance,

 

 

Included

 

 

(Losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfers

 

 

Transfers

 

 

 

 

 

as of

 

 

as of

 

 

 

Beginning

 

 

in

 

 

Included

 

 

 

 

 

 

 

 

 

 

 

 

 

 

into

 

 

out of

 

 

Ending

 

 

December 31,

 

 

December 31,

 

In millions

 

of Year

 

 

Earnings

 

 

in OCI(1)

 

 

Purchases

 

 

Issuances

 

 

Settlements

 

 

Sales

 

 

Level 3

 

 

Level 3

 

 

Balance

 

 

2024

 

 

2024(1)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate obligations

 

$

1

 

 

$

(2

)

 

$

-

 

 

$

17

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

16

 

(3)

$

-

 

 

$

-

 

Equity investments

 

 

108

 

 

 

(56

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

52

 

 

 

(56

)

 

 

-

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable -
  residential

 

 

35

 

 

 

(4

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

28

 

 

 

(6

)

 

 

-

 

Other

 

 

2

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total assets

 

$

146

 

 

$

(62

)

 

$

-

 

 

$

17

 

 

$

-

 

 

$

(3

)

 

$

(2

)

 

$

-

 

 

$

-

 

 

$

96

 

 

$

(62

)

 

$

-

 

Changes In Level 3 Liabilities Measured At Fair Value On A Recurring Basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in

 

 

Change in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Gains)

 

 

(Gains)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses for

 

 

Losses for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the Period

 

 

the Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in

 

 

Included in

 

 

 

 

 

 

Total

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings for

 

 

OCI for

 

 

 

 

 

 

(Gains) /

 

 

(Gains) /

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

 

 

 

 

Losses

 

 

Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

still held

 

 

still held

 

 

 

Balance,

 

 

Included

 

 

Included in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfers

 

 

Transfers

 

 

 

 

 

as of

 

 

as of

 

 

 

Beginning

 

 

in

 

 

Credit Risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

into

 

 

out of

 

 

Ending

 

 

December 31,

 

 

December 31,

 

In millions

 

of Year

 

 

Earnings

 

 

in OCI(2)

 

 

Purchases

 

 

Issuances

 

 

Settlements

 

 

Sales

 

 

Level 3

 

 

Level 3

 

 

Balance

 

 

2025

 

 

2025(2)

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medium-term notes

 

$

35

 

 

$

3

 

 

$

8

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

46

 

 

$

3

 

 

$

8

 

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VIE notes

 

 

31

 

 

 

4

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(10

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

25

 

 

 

1

 

 

 

-

 

Currency derivatives

 

 

6

 

 

 

6

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

12

 

 

 

6

 

 

 

-

 

Total liabilities

 

$

72

 

 

$

13

 

 

$

8

 

 

$

-

 

 

$

-

 

 

$

(10

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

83

 

 

$

10

 

 

$

8

 

 

(1) - Reported within the "Unrealized gains (losses) on available-for-sale securities" on the Company's consolidated statements of comprehensive income (loss).

(2) - Reported within the "Instrument-specific credit risk of liabilities measured at fair value" on the Company's consolidated statements of comprehensive income (loss).

(3) - Includes loans carried at fair value of $17 million.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in

 

 

Change in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Gains)

 

 

(Gains)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses for

 

 

Losses for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the Period

 

 

the Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in

 

 

Included in

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings for

 

 

OCI for

 

 

 

 

 

 

(Gains) /

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

Liabilities

 

 

 

 

 

 

Losses

 

 

(Gains) /

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

still held

 

 

still held

 

 

 

Balance,

 

 

Included

 

 

Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfers

 

 

Transfers

 

 

 

 

 

as of

 

 

as of

 

 

 

Beginning

 

 

in

 

 

Included

 

 

 

 

 

 

 

 

 

 

 

 

 

 

into

 

 

out of

 

 

Ending

 

 

December 31,

 

 

December 31,

 

In millions

 

of Year

 

 

Earnings

 

 

in OCI(2)

 

 

Purchases

 

 

Issuances

 

 

Settlements

 

 

Sales

 

 

Level 3

 

 

Level 3

 

 

Balance

 

 

2024

 

 

2024(2)

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medium-term notes

 

$

40

 

 

$

(4

)

 

$

(1

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

35

 

 

$

(4

)

 

$

(1

)

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VIE notes

 

 

78

 

 

 

40

 

 

 

(27

)

 

 

-

 

 

 

-

 

 

 

(40

)

 

 

(20

)

 

 

-

 

 

 

-

 

 

 

31

 

 

 

-

 

 

 

1

 

Currency derivatives

 

 

14

 

 

 

(8

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6

 

 

 

(8

)

 

 

-

 

Total liabilities

 

$

132

 

 

$

28

 

 

$

(28

)

 

$

-

 

 

$

-

 

 

$

(40

)

 

$

(20

)

 

$

-

 

 

$

-

 

 

$

72

 

 

$

(12

)

 

$

-

 

 

(1) - Reported within the "Unrealized gains (losses) on available-for-sale securities" on the Company's consolidated statements of comprehensive income (loss).

(2) - Reported within the "Instrument-specific credit risk of liabilities measured at fair value" on the Company's consolidated statements of comprehensive income (loss).

(3) - Includes loans carried at fair value of $15 million.

Gains And Losses (Realized And Unrealized) Included In Earnings Pertaining To Level 3 Assets And Liabilities

Gains and losses (realized and unrealized) included in earnings relating to Level 3 assets and liabilities for the years ended December 31, 2025, 2024 and 2023 are reported on the Company’s consolidated statements of operations as follows:

 

 

 

 

 

 

Change in Unrealized Gains (Losses)

 

 

 

 

 

 

 

 

 

 

 

 

for the Period Included in Earnings

 

 

 

Total Gains (Losses)

 

 

for Assets and Liabilities still

 

In millions

Included in Earnings

 

 

held as of December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

2025

 

 

2024

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains (losses) on financial instruments
  at fair value and foreign exchange

$

(23

)

 

$

(54

)

 

$

(12

)

 

$

(23

)

 

$

(52

)

 

$

(12

)

 

Revenues of consolidated VIEs (1)

 

-

 

 

 

(36

)

 

 

(62

)

 

 

-

 

 

 

2

 

 

 

(10

)

Total

$

(23

)

 

$

(90

)

 

$

(74

)

 

$

(23

)

 

$

(50

)

 

$

(22

)

 

(1) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" and "Other net realized gains (losses)-VIE" on the Company's consolidated statements of operations.

Effects Of Derivative Instruments On Consolidated Statements Of Operations The following table presents the effect of derivative instruments on the Company's consolidated statements of operations for the years ended December 31, 2025, 2024 and 2023:

 

In millions

 

 

 

 

 

 

 

 

 

 

 

Derivatives Not Designated

 

 

 

Years Ended December 31,

 

as Hedging Instruments

 

Location of Gain (Loss) Recognized in Income on Derivative

 

2025

 

 

2024

 

 

2023

 

Interest rate swaps

 

Net gains (losses) on financial instruments at fair value and foreign exchange

 

$

1

 

 

$

-

 

 

$

13

 

Currency swaps-VIE

 

Net gains (losses) on financial instruments at fair value and foreign exchange-VIE

 

 

(6

)

 

 

8

 

 

 

(7

)

Total

 

 

 

$

(5

)

 

$

8

 

 

$

6

 

Changes In Fair Value Included In The Company's Consolidated Statements Of Operations

The following table presents the gains and (losses) included in the Company's consolidated statements of operations for the years ended December 31, 2025, 2024 and 2023 for financial instruments for which the fair value option was elected:

 

 

 

 

Years Ended December 31,

 

In millions

 

2025

 

 

2024

 

 

2023

 

Investments carried at fair value (1)

 

$

(19

)

 

$

(55

)

 

$

1

 

Fixed-maturity securities held at fair value-VIE (2)

 

 

-

 

 

 

(1

)

 

 

(4

)

Loans receivable and other instruments at fair value:

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans (2)

 

 

10

 

 

 

(4

)

 

 

(33

)

Other assets-VIE (2)

 

 

-

 

 

 

-

 

 

 

4

 

Medium-term notes (1)

 

 

(3

)

 

 

4

 

 

 

(5

)

Variable interest entity notes (2)

 

 

(4

)

 

 

(40

)

 

 

(25

)

 

 

 

 

 

 

 

 

 

(1) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange" on the Company's consolidated statements of operations.

(2) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" and "Other net realized gains (losses)-VIE" on the Company's consolidated statements of operations.

Difference Between Aggregate Fair Value And The Aggregate Remaining Contractual Principal Balance Outstanding

The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of December 31, 2025 and 2024, for loans and notes for which the fair value option was elected:

 

 

 

 

 

As of December 31, 2025

 

 

As of December 31, 2024

 

 

 

 

 

Contractual

 

 

 

 

 

 

 

 

Contractual

 

 

 

 

 

 

 

 

 

 

 

Outstanding

 

 

Fair

 

 

 

 

 

Outstanding

 

 

Fair

 

 

 

 

 

In millions

 

Principal

 

 

Value

 

 

Difference

 

 

Principal

 

 

Value

 

 

Difference

 

 

Loans receivable at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans - current

 

$

12

 

 

$

12

 

 

$

-

 

 

$

12

 

 

$

12

 

 

$

-

 

 

 

Residential mortgage loans (90 days or more past due)

 

 

55

 

 

 

22

 

 

 

33

 

 

 

48

 

 

 

16

 

 

 

32

 

 

 

Corporate loans - current

 

 

19

 

 

 

17

 

 

 

2

 

 

 

16

 

 

 

15

 

 

 

1

 

 

Total loans receivable at fair value

 

$

86

 

 

$

51

 

 

$

35

 

 

$

76

 

 

$

43

 

 

$

33

 

 

Variable interest entity notes

 

$

39

 

 

$

25

 

 

$

14

 

 

$

45

 

 

$

31

 

 

$

14

 

 

Medium-term notes

 

$

59

 

 

$

46

 

 

$

13

 

 

$

52

 

 

$

35

 

 

$

17

 

 

v3.25.4
Investments (Tables)
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Amortized Cost And Fair Value Of Available-For-Sale And Held-To-Maturity Investment Portfolios

The following tables present the amortized cost, allowance for credit losses, corresponding gross unrealized gains and losses and fair value for AFS investments in the Company’s consolidated investment portfolio as of December 31, 2025 and 2024:

 

 

 

 

 

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

Allowance

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Amortized

 

 

for Credit

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

In millions

 

Cost

 

 

Losses

 

 

Gains

 

 

Losses

 

 

Value

 

AFS Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency

 

$

478

 

 

$

-

 

 

$

-

 

 

$

(10

)

 

$

468

 

 

State and municipal bonds

 

 

106

 

 

 

-

 

 

 

3

 

 

 

(8

)

 

 

101

 

 

Foreign governments

 

 

7

 

 

 

-

 

 

 

-

 

 

 

(2

)

 

 

5

 

 

Corporate obligations

 

 

462

 

 

 

-

 

 

 

1

 

 

 

(96

)

 

 

367

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

125

 

 

 

-

 

 

 

-

 

 

 

(11

)

 

 

114

 

 

 

Residential mortgage-backed non-agency

 

 

17

 

 

 

-

 

 

 

-

 

 

 

(1

)

 

 

16

 

 

 

Commercial mortgage-backed

 

 

10

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

30

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

31

 

 

 

Other asset-backed

 

 

229

 

 

 

-

 

 

 

2

 

 

 

(1

)

 

 

230

 

Total AFS investments

 

$

1,464

 

 

$

-

 

 

$

7

 

 

$

(129

)

 

$

1,342

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

Allowance

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Amortized

 

 

for Credit

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

In millions

 

Cost

 

 

Losses

 

 

Gains

 

 

Losses

 

 

Value

 

AFS Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency

 

$

500

 

 

$

-

 

 

$

-

 

 

$

(19

)

 

$

481

 

 

State and municipal bonds

 

 

110

 

 

 

-

 

 

 

2

 

 

 

(11

)

 

 

101

 

 

Foreign governments

 

 

12

 

 

 

-

 

 

 

-

 

 

 

(2

)

 

 

10

 

 

Corporate obligations

 

 

496

 

 

 

-

 

 

 

1

 

 

 

(106

)

 

 

391

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

127

 

 

 

-

 

 

 

-

 

 

 

(16

)

 

 

111

 

 

 

Residential mortgage-backed non-agency

 

 

36

 

 

 

-

 

 

 

1

 

 

 

(5

)

 

 

32

 

 

 

Commercial mortgage-backed

 

 

7

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

7

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

71

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

72

 

 

 

Other asset-backed

 

 

32

 

 

 

-

 

 

 

-

 

 

 

(1

)

 

 

31

 

Total AFS investments

 

$

1,391

 

 

$

-

 

 

$

5

 

 

$

(160

)

 

$

1,236

 

Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments

The following table presents the distribution by contractual maturity of AFS fixed-maturity securities at amortized cost, net of allowance for credit losses, and fair value as of December 31, 2025. Contractual maturity may differ from expected maturity as borrowers may have the right to call or prepay obligations.

 

 

 

 

 

 

 

AFS Securities

 

 

 

Net

 

 

 

 

 

 

Amortized

 

 

Fair

 

In millions

 

Cost

 

 

Value

 

Due in one year or less

 

$

395

 

 

$

395

 

Due after one year through five years

 

 

97

 

 

 

98

 

Due after five years through ten years

 

 

183

 

 

 

168

 

Due after ten years

 

 

378

 

 

 

280

 

Mortgage-backed and asset-backed

 

 

411

 

 

 

401

 

Total fixed-maturity investments

 

$

1,464

 

 

$

1,342

 

Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments

The following tables present the non-credit related gross unrealized losses related to AFS investments as of December 31, 2025 and 2024:

 

 

 

 

 

 

December 31, 2025

 

 

 

 

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

 

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

In millions

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

AFS Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency

 

$

2

 

 

$

-

 

 

$

122

 

 

$

(10

)

 

$

124

 

 

$

(10

)

 

State and municipal bonds

 

 

4

 

 

 

-

 

 

 

63

 

 

 

(8

)

 

 

67

 

 

 

(8

)

 

Foreign governments

 

 

-

 

 

 

-

 

 

 

5

 

 

 

(2

)

 

 

5

 

 

 

(2

)

 

Corporate obligations

 

 

9

 

 

 

(2

)

 

 

283

 

 

 

(94

)

 

 

292

 

 

 

(96

)

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

5

 

 

 

-

 

 

 

90

 

 

 

(11

)

 

 

95

 

 

 

(11

)

 

 

Residential mortgage-backed non-agency

 

5

 

 

 

-

 

 

 

5

 

 

 

(1

)

 

 

10

 

 

 

(1

)

 

 

Commercial mortgage-backed

 

 

-

 

 

 

-

 

 

 

3

 

 

 

-

 

 

 

3

 

 

 

-

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

8

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

8

 

 

 

-

 

 

 

Other asset-backed

 

 

20

 

 

 

-

 

 

 

22

 

 

 

(1

)

 

 

42

 

 

 

(1

)

Total AFS investments

 

$

53

 

 

$

(2

)

 

$

593

 

 

$

(127

)

 

$

646

 

 

$

(129

)

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

 

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

In millions

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

AFS Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency

 

$

41

 

 

$

(1

)

 

$

123

 

 

$

(18

)

 

$

164

 

 

$

(19

)

 

State and municipal bonds

 

 

15

 

 

 

(1

)

 

 

63

 

 

 

(10

)

 

 

78

 

 

 

(11

)

 

Foreign governments

 

 

5

 

 

 

-

 

 

 

5

 

 

 

(2

)

 

 

10

 

 

 

(2

)

 

Corporate obligations

 

 

25

 

 

 

(1

)

 

 

302

 

 

 

(105

)

 

 

327

 

 

 

(106

)

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

5

 

 

 

-

 

 

 

100

 

 

 

(16

)

 

 

105

 

 

 

(16

)

 

 

Residential mortgage-backed non-agency

 

6

 

 

 

(1

)

 

 

21

 

 

 

(4

)

 

 

27

 

 

 

(5

)

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

6

 

 

 

-

 

 

 

8

 

 

 

-

 

 

 

14

 

 

 

-

 

 

 

Other asset-backed

 

 

3

 

 

 

-

 

 

 

12

 

 

 

(1

)

 

 

15

 

 

 

(1

)

Total AFS investments

 

$

106

 

 

$

(4

)

 

$

634

 

 

$

(156

)

 

$

740

 

 

$

(160

)

Distribution Of Securities By Percentage Of Fair Value Below Book Value By More Than 5%

The following table presents the distribution of securities in an unrealized loss position for a continuous twelve-month period or longer where fair value was below book value by more than 5% as of December 31, 2025:

 

 

 

AFS Securities

 

Percentage of Fair Value

 

Number of

 

 

Book Value

 

 

Fair Value

 

 Below Book Value

 

Securities

 

 

(in millions)

 

 

(in millions)

 

> 5% to 15%

 

 

91

 

 

 

$

273

 

 

$

247

 

> 15% to 25%

 

 

49

 

 

 

 

81

 

 

 

65

 

> 25% to 50%

 

 

58

 

 

 

 

221

 

 

 

139

 

> 50%

 

 

2

 

 

 

 

-

 

 

 

-

 

Total

 

 

200

 

 

 

$

575

 

 

$

451

 

 

Securities Held In Unrealized Loss Position And Insured By Financial Guarantor and The Related Insurance Loss Reserve On Company Insured Investments

The following table provides information about securities held by the Company as of December 31, 2025 that were in an unrealized loss position and insured by a financial guarantor, along with the amount of insurance loss reserves corresponding to the par amount owned by the Company. The Company did not hold any securities in an unrealized loss position that were insured by a third-party financial guarantor as of December 31, 2025.

 

 

 

 

 

 

 

 

Unrealized

 

 

Insurance Loss

 

In millions

 

Fair Value

 

 

Loss

 

 

Reserve (1)

 

Asset-backed

 

$

17

 

 

$

(1

)

 

$

19

 

Corporate obligations

 

 

80

 

 

 

(47

)

 

 

-

 

Total

 

$

97

 

 

$

(48

)

 

$

19

 

 

(1) - Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured and are discounted using a discount rate equal to the risk-free rate applicable to the currency and weighted average remaining life of the insurance contract and may differ from the fair value.

Gross Realized Gains and Losses From Sales Of Available-For-Sale Securities

The proceeds and the gross realized gains and losses from sales of fixed-maturity securities held as AFS for the years ended December 31, 2025, 2024 and 2023 are as follows:

 

 

 

 

Years Ended December 31,

 

In millions

 

2025

 

 

2024

 

 

2023

 

Proceeds from sales

 

$

126

 

 

$

115

 

 

$

943

 

Gross realized gains

 

$

1

 

 

$

1

 

 

$

4

 

Gross realized losses

 

$

(7

)

 

$

(4

)

 

$

(79

)

Portion Of Unrealized Gains Losses Recognized On Equity Investments

 

 

Years Ended December 31,

 

In millions

2025

 

 

2024

 

 

2023

 

Net gains (losses) recognized during the period on equity and trading securities

$

(14

)

 

$

(50

)

 

$

(2

)

Less:

 

 

 

 

 

 

 

 

 

Net gains (losses) recognized during the period on equity and trading securities sold during the period

 

3

 

 

 

-

 

 

 

-

 

Unrealized gains (losses) recognized during the period on equity and trading securities still held at the reporting date

$

(17

)

 

$

(50

)

 

$

(2

)

v3.25.4
Debt (Tables)
12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Long-term debt

The Company’s long-term debt consists of notes and debentures including accrued interest as follows:

 

 

 

As of December 31,

 

In millions

 

2025

 

 

2024

 

7.000% Debentures due 2025

 

$

 

 

$

45

 

7.150% Debentures due 2027

 

 

95

 

 

 

95

 

6.625% Debentures due 2028

 

 

112

 

 

 

112

 

5.700% Senior Notes due 2034 (1)

 

 

21

 

 

 

21

 

Surplus Notes due 2033 (2)

 

 

940

 

 

 

940

 

Accrued interest

 

 

1,681

 

 

 

1,535

 

Debt issuance costs

 

 

(6

)

 

 

(7

)

Total

 

$

2,843

 

 

$

2,741

 

 

(1) - Callable anytime at the greater of par or the present value of the remaining scheduled payments of principal and interest.

