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Outstanding Exposure (Tables)
 9 Months Ended
Sep. 30, 2023
Outstanding Exposure Disclosure [Abstract]  
Debt Service Outstanding
Financial Guaranty Portfolio
Debt Service and Par Outstanding
As of September 30, 2023 As of December 31, 2022
  GrossNet GrossNet
 (in millions)
Debt Service
Public finance$372,908 $372,711 $359,899 $359,703 
Structured finance11,290 11,265 10,273 10,248 
Total financial guaranty$384,198 $383,976 $370,172 $369,951 
Par Outstanding
Public finance$231,871 $231,721 $224,254 $224,099 
Structured finance10,138 10,112 9,184 9,159 
Total financial guaranty$242,009 $241,833 $233,438 $233,258 
Financial Guaranty Portfolio by Internal Rating
Financial Guaranty Portfolio by Internal Rating
As of September 30, 2023

 Public Finance
U.S.		Public Finance
Non-U.S.		Structured Finance
U.S		Structured Finance
Non-U.S		Total
Rating
Category		Net Par
Outstanding		%Net Par
Outstanding		%Net Par
Outstanding		%Net Par
Outstanding		%Net Par
Outstanding		%
 (dollars in millions)
AAA$212 0.1 %$2,004 4.4 %$860 9.6 %$457 40.2 %$3,533 1.5 %
AA16,994 9.1 3,298 7.2 4,545 50.7 12 1.0 24,849 10.3 
A101,243 54.5 10,545 23.1 1,932 21.5 568 50.0 114,288 47.2 
BBB64,220 34.5 29,083 63.5 586 6.5 100 8.8 93,989 38.9 
BIG3,304 1.8 818 1.8 1,052 11.7 — — 5,174 2.1 
Total net par outstanding$185,973 100.0 %$45,748 100.0 %$8,975 100.0 %$1,137 100.0 %$241,833 100.0 %

Financial Guaranty Portfolio by Internal Rating
As of December 31, 2022 

 Public Finance
U.S.		Public Finance
Non-U.S.		Structured Finance
U.S		Structured Finance
Non-U.S		Total
Rating
Category		Net Par
Outstanding		%Net Par
Outstanding		%Net Par
Outstanding		%Net Par
Outstanding		%Net Par
Outstanding		%
 (dollars in millions)
AAA$222 0.1 %$1,967 4.4 %$926 11.2 %$469 50.4 %$3,584 1.5 %
AA16,241 9.1 3,497 7.9 4,633 56.3 12 1.3 24,383 10.5 
A96,807 53.9 9,271 20.9 1,075 13.1 340 36.5 107,493 46.1 
BBB62,570 34.8 28,747 64.6 479 5.8 110 11.8 91,906 39.4 
BIG3,796 2.1 981 2.2 1,115 13.6 — — 5,892 2.5 
Total net par outstanding$179,636 100.0 %$44,463 100.0 %$8,228 100.0 %$931 100.0 %$233,258 100.0 %
Schedule of BIG Net Par Outstanding and Number of Risks
Financial Guaranty Portfolio
Components of BIG Net Par Outstanding
As of September 30, 2023

 BIG Net Par OutstandingNet Par
 BIG 1BIG 2BIG 3Total BIGOutstanding
   (in millions)  
Public finance:
U.S. public finance$1,290 $926 $1,088 $3,304 $185,973 
Non-U.S. public finance 818 — — 818 45,748 
Public finance2,108 926 1,088 4,122 231,721 
Structured finance:
U.S. RMBS23 36 897 956 1,817 
Other structured finance— 28 68 96 8,295 
Structured finance23 64 965 1,052 10,112 
Total$2,131 $990 $2,053 $5,174 $241,833 

Financial Guaranty Portfolio
Components of BIG Net Par Outstanding
As of December 31, 2022

 BIG Net Par OutstandingNet Par
 BIG 1BIG 2BIG 3Total BIGOutstanding
   (in millions)  
Public finance:
U.S. public finance$2,364 $108 $1,324 $3,796 $179,636 
Non-U.S. public finance 981 — — 981 44,463 
Public finance3,345 108 1,324 4,777 224,099 
Structured finance:
U.S. RMBS18 39 953 1,010 1,956 
Other structured finance— 34 71 105 7,203 
Structured finance18 73 1,024 1,115 9,159 
Total$3,363 $181 $2,348 $5,892 $233,258 
BIG Net Par Outstanding and Number of Risks
Financial Guaranty Portfolio
BIG Net Par Outstanding and Number of Risks
As of September 30, 2023

 Net Par Outstanding
Number of Risks (2)
DescriptionFinancial
Guaranty
Insurance (1)		Credit
Derivatives		TotalFinancial
Guaranty
Insurance (1)		Credit
Derivatives		Total
 (dollars in millions)
BIG 1$2,115 $16 $2,131 102 2 104 
BIG 2980 10 990 13 2 15 
BIG 32,024 29 2,053 109 7 116 
Total BIG$5,119 $55 $5,174 224 11 235 
 Financial Guaranty Portfolio
BIG Net Par Outstanding and Number of Risks
As of December 31, 2022

