The Company's insurance policies and credit derivative contracts are written in different forms, but collectively are considered financial guaranty contracts. They typically guarantee the scheduled payments of principal and interest ("Debt Service") on public finance and structured finance obligations. The Company seeks to limit its exposure to losses by underwriting obligations that are investment grade at inception, diversifying its portfolio and maintaining rigorous subordination or collateralization requirements on structured finance obligations. The Company also has utilized reinsurance by ceding business to third party reinsurers. The Company provides financial guaranties with respect to debt obligations of special purpose entities, including VIEs. Based on accounting standards in effect during any given reporting period, some of these VIEs are consolidated as described in Note 7. The outstanding par and Debt Service amounts presented below include outstanding exposures on VIEs, whether or not they are consolidated.

		Gross Debt Service Outstanding				Net Debt Service Outstanding

		June 30, 2011		December 31, 2010		June 30, 2011		December 31, 2010
		(in millions)
Public finance		$	826,907	$	851,634	$	739,493	$	760,167
Structured finance			157,646		178,348		147,275		166,976

	Total	$	984,553	$	1,029,982	$	886,768	$	927,143

		As of June 30, 2011

		Public Finance U.S.					Public Finance Non-U.S.					Structured Finance U.S					Structured Finance Non-U.S					Total
Rating Category		Net Par Outstanding		%			Net Par Outstanding		%			Net Par Outstanding		%			Net Par Outstanding		%			Net Par Outstanding		%
		(dollars in millions)
Super senior		$	—		—	%	$	1,507		3.7	%	$	19,957		19.2	%	$	7,683		26.8	%	$	29,147		5.0	%
AAA			5,078		1.2			1,379		3.3			38,175		36.7			12,722		44.3			57,354		9.8
AA			151,571		36.7			1,145		2.8			14,236		13.7			1,606		5.6			168,558		28.7
A			211,736		51.2			12,517		30.4			5,721		5.5			1,610		5.6			231,584		39.4
BBB			41,939		10.2			22,318		54.1			5,248		5.0			3,273		11.3			72,778		12.4
BIG			2,950		0.7			2,360		5.7			20,641		19.9			1,824		6.4			27,775		4.7

	Total net par outstanding	$	413,274		100.0	%	$	41,226		100.0	%	$	103,978		100.0	%	$	28,718		100.0	%	$	587,196		100.0	%

		As of December 31, 2010

		Public Finance U.S.					Public Finance Non-U.S.					Structured Finance U.S					Structured Finance Non-U.S					Total
Rating Category		Net Par Outstanding		%			Net Par Outstanding		%			Net Par Outstanding		%			Net Par Outstanding		%			Net Par Outstanding		%
		(dollars in millions)
Super senior		$	—		—	%	$	1,420		3.5	%	$	21,837		18.4	%	$	7,882		25.7	%	$	31,139		5.0	%
AAA			5,784		1.4			1,378		3.4			45,067		37.9			13,573		44.3			65,802		10.7
AA			161,906		37.9			1,330		3.3			17,355		14.6			1,969		6.4			182,560		29.6
A			214,199		50.2			12,482		30.6			6,396		5.4			1,873		6.1			234,950		38.1
BBB			41,948		9.8			22,338		54.8			7,543		6.4			4,045		13.2			75,874		12.3
BIG			3,159		0.7			1,795		4.4			20,558		17.3			1,294		4.3			26,806		4.3

	Total net par outstanding	$	426,996		100.0	%	$	40,743		100.0	%	$	118,756		100.0	%	$	30,636		100.0	%	$	617,131		100.0	%

In addition to amounts shown in the tables above, the Company had outstanding commitments to provide guaranties of $3.9 billion for structured finance and $1.7 billion for public finance commitments at June 30, 2011. The structured finance commitments include the unfunded component of pooled corporate and other transactions. Public finance commitments typically relate to primary and secondary public finance debt issuances. The expiration dates for the public finance commitments range between July 1, 2011 and February 1, 2019, with $1.3 billion expiring prior to December 31, 2011. All the commitments are contingent on the satisfaction of all conditions set forth in them and may expire unused or be cancelled at the counterparty's request. Therefore, the total commitment amount does not necessarily reflect actual future guaranteed amounts.

The Company segregates its insured portfolio into investment grade and BIG surveillance categories to facilitate the appropriate allocation of resources to monitoring and loss mitigation efforts and to aid in establishing the appropriate cycle for periodic review for each exposure. BIG exposures include all exposures with internal credit ratings below BBB-. The Company's internal credit ratings are based on internal assessment of the likelihood of default. Internal credit ratings are expressed on a ratings scale similar to that used by the rating agencies and are generally reflective of an approach similar to that employed by the rating agencies.

The Company monitors its investment grade credits to determine whether any new credits need to be internally downgraded to BIG. The Company refreshes its internal credit ratings on individual credits in quarterly, semi-annual or annual cycles based on the Company's view of the credit's quality, loss potential, volatility and sector. Ratings on credits in sectors identified as under the most stress or with the most potential volatility are reviewed every quarter. The Company's insured credit ratings on assumed credits are based on the Company's independent reviews of low-rated credits or credits in volatile sectors, unless such information is not available, in which case, the ceding company's credit rating of the transactions are used. For example, the Company models all assumed RMBS credits with par above $1 million, as well as certain RMBS credits below that amount.