(2) - Contractual interest rate is based on three-month SOFR plus 11.52161% at each future reset date.

Aggregate maturity of debt obligations

The aggregate maturities of principal payments of long-term debt obligations in each of the next five years ending December 31, and thereafter, are as follows:

 

In millions

 

2026

 

 

2027

 

 

2028

 

 

2029

 

 

2030

 

 

Thereafter

 

 

Total

 

Corporate debt

 

$

 

 

$

95

 

 

$

112

 

 

$

 

 

$

 

 

$

21

 

 

$

228

 

Surplus Notes due 2033

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

940

 

 

 

940

 

Total debt obligations due

 

$

 

 

$

95

 

 

$

112

 

 

$

 

 

$

 

 

$

961

 

 

$

1,168

 

Principal payments due under investment agreement obligations

 

 

Principal

 

In millions

 

Amount

 

Maturity date:

 

 

 

2026

 

$

59

 

2027

 

 

29

 

2028

 

 

29

 

2029

 

 

 

2030

 

 

 

Thereafter (through 2037)

 

 

63

 

Total expected principal payments (1)

 

$

180

 

Less discount (2)

 

 

6

 

Total

 

$

174

 

 

(1)- Amounts reflect principal due at maturity for investment agreements issued at a discount.

(2)- Discount is net of carrying amount adjustment of $2 million and accrued interest adjustment of $3 million.

Principal payments due under medium-term note obligations based on contractual maturity

 

 

Principal

 

In millions

 

Amount

 

Maturity date:

 

 

 

2026

 

$

 

2027

 

 

2

 

2028

 

 

30

 

2029

 

 

 

2030

 

 

 

Thereafter (through 2035)

 

 

578

 

Total expected principal payments (1)

 

$

610

 

Less discount (2)

 

 

138

 

Total

 

$

472

 

 

(1)- Amounts reflect principal due at maturity for notes issued at a discount.

(2)- Discount is net of carrying amount and market value adjustments of $9 million and accrued interest adjustment of $4 million.

Maturity of VIE notes, by segment

Expected principal payments due under MBIA-insured consolidated VIE notes in each of the next five years ending December 31, and thereafter, based upon expected contractual maturity dates, are as follows:

 

 

Insured

 

 

 

Principal

 

In millions

 

Amount

 

Maturity date:

 

 

 

2026

 

$

5

 

2027

 

 

7

 

2028

 

 

7

 

2029

 

 

4

 

2030

 

 

2

 

Thereafter (through 2035)

 

 

3

 

Total

 

$

28

 

v3.25.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income (loss) from continuing operations before provision (benefit) for income taxes

Income (loss) from continuing operations before income taxes consisted of:

 

 

Years Ended December 31,

 

In millions

 

2025

 

 

2024

 

 

2023

 

Domestic

 

$

(181

)

 

$

(441

)

 

$

(484

)

Foreign

 

 

-

 

 

 

-

 

 

 

-

 

Income (loss) from continuing operations before income taxes

 

$

(181

)

 

$

(441

)

 

$

(484

)

Income tax rate reconciliation from statutory to effective tax rate

 

 

 

Years Ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

$ In millions

 

Tax Effected

 

Rate

 

 

Tax Effected

 

Rate

 

 

Tax Effected

 

Rate

 

U.S. Federal statutory tax rate

 

$

(38

)

 

21.0

%

 

$

(93

)

 

21.0

%

 

$

(101

)

 

21.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in valuation allowance

 

 

33

 

 

(18.2

)%

 

 

88

 

 

(19.9

)%

 

 

95

 

 

(19.7

)%

Non-taxable or non-deductible items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive compensation

 

 

4

 

 

(2.2

)%

 

 

2

 

 

(0.5

)%

 

 

5

 

 

(1.1

)%

 

Share-based compensation

 

 

(2

)

 

1.1

%

 

 

-

 

 

0.0

%

 

 

-

 

 

0.0

%

 

GAAP-only gains/losses

 

 

2

 

 

(1.1

)%

 

 

2

 

 

(0.4

)%

 

 

-

 

 

0.0

%

 

Other

 

 

1

 

 

(0.6

)%

 

 

-

 

 

0.0

%

 

 

-

 

 

0.0

%

Other adjustments

 

 

-

 

 

0.0

%

 

 

1

 

 

(0.2

)%

 

 

1

 

 

(0.2

)%

Effective tax rate

 

$

-

 

 

0.0

%

 

$

-

 

 

0.0

%

 

$

-

 

 

0.0

%

Deferred tax assets and liabilities

 

 

 

 

As of

 

In millions

 

 

December 31, 2025

 

 

December 31, 2024

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Unearned premium revenue

 

 

$

28

 

 

$

30

 

 

Deferred acquisition costs

 

 

 

5

 

 

 

6

 

 

Net gains on financial instruments at fair value and foreign exchange

 

 

 

31

 

 

 

32

 

 

Net deferred taxes on VIEs

 

 

 

2

 

 

 

2

 

Total gross deferred tax liabilities

 

 

 

66

 

 

 

70

 

 

 

 

 

 

 

 

 

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

 

 

7

 

 

 

4

 

 

Accrued interest

 

 

 

357

 

 

 

326

 

 

Loss and loss adjustment expense reserves

 

 

 

33

 

 

 

40

 

 

Net operating loss

 

 

 

911

 

 

 

918

 

 

Foreign tax credits

 

 

 

55

 

 

 

55

 

 

Capital loss carryforward

 

 

 

53

 

 

 

51

 

 

Net unrealized gains and losses in accumulated other comprehensive income

 

 

 

21

 

 

 

27

 

 

Other

 

 

 

38

 

 

 

29

 

Total gross deferred tax assets

 

 

 

1,475

 

 

 

1,450

 

 

Valuation allowance

 

 

 

1,409

 

 

 

1,380

 

Net deferred tax asset

 

 

$

-

 

 

$

-

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 10: Income Taxes (continued)

v3.25.4
Business Segments (Tables)
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Summary of company's segment results

The following tables provide the Company’s segment results for the years ended December 31, 2025, 2024 and 2023:

 

 

 

 

 

Year Ended December 31, 2025

 

 

 

 

 

U.S.

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 

 

Public

 

 

 

 

 

and Structured

 

 

 

 

 

 

 

 

 

 

 

Finance

 

 

 

 

 

Finance

 

 

 

 

 

 

 

In millions

 

Insurance

 

 

Corporate

 

 

Insurance

 

 

Eliminations

 

 

Consolidated

 

Revenues (1)

 

$

56

 

 

$

24

 

 

$

19

 

 

$

-

 

 

$

99

 

Net gains (losses) on financial instruments at fair value and foreign exchange

 

 

1

 

 

 

(2

)

 

 

(28

)

 

 

-

 

 

 

(29

)

Revenues of consolidated VIEs

 

 

-

 

 

 

-

 

 

 

10

 

 

 

-

 

 

 

10

 

Inter-segment revenues (2)

 

 

26

 

 

 

47

 

 

 

6

 

 

 

(79

)

 

 

-

 

 

 

Total revenues (3)

 

 

83

 

 

 

69

 

 

 

7

 

 

 

(79

)

 

 

80

 

Losses and loss adjustment

 

 

(33

)

 

 

-

 

 

 

13

 

 

 

-

 

 

 

(20

)

Compensation and benefits

 

 

-

 

 

 

44

 

 

 

-

 

 

 

-

 

 

 

44

 

Interest

 

 

-

 

 

 

69

 

 

 

150

 

 

 

(23

)

 

 

196

 

Inter-segment service charge

 

 

31

 

 

 

-

 

 

 

14

 

 

 

(45

)

 

 

-

 

Other segment items (4)

 

 

12

 

 

 

16

 

 

 

24

 

 

 

(11

)

 

 

41

 

 

 

Total expenses

 

 

10

 

 

 

129

 

 

 

201

 

 

 

(79

)

 

 

261

 

Income (loss) from continuing operations before income taxes

 

$

73

 

 

$

(60

)

 

$

(194

)

 

$

-

 

 

$

(181

)

Total assets per reportable segment

 

$

1,475

 

 

$

653

 

 

$

668

 

 

$

(791

)

 (5)

$

2,005

 

Assets held for sale

 

 

 

 

 

 

 

 

8

 

Total assets

 

 

 

 

 

 

 

$

2,013

 

 

(1) - Consists primarily 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.

(3) - Includes net investment income of $60 million, $26 million, $11 million, and ($24) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.

(4) - Other segment items for each reportable segment include:

a. U.S. Public Finance Insurance - amortization of DAC, professional service fees, occupancy costs and other operating expenses;

b. Corporate - professional service fees, occupancy costs and other operating expenses;

c. International and Structured Finance Insurance - expenses of consolidated VIEs, amortization of DAC, professional service fees and other operating expenses, and

d. Elimination - inter-segment amortization of DAC and inter-segment occupancy costs.

(5) - Consists principally of intercompany reinsurance balances.

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

 

Note 11: Business Segments (continued)

 

 

 

 

 

Year Ended December 31, 2024

 

In millions

 

U.S. Public Finance Insurance

 

 

Corporate

 

 

International and Structured Finance Insurance

 

 

Eliminations

 

 

Consolidated

 

Revenues (1)

 

$

72

 

 

$

28

 

 

$

21

 

 

$

-

 

 

$

121

 

Net gains (losses) on financial instruments at fair value and foreign exchange

 

 

1

 

 

 

14

 

 

 

(57

)

 

 

-

 

 

 

(42

)

Revenues of consolidated VIEs

 

 

-

 

 

 

-

 

 

 

(37

)

 

 

-

 

 

 

(37

)

Inter-segment revenues (2)

 

 

26

 

 

 

54

 

 

 

6

 

 

 

(86

)

 

 

-

 

 

 

Total revenues (3)

 

 

99

 

 

 

96

 

 

 

(67

)

 

 

(86

)

 

 

42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment

 

 

191

 

 

 

-

 

 

 

(7

)

 

 

-

 

 

 

184

 

Compensation and benefits

 

 

-

 

 

 

44

 

 

 

-

 

 

 

-

 

 

 

44

 

Interest

 

 

-

 

 

 

72

 

 

 

159

 

 

 

(23

)

 

 

208

 

Inter-segment service charge

 

 

32

 

 

 

-

 

 

 

18

 

 

 

(50

)

 

 

-

 

Other segment items (4)

 

 

14

 

 

 

17

 

 

 

29

 

 

 

(13

)

 

 

47

 

 

 

Total expenses

 

 

237

 

 

 

133

 

 

 

199

 

 

 

(86

)

 

 

483

 

Income (loss) from continuing operations before income taxes

 

$

(138

)

 

$

(37

)

 

$

(266

)

 

$

-

 

 

$

(441

)

Total assets per reportable segment

 

$

1,549

 

 

$

707

 

 

$

834

 

 

$

(933

)

(5)

$

2,157

 

Assets held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,168

 

 

(1) - Consists primarily 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.

(3) - Includes net investment income of $67 million, $30 million, $11 million, and ($24) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.

(4) - Other segment items for each reportable segment include:

a. U.S. Public Finance Insurance - amortization of DAC, professional service fees, occupancy costs and other operating expenses;

b. Corporate - professional service fees, occupancy costs and other operating expenses;

c. International and Structured Finance Insurance - expenses of consolidated VIEs, amortization of DAC, professional service fees and other operating expenses, and

d. Elimination - inter-segment amortization of DAC and inter-segment occupancy costs.

(5) - Consists principally of intercompany reinsurance balances.

 

 

 

 

Year Ended December 31, 2023

 

In millions

 

U.S. Public Finance Insurance

 

 

Corporate

 

 

International and Structured Finance Insurance

 

 

Eliminations

 

 

Consolidated

 

Revenues (1)

 

$

51

 

 

$

(11

)

 

$

33

 

 

$

-

 

 

$

73

 

Net gains (losses) on financial instruments at fair value and foreign exchange

 

 

8

 

 

 

8

 

 

 

(12

)

 

 

-

 

 

 

4

 

Revenues of consolidated VIEs

 

 

-

 

 

 

-

 

 

 

(70

)

 

 

-

 

 

 

(70

)

Inter-segment revenues (2)

 

 

27

 

 

 

54

 

 

 

6

 

 

 

(87

)

 

 

-

 

 

 

Total revenues (3)

 

 

86

 

 

 

51

 

 

 

(43

)

 

 

(87

)

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment

 

 

170

 

 

 

-

 

 

 

7

 

 

 

-

 

 

 

177

 

Compensation and benefits

 

 

-

 

 

 

61

 

 

 

-

 

 

 

-

 

 

 

61

 

Interest

 

 

-

 

 

 

76

 

 

 

158

 

 

 

(24

)

 

 

210

 

Inter-segment service charge

 

 

33

 

 

 

-

 

 

 

17

 

 

 

(50

)

 

 

-

 

Other segment items (4)

 

 

14

 

 

 

16

 

 

 

25

 

 

 

(12

)

 

 

43

 

 

 

Total expenses

 

 

217

 

 

 

153

 

 

 

207

 

 

 

(86

)

 

 

491

 

Income (loss) from continuing operations before income taxes

 

$

(131

)

 

$

(102

)

 

$

(250

)

 

$

(1

)

 

$

(484

)

Total assets per reportable segment

 

$

1,742

 

 

$

755

 

 

$

974

 

 

$

(938

)

 (5)

$

2,533

 

Assets held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

73

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,606

 

 

(1) - Consists primarily 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.

(3) - Includes net investment income of $93 million, $25 million, $23 million, and ($25) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.

(4) - Other segment items for each reportable segment include:

a. U.S. Public Finance Insurance - amortization of DAC, professional service fees, occupancy costs and other operating expenses;

b. Corporate - professional service fees, occupancy costs and other operating expenses;

c. International and Structured Finance Insurance - expenses of consolidated VIEs, amortization of DAC, professional service fees and other operating expenses, and

d. Elimination - inter-segment amortization of DAC and inter-segment occupancy costs.

(5) - Consists principally of intercompany reinsurance balances.

Summary Of premiums earned on financial guarantees and insured derivatives by geographic location of risk The following table summarizes net premiums earned by geographic location for the years ended December 31, 2025, 2024 and 2023:

 

 

 

 

Years Ended December 31,

 

In millions

 

2025

 

 

2024

 

 

2023

 

Net premiums earned:

 

 

 

 

 

 

 

 

 

 

United States

 

$

24

 

 

$

29

 

 

$

29

 

 

Other

 

 

6

 

 

 

7

 

 

 

8

 

Total

 

$

30

 

 

$

36

 

 

$

37

 

v3.25.4
Insurance in Force (Tables)
12 Months Ended
Dec. 31, 2025
Insurance [Abstract]  
Insurance in force by geographic location

As of December 31, 2025, the Company's insurance in force had an expected maturity through 2058. The distribution of MBIA Corp.’s and National’s combined insurance in force by geographic location, excluding financial obligations guaranteed by MBIA Corp. on behalf of affiliated companies, is presented in the following table:

 

 

 

 

As of December 31,

 

$ in billions

 

2025

 

 

2024

 

 

 

 

 

 

 

% of

 

 

 

 

 

% of

 

 

 

 

Insurance

 

 

Insurance

 

 

Insurance

 

 

Insurance

 

Geographic Location

 

in Force

 

 

in Force

 

 

in Force

 

 

in Force

 

California

 

$

10.8

 

 

 

22.2

%

 

$

12.1

 

 

 

22.3

%

Illinois

 

 

5.5

 

 

 

11.4

%

 

 

6.0

 

 

 

11.0

%

New Jersey

 

 

3.5

 

 

 

7.2

%

 

 

3.8

 

 

 

7.0

%

Hawaii

 

 

3.4

 

 

 

7.0

%

 

 

3.5

 

 

 

6.5

%

Virginia

 

 

3.0

 

 

 

6.3

%

 

 

3.2

 

 

 

6.0

%

Texas

 

 

1.8

 

 

 

3.8

%

 

 

2.0

 

 

 

3.7

%

Colorado

 

 

1.4

 

 

 

2.8

%

 

 

1.6

 

 

 

2.9

%

Oregon

 

 

1.1

 

 

 

2.2

%

 

 

1.4

 

 

 

2.5

%

New York

 

 

1.0

 

 

 

2.1

%

 

 

1.1

 

 

 

2.1

%

Georgia

 

 

1.0

 

 

 

2.0

%

 

 

1.2

 

 

 

2.2

%

 

Subtotal

 

 

32.5

 

 

 

67.0

%

 

 

35.9

 

 

 

66.2

%

Nationally Diversified

 

 

5.8

 

 

 

12.1

%

 

 

6.3

 

 

 

11.5

%

Other states

 

 

8.3

 

 

 

17.2

%

 

 

10.1

 

 

 

18.5

%

 

Total United States

 

 

46.6

 

 

 

96.3

%

 

 

52.3

 

 

 

96.2

%

Internationally Diversified

 

 

0.1

 

 

 

0.2

%

 

 

0.2

 

 

 

0.4

%

Country specific

 

 

1.7

 

 

 

3.5

%

 

 

1.8

 

 

 

3.4

%

 

Total non-United States

 

 

1.8

 

 

 

3.7

%

 

 

2.0

 

 

 

3.8

%

Total

 

$

48.4

 

 

 

100.0

%

 

$

54.3

 

 

 

100.0

%

 

Insurance in force by bond type

The insurance in force and insured gross par outstanding by type of bond, excluding financial obligations guaranteed by MBIA Corp. on behalf of affiliated companies, are presented in the following table:

 

 

 

 

 

 

As of December 31,

 

$ in billions

 

2025

 

 

2024

 

 

 

 

 

 

 

Insurance

 

 

Gross Par

 

 

Insurance

 

 

Gross Par

 

Bond type

 

in Force

 

 

Amount

 

 

in Force

 

 

Amount

 

Global public finance - United States:

 

 

 

 

 

 

 

 

 

 

 

 

 

General obligation (1)

 

$

12.5

 

 

$

6.0

 

 

$

14.6

 

 

$

7.0

 

 

Military housing

 

 

12.2

 

 

 

6.3

 

 

 

12.7

 

 

 

6.5

 

 

Tax-backed

 

 

8.4

 

 

 

3.2

 

 

 

9.8

 

 

 

4.2

 

 

Transportation

 

 

5.6

 

 

 

1.8

 

 

 

6.1

 

 

 

1.9

 

 

Municipal utilities

 

 

4.8

 

 

 

3.5

 

 

 

5.4

 

 

 

3.9

 

 

Higher education

 

 

0.7

 

 

 

0.5

 

 

 

0.8

 

 

 

0.6

 

 

General obligation - lease

 

 

0.7

 

 

 

0.5

 

 

 

0.8

 

 

 

0.5

 

 

Health care

 

 

0.4

 

 

 

0.2

 

 

 

0.6

 

 

 

0.4

 

 

Investor-owned utilities  (2)

 

 

0.3

 

 

 

0.3

 

 

 

0.4

 

 

 

0.3

 

 

 

 

Total United States

 

 

45.6

 

 

 

22.3

 

 

 

51.2

 

 

 

25.3

 

Global public finance - non-United States:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sovereign-related and sub-sovereign  (3)

 

 

1.1

 

 

 

0.8

 

 

 

1.1

 

 

 

0.9

 

 

Transportation

 

 

0.2

 

 

 

0.2

 

 

 

0.3

 

 

 

0.2

 

 

Other (4)

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

 

 

 

Total non-United States

 

 

1.4

 

 

 

1.1

 

 

 

1.5

 

 

 

1.2

 

 

 

 

 

Total global public finance

 

 

47.0

 

 

 

23.4

 

 

 

52.7

 

 

 

26.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global structured finance:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed residential

 

 

0.7

 

 

 

0.5

 

 

 

0.8

 

 

 

0.5

 

 

Mortgage-backed commercial

 

 

0.3

 

 

 

0.2

 

 

 

0.3

 

 

 

0.1

 

 

Corporate asset-backed

 

 

0.3

 

 

 

0.2

 

 

 

0.4

 

 

 

0.4

 

 

Consumer asset-backed

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

 

 

 

Total global structured finance

 

 

1.4

 

 

 

1.0

 

 

 

1.6

 

 

 

1.1

 

 

 

 

 

Total

 

$

48.4

 

 

$

24.4

 

 

$

54.3

 

 

$

27.6

 

 

(1) - Includes general obligation unlimited and limited (property) tax bonds, general fund obligation bonds and pension obligation bonds of states, cities, counties, schools and special districts.

