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Contracts Accounted for as Insurance (Tables)
 9 Months Ended
Sep. 30, 2023
Insurance [Abstract]  
Net Earned Premiums
Net Earned Premiums
 Third QuarterNine Months
 2023202220232022
 (in millions)
Financial guaranty insurance:
Scheduled net earned premiums$73 $70 $212 $219 
Accelerations from refundings and terminations (1)14 12 26 145 
Accretion of discount on net premiums receivable7 6 20 18 
Financial guaranty insurance net earned premiums94 88 258 382 
Specialty net earned premiums1 1 3 3 
  Net earned premiums$95 $89 $261 $385 
____________________
(1)    Nine months 2022 accelerations included $104 million related to PRCCDA, PRIFA and GO/PBA exposures. See Note 3, Outstanding Exposure.
Gross Premium Receivable, Net of Commissions on Assumed Business Roll Forward
Gross Premium Receivable,
Net of Commissions Payable on Assumed Business
Roll Forward 
 Nine Months
 20232022
 (in millions)
Beginning of year$1,298 $1,372 
Less: Specialty insurance premium receivable1 1 
Financial guaranty insurance premiums receivable1,297 1,371 
Gross written premiums on new business, net of commissions215 232 
Gross premiums received, net of commissions (170)(258)
Adjustments:
Changes in the expected term and debt service assumptions4 (5)
Accretion of discount, net of commissions on assumed business20 18 
Foreign exchange gain (loss) on remeasurement9 (181)
Financial guaranty insurance premium receivable1,375 1,177 
Specialty insurance premium receivable1 1 
September 30,$1,376 $1,178 
Financial Guaranty Insurance
Expected Future Premium Collections and Earnings
 As of September 30, 2023
Future Gross Premiums
to be Collected (1)		Future Net Premiums
to be Earned (2)
 (in millions)
2023 (October 1 - December 31)$45 $72 
2024134 277 
2025104 259 
2026100 243 
202797 230 
2028-2032402 958 
2033-2037264 635 
2038-2042182 390 
After 2042360 537 
Total$1,688 3,601 
Future accretion313 
Total future net earned premiums$3,914 
____________________
(1)    Net of assumed commissions payable.
(2)     Net of reinsurance.
Selected Information for Policies Paid in Installments
Selected Information for Financial Guaranty Insurance Policies with Premiums Paid in Installments
As of
 September 30, 2023December 31, 2022
 (dollars in millions)
Premiums receivable, net of commissions payable$1,375$1,297
Deferred premium revenue1,7021,663
Weighted-average risk-free rate used to discount premiums1.9%1.8%
Weighted-average period of premiums receivable (in years)12.212.9
Loss and LAE Reserve and Salvage and Subrogation Recoverable Net of Reinsurance Insurance Contracts The following tables provide information on net reserve (salvage), which includes loss and LAE reserves and salvage and subrogation recoverable, both net of reinsurance.
Net Reserve (Salvage) by Sector
As of
SectorSeptember 30, 2023December 31, 2022
 (in millions)
Public finance:
U.S. public finance$123 $71 
Non-U.S. public finance 1 1 
Public finance124 72 
Structured finance:
U.S. RMBS(89)(77)
Other structured finance42 42 
Structured finance(47)(35)
Total$77 $37 
Reconciliation of Net Expected Loss to be Paid and Net Expected Loss to be Expensed Financial Guaranty Insurance Contracts
The table below provides a reconciliation of net expected loss to be paid (recovered) for financial guaranty insurance contracts to net expected loss to be expensed. Expected loss to be paid (recovered) for financial guaranty insurance contracts differs from expected loss to be expensed due to: (i) the contra-paid, which represents the claim payments made and recoveries received that have not yet been recognized in the statements of operations; (ii) salvage and subrogation recoverable for transactions that are in a net recovery position where the Company has not yet received recoveries on claims previously paid (and therefore recognized in income but not yet received); and (iii) loss reserves that have already been established (and therefore expensed but not yet paid).

Reconciliation of Net Expected Loss to be Paid (Recovered)
to Net Expected Loss to be Expensed
Financial Guaranty Insurance Contracts
As of September 30, 2023
 (in millions)
Net expected loss to be paid (recovered) - financial guaranty insurance $249 
Contra-paid, net 21 
Salvage and subrogation recoverable, net281 
Loss and LAE reserve - financial guaranty insurance contracts, net of reinsurance(355)
Net expected loss to be expensed (present value)$196 
Net Expected Loss to be Expensed Insurance Contracts The following table provides a schedule of the expected timing of net expected losses to be expensed. The amount and timing of actual loss and LAE may differ from the estimates shown below due to factors such as accelerations, commutations, changes in expected lives and updates to loss estimates. This table excludes amounts related to FG VIEs, which are eliminated in consolidation.
Net Expected Loss to be Expensed
Financial Guaranty Insurance Contracts 
 As of September 30, 2023
 (in millions)
2023 (October 1 - December 31)$2 
202413 
202512 
202615 
202716 
2028-203263 
2033-203749 
2038-204213 
After 204213 
Net expected loss to be expensed196 
Future accretion39 
Total expected future loss and LAE$235 
Loss and LAE Reported on the Consolidated Statements of Operations
The following table presents the loss and LAE (benefit) reported in the condensed consolidated statements of operations by sector for insurance contracts. Amounts presented are net of reinsurance.

Loss and LAE (Benefit) by Sector
  
 Third QuarterNine Months
Sector2023202220232022
(in millions)
Public finance:
U.S. public finance$134 $1 $186 $67 
Non-U.S. public finance— — — — 
Public finance134 1 186 67 
Structured finance:
U.S. RMBS(35)(78)$(31)$(97)
Other structured finance1 2 4 1 
Structured finance(34)(76)(27)(96)
Loss and LAE (benefit)$100 $(75)$159 $(29)
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.