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Contracts Accounted for as Insurance (Tables)
 9 Months Ended
Sep. 30, 2024
Insurance [Abstract]  
Net Earned Premiums
Net Earned Premiums
 Third QuarterNine Months
 2024202320242023
 (in millions)
Financial guaranty insurance:
Scheduled net earned premiums$73 $73 $216 $212 
Accelerations from refundings and terminations14 14 56 26 
Accretion of discount on net premiums receivable8 7 23 20 
Financial guaranty insurance net earned premiums95 94 295 258 
Specialty net earned premiums2 1 5 3 
  Net earned premiums$97 $95 $300 $261 
Gross Premium Receivable, Net of Commissions Payable on Assumed Business Roll Forward
Gross Premium Receivable,
Net of Commissions Payable on Assumed Business
Roll Forward 
 Nine Months
 20242023
 (in millions)
Beginning of year$1,468 $1,298 
Less: Specialty insurance premium receivable1 1 
Financial guaranty insurance premiums receivable1,467 1,297 
Gross written premiums on new business, net of commissions278 215 
Gross premiums received, net of commissions (267)(170)
Adjustments:
Changes in the expected term and debt service assumptions(28)4 
Accretion of discount, net of commissions on assumed business19 20 
Foreign exchange gain (loss) on remeasurement43 9 
Financial guaranty insurance premium receivable1,512 1,375 
Specialty insurance premium receivable1 1 
September 30,$1,513 $1,376 
Financial Guaranty Insurance
Expected Future Premium Collections and Earnings
 As of September 30, 2024
Future Premiums
to be Collected (1)		Future Net Premiums
to be Earned (2)
 (in millions)
2024 (October 1 - December 31)$50 $74 
2025151 281 
2026118 263 
2027113 247 
2028107 234 
2029-2033414 951 
2034-2038306 628 
2039-2043233 400 
After 2043437 543 
Total$1,929 3,621 
Future accretion415 
Total future net earned premiums$4,036 
____________________
(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, 2024December 31, 2023
 (dollars in millions)
Premiums receivable, net of commissions payable$1,512$1,467
Deferred premium revenue1,7951,768
Weighted-average risk-free rate used to discount premiums2.2%2.1%
Weighted-average period of premiums receivable (in years)12.512.5
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, 2024December 31, 2023
 (in millions)
Public finance:
U.S. public finance$(33)$119 
Non-U.S. public finance 1 1 
Public finance(32)120 
Structured finance:
U.S. RMBS(158)(87)
Other structured finance32 42 
Structured finance(126)(45)
Total$(158)$75 
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, 2024
 (in millions)
Net expected loss to be paid (recovered) - financial guaranty insurance $69 
Contra-paid, net 24 
Salvage and subrogation recoverable, net410 
Loss and LAE reserve - financial guaranty insurance contracts, net of reinsurance(251)
Net expected loss to be expensed (present value)$252 
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, 2024
 (in millions)
2024 (October 1 - December 31)$3 
202512 
202612 
202717 
202818 
2029-203390 
2034-203848 
2039-204313 
After 204339 
Net expected loss to be expensed (present value)252 
Future accretion(76)
Total expected future loss and LAE$176 
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.

Loss and LAE (Benefit) by Sector
  
 Third QuarterNine Months
Sector2024202320242023
(in millions)
Public finance:
U.S. public finance$(11)$134 $(12)$186 
Non-U.S. public finance— — — — 
Public finance(11)134 (12)186 
Structured finance:
U.S. RMBS$(39)$(35)$(42)$(31)
Other structured finance(1)1 — 4 
Structured finance(40)(34)(42)(27)
Loss and LAE (benefit)$(51)$100 $(54)$159 
BIG Net Par Outstanding and Number of Risks
Financial Guaranty Portfolio
BIG Net Par Outstanding and Number of Risks
As of September 30, 2024
 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$7,456 $29 $7,485 102 2 104 
BIG 21,546 4 1,550 12 1 13 
BIG 31,615 — 1,615 100 4 104 
Total BIG$10,617 $33 $10,650 214 7 221 
 Financial Guaranty Portfolio
BIG Net Par Outstanding and Number of Risks
As of December 31, 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$2,394 $16 $2,410 95 2 97 
BIG 2979 10 989 13 2 15 
BIG 32,010 28 2,038 109 7 116 
Total BIG$5,383 $54 $5,437 217 11 228 
_____________________
(1)    Includes FG VIEs.
(2)    A risk represents the aggregate of the financial guaranty policies that share the same revenue source for purposes of making debt service payments.
The Company guarantees payment of interest and principal when those amounts are scheduled to be paid and cannot be required to pay on an accelerated basis, although in certain circumstances it may elect to do so. In the event that obligors default on their obligations, the Company would only be required to pay the shortfall between the debt service due in any given period and the amount paid by the obligors.
Amortization Schedule of Puerto Rico
Net Par Outstanding and Net Debt Service Outstanding
As of September 30, 2024
Scheduled Net Par AmortizationScheduled Net Debt Service Amortization
(in millions)
2024 (October 1 - December 31)$— $3 
2025 (January 1 - March 31)— 18 
2025 (April 1 - June 30)— 2 
2025 (July 1 - September 30)84 102 
2025 (October 1 - December 31)— 2 
Subtotal 202584 124 
2026140 177 
2027120 151 
202881 106 
2029-2033197 282 
2034-2038132 170 
2039-204197 106 
Total$851 $1,119 
The following tables provide information on financial guaranty insurance contracts categorized as BIG.

Financial Guaranty Insurance
BIG Transaction Loss Summary
As of September 30, 2024  
 GrossNet Total BIG
 BIG 1BIG 2BIG 3Total BIG
(dollars in millions)
Number of risks (1)102 12 100 214 214 
Remaining weighted-average period (in years)19.312.77.117.017.0
Outstanding exposure:    
Par$7,463 $1,546 $1,622 $10,631 $10,617 
Interest7,131 1,214 598 8,943 8,940 
Total (2)$14,594 $2,760 $2,220 $19,574 $19,557 
Expected cash outflows (inflows) $4,056 $379 $1,320 $5,755 $5,746 
Potential recoveries (3)(4,272)(346)(1,145)(5,763)(5,753)
Subtotal(216)33 175 (8)(7)
Discount39 51 (14)76 76 
Expected losses to be paid (recovered)$(177)$84 $161 $68 $69 
Deferred premium revenue$199 $97 $121 $417 $417 
Reserves (salvage)$(256)$28 $68 $(160)$(159)
 
Financial Guaranty Insurance
BIG Transaction Loss Summary
As of December 31, 2023 
 GrossNet Total BIG
 BIG 1BIG 2BIG 3Total BIG
(dollars in millions)
Number of risks (1)95 13 109 217 217 
Remaining weighted-average period (in years)9.615.97.59.910.0
Outstanding exposure: 
Par$2,400 $979 $2,019 $5,398 $5,383 
Interest1,126 896 818 2,840 2,836 
Total (2)$3,526 $1,875 $2,837 $8,238 $8,219 
Expected cash outflows (inflows) $176 $187 $1,585 $1,948 $1,938 
Potential recoveries (3)(376)(78)(1,214)(1,668)(1,659)
Subtotal(200)109 371 280 279 
Discount56 (22)(53)(19)(19)
Expected losses to be paid (recovered)$(144)$87 $318 $261 $260 
Deferred premium revenue$100 $63 $142 $305 $305 
Reserves (salvage)$(181)$45 $209 $73 $72 
____________________
(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.