MBIA (US:MBI)2021-03-01 21:51Financial Performance - As of December 31, 2020, National had $41.9 billion of insured gross par outstanding on U.S. public finance obligations covering 2,470 policies[29]. - Insurance in force as of December 31, 2020 was $81.5 billion, with an average annual insured debt service of $5.5 billion[30]. - MBIA Corp.'s gross par amount outstanding of insured obligations was $7.7 billion, with insurance in force totaling $9.9 billion as of December 31, 2020[32]. - National declared and paid dividends of $81 million in Q4 2020, compared to $134 million in Q4 2019[16]. - The Company redeemed $115 million principal amount of its 6.400% Senior Notes due 2022 during 2020[16]. Insurance and Risk Management - The average life of National's domestic public finance insurance policies in force was estimated at 9 years as of December 31, 2020[29]. - MBIA Corp. estimates the average life of its international and structured finance insurance policies in force is 6 years as of December 31, 2020[33]. - National's ten largest insured U.S. public finance credits totaled $9.1 billion, representing 21.7% of its total U.S. public finance gross par amount outstanding[30]. - The Company conducts ongoing credit surveillance for U.S. public finance, focusing on economic and political trends, issuer debt management, and cash flow adequacy under stress[43]. - The Company monitors international public finance credits by assessing country risk, local regulatory oversight, and economic factors, with increased review frequency for downgraded exposures[43]. - The Company uses an internal credit rating system to rank credits, with performance issues categorized into "Caution List" and "Classified List" for potential claims[45]. - The Company measures market risk on a consolidated basis, focusing on interest rates, credit spreads, and foreign exchange rates, using various models to test exposure under market stress scenarios[49]. - The Operational Risk function identifies vulnerabilities to operational disruptions and reports periodically to the Risk Oversight Committee and Audit Committee[50]. - The company currently has third-party reinsurance agreements covering 3% of its insured par outstanding, with no immediate plans to reduce insured exposure through reinsurance[66]. - National reported non-compliance with certain single risk limits as of December 31, 2020, due to changes in statutory capital, although it was compliant with aggregate risk limits[77]. Corporate Governance and Management - The executive officers of the Company include William C. Fallon as CEO since July 2005 and Anthony McKiernan as CFO since May 2012[95][96]. - The Board of Directors appointed William C. Fallon as CEO on September 15, 2017, and Anthony McKiernan as CFO on March 11, 2016[96]. - Jonathan C. Harris serves as General Counsel and Secretary, appointed on May 3, 2017[97]. - Daniel M. Avitabile is the Chief Risk Officer of MBIA Corp., appointed on March 11, 2016[98]. - Adam T. Bergonzi oversees risk and insured portfolio management activities as Chief Risk Officer of National since 2010[99]. - Christopher H. Young has been the Chief Financial Officer of National since March 2009[100]. - Joseph R. Schachinger has served as Controller since May 2017[100]. Operational and Strategic Initiatives - The Company maintains a stable liquidity position, expected to service obligations over the next several years without needing to access capital markets[14]. - The Company has a designated Model Governance Team to enhance the consistency, reliability, and transparency of its models, mitigating model risk on an enterprise-wide basis[42]. - The Company has invested in imaging technology to reduce paper usage, promoting a paperless office environment[52]. - The Company has paid out over $20 million in matching gifts and nearly $12 million in grants through the MBIA Foundation since its inception[61]. - The Company implemented business continuity plans in response to the COVID-19 pandemic, with all employees working remotely until conditions permit a safe return[63]. Regulatory and Compliance - The company is subject to insurance regulation and supervision by the State of New York, with specific requirements for solvency and business conduct[68]. - MBIA Insurance Corporation is exempt from assessments by insurance guarantee funds in most states where it operates, as it primarily writes municipal bond insurance and financial guarantee insurance[82]. - The company is required to maintain contingency reserves, contributing 50% of premiums earned on policies written prior to July 1, 1989, and over a period of 15 or 20 years for policies written after that date[75]. - The company does not maintain a capital facility and relies on its investment policies to optimize capital resources[86]. - The company does not maintain a contractual relationship with major rating agencies, but Moody's continues to maintain ratings at its discretion[85]. - The Company has made available certain confidential information subject to a non-disclosure agreement[91]. - The Company maintains a website where it provides access to SEC filings, but this information is not incorporated by reference into its Form 10-K[89].