(2) - Includes investor-owned utilities, industrial development and pollution control revenue bonds.

(3) - Includes regions, departments or their equivalent in each jurisdiction as well as sovereign owned entities that are supported by a sovereign state, region or department.

(4) - Includes municipal owned entities backed by sponsoring local government, tax backed and utility transactions.

Reinsurance agreements for insurance operations

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reinsurers

 

Standard & Poor's Rating (Status)

 

Moody's Rating (Status)

Ceded Par Outstanding

 

 

Trust Accounts/Amounts on Deposit

 

 

Reinsurance Recoverable/(Payable), Net(1)

 

Assured Guaranty Re Ltd.

 

AA

 

WR(2)

$

256

 

 

$

18

 

 

$

13

 

 

(Stable Outlook)

 

 

 

 

 

 

 

 

 

 

Assured Guaranty Inc.

 

AA

 

A1

 

243

 

 

 

-

 

 

 

-

 

 

 

(Stable Outlook)

 

(Stable Outlook)

 

 

 

 

 

 

 

 

Others

 

A or above

 

WR(2) or above

 

5

 

 

 

-

 

 

 

-

 

Total

 

 

 

 

$

504

 

 

$

18

 

 

$

13

 

 

(1) - Total reinsurance recoverable/(payable) is primarily related to recoverables on paid and unpaid losses net of paid and unpaid salvage due to reinsurers.

(2) - Represents a withdrawal of ratings.

v3.25.4
Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Restricted Shares Outstanding

A summary of the Company’s restricted shares outstanding as of December 31, 2025, 2024 and 2023, and changes during the years ended on those dates, is presented in the following table:

 

 

Restricted Share Activity

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

Number of Shares

 

 

Weighted Average Price Per Share

 

 

Number of Shares

 

 

Weighted Average Price Per Share

 

 

Number of Shares

 

 

Weighted Average Price Per Share

 

Outstanding at beginning of year

 

 

3,997,476

 

 

$

9.4675

 

 

 

4,838,270

 

 

$

9.9295

 

 

 

5,759,505

 

 

$

9.5583

 

Granted

 

 

817,072

 

 

 

5.0485

 

 

 

793,891

 

 

 

6.4543

 

 

 

519,238

 

 

 

11.6314

 

Vested

 

 

(2,784,391

)

 

 

9.6484

 

 

 

(1,418,225

)

 

 

8.6867

 

 

 

(1,440,473

)

 

 

9.0587

 

Forfeited

 

 

 

 

 

 

 

 

(216,460

)

 

 

13.8595

 

 

 

 

 

 

 

Outstanding at end of year

 

 

2,030,157

 

 

$

7.4409

 

 

 

3,997,476

 

 

$

9.4675

 

 

 

4,838,270

 

 

$

9.9295

 

v3.25.4
Earnings Per Share (Tables)
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Schedule Of Basic And Diluted Earnings Per Share

The following table presents the computation of basic and diluted earnings per share for the years ended December 31, 2025, 2024 and 2023:

 

 

 

 

Years Ended December 31,

 

In millions except per share amounts

2025

 

 

2024

 

 

2023

 

Basic and diluted earnings per share:

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations available to common shareholders

$

(181

)

 

$

(441

)

 

$

(484

)

Less: Net income (loss) from continuing operations attributable to noncontrolling interests

 

(6

)

 

 

-

 

 

 

-

 

Net income (loss) from continuing operations attributable to MBIA Inc.

 

(175

)

 

 

441

 

 

 

484

 

Income (loss) from discontinued operations, net of income taxes

 

(2

)

 

 

(3

)

 

 

(3

)

Less: Net income (loss) from discontinued operations attributable to noncontrolling interests

 

-

 

 

 

3

 

 

 

4

 

Net income (loss) from discontinued operations attributable to MBIA Inc.

 

(2

)

 

 

(6

)

 

 

(7

)

Net income (loss) attributable to MBIA Inc.

$

(177

)

 

$

435

 

 

$

477

 

Basic and diluted weighted average shares (1)

 

49.3

 

 

 

47.4

 

 

 

48.2

 

Net income (loss) per common share attributable to MBIA Inc. - basic and diluted:

 

 

 

 

 

 

 

 

Continuing operations

$

(3.53

)

 

$

(9.31

)

 

$

(10.03

)

Discontinued operations

 

(0.05

)

 

 

(0.12

)

 

 

(0.15

)

Net income (loss) per share attributable to MBIA Inc. - basic and diluted

$

(3.58

)

 

$

(9.43

)

 

$

(10.18

)

Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect

 

0.9

 

 

 

3.2

 

 

 

4.3

 

 

 

(1) - Includes approximately 1 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for each of the years ended December 31, 2025, 2024 and 2023 respectively.

v3.25.4
Accumulated Other Comprehensive Income (Tables)
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Changes In The Components Of AOCI

The following table presents the changes in the components of AOCI for the years ended December 31, 2025, 2024 and 2023:

 

In millions

 

Unrealized Gains (Losses) on AFS Securities, Net

 

 

Foreign Currency Translation, Net

 

 

Instrument-Specific Credit Risk of Liabilities Measured at Fair Value, Net

 

 

Total

 

 

Balance, January 1, 2023

 

$

(234

)

 

$

(4

)

 

$

(45

)

 

$

(283

)

 

 

Other comprehensive income (loss) before reclassifications

 

 

33

 

 

 

-

 

 

 

(1

)

 

 

32

 

 

 

Amounts reclassified from AOCI

 

 

67

 

 

 

-

 

 

 

45

 

 

 

112

 

 

Net period other comprehensive income (loss)

 

 

100

 

 

 

-

 

 

 

44

 

 

 

144

 

 

Balance, December 31, 2023

 

$

(134

)

 

$

(4

)

 

$

(1

)

 

$

(139

)

 

 

Other comprehensive income (loss) before reclassifications

 

 

(19

)

 

 

(1

)

 

 

-

 

 

 

(20

)

 

 

Amounts reclassified from AOCI

 

 

3

 

 

 

-

 

 

 

28

 

 

 

31

 

 

Net period other comprehensive income (loss)

 

 

(16

)

 

 

(1

)

 

 

28

 

 

 

11

 

 

Balance, December 31, 2024

 

$

(150

)

 

$

(5

)

 

$

27

 

 

$

(128

)

 

 

Other comprehensive income (loss) before reclassifications

 

 

29

 

 

 

-

 

 

 

(8

)

 

 

21

 

 

 

Amounts reclassified from AOCI

 

 

7

 

 

 

5

 

 

 

-

 

 

 

12

 

 

Net period other comprehensive income (loss)

 

 

36

 

 

 

5

 

 

 

(8

)

 

 

33

 

 

Balance, December 31, 2025

 

$

(114

)

 

$

-

 

 

$

19

 

 

$

(95

)

 

Reclassifications From AOCI

The following table presents the details of the reclassifications from AOCI for the years ended December 31, 2025, 2024 and 2023:

In millions

 

Amounts Reclassified from AOCI

 

 

 

 

 

 

Years Ended December 31,

 

 

 

Details about AOCI Components

 

2025

 

 

2024

 

 

2023

 

 

Affected Line Item on the Consolidated Statements of Operations

Unrealized gains (losses) on AFS securities:

 

 

 

 

 

 

 

 

 

 

 

 

Realized gains (losses) on sale of securities

 

$

(7

)

 

$

(3

)

 

$

(67

)

 

Net realized investment gains (losses)

Foreign currency translation:

 

 

 

 

 

 

 

 

 

 

 

 

Liquidation of MBIA Mexico

 

 

(5

)

 

 

-

 

 

 

-

 

 

Net gains (losses) on financial instruments at fair value and foreign exchange

Instrument-specific credit risk of liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Deconsolidation of VIEs

 

 

-

 

 

 

(9

)

 

 

(20

)

 

Other net realized gains (losses) - VIEs

 

Settlement of liabilities

 

 

-

 

 

 

(19

)

 

 

(25

)

 

Net gains (losses) on financial instruments at fair value and foreign exchange - VIEs

Total reclassifications for the period

 

$

(12

)

 

$

(31

)

 

$

(112

)

 

Net income (loss) attributable to MBIA Inc.

 

v3.25.4
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Operating Leases Of Lessee Disclosure

The following table provides information about the Company’s lease as of December 31, 2025:

 

$ in millions

 

As of

December 31, 2025

 

 

Balance Sheet

Location

 

Right-of-use asset

 

$

2

 

 

 

Other assets

 

Lease liability

 

$

2

 

 

 

Other liabilities

 

Weighted average remaining lease term (years)

 

 

3.3

 

 

 

 

 

Discount rate used for operating leases

 

 

9.5%

 

 

 

 

 

Total future minimum lease payments

 

$

2

 

 

 

 

 

