Consolidated Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Effect of Consolidating FG VIEs on Net Income,

Cash Flows From Operating Activities and Shareholders’ Equity



	Year Ended December 31,
	2014			2013			2012
	(in millions)
Net earned premiums	$	(32	)	$	(60	)	$	(153	)
Net investment income	(11		)	(13		)	(13		)
Net realized investment gains (losses)	(5		)	2			4
Fair value gains (losses) on FG VIEs	255			346			191
Other income (loss)	(2		)	—			—
Loss and LAE	30			21			65
Effect on net income before tax	235			296			94
Less: tax provision (benefit)	82			103			32
Effect on net income (loss)	$	153		$	193		$	62

Effect on cash flows from operating activities	$	68		$	(136	)	$	166



	As of December 31, 2014			As of December 31, 2013
	(in millions)
Effect on shareholders’ equity (decrease) increase	$	(44	)	$	(172	)

Consolidated FG VIEs

By Type of Collateral



	As of December 31, 2014				As of December 31, 2013
	Assets		Liabilities		Assets		Liabilities
	(in millions)
With recourse:
U.S. RMBS first lien	$	632	$	581	$	630	$	791
U.S. RMBS second lien	238		327		460		640
Other	369		369		359		359
Total with recourse	1,239		1,277		1,449		1,790
Without recourse	163		142		1,116		1,081
Total	$	1,402	$	1,419	$	2,565	$	2,871

Number of FG VIEs Consolidated



	Year Ended December 31,
	2014		2013		2012

Beginning of the period, December 31	40		33		33
Consolidated(1)	2		11		2
Deconsolidated(1)	(8	)	(3	)	—
Matured	(2	)	(1	)	(2	)
End of the period, December 31	32		40		33

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(1)	Net gain on deconsolidation was $120 million and net loss on consolidation was $26 million in 2014. Net loss on consolidation and deconsolidation was $7 million in 2013 and $6 million in 2012, respectively, and recorded in “fair value gains (losses) on FG VIEs” in the consolidated statement of operations.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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