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Financial Guaranty Insurance Losses (Details 6) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 30, 2013
risk
Dec. 31, 2012
risk
Outstanding exposure:    
Reserves (salvage) $ 293 [1] $ 133 [1]
Effect of Consolidating FG VIEs
   
Outstanding exposure:    
Present value of expected cash flows (52)  
Financial guaranty
   
Outstanding exposure:    
Present value of expected cash flows (552) (451)
Reserves (salvage) 273 106
Financial guaranty | BIG 1 | Gross
   
Financial Guaranty Insurance BIG Transaction Loss Summary    
Number of risks 154 [2],[3] 163 [2],[3]
Remaining weighted-average contract period (in years) 9 years 8 months 48 days [3] 10 years 2 months [3]
Outstanding exposure:    
Principal 8,795 [3] 9,462 [3]
Interest 4,432 [3] 4,475 [3]
Total 13,227 [3],[4] 13,937 [3],[4]
Expected cash outflows (inflows) 1,593 [3] 1,914 [3]
Potential recoveries (1,759) [3],[5] (2,356) [3],[5]
Subtotal (166) [3] (442) [3]
Discount 23 [3] 12 [3]
Present value of expected cash flows (143) [3] (430) [3]
Deferred premium revenue 359 [3] 265 [3]
Reserves (salvage) (180) [3],[6] (485) [3],[6]
Financial guaranty | BIG 1 | Ceded
   
Financial Guaranty Insurance BIG Transaction Loss Summary    
Number of risks 52 [2],[3] 66 [2],[3]
Remaining weighted-average contract period (in years) 7 years 2 months 12 days [3] 9 years 2 months [3]
Outstanding exposure:    
Principal 1,342 [3] 1,533 [3]
Interest 499 [3] 591 [3]
Total 1,841 [3],[4] 2,124 [3],[4]
Expected cash outflows (inflows) (508) [3] (687) [3]
Potential recoveries 512 [3],[5] 677 [3],[5]
Subtotal 4 [3] (10) [3]
Discount (1) [3] 8 [3]
Present value of expected cash flows 3 [3] (2) [3]
Deferred premium revenue (60) [3] (32) [3]
Reserves (salvage) 8 [3],[6] 10 [3],[6]
Financial guaranty | BIG 2 | Gross
   
Financial Guaranty Insurance BIG Transaction Loss Summary    
Number of risks 76 [2],[3] 76 [2],[3]
Remaining weighted-average contract period (in years) 8 years 6 months 0 days [3] 10 years 6 months 36 days [3]
Outstanding exposure:    
Principal 2,772 [3] 2,248 [3]
Interest 1,350 [3] 1,357 [3]
Total 4,122 [3],[4] 3,605 [3],[4]
Expected cash outflows (inflows) 806 [3] 863 [3]
Potential recoveries (395) [3],[5] (509) [3],[5]
Subtotal 411 [3] 354 [3]
Discount (135) [3] (107) [3]
Present value of expected cash flows 276 [3] 247 [3]
Deferred premium revenue 163 [3] 227 [3]
Reserves (salvage) 142 [3],[6] 102 [3],[6]
Financial guaranty | BIG 2 | Ceded
   
Financial Guaranty Insurance BIG Transaction Loss Summary    
Number of risks 24 [2],[3] 22 [2],[3]
Remaining weighted-average contract period (in years) 9 years 6 months 0 days [3] 15 years 1 month [3]
Outstanding exposure:    
Principal 235 [3] 132 [3]
Interest 142 [3] 127 [3]
Total 377 [3],[4] 259 [3],[4]
Expected cash outflows (inflows) (93) [3] (58) [3]
Potential recoveries 25 [3],[5] 18 [3],[5]
Subtotal (68) [3] (40) [3]
Discount 26 [3] 14 [3]
Present value of expected cash flows (42) [3] (26) [3]
Deferred premium revenue (23) [3] (15) [3]
Reserves (salvage) (32) [3],[6] (18) [3],[6]
Financial guaranty | BIG 3 | Gross
   
Financial Guaranty Insurance BIG Transaction Loss Summary    
Number of risks 136 [2],[3] 131 [2],[3]
Remaining weighted-average contract period (in years) 10 years 7 months 42 days [3] 9 years [3]
Outstanding exposure:    
Principal 3,884 [3] 6,024 [3]
Interest 1,531 [3] 1,881 [3]
Total 5,415 [3],[4] 7,905 [3],[4]
Expected cash outflows (inflows) 2,686 [3] 2,720 [3]
Potential recoveries (1,766) [3],[5] (1,911) [3],[5]
Subtotal 920 [3] 809 [3]
Discount (391) [3] (216) [3]
Present value of expected cash flows 529 [3] 593 [3]
Deferred premium revenue 447 [3] 604 [3]
Reserves (salvage) 351 [3],[6] 347 [3],[6]
Financial guaranty | BIG 3 | Ceded
   