v3.25.4
Business Developments And Risks And Uncertainties (Narrative) (Detail)
$ in Millions
1 Months Ended 12 Months Ended
Jan. 01, 2026
USD ($)
Aug. 31, 2025
USD ($)
Dec. 31, 2025
USD ($)
Segments
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Business Acquisition [Line Items]          
Number of operating segments | Segments     3    
Dividends paid     $ 0 $ 0 $ 409
Puerto Rico Electric Power Authority [Member]          
Business Acquisition [Line Items]          
Outstanding bonds     565    
Percentage of principal amount of current bond claims   47.00%      
Custodial receipts   $ 374      
National Public Finance Guarantee Corporation [Member] | Puerto Rico Electric Power Authority [Member]          
Business Acquisition [Line Items]          
Claims payments     105    
Subsequent Event | Puerto Rico Electric Power Authority [Member]          
Business Acquisition [Line Items]          
Claims payments $ 11        
National [Member]          
Business Acquisition [Line Items]          
Dividends from subsidiaries     63 $ 69  
MBIA Mexico [Member]          
Business Acquisition [Line Items]          
Capital returned by subsidiary     $ 13    
v3.25.4
Business Developments and Risks and Uncertainties (Schedule of Discontinued Operations Components of Assets and Liabilities Held for Sale) (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Assets held for sale    
Accounts receivable $ 2 $ 1
Goodwill 11 11
Other assets 1 2
Loss on disposal group (6) (3)
Total assets held for sale 8 11
Liabilities held for sale    
Accounts payable 1 1
Debt 0 1
Accrued expenses and other 5 5
Total liabilities held for sale $ 6 $ 7
v3.25.4
Business Developments and Risks and Uncertainties (Schedule of Results of Operations from Discontinued Operation) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues      
Revenues $ 12 $ 59 $ 116
Cost of sales 6 28 58
Total revenues from discontinued operations 6 31 58
Expenses:      
Operating 5 31 67
Interest 0 3 4
Increase (decrease) on loss on disposal group 3 0 (10)
Total expenses from discontinued operations 8 34 61
Income (loss) before income taxes from discontinued operations (2) (3) (3)
Provision (benefit) for income taxes from discontinued operations 0 0 0
Income (loss) from discontinued operations, net of income taxes $ (2) $ (3) $ (3)
v3.25.4
Variable Interest Entities (Narrative) (Detail) - Variable Interest Entity, Primary Beneficiary [Member]
$ in Millions
3 Months Ended
Dec. 31, 2025
VariableInterestEntities
Sep. 30, 2025
VariableInterestEntities
Jun. 30, 2025
VariableInterestEntities
Mar. 31, 2025
VariableInterestEntities
Dec. 31, 2024
VariableInterestEntities
Sep. 30, 2024
VariableInterestEntities
Jun. 30, 2024
USD ($)
VariableInterestEntities
Mar. 31, 2024
VariableInterestEntities
Recorded Due To Credit Losses in AOCI [Member]                
Variable Interest Entity [Line Items]                
Net realized gains (losses) related to deconsolidation | $             $ (9)  
Structured Finance and International Insurance [Member]                
Variable Interest Entity [Line Items]                
Number of variable interest entities deconsolidated 0 0 0 0 0 0 0 0
Number of variable interest entities consolidated 0   0 0        
Net realized gains (losses) related to deconsolidation | $             $ (14)  
Structured Finance and International Insurance [Member] | Insured RMBS Security [Member]                
Variable Interest Entity [Line Items]                
Number of variable interest entities consolidated   1            
v3.25.4
Variable Interest Entities (Summary of Nonconsolidated VIEs Assets and Liabilities) (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Variable Interest Entity [Line Items]      
Maximum Exposure to Loss $ 1,188 $ 1,425  
Carrying Value of VIE Assets 2,013 2,168 $ 2,606
Carrying Value of VIE Liabilities 4,243 4,244  
Unearned Premium Revenue [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 6 8  
Loss And Loss Adjustment Expense Reserves [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 235 227  
Investments [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 29 26  
Premiums Receivable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 8 10  
Insurance Loss Recoverable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 22 21  
Global Structured Finance [Member]      
Variable Interest Entity [Line Items]      
Maximum Exposure to Loss 999 1,229  
Global Structured Finance [Member] | Unearned Premium Revenue [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 4 5  
Global Structured Finance [Member] | Loss And Loss Adjustment Expense Reserves [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 235 227  
Global Structured Finance [Member] | Investments [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 29 26  
Global Structured Finance [Member] | Premiums Receivable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 5 7  
Global Structured Finance [Member] | Insurance Loss Recoverable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 22 21  
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member]      
Variable Interest Entity [Line Items]      
Maximum Exposure to Loss 729 785  
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Unearned Premium Revenue [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 3 3  
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Loss And Loss Adjustment Expense Reserves [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 234 224  
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Investments [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 29 26  
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Premiums Receivable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 4 5  
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Insurance Loss Recoverable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 22 21  
Global Structured Finance [Member] | Consumer Asset Backed [Member]      
Variable Interest Entity [Line Items]      
Maximum Exposure to Loss 58 86  
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Unearned Premium Revenue [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 0 0  
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Loss And Loss Adjustment Expense Reserves [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 1 3  
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Investments [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 0 0  
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Premiums Receivable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 0 0  
Global Structured Finance [Member] | Consumer Asset Backed [Member] | Insurance Loss Recoverable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 0 0  
Global Structured Finance [Member] | Corporate Asset Backed [Member]      
Variable Interest Entity [Line Items]      
Maximum Exposure to Loss 212 358  
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Unearned Premium Revenue [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 1 2  
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Loss And Loss Adjustment Expense Reserves [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 0 0  
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Investments [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 0 0  
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Premiums Receivable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 1 2  
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Insurance Loss Recoverable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 0 0  
Global Public Finance [Member]      
Variable Interest Entity [Line Items]      
Maximum Exposure to Loss 189 196  
Global Public Finance [Member] | Unearned Premium Revenue [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 2 3  
Global Public Finance [Member] | Loss And Loss Adjustment Expense Reserves [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 0 0  
Global Public Finance [Member] | Investments [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 0 0  
Global Public Finance [Member] | Premiums Receivable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 3 3  
Global Public Finance [Member] | Insurance Loss Recoverable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets $ 0 $ 0  
v3.25.4
Insurance Premiums (Narrative) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Insurance Premiums [Line Items]    
Weighted average risk-free rate 3.10% 3.00%
Weighted average expected collection term of the premiums receivable, years 8 years 3 months 29 days 8 years 6 months 25 days
Reinsurance premiums payable [1] $ 13  
Premiums [Member]    
Insurance Premiums [Line Items]    
Reinsurance premiums payable $ 3 $ 3
[1] Total reinsurance recoverable/(payable) is primarily related to recoverables on paid and unpaid losses net of paid and unpaid salvage due to reinsurers.
v3.25.4
Insurance Premiums (Roll Forward Of Premiums Receivable) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Insurance Premiums [Abstract]    
Premiums Receivable, Beginning balance $ 133 $ 146
Premium Payments Received (15) (17)
Premiums from New Business Written 0 0
Adjustments, Changes in Expected Term of Policies 0 0
Adjustments, Accretion of Premiums Receivable Discount 3 [1] 4 [2]
Premiums Receivable, Ending balance $ 121 $ 133
[1] Recorded within premiums earned on the Company's consolidated statements of operations.
[2] Recorded within premiums earned on the Company's consolidated statements of operations.
v3.25.4
Insurance Premiums (Undiscounted Future Amount Of Premiums Expected To Be Collected And Period Which Those Collections Are Expected To Occur) (Detail)
$ in Millions
Dec. 31, 2025
USD ($)
Insurance Premiums [Abstract]  
Three months ending, March 31, 2026, Expected Collection of Premiums $ 1
Three months ending, June 30, 2026, Expected Collection of Premiums 4
Three months ending, September 30, 2026, Expected Collection of Premiums 3
Three months ending, December 31, 2026, Expected Collection of Premiums 5
Twelve months ending, December 31, 2027, Expected Collection of Premiums 12
Twelve months ending, December 31, 2028, Expected Collection of Premiums 12
Twelve months ending, December 31, 2029, Expected Collection of Premiums 11
Twelve months ending, December 31, 2030, Expected Collection of Premiums 10
Five years ending, December 31, 2035, Expected Collection of Premiums 42
Five years ending, December 31, 2040, Expected Collection of Premiums 29
Five years ending, December 31, 2045 and thereafter, Expected Collection of Premiums 25
Total, Expected Collection of Premiums $ 154
v3.25.4
Insurance Premiums (Unearned Premium Revenue Balance And Future Expected Earnings) (Detail)
$ in Millions
Dec. 31, 2025
USD ($)
Insurance Premiums [Line Items]  
Total Expected Future Premium Earnings $ 205
Unearned Premium Revenue [Member]  
Insurance Premiums [Line Items]  
Unearned Premiums 172
Upfront [Member]  
Insurance Premiums [Line Items]  
Total Expected Future Premium Earnings 69
Installments [Member]  
Insurance Premiums [Line Items]  
Total Expected Future Premium Earnings 103
Accretion [Member]  
Insurance Premiums [Line Items]  
Total Expected Future Premium Earnings 33
March Thirty One Two Thousand Twenty Six [Member]  
Insurance Premiums [Line Items]  
Three months ending, March 31, 2026, Total Expected Future Premium Earnings 7
March Thirty One Two Thousand Twenty Six [Member] | Unearned Premium Revenue [Member]  
Insurance Premiums [Line Items]  
Three months ending, March 31, 2026, Total Expected Future Premium Earnings 166
March Thirty One Two Thousand Twenty Six [Member] | Upfront [Member]  
Insurance Premiums [Line Items]  
Three months ending, March 31, 2026, Total Expected Future Premium Earnings 3
March Thirty One Two Thousand Twenty Six [Member] | Installments [Member]  
Insurance Premiums [Line Items]  
Three months ending, March 31, 2026, Total Expected Future Premium Earnings 3
March Thirty One Two Thousand Twenty Six [Member] | Accretion [Member]  
Insurance Premiums [Line Items]  
Three months ending, March 31, 2026, Total Expected Future Premium Earnings 1
June Thirty Two Thousand Twenty Six [Member]  
Insurance Premiums [Line Items]  
Three months ending, June 30, 2026, Total Expected Future Premium Earnings 7
June Thirty Two Thousand Twenty Six [Member] | Unearned Premium Revenue [Member]  
Insurance Premiums [Line Items]  
Three months ending, June 30, 2026, Total Expected Future Premium Earnings 160
June Thirty Two Thousand Twenty Six [Member] | Upfront [Member]  
Insurance Premiums [Line Items]  
Three months ending, June 30, 2026, Total Expected Future Premium Earnings 3
June Thirty Two Thousand Twenty Six [Member] | Installments [Member]  
Insurance Premiums [Line Items]  
Three months ending, June 30, 2026, Total Expected Future Premium Earnings 3
June Thirty Two Thousand Twenty Six [Member] | Accretion [Member]  
Insurance Premiums [Line Items]  
Three months ending, June 30, 2026, Total Expected Future Premium Earnings 1
September Thirty Two Thousand Twenty Six [Member]  
Insurance Premiums [Line Items]  
Three months ending, September 30, 2026, Total Expected Future Premium Earnings 6
September Thirty Two Thousand Twenty Six [Member] | Unearned Premium Revenue [Member]  
Insurance Premiums [Line Items]  
Three months ending, September 30, 2026, Total Expected Future Premium Earnings 155
September Thirty Two Thousand Twenty Six [Member] | Upfront [Member]  
Insurance Premiums [Line Items]  
Three months ending, September 30, 2026, Total Expected Future Premium Earnings 2
September Thirty Two Thousand Twenty Six [Member] | Installments [Member]  
Insurance Premiums [Line Items]  
Three months ending, September 30, 2026, Total Expected Future Premium Earnings 3
September Thirty Two Thousand Twenty Six [Member] | Accretion [Member]  
Insurance Premiums [Line Items]  
Three months ending, September 30, 2026, Total Expected Future Premium Earnings 1
December Thirty One Two Thousand Twenty Six [Member]  
Insurance Premiums [Line Items]  
Three months ending, December 31, 2026, Total Expected Future Premium Earnings 5
December Thirty One Two Thousand Twenty Six [Member] | Unearned Premium Revenue [Member]  
Insurance Premiums [Line Items]  
Three months ending, December 31, 2026, Total Expected Future Premium Earnings 151
December Thirty One Two Thousand Twenty Six [Member] | Upfront [Member]  
Insurance Premiums [Line Items]  
Three months ending, December 31, 2026, Total Expected Future Premium Earnings 2
December Thirty One Two Thousand Twenty Six [Member] | Installments [Member]  
Insurance Premiums [Line Items]  
Three months ending, December 31, 2026, Total Expected Future Premium Earnings 2
December Thirty One Two Thousand Twenty Six [Member] | Accretion [Member]  
Insurance Premiums [Line Items]  
Three months ending, December 31, 2026, Total Expected Future Premium Earnings 1
December Thirty One Two Thousand Twenty Seven [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2027, Total Expected Future Premium Earnings 21
December Thirty One Two Thousand Twenty Seven [Member] | Unearned Premium Revenue [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2027, Total Expected Future Premium Earnings 133
December Thirty One Two Thousand Twenty Seven [Member] | Upfront [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2027, Total Expected Future Premium Earnings 9
December Thirty One Two Thousand Twenty Seven [Member] | Installments [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2027, Total Expected Future Premium Earnings 9
December Thirty One Two Thousand Twenty Seven [Member] | Accretion [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2027, Total Expected Future Premium Earnings 3
December Thirty One Two Thousand Twenty Eight [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2028, Total Expected Future Premium Earnings 19
December Thirty One Two Thousand Twenty Eight [Member] | Unearned Premium Revenue [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2028, Total Expected Future Premium Earnings 117
December Thirty One Two Thousand Twenty Eight [Member] | Upfront [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2028, Total Expected Future Premium Earnings 8
December Thirty One Two Thousand Twenty Eight [Member] | Installments [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2028, Total Expected Future Premium Earnings 8
December Thirty One Two Thousand Twenty Eight [Member] | Accretion [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2028, Total Expected Future Premium Earnings 3
December Thirty One Two Thousand Twenty Nine [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2029, Total Expected Future Premium Earnings 16
December Thirty One Two Thousand Twenty Nine [Member] | Unearned Premium Revenue [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2029, Total Expected Future Premium Earnings 104
December Thirty One Two Thousand Twenty Nine [Member] | Upfront [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2029, Total Expected Future Premium Earnings 6
December Thirty One Two Thousand Twenty Nine [Member] | Installments [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2029, Total Expected Future Premium Earnings 7
December Thirty One Two Thousand Twenty Nine [Member] | Accretion [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2029, Total Expected Future Premium Earnings 3
December Thirty One Two Thousand Thirty [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2030, Total Expected Future Premium Earnings 15
December Thirty One Two Thousand Thirty [Member] | Unearned Premium Revenue [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2030, Total Expected Future Premium Earnings 92
December Thirty One Two Thousand Thirty [Member] | Upfront [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2030, Total Expected Future Premium Earnings 5
December Thirty One Two Thousand Thirty [Member] | Installments [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2030, Total Expected Future Premium Earnings 7
December Thirty One Two Thousand Thirty [Member] | Accretion [Member]  
Insurance Premiums [Line Items]  
Twelve months ending, December 31, 2030, Total Expected Future Premium Earnings 3
December Thirty One Two Thousand Thirty Five [Member]  
Insurance Premiums [Line Items]  
Five years ending, December 31, 2035, Total Expected Future Premium Earnings 56
December Thirty One Two Thousand Thirty Five [Member] | Unearned Premium Revenue [Member]  
Insurance Premiums [Line Items]  
Five years ending, December 31, 2035, Total Expected Future Premium Earnings 46
December Thirty One Two Thousand Thirty Five [Member] | Upfront [Member]  
Insurance Premiums [Line Items]  
Five years ending, December 31, 2035, Total Expected Future Premium Earnings 18
December Thirty One Two Thousand Thirty Five [Member] | Installments [Member]  
Insurance Premiums [Line Items]  
Five years ending, December 31, 2035, Total Expected Future Premium Earnings 28
December Thirty One Two Thousand Thirty Five [Member] | Accretion [Member]  
Insurance Premiums [Line Items]  
Five years ending, December 31, 2035, Total Expected Future Premium Earnings 10
December Thirty One Two Thousand Forty [Member]  
Insurance Premiums [Line Items]  
Five years ending, December 31, 2040, Total Expected Future Premium Earnings 30
December Thirty One Two Thousand Forty [Member] | Unearned Premium Revenue [Member]  
Insurance Premiums [Line Items]  
Five years ending, December 31, 2040, Total Expected Future Premium Earnings 21
December Thirty One Two Thousand Forty [Member] | Upfront [Member]  
Insurance Premiums [Line Items]  
Five years ending, December 31, 2040, Total Expected Future Premium Earnings 7
December Thirty One Two Thousand Forty [Member] | Installments [Member]  
Insurance Premiums [Line Items]  
Five years ending, December 31, 2040, Total Expected Future Premium Earnings 18
December Thirty One Two Thousand Forty [Member] | Accretion [Member]  
Insurance Premiums [Line Items]  
Five years ending, December 31, 2040, Total Expected Future Premium Earnings 5
December Thirty One Two Thousand Forty Five And Thereafter [Member]  
Insurance Premiums [Line Items]  
Five years ending, December 31, 2045 and thereafter, Total Expected Future Premium Earnings 23
December Thirty One Two Thousand Forty Five And Thereafter [Member] | Unearned Premium Revenue [Member]  
Insurance Premiums [Line Items]  
Five years ending, December 31, 2045 and thereafter, Total Expected Future Premium Earnings 0
December Thirty One Two Thousand Forty Five And Thereafter [Member] | Upfront [Member]  
Insurance Premiums [Line Items]  
Five years ending, December 31, 2045 and thereafter, Total Expected Future Premium Earnings 6
December Thirty One Two Thousand Forty Five And Thereafter [Member] | Installments [Member]  
Insurance Premiums [Line Items]  
Five years ending, December 31, 2045 and thereafter, Total Expected Future Premium Earnings 15
December Thirty One Two Thousand Forty Five And Thereafter [Member] | Accretion [Member]  
Insurance Premiums [Line Items]  
Five years ending, December 31, 2045 and thereafter, Total Expected Future Premium Earnings $ 2
v3.25.4
