Outstanding Exposure (Tables)

12 Months Ended

Dec. 31, 2012



	Gross Debt Service Outstanding				Net Debt Service Outstanding
	December 31, 2012		December 31, 2011		December 31, 2012		December 31, 2011
	(in millions)
Public finance	$	722,562	$	798,471	$	677,369	$	716,890
Structured finance	112,388		137,661		104,811		128,775
Total financial guaranty	$	834,950	$	936,132	$	782,180	$	845,665

Financial Guaranty Portfolio by Internal Rating

As of December 31, 2012



	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	$	—	—	%	$	1,130	3.0	%	$	13,572	18.2	%	$	4,874	24.7	%	$	19,576	3.8	%
AAA	4,502		1.2		576		1.5		28,615		38.3		8,295		42.1		41,988		8.1
AA	124,525		32.1		875		2.3		9,589		12.8		722		3.7		135,711		26.1
A	210,124		54.1		9,781		26.1		4,670		6.2		1,409		7.2		225,984		43.4
BBB	44,213		11.4		22,885		61.0		3,717		5.0		2,427		12.3		73,242		14.1
Below-investment-grade (“BIG”)	4,603		1.2		2,293		6.1		14,532		19.5		1,964		10.0		23,392		4.5
Total net par outstanding	$	387,967	100.0	%	$	37,540	100.0	%	$	74,695	100.0	%	$	19,691	100.0	%	$	519,893	100.0	%

Financial Guaranty Portfolio by Internal Rating

As of December 31, 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	$	—	—	%	$	1,138	2.9	%	$	16,756	18.2	%	$	5,660	23.9	%	$	23,554	4.2	%
AAA	5,074		1.3		1,381		3.5		35,736		38.7		10,231		43.2		52,422		9.4
AA	139,693		34.6		1,056		2.7		12,575		13.6		976		4.1		154,300		27.7
A	213,164		52.9		11,744		30.1		4,115		4.5		1,518		6.4		230,541		41.3
BBB	40,635		10.1		21,399		54.8		5,044		5.5		3,391		14.3		70,469		12.6
BIG	4,507		1.1		2,328		6.0		18,008		19.5		1,919		8.1		26,762		4.8
Total net par outstanding	$	403,073	100.0	%	$	39,046	100.0	%	$	92,234	100.0	%	$	23,695	100.0	%	$	558,048	100.0	%

Schedule of net economic exposure to selected european countries

Net Economic Exposure to Selected European Countries(1)

December 31, 2012



	Greece		Hungary		Ireland		Italy		Portugal		Spain (2)		Total
	(in millions)
Sovereign and sub-sovereign exposure:
Public finance	$	—	$	—	$	—	$	1,007	$	105	$	266	$	1,378
Infrastructure finance	—		434		24		333		100		169		1,060
Sub-total	—		434		24		1,340		205		435		2,438
Non-sovereign exposure:
Regulated utilities	—		—		—		229		—		9		238
RMBS	—		219		139		498		—		—		856
Commercial receivables	—		2		13		63		15		2		95
Pooled corporate	25		—		189		217		14		524		969
Sub-total	25		221		341		1,007		29		535		2,158
Total	$	25	$	655	$	365	$	2,347	$	234	$	970	$	4,596
Total BIG	$	—	$	616	$	7	$	248	$	121	$	419	$	1,411

____________________

(1) While the Company’s exposures are shown in U.S. dollars, the obligations the Company insures are in various currencies, including U.S. dollars, Euros and British pounds sterling. Included in the table above is $139 million of reinsurance assumed on a 2004 - 2006 pool of Irish residential mortgages that is part of the Company’s remaining legacy mortgage reinsurance business. One of the residential mortgage-backed securities included in the table above includes residential mortgages in both Italy and Germany, and only the portion of the transaction equal to the portion of the original mortgage pool in Italian mortgages is shown in the table.


(2)	See Note 6, Expected Loss to be Paid.

