MBIA INC, 10-Q filed on 5/7/2026
Quarterly Report
v3.26.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2026
Apr. 30, 2026
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0000814585  
Current Fiscal Year End Date --12-31  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Mar. 31, 2026  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Trading Symbol MBI  
Entity Registrant Name MBIA INC.  
Entity Filer Category Non-accelerated Filer  
Entity Emerging Growth Company false  
Entity Small Business true  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   50,934,039
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  
v3.26.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Investments:    
Assets held for sale $ 0 $ 8
Total assets 1,979 2,013
Liabilities:    
Liabilities held for sale 0 6
Total liabilities 4,257 4,243
Commitments and contingencies (Refer to Note 12: Commitments and Contingencies)
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 2,420 2,450
Retained earnings (deficit) (1,808) (1,768)
Accumulated other comprehensive income (loss), net of tax of $7 and $7 (103) (95)
Treasury stock, at cost--232,252,593 and 232,675,865 shares (3,075) (3,107)
Total shareholders' equity of MBIA Inc. (2,283) (2,237)
Preferred stock of subsidiary and noncontrolling interests 5 7
Total equity (2,278) (2,230)
Total liabilities and equity 1,979 2,013
Non Variable Interest Entity [Member]    
Investments:    
Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $1,191 and $1,163) 1,060 1,042
Investments carried at fair value 222 223
Short-term investments, at fair value (amortized cost $363 and $409) 363 409
Other investments at amortized cost 1 1
Total investments 1,646 1,675
Cash and cash equivalents 70 69
Premiums receivable (net of allowance for credit losses of $- and $- ) 120 121
Deferred acquisition costs 23 24
Insurance loss recoverable 47 43
Assets held for sale 0 8
Other assets 37 37
Liabilities:    
Unearned premium revenue 166 172
Loss and loss adjustment expense reserves 437 454
Long-term debt 2,879 2,843
Medium-term notes (includes financial instruments carried at fair value of $43 and $46) 472 472
Investment agreements 173 174
Liabilities held for sale 0 6
Other liabilities 79 73
Variable Interest Entity, Primary Beneficiary [Member]    
Investments:    
Cash 2 2
Loans receivable at fair value 34 34
Liabilities:    
Other liabilities 20 17
Variable interest entity debt (includes financial instruments carried at fair value of $24 and $25) $ 31 $ 32
v3.26.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Fixed-maturity securities held as available-for-sale, amortized cost $ 1,489  
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 232,252,593 232,675,865
Non Variable Interest Entity [Member]    
Fixed-maturity securities held as available-for-sale, amortized cost $ 1,191 $ 1,163
Short-term investments, amortized cost 363 409
Premiums receivable (net of allowance for credit losses) 0 0
Medium-term notes, financial instruments carried at fair value 43 46
Variable Interest Entity, Primary Beneficiary [Member]    
Variable interest entity debt (includes financial instruments carried at fair value) $ 24 $ 25
v3.26.1
Consolidated Statements Of Operations - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Revenues:    
Net realized investment gains (losses) $ (0) $ (5)
Net gains (losses) on financial instruments at fair value and foreign exchange 0 (15)
Total revenues 24 [1] 14 [2]
Expenses:    
Losses and loss adjustment (3) 8
Interest 47 50
Total expenses 65 76
Income (loss) from continuing operations before income taxes (41) (62)
Provision (benefit) for income taxes 0 0
Income (loss) from continuing operations (41) (62)
Income (loss) from discontinued operations, net of income taxes (1) 0
Net income (loss) (42) (62)
Less: Net income (loss) attributable to noncontrolling interests (2) 0
Net income (loss) attributable to MBIA Inc. $ (40) $ (62)
Net income (loss) per common share attributable to MBIA Inc. - basic and diluted    
Continuing operations - basic $ (0.79) $ (1.28)
Continuing operations - diluted (0.79) (1.28)
Discontinued operations - basic (0.01) 0
Discontinued operations - diluted (0.01) (0)
Net income (loss) per common share attributable to MBIA Inc. - basic (0.8) (1.28)
Net income (loss) per common share attributable to MBIA Inc. - diluted $ (0.8) $ (1.28)
Weighted average number of common shares outstanding:    
Basic [3] 49,796,216 48,354,307
Diluted [3] 49,796,216 48,354,307
Non Variable Interest Entity [Member]    
Revenues:    
Premiums earned (net of ceded premiums of $-, and $-) $ 6 $ 8
Net investment income 18 18
Net realized investment gains (losses) 0 (5)
Net gains (losses) on financial instruments at fair value and foreign exchange 0 (15)
Fees and reimbursements 1 1
Other net realized gains (losses) (1) 0
Expenses:    
Losses and loss adjustment (3) 8
Amortization of deferred acquisition costs 1 1
Operating 16 16
Interest 47 50
Variable Interest Entity, Primary Beneficiary [Member]    
Revenues:    
Other net realized gains (losses) 0 7
Expenses:    
Operating $ 4 $ 1
[1] Includes net investment income of $15 million, $6 million, $3 million, and ($6) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.
[2] Includes net investment income of $15 million, $7 million, $3 million, and ($7) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.
[3] Includes approximately 1 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the three months ended March 31, 2026 and 2025.
v3.26.1
Consolidated Statements Of Operations (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Financial Guarantee Insurance Segment [Member]    
Ceded premiums earned $ 0 $ 0
v3.26.1
Consolidated Statements Of Comprehensive Income (Loss) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Statements of Comprehensive Income (Loss)    
Net income (loss) $ (42) $ (62)
Available-for-sale securities with no credit losses:    
Unrealized gains (losses) arising during the period (9) 17
Reclassification adjustments for (gains) losses included in net income (loss) 0 7
Foreign currency translation:    
Reclassification adjustments for (gains) losses included in net income (loss) 0 5
Instrument-specific credit risk of liabilities measured at fair value:    
Unrealized gains (losses) arising during the period 1 0
Total other comprehensive income (loss) (8) 29
Comprehensive income (loss) (50) (33)
Less: Comprehensive income (loss) attributable to noncontrolling interests (2) 0
Comprehensive income (loss) attributable to MBIA Inc. $ (48) $ (33)
v3.26.1
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)   283,186,115              
Balance (in preferred stock shares)               1,315  
Total equity balance at Dec. 31, 2024   $ 283 $ 2,492 $ (1,591) $ (128) $ (3,145) $ (2,089)   $ 13
Balance (in treasury stock shares) at Dec. 31, 2024           (232,215,934)      
Balance (in preferred stock shares) at Dec. 31, 2024               1,315  
Share-based compensation     (32)            
Net income (loss) attributable to MBIA Inc. $ (62)     (62)          
Other comprehensive income (loss) 29       29        
Other           $ 28      
Other (in shares)           (599,556)      
Period change             (37)   0
Total equity balance at Mar. 31, 2025 $ (2,113) $ 283 2,460 (1,653) (99) $ (3,117) (2,126)   13
Balance (in treasury stock shares) at Mar. 31, 2025           (232,815,490)      
Balance (in common stock shares) at Mar. 31, 2025   283,186,115              
Balance (in common stock shares)   283,186,115              
Balance (in preferred stock shares)               1,315  
Balance (in common stock shares) 283,186,115 283,186,115              
Balance (in preferred stock shares) 0             1,315  
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 preferred stock shares) at Dec. 31, 2025 0             1,315  
Share-based compensation     (30)            
Net income (loss) attributable to MBIA Inc. $ (40)     (40)          
Other comprehensive income (loss) (8)       (8)        
Other           $ 32      
Other (in shares)           423,272      
Period change             (46)   (2)
Total equity balance at Mar. 31, 2026 $ (2,278) $ 283 $ 2,420 $ (1,808) $ (103) $ (3,075) $ (2,283)   $ 5
Balance (in treasury stock shares) at Mar. 31, 2026 (232,252,593)         (232,252,593)      
Balance (in common stock shares) at Mar. 31, 2026 283,186,115 283,186,115              
Balance (in common stock shares) 283,186,115 283,186,115              
Balance (in preferred stock shares) 0             1,315  
v3.26.1
Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Cash flows from operating activities:    
Premiums, fees and reimbursements received $ 2 $ 3
Investment income received 11 13
Financial guarantee losses and loss adjustment expenses paid (21) (21)
Proceeds from recoveries and reinsurance, net of salvage paid to reinsurers 5 3
Operating expenses paid and other operating (21) (32)
Interest paid, net of interest converted to principal (8) (9)
Cash (used) by discontinued operations (1) 0
Net cash provided (used) by operating activities (33) (43)
Cash flows from investing activities:    
Purchases of available-for-sale investments (83) (137)
Sales of available-for-sale investments 0 62
Paydowns, maturities and other proceeds of available-for-sale investments 68 29
Purchases of investments at fair value (15) (11)
Sales, paydowns, maturities and other proceeds of investments at fair value 16 22
Sales, paydowns and maturities (purchases) of short-term investments, net 48 66
Other investing 1 1
Proceeds from discontinued operations 2 0
Net cash provided (used) by investing activities 37 32
Cash flows from financing activities:    
Principal paydowns of variable interest entity debt (2) (6)
Purchases of treasury stock (1) (7)
Net cash provided (used) by financing activities (3) (13)
Net increase (decrease) in cash and cash equivalents 1 (24)
Cash and cash equivalents - beginning of period 71 87
Cash and cash equivalents - end of period 72 63
Reconciliation of net income (loss) to net cash provided (used) by operating activities:    
Net income (loss) (42) (62)
Income (loss) from discontinued operations, net of income taxes (1) 0
Income (loss) from continuing operations (41) (62)
Change in:    
Unearned premium revenue (6) (7)
Loss and loss adjustment expense reserves (17) (5)
Insurance loss recoverable (4) (6)
Accrued interest payable 40 42
Other assets and liabilities (9) (19)
Net realized investment (gains) losses 0 5
Net (gains) losses on financial instruments at fair value and foreign exchange 0 15
Other net realized (gains) losses 1 (7)
Other operating 3 1
Total adjustments to income (loss) from continuing operations 8 19
Net cash provided (used) by operating activities (33) (43)
Non-cash financing activities:    
Variable interest entity debt extinguishment $ 0 $ 7
v3.26.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Pay vs Performance Disclosure    
Net Income (Loss) $ (40) $ (62)
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2026
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
v3.26.1
Business Developments and Risks and Uncertainties
 3 Months Ended
Mar. 31, 2026
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 9: Business Segments” for further information about the Company’s operating segments.

Change in Filer Status

Based on the Company's filer status determination pursuant to Rule 12b-2 of the Exchange Act as of June 30, 2025, using the Company's public float as of that date and total revenues for the year ended December 31, 2024, the Company determined that it qualifies as a smaller reporting company and a non-accelerated filer. As a result, the Company will be subject to the applicable reporting requirements for these classifications, including eligibility for scaled disclosure requirements, an exemption from the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, and an extended filing timeline for certain reports. This change in filer status is effective beginning with this Form 10-Q for the quarterly period ended March 31, 2026. The Company is currently evaluating the extent to which it will utilize the scaled disclosure accommodations available to it as a smaller reporting company and non-accelerated filer in its future filings.

Business Developments

PREPA

On January 1, 2026, 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 $11 million. As of March 31, 2026, National had $554 million of insured debt service outstanding related to PREPA.

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 Claim (the "Administrative Claim Motion"). 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 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 Claim Motion 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 Claim Motion litigation and required they file 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 Claim 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. On March 16, 2026, the Court denied the Bondholders' Administrative Claim Motion. Bondholders filed a notice of appeal on March 27, 2026 to the First Circuit Court of Appeals. 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 (Unaudited)

 

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

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 5: Loss and Loss Adjustment Expense Reserves” for additional information of the Company’s PREPA reserves and recoveries.

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. 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”). During the three months ended March 31, 2026, the Company disposed its remaining net assets held for sale.

There still remains significant uncertainty with respect to the realizable value of the remaining loans to and equity interest of the portfolio company recorded as an investment and the litigation trust. Further, as the monetization process continues, and new information concerning the financial condition of the remaining portfolio company recorded as an investment is disclosed, the Company will continue to revise its expectations for recoveries.

Discontinued Operations

As of March 31, 2026 and December 31, 2025, the assets and liabilities of entities classified as discontinued operations 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 three months ended March 31, 2026 and 2025. During the three months ended March 31, 2026, the remaining 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 generally consistent with 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

 

March 31, 2026

 

December 31, 2025

Assets held for sale

 

 

 

 

 

 

 

 

Accounts receivable

 

$

-

 

 

$

2

 

Goodwill

 

 

-

 

 

 

11

 

Other assets

 

 

-

 

 

 

1

 

Loss on disposal group

 

 

-

 

 

 

(6

)

Total assets held for sale

 

$

-

 

 

$

8

 

Liabilities held for sale

 

 

 

 

 

 

 

 

Accounts payable

 

$

-

 

 

$

1

 

Debt

 

 

-

 

 

 

-

 

Accrued expenses and other

 

 

-

 

 

 

5

 

Total liabilities held for sale

 

$

-

 

 

$

6

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

 

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

 

The results of operations from discontinued operations for the three months ended March 31, 2026 and 2025 consist of the following:

 

 

Three Months Ended March 31,

 

In millions

 

2026

 

 

2025

 

Revenues:

 

 

 

 

 

 

Revenues

$

1

 

 

$

3

 

 

Cost of sales

 

1

 

 

 

1

 

 

     Total revenues from discontinued operations

 

-

 

 

 

2

 

Expenses:

 

 

 

 

 

 

Operating

 

-

 

 

 

1

 

 

Increase (decrease) on loss on disposal group

 

1

 

 

 

1

 

 

     Total expenses from discontinued operations

 

1

 

 

 

2

 

Income (loss) before income taxes from discontinued operations

 

 

(1

)

 

 

-

 

Provision (benefit) for income taxes from discontinued operations

 

 

-

 

 

 

-

 

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

 

$

(1

)

 

$

-

 

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 above “Business Developments - PREPA” section for additional 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.

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.

 

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

 

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

 

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 5: Loss and Loss Adjustment Expense Reserves” for additional information about MBIA Corp.’s recoveries.
v3.26.1
Significant Accounting Policies
 3 Months Ended
Mar. 31, 2026
Text Block [Abstract]  
Significant Accounting Policies

Note 2: Significant Accounting Policies

The Company has disclosed its significant accounting policies in “Note 2: Significant Accounting Policies” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The following significant accounting policies provide an update to those included in the Company’s Annual Report on Form 10-K.

