Consolidated Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Effect of Consolidating FG VIEs on Net Income,

Cash Flows From Operating Activities and Shareholders’ Equity



	First Quarter
	2016			2015
	(in millions)
Net earned premiums	$	(5	)	$	(5	)
Net investment income	(5		)	(3		)
Net realized investment gains (losses)	1			0
Fair value gains (losses) on FG VIEs	18			(7		)
Loss and LAE	6			5
Effect on income before tax	15			(10		)
Less: tax provision (benefit)	5			(4		)
Effect on net income (loss)	$	10		$	(6	)

Effect on cash flows from operating activities	$	6		$	18



	As of March 31, 2016			As of December 31, 2015
	(in millions)
Effect on shareholders’ equity (decrease) increase	$	(12	)	$	(23	)

Number of FG VIEs Consolidated



	First Quarter
	2016		2015

Beginning of the period, December 31	34		32
Consolidated (1)	—		1
Deconsolidated (1)	(1	)	—
End of the period, September 30	33		33

____________________


(1)	Net loss on deconsolidation was de minimis in First Quarter 2016, and net loss on consolidation was $26 million in First Quarter 2015, and recorded in “fair value gains (losses) on FG VIEs” in the consolidated statement of operations.

Consolidated FG VIEs

By Type of Collateral



	As of March 31, 2016				As of December 31, 2015
	Assets		Liabilities		Assets		Liabilities
	(in millions)
With recourse:
U.S. RMBS first lien	$	457	$	495	$	506	$	521
U.S. RMBS second lien	189		250		194		273
Life insurance	339		339		347		347
Manufactured housing	81		81		84		84
Total with recourse	1,066		1,165		1,131		1,225
Without recourse	125		119		130		124
Total	$	1,191	$	1,284	$	1,261	$	1,349

- 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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