Outstanding Exposure (Tables)

3 Months Ended

Mar. 31, 2013



	Gross Debt Service Outstanding				Net Debt Service Outstanding
	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
	(in millions)
Public finance	$	696,771	$	722,562	$	654,113	$	677,369
Structured finance	104,976		112,388		97,628		104,811
Total financial guaranty	$	801,747	$	834,950	$	751,741	$	782,180

Financial Guaranty Portfolio by Internal Rating

As of March 31, 2013



	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	$	—	—	%	$	1,071	3.1	%	$	13,259	18.9	%	$	4,522	25.1	%	$	18,852	3.8	%
AAA	4,053		1.1		580		1.7		26,628		37.9		7,504		41.7		38,765		7.7
AA	120,812		31.9		661		1.9		10,041		14.2		687		3.8		132,201		26.3
A	206,112		54.5		9,158		26.1		3,149		4.5		958		5.3		219,377		43.7
BBB	42,890		11.3		21,590		61.5		3,351		4.8		2,437		13.5		70,268		14.0
Below-investment-grade (“BIG”)	4,589		1.2		2,007		5.7		13,852		19.7		1,906		10.6		22,354		4.5
Total net par outstanding	$	378,456	100.0	%	$	35,067	100.0	%	$	70,280	100.0	%	$	18,014	100.0	%	$	501,817	100.0	%

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
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	%

Schedule of net economic exposure to selected european countries

Net Economic Exposure to Selected European Countries(1)

March 31, 2013



	Greece		Hungary (2)		Ireland		Italy		Portugal		Spain (2)		Total
	(in millions)
Sovereign and sub-sovereign exposure:
Public finance	$	—	$	—	$	—	$	978	$	105	$	258	$	1,341
Infrastructure finance	—		408		23		83		96		164		774
Sub-total	—		408		23		1,061		201		422		2,115
Non-sovereign exposure:
Regulated utilities	—		—		—		215		—		8		223
RMBS	—		205		135		476		—		—		816
Commercial receivables	—		2		13		61		14		2		92
Pooled corporate	22		—		177		226		15		498		938
Sub-total	22		207		325		978		29		508		2,069
Total	$	22	$	615	$	348	$	2,039	$	230	$	930	$	4,184
Total BIG	$	—	$	576	$	7	$	2	$	121	$	406	$	1,112

____________________

(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 $135 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 5, Expected Loss to be Paid.

Financial Guaranty Exposures (Insurance and Credit Derivative Form)

Financial Guaranty Exposures

(Insurance and Credit Derivative Form)

As of March 31, 2013



	BIG Net Par Outstanding								Net Par		BIG Net Par as a % of Total Net Par
	BIG 1		BIG 2		BIG 3		Total BIG		Outstanding		Outstanding
					(in millions)
First lien U.S. RMBS:
Prime first lien	$	27	$	422	$	10	$	459	$	619	0.1	%
Alt-A first lien	98		1,937		1,430		3,465		4,439		0.7
Option ARM	65		339		362		766		1,387		0.2
Subprime	162		1,219		1,006		2,387		7,130		0.5
Second lien U.S. RMBS:
Closed end second lien	—		61		279		340		452		0.1
Home equity lines of credit (“HELOCs”)	72		12		2,526		2,610		3,059		0.5
Total U.S. RMBS	424		3,990		5,613		10,027		17,086		2.1
Trust preferred securities (“TruPS”)	1,873		—		941		2,814		5,496		0.5
Other structured finance	1,240		379		1,298		2,917		65,712		0.6
U.S. public finance	3,359		520		710		4,589		378,456		0.9
Non-U.S. public finance	983		1,024		—		2,007		35,067		0.4
Total	$	7,879	$	5,913	$	8,562	$	22,354	$	501,817	4.5	%

Financial Guaranty Exposures

(Insurance and Credit Derivative Form)

As of December 31, 2012



	BIG Net Par Outstanding								Net Par		BIG Net Par as a % of Total 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 (including net interest margin securities)	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
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
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	%

Net Par Outstanding for Below Investment Grade Credits

Below-Investment-Grade Credits

By Category

As of March 31, 2013



	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	$	6,148	$	1,731	$	7,879	143	30	173
Category 2	3,289		2,624		5,913		82	26	108
Category 3	6,611		1,951		8,562		147	29	176
Total BIG	$	16,048	$	6,306	$	22,354	372	85	457

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

_____________________

(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.