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and, accordingly, do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual periods. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2025. The accompanying consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board (U.S.), but in the opinion of management such financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company’s consolidated financial position and results of operations. All material intercompany balances and transactions have been eliminated.

The preparation of financial statements 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.

The results of operations for the three months ended March 31, 2026 may not be indicative of the results that may be expected for the year ending December 31, 2026. The December 31, 2025 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP for annual periods.

 
v3.26.1
Recent Accounting Pronouncements
 3 Months Ended
Mar. 31, 2026
Text Block [Abstract]  
Recent Accounting Pronouncements

Note 3: Recent Accounting Pronouncements

Recently Adopted Accounting Standards

The Company has not adopted any 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 Accounting Standards Update 2024-03 ("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.
v3.26.1
Variable Interest Entities
 3 Months Ended
Mar. 31, 2026
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”), which are evaluated initially and on an ongoing basis to determine if they are VIEs. 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.

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.

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 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 (Unaudited)

 

Note 4: Variable Interest Entities (continued)

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 first quarter of 2026 and 2025, the Company had no additional consolidations or deconsolidations of VIEs. 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.

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 March 31, 2026 and December 31, 2025. 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.
 

March 31, 2026

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

$

714

$

28

$

4

$

22

$

3

$

229

Consumer asset-backed

52

-

-

-

-

-

Corporate asset-backed

205

-

1

-

1

-

Total global structured finance

971

28

5

22

4

229

Global public finance

181

-

3

-

2

-

Total insurance

$

1,152

$

28

$

8

$

22

$

6

$

229

 

 

 

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

 

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)
v3.26.1
Loss and Loss Adjustment Expense Reserves
 3 Months Ended
Mar. 31, 2026
Text Block [Abstract]  
Loss and Loss Adjustment Expense Reserves

Note 5: Loss and Loss Adjustment Expense Reserves

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.

International and Structured Finance Insurance

The international and structured finance insurance segment’s case basis reserves and recoverables recorded in accordance with GAAP do not include amounts related to 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 loans. The Company calculated RMBS case basis reserves as of March 31, 2026 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 include historic averages of deal specific voluntary prepayment rates, forward projections of the secured overnight financing rate, and historic averages of deal-specific loss severities. Where applicable, the Company factors in termination scenarios when clean up calls are imminent.

In calculating estimated expected losses for RMBS, the Company projects the amount of loans that are expected to be liquidated in the future through foreclosure or short sale. The time to liquidation for a defaulted loan is specific to the loan’s delinquency bucket.

Cash flow models consider prioritized allocations and other structural aspects and claims against MBIA Corp.’s insurance policies consistent with such policies' 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 paying 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 actual losses may differ from 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.

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 5: Loss and Loss Adjustment Expense Reserves (continued)

RMBS Recoveries

The Company’s RMBS recoveries relate to structural features within the trusts 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.

Summary of Loss and LAE Reserves and Recoveries

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

 

 

 

 

As of March 31, 2026

 

 

As of December 31, 2025

 

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

$

25

 

 

$

208

 

 

$

22

 

 

$

219

 

International and Structured Finance Insurance:

 

 

 

 

 

 

 

 

 

 

 

 

Before VIE eliminations

 

22

 

 

 

223

 

 

 

21

 

 

 

229

 

 

VIE eliminations

 

-

 

 

 

6

 

 

 

-

 

 

 

6

 

 

 

Total international and structured finance insurance

 

22

 

 

 

229

 

 

 

21

 

 

 

235

 

 

Total

$

47

 

 

$

437

 

 

$

43

 

 

$

454

 

 

___________________

(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 table presents changes in the Company’s loss and LAE reserves for the three months ended March 31, 2026. Changes in loss and LAE reserves, with the exception of loss and LAE payments, are recorded in “Losses and loss adjustment” expenses in the Company’s consolidated statements of operations. As of March 31, 2026 and December 31, 2025, the weighted average risk-free rates used to discount the Company’s loss reserves (claim liability) were 4.16% and 3.79%, respectively. LAE reserves are generally expected to be settled within a one-year period and are not discounted. As of March 31, 2026 and December 31, 2025, the Company’s gross loss and LAE reserves included $14 million and $15 million, respectively, related to LAE.

 

In millions

 

 

Changes in Loss and LAE Reserves for the Three Months Ended March 31, 2026

 

 

 

 

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

 

 

March 31,

 

2025

 

 

Payments

 

 

Discount

 

 

Rates

 

 

Assumptions (1)

 

 

Revenue

 

 

2026

 

$

454

 

 

$

(21

)

 

$

4

 

 

$

(7

)

 

$

6

 

 

$

1

 

 

$

437

 

___________________

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

The decrease in the Company’s loss and LAE reserves was primarily due to claim payments and an increase in risk-free rates which caused future liabilities, net of recoveries, to decline primarily on the Company's insured RMBS transactions. These decreases were partially offset by accretion and the reclassification of lease-backed recoveries on paid claims.

 

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 5: 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 table presents changes in the Company’s insurance loss recoverable for the three months ended March 31, 2026. Changes in insurance loss recoverable with the exception of collections, are recorded in “Losses and loss adjustment” expenses in the Company’s consolidated statements of operations.

 

 

 

 

 

 

 

 

Changes in Insurance Loss Recoverable

 

 

 

 

 

 

 

 

 

for the Three Months Ended March 31, 2026

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

Recoverable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recoverable

 

 

 

 

 

as of

 

 

 

 

 

Accretion

 

 

Changes in

 

 

 

 

 

as of

 

 

 

 

 

December 31,

 

 

Collections

 

 

of

 

 

Discount

 

 

Changes in

 

 

March 31,

 

In millions

 

 

2025

 

 

for Cases

 

 

Recoveries

 

 

Rates

 

 

Assumptions

 

 

2026

 

Insurance loss recoverable

 

 

$

43

 

 

$

(3

)

 

$

-

 

 

$

(1

)

 

$

8

 

 

$

47

 

 

 

The increase in the Company’s insurance loss recoverable was primarily due to the reclassification of lease-backed recoveries on paid claims from loss and LAE. This increase was partially offset by collections of recoveries.

Loss and LAE Activity

For the three months ended March 31, 2026, the incurred benefit primarily related to an increase in risk-free rates which caused future liabilities, net of recoveries, to decline primarily on the Company's insured RMBS transactions. This benefit was partially offset by accretion.

For the three months ended March 31, 2025, the incurred loss primarily related to a decline in risk-free rates which caused future liabilities, net of recoveries, to increase and accretion on the Company's insured RMBS transactions.

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 the three months ended March 31, 2026 and 2025, LAE related to remediating insured obligations was $2 million and $1 million, respectively.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

 

Note 5: Loss and Loss Adjustment Expense Reserves (continued)

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 March 31, 2026:

 

 

 

 

 

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)

 

 

3.3

 

 

 

-

 

 

 

-

 

 

 

6.0

 

 

 

5.4

 

Gross insured contractual payments outstanding: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

$

348

 

 

$

-

 

 

$

-

 

 

$

1,308

 

 

$

1,656

 

 

 

Interest

 

 

1,028

 

 

 

-

 

 

 

-

 

 

 

453

 

 

 

1,481

 

 

 

 

Total

 

$

1,376

 

 

$

-

 

 

$

-

 

 

$

1,761

 

 

$

3,137

 

Gross Claim Liability (3)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

762

 

 

$

762

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Potential Recoveries (4)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

279

 

 

 

279

 

 

Discount, net (5)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

100

 

 

 

100

 

Net claim liability (recoverable)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

383

 

 

$

383

 

Unearned premium revenue

 

$

-

 

 

$

-

 

 

$

-

 

 

$

7

 

 

$

7

 

Reinsurance recoverable on paid and unpaid losses (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

15

 

 

(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 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 (Unaudited)

 

Note 5: 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, 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 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 (Unaudited)
v3.26.1
Fair Value Of Financial Instruments
 3 Months Ended
Mar. 31, 2026
Text Block [Abstract]  
Fair Value Of Financial Instruments

Note 6: 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, medium-term notes ("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, mortgage-backed securities ("MBS"), asset-backed securities, money market securities, equity investments and loans carried at fair value.

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 (Unaudited)

 

Note 6: 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 March 31, 2026 and December 31, 2025 had outstanding notional amounts of $27 million and $28 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 measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025:

 

 

 

Fair Value as of

 

 

 

 

 

 

Range

 

 

 

March 31,

 

 

 

 

 

 

(Weighted

In millions

 

2026

 

 

Valuation Techniques

 

Unobservable Input

 

Average)

Assets:

 

 

 

 

 

 

 

 

 

 

Equity Investments

 

$

34

 

 

Discounted cash flow

 

Discount rate (1)

 

 

 

 

 

 

 

 

 

 

EBITDA multiple (1)

 

 

 

 

 

 

 

 

Type certificate

 

Discount rate (1)

 

 

 

 

 

 

 

 

 

 

EBITDA royalty share (1)

 

 

 

Loans carried at fair value

 

 

18

 

 

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 (Unaudited)

 

Note 6: Fair Value of Financial Instruments (continued)

 

 

 

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 multiples, 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 (Unaudited)

 

Note 6: 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 March 31, 2026 and December 31, 2025:

 

 

 

 

 

 

 

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

 

 

March 31,

 

 

In millions

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

2026

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency

 

$

438

 

 

$

-

 

 

$

-

 

 

$

438

 

 

 

State and municipal bonds

 

 

-

 

 

 

99

 

 

 

-

 

 

99

 

 

 

Foreign governments

 

 

-

 

 

 

5

 

 

 

-

 

 

5

 

 

 

Corporate obligations

 

 

-

 

 

 

454

 

 

 

19

 

(1)

 

473

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

-

 

 

 

111

 

 

 

-

 

 

111

 

 

 

 

Residential mortgage-backed non-agency

 

 

-

 

 

 

22

 

 

 

-

 

 

22

 

 

 

 

Commercial mortgage-backed

 

 

-

 

 

 

16

 

 

 

-

 

 

16

 

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

-

 

 

 

82

 

 

 

-

 

 

82

 

 

 

 

Other asset-backed

 

 

-

 

 

 

238

 

 

 

-

 

 

238

 

 

 

 

 

Total fixed-maturity investments

 

 

438

 

 

 

1,027

 

 

 

19

 

 

 

1,484

 

 

Money market securities

 

 

65

 

 

 

-

 

 

 

-

 

 

 

65

 

 

Equity investments

 

 

46

 

 

 

6

 

 

 

34

 

 

 

96

 

(2)

Cash and cash equivalents

 

 

70

 

 

 

-

 

 

 

-

 

 

 

70

 

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

 

2

 

 

 

-

 

 

 

-

 

 

 

2

 

 

 

Loans receivable at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential loans receivable

 

 

-

 

 

 

-

 

 

 

34

 

 

 

34

 

 

Total assets

 

$

621

 

 

$

1,033

 

 

$

87

 

 

$

1,751

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Medium-term notes

 

$

-

 

 

$

-

 

 

$

43

 

$

43

 

 

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable interest entity notes

 

 

-

 

 

 

-

 

 

 

24

 

 

 

24

 

 

 

Currency derivatives

 

 

-

 

 

 

-

 

 

 

12

 

 

 

12

 

 

Total liabilities

 

$

-

 

 

$

-

 

 

$

79

 

 

$

79

 

 

 

(1) - Includes loans carried at fair value of $18 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 (Unaudited)

 

Note 6: 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)

 

 

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.

 

Level 3 assets at fair value as of March 31, 2026 and December 31, 2025 represented approximately 5% of total assets measured at fair value. Level 3 liabilities at fair value as of March 31, 2026 and December 31, 2025 represented approximately 100% of total liabilities measured at fair value.

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

 

Note 6: 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 March 31, 2026 and December 31, 2025. 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

 

 

March 31,

 

 

March 31,

 

 

In millions

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

2026

 

 

2026

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

 

$

-

 

 

$

-

 

 

$

1

 

 

$

1

 

 

$

1

 

 

Total assets

 

$

-

 

 

$

-

 

 

$

1

 

 

$

1

 

 

$

1

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

$

-

 

 

$

235

 

 

$

-

 

 

$

235

 

 

$

2,879

 

 

 

Medium-term notes

 

 

-

 

 

 

-

 

 

 

274

 

 

 

274

 

 

 

427

 

(1)

 

Investment agreements

 

 

-

 

 

 

-

 

 

 

183

 

 

 

183

 

 

 

173

 

 

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable interest entity loans payable

 

 

-

 

 

 

-

 

 

 

7

 

 

 

7

 

 

 

7

 

 

Total liabilities

 

$

-

 

 

$

235

 

 

$

464

 

 

$

699

 

 

$

3,486

 

 

Financial Guarantees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross liability (recoverable)

 

$

-

 

 

$

-

 

 

$

750

 

 

$

750

 

 

$

556

 

 

 

Ceded recoverable (liability)

 

 

-

 

 

 

-

 

 

 

16

 

 

 

16

 

 

 

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 March 31, 2026, 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)

 

 

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.

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

 

Note 6: 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 three months ended March 31, 2026 and 2025:

 

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended March 31, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in

 

 

Change in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

 

Gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Losses) for

 

 

(Losses) for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the Period

 

 

the Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in

 

 

Included in

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

OCI

 

 

 

 

 

 

Gains /

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

for Assets

 

 

for Assets

 

 

 

 

 

 

(Losses)

 

 

Gains /

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

still held

 

 

still held

 

 

 

Balance,

 

 

Included

 

 

(Losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfers

 

 

Transfers

 

 

 

 

 

as of

 

 

as of

 

 

 

Beginning

 

 

in

 

 

Included

 

 

 

 

 

 

 

 

 

 

 

 

 

 

into

 

 

out of

 

 

Ending

 

 

March 31,

 

 

March 31,

 

In millions

 

of Period

 

 

Earnings

 

 

in OCI(1)

 

 

Purchases

 

 

Issuances

 

 

Settlements

 

 

Sales

 

 

Level 3

 

 

Level 3

 

 

Balance

 

 

2026

 

 

2026(1)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate obligations

 

$

18

 

 

$

-

 

 

$

-

 

 

$

1

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

19

 

(3)

$

-

 

 

$

-

 

Equity investments

 

 

33

 

 

 

1

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

34

 

 

 

1

 

 

 

-

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable -
  residential

 

 

34

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

34

 

 

 

-

 

 

 

-

 

Total assets

 

$

85

 

 

$

1

 

 

$

-

 

 

$

1

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

87

 

 

$

1

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfers

 

 

Transfers

 

 

 

 

 

as of

 

 

as of

 

 

 

Beginning

 

 

in

 

 

in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

into

 

 

out of

 

 

Ending

 

 

March 31,

 

 

March 31,

 

In millions

 

of Period

 

 

Earnings

 

 

in OCI(2)

 

 

Purchases

 

 

Issuances

 

 

Settlements

 

 

Sales

 

 

Level 3

 

 

Level 3

 

 

Balance

 

 

2026

 

 

2026(2)

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medium-term notes

 

$

46

 

 

$

(2

)

 

$

(1

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

43

 

 

$

(2

)

 

$

(1

)

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VIE notes

 

 

25

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

24

 

 

 

-

 

 

 

-

 

Currency derivatives

 

 

12

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

12

 

 

 

-

 

 

 

-

 

Total liabilities

 

$

83

 

 

$

(2

)

 

$

(1

)

 

$

-

 

 

$

-

 

 

$

(1

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

79

 

 

$

(2

)

 

$

(1

)

 

(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 $18 million.