 Net Par Outstanding
Number of Risks (2)
DescriptionFinancial
Guaranty
Insurance (1)		Credit
Derivatives		TotalFinancial
Guaranty
Insurance (1)		Credit
Derivatives		Total
 (dollars in millions)
BIG 1$3,357 $6 $3,363 122 1 123 
BIG 2171 10 181 14 2 16 
BIG 32,307 41 2,348 111 10 121 
Total BIG$5,835 $57 $5,892 247 13 260 
_____________________
(1)    Includes FG VIEs.
(2)    A risk represents the aggregate of the financial guaranty policies that share the same revenue source for purposes of making debt service payments.
The following table shows the scheduled amortization of the insured general obligation bonds of Puerto Rico and various obligations of its related authorities and public corporations. The Company guarantees payment of interest and principal when those amounts are scheduled to be paid and cannot be required to pay on an accelerated basis, although in certain circumstances it may elect to do so. In the event that obligors default on their obligations, the Company would only be required to pay the shortfall between the debt service due in any given period and the amount paid by the obligors.
Amortization Schedule of Puerto Rico
Net Par Outstanding and Net Debt Service Outstanding
As of September 30, 2023
Scheduled Net Par AmortizationScheduled Net Debt Service Amortization
(in millions)
2023 (October 1 - December 31)$— $3 
2024 (January 1 - March 31)— 24 
2024 (April 1 - June 30)— 3 
2024 (July 1 - September 30)110 134 
2024 (October 1 - December 31)— 3 
Subtotal 2024110 164 
202584 132 
2026140 185 
2027120 158 
2028-2032293 427 
2033-2037235 302 
2038-2041123 140 
Total$1,105 $1,511 
The following tables provide information on financial guaranty insurance contracts categorized as BIG.

Financial Guaranty Insurance
BIG Transaction Loss Summary
As of September 30, 2023  
 GrossNet Total BIG
 BIG 1BIG 2BIG 3Total BIG
(dollars in millions)
Number of risks (1)102 13 109 224 224 
Remaining weighted-average period (in years)9.816.17.710.210.2
Outstanding exposure:    
Par$2,121 $980 $2,033 $5,134 $5,119 
Interest1,125 922 824 2,871 2,867 
Total (2)$3,246 $1,902 $2,857 $8,005 $7,986 
Expected cash outflows (inflows) $113 $180 $1,621 $1,914 $1,903 
Potential recoveries (3)(324)(78)(1,223)(1,625)(1,615)
Subtotal(211)102 398 289 288 
Discount60 (25)(74)(39)(39)
Expected losses to be paid (recovered)$(151)$77 $324 $250 $249 
Deferred premium revenue$96 $64 $146 $306 $306 
Reserves (salvage)$(178)$37 $215 $74 $74 
 
Financial Guaranty Insurance
BIG Transaction Loss Summary
As of December 31, 2022 
 GrossNet Total BIG
 BIG 1BIG 2BIG 3Total BIG
(dollars in millions)
Number of risks (1)122 14 111 247 247 
Remaining weighted-average period (in years)11.38.77.69.89.8
Outstanding exposure: 
Par$3,363 $171 $2,318 $5,852 $5,835 
Interest2,177 77 894 3,148 3,144 
Total (2)$5,540 $248 $3,212 $9,000 $8,979 
Expected cash outflows (inflows) $128 $121 $1,771 $2,020 $2,008 
Potential recoveries (3)(294)(79)(1,364)(1,737)(1,725)
Subtotal(166)42 407 283 283 
Discount35 (13)(104)(82)(82)
Expected losses to be paid (recovered)$(131)$29 $303 $201 $201 
Deferred premium revenue$170 $15 $160 $345 $345 
Reserves (salvage)$(174)$21 $186 $33 $33 
____________________
(1)    A risk represents the aggregate of the financial guaranty policies that share the same revenue source for purposes of making debt service payments.
(2)Includes amounts related to FG VIEs.
(3)Represents expected inflows from future payments by obligors pursuant to restructuring agreements, settlements, excess spread on any underlying collateral and other estimated recoveries. Potential recoveries also include recoveries on certain investment grade credits, related mainly to exposures that were previously BIG and for which claims have been paid in the past.
Gross Par and Gross Debt Service Outstanding
All Puerto Rico exposures are internally rated BIG. The following tables show the Company’s insured exposure to general obligation bonds of Puerto Rico and various obligations of its related authorities and public corporations.

Puerto Rico
Gross Par and Gross Debt Service Outstanding
Gross Par OutstandingGross Debt Service Outstanding
As ofAs of
 September 30, 2023December 31, 2022September 30, 2023December 31, 2022
 (in millions)
Exposure to Puerto Rico$1,121 $1,378 $1,529 $1,899 
Schedule of Geographic Exposure of Net Par Outstanding
Puerto Rico
Net Par Outstanding

As of
September 30, 2023December 31, 2022
 (in millions)
Defaulted Puerto Rico Exposures
PREPA$624 $720 
Total Defaulted624 720 
Resolved Puerto Rico Exposures
PRHTA (Transportation revenue) (1)244 298 
PRHTA (Highway revenue) (1)128 182 
Commonwealth of Puerto Rico - GO (1)
— 25 
PBA (1)— 4 
Total Resolved372 509 
Other Puerto Rico Exposures
MFA (2)108 131 
PRASA and U of PR (2)1 1 
Total Other 109 132 
Total net exposure to Puerto Rico$1,105 $1,361 
____________________
(1)    Resolved pursuant to the 2022 Puerto Rico Resolutions.
(2)    All debt service on these insured exposures have been paid to date without any insurance claim being made on the Company.
Schedule of Non-Financial Guaranty Exposure
Specialty Business

As of September 30, 2023 As of December 31, 2022
Gross ExposureNet ExposureGross ExposureNet Exposure
(in millions)
Life insurance transactions (1)
$1,325 $1,003 $1,314 $986 
Aircraft residual value insurance policies
355 200 355 200 
Other guaranties2,090 2,090 228 228 
____________________
(1)    The life insurance transactions net exposure is projected to reach $1.1 billion in 2024.