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Reinsurance and Other Monoline Exposures (Tables)
 12 Months Ended
Dec. 31, 2014
Insurance [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,
 
2014
 
2013
 
2012
 
(in millions)
Increase (decrease) in net unearned premium reserve
$
20

 
$
11

 
$
109

Increase (decrease) in net par outstanding
1,167

 
151

 
19,173

Commutation gains recorded in other income
23

 
2

 
82
Effects of Reinsurance on Statement of Operations
Effect of Reinsurance on Statement of Operations

 
Year Ended December 31,
 
2014
 
2013
 
2012
 
(in millions)
Premiums Written:
 
 
 
 
 
Direct
$
116

 
$
106

 
244

Assumed(1)
(12
)
 
17

 
9

Ceded(2)
15

 
2

 
51

Net
$
119

 
$
125

 
304

Premiums Earned:
 
 
 
 
 
Direct
$
581

 
$
819

 
936

Assumed
47

 
40

 
50

Ceded
(58
)
 
(107
)
 
(133
)
Net
$
570

 
$
752

 
853

Loss and LAE:
 
 
 
 
 
Direct
$
132

 
$
110

 
636

Assumed
37

 
73

 
(4
)
Ceded
(43
)
 
(29
)
 
(128
)
Net
$
126

 
$
154

 
504

____________________
(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 (1)
 
 
February 24, 2015
 
As of December 31, 2014
Reinsurer
 
Moody’s
Reinsurer
Rating
 
S&P
Reinsurer
Rating
 
Ceded Par
Outstanding
 
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
 
$
6,727

 
$
—

 
$
30

Tokio Marine & Nichido Fire Insurance Co., Ltd. (“Tokio”)
 
Aa3 (3)
 
AA- (3)
 
5,276

 
—

 
—

Radian Asset
 
Ba1
 
B+
 
4,104

 
21

 
671

Syncora Guarantee Inc.
 
WR
 
WR
 
3,715

 
1,514

 
161

Mitsui Sumitomo Insurance Co. Ltd.
 
A1
 
A+ (3)
 
2,033

 
—

 
—

ACA Financial Guaranty Corp.
 
NR (5)
 
WR
 
746

 
2

 
—

Swiss Reinsurance Co.
 
Aa3
 
AA-
 
93

 
—

 
—

Ambac
 
WR
 
WR
 
82

 
4,930

 
14,342

National Public Finance Guarantee Corporation
 
A3
 
AA-
 
—

 
6,210

 
5,894

MBIA
 
(4)
 
(4)
 
—

 
2,613

 
587

FGIC
 
WR
 
WR
 
—

 
2,074

 
834

Ambac Assurance Corp. Segregated Account
 
NR
 
NR
 
—

 
109

 
956

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

 
102

 
4,365

Other
 
Various
 
Various
 
199

 
894

 
46

Total
 
 
 
 
 
$
22,975

 
$
18,469

 
$
27,886

____________________
(1)
Includes par 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 includes subsidiaries MBIA Insurance Corp. rated B by S&P and B2 by Moody's and MBIA U.K. Insurance Ltd. rated B by S&P and Ba2 by Moody’s.

(5)
Represents “Not Rated.”
Ceded Par Outstanding by Reinsurer and Credit Rating
As of December 31, 2014

 
 
Internal Credit Rating
Reinsurer
 
 
AAA
 
AA
 
A
 
BBB
 
BIG
 
Total
 
 
(in millions)
American Overseas Reinsurance Company Limited (f/k/a Ram Re)
 
$
633

 
$
2,452

 
$
1,992

 
$
1,158

 
$
492

 
$
6,727

Tokio
 
763

 
968

 
1,485

 
1,281

 
779

 
5,276

Radian Asset
 
206

 
287

 
2,037

 
1,085

 
489

 
4,104

Syncora Guarantee Inc.
 
—

 
291

 
498

 
2,193

 
733

 
3,715

Mitsui Sumitomo Insurance Co. Ltd.
 
134

 
669

 
742

 
299

 
189

 
2,033

ACA Financial Guaranty Corp
 
—

 
458

 
277

 
11

 
—

 
746

Swiss Reinsurance Co.
 
—

 
—

 
0

 
26

 
67

 
93

Ambac
 
—

 
—

 
82

 
—

 
—

 
82

Other
 
62

 
82

 
55

 
—

 
—

 
199

Total
 
$
1,798

 
$
5,207

 
$
7,168

 
$
6,053

 
$
2,749

 
$
22,975
Second-to-Pay Insured Par Outstanding by Internal Rating
Second-to-Pay
Insured Par Outstanding by Internal Rating
As of December 31, 2014(1)
 
 
Public Finance
 
Structured Finance
 
AAA
 
AA
 
A
 
BBB
 
BIG
 
AAA
 
AA
 
A
 
BBB
 
BIG
 
Total
 
(in millions)
Radian Asset
$
—

 
$
—

 
$
3

 
$
12

 
$
6

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
21

Syncora Guarantee Inc.
—

 
45

 
326

 
727

 
276

 
96

 
—

 
—

 
—

 
44

 
1,514

ACA Financial Guaranty Corp.
—

 
1

 
—

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
2

Ambac
30

 
1,301

 
2,597

 
637

 
63

 
—

 
1

 
64

 
231

 
6

 
4,930

National Public Finance Guarantee Corporation
160

 
2,193

 
3,833

 
—

 
—

 
—

 
—

 
24

 
—

 
—

 
6,210

MBIA
—

 
65

 
254

 
424

 
—

 
—

 
1,508

 
—

 
243

 
119

 
2,613

FGIC
—

 
77

 
975

 
281

 
302

 
371

 
—

 
25

 
—

 
43

 
2,074

Ambac Assurance Corp. Segregated Account
—

 
—

 
—

 
—

 
—

 
—

 
33

 
—

 
—

 
76

 
109

CIFG
—

 
4

 
51

 
22

 
25

 
—

 
—

 
—

 
—

 
—

 
102

Other
—

 
894

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
894

Total
$
190

 
$
4,580

 
$
8,039

 
$
2,104

 
$
672

 
$
467

 
$
1,542

 
$
113

 
$
474

 
$
288

 
$
18,469

____________________
(1)
Assured Guaranty’s internal rating.
Amounts Due (To) From Reinsurers
Amounts Due (To) From Reinsurers
As of December 31, 2014
 
 
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)
$
—

 
$
(8
)
 
$
—

 
$
11

Tokio
—

 
(13
)
 
—

 
46

Radian Asset
—

 
(13
)
 
—

 
19

Syncora Guarantee Inc.
—

 
(29
)
 
—

 
4

Mitsui Sumitomo Insurance Co. Ltd.
—

 
(3
)
 
—

 
15

Swiss Reinsurance Co.
—

 
(3
)
 
—

 
6

Ambac
43

 
—

 
(19
)
 
—

National Public Finance Guarantee Corporation
7

 
—

 
(7
)
 
—

MBIA
5

 
—

 
(9
)
 
—

FGIC
5

 
—

 
(3
)
 
—

Ambac Assurance Corp. Segregated Account
13

 
—

 
(83
)
 
—

CIFG
—

 
—

 
(6
)
 
—

Other
(2
)
 
(23
)
 
—

 
—

Total
$
71

 
$
(92
)
 
$
(127
)
 
$
101