XML 22 R32.htm IDEA: XBRL DOCUMENT v3.20.1
Reinsurance (Tables)
 3 Months Ended
Mar. 31, 2020
Insurance [Abstract]  
Effects of Reinsurance on Statement of Operations
Effect of Reinsurance on Statement of Operations

 
First Quarter
 
2020
 
2019
 
 
Premiums Written:
 
 
 
Direct
$
64

 
$
39

Assumed
—

 
—

Ceded (1)
—

 
15

Net
$
64

 
$
54

Premiums Earned:
 
 
 
Direct
$
94

 
$
105

Assumed
10

 
15

Ceded
(1
)
 
(2
)
Net
$
103

 
$
118

Loss and LAE:
 
 
 
Direct
$
8

 
$
54

Assumed
12

 
1

Ceded
—

 
(9
)
Net
$
20

 
$
46

____________________
(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, 2020
 
As of
December 31, 2019
 
(in millions)
Ceded premium payable, net of commissions
$
19

 
$
20

Ceded expected loss to be recovered (paid)
7

 
11

Financial guaranty ceded par outstanding (2)
1,255

 
1,349

Specialty ceded exposure (see Note 4)
306

 
303

____________________
(1)
The total collateral posted by all non-affiliated reinsurers required to post, or that had agreed to post, collateral as of March 31, 2020 and December 31, 2019 was approximately $67 million and $68 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 in statutory financial statements, 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, $223 million and $224 million is rated BIG as of March 31, 2020 and December 31, 2019, respectively.