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Reinsurance and Other Monoline Exposures (Tables)
 12 Months Ended
Dec. 31, 2013
Reinsurance and Other Monoline Exposures [abstract]  
Net Effect of Commutations and Cancellations of Assumed Reinsurance Contracts
Net Effect of Commutations of Ceded and
Cancellations of Assumed Reinsurance Contracts 

 
Year Ended December 31,
 
2013
 
2012
 
2011
 
(in millions)
Increase (decrease) in net unearned premium reserve
$
11

 
$
109

 
$
(20
)
Increase (decrease) in net par outstanding
151

 
19,173

 
(780
)
Effect of Reinsurance on Statement of Operations
Effect of Reinsurance on Statement of Operations 

 
Year Ended December 31,
 
2013
 
2012
 
2011
 
(in millions)
Premiums Written:
 
 
 
 
 
Direct
$
106

 
$
244

 
190

Assumed(1)
17

 
9

 
(63
)
Ceded(2)
2

 
51

 
4

Net
$
125

 
$
304

 
131

Premiums Earned:
 
 
 
 
 
Direct
$
819

 
$
936

 
997

Assumed
40

 
50

 
46

Ceded
(107
)
 
(133
)
 
(123
)
Net
$
752

 
$
853

 
920

Loss and LAE:
 
 
 
 
 
Direct
$
110

 
$
636

 
564

Assumed
73

 
(4
)
 
4

Ceded
(29
)
 
(128
)
 
(120
)
Net
$
154

 
$
504

 
448

____________________
(1)
Negative assumed premiums written were due to cancellations 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
 
 
 
Ratings at
 
Par Outstanding
 
 
February 24, 2014
 
As of December 31, 2013
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 (f/k/a Ram Re)
 
WR (2)
 
WR
 
$
8,331

 
$
—

 
$
30

Tokio Marine & Nichido Fire Insurance Co., Ltd. (“Tokio”)
 
Aa3 (3)
 
AA- (3)
 
7,279

 
—

 
—

Radian
 
Ba1
 
B+
 
4,709

 
38

 
1,082

Syncora Guarantee Inc.
 
WR
 
WR
 
4,201

 
1,771

 
162

Mitsui Sumitomo Insurance Co. Ltd.
 
A1
 
A+ (3)
 
2,144

 
—

 
—

ACA Financial Guaranty Corp.
 
NR (5)
 
WR
 
809

 
5

 
9

Swiss Reinsurance Co.
 
Aa3
 
AA-
 
346

 
—

 
—

Ambac (4)
 
WR
 
WR
 
85

 
6,118

 
17,859

CIFG Assurance North America Inc. ("CIFG")
 
WR
 
WR
 
2

 
178

 
5,048

MBIA Inc.
 
(4)
 
(4)
 
—

 
10,292

 
7,386

Financial Guaranty Insurance Co.
 
WR
 
WR
 
—

 
2,329

 
1,315

Other
 
Various
 
Various
 
882

 
2,099

 
46

Total
 
 
 
 
 
$
28,788

 
$
22,830

 
$
32,937

____________________
(1)
Includes $3,172 million in ceded par outstanding related to insured credit derivatives.
  
(2)    Represents “Withdrawn Rating.”
 
(3)    The Company has structural collateral agreements satisfying the triple-A credit requirement of S&P and/or Moody’s.

(4)
MBIA Inc. includes various subsidiaries which are rated A and B by S&P and Baa1, B1 and B3 by Moody’s. Ambac includes policies in their general and segregated account.

(5)
Represents “Not Rated.”
 
Ceded Par Outstanding by Reinsurer and Credit Rating
Ceded Par Outstanding by Reinsurer and Credit Rating
As of December 31, 2013

 
 
Internal Credit Rating
Reinsurer
 
 
AAA
 
AA
 
A
 
BBB
 
BIG
 
Total
 
 
(in millions)
American Overseas Reinsurance Company Limited (f/k/a Ram Re)
 
$
967

 
$
2,871

 
$
2,605

 
$
1,327

 
$
561

 
$
8,331

Tokio
 
1,127

 
1,122

 
2,291

 
1,793

 
946

 
7,279

Radian
 
235

 
296

 
2,365

 
1,241

 
572

 
4,709

Syncora Guarantee Inc.
 
—

 
223

 
764

 
2,334

 
880

 
4,201

Mitsui Sumitomo Insurance Co. Ltd.
 
146

 
692

 
868

 
232

 
206

 
2,144

ACA Financial Guaranty Corp
 
—

 
465

 
324

 
20

 
—

 
809

Swiss Reinsurance Co.
 
—

 
2

 
241

 
27

 
76

 
346

Ambac
 
—

 
—

 
85

 
—

 
—

 
85

CIFG
 
—

 
—

 
—

 
2

 
—

 
2

Other
 
—

 
93

 
751

 
38

 
—

 
882

Total
 
$
2,475

 
$
5,764

 
$
10,294

 
$
7,014

 
$
3,241

 
$
28,788
Second-to-Pay Insured Par Outstanding by Internal Rating
Second-to-Pay
Insured Par Outstanding by Internal Rating
As of December 31, 2013(1)
 
 
Public Finance
 
Structured Finance
 
AAA
 
AA
 
A
 
BBB
 
BIG
 
AAA
 
AA
 
A
 
BBB
 
BIG
 
Total
 
(in millions)
Radian
$
—

 
$
—

 
$
13

 
$
17

 
$
8

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
38

Syncora Guarantee Inc.
—

 
25

 
369

 
771

 
301

 
77

 
56

 
—

 
—

 
172

 
1,771

ACA Financial Guaranty Corp.
—

 
3

 
—

 
2

 
—

 
—

 
—

 
—

 
—

 
—

 
5

Ambac
30

 
1,366

 
3,157

 
1,020

 
81

 
2

 
43

 
71

 
209

 
139

 
6,118

CIFG
—

 
11

 
69

 
22

 
76

 
—

 
—

 
—

 
—

 
—

 
178

MBIA Inc.
225

 
2,346

 
4,250

 
1,425

 
—

 
—

 
1,589

 
24

 
199

 
234

 
10,292

Financial Guaranty Insurance Co.
—

 
77

 
990

 
296

 
328

 
518

 
—

 
73

 
—

 
47

 
2,329

Other
—

 
—

 
2,099

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
2,099

Total
$
255

 
$
3,828

 
$
10,947

 
$
3,553

 
$
794

 
$
597

 
$
1,688

 
$
168

 
$
408

 
$
592

 
$
22,830

____________________
(1)
Assured Guaranty’s internal rating.
Amounts Due (To) From Reinsurers
Amounts Due (To) From Reinsurers
As of December 31, 2013
 
 
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 (f/k/a Ram Re)
$
—

 
$
(9
)
 
$
—

 
$
9

Tokio
—

 
(19
)
 
—

 
20

Radian
—

 
(17
)
 
—

 
16

Syncora Guarantee Inc.
—

 
(40
)
 
—

 
1

Mitsui Sumitomo Insurance Co. Ltd.
—

 
—

 
—

 
2

Swiss Reinsurance Co.
—

 
—

 
—

 
1

Ambac
67

 
—

 
(79
)
 
—

CIFG
—

 
—

 
(6
)
 
2

MBIA Inc.
13

 
—

 
(11
)
 
—

Financial Guaranty Insurance Co.
7

 
—

 
(103
)
 
—

Other
—

 
(43
)
 
—

 
—

Total
$
87

 
$
(128
)
 
$
(199
)
 
$
51