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Reinsurance and Other Monoline Exposures (Tables)
 9 Months Ended
Sep. 30, 2012
Reinsurance and Other Monoline Exposures [abstract]  
Net Effect of Commutations and Cancellations of Reinsurance Contracts
Net Effect of Commutations of Ceded
Reinsurance Contracts 
 
Third Quarter
 
Nine Months
 
2012
 
2011
 
2012
 
2011
 
(in millions)
Increase (decrease) in net unearned premium reserve
$
2

 
$
—

 
$
108

 
$
(20
)
Increase (decrease) in net par outstanding
9

 
—

 
19,082

 
(780
)
Direct, assumed, and ceded premium and loss and LAE amounts
Effect of Reinsurance on Statement of Operations 
 
Third Quarter
 
Nine Months
 
2012
 
2011
 
2012
 
2011
 
(in millions)
Premiums Written:
 

 
 

 
 
 
 
Direct
$
24

 
$
37

 
$
131

 
$
94

Assumed(1)
0

 
(15
)
 
13

 
(67
)
Ceded(2)
1

 
1

 
88

 
6

Net
$
25

 
$
23

 
$
232

 
$
33

Premiums Earned:
 

 
 

 
 
 
 
Direct
$
242

 
$
227

 
$
694

 
$
742

Assumed
13

 
4

 
39

 
35

Ceded
(33
)
 
(20
)
 
(98
)
 
(82
)
Net
$
222

 
$
211

 
$
635

 
$
695

Loss and LAE:
 

 
 

 
 
 
 
Direct
$
112

 
$
244

 
$
558

 
$
380

Assumed
(4
)
 
(2
)
 
13

 
(7
)
Ceded
(18
)
 
(27
)
 
(112
)
 
(60
)
Net
$
90

 
$
215

 
$
459

 
$
313

 ____________________
(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
Exposure by Reinsurer
 
 
 
 
 
Par Outstanding
 
 
Ratings at November 7, 2012
 
As of September 30, 2012
Reinsurer
 
Moody’s
Reinsurer
Rating
 
S&P
Reinsurer
Rating
 
Ceded Par
Outstanding(1)
 
Second-to-
Pay Insured
Par
Outstanding
 
Assumed Par
Outstanding
 
 
(dollars in millions)
American Overseas Reinsurance Company Limited(2)
 
WR(3)
 
WR
 
$
10,309

 
$
—

 
$
24

Tokio
 
Aa3(4)
 
AA-(4)
 
8,748

 
—

 
937

Radian
 
Ba1
 
B+
 
5,364

 
44

 
1,474

Syncora Guarantee Inc.
 
Ca
 
WR
 
4,092

 
2,043

 
165

Mitsui Sumitomo Insurance Co. Ltd.
 
A1
 
A+
 
2,256

 
—

 
—

ACA Financial Guaranty Corp.
 
NR
 
WR
 
829

 
6

 
1

Swiss Reinsurance Co.
 
A1
 
AA-
 
434

 
—

 
—

Ambac
 
WR
 
WR
 
85

 
7,151

 
21,231

CIFG Assurance North America Inc.
 
WR
 
WR
 
65

 
255

 
5,583

MBIA Inc.
 
(5)
 
(5)
 
—

 
11,497

 
8,798

Financial Guaranty Insurance Co.
 
WR
 
WR
 
—

 
3,336

 
2,020

Other
 
Various
 
Various
 
1,008

 
2,064

 
96

Total
 
 
 
 
 
$
33,190

 
$
26,396

 
$
40,329

____________________
(1)
Includes $4,198 million in ceded par outstanding related to insured credit derivatives.
 
(2)
Formerly RAM Reinsurance Company Ltd.
 
(3)
Represents “Withdrawn Rating.”
 
(4)
The Company has structural collateral agreements satisfying the triple-A credit requirement of S&P and/or Moody’s.
 
(5)
MBIA Inc. includes various subsidiaries which are rated BBB by S&P and Baa2, B3, WR and NR by Moody’s.
Amounts Due (To) From Reinsurers
Amounts Due (To) From Reinsurers
 
 
As of September 30, 2012
 
Assumed
Premium, net
of Commissions
 
Ceded
Premium, net
of Commissions
 
Assumed
Expected
Loss and LAE
 
Ceded
Expected
Loss and LAE
 
(in millions)
American Overseas Reinsurance Company Limited
$
—

 
$
(12
)
 
$
—

 
$
12

Tokio
—

 
(23
)
 
—

 
35

Radian
—

 
(18
)
 
—

 
(4
)
Syncora Guarantee Inc.
—

 
(37
)
 
1

 
—

Mitsui Sumitomo Insurance Co. Ltd.
—

 
(5
)
 
—

 
8

Swiss Reinsurance Co.
—

 
(3
)
 
—

 
1

Ambac
81

 
—

 
(85
)
 
—

CIFG Assurance North America Inc.
—

 
—

 
—

 
2

MBIA Inc.
—

 
—

 
(22
)
 
—

Financial Guaranty Insurance Co.
9

 
—

 
(30
)
 
—

Other
—

 
(40
)
 
—

 
—

Total
$
90

 
$
(138
)
 
$
(136
)
 
$
54