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

 

Note 6: Fair Value of Financial Instruments (continued)

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended March 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

 

 

March 31,

 

 

March 31,

 

In millions

 

of Period

 

 

Earnings

 

 

in OCI(1)

 

 

Purchases

 

 

Issuances

 

 

Settlements

 

 

Sales

 

 

Level 3

 

 

Level 3

 

 

Balance

 

 

2025

 

 

2025(1)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate obligations

 

$

16

 

 

$

(1

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

15

 

(3)

$

(1

)

 

$

-

 

Equity investments

 

 

52

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

52

 

 

 

-

 

 

 

-

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable-
  residential

 

 

28

 

 

 

2

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

30

 

 

 

2

 

 

 

-

 

Total assets

 

$

96

 

 

$

1

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

97

 

 

$

1

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

March 31,

 

 

March 31,

 

In millions

 

of Period

 

 

Earnings

 

 

in OCI(2)

 

 

Purchases

 

 

Issuances

 

 

Settlements

 

 

Sales

 

 

Level 3

 

 

Level 3

 

 

Balance

 

 

2025

 

 

2025(2)

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medium-term notes

 

$

35

 

 

$

2

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

37

 

 

$

2

 

 

$

-

 

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VIE notes

 

 

31

 

 

 

2

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(6

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

27

 

 

 

-

 

 

 

-

 

Currency
  derivatives

 

 

6

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6

 

 

 

-

 

 

 

-

 

Total liabilities

 

$

72

 

 

$

4

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

(6

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

70

 

 

$

2

 

 

$

-

 

 

(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 $14 million

 

Gains and losses (realized and unrealized) included in earnings related to Level 3 assets and liabilities for the three months ended March 31, 2026 and 2025 are reported on the Company’s consolidated statements of operations as follows:

 

 

 

 

Three Months Ended March 31, 2026

 

 

Three Months Ended March 31, 2025

 

 

 

 

 

 

 

Change in

 

 

 

 

 

Change in

 

 

 

 

 

 

 

Unrealized

 

 

 

 

 

Unrealized

 

 

 

 

 

 

 

Gains (Losses)

 

 

 

 

 

Gains (Losses)

 

 

 

 

 

 

 

for the

 

 

 

 

 

for the

 

 

 

 

 

 

 

Period Included

 

 

 

 

 

Period Included

 

 

 

 

 

 

 

in Earnings

 

 

 

 

 

in Earnings

 

 

 

 

 

 

 

for Assets

 

 

 

 

 

for Assets

 

 

 

 

 

 

 

and

 

 

 

 

 

and

 

 

 

 

Total Gains

 

 

Liabilities still

 

 

Total Gains

 

 

Liabilities still

 

 

 

 

(Losses)

 

 

held as of

 

 

(Losses)

 

 

held as of

 

 

 

 

Included

 

 

March 31,

 

 

Included

 

 

March 31,

 

In millions

 

in Earnings

 

 

2026

 

 

in Earnings

 

 

2025

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

3

 

 

$

3

 

 

$

(3

)

 

$

(3

)

 

Revenues of consolidated VIEs (1)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2

 

Total

 

$

3

 

 

$

3

 

 

$

(3

)

 

$

(1

)

 

(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.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

 

Note 6: Fair Value of Financial Instruments (continued)

 

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 tables present the effects of derivative instruments on the Company's consolidated statements of operations for the three months ended March 31, 2026 and 2025:

 

In millions

 

 

 

 

 

 

 

 

Derivatives Not Designated

 

 

 

Three Months Ended March 31,

 

as Hedging Instruments

 

Location of Gain (Loss) Recognized in Income on Derivative

 

2026

 

 

2025

 

Interest rate swaps

 

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

 

$

-

 

 

$

1

 

 

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.

The following table presents the gains and (losses) included in the Company's consolidated statements of operations for the three months ended March 31, 2026 and 2025 for financial instruments for which the fair value option was elected:

 

 

 

Three Months Ended March 31,

 

 

In millions

 

2026

 

 

2025

 

 

Investments carried at fair value (1)

 

$

(1

)

 

$

(2

)

 

Loans receivable at fair value:

 

 

 

 

 

 

 

 

Residential mortgage loans (2)

 

 

-

 

 

 

2

 

 

Medium-term notes (1)

 

 

2

 

 

 

(2

)

 

Variable interest entity notes (2)

 

 

-

 

 

 

(2

)

 

___________________

(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/or "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 March 31, 2026 and December 31, 2025 for loans and notes for which the fair value option was elected:

 

 

 

As of March 31, 2026

 

 

As of December 31, 2025

 

 

 

 

 

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)

 

 

54

 

 

 

22

 

 

 

32

 

 

 

55

 

 

 

22

 

 

 

33

 

 

 

Corporate loans - current

 

 

20

 

 

 

18

 

 

 

2

 

 

 

19

 

 

 

17

 

 

 

2

 

 

Total loans receivable at fair value

 

$

86

 

 

$

52

 

 

$

34

 

 

$

86

 

 

$

51

 

 

$

35

 

 

Variable interest entity notes

 

$

38

 

 

$

24

 

 

$

14

 

 

$

39

 

 

$

25

 

 

$

14

 

 

Medium-term notes

 

$

58

 

 

$

43

 

 

$

15

 

 

$

59

 

 

$

46

 

 

$

13

 

 

 

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.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

 

Note 6: Fair Value of Financial Instruments (continued)

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

As of March 31, 2026 and December 31, 2025, the cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option were gains of $20 and $19 million, respectively, reported in accumulated other comprehensive income ("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.
v3.26.1
Investments
 3 Months Ended
Mar. 31, 2026
Text Block [Abstract]  
Investments

Note 7: Investments

Investments, excluding equity instruments, and those elected under the fair value option, primarily consist of debt instruments classified as available-for-sale ("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 March 31, 2026 and December 31, 2025:

 

 

 

 

 

 

March 31, 2026

 

 

 

 

 

 

 

 

 

 

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

 

$

448

 

 

$

-

 

 

$

-

 

 

$

(10

)

 

$

438

 

 

State and municipal bonds

 

 

106

 

 

 

-

 

 

 

2

 

 

 

(9

)

 

 

99

 

 

Foreign governments

 

 

7

 

 

 

-

 

 

 

-

 

 

 

(2

)

 

 

5

 

 

Corporate obligations

 

 

504

 

 

 

-

 

 

 

-

 

 

 

(101

)

 

 

403

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

119

 

 

 

-

 

 

 

-

 

 

 

(11

)

 

 

108

 

 

 

Residential mortgage-backed non-agency

 

 

17

 

 

 

-

 

 

 

1

 

 

 

(1

)

 

 

17

 

 

 

Commercial mortgage-backed

 

 

8

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

8

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

63

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

64

 

 

 

Other asset-backed

 

 

217

 

 

 

-

 

 

 

1

 

 

 

(2

)

 

 

216

 

Total AFS investments

 

$

1,489

 

 

$

-

 

 

$

5

 

 

$

(136

)

 

$

1,358

 

 

 

 

 

 

 

 

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

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

 

Note 7: 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 March 31, 2026. 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

 

$

365

 

 

$

365

 

Due after one year through five years

 

 

216

 

 

 

207

 

Due after five years through ten years

 

 

134

 

 

 

122

 

Due after ten years

 

 

350

 

 

 

251

 

Mortgage-backed and asset-backed

 

 

424

 

 

 

413

 

Total fixed-maturity investments

 

$

1,489

 

 

$

1,358

 

Deposited and Pledged Securities

The fair value of securities on deposit with various regulatory authorities as of March 31, 2026 and December 31, 2025 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 March 31, 2026 and December 31, 2025, the fair value of securities pledged as collateral for these investment agreements were $181 million and $183 million, respectively. The Company’s collateral as of March 31, 2026 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 March 31, 2026 and December 31, 2025:

 

 

 

 

 

 

 

March 31, 2026

 

 

 

 

 

 

 

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

 

$

12

 

 

$

-

 

 

$

95

 

 

$

(10

)

 

$

107

 

 

$

(10

)

 

State and municipal bonds

 

 

12

 

 

 

-

 

 

 

54

 

 

 

(9

)

 

 

66

 

 

 

(9

)

 

Foreign governments

 

 

-

 

 

 

-

 

 

 

5

 

 

 

(2

)

 

 

5

 

 

 

(2

)

 

Corporate obligations

 

 

47

 

 

 

-

 

 

 

287

 

 

 

(101

)

 

 

334

 

 

 

(101

)

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

10

 

 

 

-

 

 

 

87

 

 

 

(11

)

 

 

97

 

 

 

(11

)

 

 

Residential mortgage-backed non-agency

 

5

 

 

 

-

 

 

 

5

 

 

 

(1

)

 

 

10

 

 

 

(1

)

 

 

Commercial mortgage-backed

 

 

1

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1

 

 

 

-

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

62

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

62

 

 

 

-

 

 

 

Other asset-backed

 

 

79

 

 

 

(1

)

 

 

12

 

 

 

(1

)

 

 

91

 

 

 

(2

)

Total AFS investments

 

$

228

 

 

$

(1

)

 

$

545

 

 

$

(135

)

 

$

773

 

 

$

(136

)

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

 

Note 7: Investments (continued)

 

 

 

 

 

 

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

)

 

Gross unrealized losses on AFS investments increased as of March 31, 2026 compared with December 31, 2025 primarily due to higher interest rates and wider 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 March 31, 2026 and December 31, 2025 was 13 and 14 years, respectively. As of March 31, 2026 and December 31, 2025, there were 240 and 247 securities, respectively, that were in an unrealized loss position for a continuous twelve-month period or longer, of which, fair values of 212 and 200 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 March 31, 2026:

 

 

 

AFS Securities

 

Percentage of Fair Value

 

Number of

 

Book Value

 

 

Fair Value

 

 Below Book Value

 

Securities

 

(in millions)

 

 

(in millions)

 

> 5% to 15%

 

 

92

 

 

$

283

 

 

$

254

 

> 15% to 25%

 

 

50

 

 

 

86

 

 

 

69

 

> 25% to 50%

 

 

68

 

 

 

232

 

 

 

145

 

> 50%

 

 

2

 

 

 

-

 

 

 

-

 

Total

 

 

212

 

 

$

601

 

 

$

468

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

 

Note 7: Investments (continued)

As of March 31, 2026, 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 March 31, 2026 that would require the sale of impaired securities.

Credit Losses on Investments

The Company’s fixed-maturity securities for which fair value is less than amortized cost are reviewed quarterly in order to determine whether a credit loss exists. If the Company determines that the declines in the fair value are related to credit loss, the Company will establish an allowance for credit losses and recognize the credit component through earnings. Refer to “Note 8: Investments” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion of the Company’s policy for its determination of credit losses. The Company did not purchase any credit-deteriorated assets or establish an allowance for credit losses for AFS securities for the three months ended March 31, 2026 and 2025.

 

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. The following table provides information about securities held by the Company as of March 31, 2026 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 March 31, 2026.

 

 

 

 

 

 

 

 

Unrealized

 

 

Insurance Loss

 

In millions

 

Fair Value

 

 

Loss

 

 

Reserve (1)

 

Asset-backed

 

$

17

 

 

$

(1

)

 

$

18

 

Corporate obligations

 

 

80

 

 

 

(49

)

 

 

-

 

Total

 

$

97

 

 

$

(50

)

 

$

18

 

___________________

 

(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 three months ended March 31, 2026 and 2025 are as follows:

 

 

 

 

Three Months Ended March 31,

 

In millions

 

2026

 

 

2025

 

Proceeds from sales

 

$

-

 

 

$

62

 

Gross realized gains

 

$

-

 

 

$

1

 

Gross realized losses

 

$

-

 

 

$

(6

)

 

Equity and Trading Investments

Unrealized gains and losses recognized on equity and trading investments held as of the end of each period for the three months ended March 31, 2026 and 2025 are as follows:

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

 

Note 7: Investments (continued)

 

 

Three Months Ended March 31,

In millions

2026

 

 

2025

 

 

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

$

(2

)

 

$

(3

)

 

Less:

 

 

 

 

 

 

 

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

 

-

 

 

 

2

 

 

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

$

(2

)

 

$

(5

)

 
v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8: Income Taxes

The Company’s income taxes and the related effective tax rates for the three months ended March 31, 2026 and 2025 are as follows:

 

 

 

Three Months Ended March 31,

 

In millions

 

 

2026

 

 

 

 

2025

 

Income (loss) from continuing operations before income taxes

 

$

 

(41

)

 

 

$

 

(62

)

Provision (benefit) for income taxes

 

$

 

-

 

 

 

$

 

-

 

Effective tax rate

 

 

 

0.0

%

 

 

 

 

0.0

%

 

For the three months ended March 31, 2026 and 2025, the Company’s effective tax rate applied to its loss from continuing operations before income taxes was lower than the U.S. statutory tax rate due to the full valuation allowance on the changes in its net deferred tax asset.

Deferred Tax Asset, Net of Valuation Allowance

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 March 31, 2026 and December 31, 2025. 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 March 31, 2026, 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 March 31, 2026, 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.
v3.26.1
Business Segments
 3 Months Ended
Mar. 31, 2026
Text Block [Abstract]  
Business Segments

Note 9: 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 (Unaudited)

 

Note 9: Business Segments (continued)

Segments Results

The following tables provide the Company’s segment results for the three months ended March 31, 2026 and 2025:

 

 

 

 

 

Three Months Ended March 31, 2026

 

 

 

 

 

U.S.

