Consolidation of Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2011

Consolidation of Variable Interest Entities

Consolidated FG VIEs By Type of Collateral

		As of June 30, 2011				As of December 31, 2010
		Assets		Liabilities		Assets		Liabilities
		(in millions)
HELOCs		$	780.4	$	990.1	$	857.1	$	1,021.2
First liens:
	Alt-A		173.6		165.4		—		—
	Subprime		466.2		551.8		528.7		612.7
	Option ARM		651.1		876.6		626.6		910.6
Alt-A second liens			760.6		793.4		747.4		822.0
Automobile loans			333.3		333.3		486.8		486.8
Life insurance			327.0		327.0		304.8		304.8
Credit card loans			—		—		106.1		106.1
	Total	$	3,492.2	$	4,037.6	$	3,657.5	$	4,264.2

Effect of Consolidating FG VIEs on Net Income and Shareholders' Equity

			Second Quarter						Six Months
			2011			2010			2011			2010
			(in millions)
Net earned premiums			$	(18.3	)	$	(15.6	)	$	(37.4	)	$	(21.6	)
Net investment income				(0.7	)		—			(0.7	)		—
Net realized investment gains (losses)				0.2			—			0.5			—
Net change in fair value of financial guaranty variable interest entities:
	Interest income			80.7			54.4			163.4			115.3
	Interest expense			(36.9	)		(20.6	)		(76.5	)		(44.7	)
	Net realized and unrealized gains (losses) on assets(1)			(306.8	)		(73.5	)		(72.4	)		(130.2	)
	Net realized and unrealized gains (losses) on liabilities with recourse			(5.4	)		50.2			(41.3	)		75.9
	Net realized and unrealized gains (losses) on liabilities without recourse			86.5			8.6			(49.0	)		14.4
	Other income			6.9			—			20.9			—
	Other expenses			(18.7	)		(18.6	)		(44.9	)		(40.8	)
		Net change in fair value of financial guaranty variable interest entities		(193.7	)		0.5			(99.8	)		(10.1	)
Loss and loss adjustment expenses				19.6			24.3			71.5			34.3
		Total pretax effect on net income		(192.9	)		9.2			(65.9	)		2.6
Less: tax provision (benefit)				(67.5	)		3.2			(23.0	)		0.9
		Total effect on net income		(125.4	)	$	6.0			(42.9	)	$	1.7

	As of June 30, 2011			As of December 31, 2010
Total effect on shareholders' equity	$	(308.6	)	$	(311.8	)

(1)

Includes the effect of initially consolidating and/or deconsolidating VIEs based on changes in AGM's and AGC's assessment of its control rights over servicer or collateral manager replacement during the period.

Contractual Maturity Schedule of FG VIE Liabilities with Recourse Gross Par Outstanding

Contractual Maturity		As of June 30, 2011
		(in millions)
2011		$	—
2012			8.0
2013			20.1
2014			166.4
2015			—
Thereafter			3,772.0
	Total	$	3,966.5