Consolidation of Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2011

Consolidation of Variable Interest Entities

Schedule of impact of adopting consolidation of VIE standard

	As of December 31, 2009			Transition Adjustment			As of January 1, 2010
	(in millions)
Assets:
Premiums receivable, net of ceding commissions payable	$	1,418.2		$	(19.1	)	$	1,399.1
Deferred tax asset, net		1,163.0			111.2			1,274.2
Financial guaranty variable interest entities' assets		762.3			1,163.0			1,925.3
Total assets		16,779.4			1,255.1			18,034.5
Liabilities and shareholders' equity:
Unearned premium reserve		8,381.0			(113.0	)		8,268.0
Financial guaranty variable interest entities' liabilities with recourse		762.7			1,348.2			2,110.9
Financial guaranty variable interest entities' liabilities without recourse		—			226.0			226.0
Total liabilities		13,270.5			1,461.2			14,731.7
Retained earnings		778.7			(206.5	)		572.2
Total shareholders' equity attributable to Assured Guaranty Ltd.		3,509.3			(206.5	)		3,302.8
Noncontrolling interest of financial guaranty variable interest entities		(0.4	)		0.4			—
Total shareholders' equity		3,508.9			(206.1	)		3,302.8
Total liabilities and shareholders' equity		16,779.4			1,255.1			18,034.5

Consolidated FG VIEs By Type of Collateral

	As of December 31, 2011						As of December 31, 2010
	Number of VIEs		Assets		Liabilities		Number of VIEs		Assets		Liabilities
	(dollars in millions)
HELOCs		8	$	616.0	$	951.0		8	$	857.1	$	1,126.1
First liens:
Alt-A first lien		3		146.6		134.8		—		—		—
Option ARM		2		524.4		719.3		2		626.6		909.4
Subprime		5		414.5		500.4		5		528.7		616.5
Closed-end second lien		10		600.2		635.5		5		747.4		818.4
Automobile loans		4		227.6		227.6		7		486.8		486.8
Life insurance		1		289.8		289.8		1		304.8		304.8
Credit card loans		—		—		—		1		106.1		106.1
Total		33	$	2,819.1	$	3,458.4		29	$	3,657.5	$	4,368.1

Gross Par Outstanding for FG VIEs Liabilities With Recourse

	As of December 31, 2011		As of December 31, 2010
	(in millions)
Gross par outstanding for FG VIEs' liabilities with recourse	$	3,796.4	$	3,630.5

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

Contractual Maturity	As of December 31, 2011
	(in millions)
2012	$	—
2013	$	15.7
2014		138.9
2015		—
2016		—
Thereafter		3,641.8
Total	$	3,796.4

Effect of Consolidating FG VIEs on Net Income and Shareholder's Equity

	Year Ended December 31,
	2011			2010			2009
	(in millions)
Net earned premiums	$	(74.7	)	$	(47.6	)	$	—
Net investment income		(8.3	)		—			—
Net realized investment gains (losses)		11.9			—			—
Net change in fair value of FG VIEs		(132.0	)		(273.6	)		(1.2	)
Loss and LAE		92.7			65.9			—
Total pretax effect on net income		(110.4	)		(255.3	)		(1.2	)
Less: tax provision (benefit)		(38.7	)		(89.4	)		—
Total effect on net income	$	(71.7	)	$	(165.9	)	$	(1.2	)

	As of December 31, 2011			As of December 31, 2010
	(in millions)
Total (decrease) increase on shareholders' equity	$	(405.2	)	$	(371.4	)

(1)

Includes the effect of eliminating insurance balances related to the financial guaranty insurance contracts.