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 

 

Public

 

 

 

 

 

and Structured

 

 

 

 

 

 

 

 

 

 

 

Finance

 

 

 

 

 

Finance

 

 

 

 

 

 

 

In millions

 

Insurance

 

 

Corporate

 

 

Insurance

 

 

Eliminations

 

 

Consolidated

 

Revenues (1)

 

$

15

 

 

$

5

 

 

$

4

 

 

$

-

 

 

$

24

 

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

 

 

(2

)

 

 

1

 

 

 

1

 

 

 

-

 

 

 

-

 

Inter-segment revenues (2)

 

 

6

 

 

 

13

 

 

 

1

 

 

 

(20

)

 

 

-

 

 

 

Total revenues (3)

 

 

19

 

 

 

19

 

 

 

6

 

 

 

(20

)

 

 

24

 

Losses and loss adjustment

 

 

2

 

 

 

-

 

 

 

(5

)

 

 

-

 

 

 

(3

)

Compensation and benefits

 

 

-

 

 

 

10

 

 

 

-

 

 

 

-

 

 

 

10

 

Interest

 

 

-

 

 

 

17

 

 

 

36

 

 

 

(6

)

 

 

47

 

Inter-segment service charge

 

 

9

 

 

 

-

 

 

 

3

 

 

 

(12

)

 

 

-

 

Other segment items (4)

 

 

4

 

 

 

3

 

 

 

6

 

 

 

(2

)

 

 

11

 

 

 

Total expenses

 

 

15

 

 

 

30

 

 

 

40

 

 

 

(20

)

 

 

65

 

Income (loss) from continuing operations before income taxes

 

$

4

 

 

$

(11

)

 

$

(34

)

 

$

-

 

 

$

(41

)

Total assets per reportable segment

 

$

1,480

 

 

$

639

 

 

$

661

 

 

$

(801

)

 (5)

$

1,979

 

 

(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 $15 million, $6 million, $3 million, and ($6) 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 deferred acquisition costs ("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 (Unaudited)

 

Note 9: Business Segments (continued)

 

 

 

 

Three Months Ended March 31, 2025

 

In millions

 

U.S. Public Finance Insurance

 

 

Corporate

 

 

International and Structured Finance Insurance

 

 

Eliminations

 

 

Consolidated

 

Revenues (1)

 

$

11

 

 

$

6

 

 

$

5

 

 

$

-

 

 

$

22

 

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

 

 

-

 

 

 

(5

)

 

 

(10

)

 

 

-

 

 

 

(15

)

Revenues of consolidated VIEs

 

 

-

 

 

 

-

 

 

 

7

 

 

 

-

 

 

 

7

 

Inter-segment revenues (2)

 

 

6

 

 

 

15

 

 

 

2

 

 

 

(23

)

 

 

-

 

 

 

Total revenues (3)

 

 

17

 

 

 

16

 

 

 

4

 

 

 

(23

)

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment

 

 

3

 

 

 

-

 

 

 

5

 

 

 

-

 

 

 

8

 

Compensation and benefits

 

 

-

 

 

 

9

 

 

 

-

 

 

 

-

 

 

 

9

 

Interest

 

 

-

 

 

 

18

 

 

 

38

 

 

 

(6

)

 

 

50

 

Inter-segment service charge

 

 

10

 

 

 

-

 

 

 

4

 

 

 

(14

)

 

 

-

 

Other segment items (4)

 

 

4

 

 

 

4

 

 

 

4

 

 

 

(3

)

 

 

9

 

 

 

Total expenses

 

 

17

 

 

 

31

 

 

 

51

 

 

 

(23

)

 

 

76

 

Income (loss) from continuing operations before income taxes

 

$

-

 

 

$

(15

)

 

$

(47

)

 

$

-

 

 

$

(62

)

Total assets per reportable segment

 

$

1,551

 

 

$

685

 

 

$

821

 

 

$

(936

)

(5)

$

2,121

 

Assets held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,132

 

 

(1) - Consists primarily of net premiums earned, net investment income, net realized investment gains (losses) and other net realized gains (losses).

(2) - Primarily represents intercompany service charges and intercompany net investment income.

(3) - Includes net investment income of $15 million, $7 million, $3 million, and ($7) 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.
v3.26.1
Earnings Per Share
 3 Months Ended
Mar. 31, 2026
Text Block [Abstract]  
Earnings Per Share

Note 10: 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 three months ended March 31, 2026 and 2025:

 

 

Three Months Ended March 31,

 

In millions except per share amounts

2026

 

 

2025

 

Basic and diluted earnings per share:

 

 

 

 

 

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

$

(41

)

 

$

(62

)

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

 

(2

)

 

 

-

 

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

 

(39

)

 

 

(62

)

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

 

(1

)

 

 

-

 

Net income (loss) attributable to MBIA Inc.

$

(40

)

 

$

(62

)

Basic and diluted weighted average shares (1)

 

49.8

 

 

 

48.4

 

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

 

 

 

 

 

Continuing operations

$

(0.79

)

 

$

(1.28

)

Discontinued operations

 

(0.01

)

 

 

-

 

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

$

(0.80

)

 

$

(1.28

)

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

 

0.8

 

 

 

0.9

 

 

(1) - Includes approximately 1 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the three months ended March 31, 2026 and 2025.
v3.26.1
Accumulated Other Comprehensive Income
 3 Months Ended
Mar. 31, 2026
Text Block [Abstract]  
Accumulated Other Comprehensive Income

Note 11: Accumulated Other Comprehensive Income

The following table presents the changes in the components of AOCI for the three months ended March 31, 2026:

 

In millions

 

Unrealized Gains (Losses) on AFS Securities, Net

 

 

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

 

 

Total

 

 

Balance, December 31, 2025

 

$

(114

)

 

$

19

 

 

$

(95

)

 

 

Other comprehensive income (loss)

 

 

(9

)

 

 

1

 

 

 

(8

)

 

Balance, March 31, 2026

 

$

(123

)

 

$

20

 

 

$

(103

)

 

The following table presents the details of the reclassifications from AOCI for the three months ended March 31, 2026 and 2025:

 

 

In millions

 

Amounts Reclassified from AOCI

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

Details about AOCI Components

 

2026

 

 

2025

 

 

Affected Line Item on the Consolidated Statements of Operations

Unrealized gains (losses) on AFS securities:

 

 

 

 

 

 

 

 

 

Realized gains (losses) on sale of securities

 

$

-

 

 

$

(7

)

 

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

Total reclassifications for the period

 

$

-

 

 

$

(12

)

 

Net income (loss) attributable to MBIA Inc.
v3.26.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2026
Text Block [Abstract]  
Commitments and Contingencies

Note 12: Commitments and Contingencies

Complete descriptions of the Company's commitments and contingencies are discussed in “Note 18: Commitments and Contingencies” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Refer to “Note 1: Business Developments and Risks and Uncertainties” for updates regarding PREPA's Title III proceedings. There are otherwise no material updates to the Company's commitments and contingencies or legal proceedings pending or, to the knowledge of the Company, threatened, to which the Company or any of its subsidiaries is a party.
v3.26.1
Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2026
Text Block [Abstract]  
Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and, accordingly, do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual periods. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2025. The accompanying consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board (U.S.), but in the opinion of management such financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company’s consolidated financial position and results of operations. All material intercompany balances and transactions have been eliminated.

The preparation of financial statements 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.

The results of operations for the three months ended March 31, 2026 may not be indicative of the results that may be expected for the year ending December 31, 2026. The December 31, 2025 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP for annual periods.
Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

The Company has not adopted any 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 Accounting Standards Update 2024-03 ("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.
v3.26.1
Business Developments and Risks and Uncertainties (Tables)
 3 Months Ended
Mar. 31, 2026
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

 

March 31, 2026

 

December 31, 2025

Assets held for sale

 

 

 

 

 

 

 

 

Accounts receivable

 

$

-

 

 

$

2

 

Goodwill

 

 

-

 

 

 

11

 

Other assets

 

 

-

 

 

 

1

 

Loss on disposal group

 

 

-

 

 

 

(6

)

Total assets held for sale

 

$

-

 

 

$

8

 

Liabilities held for sale

 

 

 

 

 

 

 

 

Accounts payable

 

$

-

 

 

$

1

 

Debt

 

 

-

 

 

 

-

 

Accrued expenses and other

 

 

-

 

 

 

5

 

Total liabilities held for sale

 

$

-

 

 

$

6

 

 
Schedule of Results of Operations from Discontinued Operation

The results of operations from discontinued operations for the three months ended March 31, 2026 and 2025 consist of the following:

 

 

Three Months Ended March 31,

 

In millions

 

2026

 

 

2025

 

Revenues:

 

 

 

 

 

 

Revenues

$

1

 

 

$

3

 

 

Cost of sales

 

1

 

 

 

1

 

 

     Total revenues from discontinued operations

 

-

 

 

 

2

 

Expenses:

 

 

 

 

 

 

Operating

 

-

 

 

 

1

 

 

Increase (decrease) on loss on disposal group

 

1

 

 

 

1

 

 

     Total expenses from discontinued operations

 

1

 

 

 

2

 

Income (loss) before income taxes from discontinued operations

 

 

(1

)

 

 

-

 

Provision (benefit) for income taxes from discontinued operations

 

 

-

 

 

 

-

 

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

 

$

(1

)

 

$

-

 
v3.26.1
Variable Interest Entities (Tables)
 3 Months Ended
Mar. 31, 2026
Text Block [Abstract]  
Summary of Nonconsolidated VIEs Assets and Liabilities

March 31, 2026

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

$

714

$

28

$

4

$

22

$

3

$

229

Consumer asset-backed

52

-

-

-

-

-

Corporate asset-backed

205

-

1

-

1

-

Total global structured finance

971

28

5

22

4

229

Global public finance

181

-

3

-

2

-

Total insurance

$

1,152

$

28

$

8

$

22

$

6

$

229

 

 

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

 

 

 

 

 

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)
v3.26.1
Loss and Loss Adjustment Expense Reserves (Tables)
 3 Months Ended
Mar. 31, 2026
Text Block [Abstract]  
Present Value Of The Probability-Weighted Future Claim Payments And Recoveries

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

 

 

 

 

As of March 31, 2026

 

 

As of December 31, 2025

 

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

$

25

 

 

$

208

 

 

$

22

 

 

$

219

 

International and Structured Finance Insurance:

 

 

 

 

 

 

 

 

 

 

 

 

Before VIE eliminations

 

22

 

 

 

223

 

 

 

21

 

 

 

229

 

 

VIE eliminations

 

-

 

 

 

6

 

 

 

-

 

 

 

6

 

 

 

Total international and structured finance insurance

 

22

 

 

 

229

 

 

 

21

 

 

 

235

 

 

Total

$

47

 

 

$

437

 

 

$

43

 

 

$

454

 

 

___________________

(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 Three Months Ended March 31, 2026

 

 

 

 

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

 

 

March 31,

 

2025

 

 

Payments

 

 

Discount

 

 

Rates

 

 

Assumptions (1)

 

 

Revenue

 

 

2026

 

$

454

 

 

$

(21

)

 

$

4

 

 

$

(7

)

 

$

6

 

 

$

1

 

 

$

437

 

___________________

(1) - Includes changes in amount and timing of estimated payments and recoveries.
Schedule Of Insurance Loss Recoverable

 

 

 

 

 

 

 

Changes in Insurance Loss Recoverable

 

 

 

 

 

 

 

 

 

for the Three Months Ended March 31, 2026

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

Recoverable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recoverable

 

 

 

 

 

as of

 

 

 

 

 

Accretion

 

 

Changes in

 

 

 

 

 

as of

 

 

 

 

 

December 31,

 

 

Collections

 

 

of

 

 

Discount

 

 

Changes in

 

 

March 31,

 

In millions

 

 

2025

 

 

for Cases

 

 

Recoveries

 

 

Rates

 

 

Assumptions

 

 

2026

 

Insurance loss recoverable

 

 

$

43

 

 

$

(3

)

 

$

-

 

 

$

(1

)

 

$

8

 

 

$

47

 

 

 
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 March 31, 2026:

 

 

 

 

 

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)

 

 

3.3

 

 

 

-

 

 

 

-

 

 

 

6.0

 

 

 

5.4

 

Gross insured contractual payments outstanding: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

$

348

 

 

$

-

 

 

$

-

 

 

$

1,308

 

 

$

1,656

 

 

 

Interest

 

 

1,028

 

 

 

-

 

 

 

-

 

 

 

453

 

 

 

1,481

 

 

 

 

Total

 

$

1,376

 

 

$

-

 

 

$

-

 

 

$

1,761

 

 

$

3,137

 

Gross Claim Liability (3)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

762

 

 

$

762

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Potential Recoveries (4)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

279

 

 

 

279

 

 

Discount, net (5)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

100

 

 

 

100

 

Net claim liability (recoverable)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

383

 

 

$

383

 

Unearned premium revenue

 

$

-

 

 

$

-

 

 

$

-

 

 

$

7

 

 

$

7

 

Reinsurance recoverable on paid and unpaid losses (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

15

 

 

(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 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 (Unaudited)

 

Note 5: 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, 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 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 (Unaudited)
v3.26.1
Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2026
Text Block [Abstract]  
Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets 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 measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025:

 

 

 

Fair Value as of

 

 

 

 

 

 

Range

 

 

 

March 31,

 

 

 

 

 

 

(Weighted

In millions

 

2026

 

 

Valuation Techniques

 

Unobservable Input

 

Average)

Assets:

 

 

 

 

 

 

 

 

 

 

Equity Investments

 

$

34

 

 

Discounted cash flow

 

Discount rate (1)

 

 

 

 

 

 

 

 

 

 

EBITDA multiple (1)

 

 

 

 

 

 

 

 

Type certificate

 

Discount rate (1)

 

 

 

 

 

 

 

 

 

 

EBITDA royalty share (1)

 

 

 

Loans carried at fair value

 

 

18

 

 

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

 

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 multiples, 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 March 31, 2026 and December 31, 2025:

 

 

 

 

 

 

 

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

 

 

March 31,

 

 

In millions

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

2026

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency

 

$

438

 

 

$

-

 

 

$

-

 

 

$

438

 

 

 

State and municipal bonds

 

 

-

 

 

 

99

 

 

 

-

 

 

99

 

 

 

Foreign governments

 

 

-

 

 

 

5

 

 

 

-

 

 

5

 

 

 

Corporate obligations

 

 

-

 

 

 

454

 

 

 

19

 

(1)

 

473

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

-

 

 

 

111

 

 

 

-

 

 

111

 

 

 

 

Residential mortgage-backed non-agency

 

 

-

 

 

 

22

 

 

 

-

 

 

22

 

 

 

 

Commercial mortgage-backed

 

 

-

 

 

 

16

 

 

 

-

 

 

16

 