Loss and Loss Adjustment Expense Reserves (Schedule of Losses and Loss Adjustment Expenses Reserves and Recoveries) (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Loss And Lae Reserves [Member]      
Loss And Loss Adjustment Expense Reserves [Line Items]      
Loss and loss adjustment expense reserves $ 454 [1] $ 526 [1] $ 473
Insurance Loss Recoverable [Member]      
Loss And Loss Adjustment Expense Reserves [Line Items]      
Insurance Loss Recoverable 43 185 $ 183
Non Variable Interest Entity [Member]      
Loss And Loss Adjustment Expense Reserves [Line Items]      
Insurance Loss Recoverable 43 185  
Loss and loss adjustment expense reserves 454 526  
US Public Finance Insurance [Member]      
Loss And Loss Adjustment Expense Reserves [Line Items]      
Insurance Loss Recoverable 22 165  
Loss and loss adjustment expense reserves [1] 219 299  
International And Structured Finance Insurance [Member]      
Loss And Loss Adjustment Expense Reserves [Line Items]      
Insurance Loss Recoverable 21 23  
Loss and loss adjustment expense reserves [1] 229 238  
International And Structured Finance Insurance [Member] | Non Variable Interest Entity [Member]      
Loss And Loss Adjustment Expense Reserves [Line Items]      
Insurance Loss Recoverable 21 20  
Loss and loss adjustment expense reserves [1] 235 227  
Consolidation Elimination [Member] | International And Structured Finance Insurance [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Loss And Loss Adjustment Expense Reserves [Line Items]      
Insurance Loss Recoverable (0) (3)  
Loss and loss adjustment expense reserves [1] $ 6 $ (11)  
[1] Amounts are net of estimated recoveries of expected future claims.
v3.25.4
Loss and Loss Adjustment Expense Reserves (Loss and LAE Activity) (Narrative) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Loss And Loss Adjustment Expense Reserves [Line Items]      
Weighted average risk-free rate used to discount claim liability 3.79% 4.50%  
Lae [Member]      
Loss And Loss Adjustment Expense Reserves [Line Items]      
Losses and loss adjustment $ 5 $ 17 $ 6
Loss and loss adjustment expense reserves $ 15 $ 19  
Changes in Loss and LAE Reserves one-year    
v3.25.4
Loss and Loss Adjustment Expense Reserves (Schedule of Loss and Loss Adjustment Expenses Reserves) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Loss And Loss Adjustment Expense Reserves [Line Items]      
Changes in unearned premium revenue $ 27 $ 33 $ 34
Loss And Lae Reserves [Member]      
Loss And Loss Adjustment Expense Reserves [Line Items]      
Gross loss and LAE reserve, beginning balance 526 [1] 473  
Loss payments for cases (145) (157)  
Accretion of claim liability discount 19 19  
Changes in discount rates 12 (19)  
Changes in assumptions 41 [2] 212 [3]  
Changes in unearned premium revenue 1 (2)  
Gross loss and LAE reserve, ending balance $ 454 [1] $ 526 [1] $ 473
[1] Amounts are net of estimated recoveries of expected future claims.
[2] Includes changes in amount and timing of estimated payments and recoveries.
[3] Includes changes in amount and timing of estimated payments and recoveries.
v3.25.4
Loss and Loss Adjustment Expense Reserves (Schedule of Insurance Loss Recoverable) (Detail) - Insurance Loss Recoverable [Member] - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Roll forward of Insurance Loss Recoverable [Line Items]    
Gross Reserve beginning balance, Insurance loss recoverable $ 185 $ 183
Collections for Cases (235) (16)
Accretion of Recoveries 6 7
Changes in Discount Rates 2 0
Changes in Assumptions 85 11
Gross Reserve ending balance, Insurance loss recoverable $ 43 $ 185
v3.25.4
Loss and Loss Adjustment Expense Reserves (Schedule Of Financial Guarantees And Related Claim Liability) (Detail)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
Issue
Policy
Dec. 31, 2024
USD ($)
Issue
Policy
Loss And Loss Adjustment Expense Reserves [Line Items]    
Number of policies | Policy 107 119
Number of issues | Issue [1] 83 86
Remaining weighted average contract period (in years) 5 years 7 months 6 days 6 years 2 months 12 days
Principal [2] $ 1,685 $ 2,226
Interest [2] 1,532 1,876
Total [2] 3,217 4,102
Gross claim liability [3] 786 906
Less: Gross potential recoveries [4] 281 467
Discount, net [5] 101 107
Net claim liability (recoverable) 404 332
Unearned premium revenue 9 13
Reinsurance recoverable on paid and unpaid losses [6] $ 14 $ 16
Caution List Low [Member]    
Loss And Loss Adjustment Expense Reserves [Line Items]    
Number of policies | Policy 20 29
Number of issues | Issue [1] 7 10
Remaining weighted average contract period (in years) 3 years 6 months 5 years 8 months 12 days
Principal [2] $ 356 $ 717
Interest [2] 1,054 1,307
Total [2] 1,410 2,024
Gross claim liability [3] 0 0
Less: Gross potential recoveries [4] 0 0
Discount, net [5] 0 0
Net claim liability (recoverable) 0 0
Unearned premium revenue $ 1 $ 4
Caution List Medium [Member]    
Loss And Loss Adjustment Expense Reserves [Line Items]    
Number of policies | Policy 0 0
Number of issues | Issue [1] 0 0
Principal [2] $ 0 $ 0
Interest [2] 0 0
Total [2] 0 0
Gross claim liability [3] 0 0
Less: Gross potential recoveries [4] 0 0
Discount, net [5] 0 0
Net claim liability (recoverable) 0 0
Unearned premium revenue $ 0 $ 0
Caution List High [Member]    
Loss And Loss Adjustment Expense Reserves [Line Items]    
Number of policies | Policy 0 0
Number of issues | Issue [1] 0 0
Principal [2] $ 0 $ 0
Interest [2] 0 0
Total [2] 0 0
Gross claim liability [3] 0 0
Less: Gross potential recoveries [4] 0 0
Discount, net [5] 0 0
Net claim liability (recoverable) 0 0
Unearned premium revenue $ 0 $ 0
Classified List [Member]    
Loss And Loss Adjustment Expense Reserves [Line Items]    
Number of policies | Policy 87 90
Number of issues | Issue [1] 76 76
Remaining weighted average contract period (in years) 6 years 1 month 6 days 6 years 4 months 24 days
Principal [2] $ 1,329 $ 1,509
Interest [2] 478 569
Total [2] 1,807 2,078
Gross claim liability [3] 786 906
Less: Gross potential recoveries [4] 281 467
Discount, net [5] 101 107
Net claim liability (recoverable) 404 332
Unearned premium revenue $ 8 $ 9
[1] An “issue” represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments on the insured debt.
[2] Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA.
[3] The gross claim liability with respect to Puerto Rico exposures are net of expected recoveries for policies in a net payable position.
[4] Gross potential recoveries with respect to certain Puerto Rico exposures are net of the claim liability for policies in a net recoverable position.
[5] Represents discount related to Gross Claim Liability and Gross Potential Recoveries.
[6] Included in "Other assets" on the Company's consolidated balance sheets.
v3.25.4
Fair Value of Financial Instruments (Narrative) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2025
Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Percentage of level 3 assets at fair value in total assets measured at fair value value 5.00%   5.00%  
Percentage of level 3 liabilities at fair value in total liabilities measured at fair value 99.00%   100.00%  
Gain (loss) on cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option $ (2,089)   $ (2,237)  
Cross Currency Swap [Member]        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Derivative notional amount 36   28  
Accumulated Other Comprehensive Income [Member]        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Gain (loss) on cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option (128) $ (139) (95) $ (283)
Instrument-specific credit risk of liabilities measured at fair value, net [Member]        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Gain (loss) on cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option 27 (1) 19 $ (45)
Gain (loss) on instrument-specific credit risk recognized in earnings 28 $ 45    
Instrument-specific credit risk of liabilities measured at fair value, net [Member] | Accumulated Other Comprehensive Income [Member]        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Gain (loss) on cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option $ 27   $ 19  
v3.25.4
Fair Value of Financial Instruments (Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Discounted Cash Flow [Member] | Loans Carried at Fair Value [Member] | Discount Rate [Member]    
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]    
Fair Value, assets $ 17 [1] $ 15 [2]
Discounted Cash Flow Type Certificate [Member] | Equity Investments [Member] | Discount Rate EBITDA Multiple EBITDA Royalty Share [Member]    
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]    
Fair Value, assets 33 [1] 52 [2]
Variable Interest Entity Primary Beneficiary [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices of Similar Liabilities Adjusted for Financial Guarantees Provided to VIE Obligations [Member]    
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]    
Fair Value, assets $ 34 $ 28
Variable Interest Entity Primary Beneficiary [Member] | Minimum [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices of Similar Liabilities Adjusted for Financial Guarantees Provided to VIE Obligations [Member]    
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]    
Range percentage 3.00% [3] 27.00% [4]
Variable Interest Entity Primary Beneficiary [Member] | Maximum [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices of Similar Liabilities Adjusted for Financial Guarantees Provided to VIE Obligations [Member]    
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]    
Range percentage 3.00% [3] 27.00% [4]
Variable Interest Entity Primary Beneficiary [Member] | Weighted Average [Member] | Loans Receivable and Other Instruments at Fair Value [Member] | Impact Of Financial Guarantee [Member] | Market Prices of Similar Liabilities Adjusted for Financial Guarantees Provided to VIE Obligations [Member]    
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]    
Range percentage 3.00% [3] 27.00% [4]
[1] Ranges for discount rate, EBITDA multiple and EBITDA royalty share are not meaningful.
[2] Ranges for discount rate, EBITDA multiple and EBITDA royalty share are not meaningful.
[3] Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. The percentage is negative when the guarantees are in a net receivable position and positive when they are in a net payable position.
[4] Weighted average represents the total MBIA guarantees as a percentage of total instrument fair value. The percentage is negative when the guarantees are in a net receivable position and positive when they are in a net payable position.
v3.25.4
Fair Value of Financial Instruments (Company's Assets And Liabilities Measured At Fair Value On Recurring Basis) (Detail) - Fair Value Measurements Recurring [Member] - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
[4]
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis $ 1,779 $ 1,769  
Fair value financial liabilities measured on recurring basis 83 73  
Money Market Securities [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 109 181  
Medium-term Notes [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial liabilities measured on recurring basis 46 35  
Equity investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 97 [1] 117 [2]  
Cash and Cash Equivalents [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 69 84  
Fixed Maturities [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 1,468 1,356  
Fixed Maturities [Member] | U.S. Treasury And Government Agency [Member] | Other Fixed Maturity Investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 473 481  
Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 100 102  
Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 5 10  
Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 433 451  
Fixed Maturities [Member] | Residential Mortgage Backed Agency [Member] | Mortgage-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 117 111  
Fixed Maturities [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 21 41  
Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 18 7  
Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 49    
Fixed Maturities [Member] | Other Asset Backed [Member] | Asset-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 252 52  
Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis   101  
Assets Of Consolidated V I Es [Member] | Loans Receivable and Other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 34 28  
Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 2 3  
Other Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial liabilities measured on recurring basis   1  
Liabilities Of Consolidated Vies [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial liabilities measured on recurring basis 12 6  
Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial liabilities measured on recurring basis 25 31  
Fair Value Inputs Level 1 [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 700 797  
Fair value financial liabilities measured on recurring basis 0 0  
Fair Value Inputs Level 1 [Member] | Money Market Securities [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 109 181  
Fair Value Inputs Level 1 [Member] | Medium-term Notes [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial liabilities measured on recurring basis 0 0  
Fair Value Inputs Level 1 [Member] | Equity investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 47 [1] 48 [2]  
Fair Value Inputs Level 1 [Member] | Cash and Cash Equivalents [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 69 84  
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 473 481  
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | U.S. Treasury And Government Agency [Member] | Other Fixed Maturity Investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 473 481  
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Agency [Member] | Mortgage-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0    
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member] | Other Asset Backed [Member] | Asset-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis   0  
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Loans Receivable and Other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 1 [Member] | Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 2 3  
Fair Value Inputs Level 1 [Member] | Other Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial liabilities measured on recurring basis   0  
Fair Value Inputs Level 1 [Member] | Liabilities Of Consolidated Vies [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial liabilities measured on recurring basis 0 0  
Fair Value Inputs Level 1 [Member] | Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial liabilities measured on recurring basis 0 0  
Fair Value Inputs Level 2 [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 984 866  
Fair value financial liabilities measured on recurring basis 0 1  
Fair Value Inputs Level 2 [Member] | Money Market Securities [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 2 [Member] | Medium-term Notes [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial liabilities measured on recurring basis 0 0  
Fair Value Inputs Level 2 [Member] | Equity investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 7 [1] 7 [2]  
Fair Value Inputs Level 2 [Member] | Cash and Cash Equivalents [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 977 859  
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | U.S. Treasury And Government Agency [Member] | Other Fixed Maturity Investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 100 102  
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 5 10  
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 415 435  
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Agency [Member] | Mortgage-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 117 111  
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 21 41  
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 18 7  
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 49    
Fair Value Inputs Level 2 [Member] | Fixed Maturities [Member] | Other Asset Backed [Member] | Asset-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 252 52  
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis   101  
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Loans Receivable and Other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 2 [Member] | Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 2 [Member] | Other Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial liabilities measured on recurring basis   1  
Fair Value Inputs Level 2 [Member] | Liabilities Of Consolidated Vies [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial liabilities measured on recurring basis 0 0  
Fair Value Inputs Level 2 [Member] | Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial liabilities measured on recurring basis 0 0  
Fair Value Inputs Level 3 [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 85 96  
Fair value financial liabilities measured on recurring basis 83 72  
Fair Value Inputs Level 3 [Member] | Money Market Securities [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 3 [Member] | Medium-term Notes [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial liabilities measured on recurring basis 46 35  
Fair Value Inputs Level 3 [Member] | Equity investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 33 [1] 52 [2]  
Fair Value Inputs Level 3 [Member] | Cash and Cash Equivalents [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 18 16  
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | U.S. Treasury And Government Agency [Member] | Other Fixed Maturity Investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | State and municipal bonds [Member] | Other Fixed Maturity Investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Foreign Government Debt [Member] | Other Fixed Maturity Investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Corporate Obligations [Member] | Other Fixed Maturity Investments [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 18 [3]   $ 16
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Agency [Member] | Mortgage-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Residential Mortgage Backed Non Agency [Member] | Mortgage-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | Mortgage-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0    
Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Other Asset Backed [Member] | Asset-backed [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Collateralized Debt Obligations [Member] | Asset-backed [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis   0  
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Loans Receivable and Other Instruments At Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Residential Loans Receivable [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 34 28  
Fair Value Inputs Level 3 [Member] | Assets Of Consolidated V I Es [Member] | Cash and Cash Equivalents [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial assets measured on recurring basis 0 0  
Fair Value Inputs Level 3 [Member] | Other Liabilities [Member] | Credit Derivatives [Member] | Insured Derivatives [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial liabilities measured on recurring basis   0  
Fair Value Inputs Level 3 [Member] | Liabilities Of Consolidated Vies [Member] | Currency Derivatives [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial liabilities measured on recurring basis 12 6  
Fair Value Inputs Level 3 [Member] | Liabilities Of Consolidated Vies [Member] | Variable Interest Entity Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Fair value financial liabilities measured on recurring basis $ 25 $ 31  
[1] Includes $10 million of an exchange-traded bond fund that seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield corporate bonds. The fund is measured at fair value by applying the net asset value per share practical expedient, and is not required to be classified in the fair value hierarchy.
[2] Includes $10 million of an exchange-traded bond fund that seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield corporate bonds. The fund is measured at fair value by applying the net asset value per share practical expedient, and is not required to be classified in the fair value hierarchy.
[3] Includes loans carried at fair value of $17 million.
[4] Includes loans carried at fair value of $15 million
v3.25.4
Fair Value of Financial Instruments (Company's Assets And Liabilities Measured At Fair Value On Recurring Basis) (Parenthetical) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Exchange-traded bond fund $ 10 $ 10
Corporate Obligations [Member] | Loans Carried at Fair Value [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans receivable at fair value $ 17 $ 15
v3.25.4
Fair Value of Financial Instruments (Fair Value Hierarchy Table Presents The Company's Assets And Liabilities At Fair Value Not Recorded On The Company's Consolidated Balance Sheet) (Detail) - Value Disclosed At Fair Value Not Recorded At Fair Value [Member] - Fair Value Measurements Nonrecurring [Member] - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Carrying Reported Amount Fair Value Disclosure [Member]    