Credits identified as BIG are subjected to further review to determine the probability of a loss (see Note 4 "Loss estimation process"). Surveillance personnel then assign each BIG transaction to the appropriate BIG surveillance category based upon whether a lifetime loss is expected and whether a claim has been paid. The Company expects "lifetime losses" on a transaction when the Company believes there is more than a 50% chance that, on a present value basis, it will pay more claims over the life of that transaction than it will ultimately have been reimbursed. For surveillance purposes, the Company calculates present value using a constant discount rate of 5%. (A risk-free rate is used for recording of reserves for financial statement purposes.) A "liquidity claim" is a claim that the Company expects to be reimbursed within one year.

Intense monitoring and intervention is employed for all BIG surveillance categories, with internal credit ratings reviewed quarterly. The three BIG categories are:

Included in the BIG first lien RMBS exposures below is $1.9 billion of net par outstanding related to transactions covered by the Bank of America Agreement, which represents 17% of the U.S. RMBS first lien net par outstanding as of June 30, 2011. Under the Bank of America Agreement, 80% of first lien claims paid by Assured Guaranty will be reimbursed, until such time as losses on the collateral underlying the RMBS on which Assured Guaranty is paying claims reach $6.6 billion.

				June 30, 2011

				BIG Net Par Outstanding
				BIG Net Par Outstanding								Net Par Outstanding		BIG Net Par as a % of Net Par Outstanding
				BIG 1		BIG 2		BIG 3		Total BIG		Net Par Outstanding		BIG Net Par as a % of Net Par Outstanding
				(in millions)
First lien U.S. RMBS:
	Prime first lien			$	26	$	582	$	—	$	608	$	786		0.1	%
	Alt-A first lien				1,127		2,397		1,487		5,011		5,731		0.9
	Option ARM				0		1,302		1,260		2,562		2,809		0.4
	Subprime (including net interest margin securities)				334		2,468		212		3,014		8,572		0.5
Second lien U.S. RMBS:
	Closed-end second lien				153		438		467		1,058		1,087		0.2
	Home equity lines of credit ("HELOCs")				470		—		3,134		3,604		4,281		0.6

		Total U.S. RMBS			2,110		7,187		6,560		15,857		23,266		2.7
Other structured finance					3,756		424		2,428		6,608		109,430		1.1
Public finance					4,241		204		865		5,310		454,500		0.9

			Total	$	10,107	$	7,815	$	9,853	$	27,775	$	587,196		4.7	%

				December 31, 2010

				BIG Net Par Outstanding
				BIG Net Par Outstanding								Net Par Outstanding		BIG Net Par as a % of Net Par Outstanding
				BIG 1		BIG 2		BIG 3		Total BIG		Net Par Outstanding		BIG Net Par as a % of Net Par Outstanding
				(in millions)
First lien U.S. RMBS:
	Prime first lien			$	82	$	542	$	—	$	624	$	849		0.1	%
	Alt-A first lien				976		3,108		573		4,657		6,134		0.8
	Option ARM				33		2,186		640		2,859		3,214		0.5
	Subprime (including net interest margin securities)				729		2,248		106		3,083		9,039		0.4
Second lien U.S. RMBS:
	Closed-end second lien				63		444		624		1,131		1,164		0.2
	HELOCs				369		—		3,632		4,001		4,730		0.6

		Total U.S. RMBS			2,252		8,528		5,575		16,355		25,130		2.6
Other structured finance					2,758		292		2,447		5,497		124,262		0.9
Public finance					3,752		283		919		4,954		467,739		0.8

			Total	$	8,762	$	9,103	$	8,941	$	26,806	$	617,131		4.3	%

		As of June 30, 2011

		Net Par Outstanding						Number of Risks(3)
Description		Financial Guaranty Insurance(1)		Credit Derivative(2)		Total		Financial Guaranty Insurance(1)		Credit Derivative(2)		Total
		(dollars in millions)
BIG:
	Category 1	$	6,877	$	3,230	$	10,107		151		30		181
	Category 2		5,038		2,777		7,815		84		44		128
	Category 3		7,424		2,429		9,853		129		23		152

Total BIG		$	19,339	$	8,436	$	27,775		364		97		461

		As of December 31, 2010

		Net Par Outstanding						Number of Risks(3)
Description		Financial Guaranty Insurance(1)		Credit Derivative(2)		Total		Financial Guaranty Insurance(1)		Credit Derivative(2)		Total
		(dollars in millions)
BIG:
	Category 1	$	5,521	$	3,241	$	8,762		120		31		151
	Category 2		5,646		3,457		9,103		97		50		147
	Category 3		7,281		1,660		8,941		115		13		128

Total BIG		$	18,448	$	8,358	$	26,806		332		94		426

(1): Represents contracts accounted for as financial guaranty insurance. See Note 4.
(2): Represents contracts accounted for as credit derivatives and carried at fair value on the consolidated balance sheets. See Note 6.
(3): A risk represents the aggregate of the financial guaranty policies that share the same revenue source for purposes of making debt service payments.