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

-

 

 

 

82

 

 

 

-

 

 

82

 

 

 

 

Other asset-backed

 

 

-

 

 

 

238

 

 

 

-

 

 

238

 

 

 

 

 

Total fixed-maturity investments

 

 

438

 

 

 

1,027

 

 

 

19

 

 

 

1,484

 

 

Money market securities

 

 

65

 

 

 

-

 

 

 

-

 

 

 

65

 

 

Equity investments

 

 

46

 

 

 

6

 

 

 

34

 

 

 

96

 

(2)

Cash and cash equivalents

 

 

70

 

 

 

-

 

 

 

-

 

 

 

70

 

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

 

2

 

 

 

-

 

 

 

-

 

 

 

2

 

 

 

Loans receivable at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential loans receivable

 

 

-

 

 

 

-

 

 

 

34

 

 

 

34

 

 

Total assets

 

$

621

 

 

$

1,033

 

 

$

87

 

 

$

1,751

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Medium-term notes

 

$

-

 

 

$

-

 

 

$

43

 

$

43

 

 

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable interest entity notes

 

 

-

 

 

 

-

 

 

 

24

 

 

 

24

 

 

 

Currency derivatives

 

 

-

 

 

 

-

 

 

 

12

 

 

 

12

 

 

Total liabilities

 

$

-

 

 

$

-

 

 

$

79

 

 

$

79

 

 

 

(1) - Includes loans carried at fair value of $18 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)

 

 

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 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

 

 

March 31,

 

 

March 31,

 

 

In millions

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

2026

 

 

2026

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

 

$

-

 

 

$

-

 

 

$

1

 

 

$

1

 

 

$

1

 

 

Total assets

 

$

-

 

 

$

-

 

 

$

1

 

 

$

1

 

 

$

1

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

$

-

 

 

$

235

 

 

$

-

 

 

$

235

 

 

$

2,879

 

 

 

Medium-term notes

 

 

-

 

 

 

-

 

 

 

274

 

 

 

274

 

 

 

427

 

(1)

 

Investment agreements

 

 

-

 

 

 

-

 

 

 

183

 

 

 

183

 

 

 

173

 

 

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable interest entity loans payable

 

 

-

 

 

 

-

 

 

 

7

 

 

 

7

 

 

 

7

 

 

Total liabilities

 

$

-

 

 

$

235

 

 

$

464

 

 

$

699

 

 

$

3,486

 

 

Financial Guarantees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross liability (recoverable)

 

$

-

 

 

$

-

 

 

$

750

 

 

$

750

 

 

$

556

 

 

 

Ceded recoverable (liability)

 

 

-

 

 

 

-

 

 

 

16

 

 

 

16

 

 

 

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 March 31, 2026, 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)

 

 

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.
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 Three Months Ended March 31, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in

 

 

Change in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains

 

 

Gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Losses) for

 

 

(Losses) for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the Period

 

 

the Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in

 

 

Included in

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

OCI

 

 

 

 

 

 

Gains /

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

for Assets

 

 

for Assets

 

 

 

 

 

 

(Losses)

 

 

Gains /

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

still held

 

 

still held

 

 

 

Balance,

 

 

Included

 

 

(Losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfers

 

 

Transfers

 

 

 

 

 

as of

 

 

as of

 

 

 

Beginning

 

 

in

 

 

Included

 

 

 

 

 

 

 

 

 

 

 

 

 

 

into

 

 

out of

 

 

Ending

 

 

March 31,

 

 

March 31,

 

In millions

 

of Period

 

 

Earnings

 

 

in OCI(1)

 

 

Purchases

 

 

Issuances

 

 

Settlements

 

 

Sales

 

 

Level 3

 

 

Level 3

 

 

Balance

 

 

2026

 

 

2026(1)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate obligations

 

$

18

 

 

$

-

 

 

$

-

 

 

$

1

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

19

 

(3)

$

-

 

 

$

-

 

Equity investments

 

 

33

 

 

 

1

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

34

 

 

 

1

 

 

 

-

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable -
  residential

 

 

34

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

34

 

 

 

-

 

 

 

-

 

Total assets

 

$

85

 

 

$

1

 

 

$

-

 

 

$

1

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

87

 

 

$

1

 

 

$

-

 

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended March 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

 

 

March 31,

 

 

March 31,

 

In millions

 

of Period

 

 

Earnings

 

 

in OCI(1)

 

 

Purchases

 

 

Issuances

 

 

Settlements

 

 

Sales

 

 

Level 3

 

 

Level 3

 

 

Balance

 

 

2025

 

 

2025(1)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate obligations

 

$

16

 

 

$

(1

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

15

 

(3)

$

(1

)

 

$

-

 

Equity investments

 

 

52

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

52

 

 

 

-

 

 

 

-

 

Assets of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable-
  residential

 

 

28

 

 

 

2

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

30

 

 

 

2

 

 

 

-

 

Total assets

 

$

96

 

 

$

1

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

97

 

 

$

1

 

 

$

-

 
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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfers

 

 

Transfers

 

 

 

 

 

as of

 

 

as of

 

 

 

Beginning

 

 

in

 

 

in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

into

 

 

out of

 

 

Ending

 

 

March 31,

 

 

March 31,

 

In millions

 

of Period

 

 

Earnings

 

 

in OCI(2)

 

 

Purchases

 

 

Issuances

 

 

Settlements

 

 

Sales

 

 

Level 3

 

 

Level 3

 

 

Balance

 

 

2026

 

 

2026(2)

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medium-term notes

 

$

46

 

 

$

(2

)

 

$

(1

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

43

 

 

$

(2

)

 

$

(1

)

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VIE notes

 

 

25

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

24

 

 

 

-

 

 

 

-

 

Currency derivatives

 

 

12

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

12

 

 

 

-

 

 

 

-

 

Total liabilities

 

$

83

 

 

$

(2

)

 

$

(1

)

 

$

-

 

 

$

-

 

 

$

(1

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

79

 

 

$

(2

)

 

$

(1

)

 

(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 $18 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

 

 

March 31,

 

 

March 31,

 

In millions

 

of Period

 

 

Earnings

 

 

in OCI(2)

 

 

Purchases

 

 

Issuances

 

 

Settlements

 

 

Sales

 

 

Level 3

 

 

Level 3

 

 

Balance

 

 

2025

 

 

2025(2)

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medium-term notes

 

$

35

 

 

$

2

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

37

 

 

$

2

 

 

$

-

 

Liabilities of consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VIE notes

 

 

31

 

 

 

2

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(6

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

27

 

 

 

-

 

 

 

-

 

Currency
  derivatives

 

 

6

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6

 

 

 

-

 

 

 

-

 

Total liabilities

 

$

72

 

 

$

4

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

(6

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

70

 

 

$

2

 

 

$

-

 

 

(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 $14 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 related to Level 3 assets and liabilities for the three months ended March 31, 2026 and 2025 are reported on the Company’s consolidated statements of operations as follows:

 

 

 

 

Three Months Ended March 31, 2026

 

 

Three Months Ended March 31, 2025

 

 

 

 

 

 

 

Change in

 

 

 

 

 

Change in

 

 

 

 

 

 

 

Unrealized

 

 

 

 

 

Unrealized

 

 

 

 

 

 

 

Gains (Losses)

 

 

 

 

 

Gains (Losses)

 

 

 

 

 

 

 

for the

 

 

 

 

 

for the

 

 

 

 

 

 

 

Period Included

 

 

 

 

 

Period Included

 

 

 

 

 

 

 

in Earnings

 

 

 

 

 

in Earnings

 

 

 

 

 

 

 

for Assets

 

 

 

 

 

for Assets

 

 

 

 

 

 

 

and

 

 

 

 

 

and

 

 

 

 

Total Gains

 

 

Liabilities still

 

 

Total Gains

 

 

Liabilities still

 

 

 

 

(Losses)

 

 

held as of

 

 

(Losses)

 

 

held as of

 

 

 

 

Included

 

 

March 31,

 

 

Included

 

 

March 31,

 

In millions

 

in Earnings

 

 

2026

 

 

in Earnings

 

 

2025

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

3

 

 

$

3

 

 

$

(3

)

 

$

(3

)

 

Revenues of consolidated VIEs (1)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2

 

Total

 

$

3

 

 

$

3

 

 

$

(3

)

 

$

(1

)

 

(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 tables present the effects of derivative instruments on the Company's consolidated statements of operations for the three months ended March 31, 2026 and 2025:

 

In millions

 

 

 

 

 

 

 

 

Derivatives Not Designated

 

 

 

Three Months Ended March 31,

 

as Hedging Instruments

 

Location of Gain (Loss) Recognized in Income on Derivative

 

2026

 

 

2025

 

Interest rate swaps

 

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

 

$

-

 

 

$

1

 
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 three months ended March 31, 2026 and 2025 for financial instruments for which the fair value option was elected:

 

 

 

Three Months Ended March 31,

 

 

In millions

 

2026

 

 

2025

 

 

Investments carried at fair value (1)

 

$

(1

)

 

$

(2

)

 

Loans receivable at fair value:

 

 

 

 

 

 

 

 

Residential mortgage loans (2)

 

 

-

 

 

 

2

 

 

Medium-term notes (1)

 

 

2

 

 

 

(2

)

 

Variable interest entity notes (2)

 

 

-

 

 

 

(2

)

 

___________________

(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/or "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 March 31, 2026 and December 31, 2025 for loans and notes for which the fair value option was elected:

 

 

 

As of March 31, 2026

 

 

As of December 31, 2025

 

 

 

 

 

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)

 

 

54

 

 

 

22

 

 

 

32

 

 

 

55

 

 

 

22

 

 

 

33

 

 

 

Corporate loans - current

 

 

20

 

 

 

18

 

 

 

2

 

 

 

19

 

 

 

17

 

 

 

2

 

 

Total loans receivable at fair value

 

$

86

 

 

$

52

 

 

$

34

 

 

$

86

 

 

$

51

 

 

$

35

 

 

Variable interest entity notes

 

$

38

 

 

$

24

 

 

$

14

 

 

$

39

 

 

$

25

 

 

$

14

 

 

Medium-term notes

 

$

58

 

 

$

43

 

 

$

15

 

 

$

59

 

 

$

46

 

 

$

13

 

 

 
v3.26.1
Investments (Tables)
 3 Months Ended
Mar. 31, 2026
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 March 31, 2026 and December 31, 2025:

 

 

 

 

 

 

March 31, 2026

 

 

 

 

 

 

 

 

 

 

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

 

$

448

 

 

$

-

 

 

$

-

 

 

$

(10

)

 

$

438

 

 

State and municipal bonds

 

 

106

 

 

 

-

 

 

 

2

 

 

 

(9

)

 

 

99

 

 

Foreign governments

 

 

7

 

 

 

-

 

 

 

-

 

 

 

(2

)

 

 

5

 

 

Corporate obligations

 

 

504

 

 

 

-

 

 

 

-

 

 

 

(101

)

 

 

403

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

119

 

 

 

-

 

 

 

-

 

 

 

(11

)

 

 

108

 

 

 

Residential mortgage-backed non-agency

 

 

17

 

 

 

-

 

 

 

1

 

 

 

(1

)

 

 

17

 

 

 

Commercial mortgage-backed

 

 

8

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

8

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

63

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

64

 

 

 

Other asset-backed

 

 

217

 

 

 

-

 

 

 

1

 

 

 

(2

)

 

 

216

 

Total AFS investments

 

$

1,489

 

 

$

-

 

 

$

5

 

 

$

(136

)

 

$

1,358

 

 

 

 

 

 

 

 

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

 
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 March 31, 2026. 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

 

$

365

 

 

$

365

 

Due after one year through five years

 

 

216

 

 

 

207

 

Due after five years through ten years

 

 

134

 

 

 

122

 

Due after ten years

 

 

350

 

 

 

251

 

Mortgage-backed and asset-backed

 

 

424

 

 

 

413

 

Total fixed-maturity investments

 

$

1,489

 

 

$

1,358

 
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 March 31, 2026 and December 31, 2025:

 

 

 

 

 

 

 

March 31, 2026

 

 

 

 

 

 

 

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

 

$

12

 

 

$

-

 

 

$

95

 

 

$

(10

)

 

$

107

 

 

$

(10

)

 

State and municipal bonds

 

 

12

 

 

 

-

 

 

 

54

 

 

 

(9

)

 

 

66

 

 

 

(9

)

 

Foreign governments

 

 

-

 

 

 

-

 

 

 

5

 

 

 

(2

)

 

 

5

 

 

 

(2

)

 

Corporate obligations

 

 

47

 

 

 

-

 

 

 

287

 

 

 

(101

)

 

 

334

 

 

 

(101

)

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed agency

 

 

10

 

 

 

-

 

 

 

87

 

 

 

(11

)

 

 

97

 

 

 

(11

)

 

 

Residential mortgage-backed non-agency

 

5

 

 

 

-

 

 

 

5

 

 

 

(1

)

 

 

10

 

 

 

(1

)

 

 

Commercial mortgage-backed

 

 

1

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1

 

 

 

-

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized debt obligations

 

 

62

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

62

 

 

 

-

 

 

 

Other asset-backed

 

 

79

 

 

 

(1

)

 

 

12

 

 

 

(1

)

 

 

91

 

 

 

(2

)

Total AFS investments

 

$

228

 

 

$

(1

)

 

$

545

 

 

$

(135

)

 

$

773

 

 

$

(136

)

 

 

 

 

 

 

 

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

)
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 March 31, 2026:

 

 

 

AFS Securities

 

Percentage of Fair Value

 

Number of

 

Book Value

 

 

Fair Value

 

 Below Book Value

 

Securities

 

(in millions)

 

 

(in millions)

 

> 5% to 15%

 

 

92

 

 

$

283

 

 

$

254

 

> 15% to 25%

 

 

50

 

 

 

86

 

 

 

69

 

> 25% to 50%

 

 

68

 

 

 

232

 

 

 

145

 

> 50%

 

 

2

 

 

 

-

 

 

 

-

 

Total

 

 

212

 

 

$

601

 

 

$

468

 
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 March 31, 2026 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 March 31, 2026.