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Other investments $ 1 $ 1
Total assets 1 1
Long-term debt 2,843 2,741
Medium-term notes 424 [1] 403 [2]
Investment agreements 174 204
Total liabilities 3,448 3,360
Gross liability (recoverable) 583 540
Ceded recoverable (liability) 16 18
Fair Value [Member]    
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Other investments 1 1
Total assets 1 1
Long-term debt 242 305
Medium-term notes 275 217
Investment agreements 187 217
Total liabilities 711 751
Gross liability (recoverable) 817 764
Ceded recoverable (liability) 19 19
Fair Value [Member] | Fair Value Inputs Level 1 [Member]    
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Other investments 0 0
Total assets 0 0
Long-term debt 0 0
Medium-term notes 0 0
Investment agreements 0 0
Total liabilities 0 0
Gross liability (recoverable) 0 0
Ceded recoverable (liability) 0 0
Fair Value [Member] | Fair Value Inputs Level 2 [Member]    
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Other investments 0 0
Total assets 0 0
Long-term debt 242 305
Medium-term notes 0 0
Investment agreements 0 0
Total liabilities 242 305
Gross liability (recoverable) 0 0
Ceded recoverable (liability) 0 0
Fair Value [Member] | Fair Value Inputs Level 3 [Member]    
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Other investments 1 1
Total assets 1 1
Long-term debt 0 0
Medium-term notes 275 217
Investment agreements 187 217
Total liabilities 469 446
Gross liability (recoverable) 817 764
Ceded recoverable (liability) 19 19
Liabilities Of Consolidated Vies [Member] | Carrying Reported Amount Fair Value Disclosure [Member]    
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Variable interest entity loans payable 7 12
Liabilities Of Consolidated Vies [Member] | Fair Value [Member]    
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Variable interest entity loans payable 7 12
Liabilities Of Consolidated Vies [Member] | Fair Value [Member] | Fair Value Inputs Level 1 [Member]    
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Variable interest entity loans payable 0 0
Liabilities Of Consolidated Vies [Member] | Fair Value [Member] | Fair Value Inputs Level 2 [Member]    
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Variable interest entity loans payable 0 0
Liabilities Of Consolidated Vies [Member] | Fair Value [Member] | Fair Value Inputs Level 3 [Member]    
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Variable interest entity loans payable $ 7 $ 12
[1] The carry value includes complex interest calculations for an MTN feature that is accounted for as a separate derivative and reported together with the host contract. As of December 31, 2025, the Company had an embedded derivative liability of $1 million.
[2] The carry value includes complex interest calculations for an MTN feature that is accounted for as a separate derivative and reported together with the host contract. As of December 31, 2024, the Company had an embedded derivative liability of $2 million.
v3.25.4
Fair Value of Financial Instruments (Fair Value Hierarchy Table Presents The Company's Assets And Liabilities At Fair Value Not Recorded On The Company's Consolidated Balance Sheet) (Parenthetical) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]    
Embedded derivative liabilities $ 1 $ 2
v3.25.4
Fair Value of Financial Instruments (Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - Fair Value Inputs Level 3 [Member] - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Accounts Notes And Loans Receivable [Line Items]    
Beginning balance, fair value assets $ 96 $ 146
Total gains/(losses) included in earnings, assets $ (10) $ (62)
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Other Income Other Income
Unrealized gains/(losses) included in OCI, assets $ 0 [1] $ 0
Purchases, assets 3 17
Issuances, assets 0 0
Settlements, assets (4) (3)
Sales, assets (0) (2)
Transfers into level 3, assets 0 0
Transfers out of level 3, assets 0 0
Ending balance, fair value assets 85 96
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets $ (13) $ (62)
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Other Income Other Income
Change in unrealized gains/(losses) for the period included in OCI for Assets still held, assets $ 0 [1] $ 0
Beginning balance, fair value liabilities 72 132
Total (gains)/losses included in earnings, liabilities $ 13 $ 28
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Other Income Other Income
Unrealized (gains)/losses included in OCI, liabilities $ 8 [2] $ (28)
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, before Tax Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, before Tax
Purchases, liabilities $ 0 $ 0
Issuances, liabilities 0 0
Settlements, liabilities (10) (40)
Sales, liabilities 0 (20)
Transfers into Level 3, liabilities 0 0
Transfers out of Level 3, liabilities 0 0
Ending balance, fair value liabilities 83 72
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities 10 (12)
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held 8 [2] (0)
Loans receivable - residential [Member] | Variable Interest Entity Primary Beneficiary [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Beginning balance, fair value assets 28 35
Total gains/(losses) included in earnings, assets 10 (4)
Unrealized gains/(losses) included in OCI, assets 0 [1] 0
Purchases, assets 0 0
Issuances, assets 0 0
Settlements, assets (4) (3)
Sales, assets 0 (0)
Transfers into level 3, assets 0 0
Transfers out of level 3, assets 0 0
Ending balance, fair value assets 34 28
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets 7 (6)
Change in unrealized gains/(losses) for the period included in OCI for Assets still held, assets 0 [1] 0
Corporate Obligations [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Beginning balance, fair value assets 16 [3] 1
Total gains/(losses) included in earnings, assets (1) (2)
Unrealized gains/(losses) included in OCI, assets 0 [1] 0
Purchases, assets 3 17
Issuances, assets 0 0
Settlements, assets 0 0
Sales, assets 0 0
Transfers into level 3, assets 0 0
Transfers out of level 3, assets 0 0
Ending balance, fair value assets 18 [4] 16 [3]
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets (1) 0
Change in unrealized gains/(losses) for the period included in OCI for Assets still held, assets 0 [1] 0
Equity investments [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Beginning balance, fair value assets 52 108
Total gains/(losses) included in earnings, assets (19) (56)
Unrealized gains/(losses) included in OCI, assets 0 [1] 0
Purchases, assets 0 0
Issuances, assets 0 0
Settlements, assets 0 0
Sales, assets 0 0
Transfers into level 3, assets 0 0
Transfers out of level 3, assets 0 0
Ending balance, fair value assets 33 52
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets (19) (56)
Change in unrealized gains/(losses) for the period included in OCI for Assets still held, assets 0 [1] 0
Medium Term Notes [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Beginning balance, fair value liabilities 35 40
Total (gains)/losses included in earnings, liabilities 3 (4)
Unrealized (gains)/losses included in OCI, liabilities 8 [2] (1)
Purchases, liabilities 0 0
Issuances, liabilities 0 0
Settlements, liabilities 0 0
Sales, liabilities 0 0
Transfers into Level 3, liabilities 0 0
Transfers out of Level 3, liabilities 0 0
Ending balance, fair value liabilities 46 35
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities 3 (4)
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held 8 [2] (1)
Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Beginning balance, fair value liabilities 31 78
Total (gains)/losses included in earnings, liabilities 4 40
Unrealized (gains)/losses included in OCI, liabilities 0 [2] (27)
Purchases, liabilities 0 0
Issuances, liabilities 0 0
Settlements, liabilities (10) (40)
Sales, liabilities 0 (20)
Transfers into Level 3, liabilities 0 0
Transfers out of Level 3, liabilities 0 0
Ending balance, fair value liabilities 25 31
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities 1 0
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held 0 [2] 1
Currency Derivatives [Member] | Variable Interest Entity Primary Beneficiary [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Beginning balance, fair value liabilities 6 14
Total (gains)/losses included in earnings, liabilities 6 (8)
Unrealized (gains)/losses included in OCI, liabilities 0 [2] 0
Purchases, liabilities 0 0
Issuances, liabilities 0 0
Settlements, liabilities 0 0
Sales, liabilities 0 0
Transfers into Level 3, liabilities 0 0
Transfers out of Level 3, liabilities 0 0
Ending balance, fair value liabilities 12 6
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities 6 (8)
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held 0 [2] 0
Other Assets [Member] | Variable Interest Entity Primary Beneficiary [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Beginning balance, fair value assets $ 0 2
Total gains/(losses) included in earnings, assets   0
Unrealized gains/(losses) included in OCI, assets   0
Purchases, assets   0
Issuances, assets   0
Settlements, assets   0
Sales, assets   (2)
Transfers into level 3, assets   0
Transfers out of level 3, assets   0
Ending balance, fair value assets   0
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets   (0)
Change in unrealized gains/(losses) for the period included in OCI for Assets still held, assets   $ 0
[1] Reported within the "Unrealized gains (losses) on available-for-sale securities" on the Company's consolidated statements of comprehensive income (loss).
[2] Reported within the "Instrument-specific credit risk of liabilities measured at fair value" on the Company's consolidated statements of comprehensive income (loss).
[3] Includes loans carried at fair value of $15 million
[4] Includes loans carried at fair value of $17 million.
v3.25.4
Fair Value of Financial Instruments (Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Parenthetical) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Corporate Obligations [Member] | Loans Carried at Fair Value [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans receivable at fair value $ 17 $ 15
v3.25.4
Fair Value of Financial Instruments (Realized And Unrealized Gains And Losses Included In Earnings Pertaining To Level 3 Assets And Liabilities) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange $ (29) $ (42) $ 4
Variable Interest Entity, Primary Beneficiary [Member]      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange 3 (23) (45)
Fair Value Inputs Level 3 [Member] | Total Gains (Losses) Included in Earnings [Member]      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange (23) (54) (12)
Total revenues $ (23) $ (90) $ (74)
Fair Value, Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Realized Investment Gains (Losses) Realized Investment Gains (Losses) Realized Investment Gains (Losses)
Fair Value Inputs Level 3 [Member] | Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held [Member]      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange $ (23) $ (52) $ (12)
Total revenues (23) (50) (22)
Fair Value Inputs Level 3 [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Total Gains (Losses) Included in Earnings [Member]      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange [1] (0) (36) (62)
Fair Value Inputs Level 3 [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Change in Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held [Member]      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange [1] $ 0 $ 2 $ (10)
[1] Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" and "Other net realized gains (losses)-VIE" on the Company's consolidated statements of operations.
v3.25.4
Fair Value of Financial Instruments (Effects Of Derivative Instruments On Consolidated Statements Of Operations) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Derivative Instruments, Gain (Loss) [Line Items]      
Total $ (5) $ 8 $ 6
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Net Gains Losses On Financial Instruments At Fair Value And Foreign Exchange Net Gains Losses On Financial Instruments At Fair Value And Foreign Exchange Net Gains Losses On Financial Instruments At Fair Value And Foreign Exchange
Net Gains (Losses) on Financial Instruments at Fair Value and Foreign Exchange [Member] | Interest rate swaps [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Total $ 1 $ 0 $ 13
Net Gains (Losses) on Financial Instruments at Fair Value and Foreign Exchange [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Currency swaps-VIE      
Derivative Instruments, Gain (Loss) [Line Items]      
Total $ (6) $ 8 $ (7)
v3.25.4
Fair Value of Financial Instruments (Gains And Losses On Fair Value Option Included In The Company's Consolidated Statements Of Operations) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts Notes And Loans Receivable [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange $ (29) $ (42) $ 4
Non Variable Interest Entity [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange (29) (42) 4
Variable Interest Entity [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange 3 (23) (45)
Investments Carried At Fair Value [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange [1] (19) (55) 1
Fixed Maturity Securities Held At Fair Value - VIE [Member] | Variable Interest Entity [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange [2] 0 (1) (4)
Loans Receivable and Other Instruments at Fair Value [Member] | Variable Interest Entity [Member] | Residential Mortgage Loans [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange [2] 10 (4) (33)
Other Assets [Member] | Variable Interest Entity [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange [2] 0 0 4
Medium Term Notes [Member] | Non Variable Interest Entity [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange [1] (3) 4 (5)
Variable Interest Entity Notes [Member] | Variable Interest Entity [Member]      
Accounts Notes And Loans Receivable [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange [2] $ (4) $ (40) $ (25)
[1] Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange" on the Company's consolidated statements of operations.
[2] Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" and "Other net realized gains (losses)-VIE" on the Company's consolidated statements of operations.
v3.25.4
Fair Value of Financial Instruments (Aggregate Fair Value And Remaining Contractual Principal Balance Outstanding On Fair Value Option) (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Residential Mortgage Loans [Member] | Loans Receivable [Member]    
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items]    
Loans receivable, contractual outstanding principal $ 12 $ 12
Loans receivable, 90 days or more past due, contractual outstanding principal 55 48
Loans receivable, fair value 12 12
Loans receivable, 90 days or more past due, fair value 22 16
Loans receivable, difference 0 0
Loans receivable, 90 days or more past due, difference 33 32
Corporate Loans - Current [Member] | Loans Receivable [Member]    
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items]    
Loans receivable, contractual outstanding principal 19 16
Loans receivable, fair value 17 15
Loans receivable, difference 2 1
Total Loans Receivable and Other Instruments [Member] | Loans Receivable [Member]    
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items]    
Loans receivable, contractual outstanding principal 86 76
Loans receivable, fair value 51 43
Loans receivable, difference 35 33
Variable Interest Entity Notes [Member]    
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items]    
Long-term debt instruments, contractual outstanding principal 39 45
Long-term debt instruments, fair value 25 31
Long-term debt instruments, difference 14 14
Medium Term Notes [Member]    
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items]    
Long-term debt instruments, contractual outstanding principal 59 52
Long-term debt instruments, fair value 46 35
Long-term debt instruments, difference $ 13 $ 17
v3.25.4
Investments (Narrative) (Detail)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
Security
Dec. 31, 2024
USD ($)
Security
Dec. 31, 2023
USD ($)
Schedule Of Investments [Line Items]      
Fair value of securities on deposit with various regulatory authorities $ 11 $ 11  
Number of securities in unrealized loss position for a continuous 12 month period | Security 247 366  
Rate that a security's fair value is below book value 5.00% 5.00%  
Increase decrease in other net realized (gains) losses $ (7) $ 13 $ 29
Asset Pledged as Collateral [Member]      
Schedule Of Investments [Line Items]      
Fair value of securities pledged as collateral $ 183 $ 213  
Securities In Unrealized Loss Position [Member]      
Schedule Of Investments [Line Items]      
Weighted average contractual maturity period in years for securities in an unrealized loss position 14 years 15 years  
Increase decrease in other net realized (gains) losses     $ 8
Fair Value Below Book Value Greater Than Five Percent [Member]      
Schedule Of Investments [Line Items]      
Number of securities in unrealized loss position for a continuous 12 month period | Security 200 318  
v3.25.4
Investments (Amortized Cost And Fair Value Of Available-For-Sale and Held-To-Maturity Investment Portfolios) (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Available For Sale Securities [Abstract]    
Investment, Type [Extensible Enumeration] Fixed Maturities [Member] Fixed Maturities [Member]
Total available-for-sale, amortized cost $ 1,464 $ 1,391
Allowance for Credit Losess 0 0
Gross unrealized gains 7 5
Gross unrealized losses (129) (160)
Total available-for-sale, fair value 1,342 1,236
U.S. Treasury And Government Agency [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 478 500
Allowance for Credit Losess 0 0
Gross unrealized gains 0 0
Gross unrealized losses (10) (19)
Total available-for-sale, fair value 468 481
US States And Political Subdivisions [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 106 110
Allowance for Credit Losess 0 0
Gross unrealized gains 3 2
Gross unrealized losses (8) (11)
Total available-for-sale, fair value 101 101
Foreign Governments [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 7 12
Allowance for Credit Losess 0 0
Gross unrealized gains 0 0
Gross unrealized losses (2) (2)
Total available-for-sale, fair value 5 10
Corporate Obligations [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 462 496
Allowance for Credit Losess 0 0
Gross unrealized gains 1 1
Gross unrealized losses (96) (106)
Total available-for-sale, fair value 367 391
Residential Mortgage-Backed Agency [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 125 127
Allowance for Credit Losess 0 0
Gross unrealized gains 0 0
Gross unrealized losses (11) (16)
Total available-for-sale, fair value 114 111
Residential Mortgage-Backed Non-Agency [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 17 36
Allowance for Credit Losess 0 0
Gross unrealized gains 0 1
Gross unrealized losses (1) (5)
Total available-for-sale, fair value 16 32
Mortgage-backed commercial | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 10 7
Allowance for Credit Losess 0 0
Gross unrealized gains 0 0
Gross unrealized losses 0 0
Total available-for-sale, fair value 10 7
Collateralized Debt Obligations [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 30 71
Allowance for Credit Losess 0 0
Gross unrealized gains 1 1
Gross unrealized losses 0 0
Total available-for-sale, fair value 31 72
Other Asset-Backed [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 229 32
Allowance for Credit Losess 0 0
Gross unrealized gains 2 0
Gross unrealized losses (1) (1)
Total available-for-sale, fair value $ 230 $ 31
v3.25.4
Investments (Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments) (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Available For Sale Securities [Abstract]    
Due in one year or less $ 395  
Due after one year through five years 97  
Due after five years through ten years 183  
Due after ten years 378  
Mortgage-backed and asset-backed 411  
Total fixed-maturity investments 1,464  
Due in one year or less 395  
Due after one year through five years 98  
Due after five years through ten years 168  
Due after ten years 280  
Mortgage-backed and asset-backed 401  
Total fixed-maturity investments $ 1,342 $ 1,236
Investment, Type [Extensible Enumeration] Fixed Maturities [Member] Fixed Maturities [Member]
v3.25.4
Investments (Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments) (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Available For Sale Securities [Abstract]    
Investment, Type [Extensible Enumeration] Fixed Maturities [Member] Fixed Maturities [Member]
Less than 12 months, fair value $ 53 $ 106
Less than 12 months, unrealized losses (2) (4)
12 months or longer, fair value 593 634
12 months or longer, unrealized losses (127) (156)
Total, fair value 646 740
Tota, unrealized losses (129) (160)
U.S. Treasury And Government Agency [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 2 41
