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Reinsurance (Tables)
 3 Months Ended
Mar. 31, 2019
Insurance [Abstract]  
Effects of Reinsurance on Statement of Operations Effect of Reinsurance on Statement of Operations

 
First Quarter
 
2019
 
2018
 
(in millions)
Premiums Written:
 
 
 
Direct
$
39

 
$
73

Assumed
—

 
—

Ceded (1)
15

 
(11
)
Net
$
54

 
$
62

Premiums Earned:
 
 
 
Direct
$
105

 
$
143

Assumed
15

 
5

Ceded
(2
)
 
(3
)
Net
$
118

 
$
145

Loss and LAE:
 
 
 
Direct
$
54

 
$
(14
)
Assumed
1

 
(3
)
Ceded
(9
)
 
(1
)
Net
$
46

 
$
(18
)
____________________
(1)    Positive ceded premiums written were due to terminations and changes in expected debt service schedules.
Exposure by Reinsurer Ceded Reinsurance (1)

 
As of
March 31, 2019
 
As of
December 31, 2018
 
(in millions)
Ceded premium, net of commissions
$
(7
)
 
$
(26
)
Ceded expected loss to be paid
19

 
14

Financial guaranty ceded par outstanding (2)
1,979

 
2,389

Non-financial guaranty ceded exposure (see Note 3)
245

 
239

____________________
(1)
The total collateral posted by all non-affiliated reinsurers required to post, or that had agreed to post, collateral as of March 31, 2019 and December 31, 2018 was approximately $75 million and $80 million, respectively. Such collateral is posted (i) in the case of certain reinsurers not authorized or "accredited" in the U.S., in order for the Company to receive credit for the liabilities ceded to such reinsurers, and (ii) in the case of certain reinsurers authorized in the U.S., on terms negotiated with the Company.

(2)
Of the total par ceded to unrated or BIG rated reinsurers, $235 million and $236 million is rated BIG as of March 31, 2019 and December 31, 2018, respectively.