 

 

 

 

 

 

 

 

Unrealized

 

 

Insurance Loss

 

In millions

 

Fair Value

 

 

Loss

 

 

Reserve (1)

 

Asset-backed

 

$

17

 

 

$

(1

)

 

$

18

 

Corporate obligations

 

 

80

 

 

 

(49

)

 

 

-

 

Total

 

$

97

 

 

$

(50

)

 

$

18

 

___________________

 

(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 three months ended March 31, 2026 and 2025 are as follows:

 

 

 

 

Three Months Ended March 31,

 

In millions

 

2026

 

 

2025

 

Proceeds from sales

 

$

-

 

 

$

62

 

Gross realized gains

 

$

-

 

 

$

1

 

Gross realized losses

 

$

-

 

 

$

(6

)

 
Portion Of Unrealized Gains Losses Recognized On Equity Investments

 

 

Three Months Ended March 31,

In millions

2026

 

 

2025

 

 

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

$

(2

)

 

$

(3

)

 

Less:

 

 

 

 

 

 

 

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

 

-

 

 

 

2

 

 

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

$

(2

)

 

$

(5

)

 
v3.26.1
Income Taxes (Tables)
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income tax rate reconciliation from statutory to effective tax rate

The Company’s income taxes and the related effective tax rates for the three months ended March 31, 2026 and 2025 are as follows:

 

 

 

Three Months Ended March 31,

 

In millions

 

 

2026

 

 

 

 

2025

 

Income (loss) from continuing operations before income taxes

 

$

 

(41

)

 

 

$

 

(62

)

Provision (benefit) for income taxes

 

$

 

-

 

 

 

$

 

-

 

Effective tax rate

 

 

 

0.0

%

 

 

 

 

0.0

%

 
v3.26.1
Business Segments (Tables)
 3 Months Ended
Mar. 31, 2026
Text Block [Abstract]  
Summary of company's segment results

The following tables provide the Company’s segment results for the three months ended March 31, 2026 and 2025:

 

 

 

 

 

Three Months Ended March 31, 2026

 

 

 

 

 

U.S.

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 

 

Public

 

 

 

 

 

and Structured

 

 

 

 

 

 

 

 

 

 

 

Finance

 

 

 

 

 

Finance

 

 

 

 

 

 

 

In millions

 

Insurance

 

 

Corporate

 

 

Insurance

 

 

Eliminations

 

 

Consolidated

 

Revenues (1)

 

$

15

 

 

$

5

 

 

$

4

 

 

$

-

 

 

$

24

 

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

 

 

(2

)

 

 

1

 

 

 

1

 

 

 

-

 

 

 

-

 

Inter-segment revenues (2)

 

 

6

 

 

 

13

 

 

 

1

 

 

 

(20

)

 

 

-

 

 

 

Total revenues (3)

 

 

19

 

 

 

19

 

 

 

6

 

 

 

(20

)

 

 

24

 

Losses and loss adjustment

 

 

2

 

 

 

-

 

 

 

(5

)

 

 

-

 

 

 

(3

)

Compensation and benefits

 

 

-

 

 

 

10

 

 

 

-

 

 

 

-

 

 

 

10

 

Interest

 

 

-

 

 

 

17

 

 

 

36

 

 

 

(6

)

 

 

47

 

Inter-segment service charge

 

 

9

 

 

 

-

 

 

 

3

 

 

 

(12

)

 

 

-

 

Other segment items (4)

 

 

4

 

 

 

3

 

 

 

6

 

 

 

(2

)

 

 

11

 

 

 

Total expenses

 

 

15

 

 

 

30

 

 

 

40

 

 

 

(20

)

 

 

65

 

Income (loss) from continuing operations before income taxes

 

$

4

 

 

$

(11

)

 

$

(34

)

 

$

-

 

 

$

(41

)

Total assets per reportable segment

 

$

1,480

 

 

$

639

 

 

$

661

 

 

$

(801

)

 (5)

$

1,979

 

 

(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 $15 million, $6 million, $3 million, and ($6) 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 deferred acquisition costs ("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 (Unaudited)

 

Note 9: Business Segments (continued)

 

 

 

 

Three Months Ended March 31, 2025

 

In millions

 

U.S. Public Finance Insurance

 

 

Corporate

 

 

International and Structured Finance Insurance

 

 

Eliminations

 

 

Consolidated

 

Revenues (1)

 

$

11

 

 

$

6

 

 

$

5

 

 

$

-

 

 

$

22

 

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

 

 

-

 

 

 

(5

)

 

 

(10

)

 

 

-

 

 

 

(15

)

Revenues of consolidated VIEs

 

 

-

 

 

 

-

 

 

 

7

 

 

 

-

 

 

 

7

 

Inter-segment revenues (2)

 

 

6

 

 

 

15

 

 

 

2

 

 

 

(23

)

 

 

-

 

 

 

Total revenues (3)

 

 

17

 

 

 

16

 

 

 

4

 

 

 

(23

)

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment

 

 

3

 

 

 

-

 

 

 

5

 

 

 

-

 

 

 

8

 

Compensation and benefits

 

 

-

 

 

 

9

 

 

 

-

 

 

 

-

 

 

 

9

 

Interest

 

 

-

 

 

 

18

 

 

 

38

 

 

 

(6

)

 

 

50

 

Inter-segment service charge

 

 

10

 

 

 

-

 

 

 

4

 

 

 

(14

)

 

 

-

 

Other segment items (4)

 

 

4

 

 

 

4

 

 

 

4

 

 

 

(3

)

 

 

9

 

 

 

Total expenses

 

 

17

 

 

 

31

 

 

 

51

 

 

 

(23

)

 

 

76

 

Income (loss) from continuing operations before income taxes

 

$

-

 

 

$

(15

)

 

$

(47

)

 

$

-

 

 

$

(62

)

Total assets per reportable segment

 

$

1,551

 

 

$

685

 

 

$

821

 

 

$

(936

)

(5)

$

2,121

 

Assets held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,132

 

 

(1) - Consists primarily of net premiums earned, net investment income, net realized investment gains (losses) and other net realized gains (losses).

(2) - Primarily represents intercompany service charges and intercompany net investment income.

(3) - Includes net investment income of $15 million, $7 million, $3 million, and ($7) 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.
v3.26.1
Earnings Per Share (Tables)
 3 Months Ended
Mar. 31, 2026
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 three months ended March 31, 2026 and 2025:

 

 

Three Months Ended March 31,

 

In millions except per share amounts

2026

 

 

2025

 

Basic and diluted earnings per share:

 

 

 

 

 

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

$

(41

)

 

$

(62

)

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

 

(2

)

 

 

-

 

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

 

(39

)

 

 

(62

)

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

 

(1

)

 

 

-

 

Net income (loss) attributable to MBIA Inc.

$

(40

)

 

$

(62

)

Basic and diluted weighted average shares (1)

 

49.8

 

 

 

48.4

 

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

 

 

 

 

 

Continuing operations

$

(0.79

)

 

$

(1.28

)

Discontinued operations

 

(0.01

)

 

 

-

 

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

$

(0.80

)

 

$

(1.28

)

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

 

0.8

 

 

 

0.9

 

 

(1) - Includes approximately 1 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the three months ended March 31, 2026 and 2025.
v3.26.1
Accumulated Other Comprehensive Income (Tables)
 3 Months Ended
Mar. 31, 2026
Text Block [Abstract]  
Changes In The Components Of AOCI

The following table presents the changes in the components of AOCI for the three months ended March 31, 2026:

 

In millions

 

Unrealized Gains (Losses) on AFS Securities, Net

 

 

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

 

 

Total

 

 

Balance, December 31, 2025

 

$

(114

)

 

$

19

 

 

$

(95

)

 

 

Other comprehensive income (loss)

 

 

(9

)

 

 

1

 

 

 

(8

)

 

Balance, March 31, 2026

 

$

(123

)

 

$

20

 

 

$

(103

)

 
Reclassifications From AOCI

The following table presents the details of the reclassifications from AOCI for the three months ended March 31, 2026 and 2025:

 

 

In millions

 

Amounts Reclassified from AOCI

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

Details about AOCI Components

 

2026

 

 

2025

 

 

Affected Line Item on the Consolidated Statements of Operations

Unrealized gains (losses) on AFS securities:

 

 

 

 

 

 

 

 

 

Realized gains (losses) on sale of securities

 

$

-

 

 

$

(7

)

 

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

Total reclassifications for the period

 

$

-

 

 

$

(12

)

 

Net income (loss) attributable to MBIA Inc.

