Reinsurance (Tables)

6 Months Ended

Jun. 30, 2011

Reinsurance

Net Effect of Commutations and Cancellations of Reinsurance Contracts

	Second Quarter					Six Months
	2011			2010		2011			2010
	(in millions)
Increase (decrease) in net unearned premium reserve	$	(22.4	)	$	6.2	$	(20.1	)	$	60.4
Increase (decrease) in net par	(1,045		)	537		(780		)	8,374

Direct, Assumed and Ceded Premium and Loss and LAE

	Second Quarter						Six Months
	2011			2010			2011			2010
	(in millions)
	(restated)			(restated)			(restated)			(restated)
Premiums Written:
Direct	$	26.9		$	102.0		$	57.4		$	195.7
Assumed(1)	(9.9		)	(10.1		)	(51.9		)	(11.8		)
Ceded(2)	0.4			6.5			4.4			58.1
Net	$	17.4		$	98.4		$	9.9		$	242.0
Premiums Earned:
Direct	$	238.6		$	309.4		$	514.9		$	636.1
Assumed	21.0			17.9			31.0			36.9
Ceded	(29.6		)	(30.3		)	(61.9		)	(61.3		)
Net	$	230.0		$	297.0		$	484.0		$	611.7
Loss and LAE:
Direct	$	129.4		$	77.3		$	136.5		$	220.2
Assumed	7.2			12.4			(5.8		)	40.5
Ceded	(12.7		)	(4.0		)	(32.3		)	(64.1		)
Net	$	123.9		$	85.7		$	98.4		$	196.6

(1) Negative assumed premiums written were due to commutations and changes in expected debt service schedules.

(2) Positive ceded premiums written were due to commutations and changes in expected debt service schedules.

Exposure by Reinsurer

	Ratings at August 3, 2011		Par Outstanding as of June 30, 2011
Reinsurer	Moody’s Financial Strength Rating	S&P Financial Strength Rating	Ceded Par Outstanding(3)		Second-to- Pay Insured Par Outstanding		Assumed Par Outstanding
	(dollars in millions)
Radian Asset Assurance Inc.	Ba1	BB-	$	20,859	$	56	$	—
Tokio Marine & Nichido Fire Insurance Co., Ltd.	Aa2(1)	AA-(1)	17,966		—		933
RAM Reinsurance Co. Ltd.	WR(2)	WR(2)	12,701		—		24
Syncora Guarantee Inc.	Ca	WR	4,334		2,323		217
Mitsui Sumitomo Insurance Co. Ltd.	Aa3	AA-	2,442		—		—
ACA Financial Guaranty Corp	NR	WR	866		13		2
Swiss Reinsurance Co.	A1	A+	512		—		—
Ambac	WR	WR	87		7,700		23,593
CIFG Assurance North America Inc.	WR	WR	69		258		10,158
MBIA Insurance Corporation	B3	B	45		11,704		10,773
Financial Guaranty Insurance Co.	WR	WR	—		3,854		2,350
Other	Various	Various	1,052		2,061		100
Total			$	60,933	$	27,969	$	48,150

(1) The Company has structural collateral agreements satisfying the triple-A credit requirement of S&P and/or Moody’s.

(2) Represents “Withdrawn Rating.”

(3) Includes $6,534 million in ceded par outstanding related to insured credit derivatives.

Amounts Due (To) From Reinsurers

	As of June 30, 2011
	Assumed Premium Receivable, net of Commissions		Assumed Expected Loss and LAE			Ceded Expected Loss and LAE
	(in millions)
Radian Asset Assurance Inc.	$	—	$	—		$	13.7
Tokio Marine & Nichido Fire Insurance Co., Ltd.	—		—			47.3
RAM Reinsurance Co. Ltd.	—		—			9.1
Syncora Guarantee Inc.	—		(0.3		)	0.1
Mitsui Sumitomo Insurance Co. Ltd.	—		—			2.9
Swiss Reinsurance Co.	—		—			1.6
Ambac	111.3		(98.4		)	—
CIFG Assurance North America Inc.	7.1		(1.2		)	1.3
MBIA Insurance Corporation	1.2		(21.0		)	—
Financial Guaranty Insurance Co.	13.4		(31.0		)	—
Total	$	133.0	$	(151.9	)	$	76.0