Less than 12 months, unrealized losses 0 (1)
12 months or longer, fair value 122 123
12 months or longer, unrealized losses (10) (18)
Total, fair value 124 164
Tota, unrealized losses (10) (19)
State and municipal bonds [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 4 15
Less than 12 months, unrealized losses 0 (1)
12 months or longer, fair value 63 63
12 months or longer, unrealized losses (8) (10)
Total, fair value 67 78
Tota, unrealized losses (8) (11)
Foreign Governments [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 0 5
Less than 12 months, unrealized losses 0 0
12 months or longer, fair value 5 5
12 months or longer, unrealized losses (2) (2)
Total, fair value 5 10
Tota, unrealized losses (2) (2)
Corporate Obligations [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 9 25
Less than 12 months, unrealized losses (2) (1)
12 months or longer, fair value 283 302
12 months or longer, unrealized losses (94) (105)
Total, fair value 292 327
Tota, unrealized losses (96) (106)
Residential Mortgage backed Agency [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 5 5
Less than 12 months, unrealized losses 0 0
12 months or longer, fair value 90 100
12 months or longer, unrealized losses (11) (16)
Total, fair value 95 105
Tota, unrealized losses (11) (16)
Residential Mortgage Backed Non Agency [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 5 6
Less than 12 months, unrealized losses 0 (1)
12 months or longer, fair value 5 21
12 months or longer, unrealized losses (1) (4)
Total, fair value 10 27
Tota, unrealized losses (1) (5)
Commercial mortgage backed Securities [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 0  
Less than 12 months, unrealized losses 0  
12 months or longer, fair value 3  
12 months or longer, unrealized losses 0  
Total, fair value 3  
Tota, unrealized losses 0  
Collateralized debt obligations [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 8 6
Less than 12 months, unrealized losses 0 0
12 months or longer, fair value 0 8
12 months or longer, unrealized losses 0 0
Total, fair value 8 14
Tota, unrealized losses 0 0
Other asset backed [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 20 3
Less than 12 months, unrealized losses 0 0
12 months or longer, fair value 22 12
12 months or longer, unrealized losses (1) (1)
Total, fair value 42 15
Tota, unrealized losses $ (1) $ (1)
v3.25.4
Investments (Distribution Of Securities By Percentage Of Fair Value Below Book Value By More Than 5% For A Continuous Twelve Month Period Or Longer) (Detail)
$ in Millions
Dec. 31, 2025
USD ($)
Security
Dec. 31, 2024
USD ($)
Available For Sale Securities [Abstract]    
Book Value $ 1,464  
Fair Value $ 1,342 $ 1,236
> 5% To 15% [Member] | Unrealized loss position > 12 months [Member]    
Available For Sale Securities [Abstract]    
Number of securities | Security 91  
Book Value $ 273  
Fair Value $ 247  
Held To Maturity Securities [Abstract]    
Percentage Of Fair Value Below Book Value Minimum 5.00%  
Percentage Of Fair Value Below Book Value Maximum 15.00%  
> 15% To 25% [Member] | Unrealized loss position > 12 months [Member]    
Available For Sale Securities [Abstract]    
Number of securities | Security 49  
Book Value $ 81  
Fair Value $ 65  
Held To Maturity Securities [Abstract]    
Percentage Of Fair Value Below Book Value Minimum 15.00%  
Percentage Of Fair Value Below Book Value Maximum 25.00%  
> 25% To 50% [Member] | Unrealized loss position > 12 months [Member]    
Available For Sale Securities [Abstract]    
Number of securities | Security 58  
Book Value $ 221  
Fair Value $ 139  
Held To Maturity Securities [Abstract]    
Percentage Of Fair Value Below Book Value Minimum 25.00%  
Percentage Of Fair Value Below Book Value Maximum 50.00%  
> 50% [Member] | Unrealized loss position > 12 months [Member]    
Available For Sale Securities [Abstract]    
Number of securities | Security 2  
Book Value $ 0  
Fair Value $ 0  
Held To Maturity Securities [Abstract]    
Percentage Of Fair Value Below Book Value Minimum 50.00%  
Greater Than 5% [Member] | Unrealized loss position > 12 months [Member]    
Available For Sale Securities [Abstract]    
Number of securities | Security 200  
Book Value $ 575  
Fair Value $ 451  
v3.25.4
Investments (Securities Held In Unrealized Loss Position And Insured By Financial Guarantor) (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Schedule Of Investments [Line Items]    
Fair value $ 646 $ 740
Financial Guarantee [Member]    
Schedule Of Investments [Line Items]    
Fair value 97  
Unrealized loss (48)  
Insurance loss reserve [1] 19  
Asset-backed [Member] | Financial Guarantee [Member]    
Schedule Of Investments [Line Items]    
Fair value 17  
Unrealized loss (1)  
Insurance loss reserve [1] 19  
Corporate Obligations [Member] | Financial Guarantee [Member]    
Schedule Of Investments [Line Items]    
Fair value 80  
Unrealized loss (47)  
Insurance loss reserve [1] $ 0  
[1] Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured and are discounted using a discount rate equal to the risk-free rate applicable to the currency and weighted average remaining life of the insurance contract and may differ from the fair value.
v3.25.4
Investments (Gross Realized Gains and Losses From Sales Of Available-For-Sale Securities) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Investments [Abstract]      
Proceeds from sales $ 126 $ 115 $ 943
Available For Sale Securities Realized Gain Loss [Abstract]      
Gross realized gains 1 1 4
Gross realized losses $ (7) $ (4) $ (79)
v3.25.4
Investments (Portion Of Unrealized Gains And Losses On Equity Investments Held) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Gain (Loss) on Investments [Line Items]      
Realized investment gains (losses) $ (6) $ (3) $ (76)
Equity and Trading securities [Member] | Net gains (losses) recognized during the period on equity and trading securities [Member]      
Gain (Loss) on Investments [Line Items]      
Realized investment gains (losses) (14) (50) (2)
Equity and Trading securities [Member] | Net gains (losses) recognized during the period on equity and trading securities sold during the period [Member]      
Gain (Loss) on Investments [Line Items]      
Realized investment gains (losses) 3 0 (0)
Equity and Trading securities [Member] | Unrealized gains (losses) recognized during the period on equity and trading securities still held at the reporting date [Member]      
Gain (Loss) on Investments [Line Items]      
Realized investment gains (losses) $ (17) $ (50) $ (2)
v3.25.4
Debt (Long-Term Debt) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Long-term debt, gross $ 2,843 $ 2,741
Debt issuance costs (6) (7)
7.000% Debentures Due 2025 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 0 45
Long-term debt, interest rate 7.00%  
Long-term debt, maturity year 2025  
7.150% Debentures Due 2027 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 95 95
Long-term debt, interest rate 7.15%  
Long-term debt, maturity year 2027  
6.625% Debentures Due 2028 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 112 112
Long-term debt, interest rate 6.625%  
Long-term debt, maturity year 2028  
5.700% Senior Notes Due 2034 [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross [1] $ 21 21
Long-term debt, interest rate 5.70%  
Long-term debt, maturity year 2034  
Surplus Notes due 2033 [Member]    
Debt Instrument [Line Items]    
Surplus Notes [2] $ 940 940
Long-term debt, interest rate 11.52161%  
Long-term debt, maturity year 2033  
Accrued Interest [Member]    
Debt Instrument [Line Items]    
Long-term debt, gross $ 1,681 $ 1,535
[1] Callable anytime at the greater of par or the present value of the remaining scheduled payments of principal and interest.
[2] Contractual interest rate is based on three-month SOFR plus 11.52161% at each future reset date.
v3.25.4
Debt (Narrative) (Detail) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Aggregate unpaid contractual principal $ 2,843,000,000 $ 2,741,000,000
Debt instrument principal amount repurchased $ 308,000,000  
Litigation Trust [Member]    
Debt Instrument [Line Items]    
Debt instrument interest rate 18.00%  
Long-term debt, maturity date Aug. 02, 2027  
Unused Commitment   $ 0
MBIA Inc. Senior Notes [Member]    
Debt Instrument [Line Items]    
Debt instrument interest rate 5.70% 5.70%
Long-term debt, maturity year 2034 2034
MBIA Corp Surplus Notes [Member]    
Debt Instrument [Line Items]    
Callable date for fifth anniversary of initial callable date Jan. 15, 2028  
MBIA Corp Surplus Notes [Member] | Mbia Inc Debentures [Member]    
Debt Instrument [Line Items]    
Debt instrument principal amount repurchased $ 13,000,000  
6.625% Debentures Due 2028 [Member]    
Debt Instrument [Line Items]    
Debt instrument interest rate 6.625%  
Long-term debt, maturity year 2028  
Aggregate unpaid contractual principal $ 112,000,000 $ 112,000,000
6.625% Debentures Due 2028 [Member] | Mbia Inc Debentures [Member]    
Debt Instrument [Line Items]    
Debt instrument interest rate 6.625% 6.625%
Long-term debt, maturity year 2028 2028
7.150% Debentures Due 2027 [Member]    
Debt Instrument [Line Items]    
Debt instrument interest rate 7.15%  
Long-term debt, maturity year 2027  
Aggregate unpaid contractual principal $ 95,000,000 $ 95,000,000
Third Party Loan [Member] | Litigation Trust [Member]    
Debt Instrument [Line Items]    
Aggregate unpaid contractual principal $ 6,000,000 12,000,000
7.000% Debentures Due 2025 [Member]    
Debt Instrument [Line Items]    
Debt instrument interest rate 7.00%  
Long-term debt, maturity year 2025  
Aggregate unpaid contractual principal $ 0 45,000,000
5.700% Senior Notes Due 2034 [Member]    
Debt Instrument [Line Items]    
Debt instrument interest rate 5.70%  
Long-term debt, maturity year 2034  
Aggregate unpaid contractual principal [1] $ 21,000,000 $ 21,000,000
Variable Interest Entity Debt [Member]    
Debt Instrument [Line Items]    
Gain related to the partial extinguishment of debt $ 7,000,000  
Medium-term Notes [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate 5.15% 5.17%
Medium-term Notes [Member] | Floating Rate [Member]    
Debt Instrument [Line Items]    
Debt instrument interest rate 0.00%  
Investment Agreement Obligations [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate 6.01% 6.01%
Maximum [Member] | Medium-term Notes [Member]    
Debt Instrument [Line Items]    
Debt instrument interest rate 5.90% 5.90%
Maximum [Member] | Investment Agreement Obligations [Member]    
Debt Instrument [Line Items]    
Debt instrument interest rate 6.88% 6.88%
Minimum [Member] | Medium-term Notes [Member]    
Debt Instrument [Line Items]    
Debt instrument interest rate 2.50% 2.50%
Minimum [Member] | Investment Agreement Obligations [Member]    
Debt Instrument [Line Items]    
Debt instrument interest rate 4.88% 4.78%
MBIA Inc. [Member] | MBIA Corp Surplus Notes [Member]    
Debt Instrument [Line Items]    
Long-term debt principal amount previously purchased $ 13,000,000 $ 13,000,000
National [Member] | 5.700% Senior Notes Due 2034 [Member]    
Debt Instrument [Line Items]    
Long-term debt principal amount previously purchased 308,000,000 308,000,000
Mbia Corp [Member] | 6.625% Debentures Due 2028 [Member] | Mbia Inc Debentures [Member]    
Debt Instrument [Line Items]    
Long-term debt principal amount previously purchased 29,000,000 29,000,000
Variable Interest Entity Primary Beneficiary [Member]    
Debt Instrument [Line Items]    
Aggregate unpaid contractual principal 39,000,000 45,000,000
MBIA Insured Variable Interest Entity Primary Beneficiary [Member]    
Debt Instrument [Line Items]    
Aggregate unpaid contractual principal $ 28,000,000 $ 36,000,000
[1] Callable anytime at the greater of par or the present value of the remaining scheduled payments of principal and interest.
v3.25.4
Debt (Aggregate Maturity Of Debt Obligations) (Detail)
$ in Millions
Dec. 31, 2025
USD ($)
Corporate debt [Member]  
Debt Instrument [Line Items]  
2026 $ 0
2027 95
2028 112
2029 0
2030 0
Thereafter 21
Total 228
Surplus Notes due 2033 [Member]  
Debt Instrument [Line Items]  
2026 0
2027 0
2028 0
2029 0
2030 0
Thereafter 940
Total 940
Total debt obligations due [Member]  
Debt Instrument [Line Items]  
2026 0
2027 95
2028 112
2029 0
2030 0
Thereafter 961
Total $ 1,168
v3.25.4
Debt (Principal Payments For Investment Agreements, MTNs and VIE Obligations) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Total expected principal payments $ 2,843 $ 2,741
Investment Agreement Obligations [Member]    
Debt Instrument [Line Items]    
2026 59  
2027 29  
2028 29  
2029 0  
2030 0  
Thereafter 63  
Total expected principal payments [1] 180  
Less discount [2] 6  
Total 174  
Accrued interest 3  
Carrying amount adjustment $ 2  
Latest maturity year 2037  
Medium-term Notes [Member]    
Debt Instrument [Line Items]    
2026 $ 0  
2027 2  
2028 30  
2029 0  
2030 0  
Thereafter 578  
Total expected principal payments [3] 610  
Less discount [4] 138  
Total 472  
Accrued interest 4  
Carrying amount adjustment $ 9  
Latest maturity year 2035  
Variable Interest Entity Debt [Member] | International And Structured Finance Insurance [Member]    
Debt Instrument [Line Items]    
Latest maturity year 2035  
Variable Interest Entity Debt [Member] | MBIA insured Variable Interest Entity [Member]    
Debt Instrument [Line Items]    
2026 $ 5  
2027 7  
2028 7  
2029 4  
2030 2  
Thereafter 3  
Total expected principal payments $ 28  
[1] Amounts reflect principal due at maturity for investment agreements issued at a discount.
[2] Discount is net of carrying amount adjustment of $2 million and accrued interest adjustment of $3 million.
[3] Amounts reflect principal due at maturity for notes issued at a discount.
[4] Discount is net of carrying amount and market value adjustments of $9 million and accrued interest adjustment of $4 million.
v3.25.4
Income Taxes (Narrative) (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Income Tax Disclosure [Abstract]    
NOL carryforward $ 4,300  
Foreign tax credit 55 $ 55
Valuation allowance on net deferred tax asset $ 1,409 $ 1,380
v3.25.4
Income Taxes (Income before Income Taxes) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Taxes [Line Items]      
Income (loss) from continuing operations before income taxes $ (181) $ (441) $ (484)
Domestic [Member]      
Income Taxes [Line Items]      
Income (loss) from continuing operations before income taxes (181) (441) (484)
Foreign [Member]      
Income Taxes [Line Items]      
Income (loss) from continuing operations before income taxes $ 0 $ 0 $ 0
v3.25.4
Income Taxes (Income Tax Rate Reconciliation) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
U.S. Federal statutory tax rate $ (38) $ (93) $ (101)
Tax Jurisdiction of Domicile [Extensible Enumeration] UNITED STATES UNITED STATES UNITED STATES
Changes in valuation allowance $ 33 $ 88 $ 95
Non-taxable or non-deductible items      
Executive compensation 4 2 5
Share-based compensation (2) 0 0
GAAP-only gains/losses 2 2 0
Other 1 0 0
Other adjustments 0 1 1
Effective tax rate $ 0 $ 0 $ 0
U.S. Federal statutory tax rate, Percent 21.00% 21.00% 21.00%
Change in valuation allowance, Percent (18.20%) (19.90%) (19.70%)
Non-taxable or non-deductible items      
Executive compensation, Percent (2.20%) (0.50%) (1.10%)
Share-based compensation, Percent 1.10% 0.00% 0.00%
GAAP-only gains/losses, Percent (1.10%) (0.40%) 0.00%
Other, Percent (0.60%) 0.00% 0.00%
Other adjustments, Percent 0.00% (0.20%) (0.20%)
Effective tax rate, Percent 0.00% 0.00% 0.00%
v3.25.4
Income Taxes (Components Of Deferred Tax Assets and Liabilities) (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Deferred tax liabilities:    
Unearned premium revenue $ 28 $ 30
Deferred acquisition costs 5 6
Net gains on financial instruments at fair value and foreign exchange 31 32
Net deferred taxes on VIEs 2 2
Total gross deferred tax liabilities 66 70
Deferred tax assets:    
Compensation and employee benefits 7 4
Accrued interest 357 326
Loss and loss adjustment expense reserves 33 40
Net operating loss 911 918
Foreign tax credits 55 55
Capital loss carryforward 53 51
Net unrealized gains and losses in accumulated other comprehensive income 21 27
Other 38 29
Total gross deferred tax assets 1,475 1,450
Valuation allowance 1,409 1,380
Net deferred tax asset $ 0 $ 0
v3.25.4
Business Segments (Narrative) (Detail)
12 Months Ended
Dec. 31, 2025
Segments
Disclosure Business Segments Summary Of Companys Segment Results [Abstract]  
Number of operating segments 3
Number of reportable segments 3
v3.25.4
Business Segments (Summary Of Company's Segment Results) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Revenues $ 99 [1] $ 121 [2] $ 73 [3]
Net gains (losses) on financial instruments at fair value and foreign exchange (29) (42) 4
Revenues of consolidated VIEs 10 (37) (70)
Inter-segment revenues 0 [4] 0 [5] 0 [6]
Total revenues 80 [7] 42 [8] 7 [9]
Losses and loss adjustment (20) 184 177
Compensation and benefits 44 44 61
Interest 196 208 210
Inter-segment service charge 0 0 0
Other segment items 41 [10] 47 [11] 43 [12]
Total expenses 261 483 491
Income (loss) from continuing operations before income taxes (181) (441) (484)
Total assets per reportable segment 2,005 2,157 2,533
Assets held for sale 8 11 73
Total assets 2,013 2,168 2,606
Operating Segments [Member] | US Public Finance Insurance [Member]      
Segment Reporting Information [Line Items]      
Revenues 56 [1] 72 [2] 51 [3]
Net gains (losses) on financial instruments at fair value and foreign exchange 1 1 8
Revenues of consolidated VIEs 0 0 0
Inter-segment revenues 26 [4] 26 [5] 27 [6]
Total revenues 83 [7] 99 [8] 86 [9]
Losses and loss adjustment (33) 191 170
Compensation and benefits 0 0 0
Interest 0 0 0
Inter-segment service charge 31 32 33
Other segment items 12 [10] 14 [11] 14 [12]
Total expenses 10 237 217
Income (loss) from continuing operations before income taxes 73 (138) (131)
Total assets per reportable segment 1,475 1,549 1,742
Operating Segments [Member] | Corporate Operations [Member]      
Segment Reporting Information [Line Items]      
Revenues 24 [1] 28 [2] (11) [3]
Net gains (losses) on financial instruments at fair value and foreign exchange (2) 14 8
Revenues of consolidated VIEs 0 0 0
Inter-segment revenues 47 [4] 54 [5] 54 [6]
Total revenues 69 [7] 96 [8] 51 [9]
Losses and loss adjustment 0 0 0
Compensation and benefits 44 44 61
Interest 69 72 76
Inter-segment service charge 0 0 0
Other segment items 16 [10] 17 [11] 16 [12]
Total expenses 129 133 153
Income (loss) from continuing operations before income taxes (60) (37) (102)
Total assets per reportable segment 653 707 755
Operating Segments [Member] | International And Structured Finance Insurance [Member]      
Segment Reporting Information [Line Items]      
Revenues 19 [1] 21 [2] 33 [3]
Net gains (losses) on financial instruments at fair value and foreign exchange (28) (57) (12)
Revenues of consolidated VIEs 10 (37) (70)
Inter-segment revenues 6 [4] 6 [5] 6 [6]
Total revenues (7) [7] (67) [8] (43) [9]
Losses and loss adjustment 13 (7) 7
Compensation and benefits 0 0 0
Interest 150 159 158
Inter-segment service charge 14 18 17
Other segment items 24 [10] 29 [11] 25 [12]
Total expenses 201 199 207
Income (loss) from continuing operations before income taxes (194) (266) (250)
Total assets per reportable segment 668 834 974
Intersegment Elimination [Member]      
Segment Reporting Information [Line Items]      
Revenues 0 [1] 0 [2] 0 [3]
Net gains (losses) on financial instruments at fair value and foreign exchange 0 0 0
Revenues of consolidated VIEs 0 0 0
Inter-segment revenues (79) [4] (86) [5] (87) [6]
Total revenues (79) [7] (86) [8] (87) [9]
Losses and loss adjustment 0 0 0
Compensation and benefits 0 0 0
Interest (23) (23) (24)
Inter-segment service charge (45) (50) (50)
Other segment items (11) [10] (13) [11] (12) [12]
Total expenses (79) (86) (86)
Income (loss) from continuing operations before income taxes 0 0 (1)
Total assets per reportable segment $ (791) [13] $ (933) [14] $ (938) [15]
[1] Consists primarily of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses).
[2] Consists primarily of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses).
[3] Consists primarily of net premiums earned, net investment income, net realized investment gains (losses), fees and reimbursements and other net realized gains (losses).
[4] Primarily represents intercompany service charges and intercompany net investment income.
[5] Primarily represents intercompany service charges and intercompany net investment income.
[6] Primarily represents intercompany service charges and intercompany net investment income.
[7] Includes net investment income of $60 million, $26 million, $11 million, and ($24) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.
[8] Includes net investment income of $67 million, $30 million, $11 million, and ($24) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.
[9] Includes net investment income of $93 million, $25 million, $23 million, and ($25) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.
[10] Other segment items for each reportable segment include:

a. U.S. Public Finance Insurance - amortization of DAC, professional service fees, occupancy costs and other operating expenses;

b. Corporate - professional service fees, occupancy costs and other operating expenses;

c. International and Structured Finance Insurance - expenses of consolidated VIEs, amortization of DAC, professional service fees and other operating expenses, and

d. Elimination - inter-segment amortization of DAC and inter-segment occupancy costs.

[11] Other segment items for each reportable segment include:

a. U.S. Public Finance Insurance - amortization of DAC, professional service fees, occupancy costs and other operating expenses;

b. Corporate - professional service fees, occupancy costs and other operating expenses;

c. International and Structured Finance Insurance - expenses of consolidated VIEs, amortization of DAC, professional service fees and other operating expenses, and

d. Elimination - inter-segment amortization of DAC and inter-segment occupancy costs.

[12] Other segment items for each reportable segment include:

a. U.S. Public Finance Insurance - amortization of DAC, professional service fees, occupancy costs and other operating expenses;

b. Corporate - professional service fees, occupancy costs and other operating expenses;

c. International and Structured Finance Insurance - expenses of consolidated VIEs, amortization of DAC, professional service fees and other operating expenses, and

d. Elimination - inter-segment amortization of DAC and inter-segment occupancy costs.

[13] Consists principally of intercompany reinsurance balances.
[14] Consists principally of intercompany reinsurance balances.
[15] Consists principally of intercompany reinsurance balances.
v3.25.4
Business Segments - (Summary Of Company's Segment Results) (Parenthetical) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating Segments [Member] | U S Public Finance Insurance [Member]      
Segment Reporting Information [Line Items]      
Net investment income $ 60 $ 67 $ 93
Operating Segments [Member] | Corporate Operations [Member]      
Segment Reporting Information [Line Items]      
Net investment income 26 30 25
Operating Segments [Member] | International And Structured Finance Insurance [Member]      
Segment Reporting Information [Line Items]      
Net investment income 11 11 23
Intersegment Eliminations [Member]      
Segment Reporting Information [Line Items]      
Net investment income $ (24) $ (24) $ (25)
v3.25.4
Business Segments (Summary Of Premiums Earned On Financial Guarantees And Insured Derivatives By Geographic Location Of Risk) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Total premiums earned $ 30 $ 36 $ 37
United States [Member]      
Segment Reporting Information [Line Items]      
Total premiums earned 24 29 29
Other Americas [Member]      
Segment Reporting Information [Line Items]      
Total premiums earned $ 6 $ 7 $ 8
v3.25.4
Insurance in Force (Narrative) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Guarantor Obligations [Line Items]    
Transactions guaranteed by MBIA on behalf of affiliated companies $ 900  
Aggregate amount of insurance in force ceded to reinsurers 1,200 $ 1,500
Aggregate amount of insured par outstanding ceded to reinsurers 504 $ 671
US Public Finance Insurance [Member]    
Guarantor Obligations [Line Items]    
Aggregate amount of insured par outstanding ceded to reinsurers 417  
Structured Finance And International Insurance [Member]    
Guarantor Obligations [Line Items]    
Aggregate amount of insured par outstanding ceded to reinsurers $ 87  
Financial Guaranty Insurance Company [Member]    
Guarantor Obligations [Line Items]    
Financial guaranty maturity year 2058  
Investment agreements, MTNs and other affiliated contracts [Member]    
Guarantor Obligations [Line Items]    
Financial guaranty maturity year 2037  
v3.25.4
Insurance in Force (Schedule Of Geographical Distribution Of Insurance In Force) (Detail) - USD ($)
$ in Billions
Dec. 31, 2025
Dec. 31, 2024
Insurance in Force [Line Items]    
Insurance in Force $ 48.4 $ 54.3
% of Insurance in Force 100.00% 100.00%
California [Member]    
Insurance in Force [Line Items]    
Insurance in Force $ 10.8 $ 12.1
% of Insurance in Force 22.20% 22.30%
Illinois [Member]    
Insurance in Force [Line Items]    
Insurance in Force $ 5.5 $ 6.0
% of Insurance in Force 11.40% 11.00%
New Jersey [Member]    
Insurance in Force [Line Items]    
Insurance in Force $ 3.5 $ 3.8
% of Insurance in Force 7.20% 7.00%
Hawaii [Member]    
Insurance in Force [Line Items]    
Insurance in Force $ 3.4 $ 3.5
% of Insurance in Force 7.00% 6.50%
Virginia [Member]    
Insurance in Force [Line Items]    
Insurance in Force $ 3.0 $ 3.2
% of Insurance in Force 6.30% 6.00%
Texas [Member]    
Insurance in Force [Line Items]    
Insurance in Force $ 1.8 $ 2.0
% of Insurance in Force 3.80% 3.70%
Colorado [Member]    
Insurance in Force [Line Items]    
Insurance in Force $ 1.4 $ 1.6
% of Insurance in Force 2.80% 2.90%
Oregon [Member]    
Insurance in Force [Line Items]    
Insurance in Force $ 1.1 $ 1.4
% of Insurance in Force 2.20% 2.50%
New York    
Insurance in Force [Line Items]    
Insurance in Force $ 1.0 $ 1.2
% of Insurance in Force 2.00% 2.20%
Georgia    
Insurance in Force [Line Items]    
Insurance in Force $ 1.0 $ 1.1
% of Insurance in Force 2.10% 2.10%
Sub-Total Insurance In Force [Member]    
Insurance in Force [Line Items]    
Insurance in Force $ 32.5 $ 35.9
% of Insurance in Force 67.00% 66.20%
Nationally Diversified [Member]    
Insurance in Force [Line Items]    
Insurance in Force $ 5.8 $ 6.3
% of Insurance in Force 12.10% 11.50%
Other States [Member]    
Insurance in Force [Line Items]    
Insurance in Force $ 8.3 $ 10.1
% of Insurance in Force 17.20% 18.50%
United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force $ 46.6 $ 52.3
% of Insurance in Force 96.30% 96.20%
Internationally Diversified [Member]    
Insurance in Force [Line Items]    
Insurance in Force $ 0.1 $ 0.2
% of Insurance in Force 0.20% 0.40%
Country Specific [Member]    
Insurance in Force [Line Items]    
Insurance in Force $ 1.7 $ 1.8
% of Insurance in Force 3.50% 3.40%
Non-United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force $ 1.8 $ 2.0
% of Insurance in Force 3.70% 3.80%
v3.25.4
Insurance In Force (Schedule Of Insurance In Force By Type Of Bond, Excluding Transactions Guaranteed By MBIA Corp. On Behalf Of Various Investment Management Services And Other Affiliated Companies) (Detail) - USD ($)
$ in Billions
Dec. 31, 2025
Dec. 31, 2024
Insurance in Force [Line Items]    
Insurance in Force $ 48.4 $ 54.3
Gross Par Amount 24.4 27.6
United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force 46.6 52.3
Non-United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force 1.8 2.0
Transportation [Member] | Non-United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force 0.2 0.3
Gross Par Amount 0.2 0.2
Other Public Finance [Member] | Non-United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force [1] 0.1 0.1
Gross Par Amount [1] 0.1 0.1
Sovereign Related And Sub-Sovereign [Member] | Non-United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force [2] 1.1 1.1
Gross Par Amount [2] 0.8 0.9
Global Public Finance [Member]    
Insurance in Force [Line Items]    
Insurance in Force 47.0 52.7
Gross Par Amount 23.4 26.5
Global Public Finance [Member] | United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force 45.6 51.2
Gross Par Amount 22.3 25.3
Global Public Finance [Member] | Non-United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force 1.4 1.5
Gross Par Amount 1.1 1.2
Global Public Finance [Member] | General Obligation [Member] | United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force [3] 12.5 14.6
Gross Par Amount [3] 6.0 7.0
Global Public Finance [Member] | General Obligation—Lease [Member] | United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force 0.7 0.8
Gross Par Amount 0.5 0.5
Global Public Finance [Member] | Municipal Utilities [Member] | United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force 4.8 5.4
Gross Par Amount 3.5 3.9
Global Public Finance [Member] | Tax-Backed [Member] | United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force 8.4 9.8
Gross Par Amount 3.2 4.2
Global Public Finance [Member] | Transportation [Member] | United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force 5.6 6.1
Gross Par Amount 1.8 1.9
Global Public Finance [Member] | Higher Education [Member] | United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force 0.7 0.8
Gross Par Amount 0.5 0.6
Global Public Finance [Member] | Health Care [Member] | United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force 0.4 0.6
Gross Par Amount 0.2 0.4
Global Public Finance [Member] | Military Housing [Member] | United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force 12.2 12.7
Gross Par Amount 6.3 6.5
Global Public Finance [Member] | Investor-Owned Utilities [Member] | United States [Member]    
Insurance in Force [Line Items]    
Insurance in Force [4] 0.3 0.4
Gross Par Amount [4] 0.3 0.3
Global Structured Finance [Member]    
Insurance in Force [Line Items]    
Insurance in Force 1.4 1.6
Gross Par Amount 1.0 1.1
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member]    
Insurance in Force [Line Items]    
Insurance in Force 0.7 0.8
Gross Par Amount 0.5 0.5
Global Structured Finance [Member] | Mortgage-backed commercial    
Insurance in Force [Line Items]    
Insurance in Force 0.3 0.3
Gross Par Amount 0.2 0.1
Global Structured Finance [Member] | Consumer Asset Backed [Member]    
Insurance in Force [Line Items]    
Insurance in Force 0.1 0.1
Gross Par Amount 0.1 0.1
Global Structured Finance [Member] | Corporate Asset Backed [Member]    
Insurance in Force [Line Items]    
Insurance in Force 0.3 0.4
Gross Par Amount $ 0.2 $ 0.4
[1] Includes municipal owned entities backed by sponsoring local government, tax backed and utility transactions.
[2] Includes regions, departments or their equivalent in each jurisdiction as well as sovereign owned entities that are supported by a sovereign state, region or department.
[3] Includes general obligation unlimited and limited (property) tax bonds, general fund obligation bonds and pension obligation bonds of states, cities, counties, schools and special districts
[4] Includes investor-owned utilities, industrial development and pollution control revenue bonds.
v3.25.4
Insurance In Force (Summary Of Company's Reinsurance Agreements For U.S. Public Finance And Structured Finance And International Insurance Operations) (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Insurance in Force [Line Items]    
Ceded Par Outstanding $ 504 $ 671
Trust Accounts/Amounts on Deposit 18  
Reinsurance Recoverable/ (Payable) Net [1] 13  
Assured Guaranty Re Ltd [Member]    
Insurance in Force [Line Items]    
Ceded Par Outstanding [2] 256  
Trust Accounts/Amounts on Deposit [2] 18  
Reinsurance Recoverable/ (Payable) Net [1],[2] 13  
Assured Guaranty Inc [Member]    
Insurance in Force [Line Items]    
Ceded Par Outstanding 243  
Trust Accounts/Amounts on Deposit 0  
Reinsurance Recoverable/ (Payable) Net [1] 0  
Others [Member]    
Insurance in Force [Line Items]    
Ceded Par Outstanding [2] 5  
Trust Accounts/Amounts on Deposit [2] 0  
Reinsurance Recoverable/ (Payable) Net [1],[2] $ 0  
[1] Total reinsurance recoverable/(payable) is primarily related to recoverables on paid and unpaid losses net of paid and unpaid salvage due to reinsurers.
[2] Represents a withdrawal of ratings.
v3.25.4
Insurance Regulations And Dividends (Narrative) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Insurance Regulations And Dividends [Line Items]      
Percentage of policyholders' surplus 10.00%    
Percentage of adjusted net investment income 100.00%    
Policyholders Surplus [Member] | Minimum [Member]      
Insurance Regulations And Dividends [Line Items]      
Policyholders' surplus $ 65    
MBIA Corp [Member]      
Insurance Regulations And Dividends [Line Items]      
Unassigned surplus 2,000 $ 1,900  
Statutory net loss 26 64 $ 28
Statutory capital 79 88  
Policyholders' surplus 74    
Contingency reserves 5    
National [Member]      
Insurance Regulations And Dividends [Line Items]      
Dividends from subsidiaries 63 69  
Statutory net loss   133 $ 142
Statutory capital 937 $ 912  
Policyholders' surplus 656    
Contingency reserves 281    
Statutory net income $ 88    
v3.25.4
Benefit Plans (Narrative) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Pension and 401k expense $ 2 $ 2 $ 2
Defined contribution pension [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Percentage of company contribution of the employees annual compensation 10.00%    
Vested after two years 20.00%    
Vested after three years 60.00%    
Vested after four years 80.00%    
Vested after five years 100.00%    
Qualified profit-sharing/401(k) [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Contribution percentage of eligible employees compensation 25.00%    
Vested after two years 20.00%    
Vested after three years 60.00%    
Vested after four years 80.00%    
Vested after five years 100.00%    
Contributions percentage of employer match 5.00%    
Maximum [Member] | Defined contribution pension [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Maximum annual compensation subject to pension $ 2    
Omnibus Plan [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Shareholder approved increase in common stock reserved and available for issuance 20,750,000    
Shares issued under Omnibus Plan in connection with stock options, count 1    
Shares/units available for future grants 3,325,068    
Omnibus Plan [Member] | After May 1, 2012 Amendment [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Shares issued under Omnibus Plan in connection with other than stock options, count 1.28    
Omnibus Plan [Member] | Prior To May 1, 2012 Amendment [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Shares issued under Omnibus Plan in connection with other than stock options, count 2    
Restricted Stock [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Stock issued during period, value, restricted stock award, gross $ 4 5  
Share-based compensation expense (benefit) 4 7 18
Tax charge related to share-based compensation 0 0 0
Unrecognized compensation cost $ 2    
Expected to be recognized as expense over a weighted average period, years 1 year 11 months 1 day    
Accelerated compensation expense     5
Expense related to awards $ 4 $ 7 $ 18
Restricted Stock [Member] | No Change in Fair Value of Awards [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Additional compensation expense recognized $ 0    
Restricted Stock [Member] | Stock Price Targets [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Restricted shares granted 41,307 71,193 255,340
Restricted Stock [Member] | Minimum [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Long-term incentive awards vesting period, years 3 years    
Restricted Stock [Member] | Maximum [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Long-term incentive awards vesting period, years 5 years    
Deferred Cash Awards [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Requisite service period 3 years    
Compensation expense $ 4    
Total accrued liability $ 4    
v3.25.4
Benefit Plans (Restricted Shares Outstanding) (Detail) - Restricted Stock [Member] - $ / shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Outstanding at beginning of year 3,997,476 4,838,270 5,759,505
Granted 817,072 793,891 519,238
Vested (2,784,391) (1,418,225) (1,440,473)
Forfeited 0 (216,460) 0
Outstanding at end of year 2,030,157 3,997,476 4,838,270
Outstanding at beginning of year, Weighted Average Price per Share $ 9.4675 $ 9.9295 $ 9.5583
Granted, Weighted Average Price per Share 5.0485 6.4543 11.6314
Vested, Weighted Average Price per Share 9.6484 8.6867 9.0587
Forfeited, Weighted Average Price per Share 0 13.8595 0
Outstanding at end of year, Weighted Average Price per Share $ 7.4409 $ 9.4675 $ 9.9295
v3.25.4
Earnings Per Share (Narrative) (Detail) - shares
shares in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Antidilutive Shares [Abstract]      
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 1 1 1
v3.25.4
Earnings Per Share (Computation Of Basic And Diluted Earnings Per Share) (Detail) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Basic and diluted earnings per share:      
Net Income (Loss) Available to Common Stockholders, Basic, Total $ (181) $ (441) $ (484)
Less: Net income (loss) from continuing operations attributable to noncontrolling interests (6) 0 0
Income (loss) from continuing operations (181) (441) (484)
Income (loss) from discontinued operations, net of income taxes (2) (3) (3)
Less: Net income (loss) from discontinued operations attributable to noncontrolling interests 0 3 4
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent, Total (2) (6) (7)
Net Income (Loss) $ (177) $ 435 $ 477
Basic weighted average shares 49,278,281 47,436,079 [1] 48,207,574 [1]
Diluted weighted average shares 49,278,281 47,436,079 [1] 48,207,574 [1]
Continuing operations - Basic $ (3.53) $ (9.31) $ (10.03)
Continuing operations - Diluted (3.53) (9.31) (10.03)
Discontinued operations - Basic (0.05) (0.12) (0.15)
Discontinued operations - Diluted (0.05) (0.12) (0.15)
Net income (loss) per share attributable to MBIA Inc. - basic (3.58) (9.43) (10.18)
Earnings Per Share, Diluted $ (3.58) $ (9.43) $ (10.18)
Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect 900,000 3,200,000 4,300,000
MBIA Inc. [Member]      
Basic and diluted earnings per share:      
Income (loss) from continuing operations $ (175) $ 441 $ 484
[1] Includes approximately 1 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for each of the years ended December 31, 2025, 2024 and 2023 respectively.
v3.25.4
Common and Preferred Stock - (Narrative) (Detail) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
May 03, 2023
Class of Stock [Line Items]      
Treasury stock shares acquired 0 0  
Preferred stock shares issued 0 0  
Preferred stock shares outstanding 0 0  
Dividends declared on preferred stock $ 0 $ 0  
Preferred stock par or stated value per share $ 1 $ 1  
Shares repurchased under share repurchase program remaining authorized amount $ 71   $ 100
MBIA Insurance Corporation [Member]      
Class of Stock [Line Items]      
Preferred stock par or stated value per share $ 1,000    
Preferred stock liquidation preference $ 100,000    
Preferred Stock [Member] | MBIA Insurance Corporation [Member]      
Class of Stock [Line Items]      
Preferred stock shares issued 2,759    
Preferred stock, carrying value issued and outstanding $ 28    
Shares repurchased under share repurchase program, average price per share $ 10,900    
Face value of repurchased preferred stock 10.90%    
Dividend rate on preferred stock determined rate SOFR plus 2.26161%    
Preferred stock dividend rate 2.26161%    
Unaffiliated Investors [Member] | MBIA Insurance Corporation [Member]      
Class of Stock [Line Items]      
Preferred stock shares outstanding 1,315    
Held by MBIA Inc. [Member] | MBIA Insurance Corporation [Member]      
Class of Stock [Line Items]      
Preferred stock shares outstanding 1,444    
v3.25.4
Accumulated Other Comprehensive Income (Changes In The Components Of AOCI) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning balance $ (2,089)    
Other comprehensive income (loss) before reclassifications 21 $ (20) $ 32
Amounts reclassified from AOCI 12 31 112
Total other comprehensive income (loss) 33 11 144
Ending balance (2,237) (2,089)  
Accumulated Other Comprehensive Income [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning balance (128) (139) (283)
Ending balance (95) (128) (139)
Unrealized gains (losses) on AFS, net [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning balance (150) (134) (234)
Other comprehensive income (loss) before reclassifications 29 (19) 33
Amounts reclassified from AOCI 7 3 67
Total other comprehensive income (loss) 36 (16) 100
Ending balance (114) (150) (134)
Foreign currency translation, net [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning balance (5) (4) (4)
Other comprehensive income (loss) before reclassifications 0 (1) 0
Amounts reclassified from AOCI 5 0 0
Total other comprehensive income (loss) 5 (1) 0
Ending balance 0 (5) (4)
Instrument-specific credit risk of liabilities measured at fair value, net [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning balance 27 (1) (45)
Other comprehensive income (loss) before reclassifications (8) 0 (1)
Amounts reclassified from AOCI 0 28 45
Total other comprehensive income (loss) (8) 28 44
Ending balance 19 27 $ (1)
Instrument-specific credit risk of liabilities measured at fair value, net [Member] | Accumulated Other Comprehensive Income [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning balance 27    
Ending balance $ 19 $ 27  
v3.25.4
Accumulated Other Comprehensive Income (Details Of The Reclassification From AOCI) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange $ (29) $ (42) $ 4
Net income (loss) attributable to MBIA Inc. (177) 435 477
Amounts reclassified from AOCI [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Net income (loss) attributable to MBIA Inc. (12) (31) (112)
Unrealized gains (losses) on AFS, net [Member] | Amounts reclassified from AOCI [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Net realized investment gains (losses) (7) (3) (67)
Foreign currency translation [Member] | Amounts reclassified from AOCI [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Net gains (losses) on financial instruments at fair value and foreign exchange (5) 0 0
Instrument-specific credit risk of liabilities measured at fair value, net [Member] | Amounts reclassified from AOCI [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Other net realized gains (losses) 0 (9) (20)
Net gains (losses) on financial instruments at fair value and foreign exchange $ 0 $ (19) $ (25)
v3.25.4
Commitments and Contingencies (Narrative) (Detail)
$ in Millions
Dec. 31, 2025
USD ($)
LegalProceedings
Commitments And Contingencies [Line Items]  
Other material legal proceedings pending | LegalProceedings 0
MBIA Corp [Member] | Fully Drawn [Member]  
Commitments And Contingencies [Line Items]  
Other Commitment | $ $ 15
v3.25.4
Commitments and Contingencies (Lease Disclosures) (Detail)
$ in Millions
Dec. 31, 2025
USD ($)
Lessee Disclosure [Abstract]  
Right-of-use asset $ 2
Operating lease liability $ 2
Operating lease weighted average remaining lease term 3 years 3 months 18 days
Operating lease weighted average discount rate percent 9.50%
Operating leases future minimum payments due $ 2
Operating lease right of use asset Other Assets
Operating Lease, Liability, Statement of Financial Position [Extensible List] Other Liabilities
v3.25.4
Schedule I - Investments (Detail)
$ in Millions
Dec. 31, 2025
USD ($)
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost $ 1,852
Fair Value 1,675
Amount at which shown in the balance sheet 1,675
Other Investments [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 1
Fair Value 1
Amount at which shown in the balance sheet 1
Assets Of Consolidated VIEs [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 41
Fair Value 34
Amount at which shown in the balance sheet 34
Loans Receivable [Member] | Assets Of Consolidated VIEs [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 41
Fair Value 34
Amount at which shown in the balance sheet 34
Long-Term Available-For-Sale [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 1,164
Fair Value 1,042
Amount at which shown in the balance sheet 1,042
Long-Term Available-For-Sale [Member] | U.S. Treasury And Government Agency [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 178
Fair Value 168
Amount at which shown in the balance sheet 168
Long-Term Available-For-Sale [Member] | US States And Political Subdivisions [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 106
Fair Value 101
Amount at which shown in the balance sheet 101
Long-Term Available-For-Sale [Member] | Foreign Governments [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 7
Fair Value 5
Amount at which shown in the balance sheet 5
Long-Term Available-For-Sale [Member] | Corporate Obligations [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 462
Fair Value 367
Amount at which shown in the balance sheet 367
Short-Term Available-For-Sale [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 300
Fair Value 300
Amount at which shown in the balance sheet 300
AFS Investments [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 1,464
Fair Value 1,342
Amount at which shown in the balance sheet 1,342
Investments At Fair Value [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 387
Fair Value 332
Amount at which shown in the balance sheet 332
Mortgage-backed [Member] | Long-Term Available-For-Sale [Member] | Residential Mortgage backed Agency [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 125
Fair Value 114
Amount at which shown in the balance sheet 114
Mortgage-backed [Member] | Long-Term Available-For-Sale [Member] | Residential Mortgage-Backed Non Agency [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 17
Fair Value 16
Amount at which shown in the balance sheet 16
Mortgage-backed [Member] | Long-Term Available-For-Sale [Member] | Mortgage-backed commercial  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 10
Fair Value 10
Amount at which shown in the balance sheet 10
Asset-backed [Member] | Long-Term Available-For-Sale [Member] | Collateralized Debt Obligations [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 30
Fair Value 31
Amount at which shown in the balance sheet 31
Asset-backed [Member] | Long-Term Available-For-Sale [Member] | Other Asset-Backed [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 229
Fair Value 230
Amount at which shown in the balance sheet $ 230
v3.25.4
Schedule II (Condensed Balance Sheets) (Detail) - USD ($)
$ / shares in Units, $ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Assets [Abstract]        
Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $228 and $120) $ 1,342 $ 1,236    
Total assets 2,013 2,168 $ 2,606  
Liabilities:        
Total liabilities 4,243 4,244    
Equity:        
Preferred stock, par value $1 per share; authorized shares—10,000,000; issued and outstanding—none 0 0    
Common stock, par value $1 per share; authorized shares--400,000,000; issued shares--283,186,115 283 283    
Additional paid-in capital 2,450 2,492    
Retained earnings (deficit) (1,768) (1,591)    
Accumulated other comprehensive income (loss), net of tax (95) (128)    
Treasury stock, at cost--232,675,865 and 232,215,934 shares (3,107) (3,145)    
Total shareholders' equity of MBIA Inc. (2,237) (2,089)    
Total liabilities and equity 2,013 $ 2,168    
Fixed-maturity securities held as available-for-sale, amortized cost $ 1,464      
Preferred stock, par value $ 1 $ 1    
Preferred stock, authorized shares 10,000,000 10,000,000    
Preferred stock, issued 0 0    
Preferred stock, outstanding 0 0    
Common stock, par value $ 1 $ 1    
Common stock, authorized shares 400,000,000 400,000,000    
Common stock, issued shares 283,186,115 283,186,115    
Treasury stock, shares 232,675,865 232,215,934    
Parent Company [Member]        
Assets [Abstract]        
Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $228 and $120) $ 226 $ 114    
Short-term investments, at fair value (amortized cost $278 and $445) 278 445    
Total investments 504 559    
Cash and cash equivalents 34 32 $ 33 $ 16
Other assets 5 1    
Total assets 543 592    
Liabilities:        
Investment agreements 174 204    
Long-term debt 233 278    
Affiliate loans payable 511 478    
Accumulated loss of wholly-owned subsidiaries 1,862 1,721    
Total liabilities 2,780 2,681    
Equity:        
Preferred stock, par value $1 per share; authorized shares—10,000,000; issued and outstanding—none 0 0    
Common stock, par value $1 per share; authorized shares--400,000,000; issued shares--283,186,115 283 283    
Additional paid-in capital 2,450 2,492    
Retained earnings (deficit) (1,768) (1,591)    
Accumulated other comprehensive income (loss), net of tax (95) (128)    
Treasury stock, at cost--232,675,865 and 232,215,934 shares (3,107) (3,145)    
Total shareholders' equity of MBIA Inc. (2,237) (2,089)    
Total liabilities and equity 543 592    
Fixed-maturity securities held as available-for-sale, amortized cost 228 120    
Short-term investments, amortized cost $ 278 $ 445    
Preferred stock, par value $ 1 $ 1    
Preferred stock, authorized shares 10,000,000 10,000,000    
Preferred stock, issued 0 0    
Preferred stock, outstanding 0 0    
Common stock, par value $ 1 $ 1    
Common stock, authorized shares 400,000,000 400,000,000    
Common stock, issued shares 283,186,115 283,186,115    
Treasury stock, shares 232,675,865 232,215,934    
v3.25.4
Schedule II (Condensed Statements Of Operations) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues:      
Net gains (losses) on financial instruments at fair value and foreign exchange $ (29) $ (42) $ 4
Total revenues 80 [1] 42 [2] 7 [3]
Expenses:      
Interest 196 208 210
Provision (benefit) for income taxes 0 0 0
Net income (loss) (177) 435 477
Parent Company [Member]      
Revenues:      
Net investment income 23 27 21
Net realized investment gains (losses) 0 0 (32)
Net gains (losses) on financial instruments at fair value and foreign exchange (14) 8 4
Other net realized gains (losses) 0 2 1
Total revenues 9 37 (6)
Expenses:      
Operating 10 13 15
Interest 69 72 76
Total expenses 79 85 91
Gain (loss) before income taxes and equity in earnings of subsidiaries (70) (48) (97)
Provision (benefit) for income taxes (2) (2) (1)
Gain (loss) before equity in earnings of subsidiaries (68) (46) (96)
Equity in net income (loss) of subsidiaries (109) (401) (395)
Net income (loss) $ (177) $ (447) $ (491)
[1] Includes net investment income of $60 million, $26 million, $11 million, and ($24) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.
[2] Includes net investment income of $67 million, $30 million, $11 million, and ($24) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.
[3] Includes net investment income of $93 million, $25 million, $23 million, and ($25) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.
v3.25.4
Schedule II - Condensed Statements Of Cash Flows (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities:      
Investment income received $ 52 $ 57 $ 105
Operating expenses paid and other operating (72) (57) (71)
Interest paid, net of interest converted to principal (49) (53) (64)
Net cash provided (used) by operating activities 38 (176) (195)
Cash flows from investing activities:      
Purchases of available-for-sale investments (411) (210) (366)
Sales of available-for-sale investments 126 115 943
Paydowns and maturities of available-for-sale investments 204 207 214
Sales, paydowns and maturities (purchases) of short-term investments, net 98 76 (186)
(Payments) proceeds for derivative settlements 0 (1) (38)
Net cash provided (used) by investing activities 25 287 767
Cash flows from financing activities:      
Proceeds from investment agreements 0 0 7
Principal paydowns of investment agreements (16) (5) (12)
Dividends paid 0 0 (409)
Principal paydowns of long-term debt (45) (1) 0
Net cash provided (used) by financing activities (79) (132) (542)
Reconciliation of net income (loss) to net cash provided (used) by operating activities:      
Net Income (Loss) (177) 435 477
Change in:      
Net realized investment (gains) losses 6 3 76
Net (gains) losses on financial instruments at fair value and foreign exchange 26 65 41
Other net realized (gains) losses (7) 13 29
Other operating (8) (17) 27
Total adjustments to income (loss) from continuing operations 219 265 289
Net cash provided (used) by operating activities 38 (176) (195)
Parent Company [Member]      
Cash flows from operating activities:      
Investment income received 8 7 369
Operating expenses paid and other operating (11) (9) (16)
Interest paid, net of interest converted to principal (67) (68) (72)
Income taxes (paid) received 2 2 1
Net cash provided (used) by operating activities (68) (68) 282
Cash flows from investing activities:      
Purchases of available-for-sale investments (136) (27) (67)
Sales of available-for-sale investments 0 0 289
Paydowns and maturities of available-for-sale investments 30 51 65
Sales, paydowns and maturities (purchases) of short-term investments, net 179 54 (380)
(Payments) proceeds for derivative settlements 0 (1) (38)
Return of capital from subsidiaries, net 61 53 295
Net cash provided (used) by investing activities 134 130 164
Cash flows from financing activities:      
Proceeds from investment agreements 0 0 7
Principal paydowns of investment agreements (16) (5) (12)
Dividends paid 0 0 (409)
Principal paydowns of long-term debt (45) (1) 0
Payments for affiliate loans 0 (62) (15)
Restricted stock awards settlements, net of purchases of treasury stock (3) 5 0
Net cash provided (used) by financing activities (64) (63) (429)
Net increase (decrease) in cash and cash equivalents 2 (1) 17
Cash and cash equivalents - beginning of year 32 33 16
Cash and cash equivalents - end of year 34 32 33
Reconciliation of net income (loss) to net cash provided (used) by operating activities:      
Net Income (Loss) (177) (447) (491)
Change in:      
Intercompany accounts receivable (4) 0 (20)
Equity in earnings of subsidiaries 109 401 395
Dividends from subsidiaries 0 0 352
Net realized investment (gains) losses 0 0 32
Net (gains) losses on financial instruments at fair value and foreign exchange 14 (8) (4)
Other net realized (gains) losses 0 (2) (1)
Other operating (10) (12) 19
Total adjustments to income (loss) from continuing operations 109 379 773
Net cash provided (used) by operating activities $ (68) $ (68) $ 282
v3.25.4
Schedule II - (Notes to Condensed Financial Statements) (Detail) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Condensed Financial Statements, Captions [Line Items]    
Long-term debt principal amount purchased $ 308  
Preferred stock shares outstanding 0 0
MBIA Inc. Senior Notes [Member]    
Condensed Financial Statements, Captions [Line Items]    
Long-term debt, interest rate 5.70% 5.70%
Long-term debt, maturity year 2034 2034
6.625% Senior Notes due 2028 [Member]    
Condensed Financial Statements, Captions [Line Items]    
Debt Instrument, Face Amount $ 29  
Long-term debt, interest rate 6.625%  
Long-term debt, maturity year 2028  
MBIA Corp Surplus Notes [Member] | Mbia Inc. Debentures [Member]    
Condensed Financial Statements, Captions [Line Items]    
Long-term debt principal amount purchased $ 13  
National [Member]    
Condensed Financial Statements, Captions [Line Items]    
Dividends from subsidiaries $ 63 $ 69
MBIA Insurance Corporation [Member] | Held by MBIA Inc. [Member]    
Condensed Financial Statements, Captions [Line Items]    
Preferred stock shares outstanding 1,444  
MBIA Insurance Corporation [Member] | Preferred Stock [Member]    
Condensed Financial Statements, Captions [Line Items]    
Shares repurchased under share repurchase program, average price per share $ 10,900  
Face value of repurchased preferred stock 10.90%  
v3.25.4
Schedule IV - (Reinsurance) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract]      
Direct Amount $ 3 $ 4 $ 5
Ceded to Others 0 0 0
Assumed from Other Companies 0 0 0
Net Amount $ 3 $ 4 $ 5
Percentage of Amount Assumed to Net 0.00% 0.00% 0.00%