 
v3.26.1
Business Developments And Risks And Uncertainties (Narrative) (Detail)
$ in Millions
 3 Months Ended
Jan. 01, 2026
USD ($)
Mar. 31, 2026
USD ($)
Segments
Business Acquisition [Line Items]    
Number of operating segments | Segments   3
Puerto Rico Electric Power Authority [Member]    
Business Acquisition [Line Items]    
Outstanding bonds   $ 554
National Public Finance Guarantee Corporation [Member] | Puerto Rico Electric Power Authority [Member]    
Business Acquisition [Line Items]    
Claims payments $ 11  
v3.26.1
Business Developments and Risks and Uncertainties (Schedule of Discontinued Operations Components of Assets and Liabilities Held for Sale) (Detail) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Assets held for sale    
Accounts receivable $ 0 $ 2
Goodwill 0 11
Other assets 0 1
Loss on disposal group 0 (6)
Total assets held for sale 0 8
Liabilities held for sale    
Accounts payable 0 1
Debt 0 0
Accrued expenses and other 0 5
Total liabilities held for sale $ 0 $ 6
v3.26.1
Business Developments and Risks and Uncertainties (Schedule of Results of Operations from Discontinued Operation) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Revenues    
Revenues $ 1 $ 3
Cost of sales 1 1
Total revenues from discontinued operations 0 2
Expenses:    
Operating 0 1
Increase (decrease) on loss on disposal group 1 1
Total expenses from discontinued operations 1 2
Income (loss) before income taxes from discontinued operations (1) 0
Provision (benefit) for income taxes from discontinued operations 0 0
Income (loss) from discontinued operations, net of income taxes $ (1) $ 0
v3.26.1
Variable Interest Entities (Narrative) (Detail) - VariableInterestEntities
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Variable Interest Entity, Primary Beneficiary [Member] | Structured Finance and International Insurance [Member]    
Variable Interest Entity [Line Items]    
Number of variable interest entities consolidated 0 0
v3.26.1
Variable Interest Entities (Summary of Nonconsolidated VIEs Assets and Liabilities) (Detail) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Mar. 31, 2025
Variable Interest Entity [Line Items]      
Maximum Exposure to Loss $ 1,152 $ 1,188  
Carrying Value of VIE Assets 1,979 2,013 $ 2,132
Carrying Value of VIE Liabilities 4,257 4,243  
Unearned Premium Revenue [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 6 6  
Loss And Loss Adjustment Expense Reserves [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 229 235  
Investments [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 28 29  
Premiums Receivable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 8 8  
Insurance Loss Recoverable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 22 22  
Global Structured Finance [Member]      
Variable Interest Entity [Line Items]      
Maximum Exposure to Loss 971 999  
Global Structured Finance [Member] | Unearned Premium Revenue [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 4 4  
Global Structured Finance [Member] | Loss And Loss Adjustment Expense Reserves [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 229 235  
Global Structured Finance [Member] | Investments [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 28 29  
Global Structured Finance [Member] | Premiums Receivable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets   5  
Global Structured Finance [Member] | Insurance Loss Recoverable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 22 22  
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member]      
Variable Interest Entity [Line Items]      
Maximum Exposure to Loss 714 729  
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 229 234  
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Investments [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 28 29  
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Premiums Receivable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 4 4  
Global Structured Finance [Member] | Residential Mortgage Backed Securities [Member] | Insurance Loss Recoverable [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Assets 22 22  
Global Structured Finance [Member] | Consumer Asset Backed [Member]      
Variable Interest Entity [Line Items]      
Maximum Exposure to Loss 52 58  
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 0 1  
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 205 212  
Global Structured Finance [Member] | Corporate Asset Backed [Member] | Unearned Premium Revenue [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 1 1  
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 1  
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 181 189  
Global Public Finance [Member] | Unearned Premium Revenue [Member]      
Variable Interest Entity [Line Items]      
Carrying Value of VIE Liabilities 2 2  
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  
v3.26.1
Loss and Loss Adjustment Expense Reserves (Schedule of Losses and Loss Adjustment Expenses Reserves and Recoveries) (Detail) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Loss And Lae Reserves [Member]    
Loss And Loss Adjustment Expense Reserves [Line Items]    
Loss and loss adjustment expense reserves [1] $ 437 $ 454
Insurance Loss Recoverable [Member]    
Loss And Loss Adjustment Expense Reserves [Line Items]    
Insurance Loss Recoverable 47 43
Non Variable Interest Entity [Member]    
Loss And Loss Adjustment Expense Reserves [Line Items]    
Insurance Loss Recoverable 47 43
Loss and loss adjustment expense reserves 437 454
US Public Finance Insurance [Member]    
Loss And Loss Adjustment Expense Reserves [Line Items]    
Insurance Loss Recoverable 25 22
Loss and loss adjustment expense reserves [1] 208 219
International And Structured Finance Insurance [Member]    
Loss And Loss Adjustment Expense Reserves [Line Items]    
Insurance Loss Recoverable 22 21
Loss and loss adjustment expense reserves [1] 223 229
International And Structured Finance Insurance [Member] | Non Variable Interest Entity [Member]    
Loss And Loss Adjustment Expense Reserves [Line Items]    
Insurance Loss Recoverable 22 21
Loss and loss adjustment expense reserves [1] 229 235
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 0
Loss and loss adjustment expense reserves [1] $ 6 $ 6
[1] Amounts are net of estimated recoveries of expected future claims.
v3.26.1
Loss and Loss Adjustment Expense Reserves (Loss and LAE Activity) (Narrative) (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Loss And Loss Adjustment Expense Reserves [Line Items]      
Weighted average risk-free rates used to discount claim liability 4.16%   3.79%
Lae [Member]      
Loss And Loss Adjustment Expense Reserves [Line Items]      
Losses and loss adjustment $ 2 $ 1  
Loss and loss adjustment expense reserves $ 14   $ 15
Changes in Loss and LAE Reserves one-year    
v3.26.1
Loss and Loss Adjustment Expense Reserves (Schedule of Loss and Loss Adjustment Expenses Reserves) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Loss And Loss Adjustment Expense Reserves [Line Items]    
Changes in unearned premium revenue $ (6) $ (7)
Loss And Lae Reserves [Member]    
Loss And Loss Adjustment Expense Reserves [Line Items]    
Gross loss and LAE reserve, beginning balance [1] 454  
Loss payments for cases (21)  
Accretion of claim liability discount 4  
Changes in discount rates (7)  
Changes in assumptions [2] 6  
Changes in unearned premium revenue 1  
Gross loss and LAE reserve, ending balance [1] $ 437  
[1] Amounts are net of estimated recoveries of expected future claims.
[2] Includes changes in amount and timing of estimated payments and recoveries.
v3.26.1
Loss and Loss Adjustment Expense Reserves (Schedule of Insurance Loss Recoverable) (Detail) - Insurance Loss Recoverable [Member]
$ in Millions
 3 Months Ended
Mar. 31, 2026
USD ($)
Roll forward of Insurance Loss Recoverable [Line Items]  
Gross Reserve beginning balance, Insurance loss recoverable $ 43
Collections for Cases (3)
Accretion of Recoveries 0
Changes in Discount Rates (1)
Changes in Assumptions 8
Gross Reserve ending balance, Insurance loss recoverable $ 47
v3.26.1
Loss and Loss Adjustment Expense Reserves (Schedule Of Financial Guarantees And Related Claim Liability) (Detail)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2026
USD ($)
Issue
Policy
Dec. 31, 2025
USD ($)
Issue
Policy
Loss And Loss Adjustment Expense Reserves [Line Items]    
Number of policies | Policy 107 107
Number of issues | Issue [1] 83 83
Remaining weighted average contract period (in years) 5 years 4 months 24 days 5 years 7 months 6 days
Principal [2] $ 1,656 $ 1,685
Interest [2] 1,481 1,532
Total [2] 3,137 3,217
Gross claim liability [3] 762 786
Less: Gross potential recoveries [4] 279 281
Discount, net [5] 100 101
Net claim liability (recoverable) 383 404
Unearned premium revenue 7 9
Reinsurance recoverable on paid and unpaid losses [6] $ 15 $ 14
Caution List Low [Member]    
Loss And Loss Adjustment Expense Reserves [Line Items]    
Number of policies | Policy 20 20
Number of issues | Issue [1] 7 7
Remaining weighted average contract period (in years) 3 years 3 months 18 days 3 years 6 months
Principal [2] $ 348 $ 356
Interest [2] 1,028 1,054
Total [2] 1,376 1,410
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 $ 1
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 87
Number of issues | Issue [1] 76 76
Remaining weighted average contract period (in years) 6 years 6 years 1 month 6 days
Principal [2] $ 1,308 $ 1,329
Interest [2] 453 478
Total [2] 1,761 1,807
Gross claim liability [3] 762 786
Less: Gross potential recoveries [4] 279 281
Discount, net [5] 100 101
Net claim liability (recoverable) 383 404
Unearned premium revenue $ 7 $ 8
[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 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.
v3.26.1
Fair Value of Financial Instruments (Narrative) (Detail) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
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 100.00% 100.00%
Gain (loss) on cumulative changes in instrument-specific credit risk of liabilities elected under the fair value option $ (2,283) $ (2,237)
Cross Currency Swap [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Derivative notional amount 27 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 (103) (95)
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 20 19
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 $ 20 $ 19
v3.26.1
Fair Value of Financial Instruments (Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets Measured At Fair Value On A Recurring Basis) (Detail) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
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 $ 18 [1] $ 17 [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 34 [1] 33 [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 $ 34
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] 3.00% [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] 3.00% [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] 3.00% [4]
[1] Ranges for discount rate, EBITDA multiple and EBITDA royalty share are not meaningful.
[2] Ranges for discount rate, EBITDA multiples, 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.
v3.26.1
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
Mar. 31, 2026
Dec. 31, 2025
Accounts Notes And Loans Receivable [Line Items]    
Fair value financial assets measured on recurring basis $ 1,751 $ 1,779
Fair value financial liabilities measured on recurring basis 79 83
Money Market Securities [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Fair value financial assets measured on recurring basis 65 109
Medium-term Notes [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Fair value financial liabilities measured on recurring basis 43 46
Equity investments [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Fair value financial assets measured on recurring basis 96 [1] 97 [2]
Cash and Cash Equivalents [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Fair value financial assets measured on recurring basis 70 69
Fixed Maturities [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Fair value financial assets measured on recurring basis 1,484 1,468
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 438 473
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 99 100
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 5
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 473 433
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 111 117
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 22 21
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 16 18
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 82 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 238 252
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 34
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 2
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 12
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 24 25
Fair Value Inputs Level 1 [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Fair value financial assets measured on recurring basis 621 700
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 65 109
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 46 [1] 47 [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 70 69
Fair Value Inputs Level 1 [Member] | Fixed Maturities [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Fair value financial assets measured on recurring basis 438 473
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 438 473
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 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] | 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 2
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 1,033 984
Fair value financial liabilities measured on recurring basis 0 0
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 6 [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 1,027 977
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 99 100
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 5
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 454 415
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 111 117
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 22 21
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 16 18
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 82 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 238 252
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] | 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 87 85
Fair value financial liabilities measured on recurring basis 79 83
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 43 46
Fair Value Inputs Level 3 [Member] | Equity investments [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Fair value financial assets measured on recurring basis 34 [1] 33 [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 19 18
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 19 [3] 18 [4]
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 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] | 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 34
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] | 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 12
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 $ 24 $ 25
[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 $18 million.
[4] Includes loans carried at fair value of $17 million.
v3.26.1
Fair Value of Financial Instruments (Company's Assets And Liabilities Measured At Fair Value On Recurring Basis) (Parenthetical) (Details) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Mar. 31, 2025
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 $ 18 $ 17 $ 14
v3.26.1
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
Mar. 31, 2026
Dec. 31, 2025
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 2,879 2,843
Medium-term notes 427 [1] 424 [2]
Investment agreements 173 174
Total liabilities 3,486 3,448
Gross liability (recoverable) 556 583
Ceded recoverable (liability) 16 16
Fair Value [Member]    
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Other investments 1 1
Total assets 1 1
Long-term debt 235 242
Medium-term notes 274 275
Investment agreements 183 187
Total liabilities 699 711
Gross liability (recoverable) 750 817
Ceded recoverable (liability) 16 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 235 242
Medium-term notes 0 0
Investment agreements 0 0
Total liabilities 235 242
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 274 275
Investment agreements 183 187
Total liabilities 464 469
Gross liability (recoverable) 750 817
Ceded recoverable (liability) 16 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 7
Liabilities Of Consolidated Vies [Member] | Fair Value [Member]    
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Variable interest entity loans payable 7 7
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 $ 7
[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 March 31, 2026, 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, 2025, the Company had an embedded derivative liability of $1 million.
v3.26.1
Fair Value of Financial Instruments (Fair Value Hierarchy Table Presents The Company's Assets And Liabilities At Fair Value Not Recorded On The Company's Consolidated Balance Sheet) (Parenthetical) (Details) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]    
Embedded derivative liabilities $ 1 $ 1
v3.26.1
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
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Accounts Notes And Loans Receivable [Line Items]    
Beginning balance, fair value assets $ 85 $ 96
Total gains/(losses) included in earnings, assets $ 1 $ 1
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 [2]
Purchases, assets 1 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 87 97
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets $ 1 $ 1
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 [2]
Beginning balance, fair value liabilities 83 72
Total (gains)/losses included in earnings, liabilities $ (2) $ 4
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 $ (1) [3] $ 0 [4]
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 (1) (6)
Sales, liabilities 0 0
Transfers into Level 3, liabilities 0 0
Transfers out of Level 3, liabilities 0 0
Ending balance, fair value liabilities 79 70
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities (2) 2
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held (1) [3] 0 [4]
Loans receivable - residential [Member] | Variable Interest Entity Primary Beneficiary [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Beginning balance, fair value assets 34 28
Total gains/(losses) included in earnings, assets 0 2
Unrealized gains/(losses) included in OCI, assets 0 [1] 0 [2]
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 34 30
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets 0 2
Change in unrealized gains/(losses) for the period included in OCI for Assets still held, assets 0 [1] 0 [2]
Corporate Obligations [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Beginning balance, fair value assets 18 16
Total gains/(losses) included in earnings, assets 0 (1)
Unrealized gains/(losses) included in OCI, assets 0 [1] 0 [2]
Purchases, assets 1 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 19 [5] 15 [6]
Change in unrealized gains/(losses) for the period included in earnings for assets still held, assets 0 (1)
Change in unrealized gains/(losses) for the period included in OCI for Assets still held, assets 0 [1] 0 [2]
Equity investments [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Beginning balance, fair value assets 33 52
Total gains/(losses) included in earnings, assets 1 0
Unrealized gains/(losses) included in OCI, assets 0 [1] 0 [2]
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 34 52
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 [2]
Medium Term Notes [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Beginning balance, fair value liabilities 46 35
Total (gains)/losses included in earnings, liabilities (2) 2
Unrealized (gains)/losses included in OCI, liabilities (1) [3] 0 [4]
Purchases, liabilities 0 0
Issuances, liabilities 0 0
Settlements, liabilities 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 43 37
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities (2) 2
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held (1) [3] 0 [4]
Variable Interest Entity Notes [Member] | Variable Interest Entity Primary Beneficiary [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Beginning balance, fair value liabilities 25 31
Total (gains)/losses included in earnings, liabilities 0 2
Unrealized (gains)/losses included in OCI, liabilities 0 [3] 0 [4]
Purchases, liabilities 0 0
Issuances, liabilities 0 0
Settlements, liabilities (1) (6)
Sales, liabilities 0 0
Transfers into Level 3, liabilities 0 0
Transfers out of Level 3, liabilities 0 0
Ending balance, fair value liabilities 24 27
Change in unrealized gains/(losses) for the period included in earnings for liabilities still held, liabilities 0 0
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held 0 [3] 0 [4]
Currency Derivatives [Member] | Variable Interest Entity Primary Beneficiary [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Beginning balance, fair value liabilities 12 6
Total (gains)/losses included in earnings, liabilities 0 0
Unrealized (gains)/losses included in OCI, liabilities 0 [3] 0 [4]
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 0 0
Change in Unrealized Gains/ (Losses) for the Period Included in OCI for Liabilities still held $ 0 [3] $ 0 [4]
[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 "Unrealized gains (losses) on available-for-sale securities" on the Company's consolidated statements of comprehensive income (loss).
[3] Reported within the "Instrument-specific credit risk of liabilities measured at fair value" on the Company's consolidated statements of comprehensive income (loss).
[4] Reported within the "Instrument-specific credit risk of liabilities measured at fair value" on the Company's consolidated statements of comprehensive income (loss).
[5] Includes loans carried at fair value of $18 million.
[6] Includes loans carried at fair value of $14 million
v3.26.1
Fair Value of Financial Instruments (Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Parenthetical) (Details) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Mar. 31, 2025
Corporate Obligations [Member] | Loans Carried at Fair Value [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans receivable at fair value $ 18 $ 17 $ 14
v3.26.1
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
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
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 $ 0 $ (15)
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 3 (3)
Total revenues $ 3 $ (3)
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)
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 $ 3 $ (3)
Total revenues 3 (1)
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 0 0
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 $ 0 $ 2
v3.26.1
Fair Value of Financial Instruments (Effects Of Derivative Instruments On Consolidated Statements Of Operations) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Net Gains (Losses) on Financial Instruments at Fair Value and Foreign Exchange [Member] | Interest rate swaps [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Interest rate swaps $ 0 $ 1
v3.26.1
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
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Accounts Notes And Loans Receivable [Line Items]    
Net gains (losses) on financial instruments at fair value and foreign exchange $ 0 $ (15)
Non Variable Interest Entity [Member]    
Accounts Notes And Loans Receivable [Line Items]    
Net gains (losses) on financial instruments at fair value and foreign exchange 0 (15)
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] (1) (2)
Loans Receivable at Fair Value [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] 0 2
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] 2 (2)
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] $ 0 $ (2)
[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/or "Other net realized gains (losses)-VIE" on the Company's consolidated statements of operations.
v3.26.1
Fair Value of Financial Instruments (Aggregate Fair Value And Remaining Contractual Principal Balance Outstanding On Fair Value Option) (Detail) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Residential Mortgage Loans [Member] | Loans Receivable [Member]    
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items]    
Loans receivable and other instruments, contractual outstanding principal $ 12 $ 12
Loans receivable and other instruments, 90 days or more past due, contractual outstanding principal 54 55
Loans receivable and other instruments, fair value 12 12
Loans receivable and other instruments, 90 days or more past due, fair value 22 22
Loans receivable and other instruments, difference 0 0
Loans receivable and other instruments, 90 days or more past due, difference 32 33
Corporate Loans - Current [Member] | Loans Receivable [Member]    
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items]    
Loans receivable and other instruments, contractual outstanding principal 20 19
Loans receivable and other instruments, fair value 18 17
Loans receivable and other instruments, difference 2 2
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 and other instruments, contractual outstanding principal 86 86
Loans receivable and other instruments, fair value 52 51
Loans receivable and other instruments, difference 34 35
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 38 39
Long-term debt instruments, fair value 24 25
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 58 59
Long-term debt instruments, fair value 43 46
Long-term debt instruments, difference $ 15 $ 13
v3.26.1
Investments (Amortized Cost And Fair Value Of Available-For-Sale and Held-To-Maturity Investment Portfolios) (Detail) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Available For Sale Securities [Abstract]    
Investment, Type [Extensible Enumeration] Fixed Maturities [Member] Fixed Maturities [Member]
Total available-for-sale, amortized cost $ 1,489 $ 1,464
Allowance for Credit Losess 0 0
Gross unrealized gains 5 7
Gross unrealized losses (136) (129)
Total available-for-sale, fair value 1,358 1,342
U.S. Treasury And Government Agency [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 448 478
Allowance for Credit Losess 0 0
Gross unrealized gains 0 0
Gross unrealized losses (10) (10)
Total available-for-sale, fair value 438 468
US States And Political Subdivisions [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 106 106
Allowance for Credit Losess 0 0
Gross unrealized gains 2 3
Gross unrealized losses (9) (8)
Total available-for-sale, fair value 99 101
Foreign Governments [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 7 7
Allowance for Credit Losess 0 0
Gross unrealized gains 0 0
Gross unrealized losses (2) (2)
Total available-for-sale, fair value 5 5
Corporate Obligations [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 504 462
Allowance for Credit Losess 0 0
Gross unrealized gains 0 1
Gross unrealized losses (101) (96)
Total available-for-sale, fair value 403 367
Residential Mortgage-Backed Agency [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 119 125
Allowance for Credit Losess 0 0
Gross unrealized gains 0 0
Gross unrealized losses (11) (11)
Total available-for-sale, fair value 108 114
Residential Mortgage-Backed Non-Agency [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 17 17
Allowance for Credit Losess 0 0
Gross unrealized gains 1 0
Gross unrealized losses (1) (1)
Total available-for-sale, fair value 17 16
Commercial Mortgage-Backed [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 8 10
Allowance for Credit Losess 0 0
Gross unrealized gains 0 0
Gross unrealized losses 0 0
Total available-for-sale, fair value 8 10
Collateralized Debt Obligations [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 63 30
Allowance for Credit Losess 0 0
Gross unrealized gains 1 1
Gross unrealized losses 0 0
Total available-for-sale, fair value 64 31
Other Asset-Backed [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Total available-for-sale, amortized cost 217 229
Allowance for Credit Losess 0 0
Gross unrealized gains 1 2
Gross unrealized losses (2) (1)
Total available-for-sale, fair value $ 216 $ 230
v3.26.1
Investments (Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments) (Detail) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Available For Sale Securities [Abstract]    
Due in one year or less $ 365  
Due after one year through five years 216  
Due after five years through ten years 134  
Due after ten years 350  
Mortgage-backed and asset-backed 424  
Total fixed-maturity investments 1,489  
Due in one year or less 365  
Due after one year through five years 207  
Due after five years through ten years 122  
Due after ten years 251  
Mortgage-backed and asset-backed 413  
Total fixed-maturity investments $ 1,358 $ 1,342
Investment, Type [Extensible Enumeration] Fixed Maturities [Member] Fixed Maturities [Member]
v3.26.1
Investments (Narrative) (Detail)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2026
USD ($)
Security
Dec. 31, 2025
USD ($)
Security
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 240 247
Rate that a security's fair value is below book value 5.00% 5.00%
Asset Pledged as Collateral [Member]    
Schedule Of Investments [Line Items]    
Fair value of securities pledged as collateral | $ $ 181 $ 183
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 13 years 14 years
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 212 200
v3.26.1
Investments (Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments) (Detail) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Available For Sale Securities [Abstract]    
Investment, Type [Extensible Enumeration] Fixed Maturities [Member] Fixed Maturities [Member]
Less than 12 months, fair value $ 228 $ 53
Less than 12 months, unrealized losses (1) (2)
12 months or longer, fair value 545 593
12 months or longer, unrealized losses (135) (127)
Total, fair value 773 646
Tota, unrealized losses (136) (129)
U.S. Treasury And Government Agency [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 12 2
Less than 12 months, unrealized losses 0 0
12 months or longer, fair value 95 122
12 months or longer, unrealized losses (10) (10)
Total, fair value 107 124
Tota, unrealized losses (10) (10)
State and municipal bonds [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 12 4
Less than 12 months, unrealized losses 0 0
12 months or longer, fair value 54 63
12 months or longer, unrealized losses (9) (8)
Total, fair value 66 67
Tota, unrealized losses (9) (8)
Foreign Governments [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 0 0
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 5
Tota, unrealized losses (2) (2)
Corporate Obligations [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 47 9
Less than 12 months, unrealized losses 0 (2)
12 months or longer, fair value 287 283
12 months or longer, unrealized losses (101) (94)
Total, fair value 334 292
Tota, unrealized losses (101) (96)
Residential Mortgage backed Agency [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 10 5
Less than 12 months, unrealized losses 0 0
12 months or longer, fair value 87 90
12 months or longer, unrealized losses (11) (11)
Total, fair value 97 95
Tota, unrealized losses (11) (11)
Residential Mortgage Backed Non 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 5 5
12 months or longer, unrealized losses (1) (1)
Total, fair value 10 10
Tota, unrealized losses (1) (1)
Commercial mortgage backed Securities [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 1 0
Less than 12 months, unrealized losses 0 0
12 months or longer, fair value 0 3
12 months or longer, unrealized losses 0 0
Total, fair value 1 3
Tota, unrealized losses 0 0
Collateralized debt obligations [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 62 8
Less than 12 months, unrealized losses 0 0
12 months or longer, fair value 0 0
12 months or longer, unrealized losses 0 0
Total, fair value 62 8
Tota, unrealized losses 0 0
Other asset backed [Member] | Fixed Maturities [Member]    
Available For Sale Securities [Abstract]    
Less than 12 months, fair value 79 20
Less than 12 months, unrealized losses (1) 0
12 months or longer, fair value 12 22
12 months or longer, unrealized losses (1) (1)
Total, fair value 91 42
Tota, unrealized losses $ (2) $ (1)
v3.26.1
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
Mar. 31, 2026
USD ($)
Security
Dec. 31, 2025
USD ($)
Available For Sale Securities [Abstract]    
Book Value $ 1,489  
Fair Value $ 1,358 $ 1,342
> 5% To 15% [Member] | Unrealized loss position > 12 months [Member]    
Available For Sale Securities [Abstract]    
Number of securities | Security 92  
Book Value $ 283  
Fair Value $ 254  
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 50  
Book Value $ 86  
Fair Value $ 69  
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 68  
Book Value $ 232  
Fair Value $ 145  
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 212  
Book Value $ 601  
Fair Value $ 468  
v3.26.1
Investments (Securities Held In Unrealized Loss Position And Insured By Financial Guarantor) (Detail) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Schedule Of Investments [Line Items]    
Fair value $ 773 $ 646
Financial Guarantee [Member]    
Schedule Of Investments [Line Items]    
Fair value 97  
Unrealized loss (50)  
Insurance loss reserve [1] 18  
Asset-backed [Member] | Financial Guarantee [Member]    
Schedule Of Investments [Line Items]    
Fair value 17  
Unrealized loss (1)  
Insurance loss reserve [1] 18  
Corporate Obligations [Member] | Financial Guarantee [Member]    
Schedule Of Investments [Line Items]    
Fair value 80  
Unrealized loss (49)  
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.
v3.26.1
Investments (Gross Realized Gains and Losses From Sales Of Available-For-Sale Securities) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Investments [Abstract]    
Proceeds from sales $ 0 $ 62
Available For Sale Securities Realized Gain Loss [Abstract]    
Gross realized gains 0 1
Gross realized losses $ 0 $ (6)
v3.26.1
Investments (Portion Of Unrealized Gains And Losses On Equity Investments Held) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Gain (Loss) on Investments [Line Items]    
Realized investment gains (losses) $ (0) $ (5)
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) (2) (3)
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) 0 2
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) $ (2) $ (5)
v3.26.1
Income Taxes (Income Taxes And Related Effective Tax Rates) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Disclosure Income Taxes Income Taxes And Related Effective Tax Rates [Abstract]    
Income (loss) from continuing operations before income taxes $ (41) $ (62)
Provision (benefit) for income taxes $ 0 $ 0
Effective tax rate 0.00% 0.00%
v3.26.1
Income Taxes (Narrative) (Detail) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Income Tax Disclosure [Abstract]    
NOL carryforward $ 4,300  
Foreign tax credit 55  
Valuation allowance on net deferred tax asset $ 1,400 $ 1,400
v3.26.1
Business Segments (Narrative) (Detail)
 3 Months Ended
Mar. 31, 2026
Segments
Disclosure Business Segments Summary Of Companys Segment Results [Abstract]  
Number of operating segments 3
Number of reportable segments 3
v3.26.1
Business Segments (Summary Of Company's Segment Results) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Segment Reporting Information [Line Items]      
Revenues $ 24 [1] $ 22 [2]  
Net gains (losses) on financial instruments at fair value and foreign exchange 0 (15)  
Revenues of consolidated VIEs   7  
Inter-segment revenues 0 [3] 0 [4]  
Total revenues 24 [5] 14 [6]  
Losses and loss adjustment (3) 8  
Compensation and benefits 10 9  
Interest 47 50  
Inter-segment service charge 0 0  
Other segment items 11 [7] 9 [8]  
Total expenses 65 76  
Income (loss) from continuing operations before income taxes (41) (62)  
Total assets per reportable segment 1,979 2,121  
Assets held for sale   11  
Total assets 1,979 2,132 $ 2,013
Operating Segments [Member] | US Public Finance Insurance [Member]      
Segment Reporting Information [Line Items]      
Revenues 15 [1] 11 [2]  
Net gains (losses) on financial instruments at fair value and foreign exchange (2) 0  
Revenues of consolidated VIEs   0  
Inter-segment revenues 6 [3] 6 [4]  
Total revenues 19 [5] 17 [6]  
Losses and loss adjustment 2 3  
Compensation and benefits 0 0  
Interest 0 0  
Inter-segment service charge 9 10  
Other segment items 4 [7] 4 [8]  
Total expenses 15 17  
Income (loss) from continuing operations before income taxes 4 0  
Total assets per reportable segment 1,480 1,551  
Operating Segments [Member] | Corporate Operations [Member]      
Segment Reporting Information [Line Items]      
Revenues 5 [1] 6 [2]  
Net gains (losses) on financial instruments at fair value and foreign exchange 1 (5)  
Revenues of consolidated VIEs   0  
Inter-segment revenues 13 [3] 15 [4]  
Total revenues 19 [5] 16 [6]  
Losses and loss adjustment 0 0  
Compensation and benefits 10 9  
Interest 17 18  
Inter-segment service charge 0 0  
Other segment items 3 [7] 4 [8]  
Total expenses 30 31  
Income (loss) from continuing operations before income taxes (11) (15)  
Total assets per reportable segment 639 685  
Operating Segments [Member] | International And Structured Finance Insurance [Member]      
Segment Reporting Information [Line Items]      
Revenues 4 [1] 5 [2]  
Net gains (losses) on financial instruments at fair value and foreign exchange 1 (10)  
Revenues of consolidated VIEs   7  
Inter-segment revenues 1 [3] 2 [4]  
Total revenues 6 [5] 4 [6]  
Losses and loss adjustment (5) 5  
Compensation and benefits 0 0  
Interest 36 38  
Inter-segment service charge 3 4  
Other segment items 6 [7] 4 [8]  
Total expenses 40 51  
Income (loss) from continuing operations before income taxes (34) (47)  
Total assets per reportable segment 661 821  
Intersegment Elimination [Member]      
Segment Reporting Information [Line Items]      
Revenues 0 [1] 0 [2]  
Net gains (losses) on financial instruments at fair value and foreign exchange 0 0  
Revenues of consolidated VIEs   0  
Inter-segment revenues (20) [3] (23) [4]  
Total revenues (20) [5] (23) [6]  
Losses and loss adjustment 0 0  
Compensation and benefits 0 0  
Interest (6) (6)  
Inter-segment service charge (12) (14)  
Other segment items (2) [7] (3) [8]  
Total expenses (20) (23)  
Income (loss) from continuing operations before income taxes 0 0  
Total assets per reportable segment $ (801) [9] $ (936) [10]  
[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) and other net realized gains (losses).
[3] Primarily represents intercompany service charges and intercompany net investment income.
[4] Primarily represents intercompany service charges and intercompany net investment income.
[5] Includes net investment income of $15 million, $6 million, $3 million, and ($6) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.
[6] Includes net investment income of $15 million, $7 million, $3 million, and ($7) million for the U.S. Public Finance, Corporate, International and Structured Finance, and Eliminations segments, respectively.
[7] Other segment items for each reportable segment include:

a. U.S. Public Finance Insurance - amortization of deferred acquisition costs ("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.
[8] 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.
[9] Consists principally of intercompany reinsurance balances.
[10] Consists principally of intercompany reinsurance balances.
v3.26.1
Business Segments (Summary Of Company's Segment Results) (Parenthetical) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Operating Segments [Member] | U S Public Finance Insurance [Member]    
Segment Reporting Information [Line Items]    
Net investment income $ 15 $ 15
Operating Segments [Member] | Corporate Operations [Member]    
Segment Reporting Information [Line Items]    
Net investment income 6 7
Operating Segments [Member] | International And Structured Finance Insurance [Member]    
Segment Reporting Information [Line Items]    
Net investment income 3 3
Intersegment Eliminations [Member]    
Segment Reporting Information [Line Items]    
Net investment income $ (6) $ (7)
v3.26.1
Earnings Per Share (Computation Of Basic And Diluted Earnings Per Share) (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Basic and diluted earnings per share:    
Net income (loss) from continuing operations available to common shareholders $ (41) $ (62)
Less: Net income (loss) from continuing operations attributable to noncontrolling interests (2) 0
Net income (loss) from continuing operations attributable to MBIA Inc. (41) (62)
Net income (loss) from discontinued operations attributable to MBIA Inc. (1) 0
Net income (loss) attributable to MBIA Inc. $ (40) $ (62)
Basic weighted average shares [1] 49,796,216 48,354,307
Diluted weighted average shares [1] 49,796,216 48,354,307
Continuing operations - Basic $ (0.79) $ (1.28)
Continuing operations - Diluted (0.79) (1.28)
Discontinued operations - Basic (0.01) 0
Discontinued operations - Diluted (0.01) (0)
Net income (loss) per share attributable to MBIA Inc. - basic (0.8) (1.28)
Net income (loss) per share attributable to MBIA Inc. - diluted $ (0.8) $ (1.28)
Potentially dilutive securities excluded from the calculation of diluted EPS because of antidilutive affect 800,000 900,000
MBIA Inc. [Member]    
Basic and diluted earnings per share:    
Net income (loss) from continuing operations attributable to MBIA Inc. $ (39) $ (62)
Net income (loss) from discontinued operations attributable to MBIA Inc. $ (1) $ 0
[1] Includes approximately 1 million of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend equivalents for the three months ended March 31, 2026 and 2025.
v3.26.1
Earnings Per Share (Narrative) (Detail) - shares
shares in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Antidilutive Shares [Abstract]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 1 1
v3.26.1
Accumulated Other Comprehensive Income (Changes In The Components Of AOCI) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance $ (2,237)  
Other comprehensive income (loss) (8) $ 29
Ending balance (2,283)  
Accumulated Other Comprehensive Income [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance (95)  
Other comprehensive income (loss) (8)  
Ending balance (103)  
Unrealized gains (losses) on AFS, net [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance (114)  
Other comprehensive income (loss) (9)  
Ending balance (123)  
Instrument-specific credit risk of liabilities measured at fair value, net [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance 19  
Other comprehensive income (loss) 1  
Ending balance 20  
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 19  
Ending balance $ 20  
v3.26.1
Accumulated Other Comprehensive Income (Details Of The Reclassification From AOCI) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Net gains (losses) on financial instruments at fair value and foreign exchange $ 0 $ (15)
Net income (loss) attributable to MBIA Inc. (40) (62)
Amounts reclassified from AOCI [Member]    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Net income (loss) attributable to MBIA Inc. 0 (12)
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) 0 (7)
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 $ 0 $ (5)
v3.26.1
Commitments and Contingencies (Narrative) (Detail)
Mar. 31, 2026
LegalProceedings
Commitments And Contingencies [Line Items]  
Other material legal proceedings pending 0