The structured finance and international insurance segment had an adjusted pre-tax loss of $300 million for the fourth quarter of 2011 compared with an adjusted pre-tax loss of $487 million for the fourth quarter of 2010. Premiums earned, net investment income, fees and reimbursements, and premiums and fees on insured derivatives totaled $128 million in the fourth quarter of 2011. All other line items in the aggregate, except losses and credit impairments (a non-GAAP measure defined in the attached Explanation of Non-GAAP Financial Measures), had a net $119 million negative impact on the adjusted pre-tax loss. Losses, credit impairments and loss-related expenses on insured exposures totaled $309 million in the fourth quarter of 2011, compared with $556 million in the fourth quarter of 2010.The following is a summary of MBIA Corp.’s insured portfolio economic loss activity in the fourth quarter. Economic losses for a reporting period represent the change in the Company’s estimate of the present value of expected net future claims payments without regard to the manner in which they are presented in the Company’s financial statements.
|4Q 2011 Economic Loss (Benefit)|
|($ in millions)||RMBS||ABS CDOs||CMBS||Other*||Total|
|Change in Expected Payments||$90||($137||)||$782||$10||$745|
|Change in Expected Salvage||(444||)||16||0||(8||)||(436||)|
|Total Economic Losses (Benefit)||($354||)||($121||)||$782||$2||$309|
|*includes first-lien RMBS|