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Financial Guaranty Insurance Premiums (Tables)
 6 Months Ended
Jun. 30, 2013
Financial Guaranty Insurance Premiums [Abstract]  
Financial Guaranty Insurance Contracts, Net Earned Premiums
Net Earned Premiums
 
 
Second Quarter
 
Six Months
 
2013
 
2012
 
2013
 
2012
 
(in millions)
Scheduled net earned premiums
$
113

 
$
145

 
$
241

 
$
297

Acceleration of premium earnings
46

 
68

 
159

 
105

Accretion of discount on net premiums receivable
3

 
6

 
10

 
11

  Total financial guaranty insurance
162

 
219

 
410

 
413

Other
1

 
0

 
1

 
0

  Total net earned premiums(1)
$
163

 
$
219

 
$
411

 
$
413

 ___________________
(1)
Excludes $15 million and $16 million for Second Quarter 2013 and 2012, respectively, and $33 million and $33 million for the Six Months 2013 and 2012, respectively, related to consolidated FG VIEs.
Financial Guaranty Insurance Contracts, Net Unearned Premium Reserve
Components of Unearned Premium Reserve
 
 
As of June 30, 2013
 
As of December 31, 2012
 
Gross
 
Ceded
 
Net(1)
 
Gross
 
Ceded
 
Net(1)
 
(in millions)
Deferred premium revenue:
 
 
 
 
 
 
 
 
 
 
 
   Financial guaranty
$
4,941

 
$
533

 
$
4,408

 
$
5,349

 
$
586

 
$
4,763

   Other
6

 
—

 
6

 
7

 
—

 
7

Total deferred premium revenue
$
4,947

 
$
533

 
$
4,414

 
$
5,356

 
$
586

 
$
4,770

Contra-paid
(135
)
 
(23
)
 
(112
)
 
(149
)
 
(25
)
 
(124
)
Total
$
4,812

 
$
510

 
$
4,302

 
$
5,207

 
$
561

 
$
4,646

 ____________________
(1)
Excludes $210 million and $262 million of deferred premium revenue, and $58 million and $98 million of contra-paid related to FG VIEs as of June 30, 2013 and December 31, 2012, respectively.
Financial Guaranty Insurance Contracts, Premium Receivable Activity
Gross Premium Receivable, Net of Ceding Commissions Roll Forward
 
 
Six Months
 
2013
 
2012
 
(in millions)
Balance beginning of period
$
1,005

 
$
1,003

Premium written, net of ceding commissions
32

 
103

Premium payments received, net of ceding commissions
(109
)
 
(167
)
Adjustments:
 
 
 
Changes in the expected term of financial guaranty insurance contracts
1

 
19

Accretion of discount, net of ceding commissions
13

 
13

Foreign exchange translation
(27
)
 
(1
)
Consolidation of FG VIEs
—

 
(5
)
Other adjustments
—

 
(1
)
Balance, end of period (1)
$
915

 
$
964

____________________
(1)
Excludes $20 million and $32 million as of June 30, 2013 and June 30, 2012, respectively, related to consolidated FG VIEs.
Financial Guaranty Insurance Contracts, Premium Receivable Premium Expected to be Collected
Expected Collections of Gross Premiums Receivable,
Net of Ceding Commissions (Undiscounted)

 
June 30, 2013
 
(in millions)
2013 (July 1 – September 30)
$
39

2013 (October 1 – December 31)
34

2014
104

2015
91

2016
85

2017
78

2018-2022
307

2023-2027
190

2028-2032
129

After 2032
147

Total(1)
$
1,204

 ____________________
(1)
Excludes expected cash collections on FG VIEs of $25 million.
Schedule of Net Earned Premiums Financial Guaranty Contracts
Scheduled Net Earned Premiums
Financial Guaranty Insurance Contracts
 
 
As of June 30, 2013
 
(in millions)
2013 (July 1 - September 30)
$
119

2013 (October 1–December 31)
113

Subtotal 2013
232

2014
427

2015
374

2016
338

2017
302

2018 - 2022
1,161

2023 - 2027
731

2028 - 2032
436

After 2032
407

Total present value basis(1)
4,408

Discount
247

Total future value
$
4,655

 ____________________
(1)
Excludes scheduled net earned premiums on consolidated FG VIEs of $210 million.
Financial Guaranty Insurance Contracts, Policies Paid in Installments
Selected Information for Policies Paid in Installments

 
As of
June 30, 2013
 
As of
December 31, 2012
 
(dollars in millions)
Premiums receivable, net of ceding commission payable
$
915

 
$
1,005

Gross deferred premium revenue
1,725

 
1,908

Weighted-average risk-free rate used to discount premiums
3.4
%
 
3.5
%
Weighted-average period of premiums receivable (in years)
9.4

 
9.6