Financial Guaranty Exposures (Insurance and Credit Derivative Form)

ancial Guaranty Exposures

(Insurance and Credit Derivative Form)

As of December 31, 2012



	BIG Net Par Outstanding								Net Par		BIG Net Par as a % of Net Par
	BIG 1		BIG 2		BIG 3		Total BIG		Outstanding		Outstanding
					(in millions)
First lien U.S. RMBS:
Prime first lien	$	28	$	436	$	11	$	475	$	641	0.1	%
Alt-A first lien	109		1,987		1,479		3,575		4,589		0.7
Option ARM	61		392		643		1,096		1,550		0.2
Subprime	152		1,161		1,024		2,337		7,330		0.4
Second lien U.S. RMBS:
Closed end second lien	—		247		157		404		521		0.1
Home equity lines of credit (“HELOCs”)	91		—		2,627		2,718		3,196		0.5
Total U.S. RMBS	441		4,223		5,941		10,605		17,827		2.0
Trust preferred securities (“TruPS”)	1,920		—		952		2,872		5,693		0.6
Other structured finance	1,310		384		1,325		3,019		70,866		0.6
U.S. public finance	3,290		500		813		4,603		387,967		0.9
Non-U.S. public finance	2,293		—		—		2,293		37,540		0.4
Total	$	9,254	$	5,107	$	9,031	$	23,392	$	519,893	4.5	%

Financial Guaranty Exposures

(Insurance and Credit Derivative Form)

As of December 31, 2011



	BIG Net Par Outstanding								Net Par		BIG Net Par as a % of Net Par
	BIG 1		BIG 2		BIG 3		Total BIG		Outstanding		Outstanding
					(in millions)
First lien U.S. RMBS:
Prime first lien	$	77	$	465	$	—	$	542	$	739	0.1	%
Alt-A first lien	1,695		1,028		1,540		4,263		5,329		0.8
Option ARM	25		689		882		1,596		2,433		0.3
Subprime (including net interest margin securities)	795		1,200		513		2,508		8,136		0.4
Second lien U.S. RMBS:
Closed end second lien	—		495		520		1,015		1,040		0.2
HELOCs	421		—		2,858		3,279		3,890		0.6
Total U.S. RMBS	3,013		3,877		6,313		13,203		21,567		2.4
TruPS	2,501		—		951		3,452		6,334		0.6
Other structured finance	1,295		548		1,429		3,272		88,028		0.6
U.S. public finance	3,395		274		838		4,507		403,073		0.8
Non-U.S. public finance (1)	2,046		282		—		2,328		39,046		0.4
Total	$	12,250	$	4,981	$	9,531	$	26,762	$	558,048	4.8	%

_____________________


(1)	Includes $282 million in net par as of December 31, 2011, for bonds of the Hellenic Republic of Greece. See Note 6, Expected Loss to be Paid.

Net Par Outstanding for Below Investment Grade Credits

Below-Investment-Grade Credits

By Category

As of December 31, 2012



	Net Par Outstanding						Number of Risks(2)
Description	Financial Guaranty Insurance(1)		Credit Derivative		Total		Financial Guaranty Insurance(1)	Credit Derivative	Total
	(dollars in millions)
BIG:
Category 1	$	7,049	$	2,205	$	9,254	153	30	183
Category 2	2,606		2,501		5,107		76	27	103
Category 3	7,028		2,003		9,031		142	32	174
Total BIG	$	16,683	$	6,709	$	23,392	371	89	460

Below-Investment-Grade Credits

By Category

As of December 31, 2011



	Net Par Outstanding						Number of Risks(2)
Description	Financial Guaranty Insurance(1)		Credit Derivative		Total		Financial Guaranty Insurance(1)	Credit Derivative	Total
	(dollars in millions)
BIG:
Category 1	$	8,297	$	3,953	$	12,250	171	40	211
Category 2	3,458		1,523		4,981		71	33	104
Category 3	7,204		2,327		9,531		126	26	152
Total BIG	$	18,959	$	7,803	$	26,762	368	99	467

_____________________

(1) Includes net par outstanding for FG VIEs.


(2)	A risk represents the aggregate of the financial guaranty policies that share the same revenue source for purposes of making Debt Service payments.