Financial Guaranty Insurance Premiums (Tables)

3 Months Ended

Mar. 31, 2015

Insurance [Abstract]

Net Earned Premiums

Net Earned Premiums

	First Quarter
	2015		2014
	(in millions)
Scheduled net earned premiums	$	96	$	107
Acceleration of net earned premiums	41		19
Accretion of discount on net premiums receivable	4		6
Financial guaranty insurance net earned premiums	141		132
Other	1		—
Net earned premiums(1)	$	142	$	132

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(1) Excludes $5 million and $17 million for First Quarter2015 and 2014, respectively, related to consolidated FG VIEs.

Components of Unearned Premium Reserve

Components of Unearned Premium Reserve

	As of March 31, 2015							As of December 31, 2014
	Gross		Ceded			Net(1)		Gross		Ceded			Net(1)
	(in millions)
Deferred premium revenue:
Financial guaranty insurance	$	4,038	$	370		$	3,668	$	4,167	$	387		$	3,780
Other	1		—			1		0		—			0
Deferred premium revenue	$	4,039	$	370		$	3,669	$	4,167	$	387		$	3,780
Contra-paid (2)	88		(5		)	93		94		(6		)	100
Unearned premium reserve	$	4,127	$	365		$	3,762	$	4,261	$	381		$	3,880

 ____________________

(1) Excludes $125 million and $125 million of deferred premium revenue, and $41 million and $42 million of contra-paid related to FG VIEs as of March 31, 2015 and December 31, 2014, respectively.

(2) See Note 6, "Financial Guaranty Insurance Losses– Insurance Contracts' Loss Information" for an explanation of "contra-paid".

Gross Premium Receivable, Net of Commissions on Assumed Business Roll Forward

Gross Premium Receivable,

Net of Commissions on Assumed Business

Roll Forward

	First Quarter
	2015			2014
	(in millions)
Beginning of period, December 31	$	729		$	876
Gross premium written, net of commissions on assumed business	36			33
Gross premiums received, net of commissions on assumed business	(36		)	(53		)
Adjustments:
Changes in the expected term	(6		)	(3		)
Accretion of discount, net of commissions on assumed business	5			7
Foreign exchange translation	(25		)	2
Consolidation/deconsolidation of FG VIEs	(4		)	1
Other adjustments	0			—
End of period, March 31 (1)	$	699		$	863

____________________

(1) Excludes $22 million and $18 million as of March 31, 2015 and March 31, 2014, respectively, related to consolidated FG VIEs.

Expected Collections of Gross Premiums Receivable, Net of Ceding Commissions (Undiscounted)

Expected Collections of

Financial Guaranty Gross Premiums Receivable,

Net of Commissions on Assumed Business

(Undiscounted)

	As of March 31, 2015
	(in millions)
2015 (April 1 – June 30)	$	23
2015 (July 1 – September 30)	24
2015 (October 1 – December 31)	19
2016	74
2017	67
2018	61
2019	57
2020-2024	238
2025-2029	154
2030-2034	108
After 2034	98
Total(1)	$	923

 ____________________

(1) Excludes expected cash collections on FG VIEs of $28 million.

Schedule of Net Earned Premiums

Scheduled Financial Guaranty Net Earned Premiums

	As of March 31, 2015
	(in millions)
2015 (April 1 – June 30)	$	91
2015 (July 1 – September 30)	89
2015 (October 1 – December 31)	86
2016	334
2017	294
2018	267
2019	244
2020-2024	955
2025-2029	610
2030-2034	373
After 2034	325
Net deferred premium revenue(1)	3,668
Future accretion	198
Total future net earned premiums	$	3,866

 ____________________

(1) Excludes scheduled net earned premiums on consolidated FG VIEs of $125 million.

Selected Information for Policies Paid in Installments

Selected Information for Financial Guaranty Policies Paid in Installments

	As of March 31, 2015			As of December 31, 2014
	(dollars in millions)
Premiums receivable, net of commission payable	$	699		$	729
Gross deferred premium revenue	1,334			1,370
Weighted-average risk-free rate used to discount premiums	3.4		%	3.5		%
Weighted-average period of premiums receivable (in years)	9.4			9.4