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Reinsurance and Other Monoline Exposures (Tables)
 3 Months Ended
Mar. 31, 2017
Insurance [Abstract]  
Effects of Reinsurance on Statement of Operations
The following table presents the components of premiums and losses reported in the consolidated statements of operations and the contribution of the Company's Assumed and Ceded Businesses.

Effect of Reinsurance on Statement of Operations

 
First Quarter
 
2017

2016
 
(in millions)
Premiums Written:
 
 
 
Direct
$
109

 
$
21

Assumed (1)
2

 
(2
)
Ceded (2)
11

 
(17
)
Net
$
122

 
$
2

Premiums Earned:
 
 
 
Direct
$
167

 
$
190

Assumed
6

 
8

Ceded
(9
)
 
(15
)
Net
$
164

 
$
183

Loss and LAE:
 
 
 
Direct
$
67

 
$
109

Assumed
3

 
(14
)
Ceded
(11
)
 
(5
)
Net
$
59

 
$
90


 ____________________
(1)
Negative assumed premiums written were due to 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
Monoline and Reinsurer Exposure by Company

 
 
Par Outstanding
 
 
As of March 31, 2017
Reinsurer
 
Ceded Par
Outstanding (1)
 
Second-to-
Pay Insured
Par
Outstanding (2)
 
Assumed Par
Outstanding
 
 
(in millions)
Reinsurers rated investment grade:
 
 
 
 
 
 
Tokio Marine & Nichido Fire Insurance Co., Ltd. (3) (4)
 
$
3,269

 
$
—

 
$
—

National
 
—

 
4,057

 
3,962

Subtotal
 
3,269

 
4,057

 
3,962

Reinsurers rated BIG or not rated:
 
 
 
 
 
 
American Overseas Reinsurance Company Limited (3)
 
3,307

 
—

 
30

Syncora (3)
 
1,950

 
1,097

 
654

ACA Financial Guaranty Corp.
 
621

 
12

 
—

Ambac
 
115

 
2,583

 
6,061

MBIA
 
—

 
949

 
151

Financial Guaranty Insurance Company and FGIC UK Limited
 
—

 
1,221

 
404

Ambac Assurance Corp. Segregated Account
 
—

 
57

 
584

Subtotal
 
5,993

 
5,919

 
7,884

Other (3)
 
71

 
538

 
146

Total
 
$
9,333

 
$
10,514

 
$
11,992

____________________
(1)
Of the total ceded par to reinsurers rated BIG or not rated, $359 million is rated BIG.  

(2)
The par on second-to-pay exposure where the primary insurer and underlying transaction rating are both BIG, and/or not rated, is $742 million.

(3)
The total collateral posted by all non-affiliated reinsurers required to post, or that had agreed to post, collateral as of March 31, 2017 was approximately $285 million.

(4)    The Company benefits from trust arrangements that satisfy the triple-A credit requirement of S&P and/or Moody’s.


Amounts Due (To) From Reinsurers
Amounts Due (To) From Reinsurers
As of March 31, 2017 

 
Assumed
Premium, net
of Commissions
 
Ceded
Premium, net
of Commissions
 
Assumed
Expected
Loss to be Paid
 
Ceded
Expected
Loss to be Paid
 
(in millions)
Reinsurers rated investment grade
$
5

 
$
(9
)
 
$
4

 
$
44

Reinsurers rated BIG or not rated:
 
 
 
 
 
 
 
American Overseas Reinsurance Company Limited
—

 
(4
)
 
—

 
38

Syncora
13

 
(17
)
 
—

 
(6
)
Ambac
33

 
—

 
(2
)
 
—

MBIA
0

 
—

 
(7
)
 
—

Financial Guaranty Insurance Company and FGIC UK Limited
4

 
—

 
(17
)
 
—

Ambac Assurance Corp. Segregated Account
6

 
—

 
(48
)
 
—

Other
—

 
(3
)
 
—

 
—

Subtotal
56

 
(24
)
 
(74
)
 
32

Total
$
61

 
$
(33
)
 
$
(70
)
 
$
76