Financial Guaranty Insurance BIG Transaction Loss Summary    
Number of risks 40 [2],[3] 41 [2],[3]
Remaining weighted-average contract period (in years) 7 years 9 months 18 days [3] 6 years [3]
Outstanding exposure:    
Principal 296 [3] 481 [3]
Interest 93 [3] 117 [3]
Total 389 [3],[4] 598 [3],[4]
Expected cash outflows (inflows) (123) [3] (146) [3]
Potential recoveries 97 [3],[5] 117 [3],[5]
Subtotal (26) [3] (29) [3]
Discount 7 [3] 2 [3]
Present value of expected cash flows (19) [3] (27) [3]
Deferred premium revenue (52) [3] (83) [3]
Reserves (salvage) (8) [3],[6] (3) [3],[6]
Financial guaranty | Below investment grade (BIG)
   
Financial Guaranty Insurance BIG Transaction Loss Summary    
Number of risks 366 [2],[3] 370 [2],[3]
Remaining weighted-average contract period (in years) 10 years 1 month 6 days [3] 10 years 0 months [3]
Outstanding exposure:    
Principal 13,578 [3] 15,588 [3]
Interest 6,579 [3] 6,878 [3]
Total 20,157 [3],[4] 22,466 [3],[4]
Expected cash outflows (inflows) 3,658 [3] 3,868 [3]
Potential recoveries (2,685) [3],[5] (3,166) [3],[5]
Subtotal 973 [3] 702 [3]
Discount (421) [3] (251) [3]
Present value of expected cash flows 552 [3] 451 [3]
Deferred premium revenue 644 [3] 715 [3]
Reserves (salvage) 273 [3],[6] 106 [3],[6]
Financial guaranty | Below investment grade (BIG) | Total BIG, Net
   
Financial Guaranty Insurance BIG Transaction Loss Summary    
Number of risks 366 [2],[3] 370 [2],[3]
Remaining weighted-average contract period (in years) 10 years 1 month 6 days [3] 10 years [3]
Outstanding exposure:    
Principal 13,578 [3] 15,588 [3]
Interest 6,579 [3] 6,878 [3]
Total 20,157 [3],[4] 22,466 [3],[4]
Expected cash outflows (inflows) 4,361 [3] 4,606 [3]
Potential recoveries (3,286) [3],[5] (3,964) [3],[5]
Subtotal 1,075 [3] 642 [3]
Discount (471) [3] (287) [3]
Present value of expected cash flows 604 [3] 355 [3]
Deferred premium revenue 834 [3] 966 [3]
Reserves (salvage) 281 [3],[6] (47) [3],[6]
Financial guaranty | Below investment grade (BIG) | Effect of Consolidating FG VIEs
   
Financial Guaranty Insurance BIG Transaction Loss Summary    
Number of risks 0 [2],[3] 0 [2],[3]
Outstanding exposure:    
Principal 0 [3] 0 [3]
Interest 0 [3] 0 [3]
Total 0 [3],[4] 0 [3],[4]
Expected cash outflows (inflows) (703) [3] (738) [3]
Potential recoveries 601 [3],[5] 798 [3],[5]
Subtotal (102) [3] 60 [3]
Discount 50 [3] 36 [3]
Present value of expected cash flows (52) [3] 96 [3]
Deferred premium revenue (190) [3] (251) [3]
Reserves (salvage) $ (8) [3],[6] $ 153 [3]
[1] (1)See “Components of Net Reserves (Salvage)” table for loss and LAE reserve and salvage and subrogation recoverable components.
[2] A risk represents the aggregate of the financial guaranty policies that share the same revenue source for purposes of making Debt Service payments. The ceded number of risks represents the number of risks for which the Company ceded a portion of its exposure.
[3] In Third Quarter 2013, the Company adjusted its approach to assigning internal ratings. See "Refinement of Approach to Internal Credit Ratings and Surveillance Categories" in Note 3, Outstanding Exposure. This approach is reflected in the "Financial Guaranty Insurance BIG Transaction Loss Summary" tables as of both September 30, 2013 and December 31, 2012.
[4] Includes BIG amounts related to FG VIEs.
[5] Includes estimated future recoveries for breaches of R&W as well as excess spread, and draws on HELOCs.
[6] See table “Components of net reserves (salvage).”